Hungry House: Analyzing Performance, Addressing Weaknesses & Growth

This report provides a comprehensive analysis of Hungry House, an online takeaway ordering service established in 2007. It identifies the company's strengths, such as motivated employees and high-quality services, and weaknesses, including a lack of market research and slow adoption of new technologies. The report analyzes the business using comparative measures of performance, including customer satisfaction, marketing tools, financial data, and service speed. It proposes actions to overcome weaknesses, such as implementing new technologies and conducting more market research, and suggests ways to manage and strengthen existing performance through employee training and feedback systems. The report also explores potential areas for business expansion and includes an assessment of existing business objectives, a revision of the business plan to incorporate changes, and an action plan to implement these changes. Finally, it addresses the impact of these changes on the business and its personnel, outlines a plan for managing these changes, and describes how to monitor improvement in performance over time. Desklib offers similar solved assignments for students.

SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................................................3
TASK 1...........................................................................................................................................................................3
1.1Profile of business along with its strength and weakness.....................................................................................3
1.2Analysis of business by using comparative measures of performance................................................................5
TASK 2...........................................................................................................................................................................6
2.1Appropriate actions to overcome the weaknesses of Hungry House...................................................................6
2.2Ways to manage and strengthen existing performance........................................................................................7
2.3Areas in which business can expand....................................................................................................................8
TASK 3...........................................................................................................................................................................9
3.1Assessment of existing business objectives and plans.........................................................................................9
3.2 Revision of business plan to incorporate changes.............................................................................................11
3.3Action plan to implement changes ....................................................................................................................12
TASK 4.........................................................................................................................................................................14
4.1Impact of changes on the business and its personnel.........................................................................................14
4.2Management of changes.....................................................................................................................................15
4.3Monitoring of improvement in performance over provided time scale.............................................................18
CONCLUSION ............................................................................................................................................................21
REFERENCES..............................................................................................................................................................22

INTRODUCTION
In the present scenario, small business plays an essential role in development and growth
of the country. These enterprises having less number of employees and they also having low
volume of sales. These types of firms also contribute for the development of economy by
providing the employment opportunities in a country (Burrows, 2015). The main objectives of
small enterprise is to fulfil the needs and desires of the local people. Present report is based on
Hungry House which is a online takeaway ordering service company which was established in
the year 2007. the company is providing excellent services to their customers and provide all the
facilities to them. This report covers the strengths and weaknesses of Hungry House with the
analysis by using different comparative measures of performance. Apart from this, this report
also explains some of the new areas where the small enterprise can expand their business.
Further, it also covers the assessment on the existing objectives of business and action plan for
implementing changes (Goss, 2015). Thus, there are some of the impact of those changes on the
business and plan regarding managing the changes.
TASK 1
1.1Profile of business along with its strength and weakness
Small businesses can be defined as the companies which are owned independently and
have workforce of less than 500 workers. Furthermore, these businesses plays very important
role in growth and success of economy by contributing in GDP and employment. Small
businesses are the one which are involved in operation and needs to fill their account with the
companies’ house for the last 3 years.
In context of owner, it can be stated that Shane Lake and Tony Charles are the key
owners of Hungry house who has founded the business in year 2003. It is located in 78 York
Street W1H 1DP and can be contacted on the number 0800612333 (Hungry House Customer
Service Contact Details, 2017). Its operating hours from Monday to Friday includes 09:00 am to
5:00 pm and the business remains closed on Saturday and Sunday. Its key competitor includes e
Rooftops Limited, Ridee Ltd. and Scoffabl. At the time of carrying out its operations, there are
wide range factors which need to be taken into consideration. The activities of Hungry house are
affected by factors such as changing customer taste, economic environment and increasing level
of competition. The strengths of selected business lie in its staff members. For example its staff

members are highly effective and capable enough to understand the need and requirement of
customers. On the other side of this, its weakness lies in areas such as market research. The
selected business enterprise do not invest large amount of resources in conducting market
research and therefore it has created several obstacles in overall success of the brand.
In the selected business which is Hungry House that allows users to search for the
restaurants which helps the people to place an order online. Further, the management of the
company make appropriate plans for the development so that they can provide effective and
efficient services to the customers (Blackburn, Hart and Wainwright, 2013). In addition to this,
with the help of training the employees get motivated and so that they take care of personal
development as well as growth. Further, the management also gives importance to the meetings
and conferences which is helpful in discussing different issues which are faced the staff members
and they are using various methods so that they can make improvement in the services.
Strengths-
 Highly motivated and trained employees so that they are able to provide appropriate
services to their customers.
 Creativity in work of employees and use different ideas for attracting huge number of
customers.
 Culture at workplace motivate employees and it helps to retain them for long period of
time (Ackermann and Audretsch, 2013). High quality of services to customers at reasonable prices so that it helps to increase in
the volume of sales.
Weakness-
 Lack of research and development in which the company cannot get appropriate
knowledge regarding the preference of customers.
 Adoption of new technology with the time and the company have to make some of the
modifications in their online services.
Therefore, this are some of the strength and weakness of the Hungry house which are
evaluated and are needed to manage them in appropriate manner (Carraher and Paridon, 2015).

1.2Analysis of business by using comparative measures of performance
All of the businesses have to carry out analysis of their operational activities in a proper
time frame. The main aim behind this is to that it supports the business in order to get aware of
the different areas which are required to be improved. Along with this, this types of analysis
plays an significant role for the purpose of determining the appropriate strategies (Harris, Gibson
and Taylor, 2015). Hungry house analysis is using different comparative measures of the
performance which are carried out as follows:
Customer satisfaction- It can be said that the rate of customers satisfaction is appropriate after
carry out the assessment of Hungry House. The company wants fast delivery services and the
company also make changes as per their requirement which is beneficial for them. Further, they
keep on working in context of providing quality services and they have to make changes for the
same.
Tools of marketing- In the current scenario, company is using traditional methods for the
promotion of their services such as advertisement, television and newspapers. In this context,
they are not suing the techniques of social media marketing which includes the online marketing
through different sites, e-mail marketing which can be beneficial for them (Eid and El-Gohary,
2013). Thus, all these new techniques of promotion help to increase in the volume of sales and
profit of the business.
Financial data- This is considered as another comparative measure of performance that can be
used by business in order to carry out analysis. After the assessment of the financial data it can
be inferred that in the last few years there is increase in the sales and profit of the company to
greater extent. But at the same time, the stated business has the capability to perform in an
appropriate manner and able to overcome their weaknesses in an effective way (Ritchie, 2015).
Speed of services- The services of Hungry House are reliable and fast and they are serving their
customers in an appropriate manner. This will support the business for creating a good image in
market and attract large number of customers for a long period of time.
Year Profit before
tax(values in 000)
Taxation Profit after tax
2016 £500 100 £400

2015 £350 70 £280
2014 £250 50 £200
Kindly note that the figures are assumed as there is no information provided over internet
regarding the financials of selected small business enterprise.
Assumptions
The above small scale business's performance has been evaluated by ascertaining the
profitability of the Hungry House over last three years. The tax rate used here is 20% which is
corporate rate of taxa applied on the business of Hungry house. The annual profit before tax has
gradually increases over the years which shows the significance of the business. The tax amount
has increases butr not with that much pace like increment in the profit. It can be said that the
profit after tax has gradually increases from one period to another which showacses an entity's
good performance.
TASK 2
2.1Appropriate actions to overcome the weaknesses of Hungry House
It can be stated that Dragon Den is a kind of television series of Britain which is hosted by
Evan Devis. Furthermore, Sony pictures are the owner of Dragon Den series and the television
show is entirely based on Japanese series. Here, the series provide entrepreneur in UK with an
potential opportunity to share their ideas and views regarding business. The selected business
enterprise which is Hungry house was founded in the year 2007 and it comes on 5th position of
the dragon den series. Its key business practises are related with online takeaway ordering
services and it has raised investment from the dragon den. In the year, 2013, Hungry house was
entirely acquired by Delivery Hero which was Berlin based key competitor of the selected
business enterprise (Dragon’s Den success stories: Hungryhouse 2015). It is essential and
needed by Hungry house to take appropriate measures and correct actions to overcome all the
weaknesses in order to manage all of the activities and operation in smooth flow. There is high

competition in this business now a days and it is important for business to increase the volume of
sale and profit for the company (Woo, 2015).
There is one of the major weakness of company is adoption of new technology in
business which is to be done with the help of using different sources which are helpful in gaining
knowledge regarding the new techniques for providing services to customers. They have to focus
on the sessions of the training and development which is beneficial for learning aspect and it is
helpful in managing different activities of the business. It is necessary to implement new
technology in business for the purpose of providing fast service delivery to the customers so that
it enhances the level of profit. Further, there is requirement of more research and development in
order to evaluate the preference of customers so that they can provide appropriate services to the
customers (Sluyterman, 2013). It can be done with the help of different department in which
their work is to carry out research in the different areas so that it helps to gain knowledge
regarding the preferences of various customers. Therefore, it can be stated that the above
mentioned there are two most appropriate and effective actions that can be taken into
consideration by Hungry House in order to overcome the main weaknesses which are faced by
the management.
In context of tip of training, it can be expressed that the selected business enterprise can
focus more on offering training and development programs to all its workers. Furthermore,
training sessions related to market research, industry trend analysis and customer survey etc. can
be provided to people working in organization. This will increase the overall productivity and
will also enhance the volume of sales and profits.
2.2Ways to manage and strengthen existing performance
In the current scenario, each businesses is needed to manage the strengthen their existing
performance of the business for survive in the long run and stay competitive in the market.
Hungry House is also needed to maintain their level of performance that can be done with the
help of different methods. One of the most important and effective way is that to provide the
sessions of training and development to the employees (Cunningham, Sinclair and Schulte,
2014). It is essential for the employees to understand and meet the requirement of customers.
With the help of training and development it will increase in the innovative strategies which

increase the level of profit and sales. It will also increase the capacity to adopt new technologies
and different methods which is beneficial for business.
On the other hand, feedback is another way to maintain and strengthen the current level
of performance at workplace. For example Hungry House can implement an effective feedback
system which focuses on extracting valuable information from customers. The information can
be related to the fact that whether products and services offered is satisfactory or not, what type
of changes can be done, what new services can be introduced etc. It is implemented to know the
review and opinion of the customers considering the level of satisfaction so that Hungry House
can make changes as per the requirement of the customers (Jenner, 2016). This will helps to
understand the changes in the needs and demand of the customers and it will be able to make
strengthen in its current level of performance. It facilitates the management to make appropriate
changes which are required by the business. Feedback from customers is essential so that
increases the level of understanding by considering the point of view of customers which is
helpful in managing the various activities.
2.3Areas in which business can expand
Business are needed to expand in some of the different areas so that they can changes in
the range of their offerings. There is one of the main advantage of expanding the range of
products and services even in the conditions of the sale of products slow down the enterprise can
survive along with the sales of other products and services (Longenecker and et. al., 2013). For
competitive in the market the Hungry House is also needed to expand their activities and
operations in other areas so that it will helps to attract different customers and increase in the
volume of sales. The small business enterprise can also introduce some of the other services
which are helpful in order to expand the business and to manage different activities which are
beneficial for business for long term. This will helps to increase the number of customers and
people will find out the various types of services at one place. They also can expand their
business in different cities of UK so that they can create a huge customer base with different
types of people in their business that is important for the company (Malin, 2012). Hungry House
can come up with its restaurants in different locations of the country. This will directly contribute
in overall growth, development and expansion of the selected business enterprise. The same
quality and quantity of food can be offered by Hungry House to its customers.

In addition to this, the Hungry House also expand its sales and market share with the help
of techniques using internet and through the social media marketing which helps in attracting
large number of customers. Hungry House can promote its services by using various sites such as
Facebook and Twitter with an objective to create more and more awareness among people in the
market. This is beneficial because it will assist Hungry House in carrying out marketing and
promotion of all its products/services in more effective manner. It can be accessed easily by the
people and it will helpful for small business so that it increases the brand awareness in an
effective manner. Further, the company will deliver their services in different areas which are
required to be manage by the business so that it helps them to work in an appropriate manner
(Moore and Spence, 2006). They can expand their business with the help of different business
strategies and with the help of market development which helps to increase in the level of profit.
Through the strategy of market development so that it helps in reaching new customers and
expansion in the new geographical areas and to capture the new area of market. Thus, these are
some of the areas in which the company can expand their business and it is essential for them in
order to increase in the level of profit and sales.
TASK 3
3.1Assessment of existing business objectives and plans
Describing the business- It can be stated that Hungry House, was founded in the year 2003.
The business provides its customers or people in UK with a very potential platform for
ordering online food. Along with this, Hungry House also provides services such as
browsing menu of restaurants and seeking for the review provided by customers.
Marketing examples – The brand is carrying out marketing and promotion of all its
services and products by both online and offline platform. For example it has developed its
official page on social media site such as Facebook. This allows the small business
enterprise to interact with customers, make them aware about the products/services offered
and promote the same. In terms of competition, it can be asserted that The Love Takeaway
is key competitor of Hungry House which is providing very intense competition to the
small business enterprise.
Operations – locations – transportation It is located in 78 York Street W1H 1DP and it is
presently offering its services via online platform. Customers are required to visit the

online site of Hungry House in order to purchase and use the services provided by selected
small business enterprise. Furthermore the company has adopted for a moderate pricing
strategy in order to gain competitive advantage over other market players.
Financial source of finance - Bank loan and owners capital can be considered as the two
major sources of finance which are taken into consideration by Hungry House in order to
carry out smooth flow of all its operations and business practises.
Objectives can be defined as what a company needs to achieve in short run and long run. It
is required by businesses to set the goals with actions so that the company get directions for
achieving those objectives. The assessment of the existing business plan and objectives of
Hungry House are mentioned below:
Assessment of business plan
Each and every business plan start with the procedure of setting up the goals and it has
been identified that Hungry House has established some of the long and sort term objectives
(Street, C. T. and Cameron, 2007). Further, after the company set their objectives the business
define the different strategies which are useful for attaining those objectives. In context of this, it
can be said that the stated business has developed some of the appropriate strategies and also
needs some changes. Apart from this, the process of implementation taken into consideration and
the management of cited business implement all of their plans and strategies. There is lack of
effectiveness in the process of monitoring which is one of the most important aspect. The
services which are provided to customers are not monitoring and sometimes it creates issues.
Thus, after assessing the plan of business it can be stated that whole plan is appropriate but it
needs some of the changes (Thomson and McAdoo, 2015).
Assessment of Objectives
The main objective of Hungry house is to provide services to their students and
appropriate facilities. One of the aim of the company is to achieve competitive advantage over
other players in the market. Further, another aim is to increase in the profitability and market
share of the company. These objectives are proper according to the nature of small enterprise
after assessing its objectives. In order to survive in the long run and grow so that the changes are
required to be done. In addition to this, SMART objectives can be made for the expansion in the

operation of the business (Tompkins Jr, Kent and McDonald, 2006). Thus, by adopting new
marketings strategies and to make sure all the objectives can be achieved. This objectives helps
in order to generate profit and sales of the company and increase in the productivity of the
employees at workplace.
The specific business objectives plans are mentioned below as:
 To increase sales and profits by 20% within next 2 years
 To enhance customers base by 25% within next one year
 To open 5 new physical stores within the period of next 3 years
3.2 Revision of business plan to incorporate changes
It has been identified that the dance company have to make changes as per the
requirement because they are facing tough competition from other companies. It is required to
revise their existing business plan for incorporate the changes. With the help of changes the
company is able to improve their efficiency and also assist in the competitive advantages.
Further, in context of this Hungry House needed to develop smart objectives so that it can be
measured in an appropriate time frame and the main objective is to achieve in effective manner
(Burns, 2010).
Along with this, the company have to adopt some of the new techniques of marketing. It
helps in attracting large number of customers and it helps in the development of the company.
Thus, small business enterprise has to use some of the new strategies of marketing in their whole
business strategies. The stated business is required to make changes in the process of monitoring
which is an essential part of the business. For this, they have to assign people in order to monitor
the work at Hungry House. This is helpful in managing the work and to make sure that all the
activities are carried out by the enterprise in an appropriate manner. Moreover, the company
have to use proper resources which are needed for providing services to their users which is
essential for the business (Carter and Evans, 2006).
It can be expressed that in order to incorporate changes, Hungry House will be required
to opt for an open communication process. Employees and other staff members should be
allowed to present their views and opinions towards success of the business enterprise.

From the assessment carried out above, it has been reviewed that Hungry House is to
increase its sales by 20% within next 2 years. It can be expressed that the business will need to
focus more on its marketing activities in order to achieve the desired objectives. In the business
plan developed by Hungry house, there are certain improvements which need to be carried out.
For example it needs to add some more aggressive strategies in order to achieve its long term and
short term objectives. Furthermore, the monitoring is also required to become more effective so
that the business can understand whether its resources and efforts are heading towards right
direction or not.
3.3Action plan to implement changes
There are some of the changes which are required to be made by Hungry House and it is
needed by the enterprise in order to create an action plan for implementing changes. Further,
with the help of plan it will help in the different aspects including the people who are providing
services in dance company and they have to adopt transformation and to get positive results. The
action plan to implement the changes in the stated business is given below: Procedures to handle changes- This is the most essential stage of the action plan and it
explains for the completion in the transformation process. In context of this, Hungry
House is needed to make changes in their strategy for the implementation and manage the
changes (Dobbs and Hamilton, 2007). The staff at workplace are developed and manage
the process of transformation in an effective manner. The process of handling the changes
is required to be done in appropriate manner so that it increases the level of performance
of the employees and manage it in an effective manner. Roles and responsibilities of the staff- It has been identified that the changes are
appropriate and employees are also provide their contribution. In addition to this, the
company is required to take appropriate care of their staff members and various activities
that are affected by the transformation process. Hungry house is a small enterprise and
they are not facing any issues in order to implement changes. In this context, the business
is needed to assign some of the roles and responsibilities to the members of staff so that it
helps in achieving appropriate outcomes with the help of transformation. Tools which required to be used- Enterprise using different tools ad techniques for
implementing changes in the company. It is needed by Hungry House to identify which