Small Business Enterprise Analysis and Strategic Recommendations

This report provides a comprehensive analysis of a Small Business Enterprise (SBE), specifically focusing on Unicorn Retail, operating within the United Kingdom. The report begins with an introduction to SBEs and then presents a business profile of Unicorn Retail, highlighting its strengths and weaknesses. A comparative performance analysis is conducted, evaluating the company's financial data over several years. The report then delves into actionable strategies, including overcoming weaknesses, maintaining and strengthening existing performance through technological advancements, market research, and employee incentives. It also explores potential new business growth opportunities such as global expansion and digital marketing. Furthermore, the report assesses the existing business objectives and plans, proposing a revised business plan with a focus on increasing the market budget and customer base, and outlines a detailed action plan for implementing these changes, including monitoring performance improvements over a given timescale.

Small Business Enterprises

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Business Profile of Black Penny and its strengths and weaknesses.....................................1
1.2 Analysis of the Black Penny using comparative measures of performance.........................2
TASK 2............................................................................................................................................3
2.1 Appropriate actions to overcome weaknesses.......................................................................3
2.2 Methods through which existing performance can be maintained and strengthen...............4
2.3 Identifying new business growth opportunities....................................................................5
TASK 3............................................................................................................................................6
3.1 Assessment of existing business objectives and plans..........................................................6
3.2 Revised business plan to incorporate appropriate changes...................................................8
Objective 3:increase market budget by 10% so that customer base of the company can be
increased .....................................................................................................................................8
3.3 an action plan to implement the changes..............................................................................9
TASK 4..........................................................................................................................................10
4.1 action of the proposed changes on the business and its personnel-- ..................................10
4.2 A Plan how the changes will be managed in the business................................................11
4.3 Monitor improvements in the performance of the business over a given timescale...........12
Conclusion- ...................................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Small business enterprises are also known as small or medium scale organisation that
employs small number of workers and does not have a high volume of sales (Cowling, Ledger
and Zhang, 2015). In accordance with this context, this report will present the aspects of small
business enterprises currently incorporating in United Kingdom. The government of the country
is investing huge amount in order to develop the small business enterprises in the country. In this
context, the business profile of Unicorn Retail limited retail organisation incorporating its
business activities in United Kingdom will be covered in this report. The analysis of business
performance will be made in order to identify the growth and development of the business
effectively and efficiently.
Further, recommendation will be provided in order to overcome the weaknesses of the
enterprise and methods will be generated through which existing business performance can be
strengthened. The new areas will be analysed in which business can be expanded effectively and
efficiently. An assessment of existing business plans and objectives will be produced and
transformation in business plan will be made in order to incorporate changes. The impact of
proposed changes on business will be analysed and plan will be made in order to manage
changes effectively and efficiently.
TASK 1
1.1 Business Profile of Black Penny and its strengths and weaknesses
Name of the company UNICORN RETAIL COMPANY
Vision of the company It is a long term view and it is the sources of
inspiration.
Mission of the company It is comminuted to growth and career
development of our staff. They are what tend to
make our enterprise
Key people of the company Director of they company MILLSOM GLYN
Ownership structure Private share base company
History of the company
Location of they company Treeton, south Yorkshire, rotherham
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Key activities of they company Shell retailer, management consultancy activities
other than financial management
Strength-
 It is having cheaper wholesale prices.
 It is offer unique product compeered to other retail company.
 UNICORN has a valuable freehold- property p[portfolio and store land it was an early pioneer of shopping in the UK
Weakness-
 It is having lack in customer services.
 Hypermarkets evidence shows that consumers are moving against shopping in big
hypermarket,
 It is had non supportive buy cycle.
1.2 Analysis of the Black Penny using comparative measures of performance
NISA company UNICORN company
Year Net profit Rate Net profit
ratio
Net profit Rate Net profit
ratio
2012 1200 100 8.33% 1400 200 14.28%
2013 1250 130 10.40% 1200 225 18.75%
2014 1400 128 9.14% 1320 130 9.84%
2015 1320 200 14.28% 1250 250 20.00%
2016 1400 220 15.71% 1500 270 18.00%
In 2012 UNICORN company got NP 1400 with rate 200 and ratio 14.28 but in 2013 they
decrease in NP but its rate is increase with 25 pounds that's why NP ratio is increase but NISA
is a company has NP 1200 and rate has 100 and NP ratios was 8.33 then in 2013 it was having
net profit is 1250 and 130 was rate and they got 10.04% ratio (Rostami, Wong and Lee, 2015).
Unicorn company was has most toffs competitive in this year and increasing in rate. In those
years they having profit. that like in 2014,2015, 2016 UNICORN company give they very tough
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competition for NISA company they always perform better than NISA company but in this
company they perform not nice level. UNICORN company net profit ratio us going on decrease
in sale they increase but in cost may be decrease that why they should cost reduce and increasing
in selling rate and sale are need much increase that why profit ratio will increase.
TASK 2
2.1 Appropriate actions to overcome weaknesses
The small business enterprises incorporating their operations in United Kingdom possess
with some strengths and some weaknesses. The suitable and appropriate actions to overcome the
weaknesses of Unicorn Retail business will help in growth and development of the organisation.
Thus, the suitable actions are provided below: Increasing products types and quality: In order to increase the productivity of the
organization and overcoming the weaknesses, the management of Unicorn Retail needs to
increase the types and quality of products and services (Han, Chen and Zhang, 2014).
This will aid the management of the organisation to increase customers and profits
simultaneously. Further, increasing the types and quality of products will assist the
organisation to capture the market share and increase their market potential. This will
lead the organisation towards growth and development effectively and efficiently. Promotion and expansion: From the analysis of the organization, it was identified that the
management of Unicorn Retail focus less on marketing and promotional techniques.
Thus, it impacts on overall growth and sales of the organization. In order to increase the
sales and revenue of the organization, management of Unicorn Retail needs to invest in
promotional strategies and marketing tactics. This will aid in growth and development of
the organisation (Giaoutzi, Nijkamp and Storey, 2016). Further, by increasing the
promotional and marketing tactics, the management of Unicorn Retail can increase their
customer base and can overcome their weaknesses effectively and efficiently. Home delivery services: In order to sustain in the competitive environment, the
management of black penny needs to start home delivery services. These services will
help the organisation to increase their productivity and profitability effectively and
efficiently. Further, home delivery services helps the management of the Unicorn to
increase their customer base and profits. Thus, it leads the organisation towards growth
and development. From the analysis it was identified the majority of population residing
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in United Kingdom prefer home delivery services (Ward and Rhodes, 2014). Thus,
management of Unicorn Retail needs to embarked on home delivery services in order to
overcome their weaknesses.
 Customers Feedbacks: Customer feedbacks will assist the management to overcome their
weaknesses and leads to the path of growth and development effectively and efficiently.
In order to sustain in the competitive environment, management of the organisation needs
to address the customer feedbacks. This will aid in increasing the customer satisfaction
and helps to increase productivity and profitability effectively and efficiently. Thus,
management must address the customer feedbacks so that organisation can move on the
path of growth and development. The feedbacks of customers will help the management
of the organisation to improve the quality of products and performance effectively and
efficiently (Lee, Herold and Yu, 2016). Thus, they can overcome their weaknesses and
move forwards towards growth and development.
2.2 Methods through which existing performance can be maintained and strengthen
There are ample of methods and steps through which management of Unicorn Retail can
maintain and strengthen its existing performance effectively and efficiently. Further,
implementation of these steps will aid the management of the organisation to increase their
productivity and profitability. The steps are listed below: Developing Technologies: In order to increase the level of performance and effectiveness
in the quality of work, the management of Unicorn retail must invest in new and updated
technologies adequately. The new and modified technologies will help the management
of the enterprise to increase their productivity and profitability. In order to sustain in
competitive retail market environment of United Kingdom, the management of Unicorn
retail must installed hybrid technologies and computerised their enterprise (Herbane,
2013). This will also impact on customers behaviours and they will attract towards the
store easily. Conducting Market research: The management of Unicorn retail needs to organise
market research in order to acquire the current market trends. Customers needs and
expectations are dynamic in nature and they change frequently. Thus, market research
will help the management to acquire new information about societal taste and preference
and on the basis of it they can deliver them what customers wants. This will also help in
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analysing the market environment of retail sector and management can formulate specific
strategies in order to increase the effectiveness in their current performance level. Providing rewards and benefits: Rewards and benefits will boost up the motivation level
of staff and employees. Further, they will become more loyal and committed towards the
organisation. Thus, it is the duty of the management to provide rewards and benefits time
to time in order to increase the employee motivation and satisfaction (Ciravegna, Majano
and Zhan, 2014). Moreover, this will increase the existing performance of the employees
and leads to organisational growth and development. Training and development: Employees must be provided with effective training and
development so that their competencies and skills can be raised effectively and
efficiently. Management of Unicorn retail needs to focus on employees skills and
development so that their productivity and profitability can be increased adequately.
There are various modes and methods of training such as on the job or off the job (Saguy
and Sirotinskaya, 2014). It is recommended to the management of Unicorn retail to
provide appropriate training to the employees or workers so that organisation existing
performance can be strengthen.
 Concentrate on overall organisation development: In order to sustain in the competitive
environment of United Kingdom, the management of Unicorn Retail needs to focus on
overall and professional development of the organisation. This will assist the enterprise to
improve their level of performance adequately. Further, overall organisational
development will raise productivity and profitability of the organisation (Brunswicker
and Vanhaverbeke, 2015). It will also help in promulgating the customer satisfaction and
management can earn ample of profits and revenue effectively and efficiently.
2.3 Identifying new business growth opportunities
Identification of new growth opportunities will help the management of Unicorn retail to
increase their productivity and profitability. In this context, the new growth opportunity are listed
below: Global Expansion: In the era of globalisation, small business enterprises are taking steps
in establishing their market in different – different countries. In order to increase the
productivity and profitability of the organisation, it is recommended to the management
of Unicorn Retail to establish their market outside the boundary of United Kingdom.
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Further, globally expanding the business will also generate new business ideas that will
lead the organisation on the path of growth and development. Digital Marketing: Digital marketing plays essential role in order to increase the
promotional and marketing activities of the organisation effectively and efficiently.
Further, marketing on digital platform is cost effective and management needs to invest
little amount. This will also aid in generating new business opportunity for the
organisation as the management can find range of ideas to expand their business
operations effectively and adequately (Trianni, Cagno and Farné, 2016). Thus, it is
recommended to the management of Unicorn Retail to concentrate on digital media in
order to increase their productivity and profitability. Establishing in new locations: Management of Unicorn Retail needs to establish their
retail store in different areas and territories of United Kingdom. This will help the
management to increase their market growth and market share effectively and efficiently.
Further, establishing new stores in different locations will help the management to
acquire information about taste and preferences of customers of different localities. On
the basis of it they can increase the products types and quantity (Brunswicker and Van de
Vrande, 2014). This will impact on their sales and customer base and organisation will
able to increase their productivity and profitability.
 Online Business: From the analysis of the market and customer preferences of United
Kingdom, it was identified that majority of the customer prefers online mode of
shopping. Thus, it is recommended to the management of Unicorn Retail to enable online
shopping facilities to the customers. This will aid in increasing the customer base and
also assist in growth and development of the business effectively and efficiently (Laufs
and Schwens, 2014). Moreover, online mode of shopping will help the management to
extend their quantity of products and services and they can trade more products
adequately and efficiently.
TASK 3
3.1 Assessment of existing business objectives and plans
In this part, the existing business objectives and plans of Unicorn Retail will be
analysed. The business objectives and plans are made by the management in order to
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increase their sales and profits by providing effective quality of products and services to
the customers. This company having following objective-
 Customer satisfaction- unicorn company is doing work for those customers who is loyal
for the brand. This company work for creative customer who easily understand and
related to the market.
 Building traffic- every retail company is doing work for the collecting people and more
and person looking website and retail website location. That why unicorn use they
many techniques like advertising trough television, newspaper and promotional
specialized activities, coupons etc. (Krishnan, Nandy and et.al.,2014)
 Layout- in retail company is based on store and store is the physicals lay out is an
important component in creating a retail experience that will attract people and
customer. Layout is also important more tan deciding what product where located. It is
also important in online business its show they how much fussiness is success.
 Location- location is also matter in any retail business because it's providing help to
gathering people and traffic. Understanding the trade off between costs and benefits of
location is an important retail decision.
The unicorn company achieve these objective through following -
1. What customer wants- every company is doing work for they customer and full fill
customer need, wants and desire. It is not providing row materials it is providing fines
goods and services in a ready to use form. Retail company is doing work for customer
liking, disliking taste and precedence then providing services and products. A customer
what want and full fill demand this company having most goal. In this including
customer satisfaction this is first priorly of the business.
2. Making price strategy- unicorn company is using most of price strategy because they
want to sale our product and services. Because the price can set maxi man profitable for
each unit sold. Every company product and services show they condition in market. This
show what type customer attract. Price is having value of the product in front of the
customer.
3. Convenience of timing- every retail company creating time utility by keeping the store
open and sale product and services according to customer convenience. Every customer
going where they have all type of retaliated to parking convenience.
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3.2 Revised business plan to incorporate appropriate changes
Unicorn company is having lots of objective they want to full fill there goal and
objective they use some smart objective. These are following-
Objective 1: Reduce price by 5% over the course of the next 12 month
This is help to doing reduce price of they product and services then customer automatic
increases. Every customer want to cheap price then they purchase and loyal with brand and
companies they want the best product and services n cheap to cheap price. So company is reduce
in product purchasing cycle like company purchase product manufacturer then wholesaler then
retailer in this condition they purchase directly manufacturer.
Objective 2:increase first year turnover by 15%before December 2018. In this they want to
increase turnover of sealing and purchasable then automatically profit will increase. It is doing
by only customer satisfaction and they do reduce of price of productivity. It companies can
through increase cumbersome number then they can easily increase turnover. Increasing the
transaction frequency means people to purchase more and more. If company having target of
sales product and they can sale then they increase over turnover. Company can attract thee
facilitates like a customer come for purchasing something then offer some drinks, desert etc. then
customer will attract and purchase more and more item and spend money and then more revenue
company will collect.
Objective 3: increase customer traffic 20% in 2017
This company is use some innovates ideas then increases the foot traffic in over store when foot
traffic is increases then profit also increase. A retail company is use some innovation in product
and give extra facilitates like amenities facilities USB charge, free Wi-Fi, partners with
celebrates and influencers, attractive product etc. retailer store near arrange club, arrange events,
fun zone, animal animation, lounge area etc. these things to providing help to attract they
customer and then attract customer automatically they purchase something.
Objective 3:increase market budget by 10% so that customer base of the company can be
increased
This objective will do smart work because marinating budget is increase then profit
generate and retail company is main aim to sale more and more. Then they will achieve monthly
target then they started extra sale. Then they started sailing extra then marketing budget improve
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and company is making these type of objective they can achieve smart target.(Nguyen, Newby
and et.al.,2015)
3.3 an action plan to implement the changes
This company makes new objective and goal then want to apply and taking action in
following ways-
Step 1:determine objective and goal- retail company make they objective and goal that time to
need of resources of to apply in company like they having reduce price buy 15% over the cost of
the next months then they started to contact with many manufacturers of product and stated to
purchasing product who take cheap prices and give the best product with good qualities and
quantity. Second objective is increases first year turnover by 15% before December 2018. It is
classily base on the target and achieve something new or more. Increasing customer traffic
20%in 2017 march this is based on the footprint on they customer so started work on attract to
the customer. (Sahut,and Peris-Ortiz, M., 2014)
Step 2: employee participation- in this step every company is doing work with employee and
employee also give they contribution to complete achieve the target. They know about how to
attract the customer try level best and know about the company and all condition they support. In
this process whereby employee are involved in all type of taking decision they knower about the
company. It means include employ in like project team or quality circle which employ take this
project, consultation and responsibility in company, and multi channel decision process
Step 3 : development of action plan- it is they provide a way to unicorn company vision and
objectives made concrete. It describes they way employee group will use its started to meet its
objective. Action plan of a number ion or steps changes to be brought about in company like
what, who by when what resources, communication retail company use this step developed after
the mission, vision, objective and strategies of your group. If company develop an action plan
when they ready to start getting things done.
Step 4: implementation action plan- in unicorn company succeed in reducing risk in the long
term the information and recommendations of the mitigation plan should be integrated
throughout Govt. operation.
Step 5 – follow up- in this company check how much near the complete of the target. How to
chive and when to achieve all things in this including. It is the based on last step It gives they
direction get and divided the part depend on condition.
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TASK 4
4.1 action of the proposed changes on the business and its personnel--
 Profitability increase- a company is finding the right balance between capacity and profit
implementing and innovative pricing strategy, or expanding your target markets. A
simple way of profit is the increase price then increase profit. A seal sector business can
increase profit through changes in operating system generate more sales while reducing
expenses. Increasing in sales, try cross selling offering new services and new product that
is complement of they business.
 Brand awareness increase – this company is increase brand awareness because its
providing the best product and services with cheap rate then automatically increasing in
brand and develop our self. In this can every one about the brand and they famous it is
given by a company for a product. It can be through referral program, impressive
customer through guest content, some event organise, product attraction, coupons, local
partnership, offers, social focus etc. (Storey, D.J., 2016.)
 Market share increase- unicorn company is providing the best facilities then increase
market share. This company is stay relevant through motivation, better provided
customer responsibility, uses the most of customer ideas and understand what the
customer want, snap of competitors the try how to customer attract and purchase the
product it's mostly focus on a competitor how to attract the customers and purchase it
they give the best facility to attract the customer. (Hatten 2015)
 Employee satisfaction- a company is going on expand they business then employee
having and taking lots of opportunity they know about they new product and services
they know about new techniques of selling. When business is expanded then
automatically customer increase then they more understand customer how3 to purchase
and how to a customer attract all things they know a. company is also providing training
and development programme so they sale more and more product, they can increase self
knowledge and experience.
 Sale revenue increase- thought in this objective unicorn can generate more and more
sales. And company want to more increase than they can use advertised more that why
increase footprint, gives intermission to the customer to gavel ideas if they have, making
pricing strategy, and making design store then it is also helpful for the company.
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