Small Business Enterprises: Cath Kidston Analysis

This report provides a comprehensive analysis of Cath Kidston, a small business enterprise, focusing on its strengths, weaknesses, and performance metrics. It recommends actions to overcome weaknesses, maintain existing performance, and explore new areas for expansion. The report also assesses existing business plans, proposes revisions, and prepares an action plan for implementing changes. It further examines the impact of proposed changes on the business and how to manage them effectively. The report concludes with a discussion on improving business performance over time and emphasizes the importance of adapting to market trends and implementing effective strategies for growth and sustainability.

Small Business
Enterprises

Executive summary
Private company mainly owned small business enterprise. Organization which deal in
small enterprise mainly use small amount of capital. In these report Cath kidston is taken. This
organization mainly deal in the kids product. It is also dealing in bags, footwear, clothing,
fashion brand and many more variety. In recent time the organization changes in their work
culture, changes in customers services within the workplace. For this changes organization used
advance technology model.
For the development of the organization, Cath Kidston evaluate their strength and
weaknesses from its competitors. In order to evaluate the performance of the organization the
manager analysis their performance, effectiveness and efficiency. The organization revised its
business plan to implement the changes in the organization such as revised goals and objectives,
improved customers services, sales target and improved quality of products. To overcome the
weakness of the organization managers analysis the customers preference, reduce cost and
manage the marketing plan according to the need.
2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................5
LO 1.................................................................................................................................................5
1.1 Produce a profile of Cath Kidston Ltd. And identify their strength and weaknesses............5
1.2 Analysis the Cath Kidston by the measure of performance ..................................................6
LO 2.................................................................................................................................................7
2.1 Recommend with justification, appropriate actions to overcome the weaknesses of Cath
Kidstone Ltd................................................................................................................................7
2.2 Analysis the way in which existing performance could be maintained ................................8
2.3 Justification of the new area in which Cath Kidston can be expand.....................................9
LO 3...............................................................................................................................................10
3.1 Assessment of existing business plans and objectives.........................................................10
3.2 Revised business plans to implement changes...................................................................11
3.3 Preparation of action plan....................................................................................................12
LO 4...............................................................................................................................................14
4.1 Impact of proposed changes on the business ......................................................................14
4.2 Management of changes in the business..............................................................................15
4.3 Improvements in the performance of business over a time-scale........................................16
CONCLUSION .............................................................................................................................17
REFERENCE ................................................................................................................................19
3

Illustration Index
Illustration 1: Change Management Process..................................................................................12
4

INTRODUCTION
Small business is defined as those which are owned and controlled by only one person or
few person. In this organization has small market share in the industry. Small business-to-
business enterprise being independently owned and operated with the small amount of capital. In
this report the organization is Cath Kidston ltd which owns and operates a chain of the stores of
children products. This organization provides gifting products such as leather, hand, occasion,
accessories and many more things (Company Overview of Cath Kidston Ltd, 2016). This report
contain the strength and weaknesses of Cath Kidston ltd. In this includes comparative measures
of performance of the business. In order to evaluate the justification and appropriate action to
overcome the the weaknesses of the enterprise. This report must perform to maintain the existing
strength of the of the organization. In this includes the objectives and plans of the organization.
In this report contain the action plan for implement the changes of the organization.
LO 1
1.1 Produce a profile of Cath Kidston Ltd. And identify their strength and weaknesses
Cath Kidston offers in many products such as cloths wear, footwear, bags children
products etc. This organization also sell the online products. It has stores in many country such
as Japan, South Korea, France, Hong Kong etc. The main objective of the organization is to
increase the sell in to expanding the stores in many more countries. The primary goals of this
organization is to create the more de3mand from the customers. Cath Kidston Ltd. Also wants to
business processes of distribution and marketing. They wants to acquire the right products to
satisfy the customers and build a network from the customer to marketplace. The organization
manage the relationship with the customers for keeping pace with the technology. In some areas
the organization fails to compete its objectives and goals. Cath Kidston Ltd. has the following
strength and weakness:
Strength: Customers behave and motive: The organization wants to satisfy the needs and wants of
the customers. Thus, they identify the behaviour and the motivator factor which influence
to the customers. Cath Kidston understand the customers behave so that they can be
achieve their objectives and the goals.
5

 Expand in many area: Cath Kidston Ltd. has many stores in worldwide so that they can
easily connect with customers. This is strength to the organization to getting more
customers in all over the world.
 Online selling: Cath Kidston Ltd. Provides the online selling to its customers. So that
customers can be easy to buy the products from the Cath Kidston.
Weakness: Change in consumption pattern of the customers: Consumption pattern among the
various classes has change over the years. This drastic changes in customers perception
diverse in to the new entrance to the marketplace. Thus, the Cath Kidston cannot be able
to reach the objectives and goals of the organization. Website costs: planning, designing, creating, securing and maintaining occur many cost
into the website. So that the Cath Kidstone cannot be able to achieve the objectives and
goals of the organization.
 Advertising cost: While online market is efficient to getting the right customers to their
products, they generate more cost. This is specially generate the cost of the advertising to
complete the market plan of Cath Kidston Ltd.
1.2 Analysis the Cath Kidston by the measure of performance
Cath Kidston measure its performance by the various methods are as follows: Financial measurement: Cath Kidstone Ltd. Is an international chain of retail store in
UK. The company sells home furnishings and related goods through shops, online and by
mail order. This organization opened the first shop in London's Holland park in 1993.
This organization attempt the more profits from the 2009. The company's profits jumped
on more than 60 percent from £2.9million to £4.6million. Sales rise to £31.3millions
compared to the £19.3million. The organization sold its more share in 2010 and than they
opened new stores. Cath Kidstone Ltd. Jump on the sales of 20.2% to £55.3million from
the year 2015. The chosen organization has worth an estimated around £50 million, with
the more than 100 shops in the worldwide. In the worldwide the organization develop her
stores in China, Japan, Malaysia, South Korea, France and many parts of the UK. This
organization plans 35 to 40 new stores per year, with the focusing on its existing stores in
marketplace.
6

 Effectiveness measurement: Effective manager plan their work according to their
performance. Performance setting of the organization helps to achieve the goals and
objective of the Cath Kidston Ltd. This measurement helps to identify the individual
efforts towards the organization. Performance elements and standards should be
measurable, understandable and equitable towards the organizational goals. Effective
performance can be measure by the developing sector into the organization. Developing
in this instance means increasing the capacity to perform through training and new skills. Efficiency measurement: Organizational efficiency is concerned with the resources
consumed for completion task or produce an output. Resources can be material, human
resources, facilities, energy, time and capital. For the Cath Kidstone Ltd. Is to be more
efficient to complete a task. It helps to evaluate the performance of the organization.
 Quality measurement: Quality factor is very important in the organization. It has to do
with closely work conforms to some specified requirement of quality. In the Cath
Kidstone follows the different types of quality to measure the performance of the
organization. It includes internal quality and external quality (The Six Criteria for
Measuring Organizational Performance, 2016).
LO 2
2.1 Recommend with justification, appropriate actions to overcome the weaknesses of Cath
Kidstone Ltd.
Small business and enterprise are very innovative. In some case this organization are fail
to perform their objectives. In the term of Cath Kidston has weakness which prevent to achieve
the success of the organization. The common way to overcome the weaknesses of the business or
an organizations are as follows:
 Understand the customers wants: Small business enterprise can be unable to
understand the wants and needs of the customers. It is happen because some customers
change in to their consumption pattern. They switch towards the other brand and
products. Thus, the Cath Kidston Ltd. has must understand to the customers wants and
needs. This is helps to the organization to maintain its customers. Apart from that the
organization can be adopt efficient procedure to overcome the challenges of the problem.
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 Reduce cost: Reducing the cost is more beneficial to the organization to overcome the
weaknesses. It helps to the Cath Kidston Ltd. to increase the profits by reducing the
advertising cost and website cost. This will be helpful to focusing on the long-term goals
of the organization. Long-term objectives and opportunities helps to reduce the cost of
the organization.
 Increase the management skills: Lack of management skills is a problem in small
enterprise and business. In Cath Kidston has lack of managerial skills. Thus, organization
must have to increase its management skills which helps to achieve the goals of the
organization. The chosen organization can be solute this problem by assigning the
responsibility to an existing manager.
 Manage the plan: Lack of plan is also fundamental problem of the chosen organization.
If the organization plan sets out according to the certain objectives, it will be helpful for
achieve the organizational goals. It is very difficult to the Cath Kidston to recognize the
necessary steps of plan. Plan can often alert to inconsistencies that need to be managed.
2.2 Analysis the way in which existing performance could be maintained
Once the business is established and running well, the organization have to analysis the
let things to continue to run as they are. Small business enterprise attempt many things to support
the program of the business enterprise. This can be helps to the attend best results in failed
programs. Cath Kidston adopt the following ways to maintained and increase the strength of the
enterprise: Discover priority needs: The organization must conduct the need survey to focus on the
priority needs. For this the Cath Kidston doing research on the past survey related to the
issues. Further the chosen organization talk to other organization either working with the
target population on the similar issues. Works according to the plan: For increasing and maintaining the strength of the
organization, is must clearly defines the objectives to accomplish by the organization.
The chosen organization also have mansion the changes will need tom occur in the
marketplace.
8

 Identify the opportunity present in the market: The organization is must identify the
opportunity present in the market for developing the strength of the organization. This
will be helpful for the Cath Kidston to developing their strategy of the organization. Determine the skill level and qualification of the people: The organization has also
determine the skills ability of the people who are working in the organization. It will be
develop the job description of the employees of the organization. Cath Kidston also
identify the background or training which required for the completion of the task. Create an evaluation system to assess the performance of the staff members: The chosen
organization has also evaluate the system which helps to assess the performance of the
staff members. It will be helps in developing the performance as well as maintained the
existing performance by the organization. Cath Kidston also provide the feedback on the
performance of the staff members.
 Assess the enterprise efficiency: Many new business works on the short-term way. This
offers the flexibility running for the business. The best option to maintain the strength of
the chosen organization is balancing between ability and the strategy. It will be helps to
the Cath Kidston to assess the enterprise efficiency.
2.3 Justification of the new area in which Cath Kidston can be expand
Cath Kidston Ltd. Is the worldwide company which grow in many product in the stores
and online marketplace. Streamlining the internal systems and marketing of the chosen
organization can be expand in many streams. The expansion of the organization is depend on the
type of the business and the available resources. The following are the area in which the Cath
Kidston ca be expand their business enterprise: New location: The chosen organization already established a successful business in
many area of the world. The chosen organization can be establish their business in India,
Africa, Australia and many more countries in the world. For the new location the Cath
Kidston should prepare the complete business plan. Because it will be helpful in
maintaining a consistent bottom line profit and steady growth over the past few years. Establish new product line: For the attracting new customers, the organization should
determine the new product line of the existing products. In that the organization can
establish new brand of the footwear, bags, accessories, cloth and many more things. It
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will be helpful to maintain the existing customers. Because the existing customers are
switch to the other brand. Thus, it will be helpful to maintain those customers.
 Franchise the business: Another option to expand the business into new area can be
franchise the business. Franchise of the business is helps in to the setting up the risk
element of the business. Because it diverse the risk with the other business. Thus,
franchise of the business model can be work on the multiple locations.
LO 3
3.1 Assessment of existing business plans and objectives
Structure of objectives: Organizational objectives are classified into three categories
such as process management, operations of the the organization and employees training. First
objective of the organization includes basic development of the Cath Kidston. Second objectives
includes operation of the organization, in which they manage the operation activities. In last the
organization evaluate the employees performance and gives them training (Thomä and Bizer,
2013).
Business Objectives: Cath Kidston is aimed to broaden its brand appeal by making huge
investment in marketing (Audretsch and Link, 2012). The home-ware and fashion brand which is
popular for its floral prints is focused on direct marketing through catalogue businesses and
email marketing. The company is also aimed to achieve high sales revenues. The company is
also focused to expand its business overseas and attain profitability in a significant manner.
Current market performance: The current market performance of Cath Kidston is
outstanding, as it has acquired over £100m annual sales by 2013, its international sales is also
increased over 50% (Cath Kidston's florals are a hit with Asian market as sales boom. 2013).
Now, the form is aimed to increase its market revenue by 20% in the era of competitive
marketplace, but with the changing buying behavior of customers, the company is not able to
meet their satisfaction level (Mason and Brown, 2013).
Market Growth: Cath Kidston has broaden its scope by rendering variety of products,
such as hand bags, footwear, clothing and many other products. It has been stated by the
marketing director of the Cath Kidston that the company had opened its stores new markets, and
provided with private equity funding (Thomä and Bizer, 2013). As, there are many new fashion
10

retailers have emerged in the competitive market, so the company need to make many changes in
its products and services.
Sales revenues and profitability: By 2010, the company has raised its profits by 19%
and sales have also increased to 10%. It drove the overseas operations of the company to expand
its business in international market (Olszak and Ziemba, 2012). By 2013, the company's pre-
profits has been raised from £16.2 million to £18.7 million. However, with the advent of e-
commerce sites and increased threat of new substituents, the sales revenues of the company is
lowering down. Therefore, Cath Kidston is required to make significant changes in its marketing
strategies and processes (Haltiwanger, Jarmin and Miranda, 2013).
Turnover rate: Cath Kidston, which is popularly known for its floral prints and dotty
fabrics is improving its performance on continue basis. It has been reported that, by 2013, the
company's sales turnover has raised from £89m to £105m. Moreover, employees are also
attaining high satisfaction level, as they are getting increased salaries (Smit and Watkins, 2012).
However, with increase in inflation rate and exchange rate, the costing of advertising and
promotion all activities is also increasing, as a result of which company is required to make huge
investment in the promotional activities.
3.2 Revised business plans to implement changes
In according to the changing environment and market trend, Cath Kidston is required to
revise its plan, so that favorable results can be attained. The revised business plan of Cath
Kidston is as follows:
 Revised Goals and objectives: Cath Kidston is aimed to enhance its business
opportunities among younger generation (Chun and Mun, 2012). The company is aimed
to increase its sales revenues and profitability in the competitive global marketplace.
Moreover, it is also focused to attain customer trust and loyalty with the implication of
effective marketing strategies (Mitchelmore and Rowley, 2013). The company need to
make use of various online marketing techniques to capture the attention of customers in
an effective way.
 Improved Customer services: Cath Kidston is required to change its goal and objectives
according to the changing market trend in the fashion industry. It has become necessary
to undertake the needs and demands of customers (Williams and Schaefer, 2013). The
11

company is required to improve its management skills along with customer services. The
company is not able to deliver expected results as per its goals and objectives. It need to
improve its customer services by availing effective quality services.
 Sales target: Cath Kidston is aimed to increase its sales by 50% by 2020. Moreover, it is
also emphasize to widen its scope and online presence on many e-commerce sites (Cath
Kidston's popularity overseas drives sales higher. 2015).. By gaining trust of customers,
the company can efficiently create large customer base with the implication of customer
relationship management, adoption of new theories and marketing strategies (Atawodi
and Ojeka, 2012).
 Improved quality of products: The company need to enhance the availability of varied
products and improve its quality, so that customers can be provided with desirable
products (Marlow and McAdam, 2013). Cath Kidston is required to improve the quality
of products, like cloths, handbag and many other items, so that it can differentiate itself
from other strong competitors. Moreover, it is also required to sustain in the competitive
market, which can be done by availing cheap price products so that customers will tend to
attract in successive manner.
With the revised business plan, Cath Kidston can effectively improve its quality of
products, enhance business operations and improve the management process, in order to attain
profitability and sustainability.
3.3 Preparation of action plan
The marketing director of Cath Kidston need to bring changes in its operations and
processes, which can be effectively done by adopting Lewin's Change Management tool. Change
management process can be implemented by using three stages which are stated below:
 Unfreeze: It is the foremost step, whereby key areas are found in which subsequent
changes need to made (López Salazar, Contreras Soto and Espinosa Mosqueda, 2012).
The marketing director of Cath Kidston is required to list all its loop holes and
weaknesses along with the changes made in its business operations and activities. Cath
Kidston is required to emphasize on the demands and needs of teenagers and adults,
according to their preferences and choices, products need to manufacture. Moreover, the
company also need to survey the market and understand the changes that need to make.
12

Furthermore, it should communicate the changes within the teams that are proposed to
made.
 Change: It is the responsibility of manager of the company to explain the results of
changes made in its structure and management activities for attainment of long-term
goals and objectives. An open session need to conduct, whereby Cath Kidston employee's
communicate their issues and problems regarding changes. To expand its business, the
company is required to make use of new technologies and hire highly skilled and talented
people, who can efficiently make new strategies and tactics.
 Refreeze: It is the last stage ops change management model, with the help of this Cath
Kidston anchor changes into the work culture, management and business operation
according to changing market trend (Thomas, 2013). The company need to ensure
support of its stakeholders, including customers, employees, shareholders, suppliers and
others. It also need to update its online website an d bring innovations in the e-marketing.
Moreover, it is also required to train its employees regarding new services and
management.
With the implications of Lewin's Change Management tool, Cath Kidston will be able to make
significant changes in its workplace, management structure, business operation and
manufacturing process, in order to acquire large market share and profitability. Moreover, it is
13
Illustration 1: Change Management Process
Source: (Thomas, 2013)

also required to bring innovation and creativity in its products, so that it can differ itself from
other strong competitors (Cath Kidston's popularity overseas drives sales higher. 2015).
Action plan March (2015) April (2015) May (2015) June (2015) July (2015)
Increasing
sales volume
✓ ✓
Developing
marketing plan
✓ ✓
Execution pf
marketing plan
✓
LO 4
4.1 Impact of proposed changes on the business
The recent changes in Cath Kidston is changes in work culture, changes in customer
services, introducing flexibility within the workplace and use of advanced technologies and
models (Cavusgil and et.al., 2014). The changes in work culture is impact on mentioned
company is increase morale of the company through friendly environment. In the recent scenario
employees want job on those organization where the culture of business are openly and friendly.
The employer openly communicate with the employees which motivates the employee and
increase their morale. Through this open culture employee more participate in business activities
and and involve in decision making process (Cath Kidston's popularity overseas drives sales
higher. 2015). The employee share their ideas and suggestion in decision making which increase
the value of company. The change culture very effective for in modern scenario. The culture
impact also on employee performance because is employer are openly communicate and feel
employee part of the company them the employee improve their performance and give more
efforts to achieve their goal and also organizational goal. The rapidly changes of customer
service is also increased in present scenario for customer convenience and also for increase
worth or profit of company (Hassard and Pym eds., 2012). Now a day the customer service very
improve which satisfied customer and also increase sales. The customer service changes in
quality and delivery speed. This mentioned company provide its products through online which
increase customer due to convenient facility of online shopping.
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In the modern time, the company produce their products according customer needs and
preferences. The impact of this the customer attract which enhance worth and increase revenue
of the company. The company produce different products on its store and through which enhance
customer service better (Cath Kidston's popularity overseas drives sales higher. 2015).. Further,
the company provides to its employees flexibility in their workplace which impact on company
performance. The Cath and Kidston provide employee flexibility which impact on the company
is giving job according employee interest and also some time they doing job rotation for job
flexibility in employee (Neubauer and Lank, 2016). They give freedom in their job. Through
flexibility the employee more creative and innovative for the organization which help to solve
complex issues. This change improve overall performance of organization. Moreover, the
changes in technology and model is also impact on Cath Kidston company. The changes of
technology is help to business to solve their problem and issue in easy way. The employee are
use computers in their workplace which help to doing their work easily. This mentioned
company use technology to sale their different products through their online website. The impact
of this customer are more aware about this company products and services which increase sales
and profitability (Gibson, 2016). The following company use technology to marketing of their
company products and services which help to expand their business in worldwide. The advance
technology are profitable for company because its cut production cost and increase profit. The
communication between employee, employer and customer now a days easy for company due to
technology. Hence, the all above changes are impact on organization performance.
4.2 Management of changes in the business
Cath Kidston can effectively manage, control and monitor the changes by implementing
appropriate plans. The HR manager of the company need to organize open sessions for the
purpose of discussions on change management. Moreover, the manager will also take the
assistance of several business men, organizations and partners, to bring changes in its operations
and management. The company is required to keep record of changes which are required to make
in the productivity and manufacturing process (Cath Kidston's popularity overseas drives sales
higher. 2015).. It may possible that, many of its employees and shareholders do not support the
idea of change of management structure, so it is the responsibility of managers of Cath Kidston
to influence them. Thus, a complete team must be formed and designed, which can significantly
15

support in the implementation of proposed changes. Moreover, smart techniques need to apply
which will tend to reduce its cost and increase energy. In addition to this, the company also need
to focus on its revised plan and evaluate the results. Furthermore, Cath Kidston can also use
various marketing techniques, like online marketing, digital marketing, virtual marketing and
offline modes of marketing to attract more number of customers and increase the sales revenues.
New techniques, efficient team, innovative infrastructure and workplace, all need to improved
and changed according to requirement of clients, customers and shareholders, so that the
company would be able to acquire sustainability and profitability. Furthermore, new procedures,
norms, regulations and methods will be formed and implemented, so that Cath Kidston can attain
stability in the competitive market place. There are many strong competitors, which are
operating in the retail clothing industry, like Tesco, Sainsbury, Burberry an many more.
4.3 Improvements in the performance of business over a time-scale
The performance of business can be improved by setting its business activities according
to the time frame. The following time frame will be implemented by Cath Kidston in an effective
manner:
Activity Week 1 Week 2 Week 3 Week 4 Week 5 Week 6
Identification
of needs of
changes and
modification
Finding out
alternatives
and options
available
Choosing best
alternatives
among
available ones
16

Implementatio
n of proposed
changes
Organizing and
planning for
implementatio
n of
changes
Determining
loopholes and
shortcomings
Implementatio
n of corrective
measures and
actions
With the effective time frame, the company will be able to attain its goals and objectives.
The time frame is developed in such a way that company can attain an reach to its target and
objectives. Cath Kidston has make its time frame, which comprises of many business activities
that need to performed for attaining better results, profitability, and increased sales revenues.
However, there may many internal and external forces come as hurdles, but with the implications
of effective strategies and tactics, the company need to implement these activities.
Task Target Outcome Corrective measure
Sales volume Increase 35% 20% increase Improve the services
Marketing plan New target audience Achieve No corrective actions
Standards
improvement
Increase in motivator
factors
Positive feedback by
customers
Maintain current
practice
17

CONCLUSION
From the above study, it can be stated that small business enterprises, like Cath Kidston
can improve its performance and enhance growth by adopting modern strategies and tactics. The
manager of the company need to also look upon the management and work culture for making
changes and improvements. It can be concluded from the above study that with the significant
changes and modifications, Cath Kidston can effectively increase its profitability and
sustainability in the competitive market place. It can also be concluded from the above report
that, by analyzing the internal and external environment, the company can make significant
changes in its activities and operations. It can also be concluded from the above report that, with
the implications of Lewin's change management tool, the Cath Kidston will be able to make
significant changes in its work place and attain profitability. Moreover, it would also be able to
attract huge mass of population by expanding its business in emerging market.
18

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