Mainstage Travel: Business Performance, Analysis, and Future Planning

This report provides a comprehensive analysis of Mainstage Travel, a small business enterprise operating in the UK tour and concert organization sector. The report begins with an introduction to the business and its background, including its ownership structure, history, and activities, followed by an analysis of its strengths and weaknesses. A comparative performance analysis is conducted, contrasting Mainstage Travel's financial standing with a competitor, Exponential-e. The report then explores strategies to overcome the identified weaknesses, including intensifying, diversification, modernization, and integration strategies. It also discusses ways to enhance the company's existing performance, such as leveraging strengths, addressing drawbacks, and securing additional funding. The report concludes by suggesting new areas for expansion, emphasizing the importance of market research and strategic decision-making. The report provides a detailed overview of the company's business operations, financial performance, and strategic planning, offering valuable insights into the challenges and opportunities faced by small businesses in the tourism sector. The report also includes the impact of change management on the business and its personnel, and how to manage and monitor the changes.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Profile of selected business...............................................................................................1
(b) Comparing performance in other areas.............................................................................3
TASK 2............................................................................................................................................4
(a) Measures to overcome weaknesses of business................................................................4
(b) Ways to enhance existing performance............................................................................5
(c) New areas of expansion....................................................................................................6
TASK 3............................................................................................................................................8
(a) Existing business plans and objectives.............................................................................8
(b) Reviewing of business plans.............................................................................................9
(c) Action plan......................................................................................................................10
TASK 4............................................................................................................................................1
(a) Impact of change management on the business and its personnel....................................1
(b) How to manage the changes.............................................................................................2
(c) Monitoring the performance.............................................................................................2
CONCLUSION .............................................................................................................................3
REFERENCES................................................................................................................................3
Books and Journal..................................................................................................................3

INTRODUCTION
A business is defined to be an economic activity started to gain profits. A business can be
divided on the basis of scope and size of operations. Small business enterprises are the
organisations that operate their business at a small scale and they are comparatively new in the
market (Abebe, 2014.). The government categorises enterprises on the basis of turnover and
number of employees. The small enterprises are one that have turnover below 6 million euros
and not more than 50 employees. The leading examples of such businesses are bakery, clinic,
small scale manufacturing and parlours. This assignment takes into consideration the profile of
company and its comparison with its rivals for measuring performance.. The assessment of
strengths and weaknesses will be done here in the report. The future plans of company will be
ascertained as well as action plan will be created to implement the same. Changes introduced in
business will be documented and evaluated here as well.
TASK 1
(a) Profile of selected business
 Name of the Business: Mainstage Travel
 Owner structure: Company is owned and managed by Rob Tominey and Aden lewin.
15% of the equity in company is owned by venture (Dragon) investor Piers linney. He
had invested 100,000 euros for the 15% of ownership in the company.
 History and background: This enterprise was formed by two young entrepreneurs back
in the year 2011 ( Acs and et al., 2013). It mainly organise tours and concerts for the
young generation. In 2013, the young entrepreneurs entered Den dragon looking for
venture capital. They chose Piers Linney to come on board with finance and his
technological expertise. This venture have not experience a bad phase since its inception.
This venture have received 2nd highest capital on the show since 2007. The capital was
offered to them by all the venture capitalist and entrepreneurs preferred Linney due to his
credibility and knowledge in technological areas.
 Activities: Company organises tours. The tours are designed for young generation. Along
with organising tours, enterprise also organises concerts in various parts of the world.
Magaluf and Snowboxx are the two famous festivals initiated by this company and ranks

2nd in terms of ski festival. Keeping in mind the targeted segment, packages are designed
at a budget friendly prices.
 Business Location: Business is carried out in the United Kingdom. Mainstage Travel is
headquartered in London.
Contact details: [e-mail]
 Analysis of strengths and weaknesses: It is essential to analyse the strengths and
weaknesses of company so as to obtain a better understanding of business (Barber,
Metcalfe and Porteous eds., 2016). Another crucial reason is to assess the weaknesses of
company so that they can be addressed to achieve a competitive advantage. Mainstage
Travel also conducts its regular analysis of internal environment so that its position in
market can be strengthened. The assessment of mentioned enterprise is as follows:
Strengths
 Strong market presence
 Renowned amongst young generation
 Budget friendly packages
 Profitability of business Ski festival (Snowboxx)
Weaknesses
 Price wars in the market
 Presence of high competition
 Seasonal market
 Exclusivity to a single age segment
Table depicts the strengths and weaknesses of Mainstage travel in market. Strengths of a
company are its market presence, profitability and its organised tour for younger generation.
These can be utilised to their optimum level so that more revenue and market share can be
captured. Weaknesses are the drawbacks to a company which are to be rectified in no time. The
price wars in market forces a company to achieve economies of scale so that cheaper tours can
be organised (Blenker and et. al., 2012.). Company pays special emphasis to a single
demographic domain and therefore, it can organise tours and travels for the people of other age
groups as well which will enhance market penetration in the UK.
(b) Comparing performance in other areas
Mainstage Travel carries a strong market presence and obtaining a certain level of
profitability (Carraher and Paridon, 2015..). The current position is market is good but the

dynamism of industry is such that a company has to focus on enhancing performance so that
future can be countered with. Company can make effective use of comparative measures which
are utilised to measure performance of the company with rival firms in same market. Various
financial tools which are used in comparison are Balance sheet, profit and loss account and ratio
analysis. These financial records depict the profitability and losses incurred by firm so that
measures and policies can be adopted.
Balance sheet is one of the most common tools used to measure the performance of
company with its competitors. Every registered organisation releases its financial statement at
the end of financial year. This is done to show the level of performance and profitability obtained
by a company within a financial year. The balance sheet of a company consists of assets and
liabilities of a company. The assets and liabilities are mentioned in this written document. The
assets of the business are mentioned on the debit side and liabilities on t

Above financial statements depict that there is a significant decline in the liabilities of
company by 35% along with a significant reduction in assets which fell by 60.93%. The fall in
liabilities is a positive sign whereas trip in assets simultaneously shows decline in the business.
Exponential-e is another small business strategy which caters the cloud storage services
to the people of United Kingdom. As a small business enterprise the company is doing well and
garnering huge amount of profits of the company.
The financial overview of the company is as follows:

Financial overview of the company states for the financial year 2017 states that there
have been increase in assets of the company by 8.98 million euros. The liquidity of the firm have
enhanced as well. The company have increased the area of operations and have employed 52
new employees in this financial year. When comparing the financial status of both the
companies. It is clear that exponential-e is doing well in the market whereas Mainstage travel
have experienced a decline in the assets as well as liquidity of the company.
TASK 2
(a) Measures to overcome weaknesses of business
The identification of weaknesses is crucial as it helps in finding the shortcoming of
performing at an optimum level (Ciampi and Gordini, 2013.). These shortcoming are to dealt

with in an effective manner so that enterprise's performance can be enhanced. Mainstage Travel's
major weaknesses are that is confined to a particular segment of market. The measures to
overcome weaknesses in business are:
Intensifying Strategy: Mainstage Travel can utilise this strategy to overcome its
weaknesses in business (Di Domenico and Miller, 2012). Company can enlarge its operations in
the market of UK through building an effective marketing strategy. The use of aggression in
terms of marketing will make more people aware about company and definitely increase the
foot-over. The company along with designing packages keeps in mind the family and couple
tourist and targeting them with effective strategies to increase the scope and market share of
business.
Diversification Strategy: This strategy focuses on getting rid of weaknesses by
developing a differentiated product that can enter into unexplored segments of markets and can
gain profitability. The diversification strategy is categorised into horizontal and concentric basis.
Horizontal diversification is formulation of product which is accompanying present line of
products. Company can design a package for the couples and ageing people. The concentric
diversification is launching of products which is indirectly related to company. Mainstage Travel
focuses on entertaining guests so they can easily venture into hospitality business.
Modernising Strategy: This strategy focuses on modernising of various fixed and
variable resources of company. This is generally less preferred and less recommended for the
company which is looking to increase its market share. Major reason for the same is that it
involves huge expenditure and carry out high risk which is not preferable in small scale
enterprises.
Integration Strategy: This is one of the most commonly used expansion strategies. It
involves amalgamation and venturing into segments which are closely related. Mainstage Travel
can either venture into hospitality business or can collaborate it business with Thomson so that
companies together can cover higher market segment and improve their revenue as well.
(b) Ways to enhance existing performance
Business performance in an organisation stands crucial. Performance of a business is
defined as the way in which tasks and function in a business are carried out (Draycott and Rae,

2011). The company looks for measures and ways through which performance can be enhanced.
To improve the quality of performance it is essential to find out the drawbacks which are
preventing an organisation to perform at optimum level. The critical analysis of internal factors
help in finding out factors which are to be addressed. The company can improve its performance
through two ways:
 The company can improve its performance by using its strengths to its maximum.
 Rectifying drawbacks can also enhance company performance.
The company at present struggling to provide services at competitive prices. The
organisations who are operating at large scale have achieved economies of scale therefore are
able to design packages at competitive prices. Enterprise can expand its operations through
market development and penetration. The company can look to increase its size of operation so
that economies of scale can be availed.
Availing the finances is a major concern for all the enterprises. The venture capitalist
have invested 100,000 in return of 15% equity but that amount is not enough to sustain the
market for longer period of time. Entrepreneurs can reduce their share of holdings from 58% to
50% through which they can retain their control over the business and can raise adequate
finance. Enterprise can utilise their various schemes launched by the government to support
small business enterprises in the United Kingdom. The government have realised its importance
and have spent 26% of the total expenditure in promoting small business enterprise.
The training of employees plays a essential role in development of the organisational
performance (Gorgievski, Ascalon and Stephan, 2011.). The company can adopt various
programs and strategies to develop human capital of an organisation. The employees have a
direct relation with productivity and profitability of business. Mainstage travel possess a
relatively small number of employees therefore it is not difficult to introduce a training and
development program in the organisation. So that horizon of employees can be widened and it is
one of the economical way to improve company's performance.
(c) New areas of expansion
Mainstage travel is one of youngest and best performing tour operator in the United
Kingdom. This is one of SME that have been able to garner huge profits considering the small
size of the organisation. The company when reaches a stage of maturity in one sector should be

prepared to experience other sectors of business as well. Enterprise have catered the young sector
for the last 3-4 years they now possess the maturity and experience to venture into different
sectors of market. The process of expansion begins with market research as this is a small scale
enterprise this function is mostly outsourced. Research helps in identification of sectors which
are and can be profitable for this company.
Expansion of market should be determined effectively as it carries success and failure of
business upon its shoulders. The tourism company can expand into two aspects:
 Enterprise is confined to design and organise tour packages for the young generation lies
between the age group of 18-25. the first areas of expansion can be venturing into
designing packages for the couples and ageing people in countries such as Spain and
turkey countries known for their heavenly beauty and peaceful lives. The visit of people
in these countries is huge. The entire focus of the company should not given to a
particular demographic segment as there are opportunities to expand in other segments as
well. The renowned name of the company will act as crowd puller.
 The another segment in which company can expand its operations is venturing into
hospitality business. Enterprise is providing entertainment facilities to people and
garnering profitability for the business. The company can open up hotels at key
destinations. For instance Snowboxx is organised in Mont Blanc therefore an enterprise
can venture into accommodation services as well.
 This enterprise can venture into organising and designing various events and festivals
around the globe. It is one of the contemporary sector which carries enormous amount fo
opportunities which a company can avail at first. Organising various tours of pop stars,
destination weddings and concerts are the latest trend in the market which can equip a
company with huge level of profitability and market share.
It is the need of hour for the company to expand its operation which can help in obtaining
competitive advantage and can secure a company from the threats of new entrants in the market.
But satisfying the need of prospects in a qualitative and price conscious manner should remain
the priority if it wishes to sustain in the market for long.

TASK 3
(a) Existing business plans and objectives
Every organisation carries its own set of plans and objectives (Kaushik, P and et al.,
2012). These equip an organisation with sense of direction and also acts as a target to achieve.
The objectives are short term goals for a business formed specifically for an year or so whereas
Vision of the company is the sole purpose of carrying their operations in the market. Mainstage
travels organises tours for the young cost conscious people. The main objectives of the company
are:
 Enhance responsible tourism
 Satisfying customers through giving them the “Best time of their life”.
 to provide quality experience to the travellers.
 Generation of employment opportunities for the people involved.
 Organise sustainable tours.
There are various plans developed by a company to cater all the major segments that are:
Employee's Vision: Employee constitute as the most important part of an organisation.
Employee are the heart of an enterprise therefore a company should always recruit the best
suitable people in the organisation ( Lambert and Davidson, 2013). The environment and culture
should support learning and productivity so to obtain best out of the employees.
Customer's Vision: At present the customer of the company constitute young generation
filled with adrenaline. The company organises various festivals and ski tournament to cater the
same and provide them with a best experience of their lives. The tours organised are kept at low
prices so that more and more youngsters afford the same. The customer satisfaction is always
emphasised in this organisation and policies and decisions are formulated keeping in mind needs
and expectations of consumers.
Shareholders vision: Mainstage travels is owned 15% by venture capitalist and rest by
the young entrepreneurs (Lamphere, 2011.). The expectations of them from the business is
achieving certain level of profitability and fulfil the vision of the company. The company
looking to expand its operations to be the best tour operator in the country.