Analysis and Planning for a Small Business Enterprise: A Report

This report provides a comprehensive analysis of a small business enterprise, examining its strengths and weaknesses, and evaluating its performance using comparative measures. It identifies appropriate actions to overcome weaknesses, maintain and strengthen existing performance, and explore ...Read More

SMALL BUSINESS
ENTERPRISE
Table of Contents

INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1.1 Small business strength and weakness...............................................................................3
P 1.2 Analysis of the business using comparatives measures of performance ........................4
TASK 2............................................................................................................................................5
P 2.1 Appropriate actions required to overcome weakness in the business...............................5
P 2.2 Ways in which existing performance could be maintained and strengthened...................6
P 2.3 New areas in which the company could be expanded.......................................................6
TASK 3............................................................................................................................................7
P 3.1 Assessment of existing business objectives and plan........................................................7
P 3.2 Business plan to incorporate appropriate changes.............................................................8
P 3.3 An action plan to implement the changes..........................................................................9
TASK 4..........................................................................................................................................10
P 4.1 Impact of the proposed changes on the business and its personnels................................10
P 4.2 How the changes will be managed in the business.........................................................10
P 4.3 Improvement in the performance of the business over a given timescale......................11
CONCLUSION..............................................................................................................................12
REFERNCES.................................................................................................................................12

INTRODUCTION
The small business enterprise is the business in which few people run the business. In
today competitive market., there are various number of small business enterprise the economy
small, business enterprises capture a considerable share of the market (Altman,Sabato and
Wilson,2010). There are many areas in which the small business enterprise can grow in the long
term. In the following report it will be discussed that the small business enterprises have their
own positive as well as their negative sides in the market. The small business enterprises have to
make some efforts to upgrade their business. There are many calculation measure by which the
performance of the business of small business enterprise can be evaluated. Small business
enterprise like Austin Fraser limited can be many industry like engineering, information
technology and consultancy firms etc. There are many challenges of the small business enterprise
has to face while running the business with the success. To deal with then challenges the small
business enterprises must use the and implement some appropriate action plan. The existing
performance of the small business enterprises can be improved by effective strategy.
TASK 1
P1.1 Small business strength and weakness
Austin Fraser being a small business enterprise there are some strengths as well
as weakness in the business. The small business enterprises has the less complex management
system as it has few employees in the organisation (Bellucci and et.al., 2010). In the Austin
Fraser there are lower level of funding required. There is less risk in the small business enterprise
like Austin Fraser as there is well established huge goodwill in the market, so it can take
innovative action in the business to improve the business in the future. Being a small business
enterprise of recruitment consultancy,Austin Fraser has the benefit of more focus on customers.
Another strength of the small business enterprise is the organisation is more
responsive about market need as it is in process to make identity in the market. The small
business enterprises like Austin Fraser have many weakness also with them. The small business
company has the poor access to finance as it has no established image in the market, so there is
no so much arrangement of the finance to support in running the business. There are limited

resources for the business in the small business enterprise as they have no monetary support so
much (Bridge and O'Neill,2012). As there are few people in the staff, there is less chance of
having highly skilled employees in small business enterprise. Another weakness of small
business enterprise like Austin Fraser is that they have less strategic planning and thinking as
there are not much skilled management person.
As there is no big staff in the small business, there is no job security for the
employees because of less capability of paying salaries to the employees. There is no specific
standardisation related to work environment or quality of the product and customer retention.
Thus there are many strengths along with weakness in the small business enterprise like Austin
Fraser.
P 1.2 Analysis of the business using comparatives measures of performance
Austin Fraser has to monitor the performance to make sure that there is
improvement in the existing performance of the business. There are many measures of the
business performance like questionnaire with customers, financial statements,sample
data,interview and research etc. In the measuring the business performance related to finance, the
financial statements are analysed or reviewed (Chittithaworn and et.al.,2011). If there is any
deviation in the financial performance like cash flow, profit and loss account, balance sheet and
entries in the journals, an appropriate action can be taken by the company. There are many small
measures of the financial performance like gross profit margin, operating margin, net profit
margin or return on capital employed through which the accurate current financial performance
of the company.
Austin Fraser can use the customer responses by surveys , questionnaire in which some
questions are asked related to the product and services of the company. In the questionnaire , all
responses of the questions are recorded and an interpretation of each response is prepared sop
that in the final report of the questionnaire suggestions can be given to improve the performance.
If the organisation gets the negative remarks by the customers then it would make some strategy
to improve the services and product quality so that maxim um customer satisfaction can be
achieved. Through interview with the employees which is also a measuring method of
performance, the company can get the information about how comfortable its employees are so
that they can do their best in work.

The personal interview with the employees can alsop be used as performance
measure of the business (Cowling,Liu and Ledger,2012). In this the Thus by using these above
mentioned performance measures, Austin Fraser can compare the desired performance and
actual performance of the business. This measurement of performance makes the strong position
of the company in the market in the long term by rectifying any mistake in the performance.
TASK 2
P 2.1 Appropriate actions required to overcome weakness in the business
Austin Fraser being a recruitment consulting firm and small business enterprise, it
needs to monitor its weakness and convert them into opportunities or benefit for the future
growth in the market. The small business has some major weaknesses which can create problem
in the business. The weakness related to the law and regulation which are implied by the
government authorities of local as well as international can be overcome by making a strict
policy for each person working for the organisation (Draycott and Rae,2011). The weakness
related to the customer retention, the company should concentrate on the selected customers,so
that they can be satisfied and consequently they can be made permanent customer of the
company in the future.
The weakness related to the inventory management , the organisation can use the
FIFO method in which the first received material is consumed first that make the minimum
wastage of the remaining material. Recycling of the wastage can also be used to overcome the
inventory problem in business. The weakness of the small business related to social
responsibility, the company should be aware of the policies of environment protection and
contribution to the society at small level.
The organisation can overcome the weakness related to financial support by
reducing the cost with maintaining quality of the product and services. Austin Fraser can
overcome the weakness of the less customer response by reducing the charges for the online
consulting services. So that maximum customers find the service very reasonable. Thus there are
many appropriate actions the company can use to overcome weakness in the business in long
term.

P 2.2 Ways in which existing performance could be maintained and strengthened
Austin Fraser being a small business has a lot of scope in improving and maintaining the
existing performance of the business (Forsman and Temel,2011). There are many ways in which
the company can improve its existing performance which are customer opinion priority,loyalty
building, performance record,communication and support to the customers. These ways can be
explained as below.
Customer opinion priority
The company should make sure that it gives preference to the opinion of the customers .If
the customer gives his opinion about time management of the service delivery then the company
should minimise the time consumption in proving the online consultancy services to the client
company as well as the candidates.
Performance record
The organisation should keep the regular record of the each activity and process involved
in the business. By record of the every activity the company can rectify the error within time so
that there will be no more difficulties in the future process of the business (Gronum,Verreynne
and Kastelle,2012). The company should be aware of the all procedures which are to followed in
the organisation by all employees.
Customer support
Austin Fraser can maintain and strengthen its existing performance by responding every
time a customer needs support regarding services of then company. Being a consultancy firm the
company needs to resolve any query of the customers.
Loyalty building
The company should take appropriate actions for building customer loyalty at maximum
so that there could be positive impact on the growth of the business. It can also improve the
existing performance of the business in the long term. Thus there are many ways through which
the Austin Fraser can strengthen and maintain the existing performance to achieve its desired
goals and objectives in the near future.
P 2.3 New areas in which the company could be expanded
Austin Fraser being a recruitment consulting company has a lot of scope of explore the
new areas in which it can get the growth. There are different new opportunities in the new areas

in the field of recruitment consultancy. Some of the areas in which the company can grow and
expand its business as following.
1. Research techniques
The company can explore its business in the research techniques as there are many changes in
the technology time to time which makes then opportunities for the business to be expanded. The
company can conduct a research on the latest ans useful techniques like qualitative and
quantitative techniques. By research technique , the company can identify the new product in
which it can start its production in the market.
2. Development in the market
The company can expand its business by developing the market through introducing some new
features in the existing product and services (Herbane,2010). In the competitive market situation
and development, the organisation can explore the new areas in which it can expand the
business. By adding new features , the company can launch new product in the business market.
3. Identification of new opportunities
The Austin Fraser can expand its business by identifying the new opportunities in the
condition of recession or inflation .In these situations the company can fluctuate the business
according to the market situation and convert it into new opportunities for business.
4. Re branding
The company can expand its business in the long term by rebranding its product. It can
modify the feature of the product according g to the need of the customers so that there will be
maximum sales and customer satisfaction which leads to the revenue generating and profit
maximisation. Thus there are many new areas in which the organisation like Austin Fraser can
expand its business. Re branding can be done by altering the exiting product and goods or
services to increase the new opportunities.
TASK 3
P 3.1 Assessment of existing business objectives and plan
The small business enterprise like Austin Fraser should have achievable, profitable and
relevant objective which can help in achieving the desired position of the business in the market.
The company should have SMART objective so that it can be achieved in time. The business
plan for the company in the field of recruitment consultancy (Islam and et.al.,2011). The

company should use the strategic business plan to accomplish its goals and purpose with the
maximum customer retention. The goals and objective of the company should be measurable so
that it can be easily achieved by the company. The plan of the business is crucial part of the
success of the company. Because if the business plan is not effective then there will be
difficulties in achieving desired objectives and goals in future.
SMART objective stands for simple,measurable,achievable,relevant and time bond. The
objective should be simple so that it can be accomplished. If the objective of the business is
irrelevant to the business, the management team will not be able to progress in the achievement
of the objective (Jasraandetal,2012). The business plan to achieve the goal also should be
effective which can be useful in capturing a considerable share of the market. The time bond for
objective is also a must thing to follow as if there is no time limit for the target achievement,
there will be no management in the process of objective achievement. Thus the business
objectives and business plan of Austin Fraser are important part of the success of the business.
P 3.2 Business plan to incorporate appropriate changes
The Austin Fraser being a recruitment consultancy firm and small business enterprise, it
needs to have an efficient business plan which can help in surviving in the changing situation of
the market. The organisation has to use forecasting theory to deal with the change in the market.
It should estimate the situation like boom or slow down in the market and modify the business
strategy according to that. The company should be updated with the latest technology as there are
many changes in technologies time to time. By updating with the time process in the business
can be easy.
An effective business plan should be in such a pattern that every employee of the
company participate to incorporate appropriate changes in the company. So that they can
improve their performance through new changes in the process of the small business
organisation like Austin Fraser .
Changes in the policies and procedures related to the working condition for employees is
also a responsibility of the organisation (Jones and Ireda,2010). The company has to follow all
guideline to provide suitable work condition to the employees so that they can work with
complete effectiveness and efficiency. Changes in the need of the customers can also be dealt by
modifying the product and services according to their choice. Changes in business plan can also
help to achieve the objective of the business.

To deal with the change in business strategy of the competitor, the company should make
changes in its own business plan and strategy to compete in the market. Thus there are many
aspects which should be included in the business plan to deal with the changes in the market.
Business plan can also help through modification in the feature of plan.
P 3.3 An action plan to implement the changes
An action plan is an official document which includes a list or points in which the
resources and their uses are included for the company. This effective plan is made by the
planning manager of the company to clarify what resources are required to reach the goal,
formulate a timeline for when specific tasks need to be completed and determine what resources
are required.
Changes in the business is an inseparable thing in today changing market. The
implementation of changes in the company needs an appropriate action plan which can make it
easy to implement. There are many useful and effective change management theories and models
to implement then changes in the business (Malhotra and Temponi,2010). Some of them are
crating short term target,communicate regularly,legal requirement are fulfilled and professional
practice etc. An appropriate action plan can be designed as followings.
1. In first step of an action plan to implement the changes the goals and the objectives are
determined and identified. So that there will be easy achievement of the goals .
2. In the second step the change management team should assess the rules , roles of the member
of business plan an the tools which are to be used in implementing changes.
3. After the role are clarified to each team member, the appropriate action plan is decided. In this
step the action plan which is suitable for the nature of the business and the objective of the
company like Austin Fraser is developed.
4.In the fourth step, the action plan is Implemented. In implementing the action plan, the key
areas to improve are considered and the progress in the action plan is evaluated. The current
situation of the business is discussed in the regular team meetings. Thus the action plan plays the
crucial role in the success of the business of Austin Fraser.

TASK 4
P 4.1 Impact of the proposed changes on the business and its personnels
Austin Fraser being a recruitment consultancy firm is influenced by many factors which
can affect the business strategy as well the business plan and its members (Mason,2015). The
change in the internal and external environment also has impact on achieving goals and
objectives in time. There are many changing factors like political factors, technological
factors,social factors as well as environmental factor. These can be explained as below.
1. Impact of political changes
The change in the political situation can affect on the business as the change in the
government can fluctuate the business and its members. If the government authorities make the
policy which is beneficial for the company, it will affect the business in positive way.
2. Impact of Social changes
Social factors include the preference and choice of the society .The company must
consider this factor as tit runs the business because of the customers who live in the society. If
the society changes its choice in the product and services, then the company also has to change
its business plan according to the society.
3. Impact of Environmental changes
Environment also plays a crucial role in the business and its people. If there is any
changes in the climate then the company also has to act according to that (Nga and
Shamuganathan,2010). If there is unavailability in the natural resources like petrol, natural gases,
coals and water then it will hinder the whole business of the company Austin Fraser.
P 4.2 How the changes will be managed in the business
Change management is a business approach which is used to transit the individual,teams
and the business organisation tom use the the changes patten or method of resources ,budget
allocation ,business process and other changed modes of business organisation .So that they can
perform in more efficient way.
In Austin Fraser there are many changes in the process of the business to improve the
current position of the company. To manage the changes in the business the company must
analyse the business in term of its nature, scope and goalsc (Schaper and et.al.,2014). After
analysing the business, the organisation has to determine the crucial areas in which the

appropriate change id needed. In next stage the company collects the data and the information
then the list of the priority is prepared about proposed changes which are made in the business.
The information is presented to managers and high level authority of the company so that
necessary adjustment can be made in the changes to make it better for the business. After
discussing the changes with the managers, it has to be discussed with the employees too. After
the discussing the changes with the employees, the training to the employees is given so that they
can perform their duties well in the implementation of the changes.
Before the official implantation of the changes in the business, the company must make a
prior model so that a raw practice can be done for the changes in the organisation. Thus the
changes in the business can be managed by an appropriate process which can help in achieving
the desired goals of the company as the change s are for the benefit of the business in the long
term.
P 4.3 Improvement in the performance of the business over a given timescale
As there are lots of changes made in the organisation to achieve its goals, there can be
fluctuation in the performance in the business. Improvement in the performance of the business
can be done in many ways like assessing the current situation in which the organisation can use
SWOT analysis,benchmarking,market research,trend analysis and web based seminar because of
being a recruitment consultancy firm. After assessing the current situation the organisation can
sets the clear goals to improve the performance of the business in which the goals should be
specific,measurable,relevant,achievable and timely done.
To improve the performance after setting the goal, the company should identify the
strategies which are to be used for achieving the goals (Smallbone and et.al.,2010). The
organisation should be careful while choosing the strategy for improvement in the business.
After choosing the right strategy , the organisation should develop a business plan for
implementing the strategies which should include a fixed time frame,
actions,responsibilities,resources and a desired outcome. After the business plan the company
should measure the results to see whether the desired result is achieved or not. If there is
difference between the desired and achieved results then an appropriate action is taken to lessen
the gap.

CONCLUSION
From the above report it can be concluded that the small business enterprises are
important part of the market. They have their own merits and demerits in term of business. For
improvement in the current performance of the business,there are many measures by which the
performance can be calculated. The organisation like small business enterprise can overcome its
weakness by using efficient strategic plan for the business. Being starter in the established
market small business has scope in the new areas in which the business can be expanded. There
are many changes which can affect the business and its members. To deal with such changes,
business plan is also modified according to the situation.

REFERNCES
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Malhotra, R. and Temponi, C., 2010. Critical decisions for ERP integration: Small business
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Mason, C.M., 2015. Spatial variations in enterprise: the geography of new firm formation.
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