Factors Affecting Small Business Success

This assignment delves into the multifaceted factors that contribute to the success of Small & Medium Enterprises (SMEs) around the world. It requires an examination of various internal and external influences, encompassing economic conditions, social trends, technological advancements, and government policies. The analysis should consider both positive and negative aspects impacting SME growth and sustainability.

Small business
management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1) Eligibility of Just eat as a small business................................................................................1
2) Background of an organization and its competition within sector.........................................2
3) Business portfolio on the company from three topics............................................................4
4) Recommendations and implication for business within its sector..........................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In today’s innovative world number of companies are emerging with creative ideas for
gaining maximum advantageous by satisfying clients needs or demands. However, numerous of
small business are identified at marketplace with distinct motive and managing their business
operations in more appropriate manner (Ackermann, 2012) . Just eat is small business entity
engaged in offering online food services to desired consumers and trying to create positive
relations with them in a minimum duration. Therefore, assignment is going to highlight the
factors which shows that Just eat is small firm and ability to compete within food sector. Along
with this, project is also focussing on various necessary elements of company in order to acquire
in depth knowledge about the association. Moreover, report is showing an appropriate portfolio
on three major subject area that must be covered while running a firm. At last, it is essential to
suggest some suitable corrective path for company to make necessary changes as per situation
demand or needs.
TASK
1) Eligibility of Just eat as a small business
Just eat is small firm by having their limited branches in UK in order to generate
maximum revenue by satisfying desires of domestic as well as foreign users. In fact, company is
totally qualified or eligible for considering as a small business because they are not having
maximum outlets across the international boundaries. Along with this nor engaged with any
foreign organization which shows that they are limited liabilities and situated in local arenas.
Additionally, it has been understood that company is dealing in a local region across the UK but
trying to expand their business in various other geographical area with distinctive motive. Small
business are facing numerous of problems while dealing in marketplace due to fluctuation in
several other internal and external factors (Blackburn, Hart and Wainwright, 2013) . Moreover,
competitors are also emerging at market with number of objectives such as; gaining more or
more benefits, making positive relations with clients, focus on existing marketing policies,
strategies and so on. Therefore, it has been understood that Just eat is must going through several
complicated phases which might occurred due to fluctuation in few major elements. It means, by
analysing necessary facts or figures it is identified that anything can happen such as; Just eat is
suitable as a small business but at the same also not due to fluctuating elements.
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2) Background of an organization and its competition within sector
Just Eat is an online food order and delivery service, which acts as a third party between
independent food outlets and customers, it's headquarter is situated in the United Kingdom and
operates in almost countries (Bridge and O'Neill, 2012) . The purpose to choose this firm is, it's a
small business company which offers a platform to allow its customers to search for local take
out restaurants to place online orders and select a location for delivery. The firm was established
by five Danish entrepreneurs one of them was Jesper Buch who founded Just Eat in Denmark in
the year 2000 and services began in the year 2001. In 2005 a technology expert bought out all the
business partners to the UK except Jesper Buch but in 2006 Jesper Buch moved to the UK and
lunched the services in the UK, along with this it established the headquarters in the UK and also
expanded its international ventures in Netherlands in the year 2007, which is followed by the
Ireland venture in the year 2008, and after a few years it also expanded its joint venture in India.
In the year 2011, the group was able to initiate its seven acquisitions with the profit of almost
$48 million from its existing investment. The four partnerships launched new in new countries
with the in house operators, namely, eat.ch in Switzerland, ClickEat in Italy, ReastauranteWeb in
Brazil, Alloresto in France. In 2012, the company acquired its position in the United Kingdom by
getting Urbanbite that brings it into the corporate world, YummyWeb in Canada to cover regions
of Vancouver and GrubCanada in the Ontario and British Colombia markets (Bruton, Ahlstrom
and Li, 2010) .
In April 2014, it floated on the London stock exchange and raised its share with 80%, it's
Brazilian restaurant merged with one of its competitors, iFood that formed IF- JE in which the
company has 25%. Throughout the study of company background it is analysed that company
can easily deal at marketplace as well as compete with various other competitors in food sector
due to their attractive marketing strategies and so on. Beside this, as per data it has been analysed
that an organization is growing in a fastest way in every coming year by taking appropriate steps
and initiatives. Although, success will take more time but still having full potentiality to survive
in a current marketplace due to their outstanding policies (Burns, 2010) . However, number of
factors are identified which shows that Just eat can easily cope up with upcoming problems and
drawbacks with the use of creative ideas and talent. Some of the major element that shows that
company can easily survive in a competitive sector is discussed as follows:-
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 Marketing strategy:- Promotional tools is highly indispensable for company success
because with the use of effective plan of capturing attention an organization can easily
gain benefits. Along with this, different strategy is useful in competing with high level of
competitors within food industry because most of the consumers are addicted towards
advanced equipments. Thus, company is involving in online services due to which they
can easily beat their competitors in various manner. In fact, manage to establish their
image at marketplace by grabbing advanced opportunities that is existing in a
marketplace (Chittithaworn and et. al., 2011) . Hence, modern techniques of promoting
goods is one of the major element that makes the association different from others as
compared with rivalries.
 Cooperation amongst employees:- Secondly, it is essential to focus on maintaining the
environment of an enterprise in order to create a positive relations between employees
and employers. As a result productivity of business entity automatically get enhanced in a
minimum duration as staff members can automatically get motivated towards their
personal and professional objectives. Additionally, it supports an association to get rid
with any kind of business problems or issues because togetherness is most useful power
which give potential to fight with any type of problems. Hence, Just eat is trying to make
effective interaction between supervisors and subordinates for overcoming problems that
is created by rivalry parties (Cowling, Liu and Ledger, 2012) .
 Innovative ideas:- Just eat always believes in introducing something new or different
which make the association differ from others in various aspects. Thus, managers of firm
is engaging in offering qualitative and totally creative items to their desired consumers.
Additionally, sometime they also involved in designing foods as per their client choice or
preferences because it aids in making effective connection with distinct members.
Although, making personal relations is not an easy task because it requires proper
planning and lots of patience level because users consider every aspect before buying any
product.
 Methods of dealing with customers:- Major role or responsibilities of an organization is
to serve consumers with outstanding products by dealing them in a suitable manner. For
example; old age people and kids always prefer calm or sweet nature instead of rude and
arrogant. Thus, it is indispensable for organization to make relations with clients as per
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consumer needs , age group, background and so on. Make sure that every member is
getting treated in a proper manner without discriminating on the basis of various factors
(Dennis Jr, 2011) .
 Food products:- Items which is offered by an enterprise is of high quality and totally
healthy that is beneficial for every age group of customers. It means, they are not using
any harmful ingredients which may harm the health of society. Their main focus is to
take care of users health by giving their 100% while designing food stuffs.
 Sufficient funds:- Capital is a lifeblood for every organization because with the help of
this elements business activities are managed or regulated in appropriate manner. In fact,
it has been understood that funds is essential for company success because it helps in
accomplishing business operations in suitable way.
 Skilled and experience employees:- Company is having talented staff members which
helps an association in dealing with various problems. Competition is increasing day by
day due to changes in consumer needs and trends. Hence, presence of experience staff is
indispensable for company success because it aids in handling several situation that might
occurred at workplace.
By analysing above factors it has been understood that Just eat can easily compete with
current competition market due to their effective strategies and lots of elements that aids an
association in enhancing organizational image. Additionally, automatically improve the profit
level of business entity (Down, 2010) .
3) Business portfolio on the company from three topics
It is not easy to run a business entity in a food sector due to increase in high level of
competition at marketplace as it affects the success of an association in various manner.
Although, portfolio of an association is going to highlight the major factors of an enterprise
which may influence the profit of business entity in various manner. Along with this, it helps an
enterprise in assisting towards corrective path in order to encourage them towards their personal
and professional objectives. However, business portfolio consist of major three subject area
which helps in understanding each or every aspect of firm in order to make strategy as per
current need or requirement. Thus, three of them are described as follows:-
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Ownership: It may be defined as ownership of property as private, collective and
common by an individual. Property included any objects, land, capital and real state as well as
intellectual property etc. in the term of laws, ownership defines those persons who have certain
rights and duties and possessions over the property (Fassin, Van Rossem and Buelens, 2011) . It
is also known as bundle of rights due number of rights or duties which can be separated by
different parties. There are several types of structured ownership such as cooperatives,
corporations, partnership, condominium association and trusts etc. Just eat is having an
ownership of food department whose main motive is to serve consumers with tasty or delicious
products living across the distinct regions. In fact, managers of business entity is trying to gain
maximum minds by attracting users with various qualitative food items. Additionally, company
is also trying to focus on their positive image at marketplace with the use of various strategies ,
theory and framework (skills of entrepreneurial development, 2017). Along with this, it has been
understood that ownership shows the leaders and managers of an organization as well as distinct
technique through which they can enhancing their organizational performance by satisfying
clients needs or demand in a defined time frame.
Entrepreneurship is referred to a process running, developing, organising and managing
a new business. People who create these business are known as entrepreneurs. They basically
establish small businesses with the purpose of making profits. Starting a new business invites
numerous risks, so it is crucial for entrepreneurs to identify possible risks and take prior
precautions (Hall, Daneke and Lenox, 2010) . It requires great spirit for an entrepreneur to
establish a business and is characterized by innovation, risk taking, decision making, etc. Prior
starting a start up, entrepreneurs needs to finds out possible areas where they can make and
increase their profits and also maximise their market share. However, while establishing a
business entrepreneur is liable for every profit and liability because fund is invested by them
only. Thus, it has been understood that this position is seen as very responsible as maximum
responsibilities are fully depend on entrepreneur. Therefore, it is essential to plan every thing in
appropriate manner by considering necessary terms and conditions in most suitable way.
Although, success of small business is based on management of main person is entrepreneur.
Marketing is that which do consider various activities, involving promotions,
advertisement and public relations. Moreover, success is mainly depend on the firm's owner for
marketing their product and services effectively. If company “Just Eat” is having great items and
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better customer services, even though they do not get high sales as because people don't know
about business exist. Basically, marketing is that concept which is considered as important for
small business like “Just Eat”. Even though here are some marketing thing which does help in
having business enhancement as:
Enhance prestige of entity: Generally, Brand name recognition is that which do help in
enhancement of successful marketing. Even the people can make their perception for product and
services as of high quality and will be having an higher customer satisfaction in great way
(Ligthelm, 2010) . Hence, if marketing is managed in right criteria then the business is
considered as successful. Although, communication with various client and customers on regular
basis and listen to them which also ensure branding efforts made are effective (Schaper And
et.al., 2014).
Face competition: Perfect marketing efforts of small business thus provide opportunity
to them for competition with large business firms. Normally, the small entity are having an
greater advantage of paying personal attention to each and every customer rather then large
company. Even having an good sense of customer service and value are some of the important
thing for clients which has lower rates can be paid to firm rather than of large entity.
Increase sales: Hence, if the marketing is being done in right manner, than it increases
the chances of clients recognizing power for particular Brand efforts. Although this is that
criteria which make different from competitors and also increase future prospect as well.
Therefore, customer and client can also become a part of the marketing campaign with writing
the better comment for “Just Eat” which help in service and product which recommend to
company friends and relatives in right context too (Nga, and Shamuganathan, 2010) . Overall,
these things are those which does help in increasing sales of company as the word of mouth
promotion technique increases.
Strategic marketing: Strategic marketing is such which do encompasses some activities
and those are as:
 It helps in creating the marketing campaigns as this help in reaching large customers.
 It does help in bringing innovation with product and services according to the customer
needs and wants.
 It is such which lead to determine the product through research of consumer with the
observing various sales and pattern of different similar goods in their market place.
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4) Recommendations and implication for business within its sector
By analysing all the above information it has been understood that small business
management is facing numerous of problems and complication due to fluctuation in various
external and internal factors. Along with this, face high level of competition due to emergence of
several number of companies with innovative products and services (Preuss, 2011) . Therefore, it
is essential to follow some specific suggestion to overcome problems faced by firm while
running a firm is discussed as follows:-
 Need to appoint skilled or talented employees so that they can easily overcome the
complicated problems such as ; handled the high talented employees.
 Improve the performance of an association by taking major initiatives like using modern
technologies at workplace.
 Usage of modern equipments in order to accomplish business operations in minimum
time period.
 Use modern delivering process by considering each or every aspects such as; consumer
need or requirements, current trends, competitor strategy and so on.
 Conduct motivational programmes or sessions for encouraging staff members towards
personal and professional job role.
 Come with numerous of creative ideas for dealing with high level of competition which is
identifying in food industry.
Hence, it has been understood that all the above steps needs to implement at marketplace
in order to cope up with major internal and external issues that is encountered by firm while
running their organization in different regions. However, it is not easy to implement modern
ideas at workplace because few members are not agree with changes as it may influence their
comfort level. But at the same time it is indispensable to implement reformation so that company
can easily reduce various success barriers (Schaltegger, 2011) .
CONCLUSION
From the above report it has been summarized that small business management are going
through various complicated situations and problems due to number of reasons such as;
fluctuation in several micro factors and emergence of competitive organizations. Along with this,
it has been understood that small firms are growing in fastest way for gaining more or more
profit. Just eat is a small firm whose main motive is to expand their business across international
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boundaries for acquiring maximum advantageous by satisfying clients needs or requirements.
Throughout the study it is shown that company is going through various changes which is
occurring at marketplace but still adopting numerous of policies to cope up with large number of
competition. In fact, high level of companies are emerging with numerous motive due to which
existence is not an easy task. Thus, overall report shows that small business playing major role in
developing the economy of a nation by bringing up with creative ideas for capturing attention of
distinct clients.
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REFERENCES
Books and Journals
Ackermann, S.J. ed., 2012. Are small firms important? Their role and impact. Springer Science
& Business Media.
Blackburn, R.A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development. 20(1). pp.8-27.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small
business. Palgrave Macmillan.
Bruton, G.D., Ahlstrom, D. and Li, H.L., 2010. Institutional theory and entrepreneurship: where
are we now and where do we need to move in the future?. Entrepreneurship theory and
practice. 34(3). pp.421-440.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Chittithaworn, C., and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Cowling, M., Liu, W. and Ledger, A., 2012. Small business financing in the UK before and
during the current financial crisis. International Small Business Journal. 30(7). pp.778-
800.
Dennis Jr, W.J., 2011. Entrepreneurship, small business and public policy levers. Journal of
Small Business Management. 49(1). pp.92-106.
Down, S., 2010. Enterprise, entrepreneurship and small business. Sage.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Hall, J.K., Daneke, G.A. and Lenox, M.J., 2010. Sustainable development and entrepreneurship:
Past contributions and future directions. Journal of Business Venturing. 25(5). pp.439-
448.
Ligthelm, A.A., 2010. Entrepreneurship and small business sustainability. Southern African
Business Review. 14(3).
Nga, J.K.H. and Shamuganathan, G., 2010. The influence of personality traits and demographic
factors on social entrepreneurship start up intentions. Journal of business ethics. 95(2).
pp.259-282.
Preuss, L., 2011. On the contribution of public procurement to entrepreneurship and small
business policy. Entrepreneurship & Regional Development. 23(9-10). pp.787-814.
Schaltegger, S. and Wagner, M., 2011. Sustainable entrepreneurship and sustainability
innovation: categories and interactions. Business strategy and the environment. 20(4).
pp.222-237.
Schaper, M.T. And et.al., 2014. Entrepreneurship and small business.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
20.
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Stokes, D., Wilson, N. and Wilson, N., 2010. Small business management and entrepreneurship.
Cengage Learning EMEA.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and Practice. 35(1) pp.165-184.
Online
skills of entrepreneurial development. 2017. [Online] Available through:
<https://www.slideshare.net/krishnashah5891004/ram-power-point-presentation>
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