ThirdWay Interiors: Analysis of Small Business Enterprise Performance

This report provides a comprehensive analysis of ThirdWay Interiors, a small business enterprise specializing in office and interior design. It begins with a profile of the company, including its vision, mission, and objectives, followed by a SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report then delves into a comparative analysis of the business's performance, examining operational aspects, service quality, and employee turnover. It proposes effective actions to overcome weaknesses, such as improving marketing strategies, addressing employee turnover, and implementing competitive pricing. The report also outlines strategies for maintaining current market performance through research and development, innovation, and competitor analysis. Finally, it evaluates new areas for business expansion, considering the implications of changes on the business and its workforce, and planning for effective management of these changes.

SMALL BUSINESS
ENTERPRISE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business firm...........................................................................................1
1.2Analysis if business with the comparative measurement of performance........................3
TASK 2............................................................................................................................................4
2.1 Analysis of effective actions to overcome weaknesses....................................................4
2.2 Directions to maintain the present market performance...................................................5
2.3 Evaluation of new areas for expansion of business operations........................................6
TASK 3............................................................................................................................................7
3.1 Developing an evaluation of current business policies and goals....................................7
3.2 Revision of plan to make effective changes.....................................................................8
3.3 Development of action plan .............................................................................................9
TASK 4..........................................................................................................................................11
4.1 Affect of changes on the business and its workforce.....................................................11
4.2 Planning for the management of changes in business....................................................12
4.3 Monitor improvements in the performance of business.................................................12
CONCLUSION..............................................................................................................................13
Illustration Index
Illustration 1: THIRDWAY LOGO.................................................................................................2
Illustration 2: ACES model .............................................................................................................8

INTRODUCTION
Around the world, there are various business organizations regulating their business
operations at small scale and provide effective contribution towards increasing the growth and
development of country (Stokes, Wilson and Wilson, 2010). They are considered as small
medium enterprises which are owned by small entrepreneurs, business ventures to achieve
financial growth in market and establishing their own brand image in market. In this context, as
business consultant of ThirdWay which is small-business-enterprises operating their business by
developing offices and interior designing for commercial enterprises etc. Profile of company is
developed to determine the vision, mission and objectives of firm towards regulation of business
operations. It also determined that government of UK plays a significant role and provides
financial assistance to make them grow within the country. At last, development and evaluation
of firm's business plan is done to analyse the appropriate steps should be taken by firms to
achieve success and expand business.
TASK 1
1.1 Profile of small business firm.
In growth and development of every country, there is high contribution of those
enterprises which are operating at small scale and achieved a continuous growth in market by
implementing changes in their business ideas and action plans (Herbane, 2010). Small business
firms are also considered as those enterprises which are regulating there business with innovative
ideas and delivering effective products and services to their target customers. It is also
recognised that each business enterprise has to operate its business by developing specific vision,
mission and objectives. In this context, profile of Thirdway interiors is analysed in order to
competencies of firms to expand its business operations.
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Name ThirdWay interiors
Sector Service sector
Address 2nd floor, 3-5 Bleeding Heart Yard, London, London, EC1N
8SJ
Scale Small business enterprise
Number of employees 59
Earnings £35,000
What they do Interior designing and build
Vision: This statement of the company has clearly provided understanding that the firm wants to
grow by offering cutting edge, transparent and innovative office interiors fit out alternatives to
their clients.
Mission: Most significant desire of firms is to become a champion dependable, reliable and
client focused design and build. They have made their major focus on developing a quality
working environment, development of competencies, leadership, personal growth etc.
Apart from this, SWOT analysis firms is done to recognise the competencies of firm to expand
its business at international level.
Strengths:
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Illustration 1: THIRDWAY
LOGO

Some key competencies of Third way is analysed to recognise the supports towards
achievements business goals.
 Excellent market reputation among the people as they deliver quality services and unique
designs of office interiors at effective prices.
 Expert and qualified employee that effective develops new and innovative designs to
satisfy the clients.
 Better financial position as it has achieved a continuous growth in industry as compared
to rivals.
 Quality designs and concepts of developing of interiors and building offices.
 Competitive pricing policy is a major strength which has made them more popular
between the clients.
 Wide range of designs and services are provided by the firms therefore they have
developed a brand recognition between people.
Weaknesses:
Along with strengths, there are also some weak points of the cited organizations are identified
which they have to overcome such as:
 Weak marketing policies: Marketing policies and practices of the firm are considered as
weak as they have not utilized the new and innovative channels to promote their business.
 Employee turnover: Research of firm has determined that the rate of employee turnover
in the company is high as they not giving appropriate remuneration to their workers as
compared to their efforts (A. Harris and P. Patten, 2014).
 High prices of designs and services: It is also analysed that prices charged by the firm
from there clients are high as compared to other small business firms therefore it will
affect there profitability and client's.
 Less competitive: From the analysis, it has been recognised that the competencies are
less therefore they are not considered as effective by some clients or business class
people. Strong competition in this sector has also provided major impact on their
profitability.
1.2Analysis if business with the comparative measurement of performance.
Analysis of business can be considered as the techniques utilized through which the
appropriateness of task, operations, products and services which are delivered by firm is
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evaluated (Goss, 2015). Other than this, it will also support in gaining competitive advantage and
increase the sales and profitability of business by improving their existing performance.
Comparative analysis of Thirdway is taken in to consideration which are as follows;
Operational analysis
From the analysis, it has been recognized that the firm has achieved a sustainable growth
in market. Basically there are two parameters on the basis of which operation analysis of
business can be done to analyze the current financial performance. Further the parameters are
services quality and employee turnover ratio. From the analysis, it has been analyzed that the
biggest competitors of Thirdway interiors in market is Assael Architecture that has provided
major threat to company towards expansion of business operations. In addition to this, the rival
has adopted a low price strategy which has not only helped Assael Architecture to attract more
customers but also helped in increasing its sales and profitability. It can be also stated that the
services quality of Thirdway interiors is satisfactory but the small business is required to
introduce some new and innovative services in order to survive in long run . On the other hand,
by comparing the staff turnover has been observed that cited organization is having very high
turnover rate of 4% as compared to rival has employee turnover (Forsman and Temel 2011).
Therefore, it can be stated that the employees of rivals are highly motivated and are not satisfied
with their job which is very big problem for the small business in long run.
TASK 2
2.1 Analysis of effective actions to overcome weaknesses.
For the achievement of sustainable growth in market, it is essential for the firm to
formulate and implement various actions that supports them to overcome there weaknesses. In
this context, Evaluation of third has provided a complete understanding that there are some
weaknesses that firm has to resolve by taking some effective measures which are determined
below:
 Rise in consideration: In competitive business environment, it is considered as
significant for every enterprise to retain and hire qualified employees weather regulating
its business at small or large scale (Southern, 2011). In this context, there is need of
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increment of employees compensation in Thirdway interiors to reduce the problem of
employee turnover and providing motivation to employee at workplace. Qualified will
increase the competency of firm by developing new and innovative design of interiors for
their clients.
 Utilizing different channels of marketing: For the expansion of business, it is essential
for every small business enterprise to develop effective marketing policies and also use
different channels to promote the business operations (Yallapragada and Bhuiyan, 2011).
Presently, there is also a requirement of new and effective channels of promotion to
increase the marketing Thirways. By using ways like digital advertisement, online
marketing, E-commerce websites they will be able to provide information about there
services to the people in other countries and expand their business operations.
 Competitive pricing policy: It is also an essential component of business that defines the
capabilities of firm to sustain in competitive market. Comparative analysis has provided a
complete understanding that the prices charged by Thirways interiors are higher as
compared to its rival firms which provides an impact on their annual turnover and clients
in home country. Thus, for the survival of business operations they have to develop new
strategies and provides services at competitive prices.
 Implementation of technological changes:Continuous growth in technology has
provided various opportunities to small business enterprises to develop new products and
services by doing effective research on internet (Gorgievski, Ascalon and Stephan, 2011).
In present scenario, With the appropriate use of technology and software they will be able
to design more effective and attractive interiors designs for their clients and increase its
competencies as compared its competitors.
Thus, these are effective measures which will helps the firms to overcome its present weaknesses
and achieve a sustainable growth in market.
2.2 Directions to maintain the present market performance.
By making comparison between the Third way and its competitors, it has been recognised
that firm has achieved a continuous growth in UK and continuously expanding its business
operations within the country. They have also attainable of high revenue of £35,000 in previous
financial years by satisfying there target customers in UK (Smallbone and et.al., 2010). In this
context, in order to maintain the current market performance they have to apply various
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strategies in their products and services. They also have to formulate effective plans to increase
their competencies so that they will influence the business class people of other countries. There
are some key important ways through which they can sustain their performance are as follows:
 Research and development: In competitive scenario, various business face challenges
and apply various efforts to sustain their brand in market (Small Business Enterprises,
2017). Through effective research practices, they will be able to find out the loop holes
and needs of improvements in their services. In this context, management of third way
should also accomplish effective research to identify new and appropriate changes they
should make in their services to satisfy changing needs of there customers and will be
able to maintain their present performance in market.
 Innovation:It is considered as most effective dimension for every firm to achieve success
in their business and developing strong market position in industry. It also considered as
application new ideas and techniques to make increase the capabilities of existing
products and services of firms (Teece, 2010). In this context, with the effective research
and development practices they will be able identify the new and innovative ideas to
implement in making design of interiors. Along with this, they are also to identify the
methods which are used by other international firms in same sector to make their design
more innovative as compared to rivals. By making effective change they will increase the
uniqueness of their current designs and will be able to develop new designs to influence
their clients.
 Competitors analysis: In the market, there are large number of competitors that always
aims to capture the market and attracting the clients of Thirway. By analysing the design
and prices of products and services of cited firm they will be able to implement changes
in their own products and services and influencing clients to increase the profitability. It
is considered as major challenge for firm in expansion of business and maintaining
current financial performance in market. To maintain growth, Firm should analyse the
policies, strategies and plans which are implemented by rivals to influence the people and
develop effective plans to differentiate there designs from competitors and increasing its
current financial positions.
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2.3 Evaluation of new areas for expansion of business operations.
In order to raise profitability, the firms has to establish its new business units or
operations in different areas of market. In this context, there are some key market areas are
recognised in which Thirdway will be able to expand its business operations such as:
 Global market: It is recognised as most beneficial and important opportunities for small
business enterprise to make their brand more popular among the people of different
countries. It is also observed that the expansion of business in global market requires
wide research practices identifying factors which can impact the operations of business (
Barber, Metcalfe and Porteous, 2016). In present scenario, Thirdway has an opportunity
to expand its business at global by make more investments on research and identify the
needs of clients at international level. It will also analyse the demand of changes to be in
made in services to influence the people of different countries. It will also be recognised
the influence of factors on business operations such as customers, competitors,
government and suppliers etc. By applying effective resources they will develop business
opportunities and resolve all such as challenges in market.
 Geographical expansion: For SMEs, it is suitable to find opportunities for expansion of
business in different geographical areas of their parent country. It will considered as
appropriate for them as it requires fewer investments and firms has to face fewer
challenges in expansion of business. In present scenario, there are some geographical
areas British countries in which Thirdways has an opportunity to expand its business like
Wales and Northern Ireland etc. In these countries, it will be able to find out its client's
which has requirements of new and innovative interiors to make their offices and home
more attractive.
 Merger and acquisition: It is also a new and unique opportunities availabile for small
business enterprises to expand their business operations by acquiring other business
enterprises operating in same sector (Forsman, 2011). Through acquisition, firm will also
be able to take over the clients of other company and it will also be an effective measure
for company increase their performance in market. In this context, it is recognised that
the financial position of Thirdway is appropriate therefore, they have opportunity make
collaboration with other and expand its business operations in other geographical areas of
country.
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TASK 3
3.1 Developing an evaluation of current business policies and goals.
For the evaluation of all other business areas and aspects which are need to be change, it
is considered as important to recognise the current and specific objectives which are developed
by firms so that the employees will be analyse the direction to achieve success in business
operations. In this context, there are various objectives and plans that developed by Thirdway for
regulation of business such as:
Business objectives 1: To promote designs and services
One of the most significant objective of firm is to achieve rapid increase in its turnover
by promoting its designs and services among the between the people of different country (Bridge
and O'Neill, 2012). In this context, Thirway is most successful small business firms that creates
various design of interiors for the offices and develop comfortable as well as attractive
environment for clients. For the expansion of business operations there main motive is to raise
the creative designs so that they can provide a luxurious and attractive physical evidence to their
clients and charge effective prices for their products. In order to accomplish this objective, they
will to hire new employees which helps them in getting an edge over its competitors and also
provide competitive advantage in market.
Business objective 2: To reduce the labour turnover:
Market researches of firm has clearly defined that there firms a most important objective
of retaining qualified employees at workplace. There is a great contribution of employee in
8
Illustration 2: ACES model

organization towards designing new and effective designs of making so that the firms will be
able to influence new clients and customers in market. In this context, for the small business
enterprises it is considered as significant to retain sufficient number of expertise in order to
provide competition to other and accomplish the demand of changes in products and services by
generating necessary innovative techniques. Along with this, Thirway will have to provide
various monetary and non monetary benefits to its employees and increase there motivation
towards the work. They will have to resolve the problems which are faced by employees at
workplace and develop appropriate solution that satisfy the employees at workplace.
Business objective 3 To attain more investments:
International market, there is requirement of huge financial to expand business operations
across the countries. In this scenario, as a small business enterprise in UK management of
Thirdway have focus towards to achieve sufficient among of funds from various sources. Like
financial institutions, investors etc. From research, it is identified that government is also focused
towards providing growth to small firms and provided a financial support of £11.4 billion every
year. Therefore, it is effective plan of firm to achieve the funds and increase its business
operations.
Business objective 4 To sustain existing clients.
One of main objective of business firms is to retain the existing customers of business. It
was described earlier that demand of customers changes constantly with changes in time.
Therefore, Thirdway interior has the main objective to retain its customers by developing a
positive relationship and offering products as per the taste and preference at appropriate prices.
3.2 Revision of plan to make effective changes.
For the smooth functioning of organization, there are some significant changes are
identified that the cited firm should adapt to expand its business operations within the industry
and accomplish the predefined objectives such as:
 Changing designs and quality of services: In modern business world, the taste
regarding product quality and services is changing continuously (Blackburn, Hart and
Wainwright, 2013). Thus, to the meet the changing environment the business firms
required to develop and effective plan. In this scenario, the cited firm has also developed
a plan in which they will analyse the needs of consumers and introducing designs of
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interiors as well services in market. By doing effective research they will identify various
other designs and interiors that popular in different countries and served by other
enterprises.
 Providing training to employee: In order to make the implement changes in the
organization there is a significant requirement of firm to provide training to its employees
and develop their quality of performance at workplace. In this scenario, the organization
has developed an objective of improving the quality of employee to generate new and
innovative ideas in business. By providing training of various aspects to workers
regarding the application of new technologies in work, they will increase there skills of
employee to give the best performance at workplace and make effective designs to
influence customers.
 Growth in turnover: In order to achieve the growth in turnover, managers of firm has to
make various effective strategies and analyse the strategies of its competitors to make
effective changes in business. In this scenario, for the expansion of turnover, the third
way has to provide quality services to its customers at best possible prices that may be
accomplished with the help of implementation of appropriate pricing strategy at
workplace.
 Targeting new market segment: In this scenario, it has been recognised that firm has
targeted the market premium as well rich class people that posses a need of luxurious and
effective interior in their offices as home and able to high prices for services. But rise
competition in business has provided a challenge for ThirdWay to regulate its business
operations in industry. It is also analysed that income level of consumers has also
changed the preference of customers towards the services. Therefore, for the expansion of
business activities ThirdWay has to target new market segment and develops the best
products and services for them at effective prices.
3.3 Development of action plan
Business plan is considered as a document which the determines the ever changing
strategies of company to regulate business its business operations in market. It also provides an
analysis of firms various aspects such as business, objectives, policies, target market and realistic
forecast of finance resources (Storey, 2016). It is also recognised as format which is developed
through market research and formatting of business practices. In this scenario, as business
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