Small Business Growth Strategies

This assignment delves into the key strategies employed by small businesses to foster growth and success. It examines various aspects including innovation adoption, effective management practices, efficient resource allocation, and leveraging technology. The analysis draws upon relevant academic literature and real-world examples to provide insights into best practices for small business development.

SMALL BUSINESS
ENTERPRISES

Table of Content
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Produce a business profile as well as its weakness and strengths.........................................1
1.2 Comparative measurement of Cafe Finix Coffee shop ......................................................2
TASK 2............................................................................................................................................5
2.1 Appropriate actions to overcome identified weaknesses......................................................5
2.2 Examine some ways to manage existing performance.........................................................5
2.3 Areas of expansion of business.............................................................................................6
TASK 3............................................................................................................................................7
3.1 Assessment of objectives and plans......................................................................................7
3.2 Revise business plan for appropriate changes.......................................................................8
3.3 Action plan for implementing changes.................................................................................8
TASK 4............................................................................................................................................9
4.1 Impact of proposed changes on business and its employees.................................................9
4.2 Concept of change management.........................................................................................10
4.3 Monitor the improvements in performance.........................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Small business entities play a very vital role in growth and development of different
communities. ... They are liable for providing various job opportunities and innovative products
to the people so as to gain maximum sales and profitability. In addition, small businesses are
established so as to provide new and innovative products to customers at reasonable prices. In
UK, there are several SME's which are able to supply raw materials to large business
organisation. Airport Cafe is the chosen organisation in this present report, it is one of the
famous restaurant in UK by having a growth rate of 20% every year. The main objective of this
business is to expand itself for long term period in target market. The business plan of Airport
Cafe is emphasised on getting high market growth and success; its annual turnover is £380,000
and profits after tax is 14%. Apart from this, present report will be strength and weaknesses of
the smallthe small business enterprises and also define some areas in which a firm can expand
itself. In addition managers need to prepare certain objectives while developing a business plan.
TASK 1
1.1 Produce a business profile as well as its weakness and strengths
Mentioned restaurant is a famous shop that provide different taste intaste in their coffees
and other beverages products (Altman and et. al., 2010). The main aim of this company is to
give best quality goods to their potential and target buyers in order to fulfil satisfaction level.
Their issue as well as paid capital is approx 25000 billion . They have minimum number of
workers in their organisation so it is called small scale.
Company profile:
Profile Description
Name Airport Cafe
Food items Tea, coffee and other bevereages
CEO Mr and Mrs. Smith.
Address Airside Heathrow Terminal 3.
Website www.airportcafe.co.uk
Capital £380000
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Number of stores 12 members
Opening hours 11am to 10 pm
SWOT Analysis: It is one of the important tool and techniques of every business, because
with the use of this an enterprise can identify their strengths, weaknesses, opportunities and
threats (Aremu and Adeyemi, 2011).
Strength Weakness
 Global Brand
 Product Diversification
 Profitable enterprise
 Sound financial institution
 Buyers loyalty
 Favourable forex market
 Unique product
 Significant existence in market place
 Efficiency of product cost control
 Collaborates with foundation
 Leasing cost or high rentalIntense
competition Known only coffee
products
 Business owned stores never feasible
 High cost Coffee
 Lack of variety in Tea or coffee
 lack of scale
Threats Opportunities
 Favourable government rules and
policies
 Growing buyer’s product market
 Increasing affluent class
 Franchising opportunities
 Different number of food options such
as lunch, breakfast, partnership,
corporates contract, licensing in order
to try out innovative market.
 Rise in coffee cost and dairy items
 Increasing real estate cost
 Political opposition
 Competitors growth
 Primary product supply
 Cheaper options present in market
 Rules and regulation help company in
identify their opportunities.
1.2 Comparative measurement of Cafe FinixCafe Finix Coffee shop
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Cited organisation use various tools and techniques in their business to analyse its
performance .performance. There are several methods in identifying the financial condition of
Airport Cafe which are as follows:
P&L account for the year 30 April 2016 to 2017
Particular 2015
£
2016
£
Sales
Cost of good sales
150,000
50,000
1,00,000
20,000
Gross profit
Overheads and other expanses
50000
20,000
80000
30,000
Net profit 30000 50000
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Balance sheet of the company in year 30 April 2016 to 30 April 2017
Particulars 2016
£
2016
£
2017
£
2017
£
Fixed assets:
Current Assets:
 Cash
 Debtors
 Stock
5,000
10, 000
1,000
20,000
16000
25000
44000
19,000
20,000
5000
TOTAL 16000 36000 69000 44000
Current liabilities
 Creditors
 Bank
 Outstandi
ng.
Expanses
20000
10000
6000
23,000
20,000
1000
TOTAL 36000 44,000
Working capital 12000 19000
Net asset 24000 25000
Supported by
capital
Beginning capital
Add: Net profit
20,000
44,000
25,000
50,000
Less drawings 23000 23000
Closing capital 21000 27000
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As per above mention table that determining the different tools and techniques such as
balanceas balance sheet and profits & loss account of the company. According to this business
grow in year 2017 in comparison 2016. net profit will increase in amount 20000. So, it is good
for the organisation to attain large number of productivity and profitability in a effective manner.
TASK 2
2.1 Appropriate actions to overcome identified weaknesses
Every business enterprise has some kind of weakness and to execute business operations
in an effective manner and to get competitive advantage it is very essential for every organisation
to remove its weakness (Jones and Iredale, 2010). One of the main weakness of caffee finix
coffee shop is that rent of shop is very high which indirectly increase the cost of its final products
and services. This weakness of firm can be remove by create huge amount of profits. The
location in which coffee shop is located is very famous and is in middle of the city so it has the
ability to attract large number of customers. Further in case of large number of customers this
will create a problem like parking problem and to remove this owner of coffee hop can buy small
numbers of bays.
To fulfil the aim of attract large number of customerscustomer’s coffee shop can increase
the variety of its products. Due to work in a hospitality based industry one of the main problem
face by enterprise is storage of raw materials and its spoilage. To avoid this employee can use the
material which come first in firm so expiry of raw materials can be maintain. To maintain the
quality of its products firm should buy raw materials form its trusted suppliers (Actions for
improving weakness, 2017). In this way owner of coffee hop can remove the weakness and the
same time can increase the number of its customers and amount of profit.
2.2 Examine some ways to manage existing performance
In this competitive era, every business wants to grow and diversify in global environment
but due to the impact of some competitors, this could not be possible. This will affect their
current market position and success. Therefore, in order to compete with external rivals
effectively, entrepreneurs need to find out certain ways through which Airport Cafe can maintain
their existing performance, such are described as below: -
Providing training and development assistance
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Well qualified and skilled employees are the main reason behind growth and vitality of a
firm. In this purpose, managers need to timely organise certain training and educational
programmes so as to boost up their current skills and knowledge (Gronum, Verreynne and
Kastelle, 2012). It will be helpful in encouraging and motivating employees as they can produce
something new for their target and potential buyers. In order to attain and retain employees for
long term period, employers of small business entities, i.e. Airport Cafe spend a lot of amount in
order to provide training and development assistance to their employees. This will be
contributecontributing in raising productivity level of workers and also improve their current
skills and knowledge towards a particular topic.
Conduct a market research -
The main aim of market research is to recognise customers’ needs and wants so as to
fulfil their needs and wants in an effective manner. Along with this, it is also accessible in
getting important information about competitors' marketing strategies and their strength as well.
Hence, if a small business entity will be conducted an exhausted research then it can easily
achieve market growth and expansion in a minimum time frame. Owners of Airport Cafe needs
to emphasis on recognise customers need and wants to satisfy them in adequate manner. Along
with this, they need to develop impressive marketing strategies and policies so as to sustain
higher competitive advantage.
Improving the quality of products
Now these days, customers are willing to purchase qualitativepurchase qualitative and
branded products. So that, if a small business entity wants to grow, then it is necessary for it to
boost the quality of its services. For this purpose, it needs to use effective raw materials and
machinery. This will be also increasing production level. By implementing reward system,
Airport cafe can easily achieve improve the performance level of its employees. It will also
assistive in attaining and retaining them for long period within business entity.
2.3 Areas of expansion of business
Airport Cafe is an emerging coffee shop. It caters the need of cafe addicts in a
contemporary manner. It has managed to garner the attention of the of cafe lovers in the London.
The areas of operation of this enterprise is confined to a small scale and they are looking to
expand their operations in other parts of Britain. The major strategies to be followed while
keeping in mind the expansion is:
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Organic Growth:
It is one of the contemporary term for expansion of business by increasing the output,
improving customer base and developing new product. In the case of Airport CafeCafe, the
enterprise can increase the output or can cover a bigger market segment by introducing various
sales promotional techniques and serving quality goods to have a positive word of mouth. The
company can expand its operations in serving Italian dishes or some snacks to target more people
(Strategies to improve strategies, 2017).
Strategic alliance
Strategic alliance is a situation when two parties come together for the purpose of doing
business. The alliance can be formed by the acquisition and merger (Strategies to improve
strategies, 2017). Airport Cafe in order to expand their operation should either merge its
operation with some enterprise catering the same department or should acquire a company. The
alliance can help achieve organisational efficiencies and can help cover a bigger market segment
(Eid and El-Gohary, 2013.).
Franchising
It is one of the modern methods of expanding company's operations. The leading
restaurant companies are preferring this expansion strategy amongst all. Franchising consist of
the owner giving rights to perform operation under the name of the company in return of licence
fees. Airport Cafe can opt for this strategy as the amount of risk in this is comparatively low. But
the entrepreneur has to give up control over the upcoming franchisee.
TASK 3
3.1 Assessment of objectives and plans
The business objective plays a crucial part in the organisation. It equips the stakeholders
with a sense of vision. The defines set of objectives help aan organisation in achieving it
effectively. The objectives of Airport Cafe isare:
 Increase in the sales volume
 Development of complimentary goods
 operation efficiency
 Enhance the profit margin
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These are the certain specified set of objectives which the business wishes to achieve in a
specified period of time. In order to achieve an objective enterprise needs to formulate a business
plan. A business plan defines the set of strategies which help in fulfilment of objectives. Steps in
business plan is as follows: Idea Generation: the first step in formulating a business plan is to brainstorm and come
up with an idea that fulfils the objectives effectively and efficiently. Market research: Marketing team in this step conducts a market research regarding the
suitability of the market with the current trend and analyses the profitability from the
same. Constructing Marketing strategy: A plan is incomplete without an effective marketing
strategy along with the business plan (Ebert and et. al., 2014). A strategy helps a business
in fulfilling its objectives. Financial Analysis: All the objectives and plan are worthless if an enterprise is not
financially strong. A strong financial position can facilitate access to the latest technology
regarding production of goods and services.
 Formulating plan: the last step focuses on formulation of plan keeping in mind the
objectives and resources of the company.
3.2 Revise business plan for appropriate changes
Marketing strategy of coffee shop if totally focus to attract more number of customers
with retain the existing ones. Company make a marketing plan so large number of customers can
spend their time in coffee shop and visit again and again (Lambert and Davidson, 2013). Because
spending more time in coffee shop will increase the sale of its products. To achieve marketing
objectives it is very essential for company tocompany to establish a large number of customers
base so they can remain loyal and buy the products and services of firm. Loyal customers give
referrals to other individuals which directly increase the sale of firm's products.
Firm offer aan ambient environment to its customers and favour them to spend more time
in coffee shop. Firm not only offer a perfect coffee to its clients but do efforts to help them to
spend their leisure time there. Organisation use high quality sofa and table along with this, light
music and dimmed light help customer to ease out their stress (Burrows, 2015). Coffee shop is a
right place to do conversations and this is one of the main reason why individuals choose this.
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To increase effectiveness of services offer to customers firm adopt a chain mechanism in
which two employeetwo employee serve a customer from which one get engage in the process
of prepare orders while the other one participate and do take care of sales transactions (Malhotra
and Temponi, 2010).
3.3 Action plan for implement changes
Implement changes require huge amount of efforts. Main steps included in the process of
implement change can be understood by the following points: Market analysis: This is the first part include in the process of implement changes. This
basically include the analysis of individuals included in the locality in which business is
operating (Nga and Shamuganathan, 2010). Under this business basically focus on two
market one on the local people and other on the who who come to that areas with some
king of purpose like shopping and other. Market segmentation: Coffee shop implement its segmentation as per the various people
lives in that locality. Marketing activity of firm is totally focus on the students and
facilities from different universities. Further marketing segmentation of coffee shop is
focus on the teachers and on working women.
 Strategy for target market or segment: Specific market strategy is requirerequiring by
every enterprise to formulate a unique customers base and top satisfy their needs. This
help filmfilms to ensure the quality and great taste of its coffee with offering a relaxing
environment to its clients where they can chill out. In segmentation of coffee shop
students of schools and universities were focused that's why development of various
products of coffee shop done on this basis (Olson and Staley, 2012). Analysis of market
indicates that students are attracted towards better quality and taste of coffee at lower
prices. To increase the number of students in coffee shop, owner can increase the variety
of its products.
TASK 4
4.1 Impact of proposed changes on business and its employees
Any kind of change whether little or big affecteffect the activities of business and its
personnel in various ways. To achieve set objectives of change and for development of business
and its activities it is very essential for manager tomanager to give proper consideration on each
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and every factor. All this help business enterprise to achieve set objectives. Due to fast changing
business environment and in needs of customerscustomer’s change become an essential part for
the every business organisation. For this managers can introduce changes in the production
process, policies, strategies, or on any otherany other element (Rae, 2010.). There are number of
external factors which exist in the business environment and affect the commercial activities of
an enterprise. Identification of those factors is very helpful for an organisation as this help
manager in decide future activities. Main factors which affectwhich affect the activities of an
organisation include economic, political, legal, social, technological and environmental. For this
managers of coffee shop can use the tool called PESTLE. With the help of this they can identify
how firm can effectively execute its operations in an effective way and can achieve its set
objectives in situation of changing environment (Schaper And et.al., 2014, 2014). If firm fail to
adapt changes that this not only decrease the sale of its products but at the same time negatively
hamper the image of company so changes must be implement by firm at right time. Proper
training and resources must be offer to employees so they can easily leranlearn the new method
of execute a new process.
4.2 Concept of change management
While developing an action plan, it is essential for managers to implement certain
changes so as to achieve their goals and objectives in a certain time period. In addition, managers
have to define some areas in which they easily expand their business activities and operations.
Apart from this, change management relates with managing various modifications within
workplace. It is done after creating as well as executing an action plan for completion of all
practices as per their time schedule. Top management and other senior authorities of Airport
Cafe are responsible in order to prepare an action plan with an aim of resolving all hidden issues
and problems. For example- the main weaknesses of small businesses are lack of financial issues.
In thisIn this perspective the firm needs to identify different sources where it can
generatesgenerate funds, i.e. creditors, shareholders, bank loans etc.
On the other hand, in order to managing as well as organising changes at workplace,
managers can also adopt the model of change management, which is given by Kotter's. Below
mentioned the eight stages of Kotter's change management model: -
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(Source: Kotter's change management model, 2017
 The foremost step of change management is, identify the urgency of tasks and activities.
In other words, managers are required to determine those sections or departments in
which changes are essential. For instance- in order to gain market growth, Airport Cafe is
required to improve the quality of its products and services.
 Form a powerful coalition in order to establish an effective project team which is liable to
implement changes (Burns, 2010). Because, group members are assistive in making
efforts and they also encourage other employees as they can cooperate and adopt a
constructive approach towards decision making.
 In third stage, a clear vision and mission should be created which aan organisational
wants to accomplish in a certain time schedule. For example- Business owners of Airport
cafe need to having clear mission and vision so as firm can achieve its goals and
objectives. The main motive if Airport cafe is to become customers' choice in UK's local
market.
 Afterwards, the overall vision havehas to be communicated across the organisation. It
generategenerates supports and must be acceptable by other employees as well as entire
association also.
 In addition, managers also needsneed to be tried to remove all barriers and obstacles in
business organisation. It will help in increasing the implementation of certain changes
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Illustration 1: Change management model

and modifications. As a small business entity, Airport cafe is facing various issues and
problems therefore managers need to develop effective strategies and policies in order to
overcome with all these barriers in order to perform effectively in global environment.
 In this stage, employers are required to create short term goals and objectives for small
time frame. Airport cafe has to decide certain short term goals. In other words, they need
to set a time framework for every activity and task so as to complete them before given
time period.
 After that, improvements are consolidated and managers are tendtending towards making
another action plan. In addition, change is a continuous process it would not be stopped
therefore, managers always have to focus on developing effective plans and policies.
4.3 Monitor the improvements in performance
It is essential for employers to analyse the performance of action plan whether or not it is
able to achieve business goals and objectives. There are certain tools comparative results,
behaviour, balance scorecards, key performance indicators, 360 degree feedbacks etc. But the
most appropriate tool for Airport Cafe is balance scorecard; it is helpful in improving and
determining business activities so as to measure the performance of employees in an effective
manner (Bridge and O'Neill, 2012). If decision makers will be continuecontinuing mapping
performance level then they can easily achieve all targets and aims in an adequate manner. In the
concept of change management, managers are required to monitor the progress of their whether
or not it is working properly. Owners of Airport cafe, should have to regulate effective tools and
techniques through which they can easily gain higher market growth. Balance scorecard is one of
the important tool through which managers can determine workersworker’s performance and
make essemtial changes if required.
CONCLUSION
From the above mentioned report, it has been summarized thatsummarized that small
businesses are liable in order to increase economic growth of UK. . The main strength of SME's
i.e. Airport Cafe; - it has new and unique products whereas its weakness is lack of financial
resources. Apart from this, in order to gain high sales and profitability, managers have to conduct
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market research and provide training and development assistance to all employment. The report
entails that business objectives are very much necessary while making a business plan. Changes
has put a huge impact on entire association as well as human resources.
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