Report: Analysis of Bestway Holdings Ltd's Small Business Enterprise

This report provides a comprehensive analysis of Bestway Holdings Ltd, a leading small business enterprise. It begins with an introduction outlining the report's objectives and methodology, followed by a detailed profile of the company, including its corporate information, mission, and objectives. A thorough SWOT analysis is conducted to identify the company's strengths, weaknesses, opportunities, and threats. The report then compares Bestway's performance with W H Smith Retail Ltd using financial ratios and other performance measures. Recommendations are provided to address weaknesses, maintain effective performance, and justify business expansion. The report also includes an assessment of existing business plans, reviews of these plans with suggested changes, and the creation of an action plan. Finally, the impact on business personnel, a plan for managing the business, and potential performance improvements are discussed. The report concludes with a summary of findings and includes references and appendices.

Small Business Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
A) Profile of the business.......................................................................................................1
SWOT Analysis......................................................................................................................3
B) Comparison of the performances of both companies........................................................4
TASK 2............................................................................................................................................6
A) Recommendations to overcome weaknesses of Bestway Holding Ltd.............................6
B) Suggest various ways to maintain effective performance.................................................8
C) Justification to expand business areas ..............................................................................9
TASK 3..........................................................................................................................................10
A) Assessment on existing plans and objectives..................................................................10
B) Review of business plans and suggesting changes..........................................................11
C) Producing action plan......................................................................................................12
TASK 4..........................................................................................................................................14
A) Impact on business personnel..........................................................................................14
B) Producing plan for managing business............................................................................15
C) Improvements in the performance...................................................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................18
APPENDIX 1 ................................................................................................................................22
APPENDIX 2.................................................................................................................................22

INTRODUCTION
Formulating effective plans and decision-making is required so that business can achieve
goals with much ease. The enclosed report deals with Bestway Holdings Ltd which is market
leader in small business enterprise sector having diversified businesses each of them performing
good in the local as well as global market. Financial ratios are being calculated by comparing
with W H Smith Retail Ltd so that financial health can be compared. Moreover, various models
of change such as Kotter's model and Kurt Lewin model of change have been discussed in this
report. Resistance of employees should be reduced up to high extent so that performance can be
enhanced and as such, company can relate with current market trends to achieve goals quite
effectively.
SWOT analysis is being conducted and also how it can be overcome by company is also
being discussed. Assessment of existing business plan and review of it is also given in this
report. Various ways to improve performance of organisation is also listed in the report.
Furthermore, various performance measures which are useful for highlighting performance of
workers have been discussed as well. Action plan is also being prepared to strengthen
performance of company and accomplish desired goals with much ease.
TASK 1
A) Profile of the business
Corporate information
Address:
2 Abbey Road
Park Royal
London, NW10 7BW
United Kingdom
Phone: [phone]
Fax: [phone]
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URL: www.bestway.co.uk
Annual sales: £3.4 billion
Total employees: 33,600
Primary Line of Business: Conglomerate company
Management Directory
Sir Anwar Pervez, OBE Chairman and Managing Director
AK Bhatti
AK Chaudhary
MY Sheikh, Secretary
ZM Choudrey, BA (Hons), ACA, CEO (Cheif Executive Officer)
AM Chaudhary, MBA
R Pervez, BBA, ACA, Director
Business Profile:
Bestway Holdings company operates as a holding company with headquarters in London, UK.
It was founded by Sir Anwar Pervez in the year 1976 and is a private company. The companies
have broad portfolio engaged in wholesale, cement, banking and pharmacy as well. The
company was nominated for Business of the year in 2013 at British Muslim Awards. It provides
drinks, juices, snacks, biscuits and tobacco. It has well-diversified business in UK and Pakistan
as well.
Location:
The registered location of business is in UK as it is business friendly city with large
opportunities to provide goods to customers and earn profits.
Mission:
The mission of the business is to be Best way to Grow your Drinks and Food business. To offer
quality products at competitive price and providing customer satisfaction
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Objectives:
To meet customer demands and needs
To provide excellent products and services
To monitor product range to strictly adhere to customer requirements
SWOT Analysis
Strengths
 The main strength of Bestway Holding company is that it has skilled and efficient
workforce which makes it successful in the business operations.
 Skilled workforce is required so that it may be able to achieve goals and objectives in
effectual manner.
 Apart from it, another strength is that it has competitive advantage which makes much
effective than rivals. Also, it has implemented well-structured strategies which provides
enough strength to move ahead of competitors in the best possible way.
 Moreover, it operates warehouses investment properties and also in new and existing
commercial properties. It has diversified businesses which makes it highly effective as it
employees diversified workforce. Thus, these strengths makes it much successful than
others (Schaper, Volery, Weber and Gibson, 2014).
 It has wide reach to customers as it has headquarters in Pakistan and UK as well. Thus, it
has more customer base.
Weaknesses
 Apart from such strengths, it has several weaknesses as well. Among the major is brand
portfolio. It is required that company should be able to strengthen brand portfolio so that
it may be able to handle diversified businesses with much ease. But, it is unable to
manage brand portfolio in effective way.
 It should make well-structured strategies and aligned policies so that it may be able to
cope up with different businesses under one roof quite easily. Complete separation of
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businesses is overcome with the help of brand portfolio as such, this weakness must be
avoided.
 Moreover, it has to strengthen market size in effective way. This is important so that it
may be able to handle future operations in the most productive way. This will help to
strengthen brand name quite effectively.
 It lacks in diversification as brand portfolio is not effective.
Opportunities
 Bestway Holding organisation has immense number of opportunities as well. It has
growing demand of products in the market. This makes it highly effective as it is
imparting quality items to customers which has resulted into increased satisfaction among
them. Thus, it has future opportunities to beat competitors (Storey, 2016).
 Wide range of new products and services are being offered by it which is a big
opportunity for the organisation to become market leader in all the different businesses
which are handled by it.
 Another opportunity is that it has global reach in various markets which is much useful
for it to even garner more markets so that it may satisfy more customers and can earn
more profits in the long run with much ease. This will provide strength to overcome
competition in effectual way.
 Gaining global reach to expand business operations in the international market
Threats
 The main threat which can harm brand image of company is that more competition. This
is the biggest threat to it as competitors are implementing strict strategies which is
increasing overall competition. The bad outcome is that organisation has to cut down
costs which is reducing profit and as such, profitability position is overall lowered.
 Technology plays important role in the production and other purpose so that company
can effectively work out things (Cunningham, Sinclair and Schulte, 2014). But, Bestway
Holding organisation is not able to strengthen technological capacity which is making
adverse effect on the production and overall reducing it.
 Facing competition from other companies such as W H Smith Retail Ltd and Naked
wines Ltd.
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B) Comparison of the performances of both companies
In appendix
Business Performance
It is the management process which helps to attain business pre targeted goals and
objectives in effective way. This is important as business has to perform well in the market by
having good financial capacity. Moreover, by implementing well-structured strategies for
production, sales, marketing, human resources and technology helps to achieve goals quite
effectively.
Types of Business performance
1. Graphic rating scales-
This is effective performance measure which is based on 1 to 5 ratings of production
oriented works. Employees' performance is measured according to the ratings achieved by them.
2. Management by Objectives (MBO)-
The performance is measured about tasks and objectives completed by employees within
stipulated time and as such, goals are reset for successful achievement.
3. Forced ranking-
Three groups are maintained in which top performers are of 20 %, average performers 70
% and lowest are 10 % of the workforce. As such, comparison is made to achieve common goals.
For this project, graph rating scales is used as it is easier method to evaluate performance of
employees (Harris and Patten, 2014).
2. Interpretation-
The financial ratios have been computed for both companies. Ratios provide clarity to
company regarding financial performance and strength of it in the best possible way. By looking
at the financial position regarding liquidity of Bestway Holdings, it can be interpreted that
current ratio is good as compared to other company. It is likely that company will be able to pay
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off liabilities and obligations within stipulated time frame. However, quick ratio of both
companies are more or less same.
Profitability ratios such as gross profit of W H Smith Retail Ltd is around 38-39 % in
2002 and 2003 financial years which shows it has good profitability position (Ratten, 2014).
While, Bestway Holdings has only 5 % in both years which means that it has to control on its
expenses for desired profit. Net profit margin is also high of W H Smith Retail Ltd which implies
that overall financial position is better of W H Smith Retail Ltd than Bestway Holdings Ltd.
Strict measures have to be implemented by company to achieve desired results and strengthen
financial health of it.
Measure Bestway Holdings Ltd W H Smith Retail Ltd
Production It has good production
techniques for achieving
demand
It also has well-structured
strategies to achieve
production.
Human Resources It has skilled workforce
dedicated to hard work.
It also has efficient workforce.
Use of Technology It is lacking in this field and
has outdated technologies.
It has effective technologies
for achieving goals.
Marketing It has not good marketing
strategies as compared to W H
Smith Retail Ltd.
It has effective marketing
strategies and policies.
Sales It has less sales as compared to
other company.
It has more sales because of
effective strategies.
Conclusion-
It can be concluded that Bestway Holdings Ltd has to improve performance so that it can
easily go ahead of W H Smith Retail Ltd which is big retail company and tough competitor to
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Bestway Holdings Ltd. Well-mannered strategies are to be implemented to achieve higher
turnover in the best possible way.
TASK 2
A) Recommendations to overcome weaknesses of Bestway Holding Ltd
According to the SWOT analysis conduced by the firm, it has developed certain areas which
shows its weaknesses.
BRAND PORTFOLIO
Brand portfolio is a synonym for diversification of a firm. In general words it simply
indicates the different kinds of brands in which a single company operates. With the SWOT
analysis of Bestway Holdings Ltd, it has discovered that, the brand portfolio of the company is
relatively weak as compared to it's biggest competitors, namely, Booker group PLC, Palmer &
Harvey Mclane Ltd and A.F Blackmare and Son Ltd. IN order to gain competitive advantage
over its competitors the organisation need to focus mainly on its diversification (Barber,
Metcalfe and Porteous, 2016).
ADVANTAGES OF BRAND PORTFOLIO:
1. Brand portfolio can help the cited firm to develop a good brand value in the market.
2. It will allow the firm to allocate its resources efficiently.
3. Through resource allocation, Bestway can get assisted in its optimum utilisation of resources.
4. More brands will lead the cited organisation to gain more competitive advantage over its
competitors in the market.
5. It may create a good image of the mentioned company in the minds of customers.
6. Good image may lead to develop a trust factor among the customers and may also help in
customer retention.
FUTURE MARKET SIZE
Every firm or organisation needs to focus on their current market share and the market size that
they need to cover in the near future. Similarly, the cited company,i.e., Bestway Holdings Ltd
needs to focus on its future market coverage (Cowling, Liu, Ledger and Zhang, 2015).
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The various in which a firm can develop a good future market can be:
1. Current market size:
The firm need to carry out a research regarding it's current market share. It need to know
which section of people are it's frequent buyers. After, concluding this, the cited firm need to
make strategies to retain those customers for a long term.
2. Scope for new market:
After recognising the current market share of the firm, it need to know the other
possibilities available for the company in the market. It can make strategies to target the other
remaining sections of the society. In order to grow its future market, it need to provide a varied
range of products to attract more people. Also, it needs to carry out some research related
activities to know about the turnover of many customers in the past (Stewart and Gapp, 2014).
After developing the scope for its new market, it needs to develop strategies for capturing
those markets.
TOWS matrix can be applied which is the extension of SWOT analysis. As it takes not
only internal environment, but focuses on external as well. Bestway Company should focus on
external influences which might prevail such as political factors, economic factors and currency
exchange rate as well. Thus, well-structured strategies need to be implemented to overcome thse
factors.
B) Suggest various ways to maintain effective performance
Through SWOT analysis, some strengths of the Bestway Holdings Ltd has been recognised are :
 It's skilled workforce
 Competitive advantages
 Diversification
In order to maintain with this strength, the cited firm need to draw attention on the
following:
 MAINTAINING THE SKILLED WORKFORCE:
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The employees of the mentioned organisation are skilled based. This allows the firm to
maintain a good prestige in the market. In order to continue with this image, the cited firm has to
retain its current employees. For employee retention, it has to follow some guidelines under need
hierarchy theory and motivation theory. As per this theory:
* Bestway should provide with all the physiological needs of the employees related to wages and
salaries.
* In order to maintain the skilled workforce, Employees should be provided timely training by
the organisation to work more efficiently and effectively (Masutha and Rogerson, 2014).
* It need to provide a timely motivation to it's existing employees. It can be done through
appreciation, incentives or anything else, which will improve the willingness of the employees to
work with the organisation and develop a kind of loyalty towards the firm.
* A safe and secured environment should be provided by the cited firm to the employees to
develop a secured feeling in their minds which will help in lessening employee turnover.
* It should also look towards the social needs of the employees which will help them to maintain
good relations with the other employees of the organisation and a kind of team spirit will result
in more returns to the organisation (Glaub, Matthias, Frese and Fischer, 2016).
 COMPETITIVE ADVANTAGE
The cited firm,i.e., Bestway holds a good competitive advantage in the market over its
competitors. In order to continue with this advantage in the long run, the firm must spent a high
amount of its investment on
Customer Retention
Marketing
Providing timely Solutions for the consumer grievances
Expansion and Diversification of it's existing market
3. INVESTMENT ON DIVERSIFICATION
With the analysis, it shows that the Bestway Holdings has a great diversified business. It has
greatly diversified and expanded it's business. In order to continue with this advantage, the cited
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firm has to make more scope for the diversification in its investment plans. Investing more in
expansion and diversification will lead to more competitive advantage to the firm, which will
lead in more strengthening of the firm (Carter and et.al, 2015).
It should make more investment on warehousing. With this, it can expand its business activities
as it can allow the producer to increase its production.
Ansoff's Matrix
Market penetration
Existing products should be sold in the existing markets to achieve more profits.
Market Development
New markets should be approached to sell existing products by Bestway Holdings Ltd.
Product development
New products should be provided to existing markets to maintain effective performance
Diversification
More new products should be sold to different markets to earn revenue.
C) Justification to expand business areas
In today's growing competitive world, a firm has to invest a huge amount in its expansion
to survive and earn profits in the market. Likewise, Bestway Holdings Ltd, which is a cement
based industry, need to expand and diversify its business activities.
The cited organisation has already expanded it's commercial activities in different areas such as,
it operates in providing wholesale services, banking services, cement industries, pharmacy and
real estate.
Firstly, the firm should focus on creating new areas for development in it's existing firms
like, in their wholesale industries, it can expand its venture by creating or attracting more
customers by providing special sales offer or by providing effective outsourcing services to the
customers.
The mentioned firm's cement industry supply materials in South Africa, Sri Lanka,
Afghanistan and India. It can expand its commercial activities to different Asian nations as well.
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