Unit 33: Small Business Enterprise Analysis and Recommendations Report

This report offers a comprehensive analysis of a small business enterprise (SME), specifically focusing on 99p stores. The introduction provides context on the significance of SMEs in the economy. Task 1 details a profile of 99p stores, highlighting its strengths (e.g., small-scale operations, flexibility) and weaknesses (e.g., limited resources, competition). It also examines the business's comparative performance measures, including financial statements, customer feedback, and ratio analyses. Task 2 delves into recommendations to overcome weaknesses, suggesting investment strategies, business expansion, and marketing improvements. It also discusses ways to maintain and strengthen existing performance, such as enhancing product quality and customer service. Furthermore, the report recommends areas for business expansion, including the use of STP marketing. Task 3 focuses on existing business objectives and plans, revising plans to incorporate changes, and preparing an action plan for implementation. Task 4 assesses the impact of proposed changes on the business and its personnel, how changes will be managed, and how to monitor improvements. The report concludes with a summary of findings and recommendations.

UNIT 33 SMALL BUSINESS ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Produce a profile of the selected company and its weaknesses and strength. ......................1
1.2 Analysis of the business comparative measures of performance..........................................2
TASK 2 ...........................................................................................................................................3
2.1 Justification and recommendation to overcome from weaknesses in the business...............3
2.2 Analysing ways in which existing performance could be maintained and strengthened......5
2.3 Recommendations with justification that new areas in which company could be expand
their business practises. ..............................................................................................................5
TASK 3............................................................................................................................................6
3.1 Existing business objectives and plans.................................................................................6
3.2 Revise business Plans to incorporate appropriate changes...................................................7
3.3 Prepare an action plan to implement the changes. ...............................................................8
TASK 4 ...........................................................................................................................................9
4.1 Impact of proposed changes on the business and its personnel............................................9
4.2 How changes will be managed in business practises..........................................................10
4.3 Monitor improvements and its performance of the business..............................................11
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Small business enterprises enhance the business management in context of SME
industries. Generally, small scale industries are operated by single person or in partnership. This
helps in enhancing the opportunity and growth of the economy. SME played a very important
role to increase national income of the country at the time of Brexit. SME companies assists in
maintaining the stability and growth of the country. This present report is based on SME and
their weaknesses and strengths. This report will consider about 99p in London. It is a small-scale
chain in London. This report will discuss about their strength and weaknesses to analyse their
actual position in the market. It will also help to enhance the business performances by adopting
comparative measure performances. How company overcome its weaknesses and take corrective
actions. Further, it will discuss about the objectives and plans of the company. It will also discuss
about the appropriate changes needed in the organisation to enhance the business performance
and impacts of the changes on the business and its employees. Moreover, it will also make the
company plan to manage the business practices.
TASK 1
1.1 Produce a profile of the selected company and its weaknesses and strength.
99P stores is based on small scale which is run by a family. It was started in January 2001
by Nadir Lalani, they opened their first store in Holloway, London and then further opened three
more stores. Owner of the company decided to expand their business throughout the UK through
which they developed their business rapidly (Barbui, et.al, 2015) . Now, it has 129 stores with
1.5 million customers reach as well. Most of the stores of 99p is situated in south of UK.
Furthermore, government also make efforts for small scale businesses as it is the most essential
part of the economy through which many of the unemployed people become employed through
SME industries. It generates opportunity growth as well. 99P provides varieties of product and
services to their customers at lower prices. Prices are the most essential factor to attract
customers towards the company. Most of the time, big organisation provides product at very high
price while SME companies offer services at lower prices through which many of the customers
get attracted towards them. It gives great business opportunity and growth to the company
enhancement (Eller and Katz, 2016).
Strengths
 Small scale business is generally
Weaknesses
 Rapid changes in environment create

operated by limited number of
individuals.
 So, in order to that, their statistical
complexities of investment will be
easier and simplistic.
 Lesser number of management create
easy process and flexibility in terms of
dealing with vendors as well as
distributors(Fournier and et.al, 2014).
 Small based environment gives more
flexibility in terms of measuring
performances and requirement in the
company.
large number of competition for SME.
 Small scale business has small security
measures. It is very critical to measure
honesty of each and every employee in
the company.
 Small scale based company have
problem to invest high amount of
money to purchase stuff (Fuentes and
et.al, 2017).
 Changing environment would affect the
small company in terms of changing
needs of customers, changes in
government policies etc.
Overall, small scale based companies should need to adopt changes to make their
businesses more attractive and productive in terms of profit earnings. It helps 99p to expand their
business into new level. Overall, every entrepreneur starts their business at zero level.
1.2 Analysis of the business comparative measures of performance.
There are many techniques and methods through which company measures its
performance on the basis of its existing performance. Performance of the company is based on its
customer attraction level (Hall and O'Connor, 2016). Apart from that, company also measure its
performance on the basis of profit ratios, competitors ratio, customer feedback etc. There are
some techniques or methods through which company determines their performance measures. Financial Statement's: It is the first method to measure the performance level of the
company. Like profit and loss ratio, cash flow statement and balance sheet of the
company. Which helps to show the actual earning of the company. With the help of past
data, company can easily measure its actual performance. It also compares its data with
their competitors like the rival company of 99p is Pound land in British. It is also a retail
chain store, Survey and feedback: It is another performance measure technique through which
company can easily identify its actual performance in the market. It may take feedbacks

from its customers in terms of quality, performance product variety and the company
service (Jiang and et.al, 2016). Weather its customers are satisfied or not with their
products and then compare it with the competitors. It helps company to measure the
customer needs and wants. Moreover, it aids in to improving the operations of the
company. Ratio Analyses: It is the most effective method to analysing the performance of the
company that is ratio analysis. It shows the company assets and liabilities. 99P can
compare its performance with other rival companies to take corrective actions.
 Customer Relations: Customer relation is the most important factor to measure the
company performance. These customer relations show that how much company is well-
known in the market. This parameter is very necessary for small scale companies. Apart
from that, marketing fetches customer attraction towards the company products, it also
helps in making long term relation with customers (Kasiske and et.al, 2016). By
providing quality of product and services get maximum customer satisfaction. Which
increases the performance level of the company.
TASK 2
2.1 Justification and recommendation to overcome from weaknesses in the business.
Every organisation and small-scale enterprise has some weaknesses. As mentioned
above, the weaknesses of 99p is explained that due to having short amount of funds, employees
resources company facing many challenges and issues to run the business practises. To overcome
from imperfection of the company (Kasiske and et.al, 2016). Employer needs to adopt some
effective and latest technologies to enhance their business qualities and business expansion.
Business could not avoid the rapid changes in the environment due to which company faces
challenges. Small scale enterprises should provide some attractive and innovative products to
retain their existing customers and attract new potential customers. Furthermore, company must
adopt some new changes to improve its performance level in order to generate more sales
revenue. There are some weaknesses and their suggestions for the company to maintain its
stability in the market.
Weaknesses Suggestions
Insufficient investment strategy Company needs to adopt some effective

investment strategy to enhance their quality of
services (Kaufman and et.al, 2016). New
changes and investment give new
environment opportunity growth. 99P store
needs to adopt new techniques and effective
investment through which they get maximum
return.
Constricted business expansion Every company or small-scale firm needs to
expand their business for getting more
customer reach. It gives new sales or profit
revenue for the company. 99P needs to
expand their business in terms of product
contraction or location expansion. It helps
company to overcome from its weaknesses
and get customer attraction (Lindsay and
et.al, 2014).
Limited customers Small scale business has issue of limited
customers because of limited company
awareness. To increase their company
knowing, they need to adopt some effective
marketing tools and strategies, through which
they get maximum customer attraction.
Restricted Resources Generally, every small-scale firm suffers from
limited resources due to having limited capital
funds. To enhance their resources company
needs to adopt effective business plans to
manage their capital funds into corrective
actions (Menzies, 2017).

Overall, to minimise their weaknesses and convert into strength. 99P needs to adopt some
effective and productive action plans. It helps company to minimise their weakness and get the
best results. Furthermore, entrepreneur needs to analyse the customer needs and wants before
adopting any strategies.
2.2 Analysing ways in which existing performance could be maintained and strengthened.
Small scale enterprise is very much productive and innovative in terms of producing new
services or products. It gives new opportunity and growth. Small scale businesses have power to
convert its weaknesses into opportunities. 99P needs to enhance their quality of product and
services to enhance their company brand as it helps to satisfy the customers. Moreover,
sometimes every product in store is not necessary that it should be best some products may be
not that much durable or reliable (Moeskops and et.al, 2014). So, in that case company makes
sure that upcoming products must be effective and durable. Company also provide some offers
and services like membership cards for new customers, and then give them some reward points
and discounts. These practises will give more customer satisfaction and attraction towards the
company products. This increase the customer faith and loyalty also it helps to retain potential
customers. Like most of the retail store customer having the issue of long queues. For that, store
also provide facility of store shelves through which customer don't need to face any issue and
conflicts. Store also focus upon the increasing the number of purchase points. With the help of
these areas company can get maximum profit revenue for the company. On the other side 99p
also can adopt employee training and development programme through which they guide their
staff regarding how to deal with the customers, about behaviour and how to serve the product to
the customers etc. this helps to maintain the customer relation and their satisfaction level with the
company (Mok and et.al, 2017).
Overall, on the basis of above discussion, small scale industries need to adopt various
changes to maintain its position in the market, this will help them to beat the competitor. Along
with that company needs to adopt the latest technologies through which they provide fast
services to their customers, and get higher satisfaction. This increases the company marketers
share and brand awareness in terms of marketers and customers. Small scale industries are very
much effective in terms of growth, entrepreneurs always gives prime quality of innovative
products to their customers on the basis of their needs and wants.

2.3 Recommendations with justification that new areas in which company could be expand their
business practises.
Business expansion is the most important process for the company to take its business
upwards in terms of getting more profit revenue (O’Donnell, et.al, 2014). For that, company
needs to adopt some new business expansion strategies such as S-T-P. It is generally an effective
marketing strategy. S-T-P defines as segmentation, targeting and positioning. Segmentation
means to divide the customers on the basis of various groups like, age, religions etc. and each
segment must be approached differently. Targeting involves to target a particular segment
through which company earn maximum profit revenue. On the other side, positioning, it is the
most effective element of this strategy, positioning gives the actual value of the company in
market. For that company needs to maintain its product quality to keep its position in the market.
It is also defines the company brand value in front of the customers and competitors. New
technologies has expanded the business activities and provide quality of management services to
the customers . Like to secure the safety needs of customers as well as store company can also
enhance CCTV cameras. To ensure the safety needs of customers. It makes customer happy and
satisfied with the company product and services. Along with that 99p also needs to adopt better
customer service. Like to minimize the efforts of cash counters where customer has to face long
queues in during the billing process. For that, company needs to increase cash counters. This
process helps to minimize the problem. Along with that company also provide home delivery
services for those customers who don't want to come at the place. It makes customer happy and
satisfied (Prescott, Iwata and Pincus, 2015). To improving customer service. 99P also provide
some more employees who helps customers to find their desire products. This process helps to
maintain brand positioning in the market and company can easily target its target group of
customers. This whole process gives company higher amount of sales revenue, which helps
company to expand their business at new level. 99P can also adopt new product segment
according to the customer needs and wants. It makes customer satisfied and happy with the
company product and services.
TASK 3
3.1 Existing business objectives and plans.
It is very important for the company to adopt effective objectives and plans. It helps to
minimize the risk management which helps company to improvise their services in more

effective ways. Every profitable strategy enhance the 99p strength and minimize their
weaknesses (Scarlat and et.al, 2015). The very common strategy used by 99p which helps them
to overcome from the issue of price rise and inflation is to cut the rates of suppliers. At the time
of inflation, weather they cut the supplier or they reduce the quality of services. The main target
of 99p is on middle class or lower middle class to purchase their good and services. They never
increase their prices of product, but they reduce their size or amount the goods. It is very
effective way in small scale industries. This also helps company to further invest in other
activities to expand their business growth. The main objective of 99p is to expand their business
in across the world. It is very important for every company to expand its profit margin in every
year, it gives new opportunity and growth. There are some objectives and plans of 99p is given
below:
 Development of workers: it is the first objective of the company is to enhance the
workers' productivity level to enhance the management services of the company
(Sheares, et.al, 2015). For that, they need to organize training programme to
increase the knowledge and skills of employees. In 99p store proper arrangement
must be their to provide quick services to the customers.
 Innovation: Innovation is the king of new effective tool to achieve overall
company objective. It is necessary for the small scale company to adopt new
creative products and innovative services to attract customers. Innovation helps
company to expand their business value in front of the customers. So that,
company also aims to adopt new creative changes to make customers happy and
satisfied.
 Achieve overall business plans: company objective is to accomplish the business
plan in effective and in efficient manner (Silence and et.al, 2014). It also helps
company to measure actual performance out off desired performance. Overall 99p
business plan is to attract new customers by providing quality of services to the
customers and earn higher sales revenue for making further business plans.
3.2 Revise business Plans to incorporate appropriate changes.
Revise business plans is the most prominent process to get desirable success. It gives
more business opportunities towards the further growth. The main aim focus of 99p store is to
adopt current changes related to business growth. Like further business expansion for expanding

business and opening some more stores in other places. On the other side 99p also look upon the
activities which is not very much profitable for the company, so that they need to eliminate those
unwanted activities (Thompson and et.al, 2015). Apart from that, they need to kept his customer
service on top of the list. It is the most important objective of every business plan is customer
satisfaction. To incorporate changes in the business plan is very much effective and profitable for
the company. Along with that revision of business plan helps company to take corrective action
towards the betterment of company. Along with that company also make sure that its displays
product is attractive and customer oriented. This plan helps 99p to get more customer
appearance, Also they increase cash counters so that customer get benefit to purchase product
and services from 99p store. 99P is the store which provides number of products under one roof.
Accordingly, they need to revise their quality of product. So that customer create more demand
for the products. It makes new ideas and opportunity growth for further expansion plan. Before
making any business plan company needs to revise the plan and take corrective action plans if it
is required. Along with that company also make sure about the new strategies and development
plan, that is reliable or profitable for the company or not (Woinarski, Burbidge and Harrison,
2014).
3.3 Prepare an action plan to implement the changes.
Action plan must be according to the business objectives. That could be used by 99p
stores, it improves the performance of business activities. It is the foremost activity for the
company to adopt effective changes and business plans. Like company needs to change the
employees' behaviour towards the customers. Like staff must be like which supports customers
to short the items displayed for the customers. Along with that company also need to adopt some
more security systems to ensure the customer security. On the other side bar coding scanner
machine must be replaced by new advanced techniques. Action plan of the company must be
equipped by effective techniques (Barbui, et.al, 2015).
Parameter Action
Set objective It is the first process of setting the action plans of the company. In
which company make their objectives and goals of the company on

the basis of company make action plan accordingly.
Deciding the
advantages and
disadvantages.
After deciding plans objectives and goals. Next process is to
determine the pros and cons of the objectives. Weather it is effective
for company growth or not. If some points are not sufficient to meet
the needs, so that company make those changes (Fournier and et.al,
2014).
Set task on the basis
of prioritise.
Another big step is to set the things on priority basis. So that
company must be know which task is more important than other. It
helps to give importance to those activities which is most important
and necessary. It also helps to get to know what is to be done and
when it is to be done and how.
Effective management
of HR
It is the foremost process in making action plan is effective
management efforts towards the accomplishment of goals. Because
Management of the company set the roles and responsibility to
delegate the work on the basis of employees skills and qualification
criteria. It helps to ensure that all things has set to done in
systematic form (Fuentes and et.al, 2017).
Setting the time-scale
of operations
Last process of action plan is to set limit of time to complete the
particular target or plans. There are two types of time scale, long
term goals and short term goals.
TASK 4
4.1 Impact of proposed changes on the business and its personnel.
Impact of new changes must be positive and negative. Changes that has been had
significant impact on business practises. Like if 99P adopt the latest technology to enhance their
business activities, in that case they give customer satisfaction. Impact of changes must be
depend on the execution process. Company must be adopted systematic implementation plans to

ensure success to achieve the final objectives (Hall and O'Connor, 2016). Proposed changes also
impact on the employees in the organisation. Due to rapid changes in the environment company
needs to adopt changes to enhance the company opportunity and growth. Changes also helps
company to connect with current environment needs which helps company to determine
customer needs and wants. Adoption of the latest technology will impact positively towards the
company growth (Kasiske and et.al, 2016). These proposed changes helps to enhance the
productivity level of employees in the company. They give new skills and knowledge in order to
achieve the overall target. It also helps to give brand awareness in the market. Along with that
company also needs to adopt effective marketing tools to enhance promotional activities of the
company. Changes are always preferable when demands are changing in the market. Company
always needs to adopt new changing according to the environment. It makes business
environment more healthy and positive. For adopting new changes small scale enterprises needs
huge amount of financial resources. For that they need to secure some amount of funds at the
time of requirement.
Positive impacts:
 New changes helps company to connect with current environment.
 Proposed changes are always provides new opportunity and strength for the company
betterment. It helps to improve business performance.
 Changes make environment competitive and more challenging for their competitors. I give new ideas and creative product and services, through which company attracts new
customers (Kaufman and et.al, 2016).
Negative Impacts:
 Changes may be preferable or not, it involves high risk and uncertainties.
 Sudden changes and modification require high financial resources, which may be not
possible for Small Scale industries.
 Sometimes Employees are not get happy with new technologies changes, due to which
they not interested to work in the company.
4.2 How changes will be managed in business practises.
Changes can be managed by 99P by adopting some effective technologies. Such as Kurt
Lewin's model will manage the changes in systematic manner (Menzies, 2017). It makes