Improving SME Performance: Strategic Recommendations for Growth

This report provides a comprehensive analysis of Small and Medium Enterprises (SMEs), focusing on a case study of The Big Swing Company Ltd. It begins by profiling the company, detailing its vision, mission, key personnel, ownership structure, history, activities, business location, strengths, and weaknesses. The report then analyzes the company's financial performance in comparison to its competitor, Charles Cantrill Ltd, using turnover and profitability metrics. It identifies problems such as limited market access, declining profitability growth, and ineffective cost-controlling measures. The report suggests strategic changes, including budget development, training programs, market expansion, cost-control mechanisms, and enhanced quality services and promotion. Furthermore, it explores ways to maintain and strengthen existing performance, identifies new areas for business expansion like furniture manufacturing, assesses existing business objectives and plans, reviews the business plan, and proposes an action plan for implementing changes. Finally, the report evaluates the impact of proposed changes on the business and its employees and presents a plan for managing these changes and monitoring enterprise performance within a specific timeframe.

SMALL AND MEDIUM ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Profile of selected business scenario.....................................................................................3
1.2 Analysis of business financial performance with the competitor..........................................4
TASK 2............................................................................................................................................6
2.1 Appropriate changes with justifications to overcome problems............................................6
2.2 Analysis ways in which existing performance could be maintain and strengthened............8
2.3 New areas in which business can be expand by the firm......................................................8
TASK 3............................................................................................................................................9
3.1 Assessment of existing business objectives and plans..........................................................9
3.2 Review of the business plan and areas where changes can be made...................................10
3.3 Action plan to implement changes......................................................................................11
TASK 4..........................................................................................................................................11
4.1 Impact the proposed changes which impact on business and employees............................11
4.2 Plan for how the changes will be managed.........................................................................12
4.3 Monitoring the enterprise performances within the time frame..........................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
In Europe, SME has been defined as an organization having an employee base below 250
persons and yearly turnover falls less than 50 million Euro. Although such companies operates at
lower scale, but still, contributes a strong percentage to the overall growth and success of the
business. Referring Europe, very larger percentage of total number of established represents
SMEs and contributes an effective percentage to nation’s GDP. Thus, government undertakes
several initiatives to promote SMEs, which in turn, not only helps to enhance business growth,
but also render job opportunities to the people and declines unemployment rate. Therefore, this
assignment report emphasizes upon an evaluation of strengths and weakness of a small sized
business, named The Big Swing Company Limited. The report will identify the activities and
operations conducted by the company to serve their audiences. Moreover, it will also present an
evaluation of financial performance of the Big Swing Company with its toughest competitor,
Charles Cantrill Ltd to identify the most successful company. Apart from this, the report will
also recommend and suggest the best strategies and ways through which The Big Swing
Company Ltd can maximize their performance and reach success.
TASK 1
1.1 Profile of selected business scenario
Organization’s name The Big Swing Company Ltd
Vision Its long-term business vision is to become a successful and leading
company in the area we serve.
Mission Its target is to serve audiences through excellent and best value products
and services through presenting offerings exactly as per user’s
requirements.
Key people Jonathan Charles & Katharine Sarah regulate and monitor daily business
practices to gain success in the market.
Owner structures It is a private limited company that is owned by the investors who put
their capital for the smooth functioning of the organization (The Big
Swing company limited, 2016). In return, they gain monetary return on
their investment to fulfill their expectations.
History It was incorporated on May, 16, 2006 and became a registered

organization. Thus, it was the period of real beginning and completed a
journey of eleven years till now. Its quality product and services enable
firm to complete a long-journey and sustain in the competitive
marketplace.
Activities and functions It is specializes and expertise in production of wood, producing straw,
articles work and plaiting of materials (The Big Swing Company, 2015).
Business location It’s registered office situated in Hope Cottage, Box, Stroud, UK.
Strengths & weaknesses Strengths:
 Specializes in manufacturing and distribution of straw, articles
and plaiting materials
 Excellent product portfolio
 Good reputation and brand position
 Skilled, well-trained and talented people
Weaknesses:
 Limited access to market
 Unable to meet long-term capital requirement through issue of
equity
 Declined percentage growth in profitability performance
 Ineffective cost-controlling measures
 Lack of focus on training and development
1.2 Analysis of business financial performance with the competitor
The main motto of all the companies is to generate significant return by the way of
generating profitability on total turnover. Now-a-days, companies can only sustain and bring
success through having maximum net profitability on their total turnover. With regards to the
chosen organization, The Big Swing is facing high and immense level of competition from the
rivalry firm, Charles Cantrill Ltd (CCL).There are various ways through which business can
measure their operational efficiency and results of business performance and compare it with the
competitors to assess that whether they performed much better or not such as horizontal, vertical
and ratio analysis (Chaston, 2014). Here, the monetary results of The Big Swing Company is

comparing with its competitor, CCLwho is also operating in the same industry through its
turnover and profitability after tax for the period of recent 5 years, presented below:
Turnove
r
Absolute
change
%increase/
decrease
Absolute
Change %increase/decrease
2011 2250 - - 2100 - -
2012 2500 250 11.11% 2340 240 11.43%
2013 2860 360 14.40% 2480 140 5.98%
2014 3300 440 15.38% 3450 970 39.11%
2015 3680 380 11.52% 3840 390 11.30%
Considering the results, it can be observed that Big Swing Company’s turnover depicts a
growing trend consistently, but still, till the end of 2014, revenue rose up at inclining rate as it
got increased from 11.11% to 14.40% and 15.38%. It may be resulted due to rising consumer
demand, brand recognition, publicity and effective pricing policy mechanism to attract larger
consumer base (Berger,Cowan and Frame, 2011). However, in 2015, although revenue rose up
but at declined % change as in this year, revenues shows a slightly increase by 11.52%
comparatively lower than that of earlier year. Fall in demand, poor quality products and/or
services, delivery of same quality services by competitors at cheaper prices and excessive price
may be the reason for decreased demand and resulted in fewer turnovers (Bridge and O'Neill,
2012). However, if we look at the competitor, Charles Cantrill Ltd’s financial results, it can be
seen that turnover goes up by 11.43%, then dropped down to 5.98%. After this, it shows a
sudden increase by 39.11% which may be caused due to heavy promotional and advertisement
cost and less product charges. In the 2015, its % growth in turnover has been reported to 11.30%
less than that of Big Swing Company.
The Big Swing Company Ltd Charles Cantrill Ltd
Net profit Net profit margin Net profit Net profit margin
2011 120 5.33% 105 5.00%
2012 180 7.20% 165 7.05%
2013 200 6.99% 210 8.47%
2014 264 8.00% 272 7.88%
2015 287 7.80% 320 8.33%

The Big Swing Company’s net profitability % shows a volatile trend as it got improved
to 7.20% in 2012 and then came down to 6.99%. Again, in 2014, it goes upward to 8% may be
due to effective cost control measures and greater revenues, but afterwards, it fallen to 7.80%.
The results indicates that firm did not perform excellent, whilst, Charles Cantrill Ltd’s NM goes
improved till 2013 and came to 8.47%, then goes down to 7.88% again in 2015, it got improved
to 8.33%. Results reveals that CCL has obtained high level of profitability on their total turnover,
hence, its operational performance is much sound.
(Source: The Big Swing Company, 2015)
As per the graph, it can be founded that shareholder’s fund, net worth and total assets of
the business showed a downward movement from 2011 to 2015 which is not good. It indicates
that financial status or position of The Big Swing Company dropped down, hence, depicts poor
monetary results.
TASK 2
2.1 Appropriate changes with justifications to overcome problems
It is important for The Big Swing Company’s managers, executives and directors to create
some better strategies and take several business decisions to achieve success through overcoming
difficulties and weakness. There are number of ways available through which firm can eliminate
their problems and drive success to the organization that are narrated here as under:

Development of budget: Managers are not only responsible to look after the optimum
utilization of monetary resources through necessary restrictions, but also, they have to forecast
and predict the results or outcomes of future course of actions and activities. It helps to find out
potential hurdles and problems, so that, decisions can be made prior to achieve success. Thus,
The Big Swing Company’s managers can estimate their incoming and outgoing (revenue and
expenditures) and prepare budgets to find out the net results either in the terms of profit or loss
(Burns, 2010). Following the technique, firm can detect problems and financial difficulties and
take appropriate decision right time to reach financial targets.
Conducting trainings: Business can also conduct trainings for their staff to guide and
inform them about the working of the organization. This rise up their skills, competencies and
capabilities level to perform good and enhance their productivity.
Expansion: The Big Swing Company can diversify their regular activities and functions
through entering into newer markets. With the greater geographical presence, firm can grab
benefits of existing market opportunities, generate consumer traffic, higher revenues and net
profitability as well.
Cost-control mechanism: As said earlier, that poor cost-controlling measures is a
reasons for less return, therefore, such weakness can be overcome through putting restrictions
and control over regular and formal course of activities. In such respect, The Big Swing
Company Ltd’s managers must regulate and supervise the business functions and put restrictions
to get desired results through optimum resource utilization (Halme and Korpela, 2014).
Curtailing wasteful spending and encouragement of saving will enable firm to bring success and
maximize competitiveness to a great extent.
Quality services: It is the key of goal, through delivering best quality products and/or
services at an affordable prices assists firm to attract more and more customers and maximize net
yield. Thus, it can be advised to perform quality work for their audiences exactly as per their
original need or requirement.
Advertisement and promotion: In order to generate consumer traffic, it can be
suggested to The Big Swiss Company to prepare an excellent marketing plan to attract and
encourage potential customers to demand the business offerings (Rainer, Cegielski and Sanchez-

Rodriguez, 2013). It helps to create a good reputation in the market and maximize strategic
capabilities of the firm to a major extent.
2.2 Analysis ways in which existing performance could be maintain and strengthened
In order to viewing financial data, it can be assesses that The big swing company Ltd.
Working effective to maintain and strengthen at workplace. In order to increasing current
business working, different ways can be take in which the cited firm easily enhance their
effective operations at workplace (Down, 2015). It is very beneficial for the organization in
which they can maintain sustainability at workplace. They are as follows:
 The big swing company Ltd. Can diversify their business which involves profitability at
workplace. Thus, it provides planning development for maintain effective working
environment to measure outcomes at workplace. It also enhances services of company in
which the cited firm can make sustainability within the enterprise (Bovée and Thill,
2015). As results, the organization can overcome their weakness as well.
 In addition to this, business also posses various activities which assist to make
sustainability with taking positive outcomes and satisfy customers demands and their
requirements. Thus, the cited firm need to conduct proper training and development
program for enhance workers capabilities to offers profitability at workplace (Halabí and
Lussier, 2014).
 The cited firm working for benefits of customers and employees profitability within the
enterprise environment. The big swing company Ltd. Make their operations which assist
to develop profitability and positive results at workplace. In addition to this, the company
can also use sustainable development of employees performances which make
profitability within the company performances. Thus, they can also tale profitability
within the enterprise (Karataş‐Özkan and Chell, 2015).
2.3 New areas in which business can be expand by the firm
Big Swing company Ltd is operating in the multiple areas like manufacturing products
related to wood, cork and platting materials. Firm have well developed infrastructure and it can
use same to develop other products. The new areas in which business can be expand by the firm
are as follows.

Manufacturing furniture’s: Big Swing Company can diversify its business in furniture.
Currently, firm is producing varied items that are prepared by using wood. Thus, firm have some
years experience in production of items that are produced by using furniture. At the workplace
there is a machine that is related to wood (Burns, 2010). By adding few more relevant machines
at the facility firm can commence manufacturing of furniture at the workplace. For this business
plan existing infrastructure is the USP for the firm. Big Swing company can also sale
customized furniture to the customers. This will be unique business model that is never followed
by any rival firm till the date.
Clutch plates: Currently, firm is manufacturing articles by using cork. Cork can also be
used to manufacture wide variety of products like clutch plates. These plates are used in cars and
other vehicles. Business firm must start producing clutch plates because there is a great demand
of automobiles in the market. Hence, in upcoming time period demand for clutch plates will also
increase. Firm can establish its contacts with the Automobile companies and as per specification
provided by them it can produce clutch wire for the firms. Firm is producing cork products and
it has relevant machines and experience. Thus, firm can commence is business of producing and
selling clutch plates.
Bamboo products: Big Swing company can produce bamboo products on its workplace.
Currently, mentioned company is producing straw and platting materials (Bridge and O'Neill,
2012). Thus, it can be said that firm have labor force which have experience in manufacturing
items by using bamboo products. Current workforce can also be used to manufacture the varied
bamboo products and can be exported in nations like China and India where there is a huge
demand of the relevant products.
TASK 3
3.1 Assessment of existing business objectives and plans
Some of the objectives and plans of the Big Swing are as follows.
 Develop customer relation: It is very important to develop strong relationship with the
customers. This is because same person can become customer of the business for the next
time period. Moreover, if customer is satisfied then he can recommend other one to try
firm product. Thus, main goal of the relevant business firm is to maintain strong

relationship with the customers (Chaston, 2014). Firm maintain complete record of the
customers who make purchase from the premises of the firm. Calling is done to them in
order to identify any issue if faced by them in respect to the product. On the basis of
feedback areas where improvement need to be made can be identified. Thus, it can be
said that there is a huge importance of developing strong relationship with customer for
the business firm.
 Retention: Retention of customers in the business is the another objective of the business
firm. Main target of the business firm is to sale goods to the single customer multiple
way. Only by doing so firm can multiple number of customers in its business. There is a
need to follow specific business strategy by using which existing customers can be
retained in the business.
 Increasing sales: Increasing sales of the business is another main objective of the
business firm. It wants to accelerate its business revenue growth rate unto 15% on year on
year basis. It is very important to maintain specific growth rate in the business because
only by doing so business can be increased at fast pace. Market strategy must be prepared
by the business firm that help it in fostering revenue in the business.
3.2 Review of the business plan and areas where changes can be made
Out of the three areas where business firm can commence its business is furniture. In
comparison to other two business idea mentioned one is best. On review of the business plan
that is related to the furniture production some modifications are required. Firm must sale its
product through online and offline platform (Berger, Cowan and Frame, 2011). Earlier, it was
proposed in the business plan that product will be sold on through brick and mortar model. With
passage of time period large number of the business firms makes their business online. Thus, Big
Swing Company must also start selling its furniture’s and other products online. Under this firm
must start its own portal where people can view different model of the specific company
furniture. There must be an option where people can place an order for purchase of furniture. By
doing so Big Swing company can create its customers through online and offline platform and
increase number of customers at rapid pace in the business (Cowling, Liu and Ledger, 2012).
Thus, it can be said that there are number of benefits that firm receive by making its business
online. In order to implement this change firm must establish a contact with the web developer
and must designed a portal in which there must be a two separate window. In first one all

furniture items must be revealed to the prospective customers on screen. Thereafter there must be
a small column like window where by pressing a button one can place an order to purchase
furniture at the specific price. By doing so good appearance can be given to the portal by the
business firm. In this way changes in respect to commencing online business can be made by the
firm in its business.
3.3 Action plan to implement changes
As part of action plan many steps will be undertaken by the business firm. In this regard
first of all contact will be established with the web developer and prototype of the product will
be developed. Under prototype layout of the website will be prepared. If management of Big
Swing Company will feel need of modification then relevant things will be communicated to the
web developer in respect to changes that must be done in the website design. Detail discussion
will be carried out with the web developer in respect to changes that can be done in the prototype
(Herbane, 2010). Thereafter project of web development will be classified in to multiple stages
and under this step by step many things will be added to the website. In the website two different
windows will be made available to the customers. In one window customers will be able to view
image of the furniture items that are readily available from the firm. In second window
customers will get some inputs which they will be able to use to prepare design of the custom
furniture. Thus, by doing so company will be in position to satisfy needs of all sort of customers.
Price window will be prepared separately under which one will be able to enter the price at
which he wants to purchase specific sort of furniture from the business firm (Dennis, 2011). In
this way changes will be implementing by the firm in its business and it can come in position
from where easily product can be sold to the customers. With passage of the time period business
firm must modify its website in order to ensure the needs and wants of the customers will be
meeting on time by the business firm. scuh kind of thing will also help business firm in beating
rival firms in completion.
TASK 4
4.1 Impact the proposed changes which impact on business and employees
There are various changes in the organization which bring to protect with aim to generate
positive impact on the enterprise (Thomas, 2013). There are different proposed changes
identified in the company. They are as follows:

 Increasing in revenues: Proposed changes consists main aim to increasing profitability
of The big swing company Ltd. Therefore, outcomes are generates to implement project
results. It will helpful to make high sales and more profits to create high revenue at
workplace. Thus, the cited firm can easily make their effective results through operating
various arrangements (Rainer, Cegielski and Sanchez-Rodriguez, 2013). In addition to
this, it also creates possible working environment with generate high revenue.
 Worldwide acknowledgement: When the organization enter in international market,
they are gain various enhancement in worldwide acknowledgement. In addition to this, it
also assists to attain global benefits which high recognize to make effective plan at
workplace (Karataş‐Özkan and Chell, 2015). In this aspect, The big swing company Ltd.
are enhancing their business in various parts of the world so that the company can
achieve high profits easily. It will also helpful to improve workers benefits and their
lifestyle through increasing knowledge and skills for effective working environment.
 Enhancing goodwill: With the help of proposed changes, the enterprise can make
effective functioning. It assists to collaborates customers who make goodwill of company
(Vorley and Williams, 2016). When The big swing company Ltd. establish their effective
operations, they can easily make goodwill through attract various customers.
International policies assist to make sustainability with increasing living standard as well.
 Individual acceptances: In order to initiate objectives of the company, every individual
need to make changes at workplace. It develop innovation for maintain sustainability for
working effective at workplace. In respect to this, business has chance to attract various
customers to enhance profits of the company (Halme and Korpela, 2014). The big swing
company Ltd can easily make possible changes which can be accept by each member of
the company so that they can effective results generates at workplace.
4.2 Plan for how the changes will be managed
It is very important to manage plan of the company to operate effective functions at
workplace. Thus, the big swing company Ltd. requires to implement effective plan which assist
to develop smooth functioning which is related with objectives of the enterprise. Some crucial
elements need to manage by the cited firm (Rainer, Cegielski and Sanchez-Rodriguez, 2013).
They are as follows: