Small Business Growth and Expansion Strategies

This assignment delves into various aspects of small business growth and expansion. It covers case studies on open-source ERP implementation (Olson & Staley, 2012), barriers to small business growth in Canada (Gill & Biger, 2012), and public procurement as a support policy for small businesses (Loader, 2013). Additionally, it explores strategies for expanding businesses into new areas (Online, 2017) and provides a SWOT analysis template for assessing internal and external environments.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of Austin Fraser identifying its strengths and weaknesses.......................................1
1.2 Analysis of Austin Fraser using comparative measures of performance..............................3
TASK 2............................................................................................................................................4
2.1 Appropriate actions to overcome identified weaknesses in business of Austin Fraser.........4
2.2 Ways under which current performance could be maintained and strengthened..................5
2.3 New areas in which Austin Fraser could be expanded.........................................................6
TASK 3............................................................................................................................................7
3.1 Produce an assessment of existing business objectives and plans........................................7
3.2 Business plans to incorporate appropriate changes...............................................................7
3.3 Action plan to implement the changes..................................................................................8
TASK 4..........................................................................................................................................10
4.1 Affect of proposed changes on the business and its personnel...........................................10
4.2 Changes will be managed in Austin Fraser business..........................................................11
4.3 Improvements in performance of the business over a given timescale...............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Small business firm are those companies which are run solely and also owned privately.
The sales and revenue of these businesses are small. In small companies, there are small number
of staff members working and small firms are very limited in size. In small businesses are
includes restaurants, photographers, accountants, lawyers, guest houses, hair dressers etc. In
given scenario, micro and also small companies adding some value in order to rising the
community and economy of United Kingdom country. Austin Fraser is a small firm which
renders the consultancy as well as recruitment services (Burns, 2010). This firm gives its services
in the areas of life sciences, architecture, engineering, Information Technology etc. Under this
present report mentions about the strengths and weaknesses of Austin Fraser firm. To overcome
from the weaknesses, this firm takes some appropriate actions. In this given report also discuss
about the affect of proposed changes on its personnel and business.
TASK 1
1.1 Profile of Austin Fraser identifying its strengths and weaknesses
Austin Fraser is a small consultancy and also recruitment firm which provides the
technical talent to the business firm in United Kingdom country. This firm gives its consultancy
as well as recruitment services by identifying the needs of customers and the market in which
they operate their business. This firm was situated in 2007 and in this firm around 100 staff
members are working. It gives some services like life sciences, automation, technology, aviation
etc. This company always works on maintaining the good and also harmonious relationship with
the customers by giving them some effective opportunities (Bridge and O'Neill, 2012). It
provides its services to the unemployed as well as the employed people. The major aim of this
firm is to give the good quality services and also provide the effective and beneficial advise to
the business people. The staff members of this company deals with its clients in an effective
manner and also satisfy their needs and wants. The employers communicate with its clients in a
proper manner so that the customers will be loyal towards the firm. To making any kind of
changes and also increasing the business, Austin Fraser company uses the effective and advanced
technology, with the help of this firm can do its business related operations properly and
smoothly. It will helps in increasing the development and also productivity of firm. For
determining the efficiency and effectiveness of business, it is necessary for this company to
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conduct the research about SWOT (Strengths Weaknesses Opportunities and Threats) Analysis.
The SWT analysis of Austin Fraser given below as above:
Strengths
 It has a good brand image in the field of consultancy and recruitment services.
 For rising and increasing the effectiveness of business, it uses new technology.
 It gives the training services to its staff members in order to increasing their skills.
 It works of providing the job facilities to unemployed people of local community.
Weaknesses
 Only some people aware about this company services,
 Austin Fraser company gives its services only in some areas.
 It has not any good support system (Cowling, Li and Ledger, 2012).
 It does not take any interest in doping the market research.
Illustration 1: SWOT Analysis
(Source: SWOT Analysis, 2017)
Opportunities
 It has a big opportunity to increase its business.
 This firm can do the effective and good promotional activities.
Threats
 More strong competitors at market place.
 The government strategies and policies.
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1.2 Analysis of Austin Fraser using comparative measures of performance
Austin Fraser is a small firm and it deals in the consultancy along with the recruitment
services. This firm has an ability to became a market leader by working for the local community
people. At the market place there are more strong competitors of this firm. In context to this,
there are some of the effective ways from which Austin Fraser company can determine its
performance level (Curran and Storey, 2016). There are two main ways from which this
company can measure its performance level and these are Profit & loss statement and balance
sheet. Both are given below as above:
Profit and Loss Account Statement
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 400 480
Cost of Sales 340 360
Gross Profit 60 120
Overheads 40 60
Net. Profit 20 60
Balance Sheet of Austin Fraser
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 80 60
Stock 70 85
Debtors 55 70
Bank 0 1
Total 125 156
Current liabilities
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Creditors 9 12
Bank overdraft 0 2
Total 9 14
Current ratio = current asset / current liability
2016 2017
125000/9000= 13.8 times 156000/14000= 11.14 times
Interpretation- From the above given data, it has been interpreted that in 2016, net profit
of Austin Fraser firm is £20 and in the year 2017 is £60. In year 2016, fixed assets of this firm is
80 and 60 in 2017. With the help of balance sheet, it has been interpreted that the current ration
of 2017 year is 11.14 times and in the year 2016 is 13.8 times.
TASK 2
2.1 Appropriate actions to overcome identified weaknesses in business of Austin Fraser
It is very important for the Austin Fraser company is to get over from its weaknesses in
context to increase the business in global market (Fassin, Van Rossem and Buelens, 2011). It
provides its services with the help of internet. This firm gives the good attention to its customers
by providing the effective services. This firm adopt the new technology in order to overcome
from its weaknesses. It is necessary for company to try to get over from its all the weaknesses.
Other wise from this the productivity and sales of this firm will be goes down and it will not be
beneficial for firm. The major weakness of this firm is the advanced technology. It does not
focus on adopting the latest and advanced technology in order to increase the business of firm
and providing training to employees. This company has many strong competitors at market place
so in this context it is necessary for the manager of this company to give its more focus on
making its business good and also try to be a leading company in the field of consultancy and
recruitment. In context to get over from the weaknesses, some of the recommendation given
below:
Restricted growth and market share- It is important for the Austin Fraser company to
focus on increasing the business in to new areas or expand it. With the help of this firm can
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capture the market share and also increase its growth rate (Eid and El-Gohary, 2013). This firm
provides its services through online. From this more number of people take its services with out
going to its firm. It is very easy method. It helps in cost as well as time saving of customers.
Communication with customer is low- As Austin Fraser company sells its goods with
the help of online also. But in this present era, it is necessary for this business enterprise is to
communicate with the people by using the good and attractive promotional activities. From this
the more number of people will be aware from its services.
Strong competitors and dealing in more services- Austin Fraser has many strong
competitors at the market place. Its competitors provides the effective and some more services to
the consumers at large scale. So, in this context it is necessary for Austin Fraser firm to deal in
some other areas of recruitment and consultancy services.
2.2 Ways under which current performance could be maintained and strengthened
In this present time period, it is very important for Austin Fraser company is develop its
strategic position at the Market place in order to make improvement in its potential performance.
The employees of this company are very capable and they work properly in context to archiving
the organisational objectives and also targets in a given period of time. This firm works on
maintaining its strengths and also works on get over from its weaknesses. In order to making the
business strong and also increasing the growth rate, it is necessary for this business organisation
to compete with its competitors and to be a leading company in the consultancy field (A. Harris
and P. Patten, 2014). This firm gives the consultancy services by online from this the time and
cost of consumers will be save. In order to be successful in the competitive market, there is a
need to this firm is to develop its strength by searching the creative and also innovative ways.
For resolving any problems of customers, it provides the online services. There is a need to this
firm to doing the some of the attractive promotional activities. From this large number of people
will be attracted towards the firm and also from this the productivity of this company will be
enhanced. In context to it, there are some of the effective ways under which Austin Fraser
company can maintain its strengths:
Royalty of consumer stages- There is a requirement to the Austin Fraser firm to
determine royalty of the consumers towards the services which are giving by this company. In
context to develop and also maintain the strong and positive position in the mind of customers,
there is a need to this firm to take the feedback from consumers.
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Make strong team- In order to proving the good quality services, there is a need for the
manager of this company to develop the strong team of employees which can deal with their
customers properly and also satisfy their needs and wants (Al-Dajani and Marlow, 2010). If
employees of this company will be capable then they will provides the good and satisfactory
services to clients.
Maintain the superiority of services- Austin Fraser needs to develop and also maintain
quality of its services by which it can attract the more number of consumers.
There is a competitors related business strategy which allows a firm to provide the
effective and attractive services to its consumers as comparison to its competitors.
2.3 New areas in which Austin Fraser could be expanded
Austin Fraser is giving the recruitment and consultancy services to its clients. From
increasing the business in to the new areas, it is necessary to this firm to sustain at the market
place for long time period. In addition to expand the business, company should be find the proper
location or areas. With the help of this, profit level of this firm will be enhanced. Austin Fraser
company should be investigate various sources of funding like for an instance commercial
banking, venture capitalist etc. in context to increasing its capital. This company neglects the
negative and un beneficial facilities of credit management (Gill and Biger, 2012). Austin Fraser
business organisation analyse its developments and productivity in context to make the big
contacts, publicity written articles etc. It is necessary for this company is work according to the
mission and vision of firm. The main focus of Austin Fraser is to search the new clients. This
firm uses some of the effective techniques related to the marketing such as client referrals,
internet, email marketing, networking etc.
In order to expand the business, there are some of the opportunities available which are
given below:
Export marketing- It will be helpful in enhancing the development and also growth rate
of cited firm. There is a requirement for Austin Fraser company to expand its market and also
provides its services in some of the other countries.
Identification expansion areas- Under this, it is the responsibility of Austin Fraser
company to investigate its activities in various target locations. It is necessary that the target
location should be good which increases the market share.
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Research techniques- IN this modern era, this technique is an effective way to
developing an opportunity to business (Goss, 2015). This firm conducts its the research by using
the qualitative and quantitative techniques.
TASK 3
3.1 Produce an assessment of existing business objectives and plans
The size of Austin Fraser firm is small and it deals in the recruitment as well as
consultancy services to those persons who do not have any job and also to those people who are
employed and want some advice related to business. Before doing the any activities of business,
it is necessary for the management of this company to develop an effective business plan in order
to making the business operations successful (Gronum, Verreynne and Kastelle, 2012). Plan is
related to the future. If top management of this company make the effective plan then from this,
employees will do their work effectively and properly by following the plan. It is important that
the objectives of firm should be clearly set or defined. According to the decided objectives,
employers should be trying to formulate the strategies and policies. It will be helpful in achieving
the organisational objectives. Business plan is a basic framework or an ideas on which the staff
members or company should be work. For making the business related process successful, it is
necessary for this company to adopt latest and new technology and also can be introduce some
other areas of consultancy and recruitment services. It will helps in maximising the productivity
and growth rate of this business organisation. There are some goals of this business enterprise are
given below as above:
 The main motive of this company is to satisfying the needs of its consumers.
 This firm gives the safe and healthy working environment to its staff members so
that they can perform in a better way.
 The objective of this firm to maximise its profit level by rendering the job
opportunities to people.
 Manager of this company should be conduct the training session in order to
enhancing their skills and also abilities.
Rather than those, some other objectives on which Austin Fraser requires to work for
achieving the better results. This firm needs to some change in its services or business.
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3.2 Business plans to incorporate appropriate changes
It is very important or essential for this organisation to formulate an effective business
plan from which firm can achieve the organisational goals properly. In context to the business
plan, it is the duty of top management to prepare a plan effectively and from this company can
make improvement in its existing performance (Herbane, 2010). If the business plan will not be
effective, then from this company has to face some failures and will bot be retain at market place
for long time period. In the business plan includes those activities which company needs to
perform for achieving the common goals in particular period of time. In regards to this, it is
necessary for this business enterprise to prepare plans and also policies so that employees will
perform well and complete the tasks in given time period. There are some of the steps included
in business plan:
Executive summary- Austin Fraser is small size business firm and it provides
recruitment as well as the consultancy services in the areas of automation, Information
Technology, aviation, life sciences, engineering etc (Jones and Iredale, 010). It works on
increasing the profitability business by giving the job opportunities to the unemployed people in
local society.
Company description- In Austin Fraser company, there is around 100 staff members are
working. It gives the recruitment and consultancy both the services to people.
Market research- This company conducts the market research by using the effective
techniques and also strategies. With the help of research, it can know about its existing
competitors at market place, marketing strategies, about clients need etc.
Target market- The targets of this company are unemployed persons and also services
persons who needs the advice regarding business. To target the customers more effectively, this
firm segments its business in some other areas.
Sales & Marketing- For the purpose of aware people about the services of this firm, it is
necessary for company doing some of the attractive promotions with the help of sales promotion,
personal selling, banners, radio, television, newspapers etc.
Requests for funding- The manager of this company should be manage the money for
business activities by taking loan from banks.
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3.3 Action plan to implement the changes
For Austin Fraser company, it is difficult to develop an action plan by which the staff
members of company can achieve the organisational objectives in an effective and proper
manner. An action plan is very helpful in context to allocating the activities in a defined period
of time. It is necessary for firm to make the some effective changes by formulating the good
action plan (Loader, 2013). It is the duty of staff members to work on the given
recommendations to reach at higher level. In Austin Fraser firm there is a marketing department
which works on conducts a research programme to know about the effectiveness of firm and
making related strategies. This department also conducts a research on those factors which can
affect on the business environment. The action plan for the Austin Fraser company will be doing
in that manner the changes can be implemented.
Determine the diverse activities- The necessary changes which should be diversified
and helpful in cover some more areas to targeting the unemployed people who need the job.
Evaluate the advantages and also disadvantages of every fluctuation- At the time of
doing this, it will be very helpful for an organisation to increase its growth rate and also market
share (Olson and Staley, 2012). But on the other hand its main advantage is that it enhances the
workload of staff members and firm cost.
Set target which should be perform at necessary basis- It is the duty of manager to
develop a list of those tasks which are necessary for firm on the propriety basis. It is necessary
that employees should be assure about that activities completed on specific period of time.
Follow- Under it, it is a responsibility of manager to use effective tools and techniques by
which Austin Fraser enterprise can determine some variances and also rising its current
performance level in order to attain the development and growth rate.
Action plan for Austin Fraser in addition to accomplishing its aims and goals
Objectives Benefits Tasks Success
criteria
Time
Frame
Resources
To enhance
the customer
base through
17% by 2022
year.
To be a
leading
company in
competitive
market by
In order to
determining
the satisfaction
level of
consumers
Through
taking the
feedbacks
from
consumers on
Two
months.
For
implementing
ideas at
workplace,
taking help
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providing
good quality
services.
through
conducting the
different and
also effective
programmes.
the continuous
basis.
from an
expertise.
Provide
training to
employees.
It will be
helpful in
rising the
performance
level of
employees
and also
their
confidence
level.
For increasing
the skills of
staff members,
manager
should conduct
the training
session on
regular basis.
Rising
performance
level, defined
training
objectives.
Two
months.
Venue, time,
place etc.
TASK 4
4.1 Affect of proposed changes on the business and its personnel
If at the workplace, there will need to make any kind of changes, then in this case there
will be the small affect on the business it can be negative as well as positive. It is totally based on
firm that it deals with what kind of changes. But some of the times, company makes some
changes for betterment of company (Preuss, 2011). This firm makes the modifications of the two
types controllable and uncontrollable. Controllable changes are related to the internal factors and
the uncontrollable is related to the external factors. It is necessary for the employees to this firm
to do its business activities in an effective manner. There are some of the impacts which are
faced through Austin Fraser given below as above:
Enhancing workload- Any kind of changes at the workplace can enhance workload of
staff members and from this the misunderstanding will generate between staff members. In order
to control workload, it is essential for manager of this company to execute changes accordingly.
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Affect on financial condition- At the time of doing any kind of business related
activities, there will be the requirement of funds. So, in context to this it is the responsibility of
manager is to manage the funds for minimising the scarcity (Schaper and et. al., 2014). If budget
of company will be proper then in this case manager will implement the changes effectively at
workplace.
Morale- The implemented changes will enhance motivational level and also morale of
staff members. It will be helpful in increasing the goodwill and productivity of firm.
Proposed changes will affect on the capabilities of firm by providing the satisfactory
services to consumers. In order to deal with any kind of change, manager gives training to its
employees.
4.2 Changes will be managed in Austin Fraser business
In an organisation, many of staff members do not like the change at workplace, they like
to work in current business environment. But manager implement changes for the betterment of
firm. It context to this it is necessary for manager to agree the employees about the changes.
Mostly the small firms do not want to execute the new strategies at workplace because they
think that from any change the risk will be enhanced in business (Schaper and et. al., 2014). This
firm conducts a marketing research for know about the marketing strategies, competitors at
market place. It will be helpful in enhancing sales and development of firm. But Austin Fraser
tries to avoid some of the minor changes in order to high risk on firm. In context to increase the
changes, this company is not having the much money. Proposed change will provide benefit to
the organisation in increasing the business in various areas. At this present time period,
employees of Staff members and manager provides the effective consultancy and recruitment
services to people. In context to manage the change, it is necessary for manager to deal with its
staff members in an effective and efficient manner. It will be helpful in increasing the
development and profitability of business.
4.3 Improvements in performance of the business over a given timescale
From last three years, it saw that the sales of Austin Fraser company has enhanced and
from this the profitability of firm also be enhanced. In order to rising business, it is necessary to
evaluate the current trend at market place (Yallapragada and Bhuiyan, 2011). Before
implementing any kind of changes, it is necessary for firm to analyse its current performance. It
will be helpful in measuring the actual level of performance with standard.
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At the time of making some changes in an organisation, it is important for firm to use the
effective models and theories. From this the positive feedbacks will be come from consumers. If
in case consumers will give their positive reviews then from this they will be happy from the
business services. There are four main types of perspectives those are helpful for Austin Fraser
firm to measuring its performance level:
Customer perspective- The main focus of cited firm is to give those services to
customers which are meet with their needs. Company should try to provide better services to its
clients as comparison to its competitors.
Financial perspective- The figures and details related to the financial data are depend on
benchmarking as comparison to last year. The manager of this firm selects best and beneficial
strategies.
Growth and also learn- The Austin Fraser is having the innovation indignation and also
learning abilities in context to deal with regular improvement in the changing environment
(Loader, 2013). This kind of environment make because of the economic changes,changes in
rules and regulations and also strong competition market place.
Internal process of business- It is regarded as what kind of activities and also tasks are
performed by staff members in business process. It adds some values in performance level of
employees.
CONCLUSION
It has been concluded from the above given report that small business firms give their
contribution in increasing an economy of country. Under this given report studied about some of
the effective methods in order to overcome from its weaknesses in an effective and proper
manner. An impact of the proposed changes on the personnel and also business discussed under
this report. Austin Fraser company provides the good services for increasing the economy of
United Kingdom. In this report also studied about the action plan to implement the changes. For
incorporate the changes, the business plan incorporated.
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REFERENCES
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Online
3 Ways You Can Expand Your Business In to New Areas. 2017. [Online]. Available through:
<https://chiefexecutive.net/3-ways-can-expand-business-new-areas/>. [Accessed on 20th
November, 2017].
SWOT Analysis, 2017. [Online]. Available through:
<https://research-methodology.net/theory/strategy/swot-analysis/>. [Accessed on 20th
November, 2017].
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