Small Business Management and Entrepreneurship

The assignment provided is a collection of papers and articles related to small business management and entrepreneurship. It includes research studies on the role of networks in SME innovation and firm performance, strategies for scaling up social enterprises, and critical decisions for ERP integration in small businesses. The documents also discuss managing customer relationships in the social media era, techno-economic analysis of electric energy storage systems, and more. The summary provides a brief overview of each topic and highlights the key findings and implications for small business management and entrepreneurship.

Small Business Enterprise

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of Café Portrait, identification of strength and weaknesses.......................................1
1.2 Business analysis on measuring performance level...............................................................3
TASK 2............................................................................................................................................4
2.1 Appropriate actions to overcome the weaknesses.................................................................4
2.2 Ways of maintaining and strengthening the performances....................................................5
2.3 Areas in which business can be expanded.............................................................................6
TASK 3............................................................................................................................................7
3.1 Existing objectives and plan of the Cafe Portrait..................................................................7
3.2 Revising business plans to incorporate appropriate changes.................................................8
3.3 Action plan to implement the changes...................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of the propose changes on the Cafe Potrait and its personnel.................................10
4.2 Plan the changes that will be managed in business.............................................................11
4.3 Monitor improvement in performance of business over the time........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
There are many different type of organizations that work towards gaining maximum
profit. In order to be better from others, firms aim at delivering customers with high quality
services so that they will be able to be better from others. It is important for the firm to
understand the need and requirement of customers and to develop products and services so that
customers can be satisfied (Jayawarna, Rouse and Kitching, 2013). Organizations have to
conduct market research so that need and requirement can be identified and services are
delivered as per requirement of customers. Present report is focused on Café Portrait, UK and
this falls under small scale enterprise. Cited firm aims at delivering their customers with high
quality services. This report covers analysis of business using comparative measures of
performance. Further, it covers ways in which existing performance could be maintained and
strengthened. Lastly, it also includes business plan to incorporate appropriate changes.
TASK 1
1.1 Profile of Café Portrait, identification of strength and weaknesses
There are different types of strategies that are applied by the business so that they can
develop positive perception within the mind of customers. Below given is the profile of Café
Portrait UK:
Table 1: Profile of the firm
Address Queen Street, Edinburgh EH2 1JD,
Total employees
working
24
Operated by Cafes by Heritage Portfolio
Annual Sales £4, 76, 000
Email [e-mail]
Phone Number [phone]
Within the organization, there are mission and vision that are set so that they will be able
to make employees understand the type of roles and responsibilities that has to be played by
them. In this context, below given are the mission and vision of Cafes by Heritage Portfolio Café
Portrait:
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Mission: Main focuses of the firm it to make sure that high quality services are delivered
to customers. Further, they aim at delivering hygienic food and healthy environment where
customers can enjoy and have their dishes. Further, they aim at delivering their products and
services at affordable price.
Vision: They focuses on creating stir fry, health and create brand value among customers
with their quality products. Their vision is to be the best coffee shop in UK.
As per the type of operations that are carried out the by the firm, there are certain set of strengths
and weakness that cited firm has and they are as follows:
Weaknesses:
 The rate of employee’s turnover is high. There are conditions in which workers have to
perform different type of roles at same time. This increases the work pressure and
employees fail to maintain the quality.
The waiting time that is done by customers is high when compared with other café. Customer
face problem in getting their meal ready on time (Lyon and Fernandez, 2012). Another reason
for slow services is due to lack of training to employees.
 Further, the size of place is too small and people have to wait for long so that they can get
their meal or dish. Due to this issue, it becomes difficult for the customers to get peaceful
environment.
 The complementary dishes that are provided to customers are of low quality and this
affects negatively towards customers satisfaction.
Strength:
 Customers have positive perception towards the quality of services that are delivered to
service users. This way, they are able to develop goodwill for the products and services
that are delivered.
 There are healthy cakes, coffee, meals and people are satisfied when the services that are
delivered to them.
There are services delivered in which birthday celebrations, family functions, etc. are organized
and the decorations are done by the firm (Stokes and Wilson, 2010).
 Special offers are provided to children’s and family. It includes discount offers and free
gifts.
 Providing complementary dished has helped in raising the customer’s preferences.
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 More focus is made of families and the offers are made so that family members can be
attracted.
1.2 Business analysis on measuring performance level
Performance of the firm can be measured with the help of financial and non-financial
data. Below given are the performances of Café Portrait:
Table 2: Profit made by Cafe Portrate
Year PAT(Profit
after tax
@20%)
(￡000)
PBT
(Profit
before tax)
(￡000)
PAT
(Profit
after tax)
(￡000)
PBT
(Profit
before tax)
(￡000)
2016 634 713 579 655
2015 530 643 445 568
2014 476 549 395 484
2013 421 477 331 432
2012 376 440 319 404
In accordance with the above table, it can be started that the rate of performance is
profitable. They are able to set up new targets and there is improvement in sales that can be
identified. There are other cafés that deliver their customers with similar type of product and
services. In this context, Lantana Café is one of the main competitor of Café Portrait. Below
given are the sale performances of each of these firms:
Table 3: Sales comparison of Lantana Cafe and Cafe Portrait
Year Cafe Portrait Lantana Cafe
2016 487 364
2015 443 331
2014 427 303
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2013 397 269
2012 304 257
As per the above given table, it can be stated that the performance of Café Portrait is
higher when compared with Lantana Café. Thus, it can be stated that the rate of customers that
prefer to make use of the services of Café portrait is higher.
Table 4: Employees preferences
Cafe Portrait Year ending 2016 Lantana Cafe
17.00% Job offers 11.00%
16 days Absenteeism 13 days
7.00% Staff turnover Rate 6.00%
74.00% Job satisfaction 79.00%
As per the above table, it can be stated that the rate of satisfaction among employees is
low. It is important for Café Portrait to take up appropriate steps so that they can raise the
satisfaction level of workers. Focusing on this area will enable to raise the level of sales and
profitability. On the other hand, the satisfaction level of employees at Lantana Café is high.
Absenteeism is also low and the employees leave the firm is low as well.
TASK 2
2.1 Appropriate actions to overcome the weaknesses
There is different type of steps that has to be taken so that the weakness that is faced by
Café Portrait can be solved (Malhotra and Temponi, 2010). When these areas are considered,
then it becomes favourable enough for the firm to raise their sales and profitability. Below given
are the strategies that should be taken by Café Portrait towards their weaknesses:
Satisfaction to employees: From the findings, it can be stated that employees are not
satisfied with the type of roles and responsibilities that are performed by them. In order to
overcome this, issue, strong recruitment system should be developed so that skills employees can
be identified (Stokes and Wilson, 2010). Further, it includes workers provide proper training and
development. It is found that employees feel under pressure when there are many tasks that are
to be performed by them at same time. With the help of training employees will be able to
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improve their performance level at positive manner. Further, it also identified that the waiting
time for the customers is high. It is important that all chef prepare the food and reduce the total
time that is taken. This way, the waiting time of customers can be reduced.
Peaceful environment: Customers prefer to have peaceful environment in which they can
enjoy their meal or coffee (Gronum, Verreynne and Kastelle, 2012). This is not possible at Café
Portrait as the total space is less. In overcome this issue, customers should not be allowed to
enter when there are no spaces left. When the place is crowded, then it becomes difficult for the
customers to get peaceful environment.
Improvement in complementary dishes: As it was discussed earlier the quality of dishes
that are provided to customers as complementary is not effective. In this context, it is important
for that quality of dishes should be maintained (Fassin, Van Rossem and Buelens, 2011). In order
to do this, chef need to understand the requirement of customers and take up appropriate steps so
that they will be able to maintain the quality of services. When the satisfaction level is high, then
it becomes favourable enough to raise the profitability level.
Research and survey: It is important that frequent research is conducted so that the need
and requirement of customers can be identified and proper steps are taken in which improvement
is made in products and services (Bellucci, Borisov and Zazzaro, 2010). The rate of competition
is high and so it requires to have frequent research and survey carried out so that the
requirements can be identified and competitive advantage can be attained.
2.2 Ways of maintaining and strengthening the performances
Companies focus on making sure that all the weaknesses that are identified can be
resolved. However, it is important that for growth to determine appropriate steps to be
considered so that the strengths can be maintained. Below given are the steps that can be taken to
main the strength of Café Portrait:
Improvement in technology: With time, there is different type of changes that has taken
place in relation with technology. These are made by the firms to deliver better or high quality
services to customers (Abor and Quartey, 2010). In this context, it is important that Café Portrait
make use of updated or new technology so that they are able to improve the quality of services
and products delivered to customers. Further, it also helps to reduce the rate of work that
employees have to perform. Moreover, employees should be provided with tools and
equipment’s so that they are able to manage their work and the rate of work load can be reduced.
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Adding up new dishes: In recent times, there are many changes identified in taste and
preference of customers. People prefer to taste dishes of different countries. In this context, cited
firm should provide their chef with training so that they are able to develop their skills in such a
way that dishes of other countries can be made (Basurto, Gelcich and Ostrom, 2013). However,
it is important that customer preference can be identified in which they are willing to have their
meal.
Motivation of employees: The rate of employee’s turnover is high and the people taking
leaves are also high. Due to this, the work pressure increases on other employees. Motivation is
an important aspects that has to be considered so that worker develops interest and willingness
for the roles that they perform (Agwu and Emeti, 2014). Apart from this, reward system should
be introduced so that there is competition developed among employees. When the rate of
motivation increases, then employees turnover and abseentism get reduced.
Healthy interaction: There are different types of issues that are faced by workers and they
do not share due to lack of trust and confidence. It is important for the management to have
healthy interaction with each of the workers so that they are able to develop trust (Devine-Wright
and Wiersma, 2013). This way, the issues faced by them can be identified and appropriate steps
to solve them can be considered.
2.3 Areas in which business can be expanded
In order to make expansion of business, there are different types of ways with the help of
which business can be expanded. With this respect, below given are the ways that can be
implemented by Café Portrait for the business expansion:
New location: In accordance with this type of strategy for business expansion includes
selection of a place away from the present location of firm (Roy, Donaldson and Kay, 2013).
This is done in order to reach customers easily and to develop strong customer base.
Diversification: This is focused on proving customers with new type of products and
services. Cited firm can focus on improving or changing the complementary dishes that are
provided to customers (Jayawarna, Rouse and Kitching, 2013). Further, it also includes to
conduct market research so that the dishes can be included as per preference of customers.
Global expansion: This is generally done when firm is able to earn huge profit so that
they can identify an appropriate market in which business can be expanded. However, in order
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market the taste and preference will be different and so proper research needs to be done so that
business can be expanded effectively.
Making use of social media: This is an effective form or source that is helpful enough to
connect with people (Buxton, 2013). Firm is able to have direct interaction with customers and
the problems that are faced can be identified.
Online delivery: As per this strategy, customers are provided with the opportunity to
make use of the services and products that are delivered at café. Customers have to go through to
website and place order to for the dishes that are willing to purchases (Lyon and Fernandez,
2012). This way, it will be effective enough to make the services reach to customers footsteps.
Among all these cited firm should focus on online delivery as this will enable to make the
customers to reach the services and products and effective manner. Further, cited firm can also
make use of establishing their business at new location. This will be favourable enough to
develop strong customer base and in raising the satisfaction level of customers (Thomä and
Bizer, 2013). The service users who are not able to reach physical store can be make use of
online services and this way the sales and profitability will increase.
TASK 3
3.1 Existing objectives and plan of the Cafe Portrait
To attract more and more customers, there are many different type of strategies that are
applied by Café Portrait so that they are able achieve their goals and objective in effective
manner. Below given are the objectives that are set by the firm to follow:
Understanding requirement of customers: Different people have diverse set of perception
and preference (Frey, Bayón and Totzek, 2013). It is important as per the objectives that are set
by the firm for employees to understand the requirement of customers and deliver them services
accordingly. This is possible when they are able to develop strong relation with customers and to
understand the needs that they have.
Employee’s retention: The rate of workers within the firm is high. When employees leave
the firm, then there are many losses that are faced. It is important to make sure that appropriate
steps are taken so that employees are motivated (Delcourt, Gremler and Van Birgelen, 2013).
When the rate of motivation is high, then it becomes favourable enough to retain employees.
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Innovation and creativity: It is essential for the firm to make time to time innovations so
that they can attract customers (Boyyes, 2015). When there are changes made in dishes,
appearance, etc., then it enables to develop positive perception within the mind of customers
towards the services and products that are delivered by the firm.
Increasing sales: They focus on understanding the requirement of customers and focus on
raising the satisfaction level of customers (Malthouse, Haenlein and Zhang, 2013). When
employees have proper understanding of the targets that they have to achieve them, they develop
strategies that enable to raise the performance level.
3.2 Revising business plans to incorporate appropriate changes
When firm is able to focus on their aim and objectives in effective manner, then it
becomes favourable enough to take up appropriate steps with the help of which the performance
can be maintained (Browning, Cook and Browning, 2016). With this respect, it is important that
SMART objective to be formed so that the plan that they are willing to attain can be achieved.
Below given are the smart objectives set by the firm:
Specific: Main focus of the business should be made on identifying a new location in
which business can be expanded. This way, it will be favourable enough to focus on the
attracting more and customers. Further another set of strategy that firm is willing to develop is in
relation with online delivery (Kumi, Owusu-Mensah and Winful, 2014). It will be helpful to
make the services and products reach to customers. This way, it can be stated that there are two
different type of areas that are focused. One of establishing the business at new location and
other one is providing services online.
Measurable: The strategies formed can be effectively measured. New location can be
selected in which business can be expanded and new employees can be hired who will be helpful
enough to support the firm to expand (Gu, Foster and Shang, 2016). Further, it consists of hiring
new employees who will be able to make delivery of the orders that are taken online. One of the
main focus is to be made on planning for the financial support all the activities that are set by the
business can be attained.
Achievable: Both the objectives that are set by the business can be achieved in effective
manner (Jayawarna, Rouse and Kitching, 2013). As there are many other states in UK in which
the business can be expanded and the goodwill of the firm will be favourable enough to make
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customers visit and make to make use of the services. However, it is important that are proper
plan made so that all the activities can be attained in effective manner.
Realistic: The rate of profitability attained is effective enough to expand their business at
new location. Further, the cost that is incurred for developing application through online is
favourable (Scozzari and Santarelli, 2014). This way it can be stated that the objectives that are
develop will help to make sure that appropriate steps are taken in which the activities for both the
objectives can be attained in effective manner.
Time bound: The total time that will be taken to establish the business at new location
will take up approximately 6 months’ time. On the other hand one month time will be taken to
develop services start through online services.
3.3 Action plan to implement the changes
In order to implement the plan in effective manner, it is important that certain
considerations are made with the help of which the objective that are set can be attained in
effective manner. Below given are the steps through which change can be implemented:
Understanding the condition: There are different types of tools that are helpful enough to
make proper analysis of the environment in which the firm is willing to make their business
expand (Malhotra and Temponi, 2010). In this context, it is important to make sure that
appropriate tools like SWOT, PESTLE, etc. are conducted and steps are to be taken can be
identified.
Support of employees: All the workers should be conveyed about the changes that the
firm is willing to implement. When they get to know about the same and they will develop
positive perception within their mind will be developed towards the firm (Stokes and Wilson,
2010). In all the activities that the firm is willing to implement includes activities so that step by
step they are able to achieve the goals. In order to attain them, it requires to have support of
employees so that the objectives can be achieved.
Understanding the issues: There are different types of issues that are identified when plan
that is to be implemented. In this context, it is important identify the barriers that can arise when
the plan is to be implemented (Gronum, Verreynne and Kastelle, 2012). In this context, it
requires to have key people selected who will coordinated with each other so that the goals and
objectives that are set can be attained in effective manner.
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Division of roles and responsibilities: All the employees should have proper
understanding for the type of roles that has to be played by them (Fassin, Van Rossem and
Buelens, 2011). When these aspects are properly considered, then it becomes favourable enough
from them to put on their full efforts to make sure that the objective can be achieved.
Development of strategies: All the plan that is to be implemented consists of making use
of appropriate strategies. With this respect, it is important to make proper plan are developed and
the strategies that are developed can be used effectively and efficiently.
Review and proper monitoring: It is important to make sure that proper steps are taken so
that management is able to determine the rate of performance (Bellucci, Borisov and Zazzaro,
2010). Further, it is also effective that performances of all the workers are properly made so that
any type of gap that occurs can be identified.
TASK 4
4.1 Impact of the propose changes on the Cafe Potrait and its personnel
The changes are inevitable under business and the changes can be bring only to conduct
significant operation and the changes sometimes, that been accept by its employees, owners and
managers and they used to work like that only as they like to do and will have to accept it with
open arms (Basurto, Gelcich and Ostrom, 2013). The certain positive changes bring by the
company for conducting it successful operations are as follows:
 Store opening: The key points in setting up of cafe portrait is its correct location so that
number of customers can reach down and enjoying the meal. The location also helps
down a cafe portrait in increasing its business and it gives an advantage to them so that
no competitor can beat him (Agwu and Emeti, 2014). Before opening any new cafe it
firstly decided the location where the large number of people are coming and enjoying
the meal and they essentially set up its business by considering out certain factors so that
large number of people can enjoy it.
 Online: It also facilitates the online facility so that large number of people can placing
there order online and cafe portrait also delivering the goods and services to the people at
the right time or the right place and so that consumer get there order and available at right
time. The well it infrastructure is there who maintain down its page properly so that there
customer don't have to face down the problem during placing down an order online and
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each and every individual job is different and each and every person working under this
to make the product successful by ensuring proper delivering to their user. People who
carries down IT services work is been responsible to maintain the page on regularly basis
and updated it properly (Devine-Wright and Wiersma, 2013). All the information CAN
be easily available to the customers who placing the order online.
4.2 Plan the changes that will be managed in business
 Set the right expectations: The Company should prepare the plan according to the
expectations of people so that people get what he wants and through that there
expectation will also be fulfilled (Roy, Donaldson and Kay, 2013). The company get
success not very easily and it is important for the leader and team to make sure and
setting the expectations in such a way that everyone will understand it.
 Build team and secure resources: The company should build down a team in such a way
that each and every individual is working effectively and efficiently to raise down the
objective and working in teams and work synergies by using optimum utilization of
resources.
 Communicate the plan: Once the marketing team is built it is important for the
management perspective that effective communication should have been made between
departments and team and it makes sure that each and every individual understands their
role and work accordingly as per implement plan and effort and contribute towards the
growth and success.
 Build timeline and tasks: Organisation make sure that the tasks which been done and
project which been prepared should essentially carry proper time (Jayawarna, Rouse and
Kitching, 2013). The project should essentially carry timeline and deadlines so that team
should work accordingly to that and the projects should be divided into smaller tasks and
for each task team is been prepared to complete it.
 Monitor and checking :the organisation should check there result and evaluate their
performances and also tells that what are the areas that are lacking behind and what are
the weakness and also guides them that how to overcome it and also motivates the team
towards the growth and success (Buxton, 2013).
Be willing to adapt: The Company should willing to adapt down the new technology and
changes to meet the demand of its customers.
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4.3 Monitor improvement in performance of business over the time
For the firm to make sure that they develop their business in effective manner and so as
to achieve the objectives set, it is important that there are activities developed so that the rate of
performance can be improved efficiently (Abor and Quartey, 2010). To implement the plan it
requires to have key people who can provide appropriate steps to form the activities that can
enables to attain the objectives. When this plan will be implemented, then the rate of sales and
profitability that were recorded will changes and it will increase. Strong customer base can be
developed and more customers will get to know about the type of services that are delivered by
the firm. When organization is able to develop a new branch, then the people who did not had
any type of information about the firm will also get to know and the simultaneously the
profitability will increase. On the other hand, when services and products will be delivered
online, then the people who were not able to reach the physical stores will also get to make use
of the services online (Basurto, Gelcich and Ostrom, 2013). This is an effective form that will
help to raise the profitability and increase in satisfaction level of customers. In order to attain the
objectives, below given are the plan that will be followed by Café Portrait:
Table 5: Gantt Chart
Activities/Week 1 2 3 4 5 6 7 8 9 10
Talk to suppliers
Collect Facts
Market situation
analysis
Pooling of Funds
Application of
strategies
Installation of new
assets
Initiate the project
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Importing of quality
and variety coffee
beans
Employee training
Monitoring
CONCLUSION
In accordance with the analysis made, it can be stated that companies focus on gaining
maximum profit. Further, it includes proper analysis made in which research is conducted so that
the areas in which improvement is to be made can be identified. In order to make the business
expand, it required to have understanding of customer’s preferences. Further, it requires to have
proper support from the side of workers so that all the plan that the management is willing to
implement can be enacted. Apart from this, workers should be motivated so that they will be able
to develop interest and willingness for the type work that has to be performed by them. There are
many reasons due to which workers leave the firm. Among which one of the main reason
identified is lack of training and development. Employees should be properly monitored so that
the areas in which improvement is required can be identified. As per the findings made, workers
should be provided with training so that they are able to develop their skills and capabilities in
effective manner.
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