Analysis of Levi Roots Reggae Reggae Foods Ltd. Business Report

This report provides a comprehensive analysis of Levi Roots Reggae Reggae Foods Ltd., a small business enterprise that gained prominence through the UK television show, Dragon's Den. The report examines the company's profile, offering a comparative analysis of its financial performance, including balance sheets and liabilities, against competitors like Hungry House. It assesses strengths and weaknesses across marketing, production, sales, technology usage, and human resources. Furthermore, the report provides recommendations for addressing weaknesses, such as strengthening marketing techniques and improving management training, along with suggestions for expansion and new product development. The report also outlines steps to strengthen existing performance, including distribution channel improvements, environmental analysis, and customer feedback analysis. Finally, it includes an action plan for implementing changes and analyzes the impact of these changes on the business and its personnel.

SMALL BUSINESS ENTERPRISE
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Table of contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Company Profile..............................................................................................................................3
Providing a comparative analysis of financial performance of business in last financial year and
assessing strengths and weakness (AC 1.1).....................................................................................4
Comparing performance in the areas of marketing, production, sales, use of technology, human
resources (AC 1.2)...........................................................................................................................5
Task 2...............................................................................................................................................7
Recommendations regarding the weaknesses of Levi Roots Reggae Reggae Foods Ltd (AC 2.1) 7
Analysis of the steps through which the existing performance can be strengthened (AC 2.2).......8
Suggestion regarding the new areas where the organization can expand (AC 2.3)........................9
Task 3...............................................................................................................................................9
Giving assessment on persisting business plans and objectives (AC 3.1).......................................9
Reviewing plans for business and suggesting areas for making relevant changes (AC 3.2).........10
Preparing an action plan for implementing changes (AC 3.3)......................................................11
Task 4.............................................................................................................................................12
Impacts of proposed changes on business as well as on its personnel (AC 4.1)...........................12
Planning for managing changes within the business (AC 4.2)......................................................13
Analysing improvements in business performance over at least past two years (AC 4.3)............14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
The modern era is comprised of flourished small business enterprises which have contributed to
the booming industry of UK. SMEs have significant efforts in adding to the national income of
UK. The development of the UK market in this global era in each of the fields has been due to
the emerging Small business Enterprises. The study assist in portraying the comparison among
the financial performance of the companies which have evolved due to the medium of television
through a series called Dragon’s Den. the company that has been considered for analysing the
business performance is Levi Roots Reggae Reggae Foods Ltd.
Task 1
Company Profile
Levi Roots Reggae Reggae Foods Ltd. had commenced on 18 February in the year 2008 and had
sustained for so long till date due to the series Dragon’s Den in UK. The concerned company
which has been taken up for performing the business analysis is Levi Roots Reggae Reggae
Foods Ltd. the company has a matrix organisational structure which consists of 2 active
secretaries along with 2 active directors (startups.co.uk, 2017). Levi Roots had emerged based on
the making of a particular and unique Caribbean flavoured sauce which had been remarkable and
instant hit on Dragon's Den. The ’Levi roots’ brand had been identified with endless possibilities
of getting popular after the investors- Peter Jones along with Richard Farleigh invested ￡50,000
against 40% equity (www.leviroots.com, 2016). The British-Jamaican proprietor, Levi roots had
put his name in famous series such as music albums, cookbooks as well as his own good festival
inspired through Caribbean city lights, owned a cooking show on BBC TV and even planned to
launch a global and varied chain of distinct restaurants to make the business far more popular.
The company employs almost 30 people and had a net worth of ￡322.4k as a total turnover. The
company had been flourishing more than almost 5 years being a start-up (Demil et al. 2015,
p.10).
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Providing a comparative analysis of financial performance of business in last financial year
and assessing strengths and weakness (AC 1.1)
As supported by Estampe et al. (2013, p.250), the proper management of an organization deal in
the better understanding of the situation and by comparing o e organization with that of another.
It is evident that use of the organizational financial statement works the best in the understanding
of the situation of one organization with that of the others. It is evident that the operation in the
organisation is for the smooth development of the society as well as the stakeholders of the
organization. Below is the comparison between two organisations of same sectors and from same
geographical location
Figure 1: Balance sheet of Levi Roots
(Source: www.leviroots.com, 2017)
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Figure 2: Balance sheet of Hungry House
(Source: hungryhouse.co.uk, 2017)
Analysis: From the above two figures it can be evidently understood that the liabilities of the
Hungry house is far less than that of the Levi Roots. It is thus evident that the opportunity
provided by the organisation “Hungry House” is more than that of the Levi Roots. The retained
earnings of the Levi roots is less than that of the Hungry House, which ensures that the
organization is not enough capable of dealing with unfavourable situation.
Comparing performance in the areas of marketing, production, sales, use of technology,
human resources (AC 1.2)
The financial performance of Levi Roots Reggae Reggae Foods Ltd. could be explained based
on the areas of human resources, sales, production and marketing as well as use of technology.
According to the observations of Camisón and Villar-López (2014, p.2900), the company had
huge sales and through the use of technology it had increased its sales on a high level in order to
achieve its goals and objectives. The prime goal of the firm had been to expand its business and
spread the essence of the Caribbean flavoured sauce across the world (Ngai et al. 2014, p.90).
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The increase in sales had been identified through the turnover of the company in an accounting
year. The company's sales depend on the productivity of the employees, and through its sales it is
much clear that the employed people in the company are much productive and skilled. In words
of Wang et al. (2016, p.100), the expertise of the employed people had increased sales of the
company every year and enormous profit had been accumulated within a year.
Use of technology for making varied products and servicing of people had been observed
considering the firm, Levi Roots Reggae Reggae Foods Ltd. Through advancement of
technologies in the firm, the firm had pursued much success and fame compared to other
industries operating in the persisting market. As per the suggestion provided by García-Morales
et al. (2014, p.1470), seeking for customer’s attention through advanced digital appliances and
network had been also observed as the part of the flourished nature of business. In the modern
era, connecting to the customers and receiving their opinions had been much important for
making the business organisation achieve success and growth. As mentioned in the discussions
of Brouthers et al. (2015, p.1165), imparting several ideas from different corners of the world by
getting connected to each other, the employees can easily achieve their goals through use of
technology in a proper way. Levi Roots Reggae Reggae Foods Ltd. had been superior to other
companies operating in the same market in the above fields.
Production house of Levi Roots Reggae Reggae Foods Ltd. had been much bigger and spacious
for the bulk production of caribbean-flavoured sauce and varied spicy products to air out the
fragrance in the city. According to the opinions of Chae et al. (2014, p.4708), cost of production
had been relatively lower as compared to the sales and hence profits accumulated per year had
been significant and considerable. Bulk production had been identified which has served as the
turbine for steaming the business engine which made the business supreme in front of other
companies operating in the UK market.
Marketing had been enough supportive for the company to reach to the customers and being
identified globally. In the opinions of Gonzalez et al. (2014, p.92), receipt of global recognition
had been encouraged through marketing essentials of the business. Promotional activities and
different banners and hoardings to be hung out on the roads had positively impacted on the
flourishment and expansion of business. As mentioned by Bhattacharya et al. (2014, p.710),
employment in the firm had also increased due to proper marketing and advertisements which
led people to reach them and identify them as a stable firm.
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The human resource department had been much functional and ensured smooth operation for the
expansion of business in the years in a wider sense. According to the words of Qu et al. (2013,
p.157), the recruitment and selection process of the individuals had been extremely smooth and
hence, the employment of individuals had taken place in a broader sense. Hence, the firm had
pursued its growth and development through achieving a potential success in the fields of sales,
production, marketing, technological usage and human resource department.
Task 2
Recommendations regarding the weaknesses of Levi Roots Reggae Reggae Foods Ltd (AC
2.1)
The Levi Roots Reggae Reggae Foods Ltd has faced certain limitations in their business sector
and they need to resolve those weaknesses in order to achieve the success in the competitive
market. They need to follow the guidelines of the food safety and based on that guideline they
need to set their product line along with that, in order to provide success in the industry, they
need to learn from their own mistakes. Along with that, they also may follow the strategies that
are used by their rival organization such as the Hungry House. Along with that, they need to be
less dependent on the commodity products. They may also strengthen their marketing techniques
in order to succeed in the competitive market. According to Bajželj et al. (2014, p.927) the
advertisements needs to be more accurate and needs to denote the features of the product and the
services that the company may provide. Along with that, the communication with the consumers
also needs to be appropriate for the above-mentioned organization. Communication is the actual
medium to reach out to the customers and gather their feedback regarding the product or the
service. In addition to that, the organization is lacking specialized management training.
Therefore, it needs to be implemented in the organization. Moreover, Levi Roots Reggae Reggae
Foods Ltd needs to respond to the current market trend. They need to create a set of a new
product along with their new introduction to the market. Most important thing is that they need
to choose a proper target market for their business. Based on that target market the organization
needs to set their business objectives. Moreover, they need to put focus on the development of
the new products and have to maintain the quality of the food products. This can easily enhance
their revenue from the past years. In addition to that, they also need to increase their investment
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in the value-added products. Along with that, they need to increase the competitiveness in the
dairy and the beef section through the proper research work.
Analysis of the steps through which the existing performance can be strengthened (AC 2.2)
Chaston (2014, p.114) stated that the distribution channel needs to be stronger if the organization
needs to strengthen their existing performance. So far, they are having chains in the UK only,
however they can easily expand to the overseas countries. In order to expand in the other
countries, they need to understand the social culture of those countries. Along with the social
cultures, they also need to monitor the political scenario of the countries. They have to evaluate
the rules and regulations of those countries where they want to expand their business. Moreover,
the environmental analysis also needs to be done in order to strengthen their existing business
performance (Goss, 2015, p.87). They need to think from the perspective of the customers.
Based on that perception, they can be able to understand the customer demand. In order to
analyze the customer demand, they can go through a survey process that can easily provide them
with the proper customer feedback. After receiving the feedbacks from the customers, the
organization can develop the new variety of products and can add some extra value to their
existing products. In addition to that, selecting a proper target market for the business is very
much essential for an organization in order to sustain in the competitive market. They need to
apply the differentiated strategy in order to select the proper target market. Through this strategy,
the organization needs to develop the separate marketing mix for the new product development.
That particular marketing mix needs to be followed properly in order to strengthen the existing
performance of the organization. The proper selection of the price, place along with the
promotional activities and product line can enhance the current performance of the organization.
Karanja et al. (2013, p.471) said that the selection of the proper product also needs to be done
very carefully so that the customers can find it interesting. The sales can also be increased by
maintaining the stores properly. The staffs also need to be very helpful to the customers so that
the customers can feel comfortable in the stores. It can easily enhance the customer base of the
organization, which in turn generates the revenue.
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Suggestion regarding the new areas where the organization can expand (AC 2.3)
Levi Roots Reggae Reggae Foods Ltd can expand their business operations in the countries of
the European Union. According to Nguyen et al. (2015, p.221), the set of legislations is more or
less same in those countries. Therefore, it would be easy for them in order to sustain in the
competitive market. Along with that, the tastes of the people are also same in those countries.
Therefore, the existing products can help them to have a competitive edge over the competitors.
In addition to that, the organization has a strong brand image; therefore, it would also help them
to set the business in the other existing European countries. Storey (2016, p.15) stated that the
culture of the people is another factor that the management of the organization can easily take
into account whenever they think of expanding the business in the new countries. The rules
regarding the food safety are also same in the countries. Therefore, the production of the food
items will not be a critical factor to the organization. However, the organization can also expand
to the countries out of the European countries. Then they have to bring the concept of diversity
into their product. The taste of the people from Asia or Australia will not be same. Therefore,
they need to adjust their product line based on the demand of the people. Troell et al. (2014,
p.13260) explained that the marketing channel in the outer countries needs to be analyzing
properly before expanding the business. The main fact is that, wherever the organization is
planning to expand them needs to keep the certain thing in their mind that they need to reach out
to the people, they have to introduce them properly. It means the organization needs to signify
clearly about their characteristics to the people. If Levi Roots Reggae Reggae Foods Ltd wants to
expand their business then these factors may help the management in order to choose the proper
place where they can open up their new venture.
Task 3
Giving assessment on persisting business plans and objectives (AC 3.1)
The assessment to be framed includes the evaluation of different organisation plans as well as
objectives. According to the views of Lewis (2016, p.67), various objectives and plans could be
formulated and assessed that are persisting within the business firm. The firm has evidently met
the objectives of meeting sales targets, providing incentives to the employees and assurance to
the quality of food. The employees feel safe and secure as well as motivated while working in
the firm which has induced them for putting greater efforts. Meeting the expectations of
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customers through its production of sauce and other food related groceries has been successfully
met while the company's goal to expand worldwide has not yet fulfilled properly. According to
the observations of Rapaccini et al. (2013, p.315), this is because the employees are required to
be more skilled and full of expertise.
Along with these plans, the plan for reducing cost and expenditure has been met to some extent
since the company still possess liabilities which reduce the net assets of the firm. In words of
Smyth and Vanclay (2017, p.79), possessing a brand loyalty has been another most important
objective of the firm to meet up since it would ensure the expansion of the business. Hence, the
existing business objectives and plans have been assessed and reviewed on the basis of the
organisational performance and its outcomes.
Reviewing plans for business and suggesting areas for making relevant changes (AC 3.2)
Several plans for business have been reviewed for expansion of business in different areas such
as financial department, human resource department and management of the firm. According to
the observations Succar et al. (2013, p.180), plans are framed based on idealising several
procedures and implementing them in an effective way. Financial plans might include
strengthening of the financial base of the firm, maintaining the cost and expenditures involved in
the production procedure of the firm, increasing the sales through enhancing labour productivity
and managing financial accounts of the firm. In words of Rosemann and vom Brocke (2015,
p.120), these plans serve as the basis in determining the financial hold of the firm. Work time
and the pay scale shall be kept high for inducing employee retention and reduce the probabilities
of employee turnover.
Other plans include development of the human resource department which includes the processes
of recruitment and selection, offering promotions to the senior most officials and providing
incentives for the existing employees to improve their organisational performance. As per the
opinions of Bocken et al. (2014, p.65), rewards and benefits to be paid to the employees would
suggestively induce the employees to work harder and better and get motivated by the rewards or
benefits. Substantial plans encompass the management as well in order to look after the prime
operational executions of the employees. The management plan includes devising new strategies
for managing of the employees, conflicts among them and motivates them through imparting
training and learning lessons. As per the views of Smyth and Vanclay (2017, p.78), reviewing
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management plan would impact upon greater efficiency of the employees, team leaders as well
as the managers. It could be suggested to look after the proper ad abrupt expansion of the
business worldwide so that every people or customer has access to the products of Levi Roots
Reggae Reggae Foods Ltd.
Preparing an action plan for implementing changes (AC 3.3)
Actions Time
Horizon
Measures/Impacts Associated risk
Imparting adequate
training and learning
lessons to the employees
for exerting more skills,
knowledge and expertise.
3 months Induce the employees for
putting up of greater efforts and
stay motivated in their work
More expenditure
and cost incurred
Enhancing network of
communication for
reaching the customers
worldwide in order to
enhance the business
15 days-
1 month
Facilitating worldwide
promotions and receiving
feedbacks from the customers
and knowing about their
opinions and perceptions
Cost would increase
by implementing
new equipments
and machineries
Managing enough
resources for smooth
operation of the
production level
4 months Smoothening of production
levels and increasing outputs
Time consuming
and labour-oriented
risks
Bringing up of financial
stability of the firm for
avoiding any financial
crisis
3 months Managing smooth financial
operations of business
Discrepancies in
accounting
departments
Table 1: Action plan for implementing changes
(Source: Learner)
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Task 4
Impacts of proposed changes on business as well as on its personnel (AC 4.1)
Ample impacts of changes that could be assessed due to few changes which had been proposed
for getting implemented within the organisation could be regarded as follows:
New opportunities:
According to the opinions of Serra and Kunc (2015, p.55), capability for embracing change
could help the employees of Levi Roots Reggae Reggae Foods Ltd. would lead to creation of
ample opportunities. Any individual working in the organisation could sufficiently gather enough
knowledge and information about the services and the production of different items. In the views
of Holsapple et al. (2014, p.140), several opportunities of the employees could be observed in
learning new leadership styles and techniques to overcome the loopholes in their respective
productivity. In order to compete with other industries present in the market, the company had
prepared several strategies and technique for ensuring its smooth operation which had increased
its opportunities for expanding it and receive worldwide attention.
Encouragement of innovation:
Businesses such as Levi Roots Reggae Reggae Foods Ltd. which have been adept in handling or
embracing changes could easily foster a suitable working environment which would encourage
innovation. Employees often feel that the ideas and opinions of them would be considered by
owner or manager of the business and even might be quite more enthusiastic to work. According
to the observation of Achtenhagen et al. (2013, p.441), employees are required to think more
creatively that might help the business to grow and expand over future. Marketing skills increase
since more ideas regarding varied products would be received.
Improvement of attitude:
Any personnel and philosophical change within the organisation could impact positively upon
the employee morale and attitudes. According to the opinion of Mellor (2014, p.195), it could
boost up the employees by bringing motivation to work. Changes regarding philosophy of human
resource would allow for a much more relaxed environment that might include casual dress
codes which shall be welcomed by working individuals in the organisation. In the opinion of
Demil et al. (2015, p.12), due to the changes brought about in the organisation, the influences on
both the organisation and 5the personnel have been observed to be positive.
Enhanced efficiency level:
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