Worthanshaws Ltd. Business Report: Performance and Expansion Plans

This report provides a comprehensive analysis of Worthanshaws Ltd., a small food enterprise specializing in sugar-free and dairy-free frozen desserts. It begins with an introduction to small businesses and the context of the Dragon Dan series, then profiles Worthanshaws, detailing its strengths (healthy and tasty products, reasonable costs) and weaknesses (limited consumer interaction, competition, and market share). The report then evaluates Worthanshaws' performance using financial statements, comparing it to competitors like Purbeck Ice Cream, and analyzing non-financial measures such as staff turnover and marketing effectiveness. It further explores actions to overcome weaknesses, including strategies for market expansion and improved customer communication. The report also suggests ways to strengthen and maintain current performance, emphasizing the importance of core values and market research. Finally, it discusses the impact of proposed changes on personnel and business operations, including an action plan for implementing changes and improvements in business performance.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of Worthanshaws and its strengths and weaknesses.................................................1
1.2 Comparative measures of performance of Worthanshaws Ltd.............................................3
TASK 2............................................................................................................................................6
2.1 Appropriate actions to get over the weaknesses...................................................................6
2.2 Ways in which current performance could be strengthened and maintained......................7
2.3 New areas in which company can expand its business.........................................................8
TASK 3............................................................................................................................................8
3.1 Assessment on current business objectives and plans...........................................................8
3.2 Business plans and suggest areas where Worthanshaws can make some changes...............9
3.3 Action plan to implement the changes................................................................................10
TASK 4..........................................................................................................................................11
4.1 Impact of proposed changes will have on personnel and business....................................11
4.2 Changes will be managed in business.................................................................................12
4.3 An improvements in business performance over past two years........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small businesses are those firms which are owned privately or solely. These types of
firms are very small in revenues and also, in size. In small enterprises, there are few staff
members working. In small businesses, various types of firms or micro firms are included such
as grocery stores, hair dressers, guest houses, photographers, restaurants and many more. In the
present scenario, small as well as micro firms are adding a significant value in improving the
society and overall economy. In this report, discussion regarding the series of Dragon Dan will
be done. Its series are developed through BBC (A. Harris and Patten, 2014). Worthanshaws is a
small food enterprise that produces the free frozen desserts which are similar as ice creams. The
profile of Worthanshaws along with its strengths and weaknesses will be given. Along with that,
appropriate actions that firm will take to overcome from its weaknesses will be discussed as well.
The performance level of this business is mentioned for last two years in report. Further, the
exiting performance of business that could be strengthened and maintained will be shown here
along with the impact of proposed changes that will be there on personnel as well as on business.
TASK 1
1.1 Profile of Worthanshaws and its strengths and weaknesses
Worthanshaws Ltd. is formed by the Kristy and it is situated on the 27 July, 2009. The
main objective behind establishment of this company is to give the sugar free and also diary-free
frozen pudding which is a substitute of the ice cream. Kristy is a young entrepreneur to which
series of Dragon Dan provides the fund. She came with an idea regarding the pudding for
inventing it, when she searched that Jacob, her son suffered from allergy from nuts and also
intolerant. In the year 2012, Worthanshaws was rebranded because Kristy wanted to improve its
brand name in market and also connect to the people who are troubled from this kind of
problems and disease (Aremu and Adeyemi, 2011). This type of rebranded signifies that there is
any kind of exchange in market of ice cream and also start to focusing on the full segment of
food.
In United Kingdom, it started selling its items or products in different parts. These
products are offered through its business firm which is registered with the growth rate of 75% in
the retail stores. But in this present time period, the products of Worthanshaws Ltd. Company are
sold in the all super markets and also valued at around 5 million pound.
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The owner of Worthanshaws Ltd. won the many awards in past 11 years due to producing
and also providing the better quality of drinks and also food items. The main focus of the Kristy
on these kinds of activities is to give the healthy meals to consumers and also to those people
who do not have time to cook for them selves (Blackburn, Hart and Wainwright, 2013). She is
doing many efforts for the purpose of satisfy the needs and wants of people by rendering them
safe and also healthy food items as well as drinks.
There are some strengths and weaknesses of Worthanshaws given below which will be
helpful in taking effective and appropriate actions:
Strengths:
 The products of this company are healthy as well as tasty.
 This company sells its food items at the reasonable cost like for an instance the healthy
meals.
 Main strength of this company is that its goods are now available in the supermarkets of
United Kingdom
Illustration 1: SWOT Analysis
(Source: SWOT ANALYSIS, 2017)
Weaknesses:
 Its major weakness is that in this, the interaction with consumers is low because of selling
its products only in the domestic market.
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 The competitors are selling more variety of drinks and also food products.
 It has low market share.
 Under this, there is an investment given by Dragon Dan Series for supporting the
business of Worthanshaws Ltd.
1.2 Comparative measures of performance of Worthanshaws Ltd.
Kristy is manufacturing the food to those people who can not cooks the food and focus on
the food quality for the purpose of satisfying the needs and also preferences of people. As it has
a capability and also an ability to be a market leader by doing these kinds of efforts (Blackburn,
Hart and Wainwright, 2013). The main competitor of Worthanshaws is Purbeck Ice Cream by
offering the same line food items with the more choices. So in context to this, the performance of
company has been evaluated with its competitors in various ways. For determining the current
performance of company, financial function of this company develops a financial statement
which is concerned with the balace sheet and also profit and loss statement. These two following
are mentions below:
Profit and Loss Account Statement
(30 April 2016 and 30 April 2017)
2016
£
2017
£
Sales 300 360
Cost of Sales 250 400
Gross Profit 50 40
Overheads 30 50
Net. Profit 20 10
Balance Sheet of Worthanshaws Ltd.
(30 April 2016 and 30 April 2017)
£ 2016 £ 2017
Fixed assets 70 50
Stock 50 75
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Debtors 25 40
Bank 0 1
Total 75 115
Current liabilities
Creditors 9 15
Bank overdraft 0 3
Total 9 18
Current ratio = current asset / current liability
2016 2017
75000/9000= 8.3 times 115000/18000= 6.3times
Interpretation- It can be interpreted that in the year 2016, net profit is £ 20 and in 2017,
it is £10. On the basis of balance sheet, total liabilities in 2017 is £115 and in the year 2016 is
£75. Along with this, the current ratio of 2017 is 8.3 times and 6.3 times of 2016.
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Figure 1: Financial Balance sheet
(Source: Purbeck IceCream limited, 2016)
It has been compressed from the above data that as comparison to the Kirsty, the
Purebeck Ice Cream company is old. The major changes in company that enables to more busy
with the consumers along with determining their needs and also wants.
There is also a comparison among the departments of two different companies Purbeck
Ice cream and Worthenshaw ltd. In both the business firms there are human resource, marketing,
technology, sales departments are working. The human resource departments of Purbeck Ice
cream company is more effective as comparison to Worthenshaws Ltd. which mentions in given
diagram.
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Non-financial measures: Human resource
Year ending 2014 Worthenshaw’s Ltd Purbeck Ice cream
Staff turnover 9.00% 12.00%
Absentee rates 2.00% 4.00%
% of job offers
accepted
18.00% 15.00%
The marketing departments of Worthenshaws firm does the more effective and attractive
promotional activities but Purbeck company does not focus on the advertisement. On the other
hand in the production process Worthenshaws Ltd. Firm uses the advanced and new technology
and Purbeck ice cream uses the obsolete technology.
TASK 2
2.1 Appropriate actions to get over the weaknesses
It is necessary for Worthanshaws to get over from its weaknesses. From this company
can do its business operations in proper way and it can increase its business in to the
international market. This business firm selling its goods and food items by the supermarkets
where the customer paying the more attention towards the products and also trying to buying
them. But is is very necessary for the Worthanshaws business firm is to more focus on its
weaknesses in context to increase its growth rate and also its main rivals. So from this, it is
essential for this company is to adopt the new strategies for making the plans in context to get
over from it (Carraher and Paridon, 2015). The the main focus of this company is to focus on
segmenting its business that is ready to produce the meals and also healthy meals for people or
families. Some of the recommendations has been given to Worthanshaws in context to get over
from its weaknesses:
Restricted growth rate and also market share- It is necessary for the Worthanshaws is
to focus on some other segments in which this company can expand its business and also
increase its market share in order to increasing the profit level. The products of this business firm
are selling by the supermarkets like for an instance ASDA, Tesco etc. But it can sell its
products by by the small chain retailer by which this company can enhance its value chain and
also increase its business in to the local areas.
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Communication with customer is minimum- This firm sells its products with the help
of online services (Chun and Mun, 2012). But at this present time it is necessary for this firm is
to communicate with those people who are not using the online medium by adopting and also
using the some tools and innovative technologies related top the advertisement.
Rivals selling more variety of goods- The major competitor of this company are selling
the tasty food items on the basis of changes in their tastes and needs of consumers. They also
providing the more fast food items and it is a barrier for Worthanshaws is to sustain its customers
for the long time period. In context to this, it is necessary for this company is to add some value
in its ice cream and also food items so that from this consumers will be retain happy.
2.2 Ways in which current performance could be strengthened and maintained
In this present time, it is important for company to maintain its strategic position in to the
competitive market through improving its current performance. It will be supporting to the
business in order to achieving its targets in a particular period of time (Ciampi and Gordini,
2013). As it is important for this business is to focus on its strengths and also capabilities so that
it can be more strong and also work on this. So, there will be a requirement to this company is to
concentrate on its core values of its business in context to retain its sustainable growth at the
market place and also have the ability to compete with its competitors. This enterprise selling the
valuable and also some ready made food items to consumers who are very conscious about their
health. For succeeding in the competitive market, it is necessary for the company is to maintain
its capabilities or strengths and also make the big image of its brand in an innovate way. This
organisation also gives the online services in context to purchasing its products and making its
position strong in the competitive market and also solve its issues or problems which this
company faces concerned to the food quality. But in addition to this, it is necessary for this
company is to reach to its consumers who are not using the online facilities and also awake about
health. Along with this, it is the responsibility of this company is to conducts the market research
to know about its strategies of its competitors and target the consumers (Down, 2010). There are
some methods or ways under which Worthanshaws can develop its strong position at market
place by its strengths:
Develop strong team- The strong team is very helpful in doing the business related
activities on proper time and also achieving its goals and objectives in a specific period of time.
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The manager build a team on the basis of the staff members capabilities. For increasing their
skills, it gives the training facilities to employees.
Maintain superiority of products- It is necessary for Worthanshaws is to keep the
quality of its goods by attracting the large number of people.
Know about customer royalty stages- Worthanshaws requires to determine about the
customer loyalty towards the goods and services which this company selling. For the purpose of
maintaining its strong position in the mind of customers, it is necessary for this company is to
take the review from consumers on the regularly basis and make changes in its products
according to their requirements.
The business strategy is related to the competitors is allowing a business firm to
manufacture goods and services and then sell in an effective manner as compare to its rivals. It is
necessary that the product of Worthenshaws business firm should be unique as well as innovative
as comparison to its strong competitors.
2.3 New areas in which company can expand its business
The Worthanshaws gives the nutritional and also healthier food and drinks to the
consumers. In order to spend its business in to the new areas, there will be the big scope to firm
in context to sustain at the market place for the long time period. It is customer base will be
strong, then it will be helpful in increasing its business in to the new areas (Fassin, Van Rossem
and Buelens, 2011). The food items which the Worthanshaws are given is depend on the some
main concept and that is there is a necessary to be the delicious food items that will maintain the
nutrition and also some calories and free from any kind of disease which can harm the health of
people. In context toe sustain at the market place. It is necessary for this company is to do the
research and also focus on capturing the large share of market, then with the help of it, this firm
can increase its business in to the new areas. By this, Worthanshaws can capture some effective
opportunities which are easily available at the market place and also provide the more food items
to the consumers. Some ways regrading expansion of business given below:
Expand business internationally- Worthanshaws firm has an opportunity to increase its
business in to new areas and also open its new outlet in the some other countries along with the
United Kingdom. It can be done through the tiding up of the most popular super markets who
operate their business in the international market. From this, they can easily sells its goods to the
large number of consumers.
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Create the dynamic and diverse partnership- It is necessary for this company is to
look on the partners which can increase its capabilities (Forsman and Temel, 2011). It will be
helpful for Worthanshaws company to access its new consumers with adopting or using the new
and latest technologies. Kristy can innovate some ideas in terms of increasing the good will and
also profit level of company.
Ansoff matrix is helpful in developing a business and it is also known as a market growth
matrix. Under this four main strategies are involves like market development, diversification,
market penetration, product development.
Market development- Under this, the business firm wants to sell its current products in
new market. It can be accomplished through:
 Various segmentation of consumers.
 International markets.
 New regions or areas about country.
In order to attract the new consumers firm develop a various pricing strategy.
Market penetration- In this, the main focus of this business firm is on selling the
existing goods or services in to the current market. With the help of this kind of strategy, firm
can know about the needs of consumers.
Diversification- In this, Worthenshaws Ltd. Company introduce new goods and also sell
in to new new market place for capture market share.
Product development- IN this cited company develop a new goods and introduce in to the
existing markets. There is a need to company to make some changes in to existing products and
introduce new at current market.
TASK 3
3.1 Assessment on current business objectives and plans
In this present scenario, the more focus of organisations is on plans and also strategies
which are used through them in context to achieve their aims and also objectives. The main
objective Worthanshaws business firm is to regarded as the sub part which are formulate through
the higher authorities. According to this objective, it is necessary for the man anger of this
company is to work on developing the plans and policies offer the purpose of achieving the goals
and aims of company. At the time of forming this organisation, the main aim of Worthanshaws is
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to provide the better tasty and also healthy food and drink items to the customers without harm
their health (Gronum, Verreynne and Kastelle, 2012). There are some of the business objectives
which shows some values given below as above:
 The primary and main objective of this firm is to increasing its profit from satisfy
the needs and also demands of the people.
 It provides the better ambiance to the staff members by which they can do their
work effectively and also efficiently in order to sustain them for long time.
 This company assures about giving the safe and also healthy working
environment to the staff members in company.
 For rendering the healthy drinks and also food items to those kinds of people who
can not cook their own food.
 It is necessary for this company is to comply through the ethical policies and also
regulation so that from this consumers will believe on company and also provides
the legal services.
 For proving the training facilities for the staff members in order to increasing their
working efficiency, capabilities and also skills.
 For determine some changes which are done by the government and execute its
plans and strategies accordingly.
The business plan of firm refers to the basic outline regarding the goods and services of
company, existing target market and in what manner company can accomplish its gaols and
objectives. It is necessary for the manager to to prepare the business plan in that manner which
states regrading the financial section and also market place (Gunasekaran, Rai and Griffin,
2011). The financial section consists fund flow statement, cash flow, budgets etc. It is necessary
for company is to make the SMART objectives.
3.2 Business plans and suggest areas where Worthanshaws can make some changes
Business plan of an organisation provides an ideas and thoughts to company regarding
the achieving of objectives in order to make improvement in its potential performance of
company. It is necessary that there should be effectiveness in the plan if in case there is not kind
of effectiveness then in this case company will lead to the failure and also some difficulties for
them in context top retain at the market place for long time period. Mostly, the business plan of
organisation shows regarding the many activities and also operations which Worthanshaws is
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