Success Factors of Small Businesses

This assignment delves into the crucial elements that contribute to the success of small businesses (SMEs). It examines various factors, including innovation strategies, the role of networks in fostering growth, the impact of entrepreneur characteristics, and socio-cultural influences on entrepreneurial activity. The analysis draws upon academic research and publications focusing on SMEs in different contexts.

SMALL BUSINESS ENTERPRISE
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Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Profile of Hungry House............................................................................................................3
1.2 Comparative analysis of business performance.........................................................................4
TASK 2.................................................................................................................................................5
2.1 Actions to overcome weaknesses...............................................................................................5
2.2 Ways to maintain strengthen the performance...........................................................................6
2.3 In new areas making business expansion..................................................................................6
TASK 3.................................................................................................................................................7
3.1 Assessment of business objectives and plans............................................................................7
3.2 Business plans and areas of changes .........................................................................................8
3.3 Action plan for the implementation of change...........................................................................8
TASK 4.................................................................................................................................................9
4.1 Implication of the adopted changes...........................................................................................9
4.2 Plans for how changes will be managed in business ................................................................9
4.3 The improvement of the business performance of the organisation........................................10
CONCLUSION ..................................................................................................................................11
References..........................................................................................................................................12
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INTRODUCTION
Small business enterprise is known as according to its name, In these type of business there
are no more than 300 employees. In addition to this, small business enterprise has an opportunity to
increase their business on the basis of world wide and improve the growth rate at national and
international level as well. In favour of small business enterprise(SBE), Government set various
rules and regulations that are effectively applied by the SBE to increase their business at
international level(Altman, Sabato and Wilson, 2010). This report covers the business objectives
and strength and weakness or marketing theories applied by the small business enterprise like
Hungry House and Levi Roots. Furthermore, this report analyse the existing performance of the
enterprise and monitored the improvements and growth in selected organisations as well. These two
firms Hungry House and Levi Roots are the food ordering firms and serves best services to their
customers and to improve the growth rate they follows the Ansoff Matrix and marketing theory as
well. This report is mainly focuses on the strategies and management of the small business
enterprise or plan an effective strategy to improve the performance of SBE.
TASK 1
1.1 Profile of Hungry House
In the profile statement of Hungry House, it is stated in UK and serves their best services to
the people of UK as well as world wide.
Business name: Hungry house, London, UK
Mission statement: Hungry house has an effective mission" your hunger-our objective" and
provide best services to their customers.
Vision: The vision of this enterprise is to become leading food ordering firms and having a
good range of customers at national or international level.
Ownership structure: Hungry House is a UK based online food ordering firm and it is
owned by German company Delivery hero. In this structure it is more responsible for Hungry
House to serve best quality service foods and tasty food as well(Carraher and Paridon, 2015).
History and Background: In the background history of Hungry House, it can be launched
in year 2003 by Shane lake and Tony Charles. In year 2013, The statement is coming that Hungry
House is bought by German based food ordering company Delivery hero.
Operations of Hungry House: Main operations of hungry house is to provide best and
quality food to their customers and improve the growth rate of the business as well. It conducts
effective arrangements to attract more customers towards their services in the way of provide
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discounts on food, provide free home delivery services and more.
Strengths and weaknesses of Hungry House
Strengths
 Effective quality of food and services
 Dedicate and passionate employees team
 Top performer in the area of food services
 Good range of customers
 Low pricing and best quality of foods
 Specific type of ethnic food
Weaknesses
 Wait staff
 Improper training to employees
 Presenting technique of food and providing services
 Staying on a track to providing services and ordering as well
 Financial statements
 Management system
1.2 Comparative analysis of business performance
In this comparative analysis of Hungry House, the Levi Roots is the biggest competitor who
is mainly focuses on providing best quality food services to their customer and increase the growth
rate by leaps and bounds. So because of that it gives tough competition to Hungry House to gain
more profit and attract more customers. Evaluate comparative analysis and performance of both
SMEs. They both are mainly look for provide effective and quality services to their customers and
look for fulfil all desires of the customers.
Year Hungry House Levi roots
Turnover Net profit Net margin Turnover Net profit Net margin
2011 3600 300 8.33% 3100 360 11.61%
2012 5000 450 9.00% 4000 300 7.50%
2013 5500 400 7.27% 4700 610 12.98%
2014 6000 716 11.93% 5300 400 7.55%
2015 6500 900 13.85% 6000 765 12.75%
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Net profit margin is an effective approach to measure and analyse the profit and revenue difference
of the cost as well. In the year of 2011, Hungry House's net profit margin is 8.33% and increased by
the rate of 13.85% in year of 2015. However in the contrast of the Levi roots their net profit margin
is affected by the rate of 11.61% to 12.75%. Ineffective marketing and the competition will affect
the performance of the firm as well as their growth rate.
TASK 2
2.1 Actions to overcome weaknesses
There are several and effective actions applied to overcome the weaknesses of the Hungry
House. The firm offers several different type of foods and varieties to their customer and because of
that they increase more and more customer towards their firm. To overcome the several type of
weaknesses firm can apply following measures which are given below:
 Recognise the weakness: This is the main factor which affect the improvement and growth
rate of the firm yet firm should recognise the weakness that where they are lacking and what
are the problem faced by their customers. In a food industry there are several types of
weaknesses that affect the growth rate of the firm. This problem is arises when customer rate
is goes down and affect the business of the firm at that time firm should recognise the
weakness and improve that as soon as possible.
 Focus on positive: For improving the quality and taste of the food in Hungry House, it is
most important to stay positive and found the weaker area and improve that on immediate
basis. It is very important to say their employee is that they work in effective direction and
improve the quality rate of food and manage the work to provide best services to their
customers(Altman, Sabato and Wilson, 2010). Build confidence: Confidence is an effective tool to improve the weaker area of Hungry
House and their provided services as well. Building a confidence is an important part to
indirectly increase the growth rate of the firm and boost their business at international level.
Recommendation: In the recommendation process, Hungry House may apply the several strategy
that affect the working process and production rate of the firm and gives the boost to the growth rate
and production as well. They provide effective services like free home delivery, discounts on
products, discount on foods and more. Enterprise may know the pros and cons of the business that
directly affect the growth rate and production rate as well. It doesn't matter that what category of the
business like small and large, professional development is very important in any firm and is directly
affect the business rate. Customer value is most important for every firm, Hungry House should
know the requirements of customer and what are the quality of food they want from the firm.
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2.2 Ways to maintain strengthen the performance
There are several ways occupied by the enterprise to maintain and improve the business
growth of the organisation. For maintaining the strengths and performance there are several ways
imply by the firm and these are:
1. Develop techniques: New technique in the sense Hungry House may apply the strategies and
plan to improve the providing services. There are several strategies like maintaining the
quality and production rate or improve the services they provide to their customers. New
techniques states that recycling of the food in the way of applying effective ideas. A specific
food management is also affect the business growth rate in positive manner. Techniques
affect the customer's demand and needs and the performance of firm as well.
2. Focusing on customer: This is very important and effective process to achieve the success in
a firm. Customer's needs and demands are most important to achieve the success in a firm, it
includes focuses of the firm on the production rate and taste of the food. To improve the
performance of the small enterprise focusing on customer is more important to affect the
business and services.
3. Maintain productivity: This is a very effective approach to maintain the strengths and
performance of the firm. In addition to this, if productivity and quality of the food is
effective then automatically firm maintain their performance and strengths in compare with
the other enterprise as well.
2.3 In new areas making business expansion
In the present case scenario, Hungry House stated in London,UK but each and every small
enterprise want to become an effective international enterprise and spread their business on world
wide basis(Ratten, 2014). It is clear that this enterprise has large opportunity to expand the business
at international level and improve the growth rate as well. For expanding the business at
international level company firstly found the target market at where they set their business and
expand it at very great extent. Following new areas at where Hungry House expand the business: Expansion in new areas: The enterprise start their new business and expand it in the several
states of UK, like Scotland and Wales. These are well suited areas to expand the business of
Hungry House and increasing the profitability and growth rate as well. This expansion is
directly affect the business of the firm attract more customers towards their services as well.
This is very necessary to starts the business at different area and serve the best services their
so that they can increase the profitability and gain more interest in expansion(Altman,
Sabato and Wilson, 2010).
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 Ansoff matrix and marketing theory: Marketing theory is as according to its name, these
theories are used to improve the performance of the small enterprise as well as large
business. These theories indirectly helps to improve the performance of the firm and
increase their production rate as well. Ansoff matrix is a effective tool in strategic planning
of the small enterprise and it includes the manager and employees and co workers od the
team so that they can increase the performance of firm. This matrix states that firm will
increase the production rate by improving the quality of the product on the basis of
customer's demand and needs. This theory includes the strategies like market penetration,
marketing development, diversification, product development or more.
TASK 3
3.1 Assessment of business objectives and plans
Business objectives and plans directly affect the improvement or growth rate of the firm.
Business objectives and plan is the major factor that affect the business rate of the firm and it can be
define in the term SMART. It is the effective tool used for improving the set plans and goals of the
firm. SMART model states the goal setting of the enterprise which is given below: Specific: As the name implies, Small enterprise has the clear aim and be specific towards
their applied services and manage the demand rates of the customers. Because of that they
can increase their growth rate and supply best quality product to their customer.
Specification is used to attract the customer at national and international level as
well(Lambert and Davidson, 2013). Measurable: An effective plan which is set by the firm has an great impact on the demand
of the customer and their needs as well. Before setting an effective plan and objectives
which is related to the firm's processing and production rate, this directly affect the growth
rate of firm. When set the effective plan, it is most important to know the demands and
needs of the customers. Achievable: As according to its name, Firm has to set their target and long term goals in
attainable manner and also that should be effective and achievable as well. If the firm has an
goal which is effective and important to give the boost to the production rate that attract
more customers towards their quality services(Altman, Sabato and Wilson, 2010). Relevant: Business goal should be relevant and effective so that it can easily attainable and
give the boost to the growth rate and production rate. It has an impact on the group and
enhancement of the business of the firm and increase the large market share.
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 Time bound: In this process, firm has to be set their time bound so that they can work
according to the time limit and serve best product to their customers. In which they expand
their services in new areas of the state as well(Lambert and Davidson, 2013).
3.2 Business plans and areas of changes
In order to improving the provided services and production rate the effective strategies and
plans has play the crucial role to achieve the success and set target goals as well. However, the area
of changes are given below:
 Financial aspects: The stated small business enterprise needs to be focuses on the financial
condition at which they has to be found that what are the areas lacking because of the
financial crises. In order to expanding the business firm want to know the financial
conditions of the organisation and maintain the available resources as well. Hungry House is
basically operated in UK market trend but if they want to enter new international market
they required fund to manage the business ans sustain in that market as well. It is very
important to assist the firm to evaluate the financial resources and the areas where it needed.
 Marketing planning: Marketing planning is the effective approach to enhance the business
at national as well as international level. It is the effective process to attract more customers
towards their business and increase the growth rate as well. The stated firm is going to
expand their business in the various states of UK for which the firm needs marketing
planning and effective strategies as well.
 Human resource development: Human resource development is the effective process
which is used to improve the business of the firm in various ways. It is very important to
have skilled and developed human resource so that they can use their strategies and plan for
enhancing the business at international level(Jones and Iredale, 2010).
3.3 Action plan for the implementation of change Set objectives: In this effective procedure, it is very important to set the effective plan and
objectives to sustain in the current market of food industry and it has an impact on the
business rate as well. To change the quality services an effectiveness of the production rate
as well as the quality of the product(Lambert and Davidson, 2013). Prioritize: This is the effective procedure that affect the development of the firm in the form
of production and quality rate. This process is mainly assist the firm to process what is the
requirements and demands of the customers and make it for the priority to improve the
services and supplies as well. Benefit comparison: Here in this particular case, organisation needs to be evaluate the cost
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relation and the benefits of the firm so that they can formulate a strong system and then
objectives of the firm can be compared(Ratten, 2014).
 Time scale: This is the effective tool which is help the firm in measuring the impact of
changes done by the firm at particular set of time. This will give the boost to the firm that
what are the changes require to develop the strategies and improve the set planning as well.
TASK 4
4.1 Implication of the adopted changes
There are several changes adopted by the organisation and has an effective impact on the
performance of the firm and their services as well. In this process this affect the organisation in an
evaluated area where improvement can be needed. Following implications are given below:
Market share: The market sharing is the effective process which will be very effective and has the
great impact on the effectual manner. The main aim of the firm is expanding the business at
international level which is indirectly help to improve the market share strategies as well(Thornton,
Ribeiro-Soriano and Urbano, 2011).
Financial impact: The financial requirement has an impact on the performance of the firm and
directly affect the growth rate and production rate as well. In order to expanding the business firm
want to know the financial conditions of the organisation and maintain the available resources as
well. Hungry House is basically operated in UK market trend but if they want to enter new
international market they required fund to manage the business ans sustain in that market as well. It
is very important to assist the firm to evaluate the financial resources and the areas where it needed.
Risk increasing: In this effective plan, each and every organisation has the risk in their organisation
. It results in raising the profit earning capacity of the Hungry House in an effective manner. As a
result the organisation may grow in future with the help of fund and required money(Van Der Wijst,
2012).
Culture diversity: Culture diversity is the effective factor that directly affect the growth rate of the
organisation as well as their performance. At international level company has the several problem
that affect the performance and their capacity as well. The different nations has their different
culture and taste so that firm has to know their demand and needs and change the production, taste
and quality accordingly. This process is enhance the business of the firm at international level as
well(Ratten, 2014).
4.2 Plans for how changes will be managed in business
Changes are the biggest and common thing in each and every, small or large organisation as
well. This procedure has an impact on the firm either in positive or negative way as well. To
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overcome these type of negative impact, firm can apply the effective strategies and plan to
overcome the situation and reduce the negativity as well. To understand the change in the market
here we apply the Lewin's change management model. Which is given below:
 Unfreeze: This is the initial process in which change management is directly affect the
growth rate of the firm. Because of the some customer never satisfy their providing services
in that case they improve the strategies and plan to improve the performance of the work as
well.
 Change: Changes can be accepted by the management of the firm in which they move
towards the international market and improve their performance at there as well. At this
stage of the work consumers starts to accept the challenges and use the providing services as
well. This is the effective approach to work with the international market as well as the
national market(Van Der Wijst, D., 2012).
 Refreeze: This is the last step of this change management method and had an impact on the
performance of organisation and directly affect the growth rate of the firm. In this process
consumer of the international market accept the providing services of the firm and firm also
offer the several techniques to improve the performance. In this stage company able to make
the effective changes as well as imply the changes at their firm(Ratten, 2014).
4.3 The improvement of the business performance of the organisation
The Hungry House is effectively established in the several states of UK as well as the
international level market and that they change the performance and growth rate of the firm as well.
The performance of the firm is gradually increase as per the set of economy standard of the current
market trend at international level and also affect the marketing policies as well. There are mainly
three elements are taken in order to analyse performance, the elements are such number of
consumers, sales or revenue and net profit of the firm from accounting years.
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CONCLUSION
As per the above report, it is concluded that to start a new business set up at the international
level market and improving the performance level of the firm. There should be basic requirements
of applying effective marketing strategies and the plan to achieve the target goals of the firm as well
as the trust of the consumer towards their firm. This report is also helps to analyse the impact of that
strategies on the performance of the firm as well as the demands and needs of the consumer.
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REFERENCES
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Carraher, S.M. and Paridon, T.J., 2015. Entrepreneurship journal rankings across the
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enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
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enterprise-level analysis. International Journal of Innovation Management. 15(03). pp.641-
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Lambert, S.C. and Davidson, R.A., 2013. Applications of the business model in studies of enterprise
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Ratten, V., 2014. Future research directions for collective entrepreneurship in developing countries:
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Thornton, P.H., Ribeiro-Soriano, D. and Urbano, D., 2011. Socio-cultural factors and
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Van Der Wijst, D., 2012. Financial structure in small business: Theory, tests and applications (Vol.
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Online
Pavlovska, G., Small business enterprises.[Online]. Available through.
http://www.academia.edu/11219389/Small_Business_Enterprises_Unit_33. Accessed on[6th
April 2017]
Anisuzzaman, M., Small business enterprise.[Online]. Available
through.https://www.scribd.com/doc/284730601/Management-Small-Business-Enterprise-
Assignment-Sample. Accessed on [6th April 2017]
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