Comprehensive Business Analysis and Strategy Report: Zizzi Restaurant

This report offers a comprehensive business analysis of Zizzi restaurant, examining its strengths and weaknesses through a SWOT analysis, and assessing its financial performance using profit and loss statements, balance sheets, and ratio analysis. The report identifies key weaknesses, such as comm...Read More

SMALL
BUSINESS ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK1.............................................................................................................................................4
1.1 Profile of Zizzi restaurant and analyse its strength and weaknesses.....................................4
SWOT analysis:..........................................................................................................................5
TASK 2............................................................................................................................................5
2.1 Explain recommendation for overcome weaknesses with justification................................5
2.2 Explain ways for maintaining existing performance............................................................7
2.3 Explain recommendation for expansion................................................................................7
TASK 3............................................................................................................................................8
3.1 Business objectives and plans to implementation of proposed changes...............................8
3.2 Revision of business plan......................................................................................................9
3.3 Prepare a action plan ..........................................................................................................10
TASK4...........................................................................................................................................10
4.1 Impact of changes on business and its personnel................................................................10
4.2 Planning for managing the changes....................................................................................11
4.3 Monitor improvements in the performance of Zizzi restaurant..........................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Small businesses play vital role in development and growth of an economy of a country
because they contribute large part in gross domestic product of nation. Small businesses are kind
of organisations in which they have less than 50 employees whose main objective is to earn
maximum profits so they can increase their standard of living. Report will be included Zizzi
restaurant which is small company providing food to customers with attractive interior so they
can attract lots of customers. Report also includes strengths and weaknesses of the organisation
with the help of various methods(Altman, Sabato and et. al., 2010). Apart from that it also
includes an appropriate business plan which helps to boost up profit level of the company.
Performance management tools which helps to identify hidden problems in prospering of
company will be discussed.
TASK1
1.1 Profile of Zizzi restaurant and analyse its strength and weaknesses
The main objective small businesses are to that provide services and good food to their
customer and maximise their profit level. Zizzi restaurant also focuses on innovation in their
food so various customers can take more interest to go in their restaurant. Cited organisation is
famous for their attractive interior and serving tasty food to their domestic and foreign customers
both. Company is focused on betterment of their services by adopting and implementing various
strategies(Aremu, and Adeyemi, 2011). Zizzi restaurant focuses on other services like providing
comfortable rooms and other services which helps to attract more customers. Apart from that
Zizzi restaurant also provide entertainment services which feels customer relaxed so they can
comfortably spend their time with enjoyment.
 Name: Zizzi
 Address: Hereford HR 4 9HR
 Food: Italian

 Founded: 1999
 CEO : Steve Holmes
 Stores: 140 branches in UK
 Opening hours: 11.30 A.M to 11 P.M
 Menu: Zizzi.co.uk
Reservation: booktable.co.uk
SWOT analysis:
Strength: This restaurant has various strengths which can be used for betterment of the
organisation. Most important Biggest strength of this company is providing quality products to
the consumers. They include effective strategies and policies which helps to maximize their
earning and other strength is charismatic interior which attract lot of customers not only domestic
but also foreign customers(Bianchi and et.al., 2010). Apart from that one another strength is
personality its skilled employees so they can give best and qualities services to clients.
Weaknesses: There are many weaknesses in cited organisation so it directly affects the revenue
of company. It includes miscommunication between employers and their subordinates so it
affects the policies and strategies of the company. A major weakness of this restaurant is that
competitors which exist in the market and affect profits of the organisation. There are less
qualified employees which affect activities of enterprise and lack of enough funds is also a
weakness which Zizzi restaurant faced.
Opportunities: It includes innovative ideas which arises from change in taste and preferences of
customers(Bridgeand O'Neill, 2012). Company can also appoint qualified and skilled employees
so they can give quality services and generate creative ideas.
Threats: It includes one major threat that is same kind of services and products are also being
provided by various other restaurants which affect operations, strategies and policies of the
organisation.
1.2 Comparative measures of performance
It is essential for a business organization is to measure the performance which help to meet the
current performance. Zizzi restaurant to use various tools and techniques which help to analyse

the financial position of the company. for this they need to conduct comparative analyses which
mentioned below:
Comparative measure of performance using financial factors
Profit and loss account for year ended 31ST Dec 2016 to 31 Dec 2016 are stated in the below
table.
2015
£
2016
£
Sales 120 220
Cost of Sales 100 100
Gross Profit 20 120
Overheads 10 50
Net. Profit 10 70
Balance sheet for year ended 31ST Dec 2016 to 31 Dec 2016 are stated in the below table.
Year 2015
£
2016
£
Fixed assets 40 30
Stock 16 10
Debtors 30 80

Bank 4 0
Total 50 120
Creditors 12 40
Bank overdraft 0 30
Total 12 70
Ratio analyses: This is one of the most usable tool which is used by the manager to analyse the
actual position of the company. It involves efficiency, profitability and other aspects which also
significant for the stakeholders such as investors, suppliers and government.
2016 2017
Net profit margin = net profit/ net sales *100=
10/120*100= 8.33
Net margin = 45/ 250*100= 38.81
Gross profit margin= gross profit/ net sales *
100
20/120*100+16.66
Gross margin = 120/220*100=54.54
Quick ratio = current asset – stock/ current
liabilities
30+4-(16)/12=1.5
Quick ratio = 80-10/70=1
Other financial performance tools:
Year ending 2014 Zizzi restaurant Le Bistro Du Coin
Staff turnover 10 12
Absentee rates 18% 22%
% of job offers accepted 60% 80%
Result of job satisfaction
surveys
85 percent satisfied 70 percent satisfied

Competence surveys 72% 45%
TASK 2
2.1 Explain recommendation for overcome weaknesses with justification
Behind unsuccessful enterprise weaknesses are major reason because it affects operations
and functions of the company. It also includes internal and external factors which exists in the
environment, organisation have to overcome these weaknesses if they want to increase its
business and boost up their profit level. For this purpose, enterprise have to make effective
policies and strategies with appropriate business plan which shall play a vital role in the success
of business. These strategies will also help in achieving goals and objectives of the company.
Manager of Zizzi restaurant need to prepare an effective strategy by which they can achieve their
organisational objectives. Some barriers which a company faces are explained below:
 Absence of appropriate communication channels between employers and their
subordinates.
 Lack in number of qualified employees which affect the services and products provided
by customers.
 Competitors, which produce same kind of product and services which affect the level of
income of the company.
 Lack of enough funds is also a weakness which is faced by cited organisation.
Zizzi restaurant need to eliminate these barriers by formulating effective strategies and policies
with the help of appropriate methods(Cerrato and Piva, 2012). There are many methods used by
organisation to remove weaknesses, which are given below:
Lack of communication: When an organisation plans all activities and strategies, it is important
to formulate proper channels of communication so that it reduce the mistakes and confusion
which may be arising at the time of implementation.
Training and development: It is very important for cited organisation to conduct training and
development programme so that they can enhance employees’ skills and competencies and
provide best and qualitied services to every customer.
Estimation of cost: This is very important factor which a company have to focus on it because it
directly affects the earning of the organisation. For this purpose, managers can use various

methods or techniques to minimise cost which have direct relation with the organisational
objectives.
Modification in existing policies: Managers of cited company have to need innovation or
modification in their policies according to environment. It is important to innovate new ideas so
that it helps to attracting large number of customers.
Zizzi restaurant can overcome all these weaknesses by formulate effective strategies and policies
with the help of qualified employees. It is very important to implement programme for remove
for removal of all the barriers of an enterprise(hittithaworn and et.al., 2011). For this purpose,
cited organisation need to adopt some steps are given below:
 Recruit qualified and experienced workforce to give best services to customers.
 Implement powerful strategy to boost up profits.
 Maintain environment for proper communication between various employees.
 Identify sources of funds so that enough capital can be arranged for betterment of
company.
2.2 Explain ways for maintaining existing performance
It is important for any company to maintain its existing performance because it is base of
formulating future strategies and planning. It also includes to focuses on targets and objectives
which have to be fulfilled by a company. Manager of organisation need to apply various
techniques are mentioned below:
Healthy relations: According to this it is very important for any organisation to maintain
positive and good relations between employers and their subordinates. Good relation with
customers is very important because they are key factors for success of a enterprises. These
relations are affect the current performance of the company.
Creation of health environment: Manager of enterprise is responsible to create friendly
environment in workplace so that employees can discuss any issue or problems may be faced by
them in organisation(Donner and Escobari, 2010). It helps to motivate workforce so they can
improve their performance in company.
Enhancement programmes: These includes training and development programme by which
employees can enhance their skills and competencies so they can give their full contribution
towards work. Main objective of this programme is to give necessary information and aware to
employees of the enterprise.

Appraisal programmes: By adopting this program, manager can increase motivation and morale
of their workforce. Appraisal are based on the performance of employees at their work place.
Adaptable to change: It includes changes which is adopted by organisation to modify its policies
and it is essential for employees to accept these changes.
2.3 Explain recommendation for expansion
It is very important for small business to expend their activities and function beyond the
boundaries and consider all the factor which helps to increase earning of company. For this
purpose a organisation have to consider macro and micro factors which are explained below:
Cost: This is very important factors which have to be consider in expansion of business because
without funds a organisation can not expend its functions and activities. Basically it is backbone
of any project.
Recent trend: There are various tends are available in market such as taste and preferences of
different customer which play important role in business expansion because customers are only
key factor who affect earnings of the enterprises(Fassin and al.et., 2011.).
Apart from this different development strategies are also adopted by Zizzi restaurant which is
helpful for completing objectives of expansion for such as:
ANSOFF matrix: This plan is provide framework which helps to manager for developing
different strategies. It includes some different schemes which are explained below:

1. Market penetration: It includes increase in market share according to existing situations
of the market.
2. Market development: With the help of this technique organisation improve their
equipments which helps to attract consumers.
3. Product development: By use of this technique manager can modify their products with
the help of identify needs and preferences of customers.
4. Diversification: It includes identification of new market for business expansion.
For attracting large number of customer cited organisation also try to open its restaurant in
Chinese market to provide tasty food and other services.
TASK 3
3.1 Business objectives and plans to implementation of proposed changes
It is very important before launching a new product in market to consider organisation's
vision, mission and targets which need to be achieved for a enterprises(Forsman, H., 2011). This
will help to formulate effective strategy. For profit maximization it is important to introduce a
new product in the market. A effective business plan of cited organisation are given below:
Staff vision
 Give healthy and positive environment to their employees so that they can provide their
full contribution in the company. Conduct training and development programme to enhance skills and competencies of the
employees.
Customer vision

 Proper identification of needs and preferences of different domestic and foreign
customers. Maintain positive relations between organisation and customers.
Objectives of shareholders
 Maximization of profit by more investing. Focus on market share.
Business plan: It includes a effective business plan which is very important to achieve targets
and goals of the company(Gunasekaran and Griffin, 2011). Employees of Zizzi restaurant are
considering this plan when they rendered all the functions. Business plan are based on the above
activities such as time and future cost which is very important to completing any activity.
3.2 Revision of business plan
For fulfilment of organisational objectives manager have to prepare a business plan
which includes various business activities. Revision of business plan includes inspection of
strategy by expertise. This revision is includes various steps are mentioned below:
Research methodology: For revision of business plan it requires accurate information and data
so for this purpose mnage4r need to adopt a research me methodology by which data can be
gathered.
Recruitment and selection: It is very important to to appoint qualified and skilled persons so
company full fill its objectives.
Diversification: It includes expansion of market by distributing products in various locations.
Measure the performance: It includes measurement of worker's performance which helps ton
assign roles and responsibility to the employees. It also includes positive performance which
directly affect the productivity of the organisation.
Control: After identify performance of the employees, manager have to take corrective actions
according to the situation. This will helps to betterment in the organisation;s business plan.
3.3 Prepare a action plan
Action plan is very important to full fill long term and short term objectives to and on the
basis of these objectives a action plan is prepared. Work are assigned according to their skills
and competencies.
Task Duration

Zizzi restaurant prepare a business plan 4-8 days
Collection of information 10-15 days
Identification of resources 2 days
Analyse of future cost and time period in
which activity is fulfilled.
1-3 days
Appointing of employees 7-10 days
Action date
Ending date
Begins 1st august 2017
30th October
According to this task it has concluded that company have to decide time duration of every
ac5tivity for fulfilment of long term and short term objectives(Schaper and et.al 2014). Main
objective of this business plan is to reducing wastage of time and money and completing
organisational objectives in timely manner.
TASK4
4.1 Impact of changes on business and its personnel
Any change is affect on the performance of the employees and external and internal
factors are affecting the operations of business. These changes are directly affecting the and
influence earning level of the company. Some factors which are affecting functions of enterprises
are mentioned below:
Finance: It includes that any changes in technologies and advancement are affecting an
organisation in monitory way. It is important for enterprise to utilise these advancement and
technologies which helps to achieve organisational goals.
Workload: Modification in policies and procedure of the company helps to reduce workload
from employees. It also includes conduct improvement programme so workforce can enhance
their skills.
Organisation structure: There is need to change in structure of company so employees can feel
comfortable at their work place. It focuses change on work profile of workers so that all
workforce give their full contribution for fulfilment organisational objectives.

Apart from that advancement and changes is play crucial role in improvement and create brand
image in front of customers and market(Donner and Escobari 2010). Clients are also needed
some innovative products with better quality.
4.2 Planning for managing the changes
For smooth functioning of organisation, manager have to manage changes so employees
can give their full capacity towards their work. For this purpose Zizzi restaurant is adopted kotter
eight model for manage the change. Steps are given below:
Create urgency: It includes analyse the need of changes in the organisation policy and procedure
which is very important for manage the change.
Powerful coalition: It includes create healthy and positive relationship between managers and
their subordinates so they can give accurate information related to change.
Vision for change: It includes identify long term goals and objectives which are very important
for an organisation.
Communicate the vision: This is very essential that communicate goals and targets to every
employee of the company.
Remove barriers: For effective implementation of procedure, manager have to remove problems
and barriers.
Short term wins: It includes fulfilment of short term goals and objectives of enterprise.
Build on the change: It includes implementation of changes in the programme.
Anchor reformation in a corporate world: It is all about communicate changes in outside world
with the help of important factors.
4.3 Monitor improvements in the performance of Zizzi restaurant
It is very important to monitor effect of changes on the performance of every employee
which affect all over functioning of enterprise( Rossem and Buelens,,2011). It also affect profit
level and brand image in the mind of customers and market. After implementation of changes in
enterprise, monitor every result and after that monitor if other changes is required. For this
purpose manager should arrange resources and material required. Company can use various
techniques such as connection, review, perception and diverse assignment also. For this purpose
a company can use appropriate methodology.

CONCLUSION
As per the report it can be concluded that for development of a economy of a country,
small business enterprise play vital role. For this purpose business can provide innovative and
new products to customers. Report is focuses on role of small business enterprise, its
functioning, strategies and business plans. Main objectives of this report is to provide a business
plan by which a company can maximise its profits. Report is also includes performance
management strategies which is based to attaining long term and short term goals of enterprise.
At last report is all about policies and strategies for expend the business in various locations of
the country.

REFERENCES
Books and Journals
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and medium-sized enterprise risk management. The Journal of Credit Risk. 6(2). p.95.
Aremu, M. A. and Adeyemi, S. L., 2011. Small and medium scale enterprises as a survival
strategy for employment generation in Nigeria. Journal of sustainable development. 4(1).
p.200.
Bianchi, M. and et.al., 2010. Enabling open innovation in small‐and medium‐sized enterprises:
how to find alternative applications for your technologies. R&d Management. 40(4).
pp.414-431.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: entrepreneurship and small business.
Palgrave Macmillan.
Cerrato, D. and Piva, M., 2012. The internationalization of small and medium-sized enterprises:
the effect of family management, human capital and foreign ownership. Journal of
management and Governance. 16(4). pp.617-644.
Chittithaworn, C. and et.al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand. Asian Social Science. 7(5). p.180.
Donner, J. and Escobari, M. X., 2010. A review of evidence on mobile use by micro and small
enterprises in developing countries. Journal of International Development. 22(5). pp.641-
658.
Fassin, Y., Van Rossem, A. and Buelens, M., 2011. Small-business owner-managers’
perceptions of business ethics and CSR-related concepts. Journal of Business ethics.
98(3). pp.425-453.
Forsman, H., 2011. Innovation capacity and innovation development in small enterprises. A
comparison between the manufacturing and service sectors. Research Policy. 40(5).
pp.739-750.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Gunasekaran, A., Rai, B. K. and Griffin, M., 2011. Resilience and competitiveness of small and
medium size enterprises: an empirical research. International journal of production
research. 49(18). pp.5489-5509.
Schaper, M. T. and et.al 2014. Entrepreneurship and small business.
Storey, D. J., 2016. Understanding the small business sector. Routledge.