Unicorn Grocery: Business Plan and Strategic Recommendations

This report provides a comprehensive analysis of Unicorn Grocery, a small business enterprise specializing in organic food products. It begins with an introduction to small and medium-sized enterprises (SMEs) and the specific context of Unicorn Grocery, a co-operative grocery store in Manchester, England. The report then delves into Task 1, which includes defining SMART objectives, key performance indicators (KPIs), and an assessment of the company's strengths and weaknesses, such as its compelling retail presence and national awards, but also its lack of experience and inventory management issues. Task 2 offers recommendations to overcome these weaknesses, including addressing poor business locations, insufficient capital, and poor inventory management, and proposes strategies to maintain and strengthen existing performance through improved communication, training, and employee empowerment. The report also explores potential expansion strategies, including international expansion and product diversification, as outlined in Task 3. Finally, Task 4 examines the impact of proposed changes on the company's operations and how to monitor performance over the next two years, concluding with an overview of the company's objectives and plans for sustainable growth and development. The report provides a detailed examination of the company's operations, objectives, and strategies for future success.

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Smart objectives, key performance measures, strengths and weaknesses of company....1
1.2 Methods of performance measurement and indicators of measuring performance........4
TASK 2............................................................................................................................................5
2.1 Recommendation to overcome the weaknesses...............................................................5
2.2 Strategies to maintain and strengthen existing performance............................................5
2.3 Expansion of small business enterprise............................................................................7
TASK 3............................................................................................................................................7
3.1 Objectives and plans of small business enterprise...........................................................7
3.2 Revised business plan to incorporate changes..................................................................8
3.3 Action plan to implement the changes.............................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of changes on the operations of company..........................................................10
4.2 Management of proposed changes in organisation........................................................11
4.3 Monitor performance of company over the next two years..........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Small and medium sized firms are those entities which run their business independently.
These firms employed less than 50 employees and has limited revenues as well. These entities
include a couple of employees. These are mostly private organisations, as tiny firms are operated
by single ownership and generates a specific level of income. SME provides various goods and
services to large corporations (Small and Mid size Business (SMB). 2017). These enterprises
generally called as ''small'' so that they can take government assistance for their growth and
development. This project report is based on ''Unicorn Grocery'' which is co-operative grocery
mercantile establishment, situated in Manchester, England. It sales various organic products like
fresh and dried food/drinks. It has approx. 21 acres of urbanized flourishing land. There have
been many approaches to improve the performance and operations of this small business
enterprise.. Along with this, various strengths and weaknesses of this company has been
explained to overcome its market challenges and to enhance its growth in workplace.
TASK 1
1.1 Smart objectives, key performance measures, strengths and weaknesses of company.
Every firm has its own objectives and it works to accomplish these goals. In other words,
every small entity needs a reason to exist in market so it it can achieve its goal. Some of the
objectives of Unicorn Grocery is given below:
 Profit maximisation: This is the main target of every small business enterprise to
achieve high success in term of money. Unicorn consider that it can grow its firm
only by enhancing sales volume.
 Employee satisfaction: To increase employees' contribution, it is duty of
company to build morale within the workers, so that they can give lot of efforts to
increase organisational performance.
 Organisational objective: This is a core objective of Unicorn Grocery to produce
high quality products and give value to its customers (Burns, 2010).
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Illustration 1: Key performance indicators
Source: ((Battisti and Perry, 2011))
Key performance indicators are known as elements on which performance of firms is
measured, some KPI for company are as following
Graphical rating method: This technique of performance appraisal is very
popular, In this management give rank to staff members on the bases of their previous
performances.
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Illustration 2: Graphical rating method
Source: (Schape and et. al., 2014)
Forced ranking: In this method evaluators evaluate worker performance by
giving him rank on the basis of comparison of his colleagues.
Management by objectives: In this manager firstly determines the objectives of
organisation and then appraise the capabilities of employees to attain company's goals.
Company profile:
Unicorn grocery is a co-operative grocery store which offer a big range of organic foods
to its customer. The store was established in 1996 by working group of two people with the
financial support and advice from Industrial common ownership finance limited and also take
some loan from Triodos Bank. In current time, business occupies a 10,000 square foot site and
has more than 65 co-op member excluding casual staff. The company turnover is around £7
million. The company is known for their Ent. friendly body and household product as well as
their organic fruits and vegetable.
There are some strengths and weaknesses of unicorn Grocery which affects growth of
this company. It is a compelling retail company which delivers quality goods to its customers,
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and it also won national award of 'Best local food retailer'. But it also has some weaknesses like
lack of experience, poor business locations, poor credit arrangements, unavailability of inventory
management and unexpected growth.
1.2 Methods of performance measurement and indicators of measuring performance.
Execution of employees can be determined by many comparative methods. These
techniques of performance appraisal help organisation to understand the current position of its
workers, which are discussed below:
 Essay method: It is most simple method of appraisal. In this, appraiser write down
the different characteristics, skills, strengths and weaknesses of worker to improve
them in appropriate manner.
 Paired comparison: In this technique performance of employee is compared by
the performance of another employee (Battisti and Perry, 2011). It is a very easy
method of action measurement.
 360-degree appraisal: This is modern technique among various assessment
methods. In this performance of employee is assessed by managers, peers and
employers in confidential manner.
There are also some indicators of measuring organisational performance which are
following as under:
Financial profits: Unicorn Grocery use various techniques of performance
appraisal to maximise its financial position. This company can have strong image in market,
because of its sales volume.
Market share: Execution measurement also help organisation in increasing its
market share. With high performed human resources, a firm can achieve higher success.
Customer satisfaction: If a company is giving high quality products to its
customer then it will give more gratification to its consumers.
Employee motivation: Performance measurement methods also build morale
within the employee which force him to contribute his efforts towards organisational susses.
Operations quality: performance measure creates a high standard business
programs which leads to company's growth and development.
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Cost: If the execution of employees and organisation is well performed then it
will help in cost minimisation, because with the help of performance appraisal each and every
activity of business operates in an effective manner, which reduce the wastage.
TASK 2
2.1 Recommendation to overcome the weaknesses.
There have been many failures which Unicorn Grocery has faced in past years, it can get
rid from its imperfections by following points, which are discussed below:
 Lack of experience: It is not necessary that everyone have business background,
people with innovative ideas and accurate programmes can achieve organisational
goals.
 Poor business location: Enterprise can overcome this weakness by targeting their
customers, with the help of this, firm can discover its foremost marketplace
(Schape and et. al., 2014).
 Insufficient capital: Every company should have the estimation of its working
capital so that future decisions can be take. It can search for achievable sources.
 Poor credit arrangements: Appropriate business programmes helps the company
in arranging credit.
 Unexpected growth: Company should do preplanning before the execution of
business activities, because there can positive as well as negative happenings in
future so, overcome those negative happenings, a company should be prepared in
advance.
 Poor inventory management: To manage the shares there should be modified and
high-fidelity records.
Hence, these are some weak points of small business enterprise and also some helpful
suggestions to get rid from given imperfections.
2.2 Strategies to maintain and strengthen existing performance.
To accomplish long term goals and objectives, company acquire many schemes.
Different strategies help a business to compete with its competitors. Along with this, various plan
of actions differentiates an organisation from other enterprises. There have been many innovative
strategies to develop small business enterprises and their performance, which are given below;
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 Communication: Proper abstraction plays an important role in every organisation
to improve the performance of company and its employees (Rae, 2010). Lack of
communication can become a huge disadvantage for company. Required
information cannot be exchanged, if the workers of firm are not communicating
with each other. Communication does not only include employees but customer
also. Unicorn Grocery suffer from better location and distribution problem
leading to lack of communication if company is able to find better location it will
not only increase its visibility but also improve its distribution, as well as
customer base (Storey, 2016).
 Training and development: To increase the efficiency and effectiveness of
organisation it is required to provide training and development programs to
employees, so that they can enhance their actions, to attain company's goals.
Generally trained and developed workers deliver high results. Having efficient
employees can compensate company lack of experience. Having competent
employee also help company in improving their management. To reduce the
management problem, they can also hire from outside like hiring a consultant.
 Provide proper equipment: Without correct instruments, no activity of firm can be
operating. So, for effective functioning of workers it it necessary to provide them
effective tools and equipment’s so that they can perform towards the aim of
enterprise.
 Empower employees: If a company wants high contribution of its employees so it
should give motivation to its workers, because motivated employees give lot of
efforts to achieve goals for themselves as well as for organisation.
 Promotion: Promotional system influence workers to work hard. So that, they can
reach the position what they have want.
 Provide incentives: Most of employee needs extra remuneration in exchange of
their extra efforts. So providing bonus can motivate employees to work according
the need of company.
Furthermore, these are the way to increase existing performance of company. In simple
words performance of company can be maintained and strengthen by those strategies which can
help them reduce their weakness (Schaper and et. al, 2014).
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With the help of contingency theory of performance measurement, it is determined that
there are many schemes of performance appraisal which help a business in accomplishment of
desired results.
2.3 Expansion of small business enterprise.
Companies with little size is known as small business enterprise. According to Ansoff's
matrix and marketing theory expansion of Unicorn Grocery can be done in two ways which are
following as under:
 Global expansion: This company has great future if it expands its business
internationally. It has annual turnover of approx. £7 million. Owner of this
company has stated that they will enhance their international sales by approx.
25pc. They have already opened around 10 new stores in Saudi Arabia. This
company is growing very fast. With the positive feedback of their existing
customers they are looking for their business expansion (Malhotra and Temponi,
2010). To see the High growth of this company, its manager has revealed that
they are searching for companies to acquire.
 Diversification: According to marketing theory it is find that growing company
should diversify the range of their products and services so that it can attain
higher results. Variegation is a very essential strategy of every small enterprise,
which increase growth of firm. It includes importing/exporting goods and sale,
antonymous products and services. It is very useful in profit maximisation and
cost minimisation. Along with this, it gives strong position in various market
place. Unicorn Grocery is also looking for diversify its products and services.
Therefore, these are the two expansions of this company, which can increase the growth
and market share of this firm. But International expansion and variegation would be a tough
task for Unicorn Grocery because it needs high volume of finance as well as workers.
TASK 3
3.1 Objectives and plans of small business enterprise.
The aim of every company is to attain its objectives and goals, which determine the
character of organisation. The goals of Unicorn Grocery are given below:
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 Profitability: This is the core objective of any organisation. Every company
operate its business activities to maximise its finance (jones and Iredale, 2010).
Profit maximisation can be done, by giving central attention to manufacturing and
operations management.
 Productivity: Various training and development programs can enhance
productiveness of organisation, because well trained employees can easily achieve
desired results.
 Customer satisfaction: It is a main objective of Unicorn Grocery, because it is a
customer oriented firm. In simple words, it gives huge attention to the satisfaction
of its consumers.
 Employee retention: It is a process of holding current employees within firm. It
plays an important role in every enterprise because lack of employees results in
less productivity and cost maximisation.
 Marketing: For the growth and development of company managers should involve
well deigned marketing strategies which will help firm in achieving desired goals.
Proper merchandising attracts customers to buy goods and services.
There are also some marketing plans of Unicorn Grocery which will give bright future to
this company and those are following as under:
1. Focus on customer’s satisfaction.
2. Take care of existing customers
3. Use information based decisions making process
4. Give importance to women customers.
Business objectives gives various advantages to business like planning, management,
staffing and measurement (Herbane, 2010).
3.2 Revised business plan to incorporate changes.
Growing business plan plays vital role in every small business enterprise, it involves
various aspects like future vision, clear goals, attract employees and manage company. In current
scenario Unicorn Grocery is mostly focusing on customer satisfaction, because in recent times,
consumers have become more conscious and demanding about the quality of product. Therefore,
to give customer satisfaction organisations are changing their business plans, so that they can
satisfy their customer which automatically increase their sales volume (Gronum, Verreynne and
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Kastelle, 2012). The environment of business is becoming more impulsive day by day, and to
adapt the needs of current market every enterprise should change their business plan. Therefore,
Unicorn Grocery is also becoming dynamic company by changing its strategies and plans to
renovate its goods and services. People of present scenario are more health conscious. According
to their new plans, this firm is giving its core attention to hygienic foods, because it produces,
products for great health of people. Thus, to fulfil the demands of its customer, company is
manufacturing healthy products. Along with this, Unicorn Grocery is looking for women
ambassadors to attract women customers. So that, they can cover its local and international
marketplace.
3.3 Action plan to implement the changes.
It is hard for every organisation to accommodate new environmental changes. Accepting
new changes can have positive as well negative impact on the organisation. In present times,
need and demand of consumers are changing day by day (Gill, and Biger, 2012). So, to execute
the needs of customers, every company should change its Product designs and services
(Gorgievski, Ascalon and Stephan, 2011). To overcome the new changes Unicorn Grocery
should apply some action plans to satisfied its customers and to enhance its profit. Some of the
action plans are as under:
 Maintain healthy relationships with its suppliers: Unicorn Grocery can improve
the efficiency and effectiveness of organisation by building healthy relations with
its suppliers. Suppliers relationship can support company in getting quality
material on time and minimizing the shortage of material type of issues.
 Target marketCompany can also grow its business by focusing on its local
community, because local customer provides more profit then others.
 Re-innovate products so everyone can use them: This firm is giving importance to
changing taste of people so that all generations will like the taste of its products.
(Fassin, Van Rossem and Buelens, 2011).
 Evaluating current process: Assess how company is doing help organisation to
know its strength and weakness, it helps company to identify its weak point and
make amends to change it.
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 Monitoring change: Its necessary for firm to keep constant eye on the latest
reform they had made. It helps business entity to know whether the changes
implemented are good enough to give positive result.
Developed plans help the organisation to target customers and also increase financial
profit for firm. Various action plans are implemented for the immense success of company.
TASK 4
4.1 Impact of changes on the operations of company.
By considering each and every component, company can accomplish its goals and
objectives in an easy way. It is important to go along with environment alterations. Firms adapt
modifications. so that they can compete their customers and also provide proper satisfaction to
its customers. In recent times, changes are taking place in business environment, which affects
the organisations as well its personnel department. Modifications has a huge impact on
operations' management of company (Hitt and DJ Wu, 2002). Changes mostly affects the
strategic planning of any enterprise. Influence of changes on Unicorn Grocery and its personnel
are discussed below:
 Modifications in current business plans can help company in attracting new
potential customers. If company is giving better taste in its products. then it will
pull more consumers, because today's customers are much health conscious.
 This firm is expanding globally which increase the tasks and obligation of its
personnel department. Company can also use different method through which
they can attract more attention such as social media.
 Various changes also help the enterprise in betterment of its sales volume.
 Relations with suppliers is also improved by business modifications because it
provides new strategic planning to cope up with its partners, employees, managers
and suppliers.
 Changes if brought positive result help organisation in increasing their profit.
Making global has been the biggest change Unicorn grocery is going through, this
change brought major leap in sales growth of organisation.
Furthermore, new environmental changes and internal change help the Unicorn Grocery
to modify its public image. Change in its new products attract new customers which leads to
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