Shine Communication: Performance Analysis and Recommendations Report

This report provides a comprehensive business analysis of Shine Communication, a small business enterprise operating in the media and communication sector in the UK. The analysis includes an assessment of the company's strengths, such as its market position and client portfolio, and weaknesses, such as the threat of competitors and staff retention issues. The report utilizes comparative measures of performance, including financial ratios derived from profit and loss statements and balance sheets, comparing Shine Communication to a competitor, Alexander the Great, to evaluate financial health and operational efficiency. Furthermore, the report offers recommendations to overcome weaknesses, including planning procedures, employee development programs, and cost management strategies. It also discusses ways to maintain existing performance and proposes business plan revisions and action plans for implementing changes, considering their impact on the business and its personnel. The conclusion summarizes the key findings and recommendations for Shine Communication's future growth and success. The report is designed to provide insights into the challenges and opportunities faced by the business and to suggest strategies for improvement.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Company's profile and their strength as well as weaknesses................................................1
1.2 Organisation is using comparative measures of performance...............................................2
TASK 2............................................................................................................................................7
2.1 Recommendations with justification to overcome weaknesses............................................7
2.2 Ways of maintaining existing performance..........................................................................8
2.3 Recommendations.................................................................................................................9
TASK 3..........................................................................................................................................10
3.1 Assessment of business objectives and plans to incorporate proposed changes.................10
3.2 Business plan's revision.......................................................................................................11
3.3 Action plan to implement changes......................................................................................11
TASK 4..........................................................................................................................................12
4.1 Impact of proposed alteration on business and their personnel..........................................12
4.2 Plan how changes will be managed....................................................................................13
4.3 Improvements in performance of business.........................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Small business enterprises are very important for any country for their growth and
development. In this type of business there are less than 50 employees are employed. In UK,
there is also some other things that can be considered such as assets value, annual turnover, net
profit etc. There are approx. 4.5 million businesses in UK which are doing their business on
small scale. These types of enterprises also provide employment opportunities to the people of
UK so that it helps to reduce the rate of unemployment and poverty line in the nation. They also
need some investments in their business so that they can carry on their career also as an
Entrepreneurship. If they grow continuously then they can be a medium enterprise so that they
can also change their policies also. The purpose of this report is determines the strength and
weakness of the Shine communication (Blackburn, Hart and Wainwright, 2013). Also they need
to overcome from their weakness so that they can enhance their profits. They can also implement
plan in their business so that they can improve their business and also they can monitor their
performance so that they can find out the effectiveness of their business.
TASK 1
1.1 Company's profile and their strength as well as weaknesses
Shine business doing their business in media and communication in UK. They are on 6th
position out of 100 small businesses in UK. They also do their activities with the help of social
media and also they organize some campaigns in different forms. There are some basic values of
Shine communication such as:
 Smart
 Fresh
 Connected
 Committed
They also hire best people for them so that they can achieve their organizational goals and
objectives in an effective manner. If there is any need any of training then they also provide it to
their employees so that they can enhance their performance (Gronum, Verreynne and Kastelle,
2012).
There are some strength and weakness of Shine communication which can affect their
business performance either internal or external, these are described as below:
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STRENGTH:
Market position: In UK, the market position of Shine communication is very good. In other
words, their reputation or goodwill is very good in the market that will help them to take
advantage from their customers. They also maintain their relations with their customers or public
that will also help them in enhance their profits.
Client portfolio: Shine communication has very good position in the market so that they also
have good portfolio of client. Their clients are a group of international hotel etc. If company has
the strong market position as well as strong clients then that will help them to reach at the high
level (Jones and Rowley, 2011).
WEAKNESS:
Threat of competitors: There are lots of small businesses in UK which are continuously
increasing so that Shine communication has the threat of new competitors in the market place.
Staff retention: They do not provide motivation to their employees so it may be very difficult to
them to retain the employees in their company. So if they want to retain employees then they
must have to provide proper satisfaction to them regarding their job.
1.2 Organisation is using comparative measures of performance.
Shine communication embraced different procedures for measuring the execution of
association to acquire important changes business. Basic similar proportions are clarified as
beneath:
Comparative measures of performance utilizing financial elements:
P & L account for year ended 30th April 2016 to 30th April 2017, which are shown as below:
2016
£
2017
£
Sales 65 125
Cost of Sales 45 80
Gross Profit 25 30
Overheads 7.5 10
Net. Profit 20 22.5
Balance of Shine communication for year ended are shown as below:
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30th April 2016 to 30th April 2017
£ 2016 £ 2017
Fixed assets 10 7.5
Stock 4 10
Debtors 7.5 20
Bank 1 0
Total 12.5 30
Current liabilities:
Creditors 3 10
Bank overdraft 0 7.5
Total 3 17.5
To determine current ratio:
Current assets / Current liabilities
2016 2017
Margin of net profit = net profit / net sales *
100
20 / 65 * 100= 15.35
Net edge = 22.5 / 125 * 100 = 9
Margin of gross profit = gross profit/ net sales
* 100
50/130*100= 38.46
Gross margin = 30 / 125 * 100= 12
Quick ratio = current asset – stock / current Quick ratio = 60000- 20/ 35000= 1.71 times
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liabilities
12500 -4 / 3000 = 2.0825 times
Current ratio= 12500 / 3000= 4.17 Current ratio = 30000 / 17500 = 1.71
P & L account for the year ending 30th April 2016 and 30th April 2017 of Alexander the great
which are described as beneath:
2016 (value in £) 2017 (value in £)
Sales 55 110
Cost of sales 30 75
Gross profit 25 35
Overheads 5 10
Net Profit 20 15
Balance sheet for the year ended 30th April 2016 and 30th April 2017 of Alexender the great, is
mentioned as beneath:
2016 (value in £) 2017 (value in £)
Fixed Assets 10 7.5
Current assets
Stock 4.5 10
Debtor 6 18
Bank 1.5 0
12 28
Current ratio: Current Assets / Current Liability
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for the Year 2016
12000 / 3000= 4.00 times
Year 2017
28000 / 12500 = 2.24 times
As per above mentioned discussion, Alexander the great's current ratio is determined with
assistance of current assets as well as current liabilities. Hence, it represents that in year 2016
existing ratio of company is 4 times appropriate while comparing with current liabilities. But in
comparison to year 2017 it is 2 times efficient with current liability of a firm.
Quick ratio (Acid test) : Current assets – Inventory / Current liabilities
for the Year 2016
12000 - 4500 / 3000= 2.5
Year 2017
28000 - 10000 / 12500 = 1.44
Gross profit Ratio: Gross profit / sales * 100
for the Year 2016
25 / 55 * 100= 45.45
Year 2017
35 / 110 * 100= 31.81
Net Profit ratio: Net profit / sales * 100
for the Year 2016
20 / 55 *100= 36.36
Year 2017
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25 / 110 * 100 = 22.72
Interpretation: According to above information of shine communication quick proportion of an
association is computed by considering the benefit and misfortune account and monetary record
of a venture which give precise money related data. Actually it is exceptionally useful in
ascertaining current proportion by contrasting the financial plan of 2016 and 2017. As per this it
has been comprehended that in 216 speedy proportion is 4.16 times though in 2017 it has
changes that is 1.71 because of the change in different components which influence the offer of
an organization in different viewpoint. Fundamentally it has been figured with the assistance of
stock, net benefit and net offers of an endeavour in both year.
While looking at between Shine communication and Alexander the great it has been
comprehended that most extreme benefit is obtain by Alexander the great as of its high deals
with more powerful systems. Indeed, it has been computed by considering current risk and
resources of an organization with the assistance of earlier year and current year monetary record
and in addition benefit and misfortune account. Along these lines Alexander the considerable
have produce increasingly income which featured there amazing plans and approaches.
Year ending 2014 Shine communication Alexander the great
Staff turnover 10 15
Absentee rates 30.00% 35.00%
% of job offers accepted 40.00% 45.00%
Result of job satisfaction
surveys
After review for measuring the
fulfilment level 65% of
representatives are happy with
their occupation.
While here 75% are happy
with their occupation part.
Competence surveys 55.00% 75.00%
Perception of clients towards product quality and in addition services
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Year ending 2014 Shine communication Alexander the great
Is it better worth Yes Yes
Can it really supply bestest
execution
Little bit Best
How can it contrast and
contender offerings
Prices of their products and
services are high and in
addition they never provide
any sort of discounts
But, they render affordable
value of goods to their buyers.
By what method will it
contrast and contender
offerings later on given
aggressive developments
Items are not much innovative
thus it can influence choice of
clients.
They produce inventive as well
as creative goods for their
purchasers and as result to it
they accomplish needs and
wants of each and every kind
of buyers.
TASK 2
2.1 Recommendations with justification to overcome weaknesses
Shortcoming is a noteworthy purpose for unsuccessful undertaking since it influence
general condition inside and remotely in various way (Añón Higón and Driffield, 2011).
Fundamentally, to establish an effective association, they have to overcome their obvious and
imperceptible obstructions by executing different strategies and techniques which act to be
valuable for organization for achieving their objectives and targets within period of time. Hence,
chiefs of Shine communication set up a powerful methodologies to expel the boundaries of a
refered to organization which are said as beneath:-
Planning procedure: It is fundamental to design every one of the exercises in a legitimate way
to expel blunders and errors which may come at the season of usage programs.
Conduct improvement sessions: According to this, Shine communication needs to execute
different projects to upgrade information and abilities of their representatives with the goal that
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they can without much of a stretch take in the best approach to play out their own and expert
objectives.
Estimation of cost: Capital goes about as a spine of each firm either little or expansive as every
one of the capacities specifically or in a roundabout way rely on fiscal assets (Fassin, Van
Rossem and Buelens, 2011).
Alteration in existing strategies: Barriers are the significant impediments for each venture
which influence the profitability of firm by amplifying their misfortunes thus it is vital to adjust
existing items and administrations of an organization to draw in a huge number of customers.
All the above shortcoming are overwhelmed by executing successful systems with the
assistance of aptitude people. Fundamentally it is exceptionally basic to lead projects to take out
every one of the hindrances of an association. Subsequently to determine impediments which is
confronted by Shine communication they have to embrace different strides and methodology
which is said underneath:-
 Delegate gifted and skilled individual to conquer boundaries of an organization.
 Execute compelling techniques for limiting their misfortunes.
 Keep up the encompassing of an association by executing appropriate communication
between higher specialist and lower level.
 Make a group to determine every one of the issues of an association (Cowling, Liu and
Ledger, 2012).
2.2 Ways of maintaining existing performance
It is vital to keep up the execution of organization by achieving their objectives and
targets inside least day and age with the assistance of imaginative thoughts. In this manner, for
keeping up the present execution of organization, directors of big business attempt to actualize
different strategies, for example,
 Real quality of this association is nature of their item.
 The items are quality in light of the fact that the provider creates great items utilizing
amazing crude materials and convey on time so their quality is not lost. There is along
these lines a need to keep up this provider, manufactured a significantly more grounded
connection with him.
 Also they can source from different markets where they have comparative or significantly
more quality items (Chittithaworn and et. al., 2011).
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Sound relations: It is imperative to make and keep up solid relations in the middle of higher
expert and lower level administration. To keep positive relations and holding with clients is
likewise essential. Fundamentally, it influences the execution of association in different way. For
instance: if there is appropriate cooperation between representatives then it naturally impacts the
labourers.
Making of agreeable condition: According to this strategy, peaceful environment persuade
representatives to play out their errands and exercises in a proficient way by satisfying the
request of their buyers.
Improvement programs: These projects help in empowering the ability and aptitudes of
representatives with the goal that they can without much of a stretch conquer hindrances emerge
at work environment. Fundamental thought process of this program is to make mindfulness by
giving essential data and information which is prominent at the season of serving clients.
Preparing and advancement: Shine communication tries to direct preparing programs by
delegating experienced people who have capacity to enhance the information of representatives
(Forsman and Temel, 2011). It implies that learning time of an organization is proceed after
occupation too which is extremely helpful for them to increase future development.
Examination programs: If representatives are evaluated on the premise of their ability then
they naturally get roused towards their association's targets.
Versatile to change: It is exceptionally basic for representatives to receive changes which is
directed by association by improving their current arrangements.
Aside from this Shine communication maintain their execution by presenting new and
imaginative thoughts for catching the consideration of number of buyers. Rather than this it is
extremely irreplaceable to lead different projects to build up their goodwill at a commercial
center.
2.3 Recommendations
Private company endeavour needs to consider every one of the variables while extending
its business crosswise over national limits which assume a prominent part in Shine
communication (Preuss, 2011). A portion of the crucial smaller scale and large scale factors are
said as beneath:
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