Analysis and Recommendations for Small Business Enterprise: Levi Roots

This report provides a comprehensive analysis of Levi Roots Reggae Reggae Foods Ltd, a small business enterprise. It begins by examining the company's structure, strengths, and weaknesses, including its origins, product line, and market position. The report then compares the company's performance to a similar business, highlighting key financial metrics and operational efficiencies. Furthermore, it proposes changes to improve the business functions of management, recommending strategies to overcome weaknesses, maintain existing strengths, and expand into new sectors. The report assesses current business objectives and plans, suggesting revisions and incorporating plans for proposed changes. Finally, it discusses the influence of these changes on the business operations and professionals, outlining how these changes can be effectively managed and enhanced over time. The report offers a detailed examination of the company's business strategies and recommendations for future growth and development.

SMALL BUSINESS ENTERPRISE
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Table of Contents
Introduction................................................................................................................................3
LO1 Investigating the interpretation of small business enterprises...........................................3
Task 1.........................................................................................................................................3
Mentioning the structure of the company along with explaining the strengths and weaknesses
of the company (AC 1.1)............................................................................................................3
Comparing the performance of the organisation with another similar business organisation
based on the human resources and other organisational functions (AC 1.2).............................4
LO2 Proposing various changes in the business to improve the functions of management......6
Task 2.........................................................................................................................................6
i. Recommending the some justification in order to eradicate the weaknesses of the
organisation (AC 2.1).................................................................................................................6
ii. Analysing the different processes that will help in maintaining the organisations’ existing
performances and strengths (AC 2.2).........................................................................................7
iii. Suggesting the sectors where the business can be expanded providing justification to that
(AC 2.3)......................................................................................................................................8
LO3 Revising the entire objectives of the business along with incorporating numerous plans
for the proposed changes............................................................................................................9
Task 3.........................................................................................................................................9
i. Assessing the present business objectives along with the business plans (AC 3.1)...............9
ii. Reviewing the entire business plan and suggesting the parts where changes are required to
be made (AC 3.2).....................................................................................................................10
iii. Preparing a plan for incorporating the changes in business (AC 3.3)................................10
LO 4 Observing the numerous changes on the business operations of the organisation.........11
Task 4.......................................................................................................................................11
i. Mentioning the influence of the changes upon the business and its professionals (AC 4.1)11
ii. Planning in what way the changes are managed in the business (AC 4.2)..........................12
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iii. Explaining the enhancements in the business over the past years with the help of graphs
like trend graph (AC 4.3).........................................................................................................13
Conclusion................................................................................................................................14
Reference List..........................................................................................................................15
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Introduction
Small business enterprises are those business firms that are private or solely owned by the
individuals that have fewer revenues in one financial year. These enterprises have less
number of employees and thus, these businesses cannot grow at a rapid rate, unlike the big
enterprises. The organisations have set fewer targets for their business because they have very
less number of employees in the firm and they have fewer funds. The return from small
business enterprises is less and the business needs huge time to thrive more in the end of the
business. In this study, Levi Roots Reggae Reggae Foods Ltd has been taken in order
understand more about the small sized business enterprises. The small-scale enterprises serve
the people with their basic needs regularly in the local market so that people are never
deprived of the basic household products of theirs. Moreover, these small sized enterprises
set forth the economy of the country by providing employment to the local people of that
particular place.
LO1 Investigating the interpretation of small business enterprises
Task 1
Mentioning the structure of the company along with explaining the
strengths and weaknesses of the company (AC 1.1)
Levi Roots Reggae Reggae Foods Ltd is a private limited organisation with chairperson
named as Keith Valentine Graham. The chairperson is popularly known as Levis Roots, who
was a musician by his trade. The owner started the business initially from a barbeque sauce
named Levi’s Roots Reggae Reggae Sauce. The proprietor sold this sauce in the year 2006 in
Notting Hill Carnival and then he took his sauce in food trade show. A BBC producer
observed him and suggested him for appearing in Dragons’ Den. The business became
popular and he received an order of huge amount from various other big organisations. The
owner opened the first restaurant in the year 2015 in the Westfield Stafford city. The strength
of the business of Levis’ Roots is a large number of people like the quality of sauce that is
prepared in his restaurant. This can bring immense profitable revenue for the organisation
along with increase the economy of the country (Levi Roots Official, 2017).
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The weakness for the organisation is the presence of other competitors, who have more funds
than this organisations and those peers can bring new innovative products that might hit the
business of Levis’ roots very hard. The main objective of Levis’ Roots is that the firm wants
to deliver their products far outside the country and incorporate new items into their menu so
that people can get attracted towards the products of Levis’ Roots. Altman et al. (2010, p.96)
stated that small sized business have the restrictions of the people of that particular place
because they have to deal with numerous type of people and their demands. Levis’ Roots
follows the similar issue and thus, cannot meet the demands of the people. The
responsibilities of the manager of the organisation are to look after the working procedure of
the employees along with providing the best support to the workers, as there is less number of
employees in the firm. The manager performs the duty of managing along with motivating
the workers so that they can fulfil the organisational targets. The internal and external factors
affecting the Levis’ Roots are technology required for growth is not present and corruption
along with competition respectively.
Comparing the performance of the organisation with another similar
business organisation based on the human resources and other
organisational functions (AC 1.2)
Please refer to the below screenshot and the related excel file for the above solution.
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From the above screenshots, it is visible that the business of Levi Roots is quite weak
compared to the local business of the geographical area. This fact is quite visible from the
fact after analyzing the data of Levi Roots with that of the Premier Foods. The Gross profit
ratio of Levi Roots for the year 2014 is lower than that of Premier Foods by 20% i.e. a double
amount which depicts that the operational performance of this business is quite low compared
to the other businesses in that area. However, however, the operating profit ratio is quite
higher than that of the Premier Foods due to the reason of decrease in the operating advantage
and the firm has been able to control the fixed costs. The sales for the year 2014 are also
lower than that of the Premier Foods the reason being a lag in the marketing management.
Although it has also been depicted that the performance of the current year has improved as
compared to the last year. The Gross Profit ratio has risen as compared to that of the previous
year, which reveals that the marketing efficiency of the business has increased (Sian and
Roberts, 2009, p.289). It has also been observed that the operational efficiency of the
business has improved as compared to the previous year, which also depicts that the business
has been able to effectively control the fixed costs of the entity.
The sales have also increased for the year 2015 and have been in parity with the industry
averages. It is also to be noted that decreasing of the product prices has to lead to the increase
in the sales of the company.
The number of employees of the company has also increased as compared to that of the
previous year, which depicts that the Human resource Management of the entity has
improved and the firm has been able to achieve the operational efficiency.
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LO2 Proposing various changes in the business to improve the functions of
management
Task 2
i. Recommending the some justification in order to eradicate the
weaknesses of the organisation (AC 2.1)
Benzing and Chu (2009, p.61) stated that weaknesses will be present in the business but the
weaknesses need to be analysed for bringing new changes in the organisations so that the
profit can be maintained. Levis’ Roots need to take the advice of the experts and can perform
a talk over the weaknesses that they organisation has. The expert's advice can be worked
upon on along with motivating the employees to work with more efficiency so that the
organisation can gain profit and thus, can bring innovativeness in their products. Levis’ Roots
have to come up with new business strategies for giving a tough competition to the peers. The
managers of Levis’ Roots can work collectively with other employees so that customers
demand can be fulfilled at a much faster rate. This will help in overcoming the weakness of
the organisation regarding the manufacturing of new products for the customers. Alternative
strategies can be incorporated in business if the strategy that is developed fails due to some or
other reasons (Bianchi et al. 2010, p.416). Levis’ Roots need to undertake an alternative
strategy of asking the help from the big organisations to fulfil the targets of the organisation.
The resources need to be made available by the owner of Levis’ Roots so that the workers
can manufacture good and sustainable products.
The organisation can adopt the technique of outsourcing by handing over the payroll and debt
collection to the other big organisation so that the employees can focus on the production
part. This will bring huge benefits for Levis’ Roots and the weaknesses can overcome.
Blackburn et al. (2013, p.10) opined that small sized enterprises need to be very effective in
producing their products because it will help the big enterprises to invest in the business of
small enterprises. Levis’ Roots need to maintain the quality of their products at any cost so
that the organisation can fulfil the demands of customers and can get the funds from big
organisations too (Levi Roots Official, 2017).
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ii. Analysing the different processes that will help in maintaining the
organisations’ existing performances and strengths (AC 2.2)
In order to hold the similar growth of the organisation, it is essential that organisational
objectives be set appropriately for the expansion of the business in the respective sectors
(Bridge and O'Neill, 2010, p.963). Levis’ Roots need to understand the business market
properly before taking measures for the growth of the organisation. The organisation needs to
analyse the performance records properly so that new changes can be taken for its benefit.
The strength of the Levis’ Roots is that the quality of food delivered is unique and that is
why; more people can be attracted towards Levis’ Roots by bringing innovation in the
products. The organisations have to maintain good relation with the customers and the
suppliers of the resources so that no issue arises regarding the products of the organisations
(Choshin and Ghaffari, 2017, p.70). That is why; Levis’ Root needs to maintain the proper
relationship with the suppliers of the resources along with the customers for making a brand
image in the future market.
It is required that the organisation need to explore the new opportunities that they can have
and try to grab those. The market share of Levis’ Roots is less so it is essential that the
organisation incorporate new strategies in the business for maintaining a good position in the
market. Risk assessment needs to be done before incorporating any strategy in Levis roots
because it will help in running the business smoothly. Clegg et al. (2017, 580) commented
that for every business, it is the great requirement that expansion of the business is done
within the national boundaries along with crossing the borders. Levis’ Roots have to identify
the target markets for delivering their products and then start the exportation of the products
further in the niche markets. New projects need to be started so that the business can be
glorified in the end. Not only taking up the new project is the best answer for increasing the
profit but also the cost and finance part of the projects need to analysed for better results in
the new projects (Curran and Storey, 2016, p.458). The resources required for the projects
need to be understood by the small firm so that those can be arranged with the stipulated
time.
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iii. Suggesting the sectors where the business can be expanded providing
justification to that (AC 2.3)
Levis’ Roots can start can project of expanding their business in the local market along with
expanding in the super markets. This needs to be evaluated properly so that no loss can
obstruct the way to the success of Levis’ Roots. The personnel of the organisation and the top
management need to work on their new project collectively for bringing magical results for
the organisation. As per Davies and Crane (2010, p.130), the top management of the small
sized enterprises need to do the auditing of the skills of the employees of the enterprise so
that the employees’ efficiency can be judged and properly analysed before asking to
participate in the projects. Levis’ roots need to undertake this technique so that the
organisation can be benefited and the employee's skill gap can be properly understood. If the
firm finds any such gap then the top management of the firm provide training to the
employees so that they can perform in a far better way than before. When the employees will
be accurately prepared for performing any task, then they can work with more interest in the
workplace.
Moreover, self-evaluation is must for better understanding about the capacity of the
employees of their own. After conducting research in these areas, the small organisation has
to understand properly about the cost factors and in what way it can bring profit to the
organisation. If Levis’ Roots found that they have minimum funds then it is required that the
organisation asks for aids from the financial institutions. The organisation needs to make sure
that they can gain profit from the new project and thus, repay the amount to the financial
institutions. Self and staffs development is beneficial for the organisations because it can help
every employee along with the top management to perform in the better way so that the
organisational goal are achieved at a rapid rate (Duncan and Natarajarathinam, 2016, p.180).
Levis’ Roots need to understand the benefits of the development so that the expansion of the
business can be done in an organised way.
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LO3 Revising the entire objectives of the business along with incorporating
numerous plans for the proposed changes
Task 3
i. Assessing the present business objectives along with the business plans
(AC 3.1)
The current performance of Levis’ Roots is quite good and the small sized organisation is
gaining popularity in the local market. It is not the only plan of the business because the main
Motto of the business is to expand further and gain huge profits. This objective of the
business is required to be fulfilled rapidly so that the business can flourish in the coming
years. Durkin et al. (2013, p.720) demonstrated that when the business objectives are high,
then the performance circle needs to be developed more for gaining success in the business.
Levis’ Roots need to make changes in the present business objectives and can incorporate the
objective of expansion in the foreign markets as soon as possible. The entire business plan
needs to be renovated so that Levis’ Roots can gain fruitful results. The chairpersons of the
organisation have to gather more funds for the organisation and should try to increase the
number of employees.
This will help in reaching the organisational goals at a faster than the present business plan of
the organisation. When the business objectives are renewed for the good purpose of the
organisation, the impacts is left on the existing business plan of the organisation (Durmuşoğlu
et al. 2012, p.689). The existing business plan of Levis’ Roots is to serve the local customers
in a better way by delivering quality products. When the business objectives are set for
meeting the demands of the customers all over the world, the business plan has to be made in
a way that similar good quality need to be maintained but the numbers of customers served
will be increased to millions and trillions. This will affect the entire working condition of the
employees along with that the efficiency in the work of the employees will be increased
more. The new structure in the organisation will be formed if the new business plan is
incorporated in the business (Esteves, 2009, p.30). Levis’ Roots need to do the same for
bringing a change in their business sector.
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ii. Reviewing the entire business plan and suggesting the parts where
changes are required to be made (AC 3.2)
The business plan of the organisations needs to be reviewed so that no flaws can remain in
the business thus hampering the goals of the business firms (Franco and Haase, 2010, p.504).
Levis’ Roots have various organisational functions like sales and marketing, human resources
and financial functions. This efficiency of the functions needs to be judged properly so that
the organisation can bring constructive outcomes in their business. If the organisation find
any issues regarding the human resources or financial part then those needs to be resolved
according to their requirements. The business plans are required to be used in a proper way so
that the requirements can be met in a proper way. The evaluation of the business plan is
required to be done so that good profit can be brought in less time, demands of the customers
can be fulfilled by maintaining the proper quality of the services and ensuring long-term
interests for the customers (Giaoutzi et al. 2016, p.558). After the evaluation, the changes
need to incorporate as soon as possible in the plan so that Levis’ Roots can serve large
numbers of customers in a proper way.
The changes that are required to be done should be done within the budget of the organisation
and thus, fewer funds are utilised in this case. Business forecasting is required to be done by
Levis’ Roots so that good information and assistance can be given in the decision-making
process. The business forecast can help in making good decisions and thus, prepare proper
presentation of the business for understanding about the growth revenue of the organisation
(Gronum et al. 2012, p.260). Levis’ Roots will be immensely benefited and the organisation
can anticipate about their success in the foreign markets. Preparation of the business forecast
needs to be done in an accurate way so that the firm can make a good market share in the
upcoming financial years. Moreover, Levis’ Roots need to analyse output and manufacturing
functions of the organisation finally so that the new business plan can bring productive results
for the organisation.
iii. Preparing a plan for incorporating the changes in business (AC 3.3)
Implementing changes in the business are required to be properly planned so that the business
can run in a smooth way (Gunasekaran et al. 2011, p.5500). Action plans help in running the
business in a right way because the entire profit or loss of the business is dependent on the
plans that are taken. Levis’ Roots can develop the action plan of working harder so that they
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can produce long-term beneficial products for achieving the goals of the organisation. The
organisation can implement new technologies in their business so that the top management of
the organisation can monitor the entire production process. New technology will help the
chairperson of Levis’ Roots to supervise the working procedures for the better understanding
of the progress that is occurring in the business. Huang et al. (2013, p.1270) opined that there
is the huge need for evaluating the performance of the employees because it makes the
employees work more cautiously.
The top management of Levis roots needs to set the milestones regarding the organisational
goals and then examine the performance of every employee, workers and staff. It is important
that deadline must be set for the production work of the organisation so that the supply to the
market can be done in the mentioned time (Jenkins, 2009, p.22). Similarly, the deadline needs
to be set in the action plan so that no one can work reluctantly in the firm. Super markets are
very big and there is a great necessity of serving the customers in the super market properly,
thus Levis’ Roots have to understand the requirements of those customers. This will help in
providing quality service to the customers and Levis’ Roots can gain profit in the super
markets too. The action plan has to execute properly so that the firm can work on the correct
track thus bringing positive results in the business sector.
LO 4 Observing the numerous changes on the business operations of the
organisation
Task 4
i. Mentioning the influence of the changes upon the business and its
professionals (AC 4.1)
The changes have brought a great revolution in the working techniques of the employees of
Levis’ Roots and the levels of business were changed entirely. Johnson (2017, p.3769)
informed that when changes are done in the business patterns, then the financial functions
and the human resources of the organisations changes totally. The similar thing happened
with that of Levis’ Roots and the morale of the personnel of the organisation changed totally.
They started to think in a more innovative way of the business and started performing the
allocated jobs in the much better way. The workloads have increased upon the employees but
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