Improving Business Performance through Effective Change Management

This assignment focuses on the significance of effective change management in small business organisations. It discusses various change management theories such as Lewin's model and Kotler's model, which can be applied to manage changes in business operations. Additionally, it explores improvements in business performance over a specific time period using techniques like benchmarking and return on investment.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of a small business identify its strengths and weaknesses....................................1
1.2 Business analysis using comparative measures................................................................2
TASK 2............................................................................................................................................4
2.1 Recommendations to overcome identified weakness.......................................................4
2.2 Ways in which existing performance could be maintained and strengthened..................5
2.3 Areas in which business could be expanded....................................................................6
TASK 3............................................................................................................................................7
3.1 Existing business plans and objectives.............................................................................7
3.2 Revise business plan to incorporate changes....................................................................8
3.3 Action plan to implement changes...................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of changes on personnel and business operations..............................................10
4.2 Management of changes in business..............................................................................10
4.3 Improvements in business performance over a specific time period.............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
..............................................................................................................................................14

INTRODUCTION
Small business organisations known as those that are managed by an individual or small
group of individuals and are generate small amount of profits. One of the main feature of these
enterprises is that they do continuous efforts to offer better and innovative products to its
customers in order to fulfil their requirement (Harris and Patten, 2014). These firms can be in the
form of sole proprietorship or can be in partnership under which small number of employees
work and generate small number of profits. These enterprises contribute a lot in economic
growth of a nation by provide employment opportunities to local people. Led bury, which offer
different type of beverages and food products to its large number of individuals in taken in this
report for study. Comparative analysis of Led bury with its main strengths and weakness is all
given under this. Major steps and actions which firm can do to overcome with its weakness and
new areas in which organisation can expand its business activities is also mentioned in this.
Further, ways in which business performance of Led bury can be maintained is also detailed.
Along with this, impact of changes on its employees and business activities and the way in which
company can manage all changes is also described.
TASK 1
1.1 Profile of a small business identify its strengths and weaknesses
Led bury is a dining brand which is popular for the beverage and food items which it
serve to its customers. One of the main feature of its food products is that all are of high quality
which help in attract more number of customers every year. Number of components are there
which affect the firm's performance (Al-Dajani and Marlow, 2010). Internal factors which affect
the business performance and its revenues are quality of its food items and its supply
management. Further external components which affect its business performance are political
and economic condition of country. Main focus and aim of Led bury is to get satisfaction of
customers and for achieve the same firm offer them quality food products and this is come under
one of the major strength of enterprise.
Further, Chef Brett Graham which is a influencing personality add value to whole
business performance and in experience of customers. Led bury comes under top 10 restaurants
as this offer effective and quick services to its customers and this also come under its strength.
This provide benefit to company and along with this effective interior of restaurant encourage
customers to spend more there and enjoy their food properly. In order to attract more number of
1

individuals it is very essential or a restaurant to offer high quality food products to its customers
and along with this presentation of food also play a big role in this. Due to operate in a
competitive business environment every type of organisation whether big, medium or small face
some kind strengths and weakness (Altman, Sabato and Wilson, 2010). Major weakness of Led
bury is its short menu and delays in serve customers. All this largely affect the company's
performance and at the same time decrease number of its profits. Firm is planning to operate in
new areas and expand its activities but is not able to do the same due to lack of financial
resources. This is the man reason behind short menu of restaurant. It is very important for
manager of firm to have detailed information about main strengths, weakness, opportunities and
threats of firm. For this there is a tool called SWOT analysis which can be use by manager of
Led bury.
Strengths
 Company hold a position in top ten restaurants as this offer quick services to its
customers. Led bury is famous to offer good quality food products.
Weaknesses
 Lack of funds to expand business activities. Unnecessary delays in serve customers.
Opportunities:
 Restaurant can increase the food items which its serve to its customers as this will
increase the profits of company. Enterprise can starts its operation in developing countries as this will increase market
share.
Threats
 Large number of rivals.
 Participation of government in business activities.
1.2 Business analysis using comparative measures
Business performance of Led bury can be analyse by examine various factors such as the
quality of food products which its serve to its customers. Join of Chef Brett Graham offer various
benefits to restaurant (Battisti and Perry, 2011). Further, sales of restaurant can also examine in
order to analyse performance of business. Along with this major aspects and areas which can be
2

opt for evaluate business performance includes its market share, profits, customer satisfaction,
flexibility, skills of workers, cost, rate of return and many more. In case of hospitality sector,
satisfaction of customer play a big role and this directly increase profits of business. One of the
main feature of Led bury is its relations with customers is good which provide various benefits
to company. At the same time its location where it is situated is also good.
Calculations of company's revenues can be done by Led bury in order to get more about
financial position of enterprise. Profits of enterprise can be calculate the profits earn in a specific
year and the cost generate (Bellucci, Borisov and Zazzaro, 2010). Flexibility in business
operation and motivation of employees indicate a good performance. Capable employees ensure
effective execution of all business activities and at the same time help in serve customers
effectively. Management of workers and their action at workplace is very important to achieve
set goals and objectives. Led bury can analyse its profit and loss account in order to analyse its
current business performance.
Profit and loss account of Led bury
(30 April 2016 to 30 April 2017)
Basis 2016
£
2017
£
Sales 240 300
Cost of Sales 200 250
Gross Profit 40 50
Overheads 30 40
Net. Profit 10 10
Balance Sheet
(30 April 2016 and 30 April 2017)
Basis £ 2016 £ 2017
Fixed assets 70 50
3

Stock 50 90
Debtors 30 40
Bank 0 1
Total 80 131
Current liabilities
Creditors 7 15
Bank overdraft 3 7
Total 11 22
Current ratio = current asset / current liability
2016 2017
100000/8000= 12.5 times 140000/18000= 7.7 times
Interpretation: From the above given financial statements it can evaluate that net profit of
Led bury was 10 in 2016 and remain the same in 2017. assets of enterprise was 80 in 2016 which
was come to 131 in 2017. along with this, liability of firm also increase by 11 to 22.
TASK 2
2.1 Recommendations to overcome identified weakness
It is very important for Led bury to concern its weakness and do efforts to remove the
same so enterprise can achieve its set goals and objectives in effective manner. Increase
complexity of business operations largely affect the activities of business. In order to attract
more number of customers and to generate more number of profits as compare to its rivals, it is
very important for Led bury to introduce changes in its business process on continues basis
(Blackburn, Hart and Wainwright, 2013). In case of hospitality sector, customers get easily bore
with similar type of treatment, service and taste of food which restaurant offer them. Changes
must be introduce by Led bury in all these elements. Number of individuals come at restaurants
in order to enjoy their free timer with their friends and family members and for this they always
expect something unique and different. In this context, it comes under the responsibility of
4

management to think about this and offer something unique and different to its customers. Any
kind of change can not be implement by enterprise without support of its employees and it is
very essential for managers of Led bury to offer training to its employees so they can learn new
things and can serve customers in a unique and effective way. Workers should always try to
create a good relations with customers and try to form a emotional bounding with them. All this
encourage them to visit again and help enterprise in retain them for long period of time.
Delays in serve customers is a big weakness of Led bury and this can be remove by
increase its workforce. Further, it is very important for enterprise to make sure that all stock is
available to avoid shortage of materials require to make food products. For this, firm can use a
software related with inventory management (Blenker and et. al., 2012). All this will help in
reduce the waiting time of customers and will add value in their overall experience. Receiving
the award for its consistency help in form a good and positive image in mind of customers. This
increase sales and profits of company. Further, In order to expand its business operation or to
remove its weakness of shortage of funds enterprise can take loans from banks and other
financial institutions. In this way, enterprise can increase the food items serve to its customers
and can attract more number of customers.
2.2 Ways in which existing performance could be maintained and strengthened
Formulate a effective business strategy: In order to maintain its current business
performance it is very essential for Led bury to first formulate a better strategy for business.
Innovation and creativity are the two most effective strategy which can be implement by Led
bury to maintain and strength its business performance. Manager should focus to change interior
and add some new things in that so large number of customers can be attract (Bridge and O'Neill,
2012). It is very important that interior of restaurant should be change on continuous basis this
not only increase profits of enterprise but also results in customers satisfaction. Create an
maintain good relations with customers is very important in hospitality industry as this help firm
in maintain the number of its customers. For this, Led bury can serve complimentary food
products to its customers and can offer them discount. Segmentation can be done by firm as this
help in better satisfy the needs of its customers and at the same time increase profits of
company. Manager should encourage conduct programmes to identify and solve the problem of
clients.
5

Management of resources:Further, in order to improve its business performance various
aspects such as management of human resource, inventory management and seasonal time
estimation all should be consider by manager. All this help in serve customers in an effective
way and at the same time ensure optimum utilisation of resources (Burns, 2010). Company
should maintain good relations with all parties as this help in create a positive work environment.
Further, research can be carry out by managers in order to collect information about the changes
arise in needs of customers and to know about the factors which an individual want during
consume food in a restaurant. In this way company can serve its customer in an effective way
and at the same time can influence more number of individuals to come (Carraher and Paridon,
2015). Training must be given to staff members to help them to learn how to treat with different
type of customers. In addition to this, updated and new technology must be use by restaurant to
make food products for customers. In this way, business performance of Led bury van be
maintained and strengthened.
2.3 Areas in which business could be expanded
For capture a larger market share and to increase the number of its profits number of
areas are there in which Led bury can expand its operations. As this is a dinning brand and have
huge amount of information about this sector so enterprise can expand its operations in different
kind of area (Chittithaworn and et.al., 2011).
Management of resources:Expand in same industry: Restaurant can enter or start is operations
in food process industry as this sector directly affect the main dishes of restaurant so this will
help and provide an opportunity to Led bury offer quality food dishes to all its customers. Along
with this, Chef Brett Graham can search out new ideas for make new dishes and with help of
food processing industry restaurant can serve more number of customers.
All this will make the process of business more easy and will help restaurant in find out
new dishes and will also increase the menu of Led bury. This will increase the profits of
enterprise and help in serve more customers. All this will increase skills and abilities of
employees and at the same time make them able to serve all customers in an effective way
(Fassin, Van Rossem and Buelens, 2011). Further, Led bury can go for tie ups with various
hotels as large number of people such as travellers and visitors first search for accommodation
facilities and this will enhance the number of its profits. Expansion of business operation not
6

only increase profits of enterprise but at the same time help firm in better satisfy the needs of its
customers.
TASK 3
3.1 Existing business plans and objectives
It is important for all businesses to set their own goals and objectives in order to attain
strong position in competitive business world and such desired goals can only be achieved
through formulating effective plans and policies which directs all members of an organisation to
perform in effective and efficient manner (Forsman and Temel, 2011). Led Bury is a small
business enterprise which executes its business operation according to the plans and objectives
formulated by them. Internal management are held responsible to implement decided plans and
objectives in an effective and efficient manner. In order to expand the business Led bury need to
identify the taste and preferences of targeted customers and therefore need to contribute
maximum efforts to fulfil their requirements in such a way that maximises the level of
satisfaction of customers (Gorgievski, Ascalon and Stephan, 2011). For this company need to
use various techniques and methods in order to reach to each and every customers. Advertising is
such a method which help company to attract and influence buying behaviour in favour of
purchasing their product and services through offering discounts and additional cash benefits.
With this Led bury moving step ahead in achieving its short as well as long term desired
objectives.
Formulation of effective business plans helps company in eliminating threats which can
adversely affect the performance of business. Therefore manager of Led Bury should required to
pay attention on such harmful factors which restrict Led Bury to expand their business activities.
Managers of company are held responsible in developing predetermined plan and objectives
through performing various roles such as establishing effective communication channel with
customers and management (Gill and Biger, 2012). This will help company in achieving future
growth and success and attains competitive advantage. It is important for company to formulate
business plans and objectives at earlier phase so that they are able to provide guidance and
direction to the members of company towards achieving desired gaols and objectives in effective
and efficient manner. Therefore effective business plan plays an important role in improving the
performance of company but at the same time it has some disadvantages also. Business plan
restrict the thinking or ideas of businessman through which they cannot contribute more by using
7

their skills and knowledge. Business plan forces the members of company to perform according
to pre-decided plan which increases rigidity. Businessman formulate effective business plan after
analysing complex environment in order to achieve desired objectives which consumes more
time which also causes delay in implementation of such business plan which may affect the
business activities in negative manner.
3.2 Revise business plan to incorporate changes
As the business environment changes rapidly which can affect the business operations
therefore it is important for Led Bury company to use different plans and theories which helps
managing such flexible changes in business environment so that they can achieve desired
objective effectively.
Substantially growth theory: This theory is considered as best theory which is used to
overcome business weaknesses. This theory helps company to control forwards and backward
integration (Gronum, Verreynne and Kastelle, 2012). This will help in controlling and
monitoring the changes arises in market which helps in avoiding losses for business enterprise.
With the help of this theory firm can able to achieve large market share in competitive
environment. Through horizontal and vertical integration company can able to achieve desired
end results whereas vertical integration enable company to control over its production activities.
It is required for an organisation to use different model to achieve success. For example
company like Led Bury which is dealing in restaurant business need to adopt SWOT analysis on
regular basis which helps them in identifying their strengths and weaknesses and through SWOT
analysis the company can take corrective measures in order to convert their weaknesses and
opportunities into strengths which help them in gaining competitive advantage. As the market
environment changes rapidly so it is required for company to adopt the changes as per the
situations exist in market which help then in improving the performance of company (Jasra And
et. al., 2012). Manager need to gather required information from different sources in order to
make business plan more effective.
Performance indicators: It will help company in controlling and monitoring performance through
the process of observation. The main advantage of the observation is that it will show the true
picture of the performance level. The disadvantage is that due to lack of available time the
manager cannot able to judge the performance of employees individually. Thus it is required to
conduct performance appraisal.
8

3.3 Action plan to implement changes
It is essentially required for business to make corrective action plan in order to achieve
desired objectives. For this
 Company need to communicate with different level of departments relating to
implementing changes and eliminate weaknesses. Therefore in order to spread the
business all over the world company should focus on making contact with food
magazines which help in reaching company at international level (Jones and Iredale,
2010).
 Promoting business in magazine may be expensive for company but it will help in
generating huge amount of profits. Led Bury need to offer different variety of products to
both vegetarian and non-vegetarian customers which help them in building brand image
in market world. Therefore communicating and coordination with different department
such as marketing, production etc. help in achieving success and growth in future.
 Mostly companies uses Kurt Lewis's model of change which help them in introducing
and implementing changes more effectively.
 The company need to follow three three basic stages which help in introducing changes.
Such steps involves unfreeze, change and freeze.
 At unfreeze stage company focus on completing old work by using new methods and
changes whereas in second stage management of company focuses on implementing
changes according to the changes occurred in business environment (Lambert and
Davidson, 2013). In third stage of freezing, company should uses changed technology to
complete future business activities in order to get positive outcomes.
 The manager also need to create platform to their targeted customers where they are able
to collect feedback from customers relating to their food products and accordingly make
changes through which they can maximise the level of satisfaction. The company can
also need to introduce reward system through which they can motivate employees to
perform better (Malhotra and Temponi, 2010).
 For this the manager of company need to inform about changes to every members of an
organisation through which the employees can perform accordingly which directly helps
in enhancing productivity and profitability of business for long term.
9

TASK 4
4.1 Impact of changes on personnel and business operations
Whenever a change is arise or introduce then it affect the operations of business in either
positive or in negative way. For implement all changes in an effective way it is very important
that planning should be done by managers in an effective way. One of the main advantage of
execute changes in an effective way is that it help firm in achieve its end goals and objectives in
an effective way and at the same time increase positive image of company (Nga and
Shamuganathan, 2010). Positive brand image help firm in expand its operation in new areas and
increase number of its customers. This can be done by formulate a effective strategy for
business. Effective strategy ensure optimum utilisation of all resources and encourage workers to
perform well. It is very important that there must be proper and effective coordination among
various departments so maximum advantages of changes can be achieve by firm. Changes make
the workplace more creative and ensure development of various skills and abilities of employees.
Further, effective changes increase effectiveness of business activities and at the same time
enhance profits of company.
Negative impact of a change can be waste of time and resources of firm. For example,
manager take lot of time in order to plan and execute changes and at the same time invest various
funds and resources to execute the same (Olson and Staley, 2012). All this decrease the quality
of business operations and at the same time affect its profits in negative way. In order to avoid
the negative impact of change it is very important that planning of this must be done in an
effective way so positive result can be maximise. All aspects and areas related with change or
which can affect the change must be consider by managers of Led bury.
4.2 Management of changes in business
Introduce changes is not enough but management of those changes in an effective way is
also essential to achieve end goals and objectives. For this, it is very important that every
employee should have information about the changes (Rae, 2010). Proper training must be offer
to employees so they can learn about new methods and process of doing work. Formulation of
effective strategies must be done by managers and should be align with final targets of company.
All improvements increase profits of company and at the same time results in satisfaction of
customers. Training of staff members should consists information about international dishes and
10

food products. In this way, restaurant can offer different type of dishes to its customers and at the
same time can gain various other benefits.
In order to ensure effective management of change number of change management
theories are there which can be use by managers of Led bury. Lewin's model of change and
Kotler's model of change can be use to manage changes. For example: in order to expand its
business operations in new areas and to increase the number of its dishes Kotler model of change
can be use by firm. Any changes made in operations of business will enhance the image of
company and also build its equity through the world. This change is also useful to enter into new
market with brand image which is difficult for them earlier. This will help company in earning
profits than earlier. Any changes in company's image and perception of customers must be
properly analysed and accordingly take corrective measure which will bringing positive result to
company.
4.3 Improvements in business performance over a specific time period
For achieve set objectives it is very important that continuous improvements must be
done in business process. These improvements can be monitor with help of effective tools and
techniques (Storey, 2016). For monitor its business activities, there is a technique called
benchmarking which can be use by managers of Led bury. Under this, managers first set the end
results and communicate the same with employees. After that allocate funds and resources
require to complete the task. At last, manager compare the actual results with standards ones and
in case of any deviation, take the right step to remove the same. This help in increase
effectiveness of business operations and at the same time contribute more in satisfaction of
customers.
In addition to this, other method which can be use by Led bury is return on investment. In
this, company calculate the amount of profits generate in a particular time period and compare it
with the cost invested in business operations (Schaper And et.al., 2014). Company can monitor
its improvements by determine the increase in foreign customers. Balance scoreboard must be
applied which help company to align the activities with the strategy through enhancing the
internal as well external communication and also monitoring the current performance level of
company. It is considered as an effective tools which should be adopted by performance
management which function the organisation by contributing in the strategic planning process.
11

CONCLUSION
From the above information, it can be concluded that small business organisation
contribute a lot in economic growth of a nation. One of the main feature of these businesses is
that they carry out research and then offer featured and unique products to its customers. For
achieve set gaols and targets, it is very important for firm to first formulate a effective strategy
and for this it is very important that manager should have detailed information about major
strengths and weakness of firm. It is very important for manager to implement changes on
continuous basis as this help in attract more number of customers and at the same time contribute
in success and growth of enterprise. For implement changes in an effective way, it is very
important for managers to formulate a action plan so employees can perform accordingly.
12

REFERENCES
Books and journals
13

14