Hungry House: SME Report - Financial Performance, Expansion Strategies

This report provides a comprehensive analysis of Hungry House, a small business enterprise featured on Dragons' Den. It begins with a company profile, detailing its structure, background, and activities within the food industry. The report then compares Hungry House's financial performance to the previous year, examining the interrelationship between different sectors like production, marketing, HR, and research. It identifies weaknesses such as poor food quality and limited branches, proposing problem-solving, fund allocation, and action-oriented strategies to overcome these limitations. Furthermore, the report suggests methods to maintain and strengthen existing performance, including maintaining records, focusing on market structure, building on business strengths, and utilizing advertising techniques. Finally, the report explores potential areas for business expansion, such as market research, risk assessment, and seizing opportunities. The report highlights the importance of financial management and strategic planning for the growth and sustainability of the business.

Small Business Enterprise

Table of Contents
TASK 1......................................................................................................................................................4
1.1 Company’s profile..............................................................................................................................4
1.2 Comparison of current financial performance to last year’s including different sectors’
interrelationship.......................................................................................................................................5
TASK 2.......................................................................................................................................................6
2.1 Appropriate actions to overcome weaknesses....................................................................................6
2.2 Methods in which existence performance can be maintained and strengthened.................................7
2.3 New areas in which Hungry house can expand its business...............................................................9
TASK 3.....................................................................................................................................................10
3.1 Business objectives and plans..........................................................................................................10
3.2 Evaluation of business plans and suggestion of area where changes can be implemented...............13
3.3 Preparation of action plan................................................................................................................14
Task 4........................................................................................................................................................16
4.1Impact of business and its personnel due to changes occurs at Hungry house..................................16
4.2 Planning to manage changes in business.........................................................................................16
4.3 Improvements in performance in comparison to past two years’ performances...............................17
CONCLUSION.........................................................................................................................................18
REFERENCE............................................................................................................................................20

INTRODUCTION
Small and medium businesses are those entities whose number of personnal is below
fixed limited. These organizations earn profit at low level as well have limited branches to
operate business activities. The present report is based on case study of Hungryhouse. It is small
business enterprise of Dragons’ Den focuses to increase its working efficiency and improvement
in organization’s performance. Therefore, structure of small business enterprise including
background and various sectors’ functions can be determined here. Moreover, the study is able to
present several tools and techniques to implement action plans to achieve industry’s
effectiveness. In addition to this, evaluation of performance related to firm can be recognized
here. Hence, through this report several aspects are to be analyzed for implementing small
enterprises.
TASK 1
1.1 Company’s profile
Business organization’s proper structural framework can be understood as follows:-
Name:- Hungry house
Owner structure:- Small business enterprise, who works at low level. There are limited
number of employees perform at workplace. Moreover, financial structure of company is
not well to adopt technologies for entity’s expansion and qualitative services (Blackburn,
Hart and Wainwright, 2013).
Background:- Hungry house is one of the Dragons’ Den organizations’ of London, UK
which performs small level business activities. It aims to improve working efficiency of
company and expand its industry through operating new branches in other cities of UK
(Freel, 2013). In order to this, entity makes plans for fund allocation related to financial
management for qualitative services of SME.
Activity:- Dragons’ Den’s Hungry house is a food industry, which takes order for food
services. In addition to this, company’s business activity includes products’ delivery

through online marketing. In this regard, organization provides restaurant facilities for
serving food (Goss, 2015).
Business location:- Hungry house is located in London, UK.
Strength and weakness:- Company’s strength and weaknesses can be obtained as
below:-
Strength:- Positive factors of Hungry house includes effective customer focused,
applying innovative ideas for increasing working efficiency and flexibility to get adjusted
according to changes occurs at workplace. In this regard, strength of small enterprise are
determined as effective tools to set objectives for developing business activities of
organization to improve food services (Eid and El-Gohary, 2013).
Weaknesses:- Hungry house is small enterprise of UK has weaknesses of poor working
efficiency for food services. Including this, it is determined that organization has lack of
funds as there are effectiveness in fund allocation is obtained. It impacts on
environmental factors of SME for entity’s development. Moreover, due to efficiency of
finance it remains difficult to reach out resources for proper production and distribution
system (Feussner, Landefeld and Weinberger, 2016).
1.2 Comparison of current financial performance to last year’s including different sectors’
interrelationship
Economic structure of Hungry house is compared to past year’s performance. It is
determined that organization’s effectiveness is impacted through recognizing financial and
other sectors’ performances. This other effected sector involves production, marketing, HR
and research departments of entity (Smither, Houston and McIntire, 2016). In this regard,
differences between Hungry house and Richard Earnest business performances in financial
including other sectors can be expressed as:-
Financial performance:- It is comprised that economic profile of Richard Earnest is higher
than Hungry house. In accordance to this, there is lack of finance which impacts on Hungry
house’s organizational structure. It remains unable to increase qualitative services of entity.
While, on the other side, Richard Earnest’s economic profile is effective in presentation of

business activities (Bayrak, Güler and Pınar, 2016). Therefore, monetary structure of both
entities impact of productivity and profitability of firms to run entities.
Production and operational factors:- Financial performance of organization effects on
supplement of food provided by entity. In comparison to Richard Earnest, production and
distribution system of Hungry house is more effective. It is due to optimum utilization of
resources. Thus, there are innovative ideas applied for distributing services (Chan and Park,
2015).
Marketing department:- It involves activity of earning profit with customer satisfaction.
Therefore, Hungry house has effective consumer focused strategy on behalf of which it takes
decisions for further business activities. In comparison to Hungry house, marketing
department of Richard Earnest is less attractive. Therefore, transaction of goods and services
are impacted through financial and other departments of Dragons’ Den organization
(Singaram, Kraaijenbrink, and Mols, 2016).
HR department:- It includes overall services of business with focuses on employees’
performance. In accordance to this, entire departments of organization effected (Halpin and
Biggs, 2014). Thus, Richard Earnest and Hungry house’s business performances are
recognized by analyzing entire performances.
Hence, finance department of Hungry house is determined by comparing its performance
with Richard Earnest’s business structure. It presents framework related to strength,
weakness and techniques to run entity through recognizing environmental factors of entity. It
leads to prepare budget and preparing strategies for business. Thus, different departments’
performances are comprised to each other which are interrelated. These are helpful tools for
planning and decision making process to run entities effectively (Cavico and et.al., 2014).
TASK 2
2.1 Appropriate actions to overcome weaknesses
Hungry house has various limitations such as poor food qualities, less number of branches to
expand business. It is because of inefficient fund. Therefore, these weaknesses can be recovered
by following strategies;-

Problem solving strategy:- It is related to action planning for solving out problems occurs at
workplace. In this regard, manager of Hungry house requires preparing strategy for determining
solutions to overcome the situations. For example, if there are technological issues arises then
adoption of new techniques and collection of funds remains appropriate strategy for organization
(Blackburn, Hart and Wainwright, 2013). Thus, implementation of action planning to solve out
problem can recover weakness of small level enterprise.
Fund allocation strategy:- Lack of money can be determined through adequate fund allocation.
Through this strategy, sources and investments for effective supplement of goods can be
obtained. Regarding this, proper financial management is presented to manage fund for
qualitative services of SME. It is useful action to increase productivity and profitability of
industry (Wellin, 2016).
Action oriented strategy:- It is essential for Hungry house to strongly focus on set objectives for
improvement in business performance. Hence, effective development of organization is possible
through developing strategies. It is valuable to generate ideas for further business activities to
operate small enterprise in growing manner.
Finding solutions and alternatives:- Development of small business entity Hungry house is
possible through determining solutions and looking for alternatives to solve out the issues. In
order to this, effective performance and qualitative food services can be achieved. It will impact
on productivity and profit earning capacity of firm (Nieto, Hernández and Muñoz, 2014). Thus,
improvement in service qualities of enterprise can be achieved through this tool.
Adopting innovative methods to improve qualitative services:- Hungry house can get effective
business activities by accepting technological changes. Therefore, increasing in demand for food
services will be achieved at high level. It is vital tool to aware society for taking advantage of
goods and services effectively (Tsai and Yang, 2014).
2.2 Methods in which existence performance can be maintained and strengthened
Existence of Hungry house and its performance is possible to maintain through different
approaches. For instance, maintaining business records focuses on proper market demand,
providing qualitative food services and using attractive tools etc. These tools and techniques can
be understood in brief as follows:-

Maintaining performance records:- It is effective technique to maintain Hungry house’s
position in market. Moreover, by analyzing past performances of business manager is able to
makes plan for implementing further activities (Yu and et.al., 2014). In this regard, proper ideas
are generated to prepare strategic plans to face competition. It is usable to improve quality and
performance of organization to gain its effectiveness.
Focusing on proper market structure:- Hungry house can maintain and strength its effective
position in market. In order to this, concentrating customer demand and requirements is able to
improve business profile. Hence, small enterprise can make place in market through facing
competitive strategy. It is valuable to create effective market position of food services (Halpin
and Biggs, 2014).
Building on business strength:- It is effective tool to increase strength for facing competition
and making place in market. Therefore, good performance of Hungry house can be obtained
through building team to improve food services. It can be determined that business strength can
be increased by improving food services (Blackburn, Hart and Wainwright, 2013).
Tools for increasing advertising techniques:- It is vital technique to attract people by using
advertising tools. Thus, awareness of society and increasing quality services of food can be
achieved by developing creativity for business operations. In accordance to this, promotional
techniques are implemented for strategic plans.
Establishing public relations:- Effective public relation with customer including supplier,
advertiser is valuable to gain long term sustainability of product value. Moreover, it is vital for
Hungry house to maintain and strength its good reputation in market (Chan and Park, 2015). It is
also great tool to increase value for facing competition as well improvement in business
performance.
However, above mentioned techniques are useful to maintain and increase reputation of Hungry
house in market for effective food services. It is useful to create healthy and positive
environment of organization to maintain customers’ attraction for product services. Thus,
company can manage entire business activities through these tools for its effective expansion
through proper financial management (Goss, 2015).

2.3 New areas in which Hungry house can expand its business
Expansion of business organization can be obtained through effective techniques to implement
action plans. In this regard, Hungry house needed to apply various tools for instance, proper
market research, risk assessments, preparing action oriented strategies and evaluation of business
activities including grab opportunities for business expansion (Ackermann and et.al., 2013). Thus,
enlargement of industry can be achieved by applying following methods:-
Proper analyses of market research:- On behalf of marketing determinants, Hungry house can
gain ideas for operating new branches in other countries. It includes factors related to recognition
of product value and demand for services. Regarding this, techniques to be used for development
as well strategic plans are determined (Singaram, Kraaijenbrink and Mols, 2016). Hence,
effective market research and getting customer feedback is valuable to fulfill requirements of
consumers and expansion of business entity.
Risk assessment:- Under this system, evaluation and management of risk is created. Therefore,
critical recognition including finding out causes and their solutions are emerged. It is helpful to
manage any kind of issue occurs at workplace (Chan and Park, 2015). However, it considers
gaining organizational structural framework for implementing action strategies. Regarding this,
development and solution of problems are arises to enlarge entity at high level.
Grab opportunities for business expansion:- Hungry house can develop productivity of food
services by taking advantages of opportunity to expand business at large scale. Thus, increasing
service qualities can be obtained for effective reputation in market. Similarly, opportunities are
valuable to increase performance of business effectively (Wellin, 2016). In addition to this, entire
departments’ growth and interrelationship among all sectors can be analyzed. It is useful
technique to gain creativity in qualitative food services. Moreover, opportunity for export and
import of goods are also useful for implementation of entity. It is favorable technique for Hungry
house to spread organization at large scale. However, effective public relation can be achieved
through this technique influences sustainability of small enterprise for long time period.

Preparing action oriented strategy:- Effective market structure leads to make plan for action
towards set goals. Thus, it is required for Hungry house to makes decision regarding adjustments
for implementing changes. In accordance to this, strategic plans are made for company’s
effective profile. Further, this strategy is helpful to improve performance of business activities.
Apart from this, expansion and increasing in demand for food services will be effected at high
level. It is useful to create positive atmosphere of small business (Eid and El, 2013).
Evaluation of business activities:- It includes transaction of goods and services and other
business activities to for competitive strategies. In this regard, critical analyses of market
position are determined to implement action plans. It generates proper idea for action towards
creating balance between demand and supply of products. It involves control over excess and
deficit of goods which influences optimum utilization of resources. Hence, business activities
evaluation is valuable to create organizational structure as well liable to increase profit earning
capacity of SME (Goss, 2015). Along with increases strength for competitive strategy as well
able to expand business organization at large scale. It is valuable to improve business
performance in entire sectors of Hungry house effectively. Thus, entity can implement business
entity by operating new branches as well increasing in productivity and profitability of industry.
Establishing relations with customers:- Hungry house can enlarge its business entity through
making good relations with consumers including agents, wholesalers and different business
organizations. In this regard, qualitative food services and efficiency in working performance can
be achieved. In accordance to this, small level enterprise can increase efficiency of food services
(Halpin and Bigger, 2014). Moreover, organization requires producing and supplementing
qualitative services to attract public at high level for satisfaction and effective entity’s services.
TASK 3
3.1 Business objectives and plans
Hungry house sets target to improve business performance and increasing in productivity as well
profitability of small enterprise. It includes organizational structure to present transaction of food
and qualitative services. Organization sets following objectives to improve efficiency of entity
as:-

To improve business performances
To increase quality services of food.
To sets time frame for strategic plans
To implement strategies for organization’s effectiveness.
To adopt techniques to attract customers at high level.
To expand business entities through operating new branches at large scale
To prepare strategy for facing competition
To make effective place in competitive market
To analyze market research and takes decisions to get customer satisfaction.
To critically recognize current business profile for effective further transaction of goods
To create healthy and positive environment of entity.
Above mentioned objectives are determined to develop small business enterprise. Regarding this,
manager of Hungry house prepare business plan for production and distribution of food.
Business plan:- Development of small business enterprise can be obtained through following
business plan:-
Plan Activity
Financial plan Effective fund allocation

Financial management
Price determination of food services
Prepare budget for economic structure.
Utilization of resources Prepare strategy for adequate utilization of
resources
Action plans to create balance between
production and supplement of food.
Recognizing market research
Identify proper customer demand
Marketing plan Increasing profit earning capacity at maximum
level.
Gain customer satisfaction at high level
Getting feedback from market to analyze
attitude and perception towards goods and
services.
Evaluating market position of products.

Human Resource planning It is related to personnel performances at
workplace, therefore improvement in workers’
efficiency can be determined.
Providing training and development facilities
to encourage workers for qualitative services of
Hungry house.
Research and development planning Analyzing proper marketing structure
including product value and demand
Implementing action plans for developing
business activities.
Hence, manager of Hungry house makes business plan related to overall activities influences
productivity and profitability of small business enterprise. It is related to entire entity’s
performance. In addition to this, key elements of business are creditors, debtors, agents and
wholesalers. Therefore, organization focuses to establish good relationship with collaborative. It
influences long term sustainability of small business entity effectively. Thus, business plan leads
to implement action and evaluations presents structure of organization systematically (Smither,
Houston and McIntire, 2016). However, business plan includes forecasting and decision making
process able to create efficiency in organization’s effectiveness. It influences market atmosphere
of small business enterprise to be developed.