Small Business Enterprise: Performance, Analysis, and Recommendations

This report provides a comprehensive analysis of a small business enterprise, Skinny Tan, examining its profile, financial performance, and marketing strategies. It includes a comparative analysis with a competitor, Tan Warehouse, evaluating strengths, weaknesses, opportunities, and threats through a SWOT analysis. The report delves into production, human resources, technology, and sales aspects, offering recommendations to overcome weaknesses and improve business performance. It covers business objectives, plans, and the impact of change management on operations, concluding with improvements reflecting the company's performance over two years. The report aims to provide actionable insights for enhancing the management and overall success of the small business enterprise, considering market competition and technological advancements.

Running head: SMALL BUSINESS ENTERPRISE
SMALL BUSINESS ENTERPRISE

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Table of content
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................4
1.1 Profile of the Company (AC1.1)...............................................................................................4
Task 2...............................................................................................................................................8
2.1 Recommendations to overcome the weaknesses of the organisations.......................................8
2.2 Ways to maintain and strengthen the existing performance of the company............................9
2.3 Suggestions for new areas to expand the business..................................................................10
Task 3.............................................................................................................................................11
3.1 Existing business objectives and plans....................................................................................11
3.2 Review of the business plans and suggestions of area to change in business strategy............12
3.3 Implementation of action plans for changes............................................................................13
Task 4.............................................................................................................................................13
4.1 The impact of the changes over business and its personnel....................................................13
4.2 The management plan for the changes in the business............................................................13
4.3 Improvements that reflect well the performances of the company in the past of two years:
(AC4.3)..........................................................................................................................................14
Conclusion.....................................................................................................................................15
Reference list:................................................................................................................................16
Appendix1:....................................................................................................................................19
Trend graph:...................................................................................................................................19

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Introduction:
The small business enterprise is the business which is generally owned by the private individual
and operated by less number of the employees with the lower volume of sales. Small businesses
are the corporation owned by private individuals, with partners and of sole proprietorships. The
small business in various countries may comprise of different employee number which may vary
from 15 employees to 500 employees. It can also be classified into the areas of sales, assets and
the net profit of the business. The small businesses are very common in all the countries and they
depend on the operations of the economic state of the country where the business originates.
Small stores, shops, restaurants, small-scale manufacturing units, hairdresser shop, small online
business are few of the examples of small business enterprises.
The small businesses have to face various challenges and rewards which are not suitable for
everyone doing such businesses. The services and products that are obtained from the small scale
business are judged locally and the public reviews are the only mode through which the business
can stand for the longer period or fall in the instance.
Skinny Tan is one of the small business enterprises which generally deal on the self-tanning and
spray tan solutions and products & accessories. They are the first to self-tan which does combine
with natural tanning with skin smoothing activities that are naturally derived for the purpose to
tan, provide contour and to reduce the appearance of the visibility of cellulite. The business was
started in the year 1980 and is one of the largest health and beauty retailers. The other similar
business enterprise is Tan Warehouse which deals with the similar types of products and
services.
The aim of the study is to investigate the performance of the business and the changes that will
help to improve the management along with business performance. Further, it is studied about
the business objectives and the plans to incorporate the proposed changes. The study also
includes the impact of change management on the operations of the business.

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Task 1:
1.1 Profile of the Company (AC1.1)
The chosen entity selected for the continuance of the study in order to easily evaluate the
comparison of the firm with the other enterprises in the industry. The company specializes in the
beauty products. One of the most special products which the commerce specializes is the self-
tanner. It is the product that specializes in its ingredients as it helps in reduction of tan and even
smoothening of the skin. It helps in reduction of the cellulite and its appearance.
The firm is founded through the funds acquired by winning of the Dragon's Den the famous
reality show. The enterprise was started by its founders Kate Cotton and Louise which was
further invested by Kelly Hoppen via the reality show. After winning the show the corporation
was able to attract a large number of investments. With the help of the investment, the entity was
able to expand itself well (Morgan, 2012). The company started its operation in the United
Kingdom on 6th February 2013. The chosen commercial stands within the private limited with
the minimum number of share capital investment (Skin Care. 2017).
The strengths that are very well highlighted by the entity are to effectively manage its resources
well, as the prime motive of the entity is to achieve the customer satisfaction level the maximum.
The corporation has proved its strengths well as becoming the sole manufacturer of the specialty
of the beauty products (Churet & Eccles 2014). One of the biggest strength is the special
ingredient which helps in the reduction of the cellulite for its users. The company also claims
well its specialization of the product in reducing the tan.
With the strengths, the company is able to bears certain weakness which becomes hurdle as in
the growth of the enterprise to all a new level. One of the biggest weaknesses is the lack of
skilled folks as employee workforce. According to the Zairi (2012) has well mentioned that the
company should further help in the development of the brand image. The brand image helps in
an escalation of the sales, which leads to a rising in the profits. The entity lies in providing
proper training to the employees. The training helps in the proper division of the duties, in order
to follow the procedures well in which the entity works. The communication network is also

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where the firm lies. The firm lacks in the authority structure coordination as at presently, there
exists the communication gap between the founders as well as the shareholders.
1.2 Comparative Analysis of the stated firm along with the Tan Warehouse (AC1.2)
Financial Analysis:
The analysis comprising of both the entities helps in evaluating the financial position well. The
figures well reflect the entries for the year ended 2015-2016.
Particulars Skinny tan Tan warehouse
Profit and loss £9294 (£83532)
Current Liabilities of the
firms
£1536 £4034
Total Current Assets £2123 £242
Cash £0.25m £2m
Ratios:
Current Ratio= (Current
Assets /Current Liabilities)
1.382 0.059
Cash Ratio (Total
Equivalents / Total Current
1.62 4.95

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Liabilities)
After evaluating the figures, it is easily figured out well the first entity as working on the small
scale line in the association of the other corporation which is a big corporate house. The entities
lying in the same segment present as in beauty industry situated in United Kingdom (Self-tanning
& salon spray tan solutions, products & accessories.2017).
From the calculations it can easily derive some significant conclusions firstly, the current ratio
of the entity one has better use of the current assets well. The corporate, on the other hand,
correspond to that it is not using the assets properly. On the contrary hand, the firm cash ratio is
well deal which truly represents the proper usage of the cash. It easily signifies that the current
assets are properly used (Maina & Ishmail, 2014).Lastly, from the analysis it can be figured out
well, that the corporate house despite strong expansion as well as the wealth accumulation
reflects the scarcity of management of firm operations as the excess of cash ratio according to the
positioned ideal norms, which demonstrate poor management of cash and other liquid assets
(Skin Care. 2017).
Marketing
The marketing is considered as one of the most important areas of the function that is involved
which leads to the preparation of detailed research, followed by the proper planning. In order to
properly conduct the research the entities ideally hire the use of the tools such as SWOT. (Mella,
2012) This helps in the identification of the strengths, weakness of the firm along with the
opportunities and the threats.
SWOT Analysis:
Particulars Skinny Tan Tan Ware House
Strengths ● One of the fastest in
terms of growth
● One of the best ever
enterprise in

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within the industry
as through winning
the reality show.
comparison with the
rest of the
enterprises in the
demographic region.
Weakness ● Lack of Skilled
Workforce.
● Lack of proper
planning.
Opportunities ● Expansion in the
terms of the
geographical
boundaries.
● The entity focus on
the introduction of
the new range of the
products.
Threats ● Existing large-scale
firms with huge
capital occupy the
too majority of the
market.
● The start-ups within
the industry have led
to too much of
competition.
From the above table, we can clearly figure out well the detailed aspects that involve the
functioning of the firm.
Production:
According to the Kastalli & Van Loo (2013) has well covered in their text that the production
levels of both the entities are different. The first entity since a small scale enterprise though on
the track of growth expansion has lower production levels. Whereas the other company is large
scale enterprise has a huge variety of the products range followed well by the enhanced
production levels.
Human Resources:

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The resources are very well used by the second enterprise as its one of the leading corporate
house. The entity uses a specialization of the resources as the human resources. The human
resource used by the second corporation is the huge number of the skilled folks. In contrary, the
other enterprise is the small scale unable to recruit well the skilled forces (Vukšić, Bach &
Popovič, 2013).The folks are required as it helps in designing of the new plans, actions, along
with the innovation techniques.
Technology:
The technology aspect is one of the most effective one in the terms of the growth. The corporate
house is well equipped with the latest technology. The entity uses well the integrated process
which helps in the raising the production levels. The production in order also leads to the
introduction of new range of the products (Yu et al. 2013). On the other hand, the small scale
entity is bound with the usage of the limited technical software’s. The enterprise at presently uses
well the CRM and ERP software which leads to the integrated process. Though, the company
continuously focuses on expansion through its investment which leads to the rise of the up
gradation of technology level as its future plans.
Sales:
In the terms of sale both the companies has well reflected positive figures. The corporate house
has shown a growth of 10 percent in the sales of its entire products range. The company also
prepare its action plans to double up its sales figures well. The sales team has come up with the
new and advanced strategies that will help to boost up their sales (Saeidi et al. 2015).On the
other hand, the small scale company even reflects positive figures by the growth of five percent
in its revenue. Further, the firm plans to recruit three sales executives to work on its sales areas.

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Task 2
2.1 Recommendations to overcome the weaknesses of the organisations
The enterprise is not able to be in the competition market along with various big brands that are
situated in the industry. And have various other weaknesses that have to be overcome for
stability in the business. According to Abbott (2014), there is the requirement of few changes to
overcome the issues.
The enterprise must need to change the structure of its operations. It can be done easily by the
making of the proper plans and structure for every activity that comprises well in the production,
sale and marketing.
The business enterprise must change the technologies which are being used for long times and
are traditional to the small business. The changes of technologies which they generally use are to
be changed with some modern and effective technology and can be ideal for such business
industry. The change in the technology would help the business enterprise for being in the
competition of the related industry.
There must be employees with better efficiency and talents which are the most desired criteria
for such industry to satisfy the customers. Alden & Nariswari (2017) stated that, the expert
employees with prior experience and better skills to deliver their duties are to be recruited by the
enterprise for better delivery of their services. Human resource managements are the best to find
such employees and can provide them to the company. Human resource managements are the
responsible system which does find the desired employee which are suitable to serve the
company for meeting the requirements of them. There should be professional advice from the
better advisor who can provide the right matter which can be helpful for the enterprise to run
better in the competition market.
The employees of the company should be smart, efficient and honest and can handle all the
works including cash handling in effective ways (Basin, Burri & Karjoth, 2014).
The environment of the enterprise has to be clean and hygienic so that the customers are attracted
toward the company and are able to satisfy themselves from the services that the enterprise

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provide to them. Thus these are the few changes that are very much needed to grow further in the
competitive market.
2.2 Ways to maintain and strengthen the existing performance of the company
The report has proved that the small business enterprise is in the growing stage within the
competition market in terms of sales and services of its products. There is fast growth in the sales
and services of the enterprise. Di Zhang & Swanson (2013) stated that, more the increase in sale
and service more is the level of profit in the business. The profits of the enterprise are general in
the industry and are meeting the ideal norms of the industry. Along with the profit, the enterprise
does choose for providing the customers with the range of products that do diverse. The
company does provide various products which are related to tanning of skins and other salon
products that are sold directly as well as through online marketing. Apart from these services and
products the company has various other products and services which are appreciated by the
customers and they are satisfied from the enterprise. Ghose, Lê & Morrison (2013) stated that,
hence this can be clearly noticed that the enterprise has wide chance to expand rapidly and based
on the previous performance the enterprise will sooner become a huge corporate house in the
leading industry. Existing performance can be strengthened by the made of the better
performance of the employees and the products and services of the enterprise.
2.3 Suggestions for new areas to expand the business
For expansion in the business of the enterprise, there are various areas to maintain and change to
its existing performance. Goss (2015) stated that, the technologies used by the enterprise are the
main area which has to be managed in some specific processes which can reduce the lacking
aspects of them. For perfect adoption of modern technology, the enterprise can look for new
technologies that are available in the market which can make their processes easy and effective
to succeed in the competition market. The change in the technology with modern amenities can
help the enterprise to grow its production processes with respect to the production of their
products and services.

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The maintenance of the processes of the enterprise can be maintained with the help of the
modern technology (GU, 2014). Along with the production, the modern technology does help the
enterprise to be in the process of maintaining the records of them. The record of the various
aspects which may comprise of the sale, profits, expenditures, and the overall record of the
employees and related thing to the enterprise cam be maintained with the modern technology and
are helpful to keep such records for future reference to find the company’s growth and the status
of the enterprise in the competition market. The records can be comprised of payrolls of the
employees and sale record, with net & gross profit along with the expenditure of the enterprise.
According to Huang, Wu & Chen (2013), the collection of the debts can be maintained within
the records and it is one of the most important areas that have to be done through the modern
technology. The records are necessary to maintain to collect or pay the debts and without such
record, the enterprise would be unable to determine the fact about their financial status and may
fall in the ill effect of the financial condition which ultimately makes the enterprise lack in the
competition market.
The perfect audit in required for the enterprise with all the activities and processes done within it.
Not looking for the size of the organisation or enterprise, there must be the audit to all the
companies for better control and maintenance of the company. It is necessary to audit the
company for critically analyse the areas of the company and the performance of the company are
determined for future expansion in the business and stay within the market of industry
competition (Kowalkowski et al. 2017). Audit of an organisation and enterprise are helpful for
the assessment of various analyses of the costs and development for the employees with respect
to the performance in the business processes.
Task 3
3.1 Existing business objectives and plans
The enterprise has its own objects and targets as all the other organisation is comprised of with it.
The enterprise did choose the prime targets for enhancing the quality of the products and the

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services that they offer to the customers. The company does focus on the primary products and
services which comprise of the huge variety of the diverse with the help of firm diversification
that is able to gather the large area within the market. López-Cózar-Navarro, Benito-Hernández,
& Platero-Jaime (2017) stated that, in the recent time, the enterprise does offer a variety of
products and services to the customers. With the various products and service, the enterprise
does specialise in the skin tanning products and its services. The company objective to focus on
the specialised product does create the good impact on the customers and are able to locate them
in the identified location with some specialised name in the market.
With the sales, the enterprise did focus on the development of the brand image within the market
which is essential to staying back in the competition market. The enterprise is in the process of
making various advertisements to attract the emotion of the customers, which is despite their
financial condition. The customer attention towards the company and its product and services are
the main pillar for the success of the business (Min, 2015).
The enterprise has obtained various plans for competing in the industry market. The most
important plan of the enterprise is to recruit specialised employees who can fulfil the desire of
the company and finally can satisfy the customer which is the ultimate way to increase the profit
of the business. The products are being made to be more enhanced in quality and this would
attract the customer which they are satisfied from and the services are enjoyed by the customers.
The enterprise is in the trend to increase the product supply to all the leading supermarkets and
through online marketing. Morison & Ramsay (2015) stated that, with the increase in the product
supply, it would be easy to provide the product and services to the small cities and towns along
with the large cities.
3.2 Review of the business plans and suggestions of area to change in business
strategy
The plans and strategies of the company that are managed by the top management of the
enterprise, does lead the company within the track of developing in the industry market. The
management of the enterprise has framed some detailed business strategies and plans which