Carwow: Small Business Enterprise Analysis and Recommendations

This report provides a comprehensive analysis of Carwow, a small business enterprise operating in the UK car market. It begins with an introduction to small business enterprises and then focuses on Carwow's business profile, including its strengths and weaknesses, identified through a SWOT analysis. The report then delves into business analysis, using comparative performance measures such as quality audits, customer satisfaction, and financial records. It examines Carwow's financial statements and compares its performance to competitors. The analysis continues with recommendations to overcome business weaknesses, improve organizational performance, and identify opportunities for expansion. The report also assesses Carwow's current objectives and plans, proposes revisions, and outlines an action plan for implementing changes. Finally, it evaluates the impacts of planned changes on the organization and its workforce, providing ways to manage modifications and monitor improvements. The report concludes with a summary of findings and recommendations for Carwow's future growth and success.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business profile of small business enterprise with their strengths and weaknesses.............1
1.2 Business analysis by taking help of comparative measures of performance........................3
TASK 2............................................................................................................................................5
2.1 Ways and recommendations to overcome business weaknesses..........................................5
2.2 Manners to maintain and improve current organizational performance...............................6
2.3 Recommendations for new areas in which company can expand its business......................7
TASK 3............................................................................................................................................8
3.1 Assessment of current objectives and plans of business.......................................................8
3.2 Revise organizational plan to incorporate proper changes...................................................9
3.3 Action plan to apply modifications within work place.......................................................10
TASK 4..........................................................................................................................................10
4.1 Different impacts of planned changes on organization and its work force.........................10
4.2 Ways to manage modifications within work place.............................................................11
4.3 Methods to monitor improvements in organizational performance....................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Small business enterprise are those organizations which hire employees below certain
limits. In simple words, due to its tiny size it hires a limited number of workers. It can be in form
of sole proprietorship, partnership and corporations. The are called as ''small'' so that they can
take financial assistance from authorised or legal bodies. Also, they get relaxation in tax policies.
There are some other methods like sales, annual revenues, assets and net profits which classify
small business (Blackburn, Hart and Wainwright, 2013). Grocery stores, carpenters, guest
houses, photocopy shops and electricals stores are comes in the category of tiny business. In
present time, small enterprises are contributing more in national economy as compare to large
organizations. As, they creates many job opportunities for those people who are employed, this
helps them in improving and developing their living standard. This project report is based on
''Carwow'' which is a provided great platform for people where they can buy cars from its
franchise dealers. It provides required information to its clients such as car model, features and
specifications. In this report, organizational performance of this company has been analysed.
Also, some proposed changes has been introduced which can improve its management and future
performance (Ackermannand Audretsch, 2013). Business objectives and plan of cited firm has
been revised so that it can incorporate proposed modifications. At last, affects of those changes
on organizational functions has been evaluated.
TASK 1
1.1 Business profile of small business enterprise with their strengths and weaknesses
Small business enterprises are those company which have a few number of employees
and which operates to fulfil needs of local people. Carwow is a well known tiny company which
is located in London, United Kingdom. It helps people in purchasing cars from authenticate car
dealers. On the behalf of their customers, it negotiates with different car sellers. It ask to its
clients that what kind of specifications and features they want in their car, then search for
suitable car for them (Gunasekaran, Rai . and Griffin, 2011). This enterprise have a website
which provides appropriate information to people about car prices, models, qualities and
features. It have great presence in European market and now it is making future plans about
global expansion. This tiny firm have sold approx 20,000 cars by January 2016. Carwow was
launched as carbuzz which was a car research site. It used to provide expert reviews, videos and
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pictures to clients so that they can find vehicle as per their requirements. Back in 2013, it
launched itself as car buying platform. This company have various strong points and weak points
which can affect its future performance in market place. SWOT analysis is a method through
which strengths, weaknesses, future opportunities and threats of this enterprise can be evaluated
in effective and systematic manner. SWOT analysis of cited firm is follows as under:
Strengths: It involves those internal strategic factors which makes a company strong in market
place. Different strengths of mentioned organization are follows as under:
 This enterprise have strong brand image which helps it in attracting a huge number of
customers.
 This enterprise searches for cars as per the requirements of its clients which helps it in
providing better customer satisfaction.
 Excellence in providing vehicle safety and security
 It searches for those cars who have low cost to drive and have long durability
 It have strong presence in United Kingdom
Weaknesses: It includes those aspects of company which makes it weak in market. Drawbacks
of this company are given below:
 Biggest disadvantage of this organization is that it have poor bran portfolio because of
its fewer sales.
 This company does not have effective management system
 Sometimes this enterprise become unable to provide cars as per the requirements of
customers which damage its brand reputation.
 It have to pay high employee turnover
 Also, it have limited market growth because it have limited market share.
 People have less trust in this enterprise because its does not perform its social
responsibilities.
Opportunities: Carwow is a car dealer company which is totally based on technical forces.
Most important opportunities of this enterprise are follows as under:
 This enterprise can attract a huge number of customer by providing them latest car
models.
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 This company can increase its market share by expanding its business at international
level. For better growth it can enter into china's market.
Threats: It involves those factors which can minimise organizational performance. Major
threats of organization are discussed below:
 In present time, there are various car dealers in United Kingdom which is increasing
high competition.
 Increment in government regulations are increase their cost.
Hence, these are the major strengths and weaknesses of Carwow which should be
considered by its mangers before making any business decision (Blackburn, Hart and
Wainwright, 2013).
1.2 Business analysis by taking help of comparative measures of performance
To evaluate business activities and practices, it is highly important for company to
measure its performance. It can be done by gathering, evaluating and reporting individual's and
organisational performance. It is very much important for it managers to asses each and every
activity of company so that no difficult situation or problem will be arise within work place. In
present time, Carwow is dealing with many difficulties just because of its market contenders
which are which are CarMax, Broadspeed, Navdy, Mojio, SellAnyCar.com and CarlQ. There are
different ways through which organization can measure its organisational performance. Some of
them are mentioned below:
Quality audit: It that quality system which involves internal or external quality auditor. It
plays a significant role in organisational growth and development. Basically, it helps in analysing
that products and services of company are providing enough satisfaction to customers or not.
This system defined that internal monitoring process if related with business activities and
practices. With the help of quality auditing process Carwow can measure its product's quality
and also can make any required changes in their procedures, which can help it in achieving
organizational goals and objectives in effective manner (Yang, Hong and Modi, 2011). So, it can
be said that quality audit is best tool by which company can measure its actual performance and
also can improve it in appropriate manner.
Customer satisfaction: Every business enterprise is establish to earn profit which can be
possible by providing enough satisfaction to their customers. Level of customer satisfaction can
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also help organization in determining their performance in market place. If company will highly
satisfied their clients then it can gain completive advantage in market place as well (Ahi and
Searcy, 2013).
Financial records: Every organization prepare their financial statements which help
business mangers in determining financial position of company in market place. By making
fiscal reports, Carwow can estimate their future budget as well. Also, it is a best method of
performance measurement. By comparing financial reports of enterprise with other company,
Carwow can measure its performance. Fiscal statement of cited firm is follows as under:
(Source: Company House Beta, 2017)
Hence, this is the financial statement of Carwow which represents that this company have
good market position and also it is growing very well in terms of income. In 2015 it have capita
of 2,614,888 which it increase within one year by 3,627,667 pounds. This enterprise can
compare its financial position with its competitor Broadspeed.
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Illustration 1: Financial Statement Of Carwow Limited

(Source: Company House Beta, 2017)
Moreover, this the financial record of Broadspeed which helps in evaluating that, its
financial position is not as good as Carwow.
TASK 2
2.1 Ways and recommendations to overcome business weaknesses
Strengths and weaknesses are those part of organization which helps as well as provides
limitation to managers to perform or to not perform a specific task. So for having better growth
and development, enterprise should evaluate its strong and weak points so that it can make
effective decisions for its future. To resolve business problems and to overcome weaknesses,
managers of Carwow should firstly determine the cause of weakness. This enterprise have
different tools and procedures which helps it in removing its organizational problems. Above
mentioned small business enterprise have strength of around 50 workers (Shambour and Lu,
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Illustration 2: Financial Statement Of Broadspeed Limited

2011). Its workers feels like they have huge work burden which makes them fail in operating
their duties and responsibilities. So, to remove this issue managers should assign one task to one
person so that he will not get confused and perform his duties and responsibilities in best way.
By following this procedure, work flow of enterprise can be distributed in appropriate manner.
The other problem of cited company is that high market competition, due to globalisation a huge
number of companies has entered in United Kingdom which is giving tough challenge to
Carwow. This firm can achieve competitive advantage, by making good relations with its
customers and by using effective marketing strategies such as promotion and advertisement. The
other weakness of this cited firm is that it have certain number of market share, but by expanding
its business in Asian market it can resolve such kind of issue. In modern world, almost all
companies are performing social responsibilities, just to attract new customers. Cited firm should
also perform CSR activities because this can help it in building strong reputation in market place.
Hence, these are some important recommendations which can help Carwow in removing its
organizational weaknesses. Apart form this, there are some other points which can also helps in
resolving business issues, these are discussed below:
 Positive thinking of mangers towards organizational problems. People with positive mind
set can resolve any kind of personal as well as professional issues (Christensen, Wells
and Cipcigan, 2012).
 By making effective plans, business persons utilise its resources in best manner and also
can remove problems which can arise in future.
2.2 Manners to maintain and improve current organizational performance
Effective business strategies can lead company to higher level of success. Also, taking
help of different tools and procedures enterprise can improve and develop its organizational
performance in market place. For achieving organizational goals and objectives in effective
manner, managers should assess each and every activity of business enterprise. By making
strong relation with general public, company can remove half of its problems. Also,
merchandising strategies can also help enterprise in promoting and advertising its different goods
and services in market place. New emerged firms are highly successful just because of their
smooth relations with public and their innovative business ideas. So, to compete with new
enterprises, existing companies should re-innovate their products, services, plans, objectives and
strategies so that they can build strong position in market (Wright, 2013). To maintain
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organizational performance, Carwow should use those channels of communication which are
associated with technology like social media, online advertisement and so on. Also, it can focus
on its current strengths and improve those aspects in which it is weak. By giving core attention to
innovation, this cited firm can increase its financial profits and also can decrease its operational
expenses. To attract web users Carwow can upgrade its official site. Apart from this, there are
some other components which can help organization in maintaining its existing organizational
performance and those are given below: Performing CSR activities: It is that social responsibility of organization which it
performs to save its environment and to improve social welfare. In present time, company
perform CSR activities not to protect their environment but to make good position in
market place. High quality: By providing cars as per the requirements of customers, Carwow can
maintain and also improve its existing organisational performance.
 Customer satisfaction: If enterprise will provide better satisfaction to their customers
then they can achieve their organizational goals and objectives in effective manner. Also,
it influence a positive impact on company's reputation (Ljungholm, 2016).
Hence, these are some other points which also help company in managing their current
performance in market place. By following above mentioned aspects, cited company can create
strong goodwill of enterprise in the mind of general public which will helps it in managing and
improving its current business position.
2.3 Recommendations for new areas in which company can expand its business
International expansion is a great option for enterprise, because with the help of this it
can expand its business in all over the world and can enhance market share. Carwow is a car
platform where customer can find cars as per their requirements. This company use technical
tools for its marketing activities such as online advertisement, to attract people. To have large
market share, this company can provide its services in developing and developed countries. By
doing this, it can have strong customer base. This company does not have enough financial
resources but it can take help from government and increase its financial profit (Zaitseva, 2013).
There are many areas in which, cited company can expand its business and lead to higher
level of success. Cited company highly requires to make relation with general public as it can
sell more cars by making good networking. There are some recommendations which can help
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this enterprise it expanding its business. By taking help of Ansoff Matrix, cited firm can cover
great market share. There are two major areas by which it can enter into new markets and these
are follows as under:
Expansion in and outside the country: Carwow have its presence only in United
Kingdom which is a biggest weakness of this company. For better growth and development,
enterprise can segment its market in new regions, which can help it in increasing its market
share. This company can take franchise of large scale car manufacturer companies, by doing this
it can build a strong position in market and also can delivery its services in new areas.
Diversify in new fields: This enterprise provides cars as per the requirement of customers
but by entering into manufacturing and hospitality sector its can provide vehicle services to
hospitals and corporations. Both sectors can help this enterprise in its future growth and
development (Condrat and Boboia, 2012).
Hence, these are the two major aspects which helps business enterprise in enhancing
their market share and also provide them opportunity to sell their products and services in all
over the world.
TASK 3
3.1 Assessment of current objectives and plans of business
Every business enterprise have their own goals and objectives which it achieves by my
implementing different strategies and procedures. To exist in competitive market place,
organization have to set smart targets which can be easily achieved and will influence positive
impact on organizational performance. Basically, business objectives are the blueprint of
organization's mission and vision. Different motives of Carwow are discussed below:
Increase market share: The biggest objective of this company is that it wants to increase
its market share by 10% within next year. It is already enhancing its financial profit day by day
so, to increase market share will not be tough task for it (Basin, Burri and Karjoth, 2014).
Global expansion: As, this company as presence in only UK market but now it wants
international expansion. By entering into new markets or countries it can attract a huge number
of people and also can strengthen its customer base.
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Customer services: Carwow can grow in effective manner only if it will satisfy customer
demands. So, this is another important objective of this enterprise. Without, providing customer
satisfaction it can not become market leader and also can not increase its productivity.
Brand image: Above mentioned enterprise wants to build strong corporate image in
market place. It can be possible if it will perform corporate social responsibilities and provide
better gratification to its clients (Lohrmann, and Reichert, 2012).
Furthermore, these are some most important objectives of Carwow which it achieves by
making effective business plans and and procedures. The main plan of this company is that it
wants to target new market for delivering its services and also wants to diversify in new fields.
3.2 Revise organizational plan to incorporate proper changes
Business plan can defined as a formal statement of all organisational goals and
objectives. Also, it provides planning so that they can be accomplished in appropriate manner. It
collects all those information which are related to company and background and can be helpful
in achieving desired results (Cummings and Worley, 2014). There can be two types of plan, first
are those who focus on external factors and second is internal plan which gives core attention to
intermediate goals. Carwow is one of the leading car platform which helps and guides their
customers while buying a new car. Currently this company is giving it central attention to
marketing strategies that it who it invest a lot in its merchandising department instead on other
sections of enterprise. Also, its employees make various efforts so that they can provide great
satisfaction to their clients. By providing high customer gratification it can increase loyalty level
in its clients which can result in broad financial profit.
Cited company provides cars of latest model and at affordable price so that middle class
families can also buy them. It promotes its business on websites so that it can attract web users.
Also, it take help of other advertisement channels so that it can approach maximum number of
people. For advertising its services it use social media mode such as Facebook, twitter and some
other online channels (Mallula and Amin, 2012). Due to its promotion strategies, it have a great
competitive advantage in market place. It receives customer response on regular basis so that it
can meet with client's need and demands. These were the some proposed changes which are
presently implementing within work place.
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3.3 Action plan to apply modifications within work place
Changes are the part of everyone's life. Just like human beings, business enterprise also
have to bring some new modifications within work place so that existing performance of
organization can be improved and developed. For implementing new changes, Carwow have to
develop a new action plan so that it can remove all breakdowns and can accomplish desired
goals and objectives in most effective and systematic manner. Different steps of action plan are
discussed below:
Market evaluation: Before implementing any new changes within organization, it is
highly important for business managers to decide that in which market they should enter and
what is the current tends so that market (Coghlan and Brannick, 2014). After evaluating this,
they should determine needs, demands and preferences of customer because without fulfilling
customer needs, action plan can not be successful. Also, company should all environmental
factors which can affect organizational performance within marketplace. Carwow wants to enter
into Asian market.
Market segmentation: After analysing market company should segment their market
according to population. As, cited enterprise wants to provide its services to hospitality and
manufacturing sector. So, it can target factory area and the place which is near by hospitals.
Target market segment strategy: After market analysis and segmentation, it is very much
important for cited enterprise to make effective segment strategies so that it can accomplish its
predetermined goals and objectives in appropriate manner. The biggest strategy of this firm is
that it will help people in finding durable cars at affordable prices (Woinarski, Burbidge and
Harrison, 2014).
TASK 4
4.1 Different impacts of planned changes on organization and its work force
Whenever a business enterprise adapts new changes within work place then it definitely
results in positive or negative impact. In simple words, each and every modification in company
bring a impact on business functions for long time period. Basically changes are categorised in
two types which are controllable and uncontrollable (Choi and Ruona, 2011).
Controllable modification are those on which company have full control but on the other
side uncontrollable changes can not be controlled by business managers. For better growth and
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