Small Business Success Factors

This assignment explores the key factors influencing the success of small businesses. It delves into the role of networks in fostering innovation and performance, examines the effectiveness of government policies in supporting small enterprises, and investigates the contribution of small businesses to social and economic development. The analysis draws upon academic research and real-world examples.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Produce a profile of Shunggle..............................................................................................1
1.2 Comparative analysis of the financial performance of Shunggle.........................................3
TASK 2............................................................................................................................................4
2.1 Some actions by Shunggle to overcome from the weaknesses............................................4
2.2 Ways in which Shunggle can maintain and strengthened its existing performance............5
2.3 New areas in which Shunggle can expand its business........................................................6
TASK 3............................................................................................................................................7
3.1 Assessment on present business plans and objectives.........................................................7
3.2 Review business plan and propose some areas for changes.................................................8
3.3 For implement changes, Shunggle needs to develop an action plan....................................9
TASK 4..........................................................................................................................................10
4.1 Affect of proposed changes on personnel and business.....................................................10
4.2 Plan for manage the changes...............................................................................................11
4.3 Improvements in performance of business over past years..............................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small business enterprise are those organisations which are managed and organised at
small level and there are little number of staff members working in them. The revenue of these
kinds of businesses is small as well. Shnuggle is a small firm and this company deals in baby
bath products as well as in bed items. Its main motive is to produce products which would not
harm the health of baby (A. Harris and P. Patten, 2014). In the present business report, profile of
business organisation is given. This business enterprise also compares its current level of
performance with the past performance. It has many weakness and to overcome from them,
management of Shunggle has to take some effective and appropriate actions. In this report
discuss about the existing performance that Shunggle company could be maintained and
strengthened. The impact of proposed changes on personnel and business will discuss in this
report.
TASK 1
1.1 Producing the profile of Shunggle with identifying its strengths and weaknesses
The name of business is Shunggle and its main work is to provide baby bath products and
sells some bed products. This is a series of Dragon Den's. This small business firm produces the
bathtubs for babies carefully which is secured and safe for baby. It is specially made for new
born babies and it allows baby to play and sit. Shunggle is a private limited business organisation
and it is established in the year 2009. In this company, almost 1-10 staff members are working
and it has 2 investors. Company has 5 directors (Altman, Sabato and Wilson, 2010). It is situated
in Northern Ireland. Its main focus is on manufacturing the high quality products for babies. The
staff members of this business enterprise are specialists in their field and Shunggle uses new
technology for making products qualitative and better. Its main activities are to manufacturing
the bed as well as baby bath items. So at the time of bathing baby can enjoy. The sales and
revenue of this company is less in comparison to large business organisations. This firm has
some strengths and weaknesses which are given as below:
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Strengths
 Main strength of this company is that it uses the latest and advanced technology for
making products better in comparison to its competitors.
 It has a better image in the minds of customers.
 Its main focus is on expanding business in new areas by providing good quality services.
 This business organisation has a strong commitment and it is its major strength.
 To increase the skills, customer services, knowledge and capabilities of staff members,
manager of this company provides training to them (Blackburn, Hart and Wainwright,
2013).
Weaknesses
 Due to low budget or revenue, it does not conduct the research programme.
 The main weakness of this organisation is that it does not give more promotion about its
products and services.
 It does not have any support system.
 Very few people know about this company.
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Illustration 1: SWOT Analysis
(Source: SWOT ANALYSIS, 2017)

Opportunities
 It has a big opportunity to increase its business.
 This company can promote its goods and services at big level.
Threats
 It has many strong rivalries.
 The instability of government impacts on business.
1.2 Comparative analysis of the financial performance of Shunggle
Shunggle is a small business organisation and its main objective is to render good quality
of baby care bathing products which does not harm the body of babies (Bridge and O'Neill,
2012). By maintaining the balance sheet as well as profit and loss, this company can measure its
present performance with the past.
Profit and Loss Account
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 190 280
Cost of Sales 120 190
Gross Profit 70 80
Overheads 50 50
Net. Profit 20 30
Balance Sheet
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 60 40
Stock 40 70
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Debtors 25 40
Bank 0 1
Total 65 110
Current liabilities
Creditors 10 22
Bank overdraft 0 6
Total 10 28
Current ratio = current asset / current liability
2016 2017
65000/10000= 6.5 times 110000/28000= 3.9 times
Interpretation- With the help of balance sheet and profit and loss statement, company
can measure or compare its financial position of years 2016 with 2017. There is a data given of
Shunggle business enterprise of 2016 and 2017 and after determining the financial statement, net
profit of this company is £20 in year 2016 and in 2017, net profit is £30. According to the
balance sheet of Shunggle, total fixed assets are 60 and in the year 2017, total assets are 40
(Carraher and Paridon, 2015). On the other hand, current liabilities of this company are 10 in
2016 and in 2017, current liabilities are 28. After all this, the current ratio of 2016 year is 6.5 and
the current ratio of 2017 is 3.9.
In this company, there are marketing, Human resource, sales, production departments are
working and all working together. The main work of production department is to produce better
quality of goods by using new technology. Human resource department recruit capable and
knowledgable candidates who can do job and business activities properly. The marketing
department of this company prepares strategies to introduce new products in market, prepare
design of product, conducts promotional activities etc. Employees of sales department start
selling of products to convince the customer. All departments are work together and their
performance are good. They all work on achieving the common goals and objectives.
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TASK 2
2.1 Some actions by Shunggle to overcome from the weaknesses
If Shunggle company will overcome from its weaknesses, then it will be beneficial and
good for it. To get over from the weaknesses,it is necessary for the management of this company
is to find out or identify its weaknesses (Ciampi and Gordini, 2013). It will be helpful in
enhancing the profitability and growth of company in the future context. The performance level
of all departments is good but some times this company suffered from the loss. Because it does
not have a strong brand name, so from this reason many few people about about it. The staff
members of this company is very innovative as well as creative. There are some area of
weaknesses and to over come from all these company has to work:
Problem solving strategies- The main focus of this company is to earning more profit and
also expand its business in to new areas. But its managers do not take care of their workers as
well as workers. They do not listen problems of their workers properly and it is the main
weakness of it. From this workers are dissatisfied and it is not good for the productivity of
business. So, to overcome from it, it is necessary for employer to prepare strategies related to
problem solving for employees. So, they will listen the problems of workers and solve out in a
satisfactory way.
Availability of professional advice- The size of Shunggle organisation is small and this
company does not have any advisor. This person helps in providing good advice related to
business. So, to increase the capability and efficiency of business, it is necessary for managers
and shareholders to appoint an advisor or go to consultant and also take advise for business in an
appropriate areas.
Use of outsourcing in particular areas and its availability- It is necessary for company
to outsource some thing in the particular areas and also available all the resource (Di Domenico
and Miller, 2012). This company has lack of availability of finance and due to this, it can not
give the proper and attractive salary to its employees. This is the major weakness for it. Without
the good salary, staff members will not work properly. So, to get over from it, company has to
search new investors and should manufacture new products which new features which is good as
comparison of its competitors.
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Conduct research- With the help of this, management of Shunggle can know about the
needs and tastes of customers, existing products, marketing strategies, strong competitors etc. So
from this, production department produce effective and unique goods.
2.2 Ways in which Shunggle can maintain and strengthened its existing performance
The main motive of this company is to provide good quality of goods and services at
reasonable cost to its customers. The major and strong strength of this company is that in the
process or production, Shunggle business industry adopts latest technology for increasing the
quality of goods (Down, 2010). This company manufacture the babies bath tub from taking care
the health of babies. It will helps in maximising the productivity and development of business.
The manager of this company provides training facilities to its staff members for the purpose of
enhancing the skills, good customer service, abilities of workers. There are some points which
help in maintaining the performance level and the strength of existing business:
Keep maintaining the records of performance- To maintain the strength and increase the
performance level, it is necessary for this company is to monitor and maintain the records related
to the performance of company. Record can be related to the last 2 to 3 years of company. From
this, the management of this business firm try to give the better performance as comparison to
last years.
Building strength of business- To maintain the performance, this company has to build
the strong name and from this many people know about the business and it is good for it. From
this the sales of its products will be increased.
Maintaining market position- If the market position of this company will be good , then
the productivity will be enhanced (Fassin,Van Rossem and Buelens, 2011). For this, company
has to conduct many promotional activities. From this many people will aware about its products
and with the help of this the sales will be high and it will helpful in maintaining the market share.
Maintain good relationship with customers and suppliers- The relationship of this
business organisation is good with its suppliers as well as customers. This company provides
good customer service to its customers or solve their problems properly. It has also a good
relationship with its suppliers because they provides qualitative raw materials to company and
from this Shunggle produces goods at proper time.
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2.3 New areas in which Shunggle can expand its business
For expand or increase the business, each and every business organisation has many
opportunities. With the help of expansion of business, company can target new customers and its
sales and growth will be increased. Before expanding the business in new sectors, it is necessary
for managers is to identify its strengths and weaknesses (Forsman and Temel, 2011). For the
purpose of expansion, Shunggle company has to identified some areas. Company can expand its
business in to niche markets. It is a subset of market where this company can focus on the
particular products as well as services. The features of products is unique and its main purpose is
to satisfy the needs and wants of particular markets. It is specially for the small size firms.
In regards to expand the business, company has to conduct the research programme and
to know about the better opportunities at market place. This business enterprise collect data with
the help of primary as well as secondary resources. It can evaluate its exiting projects and also
see that profit behind them and if there is a need of any kind of change, then management has to
focus on that. For the purpose of starting any new project, there will be the requirement of
funding, so for this Shunggle has to manage money and also make a financial plan regarding it.
To adopt the new opportunities and expand business in to other areas, company has to face many
risks and also try to overcome from risks.
From expanding the business in to new countries, area and sector, the cited business
organisation can target new customers and attract them towards the products by conducting the
attractive promotional activities and aware people regarding the specifications of products. This
business firm can expand its business by making products for young people or making toys and
clothing for children.
TASK 3
3.1 Assessment on present business plans and objectives
Shunggle is a small size business organisation and in this company there are small
number of staff members are working. Its main purpose is to enhancing the sales and providing
the good products for children (Gill and Biger, 2012). At the time of manufacturing products for
baby, it uses better quality of raw material and also the take care about the heath of children. This
company wants to expand its business in to new sectors or areas for increasing the profitability.
So in context to this, top management of Shunggle business organisation prepares a plan which
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will be good for business. With the help of plan, company will do its business in a systematic
manner. Plan can be related to expansion of business, make improvement in the existing
performance of company etc. This company has 2 main investors and their motive is to earn
more profit.
Structure of Shunggle's Objectives
Vision for staff members- Vision of Shunggle business organisation for its workers is
that it provides training and also guide them properly (Gronum, Verreynne and Kastelle, 2012).
Its managers motivate its employees so that they will perform well and work for achieving the
gaols of company.
Vision for customers- For the consumers, it vision is to give better bed products as well
as baby products to its customers.
Vision for shareholders- From expanding the business company can earn more and
more profit. The shareholders provide funds to busiest for doing the operations or activate of
company.
It is necessary for company is to classification of all the objectives on the basis of current
performance of this enterprise. If an existing performance of company will be good, then in this
case employees can easily achieve its goals and objectives. If there have to be any change in the
objectives, then it is the duty of top management to make some changes in the objectives on the
basis of current trend in market. For changing purpose company has to prepare a plan.
Modifications are always good for business environment (Herbane, 2010). It is the duty of top
management of Shunggle is to prepare a plan regarding changes in business objectives.
Business plan- The top management prepares a plan and manager has to execute it in an
appropriate manner. After implementing business plan, managers should monitor ion the
business operations and control them. Regarding the change, employer should communicate to
every staff members. Change will be good for company. With the help of plan, staff members
will work properly and also according to that.
3.2 Review business plan and propose some areas for changes
If the management wants any any of change at workplace or working environment, then
it is necessary to develop a plan. The changes can be according to the market condition and also
current position of Shunggle. In context to this, manager appoint a researcher who is specialist in
research and also conduct external as well as internal research programme. With the help of
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internal research, company can know about the effectiveness of its operations and activities and
also know about the working ability of employees (Jasra and et. al., 2012). On the other hand,
from the external research firm can know about its strong competitors, its position at market
place, existing products and many other things. It is helpful in making a business successful. In
context to business plan, some points are given below:
Framework of integrated busies plan- For increasing tan effectiveness of business plan,
all departments of Shunggle such as marketing, sales, finance and also production. All are
working with each other for achieving common goals and objectives. The work of marketing
department is to prepare design of product, develop promotional strategies etc. Production
department manufactures new and effective products by using advanced technology. The finance
function works on managing funds for business activities and operations.
Use of business plan- From using the plan, company can do its business activities
according to that and in a systematic manner.
Assessment of plans against business objectives- After making the plan, managers
should check that the plan is meet with the objectives of company or not. If it is match then it is
good for company and in case if not match, then manager has to make changes in it.
Incorporate changes- For any modification in plan, employer should consult with its
shareholders and also with the employees and also understand them the benefit of change.
Budgeting- For make changes in plan, company has to need the funds. In context to this,
firm manage and collect money from its investors and also taking loans.
3.3 For implement changes, Shunggle needs to develop an action plan
For implementation any kind of change at workplace, the top management of Shunggle
develops a perfect an appropriate plan (Obeng and Blundel, 2015). The primary objective of this
company is to accomplish its target in a specific time period. During execution of plan, it is
essential to use 7's which are related to planning and those are strategy, style, structure, skills,
systems, staff and also shared values. In regards to implement some changes, managers should
include their staff members in this. In action plans includes:
For implement the changes, makes plan- To implement any kind of changes, the
management has to make a plan through this,company can do its operations and activities
properly. Changes are good for business and employer should aware employees about the
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benefits of plan. The top management make changes in the existing plan or produce new plan. It
is the duty of manager is to implement the plan effectively in an organisation.
System to manage- To manage the change at workplace, company should do its business
activities in a systematic manner (Rae, 2010). From this, change will be impact less on the
performance level of employees.
Monitor and evaluate all changes- After implementation of change plan, it is a duty of
manager is to monitor that change will be successfully implemented and also determine the
circumstances of change means it is beneficial or not..
Measure performance- The manager should be determine or evaluate the performance
level of all staff members because most of the employees do not like any kind of change, they
want to work in the existing environment. Along with this, also determine the performance of
company.
Setting deadlines- After giving the task and any kind of activities of employees,
employer should set a time period to achieve the target or to complete task. From this all workers
will properly and try to give their best performance.
TASK 4
4.1 Affect of proposed changes on personnel and business
In an organisation, the proposed change can affect negatively as well as positively on
business along with the staff members. From any kind of changes at workplace, the business
activities and its operation can be affected more. If the impact will be good, then it will be
beneficial for business and in case if not then, there will be negative affect on the productivity
and development of business (Ratten, 2014). At the time of execution of proposed changes,
managers should be careful and also include all workers. But most of the time, many of workers
are not able to adjust in the changing and new working environment, then in this case employer
should increase their motivational level and also convince them to adopt changes. There are
some effective proposed changes mentions:
Finance- In relation to the proposed change in field of finance is same as starting a new
venture of Shunggle business enterprise. If management will carry out all the operations properly
and in an appropriate manner then it is beneficial for company and its impact will be positive on
business. The success of any new business is depend on its team members.
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Morale- Most of the time, from selecting an y new candidates for job, old and senior
staff members feel unsecure, they feel that employer replace them from new employees or fire
from job (Schaper and et. al., 2014). But in regards to it, employer of Shunggle enterprise
increase their level of motivation and also try to enhance the team spirit. It will also affect
positively and old employees will give their performance good.
Workloads- The manager of Shunggle company are very disciplined and also prepares a
tight schedule for staff members. So that they all will try top complete their work and activities
in a particular time period. It is up to the employees to manage their work in a proper manner.
For increasing their capability and abilities, manager provides the training and development
facilities to them. With the help of this their motivational level will be enhanced and they will
give the best performance.
Structure of company- It is essential that the structure and infrastructure of company
should be good, so that all people will work in an effective manner. Every worker should be
clear about its job profile, responsibilities and their reporting manager.
4.2 Plan for manage the changes
In Shunggle business industry, most of the persons do like like any kind of modification
and they want to continue in the present working environment and culture of company. Due to
the fear of risk, mostly small companies do not make any change in their plans and policies. But
in regards of this, Shunggle changes in its policies and make plans to increase its business and
for creating the positive working environment for people (Sluyterman, 2013). For manage the
modifications or changes, managers prepares plan which is related to:
Monitoring impacts of change- The manager makes a plan regards monitor the affect of
change on employees along with the workplace. If the changes are implement successfully then
it will be good or business and if changes are effect the business and employees are not working
properly then in this case top management has to determine the reason behind it.
Keep records determine the impact- It is necessary to record and maintain a record
related to change in performance level of company as well as employees and after this compare
the current performance level and performance before implement the change.
At the time of executing the changing plan, employer uses 7's of planning which will help
in making the plan successful.
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4.3 Improvements in performance of business over past years
After executing the changes, it is necessary to monitor operation and also business
activities. The manager is responsible to maintaining the records related to any kind of change at
workplace (Stokes, Wilson and Wilson, 2010). If company will record the changes then, it can
compare the current performance with the existing. In context to it, Shunggle company has to
maintain its documents and also record of any deviation and determine the solution to handle
them in a systematic manner. From continuous monitoring the business activities, manager can
see the effectiveness of business (Storey, 2016). For determining the activities related to the
business, this business organisation has to identify its strength and weaknesses. It is a
responsibility of manager of Shunggle to keep track all the changes related to activities and at the
workplace environment. It will be beneficial and good for the productivity and the development
of business. From the changes, company can also measure its present performance level with the
past two years.
CONCLUSION
It has been concluded from the above report that Shunggle business organisation do its
business activities properly and try to expand its business. In this report prepare an effective
profile of Shunggle and also studied about its weaknesses and strengths. To overcome from its
weaknesses, this business organisation prepares strategies related to problem-solving, take
suggestions from advisor, conduct research programme etc. In this present business report
discussed about the new areas where Shunggle can expand its business. For implement any kind
of change, the top management prepares a plan. There has been a discussion with the help of
plan employer manage the changes at work place.
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