Business Plan Analysis and Development

This assignment tasks students with critically examining the components of a successful business plan. It includes an in-depth analysis of key elements, such as market research, competitive analysis, and financial projections. Students will explore a sample business plan, highlighting best practices and strategies for success. The assignment concludes by providing practical guidance and tips for developing a comprehensive and effective business plan.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Develop profile of small business and determination of its strengths & weaknesses...........3
1.2 Business analysis using comparative measures of performance...........................................4
TASK 2 ..........................................................................................................................................6
2.1 Recommendation to overcome from weaknesses.................................................................6
2.2 Ways of strengthening and maintaining existing performance.............................................7
2.3 Areas for business expansion................................................................................................7
TASK 3............................................................................................................................................8
3.1 Prepare a business plan with existing business objectives ...................................................8
3.2 Revision of a business plan.................................................................................................10
3.3 Develop an action plan .......................................................................................................11
TASK 4..........................................................................................................................................12
4.1 Impact of proposed changes on business and its personnel................................................12
4.2 Plan how the changes will be managed in business............................................................13
4.3 Monitor improvements in performance of business over a given timeline.........................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
In UK, small business enterprises plays a crucial role in growth and success of economic
condition of the country. There is rapidly increasing the number of SME's in developing nations;
it results improvement in GDP rate of the country. These small entities also liable to provide
employment opportunities to people which raised income level of people and eliminates poverty
within local communities. Due to their small nature, these businesses have capability to accept
changes and respond them in an effective manner (Altman, Sabato and Wilson, 2010). In 2008,
when UK was faced economic crises, SMEs were helpful in improving in the financial condition
of the country. British government also provide support for growth and development of these
organisations. Brooklands hotel is the chosen business organisation in this present assignment, it
is one of the famous hospitality industry in UK. The main focused of the company is to be
largest hotel in UK's target market. Apart from this, the report will be described strength and
weaknesses of small businesses. Readers will also come to know various ways in order to
overcome from weaknesses. Furthermore, it is fundamental for business owners to focus on
managing employees' performance for expanding functional areas. There will be prepared an
action plan for implementation of business changes in an effective manner.
TASK 1
1.1 Develop profile of small business and determination of its strengths & weaknesses
Profile of Brooklands hotel: It is one of the most popular hotel of United Kingdom. Its
primary goal is to seek the attention of large number of customers by administer them quality
food products. The company come up with noble and innovative ideas such as classy themes,
impressive dinning, delicious food, attractive interior, etc. drinking beverages and tasty food that
are offered by the firm are more demanded by the customers. The hotel is well known among the
local people of the place. Employees of Brooklands hotel are behaving well with their customers
and also tried to fulfil corporate social responsibility. Apart from this, the company offers
different types of beverages, drinks, cheese food items, deserts etc.
Name : Brooklands Hotel
Address : Brooklands Dr, Weybridge KT13 0SL, UK
Email : [e-mail]

Telephone number : [phone]
Opening hours : 10 AM TO 11PM
Website : http://www.brooklandshotelsurrey.com/
Average prices : 2000$Us per person
Food served : Italian, Spanish and chines
Open since : 1940
Type : All continental
For getting success in present competitive market, it is necessary for the owners of small
enterprises to find out the factors which will affect profit and future market position of the
business. This identification assist in accomplishment of goals and objectives of the firm in
target market.
Strengths and weaknesses of Brooklands hotel:
Strengths Weaknesses
High employment rate & low cost of
production.
Financial support by government and its
subsidies.
Attractive interior, separate living spaces, room
with terrace etc. attracts customers more.
Qualified and trained staff to serve people in
right and effective way.
Attractive background and music assists in
bring large number of customers.
Increasing input cost.
Technologies used by firm are not upgraded.
No market presence and unreliable cash flows.
Do not offer services timely.
Inexperienced marketing team due to which
firm is unable to identify needs and demand of
customers.
1.2 Business analysis using comparative measures of performance
Brooklands Hotels, as a small business enterprise, is not popular among the people of
outside country. Because of that reason, sales and profits of the organisation is highly affected.

Therefore, it is necessary for the managers of the company to execute various activities and
programmes in order to attract large number of customers and measure performance.
Profit & loss account of Brooklands Hotels and Zizzi restaurant for year ended 30th
March 2017 are as follows:
Particulars Brooklands Hotels (2017) £ Zizzi restaurant (2017) £
Sales 300 140
Cost of sales 170 75
Gross profit 110 70
Overheads 23 12
Net profit 105 65
Balance sheet of Brooklands Hotels and Zizzi restaurant for year ended 30th March, 2017
Year Brooklands Hotels
2017 (Value in £)
Zizzi Restaurant
2017 (value in £)
Fixed assets 42 32
Stock 11 13
Debtors 7 4
Bank 2 6
Total Assets 62 55
Creditors 42 30
Bank overdraft 20 25
Total Liabilities 62 55
Current ratio = current asset / current liability
Brooklands Hotels Zizzi Restaurant
Net profit margin = net profit/ net sales * 100 Net margin = 65 / 140 *100= 33.33

105 / 300 * 100= 35
Gross profit margin= gross profit/ net sales *
100
110/300*100 = 36.6
Gross margin = 70/140*100= 50
Quick ratio = current asset – stock/ current
liabilities
20-11/62 = 0.145 times
Quick ratio = 23-13/55 = 0.181 times
TASK 2
2.1 Recommendation to overcome from weaknesses
In the competitive world, there are various obstacles or barriers which can influence the
performance and growth of small business enterprise. Besides this, it also creates many problems
in the process of attainment of goals. Weaknesses of the firm highly influence the process of
decision making and reduce productivity of the company as well as its employees. So, it is
necessary for small business organisation to determine appropriate solutions so that the firm is
able to expand its business in market. Formulation and implementation of effective strategy
assist to overcome weaknesses and get rid of barriers. There are certain recommendations which
are as follows:
Sufficient capital: Strong financial position is like blood for life of an organisation. The
main reason behind the growth and prosperity of every business entity is its strong financial
position. It is required by the administrator of small business enterprise to determine different
ways by the help of which they can raise funds and maintain appropriate finance in the firm so
that all the operations run smoothly and effectively (Helms and Nixon, 2010 ). Besides this, the
owners of Brooklands Hotels should retain certain amount for marketing activities so that
company can promote its products and services efficiently and customers are aware about it.

Free flow of communication: It is the best method which help managers to overcome
weaknesses. For this, owner of the business should execute appropriate communication channel
at workplace so that employees can freely share their views and thoughts with management and
determine appropriate solutions for the problems that takes place in an organisation. Good
communication among staff members establish coordination and cooperation between them. It
also acts as a tool of motivation which assist in increasing the motivation level of employees so
that they can perform well.
Having clear objectives: Clearly defined objectives helps the firm in performing
effectively in competitive market. These objectives provides direction to the functions of
business. Brooklands Hotels have its own mission and vision by the help of which objectives of
the firm are determined and appropriate actions are taken ion order to attain these objectives.
Clear objectives provides competitive edge to the firm and helps in getting advantages from the
market place. By the assistance of clearly defined objectives, company can easily reach to its
targets.
2.2 Ways of strengthening and maintaining existing performance
For getting high benefits of competitive surroundings, it is necessary for small business
entity to maintain their present performance level. There are various ways through which
existing performance can be maintained and strengthened. These are as follows:
Administer training and development to workforce: In order to compete with the
competitors, firm need to provide training to employees so that their skills and knowledge can be
improved and they are able to perform well in effective and efficient manner. It assists in
increasing productivity as well as profitability of the firm. Skilled employees have the ability to
to produce new and innovative product by which company retain its customers for longer period
of time. Training program helps in maintaining healthy relationship between managers and
subordinates. Effective working of employees leads Brooklands Hotels towards growth and
success by attaining higher productivity and profitability (Herbane, 2010).
Develop high quality products and services: Production of quality products helps in
maintaining existing performance of business in competitive market. If an organisation
administer good quality food products to its consumers then, firm can easily strengthen and
maintain its performance. This will result in increasing productivity as well as profitability of the
firm. So, it is essential for Brooklands Hotels to offer value added products to its customers to

attract and retain them for long period of time. Besides this, firm should also emphasise on
creating healthy work environment for its employees so that they can perform well.
Emphasize on market research: It is necessary for the manager of the firm to focus on
market research so that market trends and needs & demands of customers can be identified. It
will assist Brooklands Hotel in satisfying the demands of customers and increase its sales and
revenues.
2.3 Areas for business expansion
Below are defined some areas in which business could expand itself:
Franchising: For increasing market growth and vitality, this tool is adopted by
organisations. Franchising is an agreement in which franchisor grant right to another party to sale
its trademark. Franchisee & franchisor are the main players of this business. Now a days, many
small firms collaborate with multinational organisations in order to sell its products. It helps to
get known by the customers.
Organic growth: It helps in strengthening the functions of business. If the firm will spend
its revenue in activities of quality improvement then it helps in providing high value to its
customers. Organic growth assists in maximising market share of the firm by improving
customer retention. Reinvestment of profits in promotional or marketing activities helps in
improving customer relationship (Malhotra and Temponi, 2010).
Strategic alliance: It is defined as a contract between 2 firms which are decided mutually
to share profits and resources of a specific project. It will help the businesses to grow their
market share then its competitors. The main aim of strategic alliance is to join two business
entities for the accomplishment of common purposes and goal.
TASK 3
3.1 Prepare a business plan with existing business objectives
A business plan is a written document which describes company's future. In other words,
it represents what and how firm will be achieved its goals and objectives. Along with this, a
business plan involves many tasks and activities which provides proper guidance to entrepreneur
to run a business organisation (Battisti and Perry, 2011). It is a visualise concept which persuade

others to join business. Along with this, a business plan is generated by Brooklands hotel which
would help it to identify market opportunities and then grab it in an effective manner.
(Source: How to Build a Successful Business Plan, 2015)
However, before creating a business plan managers of Brooklands Hotel needs to decide
certain goals and objectives which which they want to achieve from it, such as -
 Continuity in profits and sales revenue
 Growth in assets
 Enhancement in market leadership or market share
 Product innovation and development for achieving higher customer satisfaction
 Provide healthy and risk free working environment to employees to their well being.
Illustration 1: Business plan

There is described certain steps of business plan, such as -
 Idea generation – Firstly, managers are required to generate effective ideas or concepts.
Business ideas are the foremost step of planning process so that it should be effective and
innovative. Along with this, entrepreneurs always come up in market by having new
ideas that could add value in their products and services (Blackburn, Hart and
Wainwright, 2013). The idea of new product development helps a company in providing
it high competitive advantage. There are several sources of idea generation, such as-
market research, dealers, retailers, suppliers, employees, customers etc. For example- if
Brooklands hotel conduct a market research then business owners will easily knowns
needs and wants of customers as well as customers' strategies.
 Environmental scanning – Afterwards, they need to conduct an environmental analysis so
as to examine those factors which can affect idea generation stage. In this perspective,
entrepreneur can analyse internal and external aspects elements, such as- customers,
finance employees, organisational cultural, management, political, economic, social and
technical factors. For example- in order to start any working activity there is required
start-up expenses, running and fixed expenses. Whereas social factors refers to analyse
population pattern of given area.
 Feasibility analysis – The major aim of this analysis is to brief study in relation of every
element of business organisation and also determine its credibility. In other words,
managers should analyse that ideas should be practical or real and able to provide high
market growth to company (Bridge and O'Neill, 2012). Feasibility analysis can be done
through market, technical or operational analysis. In this manner, managers have to
prepare a different plans, such as marketing plan, production plan, financial plan,
organisational plan etc. which are enough capable to lead a business plan.
 Project report preparation – In this stage, a report is prepared which involves step by step
strategies which will used in starting and running a business. It is essential for managers
to set time-frame of all working activities for completion of all business operations before
time schedule.
 Evaluation, control and review – At last, managers have to evaluate the overall plan due
to ever changing nature of environment. They have to review strategies again and again
so as to stay lead in market competition.

3.2 Revision of a business plan
After preparing a business plan, it is must for management to revise it so as to make
necessary changes. It would assistive in making a plan more effective by adding certain values in
it. Along with this, if a company review its business plan it would grab future market
opportunities and become successful in a certain time period. Basically, revision is also required
when a firm want to implement certain changes in its working environment. Due to dynamic
nature of businesses, companies have to analyse their working activities more and more; it would
aids them to get high market share and profitability (Buck, 2011). Revision is done as the per
needs of time frame. An effective and well managed business plan is liable to achieve goals and
objective of small business entity by rendering it high growth and success at marketplace. Apart
from this, if managers revise their business plan, then it would help them in finding all issues and
troubles that could hamper market reputation of the company. Modifications in existing plans
and policies make them more compatible and sustainable.
However, it could also influence the decision making process in terms of regulation of
business strategies. Revision of a business plan also helps managers of Brooklands hotel to find
several areas in which they cam extend their organisation. Although, implementation of changes
in business plan helps corporate entity to accomplish its goals and objectives (Burns, 2010).
Therefore, it can be said that revision of overall procedure is very imperative function of
management; it also identifies firm's weaknesses so as to make necessary improvements. For
example – lack of experienced workforce is major weakness of Brooklands hotel; in this relation
company has to emphasis on providing training and development assistance to staff members.
Lack of financial resources is another weakness, for this managers have to find out several ways
where they can get funds, i.e. bank loans, ventures capitalists etc.
3.3 Develop an action plan
An action plan is prepared by every firm for regulation of business changes. It ensures
efficiency of goals and objectives that must achieve in a certain time period. In addition, action
plan seems a control measure that aids in evaluation of performance standards and core
competences of the company. It involves certain actions which must done of priority basis.
Below mentioned an action for Brooklands Hotel, such as-
Aims Actions Priority Benefits Material Time scale Responsib Monitorin

resources ilities g strategy
Improving
the quality
of
workforce
Provide
training
and
developme
nt
assistance
to
employees
or hire
new
employees
Very
important
Helps in
increasing
performan
ce level of
people
within
organisati
on; it
results
raised in
production
level.
Subjects
experts,
managers,
supervisor
s and
training
programm
ers.
1 month Human
resource
departmen
t
Analysing
performan
ce level of
employees
Achieving
higher
customer
satisfactio
n level
Conduct a
market
research
and focus
on
improving
the quality
of
products
Important Aids in
attaining
and
retaining
staff
members
for long
term
period.
Marketing
activities,
questionna
ire, online
survey,
face to
face
interaction
.
2 months Marketing
and
operationa
l
departmen
t
Taking
customers'
reviews
and
feedbacks.
Fulfilment
of social
responsibil
ities
Produce
eco-
friendly
products
and
generate
awareness
among
Important Increases
trusts and
beliefs of
society
towards
company
Analyse
social
issues and
problems
1 month General
manager
Market
analysis.

customers.
TASK 4
4.1 Impact of proposed changes on business and its personnel
Whenever there are changes in business activities , it will definitely have an impact on
the policies and strategies that are prevailing there. Impact can be positive and negative both.
The changes can also help the company in gaining competitive advantage by reducing its
competitors from the market. In Brooklands Hotel, all the functions that are provided there are
interconnected with each other. So, if any change will happen then it will have an impact on all
the activities of the business (Demil and Lecocq, 2010). Sometimes the changes are necessary
but sometimes it happens because of changes in the external environment.
Impact on business are:-
 Good financial planning will help the Hotel in achieving their goals and objectives and
success as well. It also help them in generating more revenue in the market which is good
for their business.
 The organisation is required to determine their recruitment needs also so that the job
description and specification will be prepared by the HR manager on time .
 The company should also give additional services like gifts , loyalty cards, various modes
of payment also. All these activities will help them in improving the daily business of the
Hotel .
Impact on Personnel:
 The employees are required to change their method of working and try to use the new
strategies that are implemented by the company. It can be in any form like implementing
new techniques will also help the company in increasing the profitability.
 The changes that has been implemented in the hotel will induce the customer to come and
visit the hotel once. It will help in increasing the business (Fassin, Van Rossem and
Buelens, 2011).
 For successful implementation of changes, the company will organise a training program
for their staff members where they will be trained about the new things that will be
implemented in the hotel.

4.2 Plan how the changes will be managed in business
There are different type of business structural changes are managed when an small scale
organisation extend its level. Below are some major changes which are managed in small
business entrepreneur
Capital structural changes : capital or assets of organisation remain divided in multiple
sections and divisions. There is huge requirement of capital and investment when a small
enterprises upgrade their structure to next level (Burrows, 2015). Equities, shares, reserves,
premiums are the parts of cpital structure of an organisation.
Management and operations : It is natural that management and operations also get
affected by chaining the structure of organisation. There are different type of management levels
are formed to manage and guide the functional departments and people in organisation. By
placing managers, experts and specialist in management and operational departments the changes
are managed in organisation.
Changes regarding policies and rules : Government policies and guidelines are the
major factors which impact the scope and field of business structure. New business policies, tax
rates, legislations, labour act, ethics need to change in business structure of an organisation.
There are various legal and corporates agencies are made who provides advisors, legal
persons and experts to manage the changes in effective manner. They help in making plans and
policies according to policies and plans according to changes which are done by government.
Technical and advancement changes : New tactics and advancements are the main
factors which affect the process and functional system of organisation. Those industries which
are aligned in manufacturing and technical services get highly affected by implementing the new
techniques and methods in organisation.
By managing proper resources and information regarding technology and methods the
changes can be managed in organisation. There are different type of orientation and development
plans are also organised to understand the tactics and method of new technology.

4.3 Monitor improvements in performance of business over a given timeline
There are steps are made to manage and monitor the performance of business in various
sectors which are defined below
Step 1 – Build the case for change
There is a specific change management program should be made to analyse and measure
the performance of management and operation of organisation (Gronum, Verreynne and
Kastelle, 2012). It supply fundamental resources to implement the changes and control them in
effective manner.
Step 2 – Share the vision and values
values, mission and vision must be defined in respect of implemented changes in
organisation. Once the changes are established the next step get start which is executing the plans
and vision statement of organisation further. How things will be changed and how the changes
will take places are managed in this step.
Step 3 – Resources and informations
Proper resources and informations need to get from mangers and supporting teams. This
will help in managing the information and guidelines in systematic manner in organisation. This
help in managing and supporting the task force subject to attain the objectives and aims of
organisation.
Step 4 – Management and leadership capability
There must be team of managers and leaders assigned to operate the functions and
management of organisation in ethical manner (Eid and El-Gohary, 2013). They must understand
the crucial changes and find out the major areas where these changes will take place. By
provisioning training in respect of change management the operations management activities are
controlled in organisation.
Step 5 – Communication
It is important that flow of instructions and orders must be in smooth and flexible
manner. An effective communication system help in managing and controlling the flow of
continuous orders in defined manner. Manager remain main connectors which help in
communicating the task and projects at multiple levels.

These are the most relevant and adequate steps which help in managing the change in
organisation. These steps also provides a path to monitor the tasks and performance of
management in organised way subject to aims and objectives of organisation.
CONCLUSION
From the above mentioned report, it has been analysed that small businesses has a vital
role in economic development. As per the research, it is analysed that every years SMEs
contributes 30% in UK's economy. In terms of employment, small businesses provides job to
people every year 40 to 45%. Apart from this, the major strength of Brooklands hotel is it uses
information technologies for completion of working activities whereas lack of experienced
workforce is the main weaknesses of the company. Employers needs to provide training and
development assistance, regulation of open communication channels etc. are the ways through
which firm can easily get over from weaknesses. Management should use several performance
management tools for managing performance level. Beside this, strategic alliances, organic
growth and franchising are the certain ways through which any small business entity can expand
itself. In order to compete with external environment, there is developed a business plan; it also
helps in achieving firm's goals and objectives. There are different changes has put a huge impact
on business organisation, so that managers need to prepare an action plan and monitor
performance of corporate entity so as to get better outcomes.

REFERENCES
Books and Journals
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business. Palgrave Macmillan.
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Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic
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Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
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Online
How to Build a Successful Business Plan, 2015. [Online]. Available through:
<https://www.business2community.com/small-business/build-successful-business-
plan-01385150>.