Business Performance Analysis Report: Ango Purpose Made Furniture Ltd

This report provides a comprehensive analysis of Ango Purpose Made Furniture Ltd, a small business enterprise specializing in motor vehicle parts and accessories. The report begins with an introduction to small business enterprises, followed by a detailed profile of Ango Purpose Made Furniture Ltd, including its history, activities, strengths, and weaknesses. A key component of the report is a comparative analysis of Ango's performance against a competitor, JFL Automotive Ltd, examining sales, turnover, production, marketing, and human resources. The report then delves into recommendations to address Ango's weaknesses, such as limited operational area, insufficient employee numbers, and service quality issues. Justifications and implementation strategies are provided for each recommendation, including expansion plans, recruitment strategies, and service improvement measures. The report concludes with an overview of the impact of the proposed changes and plans for managing these changes within the business.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Producing the profile of the company...................................................................................1
1.2 Comparison of performance with other business..................................................................2
TASK 2............................................................................................................................................3
2.1 Recommendations with justification to overcome weaknesses............................................3
2.2 Analysing the ways in which existing performance could be strengthened.........................6
2.3 Suggesting new areas into which business could expand.....................................................6
TASK 3............................................................................................................................................8
3.1 Assessment of existing business objectives and plans..........................................................8
3.2 Reviewing business plan and suggesting areas where changes are required........................9
3.3 Preparing of action plan to implement the changes............................................................10
TASK 4..........................................................................................................................................12
4.1 Impact of changes that will be having on business.............................................................12
4.2 Planning for how changes will be managed within business..............................................12
4.3 Improvement over last two years........................................................................................14
CONCLUSION..............................................................................................................................14
REFERENCE:................................................................................................................................15

INTRODUCTION
Small business enterprise are the one which are owned by individuals and partnership and
is also having less number of employees or less amount of revenue. As according to European
Union the companies which are having less than 50 employees working, turnover not exceeding
£6.5 million, balance sheet not more than £3.26 million but should be a registered company
under Companies House for at least 2 years. The present report will be covering ANGO
PURPOSE MADE FURNITURE LTD which was incorporated on 19 April 2015 and is private
limited company. This company is manufacturing accessories and other parts for motor vehicles.
The report will be covering history or background or company, its activities, location of business
and strengths and weakness of company. The report will also be including comparison of the
performance of business of other enterprise which is JFL automotive Ltd. Further this will be
covering business plan of Ango purpose made furniture Ltd. At the end will be suggesting
changes which could be incorporated for performance improvement.
TASK 1
1.1 Producing the profile of the company.
The name of the business:
Ango Purpose made furniture Ltd is the company which is operating within Somerset city
of South West England and dealing in manufacturing of motor vehicles parts and accessories
(Ango Purpose Made Furniture Ltd, 2018). The company was founded in 2015 and successfully
running for 2 years with having the total assets of about £35.6 with about 10 employees.
Owner structure:
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This company is registered one under Companies House. Andrew Gould is the current
Director of the company since the incorporation and he is also the Secretary of the company
from 2015.
History/Background:
Ango purpose made furniture is successful running company since last 2 years in market
and gaining popularity within the area where it is operating (Ango Purpose Made Furniture Ltd,
2018). The history is not that much old as it was founded in 2015 only but from the incorporation
time company was known as Yoga Swing UK Ltd for the period of 19 April 2015 to 30 March
2017. Afterwards it changed its name to Ango Purpose made furniture.
Its activity:
Currently it is dealing with parts and accessories of motor vehicles and its activities is to
manufacture components of automotive.
Business location:
Ango Purpose made furniture Ltd is having its registered office in Unit 3A The works,
Back River Drove Street, Somerset BA 16 9SG, South West England
Strengths and weaknesses:
Strengths Weaknesses
1. The major strength of company its
affordable price which they are offering to
their customers.
2. Quality of products are also very high as
compared to other companies within area and
same industry.
3. They are also having very substantial profits
since its incorporation from 2015.
1. The limited area of its operation is one of the
weakness which they need ot overcome.
2. They are also having very less number of
employees to handle the business.
3. They are not able to provide good quality of
service to their customer which other in same
market are easily giving.
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1.2 Comparison of performance with other business.
Ango furniture is dealing into motor parts and its accessories and gaining much
popularity among the people area but they are also having their competition with other (Vivek,
2017). The most tough competitor of company is JFL automotive Ltd which is also a
manufacture of parts and accessories of motor vehicles.
Comparison chart:
Basis Ango purpose Ltd JFL automotive Ltd
Sales They are not performing good
in sales as compared to the
other company.
Sale of company is very good
and performing better than
others
Turnover £2 million £4.67 million
Production Producing parts and
accessories of motor vehicles
Producing parts and
accessories of motor vehicles
Marketing They are using the platform of
digital marketing to improve
the customer base and
increasing profits of the firm.
Marketing channel used by
company is not very modern as
compared as they are using
digital marketing but in very
less amount.
Human resource 10 employees are employed
within company.
67 employees are there.
Use of technology Company is using good deal of
technology for its operation
purpose and for marketing as
well.
The use of technology must be
encouraged within the
company.
Ango purpose Ltd JFL automotive Ltd
Year Sales Profit Sales Profits
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2015 £25.00 £28.00 £36.00 £63.00
2016 £28.00 £36.00 £39.00 £23.00
2017 £35.63 £36.00 £30.00 £30.00
The profits of Ango purpose Ltd is more in 2017 as compared to that of JFL automotive
so Ango purpose if better the that of the other one.
TASK 2
2.1 Recommendations with justification to overcome weaknesses.
Ango purpose made furniture Ltd is been operating successful within industry and area
and also earning handful of profits from its operation. But on the other hand it is also having
some weaknesses which they need ot overcome to be more prospering. Every company is having
its own demerits and they are causing hindrance in its operation and working and also for earning
good amount of profits for them (Huttinger and Dreibelbis, 2017). Weaknesses are not that much
easy to recognise for any kind of business but it is important so that they could be removed from
business. These weaknesses are not allowing business to take up opportunities that could be
helping in betterment.
Some weaknesses of Ango purpose made furniture Ltd are been defined in the above
chart of strength and weaknesses now recommendations will be given with justification to
overcome those weaknesses.
What is wrong?
Limited area of operation
How we will be fixing it?
This could be done by improving operations and making good use of all resources which they are
having. If they are rising more amount of funds from their shareholders or by any other means
and sources of funds then also they will be easily increasing the area of operations.
Why should it be fixed?
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This should be done so that company is able to expand its area of operation.
Who will fix it?
Management will be responsible in making and fixing the changes.
How are we going to do it?
At first company must try to take feedbacks from the available customers which will be helping
them in correcting the area where they are weak.
Then the company will be analysing that feedbacks so that they are able to take the corrective
actions.
Then after that company will be analysing the need of expanding the store or business if they
found that there is actually the need to expand its limited operations then they will do it.
Afterwards they will be finding sources of finance which are all available to them.
Planning for the expansion will also be very much important so that they could continue their
work according to that plan only.
Finally, they will be expanding their business and monitoring or controlling all the loopholes
which will then be solved by company.
By when it would be done?
This will be taking and requiring a time of almost 10 months.
How much will it be cost?
This would be costing about £10 million to
By when will we see a return on this investment?
This is not be certain.
What is the expected outcome?
As company is very much popular among the customers so the outcome will also be very as
expected.
Why should we do it?
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This must be done so that company is earning good profits and generating revenue.
Weaknesses Recommendations Justification
Limited area of operation. The company is not performing in
whole of England and only having the
stores at South east England which is
regarded to as weakness of company.
For this they must be increasing their
area of operation (Baidoun and
Awashra, 2018).
If the company want them to should be
overcoming their weaknesses which
are there then they should be first
identifying the weakness and then try
ot solves the problem which is
pertaining. The solution which is given
is good as this will then be helping
company in increasing their area of
operations they could go throughout
England and this will be helping them
to gain more and more profits.
Less number of employees Ango company is only having 10
employees who are working within the
company which are not sufficient if
company want to improve operations
and increase area as well. So they must
be focusing on giving employment
more good and qualified employees.
This is main resource for company
which would be helping in rising
profits and increasing sale of company.
The recruitment and training procedure
of company should be very good they
must also be employing Human
Resource Manager who will be held
responsible for the training and
development process of company
(Kuratko and Morris, 2018). This will
As human are the best from of resource
which company is having with it. It the
duty of management of company to
employee worth employees who will
be increasing sales and revenue of
company. This is regarded to as
weakness of company and
recommendation is that they must be
increase the number of employees who
will be helping firm so this suggestion
will be best suited for company.
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in turn be helping company in
increasing the number of employees
within organisation and also in
retaining them which will be
decreasing employee turnover.
Bad quality of service. All the other competitors who are there
in market are giving good quality of
service to their customers. Service is
the main element of business which
every customer desire to have from its
marketer. Quality of service which
Ango is providing is not very good
which must be improved on the hand
of company. This could be done by
increasing the number of employees
within company. If workers are more
within the firm then they could be
improving the service quality which is
been provided by firm. The use of
technology must be increased which
will be improving quality of service in
best of its way.
This is also a hindrance in sales and
profits of company. Service will be the
important element of any business
which will b improving efficiency of
company and increasing base of
customers. The increased use of
technology which will be helping in
services quality improvement is the
best recommendation which company
must be using within its operations.
2.2 Analysing the ways in which existing performance could be strengthened.
Ango purpose made furniture Ltd is doing its business since 2015 and it is also earning
very good profits and sales revenue from the products (Lumpkin, Bacq and Pidduck, 2018). They
must be collecting more and more market information which will be helping them in growing
base of customer. Taking feedbacks and suggestions from customer will b regarded to as very
good in strengthening their performance which they can use in decision making of company.
Price is the important element which company is having with them so they must have their focus
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on that price and value of products. In small business type the decision of price and products will
be taken by the owner of company only so deciding about price and then its quality is also the
power and part of owner only. For this purpose they must be following participative or
democratic type of leadership style so that all employees of the organisation are motivated and
also ensuring the productivity of employee (Ayandibu and Houghton, 2017).
Quality of product is also one of the point of reference for company so they must be
making all employees aware for the importance of quality. This will in tern enabling them all to
grow and expand in area. If company is finding any defect within the quality of service and that
of product then they must try ot solve problem at the time of defect only. All the employees must
be having knowledge about their role and responsibility in regard to job profile so that they are
motived. They will be having the sense of responsibility within themselves and which will be
promoting performance appraisal in company (Vahlne and Jonsson, 2017). Products which they
are manufacturing should be of the best quality so that this will be attracting number of
customers towards company.
2.3 Suggesting new areas into which business could expand.
Ango purpose made furniture Ltd must till this time try to expand the area of their
market and operations so that they are able to obtain more profits for firm (Reascos and
Carvalho, 2018). For increasing area or expanding the business in more area Ango purpose
made furniture Ltd could use Ansoff matrix which will be helping them in expanding operations
in 4 different way which could be:
Market penetration- by this enterprise could maximise the amount and number of sales which
they are doing within same market (Ansoff matrix, 2018). This could be done using existing
product and that too in same market. Which will include improving the way company is
operating in market they could use more ways of digital marketing for attracting its customer.
They can also introduce some schemes which are related to products and service like that of
discounts to its customers or enterprise can also decrease its price of products so that more new
customers get the attention of company.
Market development- with the use of this strategy company can introduce their existing products
but in new market that is in nearby cities like that of Gloucestershire and Bristol. This will be
helping company in exploring new cities and markets for their growth and development (Ansoff
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matrix, 2018). As they are also having many sources of funds available for exploring new
markets within country like that of bank loan or from rising funds from shareholders.
Product Development- by this enterprise should be introducing new product within the same
existing market. Major advantages of this could be as they are having the same customers with
them so for new product they will not be requiring ot do market research (Lin and Wang, 2018).
Product development must be done to improve quality of sales and profits maximisation by just
modifying the portfolio of products.
Diversification- this strategy is whole new type of product into new market which is done when
company is performing very well within market (Ansoff matrix, 2018). But at this time Ango
purpose made furniture Ltd is not doing good so this option will not be of any use for company.
Illustration 1: Ansoff matrix
[Source: Ansoff matrix, 2018]
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