Analysis of Small and Medium-Sized Enterprises

The assignment provided is an in-depth analysis of small and medium-sized enterprises (SMEs). It includes a list of research papers and case studies related to SMEs management, policy interventions, and innovation capacity development. The papers cover topics such as institutional readiness, business growth, internationalization strategies, and sustainable management practices. Additionally, the assignment references online resources that provide guidance on using Kotter's 8 Phases model for delivering sustainable change.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of selected business organisation..............................................................................1
1.2 Comparing performance measures........................................................................................3
TASK 2............................................................................................................................................3
2.1 Recommendations to overcome weak factors of business....................................................3
2.2 Methods by which existing performance of the firm can be maintained..............................5
2.3 Suggest new locations in which a business could expand itself...........................................6
TASK 3............................................................................................................................................6
3.1 Assessing business plans and objectives...............................................................................6
3.2 Revision of business plan......................................................................................................8
3.3 Developing action plan for implementing changes...............................................................9
TASK 4..........................................................................................................................................10
4.1 Implication of proposed changes........................................................................................10
4.2 Concept of change management.........................................................................................11
4.3 Improvements in performance............................................................................................11
CONCLUSION..............................................................................................................................12

INTRODUCTION
In this modern world small business are playing vital role in order to achieve growth and
development in economy. These business operations are beneficila in order to provide
employment to large group of people so they can easily sustain their life. There nave been
ownership taken for small business which contributes to 50% shares of total volume of
industries. Small business operations results in improving living standards of people as they will
be employed. These business are categorised on the basis of their turnover and number of
employees who are involved in business operations. This is beneficial for people as they can
develop innovative ideas in order to achieve growth and success in their overall business
activities (Acs, Audretsch and Lehmann, 2013). This report is based on Cocofina which is
providing organic products to its employees. Report will carry out discussion on small business
and measuring their performance with their rivalry firms, Changes which are essential in order to
enhance performances of business, development of business plans in order to make changes in
their operations and lastly impacts of change management on different business operations.
TASK 1
1.1 Profile of selected business organisation
Small business operations are those who are not having more then 50 employees
involved in business activities. These business operations are useful for growth and development
of economy as they have contributed 90% growths thus providing employment to people in order
to fulfil basic necessities of life. People are developing new and innovative ideas in order to
expand their business operations by developing goods which are more effective.
Cocofina are one of the strong small business who are manufacturing coconut related
food and drink products. These business are listed in Dragon Den series. These business have
invested large amount of finance in order to expand their business operations internationally thus
earning large profitability (Barber, Metcalfe and Porteous, 2016). These business have started
their operation's in UK market and gradually they were successful in expanding it all around the
world. There main objectives is linked with offering quality products to customers in order to
establish strong image at market place and build strong positions in market. They have used all
value added products in order to manufacture their coconut products.
Overview of Cocofina: -
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Small business Cocofina
Owner structure These business are running their operations on equity shares in which
stakeholder are liable to have 5% shares which have earned from overall
business activities.
History This business was developed by regional people as he develop innovative
idea in order to manufacture coconut products. Firstly he started his
operations in food and drink products then gradually it expanded in chips,
sugar, flour, vinegar etc (Bernaert and et. al., 2014). Its drinking products
were developed for the first time in UK in the year 2005.
Activities They are involved in manufacturing food and non food products and
giving them new taste by development of innovative ideas.
Location It is mainly located in England
Founder Founder person was Sarah Louise Willingham
Investment sought £85,000 for 8% equity shares
Description They are dealing in retailing business of coconut products like food,
snacks, chips , bakery etc.
Strengths and weaknesses of Cocofina: -
STRENGTHS WEAKNESSES
 They are providing high value added
products to all their potential
customers.
 They have developed online websites
where people can easily purchase the
goods according to their needs and
convenience.
 Innovative ideas are developed by
which people can easily expand their
 Firms are incurring high cost on
business operations.
 There sources of finance are not
effective.
 They are facing high challenges as taste
and habits of customers are constantly
changing.
 There transportation cost are very high.
 The process used these business for
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business operations.
 Cocofina is organising training and
development activities in order to make
the new employees familiar with work
environment and enhance their present
skills and capabilities.
 They are manufacturing organic food
products in order to fulfil needs of
clients (Chow and et. al., 2011).
 Government is revising their food
products in fixed time intervals.
 They have expanded their business
operations globally and cost of labour
is also minimum.
delivering products are also very high.
 The base of customers are having
change nature.
1.2 Comparing performance measures
In the modern era of competition firms are facing difficulty as they are not able to sustain
themselves for long time at market places thus there shares at market places are very high. The
performance of business can be analysed by using various tools and techniques in order to
measure them in effective and planned ways. The performance factors at Cocofina can be
measured and analysed with keeping in mind different factors like financial planning, human
resource management and different stages of planning. There are various rivalries who are
manufacturing similar coconut products in UK. These business are earning high profits as they
can easily enhance their profitability ratios (Cowling and et. al., 2015). At the early stages when
firms started their business operations they were not able to stabilise their process as there were
facing shortage of funds. At that time there revenues were only 600 dollars and now they have
achieved success by expanding it to almost 2000 millions. In the year 2012 the profitability
factors of firms were $457145 and it has constantly increased as there business operations were
rapidly expanded.
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TASK 2
2.1 Recommendations to overcome weak factors of business
In the present age of competition the most difficult factors for firms is linked with
making strong positions at market places and earn high profitability. Each business is having
strong and weak factors by which are faced by them while performing business operations. Weak
factors are creating issues for business as they are not able to achieve their targets. It is the
responsibilities of mangers in order to identify all weak factors so that business can survive at
market place for long time durations. The justification which helps to overcome the weak factors
are described below as:
Recognise the weakness: If the weak factors are effectively analysed then it results
achieving success for business. Mangers should analyse ways in which each activity gets
completed the quality factors used in order to manufacture food products etc. This can be easily
resolved if firms are making plans in order to resolve the issues in effective and planned ways.
Example : The weakness of all small business is that they are not able to generate
sufficient amount of funds in order to achieve success in their business operations. Thus mangers
have to develop innovative ideas in order to attract customers who will buy their goods as they
cannot afford promotional activities (De Silva and et. al., 2012). There main strong factors will
be achieved if they can arrange their finance in effective and planned ways.
Provide training and development assistance: The weak factors can be easily resolved if
they are organising training activities for employees in order to make them familiar with the
working environment. This helps in enhancing skills of employees so they can easily perform
there business operations. This results in enhancing work productivity thus firms can easily
achieve all their gaols and targets. This is beneficial ion order to enhance work productivity thus
there operating cost can be easily minimised.
Build up confidence: Managers have to motivate their employees at work place so they
can achieve all their assigned gaols and objectives in desired times which had been allotted to
them. Employers should recognise the hard work done by workers and accordingly they should
provide them rewards (Dickson and Weaver, 2011). This is beneficial in order to retain
employees for long time durations at work places.
Using effective tools and techniques: If new machinery are purchased according to
which products can be developed then it results in fulfilling needs and desires of all customers
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and firms can easily achieve success in their business operations. There should be effective time
management strategies developed according to which employees had to execute their working in
effective and planned ways in order to gain success in their business operations.
2.2 Methods by which existing performance of the firm can be maintained
In this modern world it is most vital factor for firms to maintain their positions at market
place and achieve all their targets in desired time frames. The different ways by which Cocofina
can enhance their strong factors are evaluated below as:
Effective human resource management: It is most vital factors for all business in order
to manage all the resources which are available in economy in effective and planned ways and
human resources can be managed by organising training and development programmes. This is
vital factor in order to retain workers for long time thus enhancing their skills and capabilities.
Plan should be developed by firms in order to retain best skill and talented employees who can
easily achieve growth for overall business operations. It is the responsibilities of managers in
order to make effective decisions so that performance of employees can be enhanced. Thus
effective management of resources are valuable in order to attain growth and success for firms.
Determine vision and mission: If the business operations are carried out in external
business environment then it is most vital factors for firms to identify their vision and mission
statements (Forsman, 2011). These statements which are developed by Cocofina are linked with
overall business operations of firms. The main mission statements of business is related with
offering quality products to all their potential customers by using effective tools and techniques
for business operations.
Maintaining employee performance: Managers should develop plans in order to monitor
performances of their employees so they can easily achieve all their goals and targets in desired
time frames. The performance of employees should be enhanced by motivating them in order to
attain training and development session. The performance of organisations are always based on
how employees are executing their working and methods adopted by them in order to
systematically carry out their business operations (Hansen and Hamilton, 2011).
Managing effective communication: There should be effective communication between
mangers and employees so they can easily share all they valuable informations with one another
so that employees can easily achieve all their targets. This is also valuable factors as employees
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can develop innovative ideas and share them with one another in effective and planned ways to
achieve success for firms.
Improve the quality of products: The main focus of businesses should be linked with
offering quality and value added products to their customers as it helps in enhancing their sales
and profitability ratios thus retaining loyal customers who will purchase their products.
2.3 Suggest new locations in which a business could expand itself
The business of Cocofina have achieved growth and success in their business operations
now they are developing plans in order to generate innovative ideas by which firms can achieve
competitive gains. It is they main responsibilities of Managers in order to adopt plans and
strategies which are beneficial for firms so they can easily expand their operations.
Expansion in domestic boundaries: Cocofina are British operating firms and they are
running their operation in order to manufacture coconut based products. In order to expand their
business operations employers have to organise research and development activities in order to
analyse needs and wants of customers thus they can develop innovative ideas in order to expand
their business operations at domestic levels. Thus it is beneficial for small scales firms in order to
achieve their target customer's at national level who will enhance their growth and profitability
ratios. If they achieve good positions at market places then it results in expansion of all their
business activities (Hilmersson, 2014).
Expand in international market : The current positions of business is effective as they
have expanded their operations in more then 30 states and they can now make plans in order to
easily expand their operations and achieve high growth at foreign market. The growth and
profitability factors are very much high at the international areas so they can formulate plans in
order to carry out their operations internationally. The employees should have effective
communication skills so they can easily understand needs and demand of their clients thus
enhancing their profitability ratios.
If firms are making plans in order to achieve higher growth and also market shares then
they can adopt plans and strategies like growth strategies as these are valuable factors by which
firms can easily achieve success in their overall business operations.
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TASK 3
3.1 Assessing business plans and objectives
It is important factors of business who are running their operations in order to achieve
their gaols and targets thus there plans can be effectively formulated. All the objectives which
are formulated by business are interlinked with the planning process thus all plans are executed
in effective and ways in order to achieve higher growth and profitability. Managers should be
focused towards completing all business operations in effectual and planned ways so that
business can easily achieve growth and success in their operations. Business plans are developed
so that firms can achieve all their objectives in specified time durations and those should be
attainable. These plans are formulated in order to allot times in which each business operations
have to be completed in desired time frames by which they can achieve success in their
operations (Korsgaard and Anderson, 2011). The risk and challenges can be easily addressed in
effective and planned ways in order to achieve success in overall business operations. Various
strategies are designed so that problems which are faced by employees can be easily resolved.
Plans are effectively formulated if all the employees are involved in the decision making process.
The major aims and objectives of Cocofina are evaluated below as:
 They wants to see themselves at the leadership positions while selling coconut products.
 There want to expand their business operations thus achievement of large market shares.
 By expanding their activities internationally firms can achieve high profitability.
Business planning contains major steps which are evaluated below as:
Idea generation: This is the starting phase of business plan and employees had to
develop innovative ideas by which they make strong positions from their rivalry firms. This is
vital factors as it results in gaining value added products and services. Various tools can be used
for developing innovative ideas like proposed research, customers, retailers etc. Thus it can be
examined if business are focused on development of innovative ideas then it results in enhancing
their performance in desired time frames.
Idea scanning: This is the next step which states that once the idea have been developed
now these should be scanned by analysing all the internal and external factors which may affects
their new ideas. Managers have to focus on developing ideas so that they can easily fight with
various marketing conditions (Mason and Brown, 2013). The external factors comprises of
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technology, economy, raw materials, human resources and finance and these should be
effectively managed in order to effectively perform all business operations.
Feasibility analysis: In this stages mangers had to monitor and analyse each and every
factors which are useful for business thus they can work on it in order to achieve growth and
success in their operations. Feasibility reports are prepared by mangers in which they mention
about those factors on which employees can work in order to achieve growth and success in their
operation's.
Project report preparation: The reports are prepared when new ideas are developed
which are beneficial in order to implement them at work place so firms can achieve growth and
success in their operations.
Evaluation, control and review: This is the last stages where plans and policies have
been executed and these should be controlled in order to execute business operations in effective
and planned ways.
3.2 Revision of business plan
It is the most important factors for every business in order to monitor and revise their
business plans in fixed time intervals so firms can achieve their gaols and objectives in desired
time frames. Decision making process at work place should be very much effective in order to
achieve all goals and objectives of Cocofina. Business who are executing their operations at
smaller scales should develop innovative ideas in order to easily expand their business
operation's thus achieving growth and success in their business activities. The authorities should
develop plans in order to revise their plans in desired time frames so they can easily achieve
growth in their operations (Mason, 2015). All the negative issues can be easily evaluated which
are causing problems and business is not able to achieve success in their operations. All the
activities should be revised and there outputs should be measured with the help of actual
performances.
As the plans are being revised mangers should fulfil their responsibilities in order to
monitor and analyse the whole situations and then develop plans which are vital for firms in
order to perform their business operations. As the economy is changing so there are
modifications in choice and preferences of customers thus firms should make plans in order to
develop products according to their needs of customers and enhancing their profitability ratios.
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Revising plans also required to analyse all internal and external factors in order to enhance their
profitability and productivity ratios (Mitchelmore and Rowley, 2013).
Revising of business plans are very much effective for Cocofina as they can easily
analyse the difficulties which are faced in performing their business operations and plans should
be developed in order to easily resolve them and achieve growth and success in their business
operations.
3.3 Developing action plan for implementing changes
Changes at work places can occur any time and these are inevitable in nature thus firms
had to develop plans in order to easily execute changes without affecting business operations.
Action plans are important tools by which firms can easily apply changes in plans and policies
which helps them to achieve success in their overall business operations. All the short and long
term business gaols and objectives have to be identified so firms can easily achieve success in
their operations.
Action plans are most vital tools in order to develop effective systems by which firms can
easily execute their business operations in effectual and planned ways in order to attain growth
and success in their overall business operations. Small business have to ensure that they should
hire skill and talented employees who can achieve their targets in desired time frames. Changes
in business process should be implemented according to desired times as it helps in satisfying
needs and wants of their potential customers. Employees should be given training in order to
make employees familiar with the working environment. They should be given training
assistance with the help of presentations, video conferencing, CCTV etc. The different steps
which are involved in action planning are described below as:
Managers had to develop plans and strategies in order to implement changes at work
places and analyse them if they are effective for business operations or not. Decision making
process should be effective in order to expand their business operations all around the globe.
The next step is linked with collecting important informations which are valuable for
business in order to achieve growth and success in their operations. Each situations at work place
should be effectively managed (Obeng and Blundel, 2015). If employees are facing issues at
work place then plans had to be developed in order to resolve them
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There should be SMART goals designed which are valuable for firms in order to achieve
their targets in desired times which had been allotted to them.
Now the plans is ready and it should be executed effectively and all its activities should
be managed properly. If firms are facing issues then innovative ideas had to be developed in
order to resolve them so firms can easily attain success in their business operations.
Activities of action planning consist of the following which are stated in the below table as:
Tasks Duration
1. Business Planning developed for Cocafine 5- 10 days
2. Effectiveness of collecting data and
information
12- 14 days
3. Effectiveness of data collection 10 days
4. Recruitment of skilled and capable
employees.
18 days
5. Cost of operations for completing different
business operations.
10 – 15 days
6. Revision of feedback 4 – 6 days days
7. Action planning date Begins at 31st September 2017
8. Date of completing each task. Ending at 28th September 2017
TASK 4
4.1 Implication of proposed changes
As there is high demand in the economy about organic food products thus business had to
adopt changes in their operations in order to achieve growth and success. If there are changes
implemented at work place then these had to be properly monitored in order to achieve growth.
Cocofina had to develop plans in order to effectively execute all their business operations
according to proposed changes at work place (Sharma, Chrisman and Gersick, 2012). The
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changes can be easily implemented from different fields and these changes are having direct
impact on growth and productivity of organisations.
Impact on organisation: If there are modifications made in the business process then it
may affect the business operations thus growth and profitability factors can be greatly enhanced.
Market research are organised in order to know about needs and wants of customers and
accordingly manufacture goods which are beneficial for them. This is most valuable factors by
which firms can easily enhance their sales ratios thus all their business gaols and objectives can
be achieved. Thus if changes are made then it is beneficial for firms in order to retain loyal
customers who will buy their products.
Impact on personal: Changes are also having impact on individuals as they have to
execute their working with the help of new technologies. This can be achieved if employees are
given training in order to execute their working according so that productivity and profitability
factors can be greatly enhanced (Stewart and Gapp, 2014).
4.2 Concept of change management
The change management can be implemented with the help of following steps which are
described below as:
Urgency for change: This is the first step which is linked with analysing the need for
change management in order to make improvement in their business operations. Cocofina are
having lower finance thus they need money in order to carry out their business operations.
Form a guiding coalition: There should be effective coordination among all the
employees in order to achieve all their assigned business goals and objectives. This is valuable
factor in order to effectively communicate with all the employees in order to achieve their
targets.
Create a vision: Vision statement is created so that employees will execute their working
according to their plans thus their profitability and productivity ratios can be greatly enhanced.
Empower others to act the vision: Managers should develop plans in order to assign
roles and responsibilities to their employees so they can easily achieve all business goals and
objectives.
Create quick wins: All the long term gaols which are formulated by business are linked
with the vision statement of firms and plans should be developed in order to achieve them.
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Build on the change: All the changes should be executed at work places in desired time
frames in order to achieve all their goals (Wang and Altinay, 2012).
Institutionalize the change: Changes should be executed in every business department
thus business can easily achieve growth in their operations.
4.3 Improvements in performance
Cocofina had achieved growth and success in their business operations as there is high
demand of organic food at market places. This is valuable factor in order to achieve all target
customers who can use their products and services. Plans should be developed in order to
measure performance of all their employees and achieve their goals in desired time which have
been allotted to them. Managers can identify all problems and issues which are faced by
employees by effective monitoring so that solutions can be discovered in order to resolve issues.
Training and development can be organised in order to make all the employees familiar with the
working environment. The performance of business can be evaluated by identifying the profit
and loss statement of Cocofina which are evaluated as:
CONCLUSION
From the above report it can be concluded that small business are playing important role
as they have provide employment to large group of people thus living standards have also been
increased. Government has made plans in order to assist all business who are working at small
scales so they can easily expand their business operations. Business plans are useful tool for
mangers in order to achieve all business goals and objectives in desired time frames. Managers
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should timely revise their business plans in order to execute their business activities in systematic
and planned ways.
REFERENCES
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Online
How to use Kotter's 8 Phases model to deliver sustainable change, 2017. [Online]. Available
through: <http://www.analysthire.com/change-management/32-how-to-use-kotter-s-8-
phases-model-to-deliver-sustainable-change>. [Accessed on 8th November 2017].
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