Retail Business Performance Analysis

This assignment delves into the critical aspects of enhancing retail business performance. It examines how businesses can leverage strengthened operations and improved performances to boost their productivity within the market. The focus is on creating a positive impact on operational functions and ensuring positive workplace results. The analysis concludes with a revised plan that addresses evolving customer needs and requirements, emphasizing customer satisfaction as a key driver for achieving overall business goals.

UNIT 33 SBE

Table of Contents
INTRODUCTION...........................................................................................................................1
1.1 Smart objectives of the organisation and strength and weaknesses.....................................1
1.2 Analysis of SBE using comparative measure performance ................................................2
2.1 Recommendation to overcome weaknesses .........................................................................3
2.2 Ways to improve existing performance of SBE to maintain strength...................................4
2.3 Recommendation to expand SBE in new markets ...............................................................4
3.1 Assessment of existing business objectives .........................................................................6
3.2 Revised business plan to incorporate changes and to overcome the weak point in current
plans............................................................................................................................................6
3.3 Action plan to implement changes........................................................................................7
4.1 Impact of changes on SBE....................................................................................................7
4.2 Managing proposed changes in SBE.....................................................................................8
4.3 Monitoring improvements in performance ..........................................................................8
.........................................................................................................................................................9
CONCLUSION...............................................................................................................................9
References .....................................................................................................................................10

INTRODUCTION
Businesses which have low volume of sales and have small number of employees are
called small business enterprise. These business are growing at faster rate worldwide. Small
businesses are started by small groups and operated privately. LSE retail group is a small
business venture of United Kingdom. The enterprise was founded in 2009 and it is fastest
growing retailer company of the region. The organisation provides lighting accessories like
bulbs, tube lights for homes and commercial buildings. Present report describes about smart
objectives of the company. Theories have been applied to identify the comparative measures for
the business organisation. Further more, weaknesses of the company has been determined.
Factors affecting objectives of the business have been discussed. Action plan have been made
for the organisation in order to improve the growth of company.
1.1 Smart objectives of the organisation and strength and weaknesses
LSE retail group is retail company which sales lighting accessories for homes and
mercantile markets (Harris and PATTEN, 2015). The organisation is one of the largest whole
seller of lighting accessories inthe country. Aim of the company is to grow in other countries
market by delivering superior quality products to its customers. SMART objective of the LSE
retail group is as follows:
Objectives
 Objective of the company is to develop it business in global market of United
kingdom.
 The organisation is trying to achieve sales of 4 million GBP in the target market
area.
 The small business is focusing on opening 60 stores in the country to adopt
assertive promotion to increase it sales.
The organisation has to make some strategies to achieve this objective. Many companies in the
market of country are making strategies to attract customers (Al‐Najjar, 2015). Currently the
business is operating at very small scale so it have to use some strategic approaches to survive in
competitive markets. It is a customer oriented company which focuses on satisfaction of
consumers. Following are some strengths and weaknesses of the organisation :
Strength
 Strength of the LSE group is that it is strongly committed to the customers.
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 It provides high quality of products and satisfies its customers.
 The company has been working since 8 years in the SBE industry and have long term
experience.
 Profitability of the organisation is moderate and it is increasing steadily.
 Number of workers is less and its easy for company to provide them training according to
the needs.
Weakness
 The company is lacking in proper market research.
 Organisation has been liquidity problem. Employee flexibility is very much in the company due to which some employee takes
advantages of them.
KPI: Key performing indicators of the organisation are human resources, customer satisfaction
and employee motivation .
1.2 Analysis of SBE using comparative measure performance
It is required that LSE retail group should conduct proper analysis to identify the
comparative measures of company's performance.
Comparative measure performance for human resource of the organisation is as follows:
Data for 2016 LSE retail group Data for industry average
Turnover of workers and
employees
8 % 48 %
Rate of absenteeism 6 % 12 %
Recruitment of staff members 20 % 9 %
Employee satisfaction in job 80 % 60 %
From the above table it can be concluded that turnover of worker in the company is relatively
low. Rate of absenteeism is moderate as compare to the other companies. Organisation is
continuously recruiting employees to increase its worker base. Job satisfaction is relatively high
in the business organisation.
Comparative measures performance for customer satisfaction
Data for 2016 LSE retail group Data for industry average
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Market value of business 5 3
Quality of product 4 3
Solves issues of customers 3 4
Relationship with consumers 6 5
Claims charges 4 2
Above table concludes that customer are satisfied from the services provide by the organisation.
Company is continuously increasing itsquality of products in order to gain more customer
attraction. Isssues solved by company is relatively low and it is require that organisation should
focus on solving customer problem in product (Battisti and Perry, 2015).
Comparative measures performance for employee motivation
Data for 2016 LSE retail group Data for industry average
Rewards system 2 3
Absenteeism rate 4 3
Incentives 2 4
Lateness 3 2
Being a small business organisation in the country performance list of LSE retail group is quite
good. Though it has some weakness in the market of UK. It is continuously providing customer
satisfaction and trying to improve its services. The company is focusing on different markets to
achieve its objective of achieving 4 billion GBP sales.
2.1 Recommendation to overcome weaknesses
LSE retail group needs to focus on weakness of its business in order to develop in global
market. It is must for the company to identify its weakness so that proper actions can be taken.
The company should take care about rating for it product which is given by customers. It is
require that company should focus on customer needs and expectations. It should improve it
quality of product by focusing on customer needs. The organisation should develop its product
better than rivalry companies to attract more consumer towards it (Duncan, 2015). Company is
also suffering from low liquidity problem. The organisation need to increase it sale so that its
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market share can be improved. It is required that company should hie new manufacturer in order
to increase it product quality.
Employee flexibility is very high in the enterprise due to which employee loyalty
question is arising in the firm. They are trying to overcome this problem by making some
policies which can help in increasing workers loyalty. Training and development sessions should
be conducted in company to achieve productivity from employees. company is lacking in market
research due to which it is making difficulties for business to expand in other markets.
Organisation should hire employees who can do proper market survey to identify the current
requirements in the industry. Appropriate market conditions should be analysed by company to
make position in market. Skilled person ned to hired by company who can help them in
increasing it productivity and revenue (Carter and et.al., 2015).
2.2 Ways to improve existing performance of SBE to maintain strength
LSE retail group can improve its existing performance by using appropriate strategies
(LSE retail group. 2017). It is selling it lighting products in particular market segment. It can
increase its sales by expanding its business on large scale so that market value can be improved.
Company can make proper strategies so that it can increase its customer base. Proper market
survey is a method to increase sale by knowing the condition of current market. Organisation can
conduct a survey on it customer to find out the reviews of them. Improvement is needed in
current performance of the organisation. It should compare its product by other rivalry firms to
determine the weaknesses of its products. Weakness identification will help company to amend it
products. Since LSE group is small enterprise it should adopt innovation technique. Innovation
will support company in making product according to latest trends in market (Rundshagen,
Sommer and Moss, 2014.). Existing performance ca be improved by designing its product
according to the taste of buyers. Employee should be given timely rewards on their
performance . It will help organisation to get better productivity from workers. Company can
also use porters generic strategies to increase its sales and revenue. Strategies are as follows: Cost leadership strategy : This strategy states that company can increase it sale by
reducing the price of products. Lower prices can help company to gain more customers
attraction. Organisation can increase its by profit by using this strategy even after
reducing price.
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 Differentiation strategy : LSE retail group is using this strategy to increase its sales. It
can make it product different from other so that customer attraction can be achieved
(Henrekson and Sanandaji, 2014). Company can use innovation approach to deliver high
quality product to customers.
2.3 Recommendation to expand SBE in new markets
LSE group is currently providing its product in local market area of the country. It has
option to expand its business in various other markets also. Company can expand its business in
Asian and African market. It is required that organisation should make proper strategies so that
it can expand it business successfully in other market also. It can achieve high sales by spreading
out the business in other areas (Brustbauer, 2016). Business expansion will require company to
make plans and work accordingly to achieve its goals. Ansoff's matrix can be used to analyse the
current market condition which can impact expansion of business. Ansoff's matrix is a tool
which is use by companies to expand their products and business in new areas. It helps in
analysing the risk associated in expansion. The matrix has for quarters which are as follows:
Market development
In this quadrant LSE group can target new markets to increase its sales. In this business
organisation can look for the options available to sell its existing products in new markets. There
are many ways to use this strategy which includes :
 Company can sell its product in new geographical areas. It can export its product in other
countries.
 Change in existing product by changing it design and packaging.
 Selling in various channels like online selling. It can also us methods of direct sales and
selling using agents. Change in policies of pricing to gain more customers towards the business entity
(MacDonald and Coffield, 2015).
Product development
In this quadrant company aims at differentiating its product from others to compete in
market. Product development requires proper research , innovation, trends in market etc. Product
development can be achieved by modifying the existing services.
Market penetration
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In this phase business organisation aims at selling product in the existing markets. New
marketing strategy should be developed in order to achieve proper market penetration. Different
offers are provide by organisation increase customer loyalty.
Diversification
Diversification is a risky approach that can be used by LSE retail group. In this strategy
companies try to sell product which is completely different from its existing product.
3.1 Assessment of existing business objectives
LSE retail group is retailer company of UK. The aim of the organisation is to get position
in the market by providing high quality services. They want to increase their sales by giving
customer satisfaction. To achieve theses goals organisation is trying to make different plans. The
organisation mainly produces lights an bulbs. So they need to make more products to increase
their profitability. They are focusing only on improving their sale but they have focus on
improving quality of products (Giaoutzi, Nijkamp and Storey eds., 2016). Low revenue is also a
barrier in achieving company's objective. Now a days success can be achieved only by making
the business customer oriented. Objective of the company should be improving customer bas
along with increasing quality of product. They should make proper strategies to accomplish their
objective in successful manner. Company needsto evaluate its performance and identify the weak
performing areas. These areas can be improve by making plans according to requirement.
Regular review of performance is required to stay in increasing competitive environment.
3.2 Revised business plan to incorporate changes and to overcome the weak point in current
plans
LSE retail group needs some amendments in its current plans. Plans of the company ned
revisitation. To adapt the daily changing requirement of customer company needs to develop it
business plan which are flexible (Joshi, 2016). Flexible plans can help business to achieve its
objectives. Customers requirements are changing rapidly so revised plans are needed for
company. Organisation need to add some strategies in its current selling procedure to increase its
sales. Business organisation need to increase its distributors channel to increase its sales. They
have to make change in its supply chain to gain more suppliers for company. It have to make
enhancements in its existing products. Company should be able to meet the demand of
customers. However, demand of company's product is increasing continuously in the country.
Customers are getting attracted towards business organisation. Organisation was currently using
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cost leadership strategy(Duncan, 2015.) . Company should adopt focus strategy so that it can
focus on single market to achieve its objectives. To revise the plan company can take innovative
ideas from it employee to enhance their productivity. As a small business company it is required
that it should continuously implement innovation in its products. Amendments in strategies can
help company to remove the barriers coming in way of its goals. Changes in plan is needed to
mitigate the risk associate with business activities. Revenue of the company can also be
improved by implementing changes in plans.
3.3 Action plan to implement changes
LSE retail group need to change it current action plans. These plans can be changed using
change management model (Battisti and Perry, 2015). Organisation can use Lewin's change
management model to implement change in its current action plans. This model is used by
various companies to make changes in their plans and to accomplish their objectives. The model
has 3 stages which help in changing current procedures. These stages are as follows:
Unfreeze
In this stage of change management model LSE retail group have to identify that change
is necessary. In this phase company have to stop using old plans and should made new ones in
operational activities of business. In this stage organisation determines the weaknesses of
existing plans and find out the necessity of the new plans. Company have to cut down the
previous plans in so that new one can be started (Carter and et.al., 2015).
Change
In this stage uncertainty which was caused due to unfreeze stage is resolved. Employee
of the company try to adopt the changes and look for the new style of working and proceeding.
It take time for workers to adopt the change and work accordingly. In this phase workforce of
the company try identify the benefits of the changed plans.
Refreeze
This is the last phase in which business enterprise starts finding that if the changes are
accepted or not. In this stage company can see the changes are taking place. New and changed
plans are refreezed in this stage. Company also ensures that new plans are working properly and
helping in increasing productivity.
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4.1 Impact of changes on SBE
LSE retail group has proposed some changes in its existing business plans and these
changes will affecting performance of business. Changed plans will impact in overall
productivity of the organisation. These changes will help company in achieving customer
satisfaction. Newly designed product of company will have positive impact on its customer
base. Expansion of business in other countries will help company in increasing its personnel. It
will also provide jobs to people of other countries after expansion. However,changes in existing
plans will require funds and capital. New and modified plans will help company to achieve its
objectives in less amount of time (Brustbauer, 2016). These plans will also support in increasing
profitability of the organisation. Expanding of business will also require monetary support which
can cause problems to small business organisation. It is require that proposed plan should be
executed properly. Management of the organisation should take responsibility to undertake every
step of new plan properly.
4.2 Managing proposed changes in SBE
Management of change in LSE retail group can be done in following steps :
 Organisation need to take decisionsaccording to the action plan proper in above
step.
 Company require proper suggestions and advices so that the risk can be mitigated.
It is require that retailer company should get proper financial advice before
expanding business.
 Organisation need to try the changed plans before executing them. Trying the plan
will help enterprise in identifying thee mistake and weak areas(Al‐Najjar, 2015).
 Company should take feedbacks from employees so that it will help company in
identifying problem of employee due to changes in procedures.
 Organisation need to make short term goals so that they can be achieved using
new plans.
 To manage the plans properly company should take feedbacks from the customers
also. The can ask customers about effectiveness of revised plans.
4.3 Monitoring improvements in performance
All the plans made by LSE retail group ned to be monitored to check their effectiveness.
Manager of the organisation can keep database about the performance of company after
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changing in plans (Rundshagen, Sommer and Moss, 2014). Monitoring can be done by
comparing the current outcomesfrom the previous ones. Company can take out a survey on
customers so that effectiveness of the new action plans can be determined. Researches should be
conducted by company on employee and customers to find out the weak areas (Joshi, 2016). Key
performing indicators would be determined and monitoring would be done on the basis of that.
Revenue of the company can be compared with the previous one to identify the effect of new
plans. Monitoring of performance can be done using checklist method.
CONCLUSION
From the above report, it can be concluded that small business enterprise plays vital role
in enhance economic growth of the country. In this way, report is based on LSE retail group
which is retail sector enterprise in UK. They are working for increase their revenue and make
large business in all over the country. Therefore, report undertake comparative measurement that
assist to make effective results in business environment. Furthermore, it summarized about there
are certain ways explained through chosen business will easily maintain their strengthened and
performances to increase their productivity within the market. It creates positive impact on the
operations and functions which insures for developing positive results at workplace. Moreover, it
concluded about revised plan which need to be ascertained for changes needs and requirement of
customers. Retail business has main aim to satisfied customers so that it would be beneficial to
attain overall target through focus on their desire.
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References
Books and journals
Harris, M. A. and PATTEN, K. P., 2015. Mobile Device Security issues within the US
Disadvantaged Business Enterprise Program. Journal of Information Technology
Management. 26(1). p.46.
Al‐Najjar, B., 2015. The Effect of Governance Mechanisms on Small and Medium‐Sized
Enterprise Cash Holdings: Evidence from the United Kingdom. Journal of Small
Business Management. 53(2). pp.303-320.
Battisti, M. and Perry, M., 2015. Small enterprise affiliations to business associations and the
collective action problem revisited. Small Business Economics. 44(3). pp.559-576.
Duncan, K. C., 2015. The effect of federal Davis-Bacon and disadvantaged business enterprise
regulations on highway maintenance costs. ILR Review. 68(1). pp.212-237.
Carter, S. and et.al., 2015. Barriers to ethnic minority and women’s enterprise: Existing
evidence, policy tensions and unsettled questions. International Small Business Journal.
33(1). pp.49-69.
Rundshagen, V., Sommer, G. and Moss, S., 2014. Enterprise, creativity and small business.
Entertainment Management: Towards Best Practice. p.202.
Henrekson, M. and Sanandaji, T., 2014. Small business activity does not measure
entrepreneurship. Proceedings of the National Academy of Sciences. 111(5). pp.1760-
1765.
Brustbauer, J., 2016. Enterprise risk management in SMEs: Towards a structural model.
International Small Business Journal. 34(1). pp.70-85.
MacDonald, R. and Coffield, F., 2015. Risky business?: youth and the enterprise culture.
Routledge.
Giaoutzi, M., Nijkamp, P. and Storey, D.J. eds., 2016. Small and medium size enterprises and
regional development. Routledge.
Joshi, B. P., 2016. Investigation on Unsuccessful Attempt of a Small Business Enterprise in
Scaling-up/Strategic Diversification Plans. IJETT. 3(3).
Online
LSE retail group. 2017. Accessed through: <http://www.lseretailgroup.co.uk/>. [Accessed on
16th June,2017]
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