Factors Influencing Small Business Success

This assignment examines the crucial factors contributing to the success of small businesses. It delves into various aspects such as the values and personal differences of owners, the role of networks in innovation and performance, the influence of personality traits on entrepreneurial ventures, and the impact of decision-making in ERP integration. The analysis draws upon academic research and insights from experts to shed light on the complex interplay of elements that shape small business outcomes.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a small business enterprise identifying its strengths and weaknesses...................1
1.2 Analysis of business using comparative measures................................................................2
TASK 2............................................................................................................................................4
2.1 Appropriate actions to overcome identified weakness..........................................................4
2.2 Ways in which existing performance could be strengthened................................................5
2.3 New areas in which business could be expanded..................................................................6
TASK 3............................................................................................................................................6
3.1 Assessment of existing business objectives and plans..........................................................6
3.2 Revise business plan to incorporate changes........................................................................7
3.3 Action plan to implement changes........................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of proposed changes on business its personnel.........................................................9
4.2 Management of changes........................................................................................................9
4.3 Improvements in business performance in a given timescale.............................................10
CONCLUSION..............................................................................................................................10

INTRODUCTION
Small business enterprises refers to low scale firms that are owned and managed
independently and generate small amount of revenue. These types of enterprises are responsible
for bringing innovation and competitiveness in the business world to ensure economic growth.
These can be in the form of sole proprietorship or in partnership in which less number of workers
work and generate small amount of revenues as compared to large organisations(Nga and
Shamuganathan, 2010). These enterprises play a big role in the economic development of a
country as this provides employment opportunities to local people which increases their standard
of living. These businesses carry out a research in order to identify the needs of people and then
undertake production process to make innovative products to make them satisfied. Led bury an
enterprise that offer food and beverage products to its customers is taken under this report for
study. Strengths and weakness of Led bury with its comparative analysis is detailed here.
Further, ways in which business can improve its business performance and all new areas where
company can expand its business activities are also covered. Along with this, management plan
for incorporate changes in business and effect of change on business activities and its personnel
is all included in this report.
TASK 1
1.1 Profile of a small business enterprise identifying its strengths and weaknesses
Led bury is known as one of the most popular dining brand in United Kingdom.
Restaurant offer good quality food products and services to its customers in order to get their
satisfaction. Different internal and external factors exists in business environment largely affect
the performance of business. Internal elements include quality of food products and supply
management and external factors include economical and political conditions exist in country.
Led bury focus to satisfy the needs of customers by offer them good quality food items and this
is one of the main strength of firm.
Chef Brett Graham is a influencing personality which add quality to the overall
experience of customers and focus to target particular audience. Basically Led bury holds a
position in top 10 restaurants which offer quick services to all its customers in an effective
manner (Jasra and et. al., 2012). This strength of firm provide a competitive advantage to it an
good interior of restaurant provide comfort to customers and encourage them to spend more
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time in restaurant and help them to enjoy their meal properly. Food presentation play a big role
and help in provide various advantages to restaurants. Along with strength every enterprise face
some kind of weakness due to conditions prevail in business environment. One of the major
weakness of Led bury restaurant is that its short menu and unnecessary delay in provide services
to customers and all this weakness the functioning of business enterprise (Al-Dajani and Marlow,
2010). Top management of enterprise is plan to expand business activities but due to lack of
financial resources firm is not able to offer variety of food products to its customers. Every
business enterprise has some strengths and weaknesses and it is essential to identify the same as
this helps or guides manager in taking future decisions for business. SWOT is one of the tools
which can be used by the managers of Led bury in order to identify its strengths, weaknesses,
opportunities and threats.
Strengths: Special qualities of an enterprise which differentiate it form its competitors is known
as strength of company. Main strengths of led bury can be understood by following points:
 Firm offer good quality food products and services to its customers. Firm rank in top ten restaurants as this provide quick services to its customers.
Weakness: Following are the main weakness of led bury:
 Lack of financial resources Delay in serve customers.
Opportunities:
 Firm can expand business activities in other areas. By invest in developing countries firm can increase the number of its profits.
Threats:
 Increase number of competitors.
 Involvement of government.
1.2 Analysis of business using comparative measures
Performance of led bury restaurant can be calculate by examine the quality of food
products and services it is offering to its customers. Led bury is getting number of benefits of
join the Chef Brett Graham. Performance of restaurant can be evaluated on the basis of its sales
(Lambert and Davidson, 2013). Different bases are there to measure the performance of business
such as market share, rate of return, customer satisfaction, profits, flexibility, employee
motivation, cost etc. All the above bases can be used by restaurant for evaluate its performance.
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In case of restaurant industry satisfaction of customers is one of the main element and
performance indicator as main objective of every restaurant is to offer quality food products and
services to its customers. In case of Led bury, its current location and quality of relation with
customers increase profits of business.
Calculation of financial profits can be used by enterprise to calculate its performance as
financial aspect of restaurant is very strong and led bury has build a positive image and quality of
its food products is also good. Profits of firm can be calculated on the sales generate and cost
occur during the financial year (Gorgievski, Ascalon and Stephan, 2011). Management of
restaurant is looking to explore the advantages of its brand image. Employee motivation and
flexibility is a good performance indicator. If employees are full motivated than they offer
quality services to its customers which provide competitive advantage to company. Knowledge
and skills of staff members help enterprise in improve its performance. By managing human
resources in an effective way and by applying their skills business operations effectiveness can
be increased.For identify the current business performance of Led Bury its profit and loss
account can be analysed.
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 250 300
Cost of Sales 200 200
Gross Profit 50 100
Overheads 30 50
Net. Profit 20 60
Balance Sheet
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 70 50
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Stock 50 90
Debtors 50 50
Bank 0 1
Total 100 141
Current liabilities
Creditors 8 14
Bank overdraft 2 6
Total 10 20
Current ratio = current asset / current liability
2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation: From the analysis it has been analysed that profit (Net) of Led bury in year 2016
was 20 which was increased and become 60 in 2017. Total assets of company in 2016 was 100
and 141 in 2017. current liabilities of company was 10 in 2016 and 20 in 2017.
TASK 2
2.1 Appropriate actions to overcome identified weakness
Above mentioned weakness are concerned situation for restaurant. There is a need for
organisation to overcome with these threats. Continuous changes in business environment is one
of the main weakness and it is very essential for Led bury restaurant to keep this on priority to
solve the problems and to handle the situations (Bellucci, Borisov and Zazzaro, 2010). In case of
a restaurant industry, a change is something which is essential and required by time as because
customers easily get bored with the same type of treatment and taste the restaurant is offering.
Main motive of every customers is to enjoy their free time by provide value in return they always
expect something new offerings and products. In that case it comes under the duty of manager to
identify the required changes implement the changes in restaurant through offer training to staff
members and by motivate them and other departments (Strategies to improve strategies, 2017).
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Staff members of restaurant should always try to establish connectivity and emotional bounding
between restaurant and them, one of the main advantage of this is that it help in get loyalty of
customers towards the restaurant.
Weakness of delay in services of led bury can be overcome by hire extra employees and
by available the inventory required in stores all the time as this well eliminate the problem of
shortage of materials and inventory required (Carraher and Paridon, 2015). Proper inventory
management should be built in restaurant. This will help in reduce time in serve food and
beverages to customers. Receiving the award is consistency is another commendation which is
very necessary to gain benefit of people's perception and to maintain a good and positive image
in restaurant sector (Blenker and et. al., 2012). This help in get competitive advantage to
restaurant. In order to remove the weakness of lack of financial resources led bury can take loan
from banks and financial institutions. In this way, firm can expand its business activities and can
make and offer variety of food products and services to its customers. Further, with the help of
this led bury can better satisfy the needs of its customers and can capture a larger market share.
2.2 Ways in which existing performance could be strengthened
Current performance of business can be maintained or strengths with the help of framing
effective strategies for retain the customers for long period. In case of hospitality or restaurant
industry the two most important basic strategy are creativity and innovation that needs to be
implemented to maintain the business performances and to increase the financial profits.
Restaurant needs to focus on its interior with the help of some innovative ideas and things large
number of customers can be attracted (Jones and Iredale, 2010). Interior and internal ambience of
Led bury needs to be improved on continuous basis to achieve customers satisfaction which is
one of thee key performance indicator and help in measuring the strength of business. All efforts
must be done by the restaurant to build a effective bounding and relationship with the clients and
this can be done by offering them serving complimentary food or beverages with the meal they
order or effective coupons and discounts must be offer to them (Tips for improving business,
2017.). Further, led bury can focus on business to business clients to build good relations with
them. Segment the market, focus on target customer help restaurant in getting different kind of
benefits. One is business to business market help organisation in gain competitive advantage and
increase number of profits. Different events can also take place in restaurant to solve clients
purpose.
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Different managerial aspect such as inventory management, seasonal time estimation,
human resource management etc. can be taken account by management. All these elements help
in maintain the business performance and provide other different advantages to organisation.
Relationship with other parties should be maintained by business as this help in strengths the
internal environment (Chittithaworn and et. al., 2011). Further to improve the satisfaction of
workers research can be conduct by managers of Led bury in order to find out the main features
which customers want during the time they stay in hotel. By provide all those services and
features Led bury can better satisfy the needs of its customers and at the same time can attract
more customers. All these are the main ways which can be used Led bury to maintain ans
strengthen the business performance.
2.3 New areas in which business could be expanded
In case of Led bury which work in restaurant industry, the firm should focus in this
industry and should do continue efforts to expand its business activities. As enterprise have
complete knowledge about this industry and it is more beneficial than go to or choose any other
business (Forsman and Temel, 2011). Led bury can enter into a food process industry and can set
a platform gain opportunity. Food processing industry has its direct impact on main dishes of
restaurant and this would be benefited to Led bury for get satisfaction of customers. Chef Bret
Graham can bring innovative and new idea for making the dish with the help of food processing
industry this would attract more customers to their restaurant. It is one of the related field with
current biliousness of restaurant.
With this the process of organisation would be more easy in research find new dishes and
food items that is easy to prepared. Firm this, the restaurant will be benefited form two areas one
is first one is restaurant would be able to reach large number of customers and the other one is
that now profits of firm will be generated from two areas (Rae, 2010). With this, the enterprise
would be able to take creative steps and would try to move towards new areas related with
current business. Further, Led bury can expand its business in restaurant with the help of tie ups
with hotel industry as visitors first go to accommodation facilities or in a restaurant and this will
increase the revenue of firm. All this new step will not be much complex activity for the
management of Led bury as operational efficiency of firm is very high. Further, managers of
restaurant can carry out a research to create new dishes in order to fulfil the requirement of its
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customers. Expansion in new areas not only help enterprise in better satisfy the needs of its
customers but also increase the number of its profits.
TASK 3
3.1 Assessment of existing business objectives and plans
In today's business environment it is very essential for all firms to have clear plans and
objectives otherwise firm can not achieve success. Led bury is a small business enterprise that is
execute its operations effectively because they drawn their business objectives and plans
effectively and all these are correctly implemented by internal management (Harris and Patten,
2014). Led bury focus more on the food habits of customers in order to expand its business
activities in market. They are trying to improve the service standards and do all efforts to reach
each and every customer. Led bury is trying to improve its short and medium term business
objectives to achieve a reasonable profit (Battisti and Perry, 2011). Advertising one of the most
popular method of advertising can be used by firm to attract large number of customers. Led
bury is trying to attract more number of customers by offer more discount and cash incentives
with additional benefits.
With the formulation of effective business plan led bury can increase the number of its
profits. With the help of this, managers of Led bury can know more about what are the main
threats which can effect the working of business. A well prepared business plan help in develop
better communication channel with customers, bankers and management. It decrease the chances
of business failure and help enterprise to progress towards its main objectives. One of the main
feature is that it minimise the legal issues (Gill and Biger, 2012). All plans and objectives are
prepared at initial stage so it give direction to business activities and help to achieve benefits.
With lot of advantages there are some demerits of process of business planning as this limit the
scope of thinking of a businessman. Business plan make him bound to follow that specific path
and this increase rigidity. Sometimes lot of time waste in planning as it take a long time to
implement the plan. This increase both cost and time of business operations and make it complex
for businessmen to focus on specific objectives.
3.2 Revise business plan to incorporate changes
Different plans and theories are there which can be used by Led bury to overcome the
weakness in changing business environment. It is very essential for business organisations to
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continuously monitor their business objectives and plan. Enterprises should always prepare
flexible plans for business.
 Substantial growth theory: This theory is known as one of the best theory used to
overcome business weaknesses (Fassin, Van Rossem and Buelens, 2011). Main feature
of this theory is that it guide business to expand its business activities. It help firm to
achieve control on forward and backward integration. It help in make sure that business
have more control in market and this also reduce the risk which create loss for business
enterprises. With the help of sustainable growth theory firm can achieve expertise in
market and at the same time can capture a large market share. By follow it in a right
manner enterprise can lock out its rivals. Horizontal and vertical integration include
under this which guide enterprise to achieve its end results. Vertical integration help
enterprise to achieve complete control over its production activities.
Different models are there which used by organisations to achieve success. For an
enterprise like Led bury who deals in business of restaurant are require to execute SWOT
analysis on timely basis (Altman, Sabato and Wilson, 2010). Conditions of market changing at
a fast speed so Led bury has to change the way of its working as per the situations exist in
market. With the help of SWOT firm can identify its strengths that provide number of
advantages to enterprise. This help in identify the weaknesses and improve the same and help in
identify the main opportunities and threats that can be faced by enterprise in future. Managers
can introduce required changes by collect information from different sources and can increase
the effectiveness of business plan.
3.3 Action plan to implement changes
Communication play a big role in all activities of an enterprise. It is very essential that
there must be better communication among different levels of enterprise to implement changes
and remove weakness. Management should try to link up with food magazines on international
level and should try to offer variety of food products to its customers (Schaper and et.al., 2014).
Enterprise should mention their main dishes in magazines and should develop the food blogs.
This method is little expensive but help in generate huge amount of profits for a particular time
period. Efforts must be done by Led bury to cover vegetarian and non vegetarian customers. It is
very essential that there must be effective communication among all parties. All efforts must be
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done by marketing department to attract more number of customers and make the new one as
well.
Theory of change management help in implement the change in an effective way. Model
of change given by Kurt Lewis's used by large number of enterprises. To introduce changes Led
bury should follow the three basic steps which are: unfreeze, change and freeze. In unfreeze
stage, organisations try to complete the old work with the help of new methods and process.
Required and correction action must be taken by enterprise to change the method of their
working (Gronum, Verreynne and Kastelle, 2012). Communication and time are the two main
elements which play a big role in implementation of change. Under the second one, in change
section, it must be evaluated by Led bury whether specific change is required for enterprise or
not, this will take the enterprise to higher standards. All efforts must be done by management to
understand the change and work as per new methods and process. Main focus of management
should be to implement the changes in enterprise. At the last stage of refreeze, enterprise should
adopt the changes and should follow the same to get its positive results. It is a lengthy process
but this provide fruitful results to company (Olson and Staley, 2012). Option of feedback must
be develop by firm as this help in remove the hurdles. Along with this enterprise must try to
develop reward system. It is very essential that all employees include in the process of change
must be well informed about the change and should get required support by leaders.
TASK 4
4.1 Impact of proposed changes on business its personnel
Change affect the activities of business but the impact of change can be positive or can be
negative on the growth of business. Impact of change largely depend on the planning and
execution phase. If the required changes are effectively implemented in Led bury then this
would help in increase brand image which increase productivity of restaurant and ensure its
growth in long run. With the help of increment in brand image enterprise can expand its business
activities in new areas and at the international level (Storey, 2016). This can prove a positive
impact on the activities of restaurant. This can be achieve with the help of effective formulation
of business strategy. This changes increase motivation in employees and increase their trust
toward firm. With the help of this cooperation, productivity of firm would be increased.
Negative impact of proposed changes would be waste of resources of firm such as
financial, time and human resource. All this not only affect the business activities but also affect
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the efficiency of management invested in different activities such as training to workers, acquire
new resources and many more. It is very essential that all changes must be effectively
implemented by management so that positive impact of change can be maximised. For this all
main elements include in the process of change must be consider by managers. This help in
achieve end goals and objectives in an effective way (Burns, 2010). Due to complex business
environment where number of changes take place at a fast speed it become more essential for
business to cope up with changes as this help in better satisfy the needs of customers.
4.2 Management of changes
Changes can be effectively managed in enterprise with the help of using communication
theory. It is very essential that communication must be aligned in different stages of enterprise
especially in the case of lower staff in order to increase their skills and improve the quality of
their work. Led bury should focus to manager its communication channels at all level of staff in
order to manage them in an effective manner. All formulated strategies must be properly assign
to staff members. Along with this training sessions for employees must be conduct by employers
so that ability of them can be improved (Blackburn, Hart and Wainwright, 2013). With the help
of improvement satisfaction of different customers can be increased. Program of training include
data related with the international dishes. With the help of this, same taste can be offered to
tourists. With the help of these Led bury can gain number of other benefits.
Further another theory which can be applied in restaurant is Kotter's change management,
Lewin's change model etc. These are the expertise method and affect the activities of business in
positive way (Malhotra and Temponi, 2010). Simple steps include in the model of Kotter's can
be used firm to create the environment of change. For example: Led bury is plan to expand
business activities by add variety of dishes this can be done with the help of follow simple eight
steps.
4.3 Improvements in business performance in a given timescale
Improvements in business performance can be measured with the help of various monitor
techniques. Enterprise needs to follow the techniques of monitoring. In case of Led bury
monitoring could be done with the help of benchmarking techniques. This technique is very
useful in performance of business with pre determined targets (Burns, 2010). Actual performance
of business are compared with standard performance for the purpose of monitoring. With the
help of this, management of enterprise can compare the actual results with the expected results
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and if there is any variation that enterprise can take the corrective action (Actions for improving
weakness, 2017.). Performance of employees can also verify with the help of benchmarking
technique. This techniques can be used by Led bury for monitoring the performance of workers
and chef.
Return on investment can use by the firm. Particular amount that Led bury invested in
different activities would be calculated on the profits it is generation during that particular time
(Blackburn, Hart and Wainwright, 2013). Improvements can be measured by Led Bury by
identify the increase in ratio of foreign customers.
CONCLUSION
From the above information it can be summarised that small business enterprise
contribute a lot in economic growth of a nation. These provide employment opportunities to
local people and help in increase their standards of living. A small business enterprise can
achieve its end results in an effective way with the formulation of business plans and objectives
as this guide manager during execution of business activities. An enterprise can identify its
strengths and weakness with the help of tool called SWOT analysis. Today change become a part
of business activities so it is very essential that change must be properly planned and
implemented by the managers of firm so that company can get maximum positive advantages
form that change. Different models of change are there which can be used by companies. For
maintain the current performance of business and to strengthen it different strategies can be used
by managers.
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