Small Business Enterprise Report

This report provides a comprehensive analysis of Apple House Guest House, a small business enterprise offering accommodation services. It examines the company's profile, strengths, and weaknesses, using comparative performance measures against a competitor, Jesmond Dene. The report reveals Apple House's lower profitability and highlights its seasonal dependence as key weaknesses. Recommendations include conducting market research to understand competitor strategies and customer preferences, diversifying services (e.g., adding a restaurant), and implementing employee training and development programs. The report also details an action plan for implementing these changes, assessing their potential positive and negative impacts, and outlining methods for monitoring improvements in business performance. The report concludes by emphasizing the importance of effective performance management systems and change management models for the success of small businesses like Apple House Guest House.

Small business Enterprise

Table of Contents

INTRODUCTION
In the present era, there are various private firms has been established in the world which
carried out their business and activities themselves. Small business enterprise are that
organisation which is owned and managed by the single person and which have fewer numbers
of employees who is liable to carried out business function and activities. As per the European
union, those organisations which have 50 or less than 50 employees then such organisation are
included in the small business enterprise (Arend and Wisner, 2015). Small enterprise are
privately owned corporations, partnership that have fewer employees and less annual revenue
than a regular sized corporation (Apple House Guest house Heathrow Airport, 2016). The
following project report provides a depth knowledge and understanding about the small business
organisation and its activities and function which assist in attaining the determined objective.
Apple house guest house has been selected as a small business enterprise for this project which
provides accommodation facilities for customer. In this report, various strength, weakness and
company performance has been systematically addressed. It highlighted the monitoring of
proposed changes in the performance of corporation. The major objective of this report is to
understand the process and business function of the small business enterprise.
TASK 1
1.1 Company profile along with its strength and weaknesses
Organisation profile
Apple house guest house is a small business enterprise which delivers the clean and
comfortable accommodation services to its guest who comes from the out of station. The major
features of this guest house is that it supply the effective and comfortable environment for
staying to guest and it has there categories of room. It provides all categorises of accommodation
services and facilities and guest can afford it according to their financial capability. It is situated
in Haynes, Middlesex and nearby Heathrow airport London. It is situated at near the airport and
queens bury Tube station has 5 minutes away from this hotel with excellent access to central
London.(Audretsch, 2011) It is one of the famous small guest house which have all kind of
accommodation facilities for all income group of customer. It is famous in the UK for its
excellent services which is affordable for middle as well as higher income group customers. It
have all categories room and staying facilities like lower, middle and higher so every income

group customer can afford this services. In addition to this, it also provides some other facilities
along with staying like Ironing facilities, alarm clock, Air conditions, surf the internet via the
free WiFi, car parking, phone charging, storing facilities for secure personal stuff etc. The Apple
house guest house is situated at commercial area at where air port and railway station is just 20
minutes distance (Blackburn, Hart and Wainwright, 2013).
Internal business information
Name and address- Apple House Guest House, West End Lane, Harliongton
Haynes, Middlesex, UB3 5LY
Contact no. [phone]
e-mail- [e-mail]
Website- http://www.bedandbreakfastheathrow.com
Strength of Apple House guest House
 The major strength of the Apple house Guest house is that it have all categories'
accommodation services which can afford by all income group of customer like lower,
middle and higher (Bordum, 2010).
 It offers various kinds of facilities along with accommodation services like free wireless
internet connection, car parking, stuff storage, Ironing of cloths, private wash rooms,
double bes, single bed, alarm clock, air conditioner etc. On e another major strength of this Apple house guest house is that it offers reasonable
rate accommodation facilities and also higher budget luxury services according to
customer requirement.
Weakness of Apple House guest House
 Its major weakness is that it have high level competitors available in the market which
provides similar accommodation services in the lower price.
 Changing customer taste and preferences is another major weakness of the cited venture
as it have to change its accommodation facilities according to changing trends like
interior, bedsheets, furniture, infrastructure etc (Botha and Solms, 2014).
 One another major weakness of the Apple House guest house is that this business is
largely based upon the season. For example in the summer holiday the profit of this
business is high because guest comes to spend their holidays. On the other hand in off
season profitability may decrease.

1.2 Analysis of the business using comparative measure of performance
Financial performance
Profitability measure
Apple house guest house
￡'000
Jesmond Dene
￡'000
Year PBT PAT PBT PAT
2016 250 175 1100 850
2015 150 130 950 700
2014 102 89 600 480
2013 70 50 750 520
2012 8 5 98 78
Interpretation and Analysis
As per the above table it has been analysed that Jesmond Dene has gained the higher profitability
as compare to the Apple house green house. As per the given table Apple house green house
have very low profitability as compare to its competitor. Thus, it can be said that financial
performance of Apple house guest house is low in the market (Burns, 2011). Apple house green
house has started its business along with initial profit of 10000 pounds in 2012 and in 2016 after
tax it becomes 195000 along with tax rate of 20%.On the other hand its competitor Jesmond
Dene initial profit was 75000 which in 2016 was become 1020000.Thus, it can be said that
Apple house green house financial performance in the 2016 has weak as compare to the
Jesmond Dene.
Comparison of Price
Interpretations

As per the above table Apple house green house have varieties of room as compare to the
Jesmond Dene (Carlisle and Flynn, 2015). Cited venture prices are lower as compare to its
competitors. Apple house guest house is effective and suitable for all income level customers
because it has varieties of bedrooms and apartment for single couple, family, student etc. This
small business enterprise is suitable for various purpose of customer like wedding, holiday,
medical emergency, education etc.
TASK 2
2.1 Recommendation with justification and appropriate action plan
The Apple House guest house provides the various kinds of accommodation and guest
services to its customer ion the affordable prices. However, it has various kinds of weaknesses
through which company's performance is largely decreased. Following are some
recommendation and justification through which firm can improve its strengthening and
overcome weaknesses-
 The major weakness of the Apple house green house is that company have high number
of competitors which delivers the similar accommodation facilities and services in the
affordable prices. In order to overcome this weakness, corporation requires to conduct the
markers research programs so as it can easily identify the strategies of competitors and
customer taste and preferences also (Corso and et. al., 2013). By market research,
company can able to analyse the performance of competitors in the market and also
discover customer taste, needs, requirement related to services. By this strategy firm can
able to develop its competitive edge in the market by developing distinctive product and
services.
 Company have another weakness is that it is largely based upon the season which affects
its profitability and sales. Company required to adopt such effective strategy through
which its business can run in entire year. For example company can organise
entertainment event for customers, health care event for customer, welfare activities,
water park etc. (Eckerson 2010) In addition to this, company can also expand its business
in the food sector like it can operate restaurant along guest house. These businesses can
run in the entire year.

 By organising training and development programs company can improve its existing
performance and develop competitive edge in the market. In addition to this firm should
improve its promotional and inadvertent activities so as it can attract large number of
customer (Finch, 2011).
 It should offer attractive reward schemes according to season like attractive offer
discount along with advance booking of hotel etc so as it can develop its own brand
image in the market.
2.2 Analysis the way in which existing performance can maintain and strengthened
As per the above discussion it has been ascertained that there are various kinds of
weakness along with the existing business of Apple house guest house. (Jansen, 2011) In order to
overcome these weaknesses company requires adopting some kind of strategies and criteria. In
order to maintain the strengthen and existing performance, company requires considering
following ways- Market research- This is the major way to improve the existing performance and
strengthening of business under which organisation can conduct market research to
analysis the actual market condition, customer taste, preferences and requirement of
product and services, identify the strategy of competitors etc (Kelly, 2013). By adopting
this strategy, corporation can improve its existing performance and strengthening of
business. Effective utilisation of resources- In this way, firm needed to utilise available resources
in an effective manner so as each one can properly use within the business like financial,
machinery, human resource etc.
 Motivation tool- This is the best criteria to imp[rove the business performance under
which firm should provide effective monetary and non monetary reward to employees so
as they can motivate and encourage for higher performance and productivity.
2.3 Recommendation with justification along with new area
As per the discussion, Apple house guest house provides the effective and all categorises
accommodation services and facilities to customer in the London. In order to expand its current
business In the market, Company needs to consider various effective strategies. Following are
some area under which cited firm can enhance its business-

 In order to expand its current business, company can move in new market. In this
situation Apple house guest house can operate food restaurant along with guest house
(Landstrom, 2007). Under this firm can provide food services like breakfast, lunch,
dinner and include all type of food like Chinese , Indian, Italian, American , soft drinks,
ice creams etc.,
 Company can expand its business by launch other kind of facilities along with hotel like
entertainment, games, pubs, clubs, Dj floor etc. These all facilities can provided to
customer for entertainment. By this way company can attract the large number of
customer and develop its won brand image in the market.
TASK 3
3.1 Assessment of existing business objective and plans.
As Apple House Guest House is business association which provides the clean and
comfortable accommodation service to the user. So the objective and planes of the organization
should be smart in order to provide the best service to their user. The smart objectives is
described as:
S stands for specific
M stands for measurable
A stands for attainable
R stands for relevant
T stands for time-base
SPECIFIC : Out of the SMART objective S represents specification and according to the apple
House Guest House the facilities that are provided by them should be according to customer's
taste.The environment should be peaceful and nature friendly to attract more number of tourist.
MEASURABLE : Out of SMART objective M represents dividing the objectives into
measurable unit. According to the Apple House Guest House provide the measurable services
like Do not smoke anywhere or WIFFI is free etc to attract the customer.

ATTAINABLE: In this part we analyse whether the goal is achievable or not. In this you would
not be able to achieve the goal if you do not have money, power, due to lack of this you could
lack the objective (Quiescent, and et. al., 2006).
RELEVANT: In this part if we do not have certain resource we can arrange the but the only
question is does we really need this resources means before doing anything we should we aware
of the need of the resource.
Time-based: As we know time is money and every one knows the importance of it so according
to
Apple House Guest House the company should provide some flexibility during the check in and
checkout time to show the humanity and also increase the customer (Rauch and et. al., 2009).
3.2 Revise business planes to incorporate appropriate changes:
In order to make revise business planes for the Apple House Guest House they need to
take customer's feedback and implement it into company. In order to make the revise the new
plane we need to include the points that are mentioned below:
1. Take customer's feedback: Ask customer about the services their experience at your
accommodation. If they make any complain try to rectify it immediately and also try to avoid for
next time (Rauch, and et. al., 2009).
2 Come up with new strategies: Always try to implement the new and innovative ideas to
always lead the market because to became the top company and have a successful business.
Also, try to conduct research to get the new concept .
3 Clarify your message: May be your message is not clear to your customer in that case
your business will start lacking to overcome or avoid always use clear and to the point
message while dealing with your customer. Because if the customers are not satisfies the
company may have to suffer.

4 Select a proper distribution channel :In the accommodation market proper advertising is
necessary to reach the customer. Because if the proper channel is not selected then the company
may get fail to reach at every customer. Which may lead to the adverse effect on the companies
growth.
3.3 Action plan to implement the changes:
From the above figure five stages of action plan is clear that how to implement changes at
every steps :
Scope the changes: At this we can identify the slake-holders, cost and benefits of changes
Create the Vision: It involves engage leadership, communicate the compelling needs for
changes.
Establish change infrastructure: Here we introduce new tools, technology, reward system
training.
Sustain the changes : At this stage we measure progress, demonstrate values, communicate
success, take connective action if needed

4.1 Impact of changes proposed in business
Changes are considered as an important part for APPLE HOUSE GUEST HOUSE. As per the
need or demand of situation necessary changes has to be done. But it has both the positive as
well as the negative impact on the organization. Considering that it can be categorise into two
parts:-
1. Positive Impact on business:
1. Encouraging innovation: Usually the new ideas are always considered from managers or
business owner but after this employees also start using their creativity and thoughts which
definitely help the firm because sometime one small concept is enough for large change.
2. Increasing efficiency: While making the changer we are considering the users prospective to
which makes the better experience for the user and make it mare efficient.
3. Improves attitude: While facing the new challenges workers will start learning new things and
concept which brings a new confidence into them and definitely improves their attitude.
2. Negative Impact on business:
1. Increases mental stress: Along with positive changes there are some negative part to such as
while making changes lots of new risks and challenges come for the employees which leads to
increased mental stress of employees.
2. Loss of Loyalty: When company announces changes it directly or indirectly affect the salary
of employees which affect the motivation of employees due to this some decides to live the
organization and some decide to remain in company but does not work as they work before.
3. Increased time disturbed social life: During these changes employees are need to spend lots of
time at work due to which their working hours increases and lunch duration decreases which
leads to a disturbed social life.

4.2 How to implement the changes into the organization:
To make the change effective there are some stages that has to be followed buy the organization
for better result mentioned below:
1. Explain the reason behind the need of changes: Before making any official announcement of
changes company head of the company should explain the need and reason for making changes.
And provide some solid evidence to prove his decision right.
2. Changes should be made in steps: Instead of making all the changes at once we
should involve steps or stages to make the process efficient. And impact of every
change will remain clear (Kurt Lewin's change model, 2009).
3. Analyse the changes: During this process carefully analyses the stages there
implementation and impact to the process if the impact is according to the
requirement consider it otherwise try something else it.
Techniques to make changes.
Here are the six techniques we are going to discuss in order to make changes in business:
1. Map out task: If the manager or head of organization depends totally on employees
imagination or innovation in this case when things come on change it will create
misinformation (Tassabehji, 2010). So its better to first map out the things and according
to which you can implement the changes.
2. Follow stages: After having proper layout changes should be implemented in stages. For
this divide the employees into small groups and then first let them work on the changes if
any error occur then make other changes (Zimmerer, Scarborough and Wilson, 2012).
3. Involve everyone: Divide the changes among the employee such as everyone get the
work or get involve in doing the task so that efficiency of every employee can be used by
the organization.

4.3 Monitor improvements in the performance of business:
In order to monitor the improvement that are expected by the implementation of changes
we need certain parameters to be followed. It is necessary to identify the factors on which
company success depends. To measure those parameters here are eight factors to find the growth
of company.
Performance monitor
( 1 month)
1 2 3 4 5 6 7 8 9 10 11 12
Aim
Collect and organize data
Item development
Increment in shares
Branding image of product
Customer retention
Global growth of business
Implementation of changes
Conduct research
Apply action on activities

Basic objective behind performance management is to improve the performance and
culture for both the APPLE HOUSE GUEST HOUSE and the employees to maintain the
success. The continuous improvement in the work leads to the raise the Apple House Guest
House at new level.
After this we need to collect the data to know about the work that is done by the worker or the
employees. According to that a new record will be organized. Once the data is organized new
items will be produced or launched due to which we are providing the range of products for the
investment in the form of shares (Small bone and Welter, 2011). That leads a huge increment in
the shares. On the basis of that the branding of the product get started to make it as a face of
company (Tassabehji, 2010). As the number of customer's are going to increase the company
also start growing and with this if it has crossed certain range of customer the company will
automatically start getting popular in the city then in the country and finally across the globe. As
the company start growing the responsibility of the company also get increased, to fulfil the
user's requirement. So time to time changes has to be done to make the product better. And the
end conduct the research the know the competition into the market and change policies
accordingly.
CONCLUSION
From this project report it has been concluded that by implementing effective measure
and performance management system, company can improve its entire process and operation of
business. Apple house guest house required to develop effective business plan and strategies to
overcome the certain weakness and also adopt the change management model for measuring the
changes.

REFERENCES