Small Business Enterprise: Performance Analysis and Improvement Report

This report provides a comprehensive analysis of LaurisaSmall Asia, a small business enterprise in the retail and hospitality sector, specializing in fashionable clothing and food products. The report begins with an introduction to the company, followed by a SWOT analysis highlighting its strengths (high-fashion clothing, quality food), weaknesses (limited market share, advertisement), opportunities (online marketing, UK expansion), and threats (competition, economic downturn). The report then compares sales and profit generation over several years, followed by recommendations to overcome weaknesses, such as online promotion, quality control, and competitive pricing. It suggests ways to strengthen existing performance, including total quality management, promotional tools, and social media marketing. New areas of expansion are also recommended, including online presence and diversification of products. The report assesses existing business objectives and plans, revises the business plan, and presents an action plan for implementing changes. The report also presents the impact of proposed changes on the business and its personnel, suggests change management strategies, and discusses monitoring performance improvements.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Presenting the profile of Small Asia with their strength and weaknesses .......................1
1.2 Presenting the comparative measure of a performance....................................................2
TASK 2............................................................................................................................................3
2.1 Recommendation to overcome weaknesses.....................................................................3
2.2 Presenting the ways to strengthen the existing performance............................................4
2.3 Recommended new areas of expansion............................................................................4
TASK 3............................................................................................................................................5
3.1 Assessment of existing business objectives and plans.....................................................5
3.2 Revise business plan to incorporate changes....................................................................6
3.3 Presenting the action plan to implement change..............................................................6
TASK 4............................................................................................................................................7
4.1 Presenting the impact of proposed changes on a business and its personnel...................7
4.2 Plan how the changes will be managed............................................................................8
4.3 Monitoring the improvements in a performance of a business........................................9
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Small business have their own importance in the growth of economy. Report main
purpose is to understanding on a management and some changes which may also impact upon a
business and the performance measure of those small business enterprise. Chosen company for
this report is Small Asia which is small firm in Netherlands and provide the best food variety to
their customers and work specially for girls.
Report present swot analysis of Small Asia and using balance sheet and sales result,
report compare the performance from last years. Further, it also describes some action in order to
overcome the weakness and then present ways in order to strengthen up the current strength. In
addition to this, report also recommended some ways to expand new business.
Moreover, report also produce an assessment of existing business objectives and plans
and also revise plans to incorporate appropriate changes. Further study also present the impact of
those proposed changes on a business and its personnel and then suggest some changes in order
to manage the business. Report monitor improvements in performance of a business for a given
time scale.
TASK 1
1.1 Presenting the profile of Small Asia with their strength and weaknesses
Overview of Small Asia: The quoted firm is deal in hospitality sector and provide high
variety of food products for a particular event, clubs etc. the company's main aim is to provide
the best quality of food products such as Asian Food with low herbs and species with low and
affordable rate to their customers. The target market of the company is middle and upper class
people (Leiber, Stensaker and Harvey, 2018). Recently the company is aware of the demand of
people and that is why it offered new variety of food products to their customers at cheap and
affordable price.
SWOT analysis:
 Strength: best variety of delicious food can be consider the strength for a firm. The
quoted company provide low rate price food to their customer by analysing the
perspective of their customers which is normally not perform by any other firm.
Company also uses modern technology in order to make their food product more
attractive so it can be consider another strength for a firm. The staff member of Small
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Asia also keep attentive in order to provide the best customer service to their customers.
The main target market for a firm is upper and middle class people (Dame and Fisher,
2018).
 Weaknesses: Limited market share as well as advertisement can be considered as a
weakness for Small Asia and customers switching power may also affect the image or
profitability of a company in negative way. High competition can be consider another
weakness for a firm.
 Opportunities: Online marketing can be consider as an opportunity for a firm and on the
other side they can also expand their current business in UK because people may also
prefer to taste best variety of food products to their customers. This increases a chance of
their profitability. Company also enter into segments and also expand those areas in
which Small Asia is not present.
 Threats: Small Asia also faces threat because of high end fashionable merchandiser and
even the economic downturn may be another threat for their target market segments.
Company also faces threat to their customers because they also shift their mood to
another brand if they find some better variety of products with low price (Julien, 2018).
Moreover, their rival firm may also use the fake imitations that can decline the sale of
Small Asia and may hurt a business in negative way.
1.2 Presenting the comparative measure of a performance
Sales ratio of the firm
year Small Asia Small Talk B.V
2017 270000 295000
2016 276500 276500
2015 232578 254600
2014 231058 235897
From above, it has been analysed that the sales of the both the company are increases as
compared to last years and it raise the sales up to increment of 15 percent during every year.
Profit generation of the firm
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Year Small Asia Small Talk B.V
PBT PAT PBT PAT
2017 92868 90006 99856 98582
2016 91058 91000 97100 96587
2015 90015 89900 95485 95150
2014 87586 87265 92548 91058
From above table, it has been analysed that the company earn profit and it raises every
year and further it also shows that due to good performance of the company, its profit generation
increases and there are a chances to establish new unit at global level.
TASK 2
2.1 Recommendation to overcome weaknesses
In order to overcome the problem of limited market share and advertisement, Small Asia
should take online promotional technique which assist a business to raise the scale and occupy
great market share in their current existing company. Moreover, by using the online promotional
tool such as social media and internet that help to let people know about the current existing
products which help to raise the sales performance (Sims and et.al., 2018). On the other side, it is
also recommended to a firm that keep providing high fashionable clothes to their customer so
that it will help to overcome the problem of customer switching cost and keep analysing the
products quality and uses the different approaches such as Total Quality Management and Six
Sigma which help to improve their current existing firm.
Beside this, it is also recommended to Small Asia that uses comparative and low pricing
strategy in order to overcome the problem of high competition. Monitoring their rival pricing
strategy and then applied that in their products offered is quite beneficial for a listed company.
Because it has been analysed that people generally prefer those products which are low in rate
and high in quality and in this competitive world, all companies are actually provided the same
quality of products but the only variation is related to their pricing strategy. This factor affects
the company's overall financial performance and as a result, if Luarisa also uses this pricing
strategy then only, it can affect or raise the sales power as well as profitability (Lee-Ross, Darren
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and Lashley, 2009). Therefore, if the firm uses this suggestions then there are a chance to sustain
their brand image in market and can attract wide range of customers towards them by using
different promotional tools as a source of attraction.
2.2 Presenting the ways to strengthen the existing performance
There are so many ways which may help Small Asia in order to strengthen up the existing
performance. The company's strength is that it offer trendy clothes to their customers which is of
high in quality and even more fashionable. This can be existing and sustaining only by using
some approaches in their operational management system such as using a technique of total
quality management which help a firm to keep improving the quality of offered products to their
customers. This technique is mostly used by many firms and it has been analysed that by
promoting their business in near by market which can be more beneficial for a firm to enhances
their current existing sales. Hence, it has been analysed that using different promotional tools
into a business can become another way to sustain their image and also draw attention of many
customers towards them (Hellriegel, Jackson Slocum, 2005). Using social media can be another
way to reach a large mass of customers and by posting their new and trendy clothes into media
can be considered better way to raise the performance into their current existing market.
Currently company also uses internet which help it to provide high fashionable and
trendy clothes to their customers and especially to girls. Because it has been analysed that
customers generally switch to another firm if they found new shop who provide low price
product as compared to Small Asia. To overcome this problem, quoted firm should always use
some promotional tool and offer discount vouchers to their customers so that they can take
benefits from that. Further, firm can also strengthen up their image in market by attracting wide
range of customers towards it and it can be possible only through offering high quality of
products with low rates. Using online system at the time of payment can be considered another
way to save time as well as money. The customer service of a firm is also nice and it can be more
attractive by using online mode of system into their working area.
2.3 Recommended new areas of expansion
Small Asia offered high fashionable cloths to their customers and this strength increases
the chances of their expansion. Because generally people prefer high quality of product with low
price and it is done by quoted firm. The target market of the company is middle and upper class
people and it actually produces products as per the need of their customers. However it is to be
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recommended to Small Asia that developing online system to their customers can be an
opportunity for other customers except from their target market. It can be consider a great
expansion for a firm to use the online presence (Stokes, Wilson, 2010). The entire world is
become digitalised and all of them are preferred to use online system which saves time and
money. Using online system and offering different discount vouchers can be another opportunity
for Small Asia. It has been analysed that this online presence will reach to large mass of audience
and people help to raise the sales and increases the profitability of a business that directly help to
enhances the financial position of the company.
Moreover, to sustain its strength, Small Asia can also provide different types of product
and can add more new products such as offered handbags, accessories in their current store.
Because this are considered as a growth opportunities for a firm and it also helps to raise the
sales and attract wide range of customers towards them. Apart from this, company start
producing new or can enter into new segments and reach to new country because of high quality
of products. From all, it is to be recommended to Small Asia that using online business as well as
offline business can be more beneficial for a firm to raise its current sales as well as profitability
of a business.
TASK 3
3.1 Assessment of existing business objectives and plans
Business objectives: Small Asia is a small business firm that deal with high fashionable
designing clothes. As company also meet out the demand of their customers and their main target
are middle and upper buyers who actually understand the fashion and agree to the offered rates
as well. The main objective of the firm is to meet out the demand of their customers and also to
produce the exclusive fashion on demand. On the other side, the main aim of a firm is to serve
the best quality of products to their customers and provide clothes to their customers on their
special events such as pubs, marriage and party wear (Clarke, Chen, 2007). The firm also
provide the best customer service to the people in order to meet out the demand and to satisfy
their needs by providing best or high quality of products at reasonable rates.
Plans: Company's plan are similar to their objectives such that they want to maximize the
profit by 20 percent in coming two years and It can be possible only if the products are high in
range and quality. Moreover, the firm also plan to become one of the fast fashionable firm who
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reaches at global level. Even the business strategy which is adopted by the firm is such that the
firm is actually pushed out the newest products to their store and also made a zero customization
products strategy if a firm reaches at global level. In this strategy firm provide an option for their
customer such that take it or leave it and it cannot even made on the demand of their customers.
Hence, by offering different discount vouchers to their customers also help to increase the sales
as well as profitability of their company. In this way the company also plan for their future and
make different strategy in order to fulfil the demand of the customers and can reach at global
level.
3.2 Revise business plan to incorporate changes
In current situation, Small Asia actually uses only offline mode of business and there is
need to change the current business into online mode also because it will help a business to
maximizes the profit and reach to large mass of audience. Moreover, there is a need to change
the current business situation into new one because it will be more beneficial for a firm too.
Generally people prefer to use online mode of business because it helps to use saves time of
many customers and the process of online system is too short and less consumable (Deakins,
Freel, 2009). Even the presence of the online system also help a business to reach its current
business at global level. Thus, to meet out the objective of a business, it is quite necessary for a
firm to keep changing and adopting all new trend of a business so that it will help a firm to
maximizes the profit as well as sales.
In addition to this, this business another objective is to reach at global level or establish
more unit in the entire world and this can be possible only if large amount of business come to
know about this. Hence, this can be done only if the business uses different promotional tool
such as online business and advertisement or many social media because it helps Laurica to
reach the customers at global level and can easily maximize their current profit ratio ( Holmes
and Schaper, 2018). Moreover, this revise business plan actually helpful and provide ways in
order to creates different opportunities to grab it and it can be possible only by using many
promotional tool such as social media, internet and different variety of modern methods of
promotion so that it helps to draw attention of many customers towards them.
3.3 Presenting the action plan to implement change
As the quoted firm actually deals with high fashionable cloths but the presence of the
company is only through offline mode. Thus there is a need to change the area into online
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presence which helps to maximize the profit as well as sales too. In order to execute the same
into working area the action plan is also needed which help to meet out the objectives of a
company. To develop a new online business, Small Asia should first made a website under
which all the necessary information mentioned and this information helps a customers to know
about the firm as well as different products which it offered to their customers on their current
demand. This website should contain all the information as well as profile of the company too in
unique manner so that it can easily attract large mass of customers or draw their attention
towards them.
After it, create a page in social media such as Facebook, Twitter because almost half of
the public uses social media. The page should be regularly updated through all new offers and
different discount to their clothes. In this way this social page reach to large group and people
come to know about the offers as well as new arrivals (Turner and Mulholland, 2018). The
website will also help them to order online without going to a physical store. Generally people
like this strategy i.e. order online without going anywhere because it saves time as well as
money. Small Asia also uses another strategy such that company offer discount offer to those
who order products for first three orders or can start a scheme of cashback offers. This attractive
offers directly attract large mass of groups and people are ready to enjoy this type of offers too.
The time scale of different system are as follows:
Strategy Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Day 9
Website
Social media
page
Promotional
tool
Execution
TASK 4
4.1 Presenting the impact of proposed changes on a business and its personnel
The proposed changes are creates positive impact upon a system and as a result, the
development of new online business helps to maintained or raise the profitability. As the online
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business are developed then it draws attention of many customers towards them but before
introducing such, there is a need to use the social media and let people know about new offers.
After that if people come to know about the company then they definitely grab that opportunity
and for that reason, it automatically raises the profit and generates more revenue as compared to
past sales (Egbuta and Gilbert, 2018). Because generally people prefer to shopping online as
compared to go to a physical store and Small Asia also wanted to use that opportunity. Using this
opportunity into the working area will further help to grab attention of many customers towards
them and help to raise the sales.
It this action plan used by the company then it definitely creates positive impact upon
business such that it helps to raise the profitability and even raise the customer base which can be
consider in its strength (Online business advatanges, 2018). Further, it also help to reach a large
mass of audience and as a result, it also help to sustain its brand image in market. Using online
mode of business can help Small Asia to communicate well with their clients as well as
suppliers. This system serve 24 hours a day also improved the service of clients through greater
flexibility. On the other side this action plan also creates positive impact upon their personnel
such that it become them more professionalism and also creates different opportunities to wider
up their business. The chances of risk are automatically managed if this service are used in their
business. The competitors of the firm are also get managed easily and can provide the best
facility to their customers. Another advantage of using this system is such that it save cost of the
company and reduces the actual price by minimizing the waste.
4.2 Plan how the changes will be managed
Currently Small Asia manages the business at offline mode and now it wants to change it
into online business in order to manage the changes. But to execute the plan it is quite necessary
for the firm to keep meet out all the changes in order to met the demand s of their customers. In
order to manage the changes such as development of new online business, it is quite necessary or
the firm to make plan so that these changes are managed into a working area. In order to manage
the change, organization needs to make changes and it can be in such a form:
 Firstly, analysing the business and also determine the areas where the changes are needed
and then collect the data as well as information on the proposed change and then arrange
the list in order of a priority (Clarke and Chen, 2007). But it is quite cleared that those
changes are needs to be made in together or in a group and then analyse the modification
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by creating the presentation which determine the changes are creates positive impact
upon a business or not.
 If the data are collected and provides positive result then it creates positive impact upon a
system and on the other side, if not then make necessary arrangements for the execution
of a plan. As Small Asia develop new online mode of system into their working area then
it helps to encourage the staff members so that they will give the best input and helps to
meet the need of their customers.
 In this way these necessary changes should be planned so that the objectives of the
company are fulfilled and easily provide the best input for the welfare of the system.
Moreover, the system If follow the plan in positive manner then it also raise the working
performance and enhances the financial system as well. Keep monitoring the system
whether the things are met with the demand of their customers or not.
4.3 Monitoring the improvements in a performance of a business
Small Asia should also conduct the analysis of the entire plan and its daily operations and
improvement can rely the systematic monitoring of the plan. As per the action plan, the owner of
the firm needs to keep a close watch whether the actions are executed by the provided time scale
for different time period. Step by step, this action plan is confiding and it will be empower and it
is quite important for a firm to calculate this is met equally. By adopting the planning and
evaluating technique for a business, Small Asia also gain high competitive advantage in a
market.
Thus the action plan eventually helps a quoted firm and also provide direction to follow
so that the objectives are easily attain by a firm. On the other side, if the firm at a certain point
will remain unsatisfied in order to achieve the outcome then it the owner should also have an
alternative option that help a business to reach at global level (Julien, 2018). Hence, by strong
monitoring help a business to keep improving the performance as well as their staff members too
and it is quite necessary for a firm to keep meeting all things in proper manner and with the
given time scale. Therefore, proper monitoring from their manager is also necessary for them in
order to serve their customers with best and high quality of products.
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CONCLUSION
By summing up above report it has been concluded that small business to have their own
importance in the country. As report conclude that Small Asia is a small retail company but
because of their high fashionable cloths, there are a chances to increases its unit and reach at
global level. After analysing the sales ratio of the firm, it has been concluded that the firm can
easily increases its unit and serve their customers at global level. Report also provide different
recommendation in order to overcome the weaknesses and to strengthen up their strength as well.
Further report also provide an action plan which help a firm to grow their current offline
business into online mode. For this reason report also provide smart objectives which should be
achieve by the firm in order to raise the profitability as well as enhances the sales too. Further it
concluded that if this plan did not meet with the desired objectives then firm should opt an
alternative option in order to gain high competition in market. After this, it also monitors the
action plan in order to conduct the plan in more effective manner.
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