Analysis of Small-Scale Enterprise Performance

The provided document is a solution to an assignment that requires analyzing the performance of small-scale enterprises. The report presents various techniques used by small businesses, including making money and taking calculated risks, and highlights their importance in business success. It also references several books, journals, and online sources related to entrepreneurship, small business management, and sustainability.

Small Business
Enterprise

TABLE OF CONTENTS
INTRODUCTION..................................................................................................................1
TASK 1...................................................................................................................................2
1.1.Profile of a selected small business identifying its strengths and weaknesses.................2
1.2. Analysis of business using comparative measures of performance...............................3
TASK 2...................................................................................................................................3
2.1.Ways to overcome weaknesses of Posh Nosh..................................................................3
2.2.Ways in which existing performance could be maintained and strengthened..................4
2.3.Areas in which business could be expanded....................................................................4
TASK 3...................................................................................................................................5
3.1.Assessment of existing business objectives and plans.....................................................5
3.2.Revise business plans to incorporate appropriate changes...............................................5
3.3.Action plan to implement changes...................................................................................6
TASK 4...................................................................................................................................7
4.1.Covered in PPT.................................................................................................................7
4.2.Covered in PPT.................................................................................................................7
4.3.Covered in PPT.................................................................................................................7
CONCLUSION......................................................................................................................9
REFERENCES.......................................................................................................................9

INTRODUCTION
Small business enterprises are privately owned enterprises which have
limited number of employees working in it. There annual turn over is lesser than
regular sized business or corporation. It may have 15, 50 or less than 5000
employees. It can be seen that these are little businesses having a limited budget
and doesn't have a high number of sales. It's definition also varies from industries
and countries (Bridge and O'Neill2012). These are privately owned and have sole
proprietorships or partnerships. Posh Nosh is a small restaurant and an event
management company located in UK. This report covers ways of improving small
business and it's weakness, strengths. An action plan is built up to maximise it's
profit. Profits generated in such organisations totally depends on the inputs that are
put in. Small budget but aims at generating profits. It can be seen that such
businesses result in bringing changes in economy.Small-scale business enterprise is a
business which provides employment to a small number of workers and it has a limited number
of sales. These businesses generate little profits for themself. It can be seen that these are little
businesses having a limited budget and doesn't have a high number of sales. It's definition also
varies from industries and countries. These are privately owned and have sole proprietorships or
partnerships. Posh Nosh is a small scale business enterprise which is into food, drinks and
catering business (Blackburn, Hart and Wainwright, 2013). This company is registered in Wales,
England and is famous for providing world class street food. They also deal in event
management and is one of popular firm. Small scale enterprises are important because of their
employment potential and contribution to industrial outputs and exports. Owner is involved in
every activity and is involved in taking decisions for organisations. This report is about various
strengths and weakness of small business, business plans which brings changes and ways to
improve business.
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TASK 1
1.1.Profile of a selected small business identifying its strengths and weaknesses
Posh Nosh is a small business enterprise which is having a restaurant and does event
management. It has unique fast food items and does events like marriages, birthday celebrations,
parties, catering, large corporate events etc. This restaurant is present in United Kingdoms and it
is owned by executive .chef , Coleen Speaks Their main focus is to give the customers a unique
experience by providing these services either at a beach, boat, field, office and in buildings
(Blackburn, Hart and et. al., 2013). Customer segmentation here is of college going students and
young crowd. Focuses on people who prefer taste. They can do it anywhere which depends
totally on demand of customers and their budget.
Strengths :
1. Cost : Posh Nosh provides foods and services which are of affordable price. Their pricing is of
remarkable level and it satisfies consumers really well. Customers focus on getting products and
services at a good reasonable price which is a good thing for company.
2. Quality : Utilities and products provided are of utmost quality and it can be seen that
customers are attracted towards these qualities. Posh Nosh food has a good taste and consumers
are satisfied with that. The event organised by them give customers a high profile feeling and
special since these events are really good.
3. Close supervision, small capital, management is easy : It becomes easier to supervise Posh
Nosh because of small number of employees and small business. Capital required is little and
easier to put in money.
4. Controlled supply : As demand changes, supply can be adjusted as it is easier in small scale
business.
Weakness
1. Name of brand : Since it is a small business so, it is not so popular as already big firms like
McDonald etc. Posh Nosh really needs to work on marketing.
2. Competition : It becomes really tough to fight with competitors. Companies like
KFC,McDonald are food chain and are really famous. Posh Nosh has to fight with such big
giants and leaders
3. Cost of production : It becomes relatively costlier since all expenditures has to be taken by
owner itself. Moreover, due to high labour cost there is increase in cost of production.
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1.2. Analysis of business using comparative measures of performance
Posh Nosh business needs to check its daily performance and know quality feedbacks.
Posh Nosh is serving customers their desired foods but they have to improve a lot in their
servicing and production sectors. Following analysis have been made :
1.Time required : It is seen that a pizza requires around 30mins to be produced and served to
customers. The time taken is more and needs to be reduced for customer satisfaction. Customers
don't prefer to wait and time should b reduced. Like here in case of pizza it should take around
15 minutes for serving it.
2.Number of orders : Currently Posh Nosh takes around 300 order per day and serves their
order. These orders are of moderate number and needs to be improved. Moreover, 200 home
delivery orders are taken in a day (Bridge and O'Neill2012). Posh Nosh needs to improve it by
either improving their food quality or doing more marketing or simply by giving discounts for
regular customers.
3.Percentage of business with existing customers : Business with existing customers tell that
Posh Nosh is doing good in providing their services and products. Currently, Posh Nosh is able
to retain its old customers and is looking good.
4.Developing a customer feedback form : Feedback forms are really important in knowing
negative and positive points of a company. These give scope for improvement and also to know
their value points which customers love. It can tell where Posh Nosh needs to improve.
Currently, customer complaints are about delivery time which is more. So, they are working over
it but customers have valued over quality of food served.
It can be seen that sales of Posh Nosh increased for about 2% in last year and is doing great in
market. Their catering business is also doing really well. Company had set a budget of about 50
lacs for the task.
TASK 2
2.1.Ways to overcome weaknesses of Posh Nosh
Posh Nosh needs to improve a lot in order to increase their sales and make oneself
popular in market. Here are ways through which weaknesses can be overcame :
1.Marketing needs to be done more : It can be seen that this company needs to do a lot of
marketing in order to make customers aware about their products and services. Posh Nosh has to
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fight with big brands which are already in market like KFC , PIZZA HUT etc. These big brands
are already in market and have to be beaten down in order to draw their customers here.
Marketing can be done through advertising over radios, TV ads, by posters etc.
2.Labours and chefs needs to be changed : It is seen that labours and chefs at this restaurants
are not working well and needs to be changed accordingly (Sahut, Peris-Ortiz and et. al., 2014).
They need to bring in some of the finest chefs and waiters who could do this job really well.
3.New machines and products : Posh Nosh needs to bring in some new machines that could
reduce time of production of food items as well as can produce in more quantity. It can be seen
that if these machines will be installed then a lot of labour work will also be reduced resulting in
reduction of cost. New products needs to be added on their menu in order to attract more
customers. It can be seen that it should have at least some dishes and food items which are their
speciality and is not available anywhere else. This can be their USP to become successful in
market.
SMART objectives here involve :
1.Specific : Refers to particular goals which needs to be accessed first and taken care of. Posh
Nosh has a specific goal of providing best fast food in city and giving a wonderful experience to
their customers.
2.Measurable : Posh Nosh wish to beat big fast food chains like KFC. For this they have good
strategies which have to be submitted accordingly.
3.Attainable : These are the goals which they can really achieve and is under control.
4.Relevant : Any goal can't be achieved easily and they have to be relevant according to the
mission of organisation.
5.Timely : Project that they have started will be completed in some period of time. It can be seen
that for instalment of new machines a time period of 1 month is given to them.
2.2.Ways in which existing performance could be maintained and strengthened
Performance of Posh Nosh is moderate. It doesn't make huge profits as it is expected
from it. They focus on taking big corporate events, marriages, birthday celebrations and parties.
Their catering business also works with them. People opt for their company because they provide
services over different venues like beaches, boats, offices, buildings etc. They have a unique
concept and is very successful in doing so. Performance can be maintained by simply employing
more skilled labours and good using advanced machines. Skilled labours and chefs relates to
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productivity and a better performance. It is so because quality is maintained in this way. High
quality products attracts more number of customers and an bring changes in business. Also, a
constant marketing can change the whole scenario (EidEl-Gohary, 2013). Marketing is essential
in order to make customers aware about product. It can be seen that Posh Nosh is a small
business enterprise and needs constant updates for its brand image. Also, adding live music
performances with food can also be a good idea.
1.Customer satisfaction : Customers can only be satisfied when they get value for money. For
this special chefs have been appointed in their restaurant. Also, discounts for regular customers
have helped them to satisfy their customers.
2.Training : Posh Nosh always give training to their employees who needs to perform even
better.
2.3.Areas in which business could be expanded
Posh Nosh has to give lots of money for buying resources from other vendors. It should
plan on reducing this cost by simply generating their own resources which can be done by
growing various crops and vegetables in their farms. They can expand their business into
farming business. Posh Nosh Farms must be opened in order to produce their own resources and
use them for their business. Now, they can use vegetables grown over the farms and can supply it
to other buyers too (Bridge and O'Neill2012). They can sell them at their own price claiming a
good quality product. This can help them a lot to build profits for company and to make investors
put in money in their business. Fruits too can be grown and then be used in order to make shakes
and juices for customers. Posh Nosh can even do marketing by providing freshly made juice to
their customers which can become a unique selling point for customers. New technology used
here is of LED alert system which can be used in restaurant in order to give alerts during
sensitive time. Another technology used here is of touchscreen used in taking orders. Business
plans are not easy to apply since it requires proper funding and has high risk. Time is also
invested in it and is useful for entire process. High risks are associated with it and can also incur
losses to company. Posh Nosh can expand easily in this sector since it will be an associated
business.
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TASK 3
3.1.Assessment of existing business objectives and plans
Main objective of Posh Nosh is to maximise their number of sales and make their brand
name big. It can only be achieved if it serves food items which are different and unique in taste.
Organisation is working effectively on these objectives and plans. For improving sales they have
started program in their food chain in which they provide complimentary drinks and foods to
their regular customers (Blackburn, Hart and et. al., 2013). These are customers who are loyal to
this company and are given privilege and treated specially. These methods make customers
special and recognised which is very important for privileged customers in future help to
increase sales. They act as face of company and promote Posh Nosh by telling others benefits
they can have. Customers are then attracted towards Posh Nosh and enjoy food and drinks. If
customers feel privileged and important then only they would avail such services and would go
to Posh Nosh restaurant. We know it is a small scale business so it has to face fierce competition
with other brands like McDonald etc. Being a small enterprise to run business product must sell
and which is done by amazing marketing techniques (Bridge and O'Neill2012). These include
promotion by advertisements on taxis, cabs, jingles on radios, free food samples etc. Free food
samples of burgers, French fries are done during peak hours of day. This is done as a customer
tries free sample. They can lead in market if they provide food which is of utmost quality.
3.2.Revise business plans to incorporate appropriate changes
Business plan of Posh Nosh includes buying of a land initially for growing fruits and
vegetables over it. It can be seen that if their farming business comes into reality then huge
profits can be made and a great change can be made in business.
Forecasting : A 50 acres land can be bought in order to do farming over it and use it for various
purposes. This will be used to grow vegetables like potatoes, tomatoes, peas etc. and also fruits
like apples, oranges, pineapples etc. This will be helpful in getting resources for restaurant at a
lesser price. Also, they can also use these to be sold in market at their own prices claiming their
product to be of great quality. They also do event management which requires many products to
finish the task and various events related to it. Budgeting : Budget will be set according to
revenues that are earned by restaurant and event management. It will change accordingly. It can
be seen that large sum of money is required in order to fulfil the demand and needs of customers.
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For new machines to be bought a sum of 10 lacs will be fixed. This money will make them buy
new machines. Past performance : If we see past performance then Posh Nosh made a profit of
about 20 lacs. This sum of money can be used for various needs and changes to be brought in
company. Seeing past record food items like pizza, burgers and French fries sold maximum
added by shakes that are present there. People preferred it more. Customers also like their idea of
doing events on beach the most.
3.3.Action plan to implement changes
Action plan should be very clear and precise. Making it very specific about goals and
objectives to be completed (Blackburn, Hart and et. al., 2013). It can change whole scenario and
turn visions into reality, increasing efficiency and accountability within an organisation. Plan has
to include following points:
 What actions or changes will occur?
 Who will bring out changes?
 By when these changes will be done ?
 What resources are required to carry out changes?
 Communication required to bring these changes.
What changes will occur?
As Posh Nosh Farms will come into action then production cost will be decreased.
Money saved in raw materials can be used in other processes like doing marketing. It can be
done using it on radio, TV, banners etc. Changes like good brand image, sales growth, customer
retention will be done. Due to this monitoring will also increase. Production cost will also reduce
as well as quality of food items served will be better. Reason is that no impurity will be present
in raw materials.
Who will bring out changes?
Changes will be brought by owner of Posh Nosh and marketing team. By investing in
land and developing a production house a huge differences will be made (Sahut, Peris-Ortiz and
et. al., 2014). Whole project will make huge profits and a good brand image will be built.
By when these changes will be done ?
Changes will into action after a period of 1 month when plant will be installed.
What resources are required to carry out changes?
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Capital will be required for investing in project. Asset like land of 50 acres will be
required.
Communication required to bring these changes.
Proper communication will be required for new customers. Promotions, ads, banners etc.
will serve as a source of communication and hence changes will come in time.
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TASK 4
4.1.Covered in PPT.
4.2.Covered in PPT.
4.3.Covered in PPT.
4.1.Impact of proposed changes on business and its personnel
Business changes will come when the proposed changes will be opted by them. It's impact
will be as follows :
1.Updated with current trends and new technologies : As Posh Nosh will buy new machines
and the technologies required for production it will have direct impact over the way their
business operates. Their production cost will be reduced and production time will also be
reduced.
2.Job roles : As due to advancement of technologies and big projects comes in the roles of
owner, workers and supervisors will changes. Workers now will have role of serving
people nicely and taking their feedbacks (Sahut, Peris-Ortiz and et. al., 2014). Before
manager had the duty of managing the dinners, meals, lunches and live band performances.
Now he needs to check the quality of food also as their main goal is to provide quality
products only.
3.Space of restaurant and office : Will increase as more customers will come.
4.2.Ways in which changes will be managed in business
Here, the change management Kert Lewin's model is used to tell process of changes that
happen in an organisation. It is a 3 step process and includes :
1.Unfreeze : This stage looks over change that is required in any organisation. Posh Nosh
requires to change it's machines and need to add some items in their menus. This need has
to be their for better productivity. Also, a need of buying a land is required. Due to this a
need of change will be experienced and can be brought with time.
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2.Changes : All changes and improvements required for Posh Nosh will be implemented.
Employees must be given training in order to opt to changes and requirement set by Posh
Nosh. A supervisor has to see that these changes are accepted by everybody and hence
followed. When new food products developed by them will come in market then job roles
will also change accordingly. It can be seen that if the employees can't survive these
changes then they might loose their job.
3.Unfreeze : This stage is last one and it includes results that are opted due to changes made.
Profit margins of Posh Nosh will improve and brand image will be better. Staff needs to
change with time and will managed by supervisor. They will be given training for these
changes made. Barriers to change will be eliminated from system. Rewards will be given
to employees who are good performers and give a good output. This way employees will
be motivated to opt for new changes and perform really well.
4.3.Improvements in performance of business over a given timescale
Posh Nosh has undergone changes due to its marketing techniques. It can be seen that
number of sales has doubled with respect to previous times. This has happened merely due
to a good marketing plan. Many people were attracted and impressed by its marketing
techniques specially of providing free food samples and drinks (Eid and El-Gohary, 2013).
Also ads over radios and TV has made people realise why this brand is so good to try out
food items. Customers now know a place from where quality food and drinks can be
obtained. Also, it is seen that people are preferring burgers and French fries more
(Blackburn, Hart and et. al., 2013). A good quality product and a good sense of market has
enabled Posh Nosh to bring changes in their company and sales have increased. It's market
has improved by 2.5% as compared to last year. It can be seen that Posh Nosh has brought
huge changes in their business so far and is successful in making their name popular in
market.
CONCLUSION
Small business enterprise has brought a huge change in economy. It can be seen that
these small businesses makes a big difference in market as well. People get employment and it
adds value for country by improving their living standard. Using modern technologies and
keeping oneself updated is best way to stay in market and have great sales. Even Posh Nosh has
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proved this in their business. It is of great importance to know way of making money and taking
calculated risks. The current report concludes techniques used by this company and business plan
that it has opted will generate profits for them. Using such new trends and technology a great
effect comes in business line. Such business type is of great importance and also motivates other
brands to focus over their business seriously.
REFERENCES
Books and journals
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small
business.
Blackburn, Hart and et. al., 2013. Small business performance: business, strategy and owner-
manager characteristics. Journal of small business and enterprise development. 20(1).
pp.8-27.
Olson, D.L. and Staley, J., 2012. Case study of open-source enterprise resource planning
implementation in a small business. Enterprise Information Systems. 6(1). pp.79-94.
Gronum, Verreynne, M.L. 2012. The role of networks in small and medium‐sized enterprise
innovation and firm performance. Journal of Small Business Management. 50(2).
pp.257-282.
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Eid, R. and El-Gohary, 2013. The impact of E-marketing use on small business enterprises'
marketing success. The Service Industries Journal. 33(1). pp.31-50.
Cowling,A., 2012. Small business financing in the UK before and during the current financial
crisis. International Small Business Journal. 30(7). pp.778-800.
Jasra, Hunjra and et. al., 2012. Determinants of business success of small and medium
enterprises.
Hilmersson, M., 2014. Small and medium-sized enterprise internationalisation strategy and
performance in times of market turbulence. International Small Business Journal. 32(4).
pp.386-400.
Sahut, Peris-Ortiz and et. al., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). p.663.
Ritchie, J., 2015. Enterprise cultures. Deciphering the Enterprise Culture (Routledge Revivals):
Entrepreneurship. Petty Capitalism and the Restructuring of Britain. p.17.
Williams, S. and Schaefer, 2013. Small and medium‐sized enterprises and sustainability:
Managers' values and engagement with environmental and climate change
issues. Business Strategy and the Environment. 22(3). pp.173-186.
Online
Definition of Small-Scale Enterprise. 2014. [Online]. Available through :
<http://smallbusiness.chron.com/definition-smallscale-enterprise-17652.html>. [Accessed on 5th
July 2017].
Small Business Eligibility Requirements. 2012. [Online]. Available through :
<http://www.dgs.ca.gov/pd/Programs/OSDS/SBEligibilityBenefits.aspx>. [Accessed on 5th July
2017].
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