Small Business Development & Diversification

This assignment delves into the multifaceted world of small business development and diversification. It examines various factors influencing small business success, particularly in the context of diversification strategies. The assignment incorporates a review of scholarly literature, exploring concepts such as experiential authenticity in family farming and the role of institutional readiness in alliance formation. It also touches upon ethical considerations in small business practices and the evolving nature of entrepreneurship.

Small Business
Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 produce a profile of a selected small business identifying its strengths and weaknesses.....1
1.2 Analysis of the business using comparative measures of performance................................2
TASK 2............................................................................................................................................3
2.1 Appropriate actions to overcome the weaknesses ...............................................................3
2.2 Analyse ways in which existing performance could be maintained and strengthened........3
2.3 Recommend with justification, any two new areas in which S BE business could be
expanded.....................................................................................................................................4
TASK 3............................................................................................................................................5
3.1 Produce an assessment of existing business objectives and plans........................................5
3.2 Revise business plans to incorporate appropriate changes...................................................5
3.3 Action plan to implement the changes in order to strengthen the performance of SB E......6
TASK 4............................................................................................................................................7
4.1 The impact of the proposed changes on the business and its personnel...............................7
4.2 Planning done regarding how the changes will be managed in the business.......................7
4.3 Monitor improvements in the performance of the business over a given timescale.............8
CONCLUSION................................................................................................................................9

INTRODUCTION
Small business enterprise can be defined as an enterprise having less number of
employees and do not have high turnover or production. These organisations are generally
privately owned and run their businesses by making partnerships(Van Der Wijst, 2012). The
definition of small scale businesses is not fix it can be varied as per the legal laws of industries as
well as the nation.
The present report is based on the UK based small business enterprise (SB E) intending
to improve their business performance. The analysis and reviewing task is carried in order to
develop the production and business planning capability. The report is explaining the processes
involved through small business corporation strategies and change management, of reviewing
and improving the performance of a small business enterprise. This project is also solved the
learners problem by giving them proper information about the carrier development in the SB E
and making success in their life.
TASK 1
1.1 produce a profile of a selected small business identifying its strengths and weaknesses
The Rebellion Developments is a small business enterprise located in the town named
Oxford. It works on the development of computer games and magazines. There are approx one
hundred twenty four employees working in the company. It has sale of 9.12 per annum.
The business objective is nothing but the detailed images steps involved in making the
plan to achieve success in the market. Every small scale entrepreneur wants to set the smart
objective. The smart objective possessed by the organisation are listed below:
 The primary objective of the organisation is to be specific. This means the vision which
the company want must be clear and easy to understand(Ackermann and Audretsch,
2013).
 Secondary the goal must be measurable that should identify the quantity and quality in
terms of customers and products consecutively.
 The third aim is to be realistic i.e. the goal must be real but do not fly in the sky(Barber,
et.al., 2016).
The rebellion developments should follow such above written objectives. As the organisation is
being in loss there are several weakness of this organisation that are as follow:
 The companies lacks in the monitoring of the jobs done by the co-workers.
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 It is failed to find the regular customers' needs.
 The dead line is also not followed regularly so the delivery of the products are being late.
Despite this the company exits in the market because of its strength. The strength of the
company is its reliability i.e. the trust between the customer and the organisation itself. The
company is specific, realistic and measurable in order to achieve the best place in the market.
1.2 Analysis of the business using comparative measures of performance
The business of the Rebellion Developments could measure its production by using the
following factors like financial profits, ROI, market share, customer satisfaction, etc.
 Financial profits: The company financial profit should be compared with the other small
scale businesses. It will show the company's existence in the market. This organisation is
making 9.12 euro per annum and has made 9.2 in the previous year. This shows the
decrement of the organisation revenue(Bridge and O'Neill, 2012). The other companies
are making like 9.26, 9.35, 9.60 euro per annum. So, the comparative measures shows
that the organisation is being in the loss. It must have to improve its production.
 ROI: It stands for return on investment. It is also a performance measured that is being
used by the organisation to check the efficiency of their investments. It helps in
measuring the returned amount from any investment relative to the cost of its investment.
The company can calculate it by dividing the profits gained of an investment to the price
of the investment and its result is represented in the ratio or the percentage. The
investigation reflects that the ROI was good in the initial years but at present it is is quite
low(Storey, 2016).
 Customer satisfaction: The company is not meeting the customer satisfaction as
compared to others. The company ought to focus on the customers wish or needs. This is
the most crucial factor that impacts the organisation very badly if they failed to get that.
M1
The three different measures are used in order to enhance the performance of the
organisation. These are financial profits, ROI( Return On Investment) and the customer's
satisfaction. The organisation is not making profits now a days. So it should focus on the profits
or how the profits management solutions should take. The company should concentrate on the
needs of the customer in order to achieve the good return on investment's value.
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TASK 2
2.1 Appropriate actions to overcome the weaknesses
In order to overcome the weaknesses, The Rebellion Developments should give more
focus on the work of their employees and the output received in the form of company's turnover.
The comparative research should also be taken in order to identify the position where the
company exists. The company should take certain steps in order to increase their production that
are following:
 Satisfaction of the customer: They ought to concentrate on the customers needs. As per
the their demand they should make or deliver the products. The consumers are the one
which are pillars of the success for any business. If the company will meet the their needs
properly then ultimately the demands grows and this give a positive impact in terms of
company's turnover(Chittithaworn, et.al., 2011).
 Time management: The corporation must be strict in case of time. They should allot the
dead lines for the delivery of the products which is game and magazines here. If the
deadline crosses without delivery it will create a negative image of the corporation in
front of their consumers(Fassin, et.al., 2011).
 Loyal partnerships: The enterprise should make parters and behave loyally regarding
them or vice-versa. Because loyalty makes the base of the business. If the shareholders
have not trust on the company then surely the business does not grow. So, it should
maintain a loyal or trustful environment.
The venture should also increases its ROI, market share, employee motivation, operations
quality, flexibility, speed and cost indicators, etc. in order to be at the top of the market.
2.2 Analyse ways in which existing performance could be maintained and strengthened
The performance done by the Rebellion Developments limited should be maintained and
strengthened time to time in regular basis. It will not be maintained then the company yearly
revenue would be decreases. In order to maintain this situation the company have to follow the
below listed ways:
 The enterprise should give attention towards hiring skilled and punctual workers. This
may become assets for the company.
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 The superiors should motivate their co- workers as well as the assistant staffs available in
the work place. The motivation will be regarding improving the work or showing the
growing carrier of the freshers(Domenico and Miller, 2012).
 Certain awards and rewards should be given by examining the work quality of the
employees.
 The time management is also done for all the projects. The dead line must be followed by
the staffs department. This will impress the customers and the shareholders too and as a
result they will became the permanent consumers for the organisation(Mason, 2015).
 The agency should concentrate more on the operational quality because it is the work
quality which defines the workers devotion towards their duty or job. The good work
done by them will enhance the production of the venture ultimately.
 The agency should create the projects by taking care of the budgets because the
calculated budget work will prevent the losses occurred.
M2
The existing performance could be maintained and strengthened by taking appropriate
steps like allotting the deadlines of the projects, improving the quality operations, giving
motivational speech to the workers involving the rewards giving plans, hiring skilled workers,
and by doing the projects at specific budgets.
2.3 Recommend with justification, any two new areas in which S BE business could be
expanded
The Rebellion Developments now want to expand their business in London as well as
United Kingdom. In order to the expansion the organisation should follow Ansoff Growth
Matrix. It is a business planning tool which are used to generate the best plans regarding the
improvement of the newly created market. It consist of four areas namely Market Development,
Diversification, Market Penetration and product development. The enterprise should follow the
Market Development and the Diversification(Dickson and Weaver, 2011). The company should
make new offers for the special generations like change the costing policies. Some of them are
discussed below:
Market Development: The discount would given to the children for downloading the
games, the students also have achieve this discount policy but at different level. As the company
is moving towards new location so superiors of the ventures need to develop their market
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product by understanding the culture of the society as well as focussing on the languages that are
used to speak there(Jasra, et.al., 2012).
Diversification: This is the riskiest matrix where the customers and the product are new.
So, the organisation have to work by using their skills or sense of humour. The products are
made as per the climate, season, mood or by examining the interest of the civilians of that place.
TASK 3
3.1 Produce an assessment of existing business objectives and plans
The newly created business market should follow new plans and prospectives. The
venture should follow the below listed objectives:
 The product-market should be created by taking survey around the new location where
the market have to establish. This survey is about the new customer's needs, their culture,
clothing style, etc. The children and the students skills are also carefully
examined(Teasdale, 2012).
 Making plans based on that survey to create a profitable product. The plans are made by
the skilled workers or the superior one of the organisation.
 Launching that product in the market by creating new and attracting offers like discount.
 Exploring the competitive market which are existing there from the beginning.
 The market partnerships can be done with the native shareholders and workers as they
have much knowledge about their culture(Henrekson and Sanandaji, 2014).
This objectives have different merits like it will enhance the product value by attracting
more customers. If the corporation will watch the culture, they get creative ideas to adapt those
environment and this conclusively aids in the improvement of market's capital. The youth or the
new generation can be the best customers so they are pleased by making products of their wish.
The demerit of this objective is that if the company focus on the youth then the older citizen may
not become as a part of their customers.
3.2 Revise business plans to incorporate appropriate changes
Every plans have their pros and cons. The newly created business plans also have
weakness. The plans made are not fulfilling the desires of the older population as they are
focussing the younger one more(Barber, et.al., 2016). This creates a loss in the overall capital
value of the revenue. So the company ought to also take care the wishes or wants of the age
group of 35 plus. The corporation can launch new products by watching their keen interest
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sector. The native shareholders as well the employees will surely proved beneficial to deal with
such type of problems as they are familiar with that culture. The products like magazine,
newspaper, journals,etc. can be launched. Because they are liked by all these senior citizens.
Also the product is season free and will become ever green in the market area(Raposo and Do
Paço, 2011). The company should also make make motivational games which are used by this
section of people.
D2
A revised business plan to incorporate
appropriate changes to overcome weaknesses of the existing plan should be done by making
new offers like giving discounts to the youth and the students. Additionally the company should
do surveys of the new location where the business have to establish. The native employs are
hired as they posses good knowledge of the culture and the society.
3.3 Action plan to implement the changes in order to strengthen the performance of SB E
The new plan which is created having the motto to achieve the best performance of the
small business enterprise. That planning follow the following steps:
i. Problems identification: The problems are being identified initially.
ii. Discussion: Then these issues are discussed by the team members or the supervisors of
the company.
iii. Solution: This steps consist the solution of that problems
iv. Documentation: These solutions are written properly so the employees will implement it
by examining these solutions(Curran and Storey, 2016).
v. Testing : These solution created are tested in this step in order to make conformation that
these are true solutions regarding such problems.
vi. Implementation: Finally, at last but not the least step ,these solutions are being
implemented by the workers of the organisation(Van Der Wijst, 2012).
This whole process would take a certain amount of time. And the company should hire specialist
in order to solve the issues generated while establishing the new market products. The feedbacks
are attended more carefully by the projects worker. This will also help the organisation in solving
the different issues.
M3
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The organisation have to follow the plans created to implement the changes in order to
strengthen the capabilities of the SB E. The problem are identified and then discussed with the
head of the corporation and then the solutions are drawn and implemented by testing it.
TASK 4
4.1 The impact of the proposed changes on the business and its personnel
The plans which we have taken in order to change the operations and the worker power
are found to be quite effective. The employees are hired from the same locations creates a good
feedback for the company as the local communities will be attracted towards the
corporation(Ackermann and Audretsch, 2013). The partnerships will increases dramas-tally and
as a fruitful result the business will expand and may be the small businesses will transform into
the large multinational companies. This will be treated as an inspiration for the new entrepreneur
who are at the stage of start-up.
By taking care of all the age groups people involving the kids, students, matured and the
old citizens make a good number of customers even in the newly located market in few months
or years. This will hundred percent enhance the turnover of the company. The employees
working environment is also take care because again it is the quality work which impacts
positively on the corporation. And to gain the quality work employees should given favourable
conditions so that they could work properly.
D1
The proposed changes over the old one give a positive response to the organisation. Like
employees recruitment are done on the native basis so that maximum knowledge can be gained
of the location as well as the socio- culture of that place are also recognized well. This improves
the company revenue at the back end. The social welfare, motivation and the production all are
promoted at regular basis will help the company most effectively.
4.2 Planning done regarding how the changes will be managed in the business
The changes which are done are managed by the organisation itself by using some
theories given by the scholars and the successful entrepreneurs as they shares their experiences
and the successful journey of their businesses. This will inspire as well as proved to be the best
guide line for the SB E.
The Rebellion Developments uses the Market Mix theories in order to manage the new
changes. The organisation will concentrate on the basic factors that are following:
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1) Product: The product are generated by examining the needs or the wish of the customers.
2) Place: That product will be easily available to the consumers via online or via nearest
street shop.
3) Price: The market product will be launched by providing the accurate costing as it will
not be the cheapest or expensive vice versa. But the costing is done by seeing the quality
as the consumer can pay a little more for the quality product.
4) Promotions: The new products are not familiar by the people so the promotions are done
by using the advertisements. Social media and the newspaper play the key role here.
5) People: The right employees are hired with good skill of marketing. This will promote
the business.
The venture must follow these above written factors in order to raise the level of the turnover
and establishing at new place.
4.3 Monitor improvements in the performance of the business over a given timescale
In order to improve the quality production the Rebellion Developments should focus
more on the improvement in the performance by using the three phases of performance
monitoring(Storey, 2016). The different phases are following:
I. The error phase
II. The phase of correct responses after errors
III. The phase correct responses following corrects
The error phase consist of external feedbacks i.e. the response given by the clients. This is to be
notes that the error monitoring process do not affected by the feedbacks. But the internal
monitoring done by the supervisors affects in a positive way and generating a fruitful results. But
it take several years like one or two.
D3
The monitoring process will drastically improve the performance of the company by
enhancing the organisation's operational quality. This process includes the feedbacks at external
as well as internal level and solves the errors present in the projects. This will take some times
like 3-4 weeks or several years.
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CONCLUSION
From the above mentioned report it has been concluded that the small business
enterprises have to develop their market policies by using some theories and grasping the
information given by the successful entrepreneurs(Bridge and O'Neill, 2012).As they are doing
starts up they need to focus on the skills posses by the successful one. The present report is quite
helpful for the SB E in order to improve their revenue or turnover per annum.
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