Cafe LANTANA: A Comprehensive Analysis of a Small Business Enterprise

This report provides a comprehensive analysis of Cafe LANTANA, a small business enterprise. It begins with the development of the company's profile, outlining its mission, vision, strengths, and weaknesses. The report then assesses the firm's performance using comparative measures, including sales and profitability analysis against competitors like Bon Cafe. The analysis further explores actions to overcome weaknesses, such as employee turnover and weak marketing strategies, and suggests ways to maintain and strengthen current performance through innovations, competitor analysis, and effective marketing channels. The report also includes a revision of the business plan, addressing objectives, plans, and the impact of changes on the business and personnel, ultimately aiming to improve the overall performance of the business entity. The report concludes with recommendations for business expansion into new areas.

Small Business
Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Development of profile of Small scale entity........................................................................1
1.2 Analysis of firm using comparative measures of performance.............................................3
TASK 2............................................................................................................................................5
2.1 Analysis of actions to overcome the weaknesses..................................................................5
2.2 Ways to maintain present performance and strengthened.....................................................6
2.3 Recommendation for expansion of business in new areas....................................................8
TASK 3............................................................................................................................................9
3.1 Analysis of objectives and plans of existing business...........................................................9
3.2 Revision of Business plan for application of appropriate changes......................................10
3.3 Preparation of plan to adopt the amendments......................................................................11
TASK 4..........................................................................................................................................12
4.1 Effect of changes on business and personnel......................................................................12
4.2 Management of amendments in business............................................................................13
4.3 Analysis of improvement in performance of business entity..............................................14
REFERENCES..............................................................................................................................16

LIST OF TABLES
Table 1: Company profile................................................................................................................1
Table 2: Comparative analysis.........................................................................................................3
Table 3: Sales of Five years.............................................................................................................4
Table 4: Profitability index..............................................................................................................4
Table 5: Profitability index..............................................................................................................5

Illustration Index
Illustration 1: Comparison of sales .................................................................................................4
Illustration 2: Profitability index......................................................................................................6

INTRODUCTION
Among the countries, there are various business firms operating at small scale that provide
great contribution towards GDP of nations. They are considered as Small Business
Enterprises(SBE) which are established by some entrepreneurs or single proprietor to achieve the
profits and establish their image in market (Small Business Enterprises, 2017). In this report,
analysis of various aspects of Cafe LANTANA are analysed as business consultant. Profile of
firm is developed to determine the vision and mission which are developed by firm to regulate
their business. It also determined that government of UK plays a significant role and provides
financial assistance to make them grow within the country. At last, firm’s business plan is
evaluated to understand of opportunities and rise performance of firm in market.
TASK 1
1.1 Development of profile of Small scale entity.
Small business enterprises are considered as those business firms which are regulating
their business at small scale or in their home country. It is also recognised that every business
organization have to develop their own business vision, mission and objectives in order to
achieve the desired profitability at lowest possible prices. In this context, Cafe LANTANA is a
small business enterprise that aims at providing appropriate and high-quality services to
customers. Profile of Cafe LANTANA is developed which is as follows:
Table 1: Company profile
Name Cafe LANTANA
Sector Service sector
Address 55 City Rd, 1 Oliver’s Yard, London, England
Scale Small business enterprise
Number of employees 80
For further analysis, companies vision mission and objectives is determined below:
Mission
1

Focus of this small business enterprise is to make ensure that they must provide high
quality services to consumers and develop a strong brand identity. Further, they also have a
specific mission to capture the current market share in comparison of other rivals. They also have
led more significance on achievement of profitability by satisfying their customers.
Vision
Firm operates its business with a specific vision to be successful leader in gourmet coffee
and food service industry and has their commitment towards quality, excellence, integrity,
passion and delivering services.
Strengths
Some strengths are analysed to understand the support it provides to firm in achievement of its
desired objectives. Strong brand identity: It is analysed that the Cafe LANTANA has a positive image
among its customers as they are providing high quality services to its customer and
satisfying the demand of attractive ambience. Providing new and attractive products: The cited organization has achieved a
continuous growth in hospitality as they always implement changes in their products
to attract the customers and maintain their current position in market (SWOT
Analysis, 2017). Affordable prices of products: Firm has adopted affordable pricing policies as per the
value of their products and quality through which they are more preferred by the
customers.
 Wide range of products: Analysis has determined that Cafe LANTANA serves a
wide variety of products to its customers. It has developed a strong image among the
customers.
Weaknesses
Apart from strengths, there are also some weaknesses in cited organization which could be
resolved in order to expand business. High employee turnover: Rate of employee turnover in the cafe is high as they are not
paying an adequate consideration to employees.
2

 Weak marketing policies: Research has determined that the marketing strategies of firm
are not much effective as compared to its rival firms. Less healthy products: Some products which are served by cafe to its customers are not
fit on quality backgrounds such as fast foods etc.
 Rise in Cost: Due to increase in material cost they are also increasing the prices of
products which are not suitable and have reduced the sales of firm.
1.2 Analysis of firm using comparative measures of performance.
Performance measures of firms has defined that it has focused towards achievement of
maximum profit and providing quality products to customers(Gorgievski, Ascalon and Stephan,
2011). Further, there are some other competitors of firm like Cafe portrait, Bon cafe that provide
similar products and services. In this context, Bon cafe is considered as one of the strong
competitor of cafe portrait which has also ado7pted various measures to attracting the customers
of firm (Bon cafe, 2017). Comparative analysis of both the cafe is determined below in the year
2016:
Table 2: Comparative analysis
Financial year
2016
LANTANA cafe Bon cafe
Rate of turnover 8% 6.%
Rate of
Absenteeism
10% 9%
Job offers 18% 20%
Job satisfaction 70% 50%
Profitability : £621,000 : £456,000
3

In this analysis, there four different area are considered which has determined that the
performance of cafe LANTANA is more effective as they have achieved more profitability. It is
also analysed from the table that the employee turnover has increased as compared to Bon cafe.
Although to give more understanding the sales achieved in five years is determined below:
Table 3: Sales of Five years
Year LANTANA cafe (£) Bon cafe (£)
2016 363 321
2015 331 303
2014 321 271
2013 315 241
2012 269 223
4

In this comparison, it has been determined that both the firms have achieved continuous growth
in their sales of products and services. However, in all the years it has been determined that firm
has achieved more sales as compared to the LANTANA cafe. This clearly defines that firm the
performance level of firm is satisfactory and high as compared to other rivals. They are able to
develop their strong brand equity among the customers which is their prime target.
For further analysis profitability of firm is determined which they have achieved in last five
years.
Profitability of Cafe LANTANA
Table 4: Profitability index
Year Profit after tax. (£) Profit before tax (£)
2016 621 496
5
04/07/1905 05/07/1905 06/07/1905 07/07/1905 08/07/1905
0
50
100
150
200
250
300
350
400
LANTANA cafe (£)
Bon cafe (£)
Illustration 1: Comparison of sales

2015 567 453
2014 530 424
2013 456 311
2012 395 290
Five year's profitability of Bon cafe
Table 5: Profitability index
Year Profit before tax (000) Profit after tax (000)
2016 570 456
2015 550 440
2014 505 404
2013 389 364
2012 363 316
6
04/07/1905 06/07/1905 08/07/1905
0
100
200
300
400
500
600
700
LANTANA cafe (£)
Bon cafe (£)
Illustration 2: Profitability index

From the comparative analysis, it can be said that the firm has obtained profits at increasing rate
and they have an opportunity to expand their business operations.
TASK 2
2.1 Analysis of actions to overcome the weaknesses.
For continuous achievement of growth and development of positive image among the
target customer is essential and the business entity has to adopt various measures or actions to
remove the weaknesses (Goss, 2015). There are some actions identified which are mentioned
below:
1.) Increase pay scale: Most appropriate of resolving the problem of employee’s turnover is
to increase their consideration and providing extra benefits to enhance their motivation
towards the work (Storey, 2016). Further, to maintain quality or taste in products it is
essential for firm to retain the qualified employees at job. In this context, the turnover
workforce in Cafe LANTANA is high and to overcome this weakness they have to fulfil
their demand and increase their pay scale.
2.) Non-monetary benefits: These are also considered as very important to retain
employees in the organization (Bridge and O'Neill, 2012). Managers of cafe should
provide recognition and appreciations to key performers and other employees and
develop a positive relationship with them. It helps in reducing the problem and cost of
hiring new employees in firm.
3.) Focus on health constraints: Continuous changes in life style of individuals has
changed their preference towards consumption of healthy products (McKelvie and
Wiklund, 2010). With reference to this, it is considered as significant for cited business
entity to concentrate on providing healthy products rather than junk food. Through
application of new and innovative ideas, they can produce some healthy products for
customers. This will provide a great support to entity to attract new customers.
4.) Appropriate pricing policy: For the resolving the weakness of rise in prices, firms have
to apply effective plans to maintain adequate prices for their products as compared to
7

other rivals (Ngugi, Johnsen and Erdélyi, 2010). In this, to overcome the problem of
pricing they have to select a strategy of pricing to attain maximum profit.
5.) Effective marketing plan: It is also considered as an effective method to achieve the set
standards of sales and profit margin (Morris and et.al., 2010). Appropriate strategies must
be adopted by cafe LANTANA to motivate the target customers. Analysis has identified
that firm has targeted young generations and working-class people to increase their sale.
Moreover, firm has to develop an marketing plan to promote their business between their
target people.
2.2 Ways to maintain present performance and strengthen it
From the comparative analysis, it is observed that firm has achieved a continuous growth
in UK and expanded rapidly expanding their business within country (Berends and et.al., 2014).
In this context, various ways are analysed that firm should follow to maintain existing
performance and develop plans to increase their standards. These are some ways through firm
can maintain and rise its performance such as:
 Innovations: It is considered as most effective dimension for every firm to achieve
success in their business and developing strong market position in industry. It also
considered as application new ideas and techniques to make increase the reliability of
existing products (Zortea-Johnston, Darroch and Matear, 2012). In order to hold the
current performance, the firm has to apply some innovations in their products like coffee,
refreshments, dishes etc. Creative ideas of employees should be taken by Cafe
LANTANA to apply changes in their products as they understand the preference of
customers. Implementation of changes will attract customers towards the firm and
influence them to purchase the products.
 Competitor analysis: It is considered as most significant factor that every business taken
in to consideration to meet the set standards of performance in market (Burns, 2010). In
this context, it is essential for the Cited organization to analyze various strategies of rival
firms. Bon and cafe portrait are the two main rivals which are considered by firm as a
threat towards their business operations. It is essential for firm to analyze their policies to
8