Analysis of Small Business Enterprise Performance: Austin Fraser

This report provides a comprehensive analysis of Austin Fraser, a small business enterprise specializing in recruitment consulting. It begins with an introduction to small business enterprises, defining their characteristics and highlighting their significance. The report then delves into the strengths and weaknesses of Austin Fraser, including financial limitations and staffing challenges, while also examining its flexibility and employee motivation. A comparative analysis is presented, comparing Austin Fraser with a competitor, Agency Central Limited, using financial data to evaluate performance. The report explores strategies to overcome weaknesses, such as financial limitations and staffing issues, along with methods to maintain and strengthen business performance, including strategic alliances and market expansion. It also examines the influence of changes in business plans and the importance of monitoring performance. The report concludes by offering insights into the scope of small businesses for expansion and the implications of strategic adjustments. This report is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Strengths and weaknesses of small businesses enterprises..............................................1
1.2 Comparing small businesses and analysing its performance...........................................2
TASK 2............................................................................................................................................3
2.1 Steps to overcome weaknesses in businesses...................................................................3
2.2 Methods to maintain performance and strengthen them..................................................4
2.3 Scope of small businesses for expansion..........................................................................4
TASK 3............................................................................................................................................6
3.1 Analysis of Businesses Objective and Plans....................................................................6
3.2 Improvising businesses plan to make appropriate changes..............................................6
3.3 Action plan for implementing changes.............................................................................7
TASK 4............................................................................................................................................8
4.1 Influence of changes occurred in the business plan.........................................................8
4.2 Management of changes in businesses.............................................................................9
4.3 Monitoring performance of businesses for given time period..........................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Small Business Enterprises are the firms which are privately owned collaborations, that
may exist in partnership or own proprietorship (Abor and Quartey, 2010). They have fewer
employees and their annual revenue is less than any regular sized corporation. They are
classified on the basis of their annual revenue, sales, assets, net profits and number of employees.
This report is based on Austin Fraser, which is a consultancy firm. It consists of people who are
specialized in IT, life science and engineering. They are recruitment consultants. Main purpose
of this report is to understand the concepts of small business enterprises and their strengths and
weaknesses. There are certain strategies and plans implemented to monitor the performance and
practices of done by Austin Fraser. Various methods have been described in the report to
overcome the weaknesses of business. Some changes have been suggested to improve the quality
of business. Along with that, effects of changes on business policies are analysed in this report.
TASK 1
1.1 Strengths and weaknesses of small businesses enterprises
Small business is independent one organisation it may consist of the fewer than the 500
employees. Company like Austin Fraser is spread on very small locations and they deal with the
small markets only with targeting the particular focused audience. Being a small company, it is
easy to deal with the people consumer at the ground level and this can help them to know their
demands and needs so that they can produce products accordingly. They are liberal no one can
dominate them they are own boss (Ackermann and Audretsch, 2013). They run their market
according to them. There are few weaknesses of Austin Fraser being the small business which
are as follows:-
Financial limitation: - For small business organisations, it is hard to raise too much
capital for investment or for other projects because of lack of money. Unlike big organisations,
bank doesn't provide loans easily to small business enterprises as they give to other big
companies. Along with that, too much formalities they have to do while asking for the loans
from banks.
Staffing: - Generally, small business organisations don't give smart salary to the
employees and thus, workers in Austin Fraser hardly find such opportunity in this firm. Their
mostly time spend on away doing the day by day running things they got few time to do focus on
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the targeted objective (Altman and Wilson, 2010). They have heavy workload and they don't
recruit much employer or if they do so then they don't give them a mart income.
Strengths of Austin Fraser being the small business enterprise are as follows:-
Greater flexibility:- This is the advantage of small business they can do things by their
own they don't have to get in trouble by asking permission from anyone in fact their product
lines are very small they can easily fine the loopholes.
Motivation: - The owner motivate employees by their own they work hard, and quite
longer time and as a small organisations its easy to involve by the workers easily and motivate
them by giving bonus etc.
1.2 Comparing small businesses and analysing its performance
Key success for Austin Fraser is its capability of offering reasonable programs. This
company has increased its consultancy centres and added more efficient methods of talking to
clients to understand them well (Bellucci, 2010). By this they are getting great exposure of
various activities and extended their services . This would give their customers with maximum
satisfaction. Below presented a statement of two major recruitment companies so that valid and
suitable comparison or differentiation between them so that better and effective distinction in
them could be done for gaining better results:
Agency Central Limited Austin Fraser
£ £
Sales 250 350
Cost of sales 120 150
Gross profit 130 120
Overheads 20 30
Net profit 110 50
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Balance sheet for year ended 30th April 2017
Year Agency Central Limited
2017 (Value in £)
Austin Fraser
2017 (value in £)
Fixed assets 50 40
Stock 20 25
Debtors 6 4
Bank 3 5
Total Assets 79 74
Creditors 15 24
Bank overdraft 64 50
Total Liabilities 79 74
Current ratio = current asset / current liability
Agency Central Limited 2017 Austin Fraser 2017
Net profit margin = net profit/ net sales *
100
110/250*100= 44
Net margin = 50/350*100 = 14
Gross profit margin= gross profit/ net sales
* 100
130/250*100 = 52
Gross margin = 120/350*100 = 34.28
On the basis of this provided statement which signifies and depicts the comparison between
Agency Central Limited and Austin Fraser, the net profit of a Austin Fraser is more. This stated
that management have a good command over on working which enable in order to accomplish
all associated targets in an appropriate and suitable frame. Although, they also have an
appropriate gross profit with suitable comparison in sales. Thus, another small business is good
but not as much as compared with Austin Fraser. Thus, management need to made continuous
improvement in their working so that better results and targets get accomplish in near future
context. Not only this, business could use their balance sheet as well for making a valid
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comparison between them and their major competitor. There are certain other aspects also get
articulate which should be analyse by an organisation for measuring their assets and liabilities:
Gross and Profit margin: By calculating or analysing the profit margin of this company
in order to make it the most profitable in terms of its financial counting. This is basically the
main aim for any business to be established. Also net profit is required to calculate all the taxes
paid and net sales of the firm. All these analysis help in better decision making of the businesses
and make them achieve higher targets of earnings margin with increased net profit.
Turnover analysis: The key aspects for checking the performance of businesses requires
its turnover ratio to be calculated. It is basically defined as received money or debtor which
occurs in the company every now and then (Bridge and O'Neill, 2012). In Austin Fraser there
is no bad debts and never a situation has come where collection period of account is null. This
basically symbolises that every member is paying their membership on time and also it denotes
that there is high member turnover.
Internal working of system: This may include many factors like the number of
customers that the firm has attracted. Whether they are connected to the firm on regular basis or
not. Statistics are changing for every second which needs to be conseidered (Burns, 2010). The
types of services provided by Austin Fraser also decides the count of customers for this firm. If
their services is not appreciated by people then it is quite possible that they may loose their
clients. They are required to do market study where they should monitor their own market
position which is either increased or decreased in compared to their competitors. The major task
of this organisation is to satisfy the workers and staff members and solve all their query or
problems occurring to them.
TASK 2
2.1 Steps to overcome weaknesses in businesses.
Every business has many positive characters so that they can attract many consumers but
along with that there are few weaknesses too in firm like Austin Fraser so its important to deal
with them . Weaknesses are the demerits of company which may not appear as big but can badly
affect later. Following are the several recommendations which required to implement by the
CEO of Austin Fraser so that all major weakness could be minimise as well as effective
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operations get promoted. Thus, on the basis of reflected issues, major suggestion to improve such
areas define as follow:
 Financial limitation is a major weakness of a company which need to improve in a define
framework. For this aspect, business managers have to evaluate and interpret the
statement of a company in timely basis by conducting audit. With effective and
appropriate and effective auditing of financial reports, management become able to
accomplish their targets in a suited manner. Another major problem or weakness of a company is their number of associates. Staffing
present as an emerging problem in Austin Fraser which need to improve. Thus, to
improve staff related problems which most probably arise due to not providing salary on
time, incentives etc. could be improve with effective HR practices. Thus, management
need to improvise their HR practices so that staff related problems could be deal. Lack of plan:- According to the research studies this is found that small business
organisations do not pre plan and due to its they remain at a position in which there is no
growth (Chell, Nicolopoulou and Karataş-Özka, 2010). Pre planning is compulsory if the
cited firm is seeking for growth and some amount of the profit . . Planning is a rough
deign of what will they going to be doing on next step.
 Lack of focus:- There are times when small firm tends to change their priority, issues and
goals time by time. this is make them not focus well on their objectives and could not
achieve success. (Down, 2010).
2.2 Methods to maintain performance and strengthen them.
Austin Fraser has thought of various plans and strategies to investigate the techniques of
this businesses for monitoring their performance and steps to strengthen them. Some of the plans
to be implemented in this organisation are:
First method includes maintaining and strengthening the company's policies and build a
strategic alliances. This basically defines analysing business assets and facets by comparing it
with other firms. This method actually means establishing a partnership among various firms. All
these firms after forming connection, share resources and knowledge and this help in
development of new products and building new facilities (Fassin, Van Rossem and Buelens,
2011).
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The second step taken by Austin Fraser is to grasp opportunities to grow the market size.
There should be awareness of brand for growing additional opportunity.
Another method utilized in this company while having any financial problem is of taking
some risks. Until and unless the organisation would not take any risk at correct time then great
opportunities would miss. For Austin Fraser, they use strategic arrangements to reduce the
company's risk factor by taking up big projects and with guaranteed investments. . In real
scenario, strategy used by this company is by making two firms to invest with equal share for
same project, then the percentage to loose for both of them is half from total project share. This
makes pressure to be divided among all the partners and in case of any failure there would be no
tension caused among the company people.
One very important process followed by this company to gain success and strength in its
performance is by creating franchise of the firm to other areas and sectors so that it would have a
global reach and maximum client handling scope. The location plays a very important role in
either establishing the business to new heights to make the business go down. For this firm
location is not a problem (Forsman and Temel, 2011). It has been established in lot of areas so it
will spread on large scale. Franchising require national advertising campaigns where there would
be requirement of revenue (Goss, 2015).
2.3 Scope of small businesses for expansion.
Recently, there has been a survey done for small and medium-sized businesses which are
globally very successful and essential for UK economical growth. They provide a competitive
edge in market. Methods used for expanding business which is already existing is tough at times.
It would have been already reached its peak and came down from the way in time to push back
to get into action. Those methods include:
Collaboration: This is the best method to save a business from getting collapsed or
drowned. This process involves meeting skills and experience of Austin Fraser businesses
strategies to that of another partner whose idea matched with theirs. If the companies collaborate
with each other it would increase their customer base and help in raising the awareness of brand
with their customers in the target market.
Franchising: For a business which is already existing for such firms to expand their
business they need to franchise their establishment to other reputed agencies or companies. This
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would increase their customer base and give them a larger audience to expand their income and
revenue.
Exporting: The best plan for increasing the business investments and performance is of
exporting the products to wider range of the global map. By dong this it would not only have
customers in national market but also gain economy from international market (Gronum
Verreynne and Kastelle, 2011). This will increase the revenue to a large extent. The demands of
the British products have increased immensely due to exporting it to larger market.
Deliver online: Along with the stores which are present at certain locations, if this
company provide help from online factors then the customer base would increase greatly. There
can be many advantages from this approach because extending their reach from local areas to
online services would expand their businesses immensely. Also there would be a feedback
section provided so that customer can provide suggestion and file their complaints against any
services if not appreciated. The geographical reach of Austin Fraser to customers would
improve.
Buy another businesses: This can be a major risk taking step for any business firm
where a lot of things need to be considered while buying another business. Specially for a small
business enterprise like Austin Fraser, the factors which are affected in acquiring another
company, includes amount of money, time, legal complexities and employee force (Hatten,
2015). If in case all these factors are to be managed properly then it would guarantee a great rise
and increase in the market share for that small scale company and it will lead to accelerated
growth.
TASK 3
3.1 Analysis of Businesses Objective and Plans.
For any company to improve its financial condition it is important that it must increase its
profit margin considerably and for that innovation is a must demand. To prepare strategy Austin
Frazer must understand the mission, vision and goals of business plans before launching any
product in the market.
 Vision for staffs: A company must support to its employee for their effective and
efficient performance while performing a task. Providing safety programs for the
employees and also training of employees.
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 Consumers vision: It is responsible for creating relationship with employee and
customers and providing client satisfaction as they are the end users.
 Objectives of shareholders: In this the company earn higher profits investing more and
organisation growth and development.
 Objective of Austin Frazer: It includes tasks to attract more and more customers in
providing them best jobs. Giving clients opportunities in biggest of firms and also giving
right consultation to choose appropriate carrier path. It provides increased reputation of
Austin Frazer by increasing the job satisfaction to the clients (Kitching and Smallbone,
2012).
3.2 Improvising businesses plan to make appropriate changes.
A revision of business plan is important for any organisation if Austin Frazer wants
continuous growth. It is done to overcome weakness of existing plan. Revised business plan is
made after checking environment condition, market demand and various other analysis for the
business growth. It helps in completing the task and achieving the goals of Austin Frazer in the
given period of time.
Few of the ingredients or tools for the revising business plans to incorporate appropriate
changes are:
 Strategy: In order to increase the profitability of Austin Frazer it has to consider its
market image, employees communication standards. This will increase the scope of the
company to grow more (Lambert and Davidson, 2013). In order to increase the reach use
of more promotional tools like the internet media and portals. To increase the
performance of employees. Employers have to make a committee who can check out to
the working and performance of every employee. Proper training and enhancement of
their communication skills must be included in the strategy.
 Structure: Proper structure formation of organisation will help staff understanding their
role in Austin Frazer company. There must be a hierarchy so that they could understand
to whom they are accountable to. Hierarchy ensures data abstraction and employee
understands their value at every level on which they work.
 System: System ensure the accountability of each employee. Daily reporting of the
employee to their higher officials . Proper guidance from them will help the staffs to
work more energetically and will result in increased productivity of the company.
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 Skills: Training program is essential for any organisation and in Austin Frazer most
important training is how to increase communication skills.
 Style: Laissez faire style of leadership must be applied in these consulting firms.
 Staffs: total workforce of company is to taken care of by management team. There must
be less disguised employment and should not be shortage of employees at any point of
time. Staffs needs to work somewhat in a methodology practised in an organisation.
 Shared values: every company has a value and ethics employee needs to work in the
given guidelines lines only. Sometimes in very difficult of situations company needs to
ensure values stated in the company guidelines. Respecting all cultures and ascents in any
communication prohibit discrimination and will help in increasing faith of company in
customer's mind.
3.3 Action plan for implementing changes.
Making a good action plan is a tough job. After formation of the plan implementing it is
even difficult (Malhotra and Temponi, 2010). If the strategies formed require institution to
change its policies, rules and regulations then those methodologies need to be formulated into
action only after proper rectification. In real scenario implementation activities should occur in a
manner which is suitable to Austin Fraser context and people who are being targeted and are
required for the promotion of this firm. This planning an action will lay out strategies with the
federal agency to exist, sustain, and potentially succeed in the real world. It would extend its
energy to access its goals properly. The steps of plan of making an action plan for implementing
changes in Austin Fraser includes these points:
Creation of a team: To make an effective plan there is great requirement of good team.
So the first step of making an action plan is to create a team of leaders and staff members. Those
people should be chosen with great care and specification because then the line of action will
break if the human resource would not be as affective as required. By taking permission from the
authorities, expertise, creative members of crew and so many to cause credibility and motivation
which would be very necessary for driving a successful team members. Team formed should be
multi disciplinary, should include leadership qualities, at least once member should have all the
knowledge of team planning and training techniques. And lastly there should be a member in the
team who should have good experience of the market strategies. Relevant skills are required like
data collection and its analysis and presentation features.
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Defining the problem: There should be clear description of problem statement while
defining the strategy, because if it is not considered in the starting then later there would be big
issues arising in this action plan. After identifying the problem, their challenges and
opportunities for any improvements then it would make the team plan more effectively and in
enhanced manner. Their main job is to realise what is the process all about for which the
planning strategy is made and who is basically involved to execute this plan and when and where
does this strategy would execute.
There is a need to develop and create an action plan so that changes get done in an
appropriate and suitable frame. Following are the several number of changes which have to done
and modify in an appropriate and suitable frame which signifies as follow:
Objectives Actions Priority Benefits Material
Resources
Time
scale
Responsi
bility
Success
factor
Monitori
ng
strategy
Resolve
staff
problems
Need to
develop
appropr
iate
environ
ment
Employe
es are the
only one
which
support
in order
to
enhance
sales.
Thus,
staffing
is a
major
aspect
for
business
develop
ment and
Enable in
order to
gain and
deliver
quality
service to
all users
Effective
HR
practices
which
further
assist in
beneficial
operations
One
month
HR
departme
nt
Detailed
data.
By
reduction
in
employee
turnover
10