Analysis of Cafe Portrait: A Small Business Enterprise Report

This report provides a detailed analysis of Cafe Portrait, a small business enterprise located in Scotland, focusing on its profile, strengths, and weaknesses in comparison to its competitor, Lantana Cafe. The report covers key aspects like employee performance, sales, and profit margins. It identifies areas for improvement, recommending actions to address weaknesses such as high employee turnover, outdated technology, and limited space. Furthermore, it suggests strategies to maintain and strengthen existing strengths, including employee training, innovation in dishes, and enhancing the ambience. The report also proposes new areas for business expansion and includes an assessment of existing objectives, revisions to the business plan, and an action plan for implementing changes, considering their impact on the business and personnel. Finally, the report concludes with an overview of the improvements in business performance over a given timeframe and cites relevant references to support the analysis.

SMALL BUSINESS ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business........................................................................................................1
1.2 Analysis of the business using comparative measures of performance.................................3
TASK 2............................................................................................................................................5
2.1 Recommend and appropriate actions to overcome the weaknesses in the business..............5
2.2 Analysis of ways in which existing performance could be maintained and strengthened....6
2.3 Recommend on new areas in which the business could be expanded...................................7
TASK 3............................................................................................................................................8
3.1 Assessment of existing business objectives and plans..........................................................8
3.2 Revise the business plan to incorporate appropriate changes................................................9
3.3 Action plan to implement changes......................................................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of changes on business and personnel.....................................................................11
4.2 Management of changes in organization.............................................................................12
4.3 Improvement in performance of business over given time scale........................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Around the world, there are many organizations which deals with different set of
business. Main aim of any company is to gain maximum profit and this is only possible when
they satisfy their customers’ needs and requirements. Business entities big or small make use of
diverse set of strategies through which they aim at achieving their goals and objectives. Small
business enterprise are firms that aim at delivering their customers with adequate services and
adopts diverse strategies through which they attract more and more customers (Goffee and Scase,
2015). There are limited employees working in this type of enterprise and they make sure that
requirements of service users are satisfied. Present report is about small scale enterprise called
Cafe Portrait that is located at Scotland. They provide their customers with meals, tea, coffee,
cakes, etc. One of the main competitor for this company is Lantana Cafe. This report covers
enterprise profile, its strengths and weaknesses. Further, it covers different ways through which
weaknesses can be resolved. Moreover, it covers setting up new areas in which business can be
expanded. Lastly, it also includes impact of proposed changes on the business and personnel.
TASK 1
1.1 Profile of small business
Every organization have set their own mission and vision that enables them to develop
path on which they can reach them. Cafe Portrait has aimed to make sure in providing their
customers with high quality services. Below given are the enterprise profile:
Name Cafe Portrait
Address 1, Queen Street, Edinburgh EH2 1JD, Scotland.
Phone Number 4382737462
Email Address [e-mail]
Number of employees 26
As stated above, ever organization have set up their mission and vision. In this context,
below given are the vision and mission of Cafe Portrait:
Mission: Ultimate focus of this enterprise is to make sure that they provide their
customers with high quality services and that also with proper hygiene. Further, they also aim at
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providing their customers with healthy environment in which they can enjoy their meal. In
addition to this, they provide hygienic and nutritious meal and that also at low price.
Vision: To provide customers with the best meal and to develop positive perception
among customers mind by making sure that they provide them with maintained standard of
quality. Further, they also focus on identifying skilful and capable employees who will be able to
provide their customers with proper services (Browning, Cook and Browning, 2016). They
identify the areas in which they lack and accordingly they provide them training so that issues
faced by workers can be solved.
Below given are the strengths that enables the firm because of which enterprise is able to
achieve their goals:
 Cited enterprise provide their employees with all type of tools and equipment and this
helps them to provide their customers with better and high quality services.
 Provide their customers with attractive ambience and it this enables to develop positive
perception among customers mind.
 Focus on making new innovations in different type of dishes and services. In this context,
they conduct market research in order to know customers taste and preference.
Accordingly, they make changes in services and add up new dishes with an aim to satisfy
customers.
 New customers are provided with discount offers and photographs are taken as a memory
(Allen, 2013).
 Regular customers are given gift voucher and these are helpful to develop brand image.
 Wide verity of dishes are provided to customers and this enables to attract more and more
customers.
There are different set of issues which are faced in the enterprise. Below given are the
weaknesses of Cafe Portrait that affected the business operations negatively:
 There are cases in which many people visit and it becomes difficult to manage all of
them. In such situations, customers face difficulty as waiting time increases. Further,
there is not enough space and so other customers have to wait until other people finish
their meal.
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 The employee turnover is high and so there is frequent change in staffs. When new
people are hired, then they are not able to provide customers with proper services. In such
situation the co-ordination among them is not effective enough.
 Changes in technology take place frequently and it is important that management make
use of updated or new technology which do not take place at cited enterprise.
 The space is less and this causes issues as people do not get space to sit and this reduces
the sales.
1.2 Analysis of the business using comparative measures of performance
At all the levels or areas, main aim of companies is to gain maximum profit and it is
achieved when they fulfil customer’s needs and requirement. Further, there are enterprise like
Cafe Portrait that provide similar products and services. In this context, Lantana Cafe is one of
the effective competitors of Cafe Portrait (Garbarino and Magnavita, 2014). Below given are the
comparative analysis for both the enterprises in the year 2015:
Table 1: Employees performance at Cafe Portrait
Year ending 2015 Cafe Portrait
Staff turnover Rate 7.00%
Job satisfaction 94.00%
Absenteeism 14 days
Job offers 17.00%
Table 2: Employees perform at Lantana Cafe
Year ending 2015 Lantana Cafe
Staff turnover Rate 6.00%
Job satisfaction 79.00%
Absenteeism 17 days
Job offers 11.00%
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As per this performance analysis, four different areas are considered and when there are
compared, then it can be started at in all aspect, performance of Cafe Portrait is more effective.
However, employee’s turnover rate is higher when compared with Lantana Café (Kumi, Owusu-
Mensah and Winful, 2014).
Further, below given are the sales done in five years for two enterprises:
Table 3: Sales of Cafe Portrait in five years
Year Cafe Portrait
2015 443
2014 427
2013 397
2012 304
2011 276
Table 4: Sales of Lantana Cafe in five years
Year Lantana Cafe
2015 331
2014 303
2013 269
2012 257
2011 232
When compared with all the years of sales performance, both the organizations are
growing at increasing rate. However, in all the years the sales of Lantana Cafe is lower than Cafe
Portrait (Goss, 2015). This shows that the performance level is high and people are able to
develop positive image among customers mind through their products and services.
Below given are the profit gain by the organization in five years:
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Table 5: Profit made by Cafe Portrait in the year 2015
PBT (Profit
before tax)
(￡000)
PAT (Profit after
tax)
(￡000)
Year PAT (Profit after
tax @20%)
(￡000)
PBT (Profit
before tax)
(￡000)
576 439 2015 500 608
498 368 2014 450 567
464 342 2013 438 549
425 331 2012 380 477
391 319 2011 347 440
From the table given above, it can be stated that Cafe Portrait is performing their roles
and responsibilities in an effective manner and their profit margin is raising at an increasing rate.
TASK 2
2.1 Recommend and appropriate actions to overcome the weaknesses in the business
In order to overcome problem of the Cafe Portrait following actions are taken by the
organization:
 Reduce turnover of employees: In the organization employees turnover is very high
because they are not satisfied with the functions of business. To overcome this problem
cited firm need to motivate them through different ways towards the objectives of firm
(Gu, Foster and Shang, 2016). Managers can provide incentives and monetary benefit for
their work so they are efficiently work within the organization. It helps to reduce cost for
hiring new employees within the business. Further, they also need to manage time for
employees so that they do not move towards the other businesses.
 Use of advanced technology: In Cafe Portrait, technology is very poor so employees are
unable to give proper services to their customers. Organization should upgrade their
technology so that they can provide better services and convenience to customers. As
customers are not satisfied with poor services, they can move towards the other hotels.
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Thus, with the help of advanced technology organization can maintain their existing
customers and attract potential customers as well.
 Employee training: Employees of the cited firm have less knowledge to maintain
customer relationships because there is lack of training. Thus, organization needs to
provide them proper training so that they can manage their services for customers. Along
with this they will also understand their roles and responsibility towards the organization.
This will help them to work efficiently in the organization (Charkha and Jaju, 2015).
Further, manager can also provide training to use less time in cooking so that they are
able to provide food as soon as possible. Thus, from the help of training, staff is enabled
to provide food services to customers in less time.
 Reduce waiting time: In chosen business, there do not have proper seating arrangement
for customers. This creates negative impact on them. Thus, manager have to make proper
seating arrangement for customers so they can easily reduce waiting time.. They can
expand their place and arrange more chairs and table so that customers have no need to
wait.
2.2 Analysis of ways in which existing performance could be maintained and strengthened
To solve the issue or weaknesses which are faced by cited enterprise is not just enough.
However, it is also important that they develop strategies so improvement can be made in
existing strength. In this context, following are the ways through which improvements can be
made in maintaining strengths:
Tools and equipment’s: Cafe Portrait provides their employees with proper tools and
equipment’s so that they can provide their customers better services. However, they can make
improvement in this strengths by providing employees with training to use these tools in an
effective manner. There are cases in which workers fail to make use of tools and equipment’s but
when they are provided with proper training they will be used them for the growth of the
organization (Page and Söderbom, 2015).
Ambience: Enterprise should focus on lighting and use different colours so that they will
be develop positive perception among customers mind. Lighting enables to present the
decorations and adds beauty. Further, management can also add beauty to place in which
customers enjoy their meal. Further, they should be provided with attractive plates, glasses,
spoons, etc. so that service users feel that they are being provided with luxury services.
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Youths: All beneficial services are provided to families and children's. However,
management should develop strategies for young people so that they visit to cafe often. Young
people can be determined as potential customers. When services will be provided to this group,
then regular customers can be changed to loyal once.
Innovation in dishes: Employees working in kitchen department are required to be given
training for continental dishes and diverse set of coffee which are developed around the world.
This will enable to attract more and more customers as there are people who prefer to have
changes in their taste. Taste and preference of customer’s changes frequently and it is important
the enterprise conduct market research so that they will be able to make changes in their services
and products accordingly (Jayawarna, Rouse and Kitching, 2013). Through research, enterprise
will be able to satisfy their customers and to change regular to loyal once.
2.3 Recommend on new areas in which the business could be expanded
Enterprise can make use of different set of strategies with the help of which they expand
their business. In this context, below given are few of the ways that will enable Cafe Portrait to
expand their business:
Diversification: This is type of strategy in which enterprise will aim at developing new
product and services. In other words, management will aim at making improvement in the
products and services. This done only when research is conducted to know customers taste and
preference. Through diversification more and more customers can be attracted and they will be
able to satisfy them by providing high quality services.
New location: There are many areas in which cited enterprise can make their business
expansion. This is also known as introducing branch which will provide similar services and
products at new location. There are many benefits to the enterprise but this can be done when
firm budget enough has to open up new business at new location (Isaac, 2016). There are cases
in which people who are far away and cannot make use of services and products that are
provided by cited firm, then my starting up a branch will enable to attract new customers. This
will help to raise customer base.
Global expansion: This is a type of strategy in which organization make their business
expand in new market. It requires market research in order to know customers’ needs and
requirement. Accordingly, changes should be made so that customers can be attracted. However,
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it is important to make use of promotional strategies as it will enable the enterprise to convey
proper information regarding the type of services which are provided by them.
Online services: As per this type of strategy, enterprise will provide their services with
the help of internet. The rat of internet users are increasing and this is a type of benefits which
management will get. People who are far away and cannot make use of services, then online
services will be able to attract more and more customers (Ngugi, Johnsen and Erdélyi, 2010).
This will enable the organization to provide their services or products at door steps of customers.
Moreover, management can also make use of social media in which they will get to know the
perception of customers towards the services that are provided.
TASK 3
3.1 Assessment of existing business objectives and plans
In all the areas or aspects that has to be improved or modified, it is important to develop
strategies so that management will be able to develop path on which it can be fulfilled. In this
context following are the objectives and plans that should be followed by Cafe Portrait:
Develop customer relation: Customers are the one because of which management get to
know about the sale and performance. Ultimate aim of companies to gain profit it is possible
when customers are satisfied. In this context, it is also essential to develop strong relationship
with service users as it helps in making customers loyal towards the products and services which
are provided to them.
Retention: It is always better to retain employees than to hire a new one. With this
respect, all the issues which are faced by workers should be identified and they should satisfied.
Employees who has worked for long have the knowledge of their roles and responsibilities but
workers who are hired newly do not that much confidence in them (Jayawarna, Rouse and
Kitching, 2013). Management should take appropriate steps through which performance can be
raised.
Training: Most of employees are new and so that do not have proper knowledge
regarding the roles and responsibilities that has to be performed by them. In this context, workers
should be provided with proper training as it will enable to understand and to provide customers
worth proper services. Training will also help to raise motivation level and it is helpful to
maintain the interest and willingness towards work.
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Increasing sales: Management can raise their sales when they provide their customers
with high quality services. As per the case, Cafe Portrait does provide high quality services.
However, the main issues is price and this is a factor which influence buying behaviour. With
this respect, cited enterprise should focus on providing quality services with low prices. This will
be helpful in attracting customers.
Innovations: Changes in taste and preference of customers take place frequently and it is
important that the firm make frequent innovations. This is effective way through which positive
perception and interest of customers can be maintained (Youtie and et.al., 2012). In addition to
this, management can also attain competitive advantage through this.
3.2 Revise the business plan to incorporate appropriate changes
Changes that must be made in proposed plan are explained below.
 Developing relationship with service users- In the business plan prepared above it is
stated that strong relationship must be established with service users. Ways that must be
adopted to develop strong relationship with service users are not determined. Café
Portrait can develop strong relationship with users by launching a scheme. Under this, it
can determine that those who will come two times a week in the café will receive some
discount. By preparing this strategy firm can create its good image among the customers.
It is making available product at cheaper price to them. Hence, people will consistently
like to visit firm café. By doing so firm will easily retain customers in its business.
 Retention- In order to retain employees firm needs to generate some motivating factors.
It is motivation that force and energize individual to work hard in specific direction for
benefit of an organization. In this regard, Café portrait can give attractive incentives to
the employees. Apart from this, specific items or gifts can also be given to employee for
giving best performance at the workplace.
 Training- Many new amendments needs to be made to the training program. All sort of
training’s can be given collectively to the employees (Steinerowski and Steinerowska-
Streb, 2012). This approach does not guarantee that employee’s will learn each and
every thing in proper way. Hence, first of all list will be prepared in which varied
trainings names will be mentioned. These trainings will be given on varied days.
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Moreover, single sort of training will be divided in to multiple parts. By doing so it will
be ensured that trainees are learning each and everything in proper way.
 Increasing sales- High product cost is one of the main factor that will hinder growth in
sales. In order to prevent occurrence of this situation efforts needs to make in relation to
cost control. In this regard, small workforce will be employed in Case portrait. In training
program lots of things will be teach to the employees in relation to working with other
with full coordination (Mahmood and Mohd Rosli 2013). Thus, with minimum with
minimum workforce firm will be able to deliver excellent quality service at fast pace to
the customers.
 Innovation- Innovation needs to be done in product line and in this regard variety of
products that are available in other nations of the world will be identified. Relevant
product and services will be launched in Café portrait. Such an innovative step will help
firm in creating and retaining old customers.
3.3 Action plan to implement changes
Following are the action plans that will be followed to implement change at the workplace.
 Evolving relationship with customers- In order to develop strong relationship with
stakeholders discount will be given to the customers. In order give discount to the
customers without affecting firm profitability to great extent cost control strategy will be
implemented at the workplace. In this regard items that are used by the firm to provide
service to the customers will be purchased in bulk. This strategy will help firm in
purchasing material at low price. Hence, this will help firm in selling products at low
price. Low price of product will act as lucrative offer for customers and they will like to
visit café repeatedly. This will develop strong relationship between firm and employee.
 Retaining employee- In order to retain employees at the workplace strategy of the firm is
to provide them financial and non-financial benefits. In this regard quality of service that
is delivered by each employee will be measured (Torugsa, O’Donohue and Hecker,
2012). Apart from this the extent to which overall performance of the employee get
improve will also take in to consideration. On the basis of these two factors incentive will
be given to the specific employee. Hence, mentioned entity will earn additional income
apart from salary and will like to work in the firm for long time period. By doing so Café
portrait can retain employees for long term.
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