Unicorn Grocery: Comprehensive Business Analysis and Recommendations

This report provides a comprehensive analysis of Unicorn Grocery, a small business enterprise operating in the UK. It begins with an introduction to small business enterprises and then delves into a detailed examination of Unicorn Grocery, including its vision, mission, key activities, strengths, and weaknesses. The report then presents a comparative performance analysis between Unicorn Grocery and Nisa, highlighting their sales, net profit, and net profit ratios over a five-year period. Following this, the report proposes solutions to overcome the identified weaknesses, such as seeking government assistance, implementing proper planning, and controlling activities. It also suggests ways to maintain the company's existing performance, including customer feedback, employee involvement, and setting quality benchmarks. Furthermore, the report explores new areas for business expansion using the Ansoff matrix, focusing on market penetration, market development, product development, and diversification strategies. The report concludes with an assessment of the existing business objectives and plans, including an evaluation of the company's processes and performance indicators, providing recommendations for improvement and future growth.

Small Business
enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK-1 ...........................................................................................................................................1
1.1 The strength and weaknesses of Unicorn company..............................................................1
1.2 The comparative measure of performance ...........................................................................2
TASK-2............................................................................................................................................3
2.1 The solution to overcome weaknesses of the company........................................................3
2.2 The ways to maintain existing performance ........................................................................3
2.3 The new areas in the business...............................................................................................4
TASK-3............................................................................................................................................5
3.1 Assessment of existing business objective and plans...........................................................5
3.2 Business plan to incorporate changes...................................................................................6
3.3 Action plan to implement changes........................................................................................8
TASK-4 ...........................................................................................................................................8
4.1 Impact of the proposed changes on the business..................................................................8
4.2 The changes will be manges in the business.........................................................................9
4.3 Monitoring improvements in the business performance ......................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Small- business enterprise provide employment to a few workers and the volume of sales
is also not so high. Such type of enterprises are owned privately .By industry or country the legal
definition of small- enterprise can vary. In the small enterprise the number of employees that are
working are less than 250 (Chell,Nicolopoulou and Karata?-Özkan, 2010.).
Unicorn is a cooperative grocery store that is situated in UK. The fresh, dried and
processed food and drinks and the general grocery items for household and body care are sold by
this company. This report will present the strength and weaknesses of unicorn company. Using
comparative measure of performance analysis will be conducted in this report. This report will
also provide the solution in order to overcome the weakness of the company. The ways in which
the existing performance can be maintained will also be proved in this report. The assessment of
existing business objective will also be produced. This report will also plan how the change will
be managed in the business.
TASK-1
1.1 The strength and weaknesses of Unicorn company
Organization name - Unicorn grocery
Vision- “ To produce a high value business for the customers they serve and
in the communities which they operate”
Mission -  The vision of the company is to expand its business across
globe
 To develop more innovative ,modern ideas
 To inspire ,earn trust from their customers
Key people - The member and owner Roger Sawtell mainly control the bushiness.
Owner structure - Privately owned company in UK
History - On September 21,1996 the shop opened from an original working
group of two people. From sources such as industrial common
ownership finance Ltd. the financial support and advise came.
1

Key activities - The unpacked organic food fruit and vegetables ,prepared food are
sold by the company (CHUANG and Liao, 2010.).
Location - England, Manchester
Strength -  The major strength of this company is that strong customer-
base is there as it is due to location where it is situated.
 The staff and workers that are working are experiences and
the right treatment to guests is given by them (European
Commission, 2016.).
Weaknesses-  The structure of the organization is not structured and due to
there is always confusion among staffs.
 The work process is hampered due to sudden arrivals of the
guest. There is a lack of planning and management.
 The new services in this organization is not being introduced
as there is a shortage of funds (Jones and Robinson., 2012.).
1.2 The comparative measure of performance
Comparison of performance between unicorn and Nisa
Unicorn Nisa
Year Sales Net profit Net profit ratio Year Sales Net profit
Net profit
ratio
2011 2000 125 6.25 2011 1500 75 5
2012 1800 110 6.1111111111 2012 1400 75 5.3571428571
2013 1600 100 6.25 2013 1200 70 5.8333333333
2014 1900 120 6.3157894737 2014 1800 110 6.1111111111
2015 1500 100 6.6666666667 2015 1200 70 5.8333333333
In this above table ,a comparison of performance between two companies have been
done. The two companies that have been taken is Unicorn and Nisa. As one can see that the
performance of Unicorn in year 2011,2012,2013,2014 and in 2015 is better in comparison with
Nisa. The net profit ratios of this company is higher than the other company (Wood and Creed,
2

2012). In the year 2011 the net profit ratio of unicorn was 6.25 whereas the net profit ratio of
nisa was 5% .In the year 2012, the net profit ratio of unicorn was 6.25% whereas the net profit
ratio of nisa was 5.37 % .In the year 2013 , the net profit ratio of unicorn was 6.25% whereas the
net profit ratio of is was 5.83%.In the year 2014, the net profit ratio of unicorn was 6.31%
whereas the net profit ratio of Nisa was 6.11 %.In the year 2015, the net profit ratio was 6.67%
wheres the net profit ratio of Nisa was 5.83%.Thus it can be concluded that in all these the profit
that is gained by company unicorn is more in comparison with other company. But there have
been ups and downs in the performance of unicorn company .In the year 2012 the profit that was
earned was less in comparison in the year 2011 (Trkman, 2010).
TASK-2
2.1 The solution to overcome weaknesses of the company.
In order to cope up with the weaknesses that is faced by company they can take these
measures-:
Assistance form government – The government is ever ready to provide their support for small
business form. In the form of loan and advisory services the government can offer loan. There is
a low interest rate in the enterprise guarantee scheme. By the owner of business it can be
considered in order to invests in the new services. This organization can also use regional
funding scheme as it is a small business enterprise. The scope of services can also be enhanced
by the proper investment and the growth of business will be influenced by it.,
Proper planning – The plan need to be created by the owner of business where all day to day
activities will be recorded in proactive manner. And before the execution of their performance it
will be shared with all the staff .The misunderstanding that is taking lace within staff will be
reduced from this and this will also not invite any extra cost. All the misunderstanding between
staff regarding job responsibility and approaches will be reduced from this .
Control over activities – In order to detect the deficiency in the delivery of services all the
activities of staff need to be measured properly. For the improvements the feedback's should be
measured properly (de Menezes, Wood and Gelade, 2010.).
2.2 The ways to maintain existing performance
The owner of the business can conduct research in order to gain insight knowledge of
expectation of the customers. The customers that are visiting this grocery shops need to be taken
3

feedback to implement changes in this shop that would be beneficial for the growth of business.
Regarding any decisions that is taking in the company all the employees should be encouraged to
give their feedback or views regrading it. The owner mainly take decision in small organization
and also them embers of the company follow the decision that is made by owner. In order to
encourage the employees participate leadership style is needed .This will also ensure productive
performance (Huczynski and Buchanan, 2010. ). In order to make the staff aware about the target
the benchmark of quality need to be set. If there is any deficiency that is been found in achieving
the target need to be diagnose immediately. The employees will understand the role in the
organization by forming the definite structure and the job responsibilities need to be prepared for
the staff. With the performance management tools such as Performance appraisal all the
employees should be monitored and evaluated (Harzing and Pinnington, 2010). The company
can provide rewards to the employees that are working in the company so that they will feel
motivated and encouraged and this will also enhance employees productivity.
2.3 The new areas in the business
In order to expand the operation of the Unicorn grocery ansoff matrix can be applied. The
four strategies will be reflected in context of expansion of growth.
They are as follows-:
Market penetration – In order to maximize the current sales this strategy is applied. The new
services such as online booking of grocer item,in order to attract more number of customers the
company can have some type discounts etc can be introduced by the owner of the company. In
order to grab more number of customers towards the company the sudden price reduction can be
undertaken.
Market development – The organization can open a new site in order to increase its business
turnover. As for this small organization it is not feasible as the fund and huge investment is an
issue. The investment that is needed for new site is huge which is not these with the company
right now.
4

Product development – The product portfolio can be modified under this strategy .This will
increase the level of interests and also the opportunities of business will be maximized with this.
In this of free WiFi services , change in the interior, new products etc this can be provided at this
company to the customers..The cost will be increased with this but the opportunities of business
will also grow and flourish.
Diversification – In order to set off the profit or downfall in different division of the organization
this strategy is generally undertaken. The current situation of this business is that the diverse
business can't be opened by it as huge investment is needed for that (Zott and Amit, 2012. ).
TASK-3
3.1 Assessment of existing business objective and plans
Objective of business – The main objective of unicorn company is to grab more customers by
providing all sort of grocery items and also to provide them with hygienic atmosphere while
customer purchase these items. The goal of business is to in case the margin of profit and in the
city of UK to establish a reputed grocery shop. In order to reach a target this will objective will
set a benchmark for the employees and staff that are working in this company. In order to reach
the target the negative point is the lack in proper guidance and assistance. In existing objective of
business the objective that should include the ways to reach the objective is not there. Th ways
to achieve the objective is missing in this objective of the company.
Process – In order to achieve the goal of the organization the process is the ultimate approach.
This will help the company to achieve its goals. The process of unicorn company is not defined
clearly. Among the members of staff this will create doubts and misunderstandings. If at this
grocery shop there is more crowd than process is disrupted .This means that there is lack of
flexibility in the process in their company which is not positive side. The positive side of this
company is that the reporting authority which is very clear. The supervisor of the front line staff
is done by the supervisor and by the two mangers of the company the supervisor is controlled.
A sound coordination among staff is maintained and the communication is also strong due to
this.
Indicators of performance-. By the process of observation this company control's the
performance of employees. There is a direct face to face approach which is positive side of the
observation .The true picture of the level of performance will be reflected through this. There can
be not proper judgements this is one negative side .If the manager is not having enough time then
5

they will not be able to mange the individuals effectively. The company can start performance
appraisal where from the colleagues the staff can be rated and a true image of performance can
be revealed form seniors.
3.2 Business plan to incorporate changes
The unicorn company can make use of Mckinsey 7 s model to overcome the weakness of
existing business plan. This models will exactly define the structure and objective effectively for
this small company.
Strategy – In order to enhance both satisfaction of customers and increase the profitability the
company need to take to consideration the marketing, operation , employees control and
activities of finance. This will also enhance the scope of their business .In order to reach to more
number of customer the strategy for marketing can be made where the company can sell make
use of online promotional tools. In order to take care of day to day activities the company can
hire one employee .In the strategy that is made them employees need to be encouraged and their
performance also need to be controlled. The level of performance can be enhanced by giving
them proper training and orientation.
Structure – There is need to define the hierarchy of this company and to all the staff that is
working this structure of the company need to be communicated .This will define the
communication process and the flow of information in the company. In order to make a sound
flow of information the centralized decision-making process must be followed. In the
organization the importance need to be given to employees so that they can feel that they are an
essential asset of the company. This will also increase their level of motivation and their
involvement in the work will also be more.
System – In the company this will provide the essence of smooth operation in daily activities.
Before commencing their day the staff need to report to their supervisor .This type of structured
system need to be followed in the company. The flow in the productivity will be there if the
orientation session will be considered by the manager. The competency level of staff will also be
improved from this.
Skills- The training need to be given to staff in order to improve their skills and there is need to
plan the development. The difference in the organization can be made if the performance of
employees is up to mark. The quality of services will also increase from this,
6

Style- For this company the need is there is to change the autocratic leadership style. There is a
need to involve all the participants in the process of decision-making .So, fort his the
participative leadership can be followed.
7
Illustration 1: McKinsey's model
(Source:McKinsey's 7 S model
, 2017)

3.3 Action plan to implement changes
The level of performance of the organization can be strengthen by changing the structure
and the system among the members of staff this will bring confusion and misunderstandings. The
disturbance in the business can be crested due to this. Only a change management can effective
bring a change in the organization .In this change management all the stakeholders need to be
considered. The environment of business is dynamic and there in order to cope up with this
change is needed .As this company is a small organization so Kurt Lwin's theory of change can
be applied to it bring a change in the company. This will help the company to restrict the
resistance factors.
Unfreeze – In this the owner of the business can showcase the inefficiency in the exiting process
and plans of the business. If the changes are applied the cope of business will increase. In order
to make the employees understand about the importance of change these activities need to
figured out and shattered with employees. There are chances that in this stage several questions
can be arise from the employees and the need to be answered tactfully.
Change – The change will be adopted in this stage and in the company the staff will follow the
new process. The staff that are working in the company will try to give their best fort he growth
of business. In this stage the positive belief of the employees will also grow .With the help of
new process they will observe the benefits of the changes and this will encourage them
accordingly.
Refreeze – In this theory this is the final stage .In the process of work the change will reflect the
benefits. In the level of misunderstanding the reduction will be observed and from the staff the
desired level of productivity will be achieved .
TASK-4
4.1 Impact of the proposed changes on the business
In order to achieve the competitive advantage changes are imperative for the
organization. If thee is the flexibility in the structure and functions of organization then only the
profit maximization goal of organization can be achieved. The disadvantages of this company is
that it is not bale to handle large number of crowd at its company and in the long run this will
affect the business. In the areas such as structure,management of staff , proper handling of staff
the changes have been planned. By considering two side the impact can be analyzed
8

Positive impact – The information flow will be defined by the change in the structure and the
level of contradiction will be enhanced from this. About authority of reporting the employees
will become ware and regrading their responsible they will get preliminary information. The
level of motivation among employees will be enhanced from participate style. And this will not
also increase the cost for the organization. The true productivity of the business will also be
reflected by monitoring the performance of employees and for the improvements
the ,management can share the feedback with the staff (Kotlar, 2010. ).
Negative impact – Related to change there are some problems .These are that coordination and
support form all the staff is needed to bring a change in the organization. There is need that equal
contribution should be there from staff and also there will hesitance from the staff to follow
changes process and system. Among higher authority this hesitance can create conflict.
4.2 The changes will be manges in the business
In the process of decision -making the participation among staff need to be active. For the
growth of businesses this will help the owner to get some valuable feedback .There is a need to
give some adequate training to staff to make them are about their duties correctly. The bonding
between staffs and the mangers of the company need to be strong s the will enhance the level of
coordination in the company. The kotter's eight step model can be sued to bring the propose
change. The urgency regarding the processed change can be made in the fourth phase. In the
next phase, towards the change the employees will lead and there is need of some powerful
leadership skills form managers. In the next step, for the change there is need to design a vision.
In the next step, the emphasis will be their towards the communication of that vision. In the nets
step the in order to bring a change the barriers will be addressed. In the next step to bring a
change a short-term goal will be made and in the last step the positive and negative side of the
change will be addressed (Bos?Brouwers, 2010).
4.3 Monitoring improvements in the business performance
In order to track the progress and to implement the improvements if required there is
need to monitor improvements for the next 2 years. To align activities in the business balanced
scorecard can be used .This will also enhance the communication and the current level of
performance (Burns, 2010. ). In order to measure the financial performance the business turnover
will be measures .In order to measure the satisfaction among customers there feedback will be
taken.
9

CONCLUSION
Thus summing up the above report it can be concluded that small enterprises in UK such
as unicorn weakness is that structure is not proper and the employees are not motivated. In order
to enhance the level of profitability and growth the weakness of organization is identified. The
change strategy is implemented in order to bring a change in the organization.
10

REFERENCES
Books and journals
Bos?Brouwers, H.E.J., 2010. Corporate sustainability and innovation in SMEs: evidence of
themes and activities in practice. Business Strategy and the Environment, 19(7), pp.417-435.
Burns, P., 2010. Entrepreneurship and Small Business: Start-up. Growth and Maturity. Palgrave
Macmillan.
Chell, E., Nicolopoulou, K. and Karata?-Özkan, M., 2010. Social entrepreneurship and
enterprise: International and innovation perspectives.
CHUANG, C.H. and Liao, H.U.I., 2010. Strategic human resource management in service
context: Taking care of business by taking care of employees and customers. Personnel
Psychology, 63(1), pp.153-196.
de Menezes, L.M., Wood, S. and Gelade, G., 2010. The integration of human resource and
operation management practices and its link with performance: A longitudinal latent class study.
Journal of Operations Management, 28(6), pp.455-471.
Harzing, A.W. and Pinnington, A. eds., 2010. International human resource management. Sage.
Huczynski, A. and Buchanan, D.A., 2010. Organizational behaviour. Financial Times Prentice
Hall.
Jones., P and Robinson., P. 2012. Operations management. Oxford University Press.
Kotlar., P. , 2010. Principles of marketing: A south Asian perspective. Pearson Education.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management, 30(2), pp.125-134.
Wood, J. and Creed, A., 2012. Organisational behaviour: Core concepts and applications. John
Wiley & Sons Ltd.
Zott, C. and Amit, R., 2012. Business model design: an activity system perspective. Long range
planning, 43(2), pp.216-226.
Online
McKinsey's 7 S model. 2017. [Online] Available through:
<http://www.valuebasedmanagement.net/methods_7s.html>.
European Commission. 2016. What is an SME? [Online] Available:
<http://ec.europa.eu/growth/smes/business-friendly-environment/sme-definition_en/>
11