Impact of Business Strategy on SMEs

This assignment explores the factors influencing the success of small and medium-sized enterprises (SMEs). It examines the impact of business strategy, owner-manager characteristics, and market orientation on SME performance. The analysis draws upon a range of academic sources, including journals and books, to provide insights into best practices for successful SME management.

Small Business
Enterprises

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Strengths, weaknesses, structure, mission and goals of the small business enterprise....3
1.2 Analysis of business using comparative measures of performance.................................5
TASK 2............................................................................................................................................5
2.1 Recommendation and justification to overcome the identified weaknesses in business..5
2.2 Ways in which existing performance could be maintained and strengthened..................6
2.3 Recommendations for the expansion of business.............................................................6
TASK 3 ...........................................................................................................................................7
3.1 Assessment of existing business objectives and plans.....................................................7
3.2 Revise business plans to incorporate appropriate changes...............................................8
3.3 Prepare an action plan to implement the changes............................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on the business and its personnel......................................10
4.2 How the changes will be managed in business..............................................................11
4.3 Monitor improvements in performance of business over a given timescale..................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
In the modern time, small business enterprises are important at the small level of
businesses. Small business enterprise of Unicorn company is that enterprise in which small
number of employees are works and does not have high sales on the products and services. The
Unicorn company is that company which provides the grocery items to their existing and new
customers. Present report contain all relevant information of small business enterprises likes,
about the small business enterprise and its strengths and weaknesses. What types of comparative
measures of performance business using and the ways in which existing performance could be
maintained and in which area, business could be expanded. It has been also mentioned about the
objectives and plans of existing businesses and business plan to incorporate appropriate changes,
action plan business need to implement for changes and changes will be managed in business
and also explained about the monitor improvements in performance of the Unicorn company.
TASK 1
1.1 Strengths, weaknesses, structure, mission and goals of the small business enterprise
The unicorn company is one of the popular small business enterprises in UK. It is a type
of grocery company which -provides the grocery items to their consumers. It is the private
technology and present valuation of the 1 billion dollar. There are some strengths and
weaknesses of the small business enterprise. They are given below:
Strength of small business enterprise: The organisation need to implement the effective strength
for their company and consumers. The strengths are: Direct sell out the product: The one of strength of small business enterprise is to provide
the goods and services directly to their existing and new customers. Direct sell of product
is one of important strength for the small business enterprise.

 Greater flexibility: Flexibility is also one of the strength of any kind of the organisation.
If small business enterprises have flexibility then in that case, they will not stop for the
operation without any problem.
Weaknesses of small business enterprise: Weaknesses are the internal factor of any kind of the
organisation and it affect the business internally. There are certain weaknesses of the small
business enterprises (Burns, 2010). They are followings: High direct cost: High direct cost is one of the weakness of the small business enterprise
because in the case of the high direct cost, the small business enterprise is not able to
purchase the raw materials and machinery etc. Lack of credibility: In case of the credibility, the small type of business face many
problem related to their goods and services because, the customers are well known about
the large company's product then in that case, they do not purchase any kind of the
product from small business enterprise.
 Financial limitation: In case of the financial limitation, small business enterprises are not
able to produce the large production of product because they has not sufficient finance for
large number of production.
Structure of Unicorn grocery company:
Functional structure: This structure consists different activities like, coordination, task
allocation and supervision and helps in examine that how the enterprise can performs. There are
various organisational functions such as marketing, production, accounting and human resources.
With help of this, an business producer can provide similar product and services at low cost.
Scope: Unicorn grocery provides fresh, dried and processed drink and food and focus on
the fair trade and local sourcing as well as grocery items, body care and household items. It is
one of the largest groceries in UK and its annual turnover approx 7 million.
Mission: The mission of Unicorn grocery is to provide affordable and natural ingredients
to their local community members. The principles laid by unicorn must be considered carefully
in order to achieve the mission.
Goals: Organisation have to expand their business in international market for selling
different products and services at a reasonable price so that they can earn maximum revenue.

1.2 Analysis of business using comparative measures of performance
The comparative measures of performance are important for identifying corporate
strategies. there are many ways in which the performance can be measured they are follows Checking progress against objectives: Every organisation need to identify their
objectives for evaluating the progress of enterprise. The business should have check their
progress against their target. Reviewing financial target: For analysing the performance, organisation needs to
appraise the financial target of organisation. Business needs to talk with accountant for
analysing the poor performance of organisation. The unicorn company need to
revaluation of financial target. SWOT analysis: With the help of SWOT analysis, an organisation is able to evaluate its
performance. SWOT analysis represents the strengths, weaknesses, opportunities and
threats of organisation. Strengths and weaknesses are the internal factors of business as
well as opportunities and threats are the external factors of organisation. Evaluate staff levels and performance: The organisation needs to evaluation of the
performance of the unicorn company. If the efficiency of staff is low then in that case, the
organisation is not able to assessing the level and performance of their staff. In this case,
business is required to make effective changes for achieving higher profitability (Bridge
and O'Neill, 2012).
 Encourage staff feedback: Any kind of organisation or business needs to encourage their
staff to give feedback. The staff feedback is important for measuring the performance of
the staff. Business is responsible for the effective performance of staff. Organisation
needs to listen to staff problems and make them sure that issue will be fulfilled for
improving their performance (Curran and Storey, 2016).
TASK 2
2.1 Recommendation and justification to overcome the identified weaknesses in business
Weaknesses makes the enterprise ineffective and unsuccessful. It is very important for
every firm identify its weakness to take remedial action to decrease its effect on organisational
effectiveness.

The weaknesses are major problem of firm for surviving in market place. For consumer’s
attractions, business needs to provide quality and branded products along with effective services
to their consumers. Identifies weaknesses helps in increasing the performance of business. For
the development of brand image, organisation should implement strong market policies.
Business marketing can be done with the social media, newspapers, magazines and television
broadcasting. Organisation can use certain types of principles and technologies for offering
different types of products and services and can get effective results in terms of achieving set
goals and objectives effectually. Effective and appropriate SWOT analysis will help the business
to overcome from its weaknesses.
2.2 Ways in which existing performance could be maintained and strengthened
Unicorn needs to implement the effective techniques and strategies for maintaining
performance of organisation. With the help of strategy, organisation can improve the quality of
goods and services. There are some ways in which business will attract their customers for the
products and services. They are as follows: Assess business situation: Organisation can evaluate business situation with helps of
some activities such as collect data from existing processes, analyse these data for
ensuring correct information, determine problems, evaluate effects and assign
responsibilities and roles for the improvement of process. Set clear goals: For maintaining the strength, an organisation can set their goals with
helps of certain steps, be specific, break the goal down,track firms progress, acknowledge
of weaknesses, be accountable and making sure. Identify strategies for achieving business goals: For achieving effective business goals,
they need to examine innovative strategies such as learn from experience, create a
deadline and develop milestones. Develop a plan for implementing business strategies: An organisation need to develop
an effective plan for implementation appropriate strategies because it could be maintain
business performance. The plan follows different steps such as, evaluate strategic plan,
create a vision for implementing strategy, select meetings to discuss progress, involve
upper management.
 Measure the results: Every organisation need to evaluate the result of all activities of
organisation because it helps in improving the results of business operations.

2.3 Recommendations for the expansion of business
There are some recommendations for the expansion of business. They are given as below: Add new products and services: For the expansion, business needs to implement new and
innovative products and services for all types of customers. The recommendation is
important for the expansion of business. Effective and quality products and services are
important for satisfying the needs and wants of consumers. If organisation is able to
satisfy their consumers, in that case, they can make profit for their products and services. Sell more products to existing customers: This recommendation is also important for the
expansion of business because existing consumers can increase the sale of business. So,
organisation needs to provide more quality as well as branded products and services to
their regular customers.
 Target new customer markets: This help the firm in identifying new customers and by
serving them enterprise can capture a greater market share.
3.1 Assessment of existing business objectives and plans
There are certain steps for making an effective business plan. The business plan as
follows: Company analysis: Firstly the company analysis is important for making the effective
business plan. In case of the company analysis, which type of product a business need to
offer for their new and existing customers. Industry analysis: After the company analysis, the business need to analysis the
industry. The business is responsible for measuring the market and how the market is
changing according to the time. Competitive analysis: It is the next step of making the effective business plan. In case of
the competitive analysis, the business need to identify their competitors and should
identify their strengths and weaknesses. Customer analysis: After the competitive analysis, the business need to identify their
target customers and should identify their needs and wants for the products and services. Marketing plan: Marketing plan is the next step of business plan. It is the effective plan
for reaching at the target customers and uses different channels for marketing of thejldi
products and services.

 Management team: After the marketing plan, the management team is the next step of
the business plan. The management team is effective for executing the opportunities for
different kind of employees. Operations plan: The operation plan is important for making the effective business plan
because it is helpful for taking the action about the business plan.
 Financial plan: Financial plan is the last plan of business plan and it is important for
any kind of the organisation. How much financing is required for build a effective
company. So financial plan play an important role in making the business plan.
(Blackburn, Hart and Wainwright, 2013).
3.2 Revise business plans to incorporate appropriate changes
Effective developing plan is very important for any kind of organisation because it is
helpful for providing more and more products and services. The effective business plan provides
the different steps for managing the effective business and these all steps are important for
changing the business plan. The first step is the company analysis in which it provides the new
products and services to their customers and it is useful for changing the business plan. The next
step is the industry analysis, in which it is helpful for measuring the performance of the market
and how the market is changing according to the changing environment. After analysing the
industry, the business need to identify the competitors for their products and services and it is
helpful for changing the business plan. For changing in business plan, the organisation need to
identify their target customers and should identify the customers needs and wants. After the
customers analysis, the business need to implement the marketing plan for changes in plan of the
business. After analysing the marketing plan, business need to implement the effective
management team for managing the all activities of the business. So, the management team is
important for changing in the business plan. After managing the management plan, the operation
plan is important for changing in the business plan. The operation plan is play an important role
for taking the effective action for the development of the effective business plan. The last plan of
the business plan is the financial plan. The financial plan is very important for changing in the
effective business plan. So, these all steps is important for making the effective business plan
(Islam and et. al., 2011).

3.3 Prepare an action plan to implement the changes
There are the some certain stages of action plan for implementing the changes. They are
as follows: Determine goals: It is the first step for implementing the action plan for the changes.
Firstly, the business need to determine the goals and objectives of the organisation and
after that they need to making the decision for the changes in the organisation. Assess institutional rules and tools: After determining the goals, the business need to
evaluate the institutional rules and tools for the effective action plan. The institutional
rules and tools can be integrated into the action plan. Develop an action plan: It is the next step for implementing an effective action plan.
Firstly, the business should develop an effective plan for taking the action for the
activities of the business. Implement an action plan: after these steps, business should implement an effective
action plan for the changes in the business. Effective action plan is helpful for providing
the effective changes in the activities of the business.
 Measure and evaluate: After implementing an effective action plan, the business need to
measure and evaluate this active plan for the effective changes. So, it is the last step of
implementing an effective action plan for the changes in the business. (Terziovski,
2010).

TASK 4
4.1 Impact of proposed changes on the business and its personnel
There are two impacts of changes in business, they are, positive changes and negative
changes. The positive impact of change in business are as follows: New opportunities: It is helpful for all kind of employees who are working in the
organisation because the opportunities are useful for motivating the employees. So, the
new opportunities are important for the positive impact. Encouraging innovation: It is also the positive impact of change in the business because
it is helpful for encouraging the innovation at business level. An effective product and
ideas are effective for success of a small business.
 Increased efficiency: It is also the positive impact of change in the business place. The
effective change is able to maximise the efficiency and effectiveness of work process.
The effective work processes are important for satisfaction of the employees as well as
consumers.
Negative impact of change in business: There are also certain negative impact of change in
business, they are as follows:

 Mental stress: It is the negative impact of change in the business because the mental
stress increases the problems and risk at the business level. So, it is the one cause of
change in the business.
 Loss of loyalty: The loss of loyalty is also one of the negative impact of change in the
business. In the modern time, some of the businesses look at the cast saving in that case
they do not encourage their employees for the work. Loss of loyalty decreases the
performance of the employees (El-Gohary, 2012).
4.2 How the changes will be managed in business
Sometimes the changes is very important at the level of business because the changes
provides the effective goals and objectives to development of the business but sometimes the
changes are not effective at the business level because in the business, there are many employees
who is working in the business, they are not ready for the changes according to the environment.
In case of the changes, feeling of fear, power loss of control, unknowns and other changes the
people are not comfortable with the changes (Forsman, 2011).
Change will be managed by following steps:
 Create urgency
 Form a urgency coalition
 Create a vision for change
 Communicate the vision
 Remove obstacles
 Create short term wins
 Build on the change
 Anchor the changes in corporate culture
4.3 Monitor improvements in performance of business over a given timescale
The continuously monitor improvements are important for developing the performance of
the business. Improving performance is the long term process for the development of the

business. Sometimes the improvement in the performance is important for satisfaction of the
consumers of the business. The monitoring improvements are important when the consumers are
loving about different quality and branded products.
For monitoring the improvements the enterprise can follow the following process:
 Business objectives
 Scan the environment
 Formulate business plan
 Implement the business plan
 Monitor and control
 Evaluate
 New objectives
CONCLUSION
In this report, it has been concluded that Unicorn is the small business enterprise in UK
which provides grocery products to their customers. In the modern time, the small business
enterprise faces many problems and difficulties for the success. In case of small business
enterprise, they need to implement new and effective plan for the development of successful
business. Small business enterprise is important for the short period of time and it is effective for
reducing the risk about different products and services.

REFERENCES
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