Performance Analysis and Expansion Strategies for ZIZZI Restaurant

This report analyzes ZIZZI Restaurant, an Italian chain, focusing on its business performance, strengths, and weaknesses. The report includes a profile of the business, analyzing its strengths like unique decor and charity work, and weaknesses such as high prices and location issues. Comparative financial measurements are presented, comparing ZIZZI with a competitor, Alexander The Great, using profit and loss statements, balance sheets, and financial ratios. Techniques to overcome weaknesses are discussed, including addressing pricing, capital, and location challenges. The report also covers methods for maintaining and strengthening performance, such as maintaining employee relations, creating a healthy environment, and performance appraisals. Finally, it recommends and justifies areas for business expansion, including securing funding, expanding to new geographical boundaries, acquisitions, and offering a wider variety of products. The report concludes with an overview of the impact of proposed changes on the business and its personnel, as well as plans for managing these changes and monitoring performance improvements.

SMALL BUSINESS
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Profile of small business with strengths and weakness ........................................................1
1.2 Analysis of business by comparative measurements of performance ..................................2
TASK 2 ...........................................................................................................................................4
2.1 Techniques to overcome with weakness .............................................................................4
2.2 Methods of maintaining and strengthening performance .....................................................5
2.3 Recommendation and justification of areas for expansion of business................................5
TASK 3 ...........................................................................................................................................6
3.1 Computation existing business objectives and plans of organisation...................................6
3.2 Revision business plans to incorporate appropriate changes...............................................8
TASK 4............................................................................................................................................2
4.1 Report on the impact of the proposed changes on the business and its personnel................2
4.2 Plan how the changes will be managed in the business........................................................3
4.3 Monitor improvements in the performance of the business over a given timescale............3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Small sizes business organisation have employees generally having having less in
numbers around 50-70 they have common motive of fulfilling basic need by engender revenue.
Small business entrepreneur initially have short term goals and and mission to as they focus on
spreading their roots in market. With new government policies coming up focussing of calling
small business working on government contracts they are about to invest £11.4 on these small
business start-ups also easing out licensing procedure for to boost small business sector (Bridge,
2012). According to report it has been observed that around 1 million small business companies
are expected to come up in next 4 years which will boost economy of UK in coming decade.
Hence “ ZIZZI” has come up with a very families face and a attractive restaurant for local
population. This report is segregated into 4 parts helps in explaining the value of small-business-
enterprise and their process of running the firm. This assessment will be highlighting profile and
identity of a company and practical and theoretical analyse its strength and weakness and
overcoming obstacles. This also focus on adapting appropriate strategies for alive and kicking
plan as well as new ones.
TASK 1
1.1 Profile of small business with strengths and weakness
ZIZZI is kind of Italian chain restaurant having 140 branches which can be found in
United Kingdom and Ireland. Their main aim to provide great Italian inspired food in which an
individual have an amazing satisfaction touches unique to local environment. They have menu
including rustica piccante, spiedini pescatore, vegan classic pizza, white chocolate cheesecake
and many more. It is using better technology to provide easy and comfortable services to its
customers as well as do charity work along with it for the maintenance of social welfare to
improve society. For that purpose, they are using Pennies and charity boxes regarding fund
raising programmes in all branches of ZIZZI restaurant to collect amount by providing clients t
tap on option of paying bill increased by their ability and donate to charity funds. They have a
focus towards not only innovations of food but they want to work with fresh talents as well as
renders art and music service also (Schaper, 2014).
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Strengths: The basic strength of any firm is its manpower and resources to work as they
need to utilises in a better way can consider in itself. Some of them are as follows:
 This firm has everything unique regarding decoration, spacing, kind of furniture and
servicing which really attracts new clients and having an important feature is that they
will take care of privacy of each customers which have a positive impact on them.
 They have unique recipes and focus on innovation of food by providing delicious one.
 Its charity work is also impacts in positive way so that people think that if they prefer the
restaurant then will have an opportunity to become a part of charity a well.
 Most of people like background music while eating and this firm have ability to fulfil this
interests in restaurants.
Weakness: It is needed to observe and analyse the threats or problems to solve them
immediately as to avoid loss in productivity or resources (Storey, 2016) Some of weak points are
given below:
 It has range of expensive food regarding new recipes which reduce clients as per their
budget of income and not affordable for every one.
 As they have several branches so that if they want to apply some change then requires a
high amount of money which seems to be difficult many times.
People face problems to reach location of these restaurants which reduces the profit
maximization as well.
1.2 Analysis of business by comparative measurements of performance
Generally, the measurement of performance is necessary to be done as it will help in
identifying mistakes as well as to evaluate performance of employees regarding standards of
performance decided by superiors to attain the targets and objectives of organisation. Sometimes,
they can calculate working efficiencies of an organisation by comparing it with any other
competitive firm to attain better productivity and make strong competitor in market (Goffee,
2015).
Comparative measure of performance using financial factors
Profit and loss account for year ended 30th April 2016 to 30th April 2017 are stated in the
below table.
Alexander The Great Zizzi
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£ £
Sales 150 300
Cost of Sales 80 180
Gross Profit 70 120
Overheads 20 50
Net. Profit 50 70
Balance sheet of “Zizzi” restaurant for year ended beginning at 30th April 2016 to 30th
April 2017
Year 2016 (value in £) 2017 (value in £)
Set possession 20 15
Inventory 8 20
Debtors 15 40
Bank 2 0
Entire 25 60
Creditors 6 20
Bank bill of exchange 0 15
Full 6 35
Current ratio = current asset / current liability
2016 2017
Net profit margin = net profit/ net sales * 100
40 / 130 * 100= 30.7
Net margin = 45/ 250*100= 18
Gross profit margin= gross profit/ net sales *
100
50/130*100= 38.46
Gross margin = 60/250*100= 24
Quick ratio = current asset – stock/ current
liabilities
25000-8/ 6000= 4.165 times
Quick ratio = 60000- 20/ 35000= 1.71 times
Current ratio= 25000/6000= 4.16 Current ratio = 60000/35000= 1.71
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Balance sheet of year ended 30th April 2016 and 30th April 2017 of Alexander the great
restaurant is described below:-
Year 2016 (value in £) 2017 (value in £)
Fixed Assets 20 15
Current assets
Stock 9 20
Debtor 12 36
Bank 3 0
24 56
Interpretation: As per above data, it is mention that Zizzi is much better company as
compared to Alexander The Great. Zizzi have better turnover than other one. sssssss
TASK 2
2.1 Techniques to overcome with weakness
This is a mandatory task to identify threats and problems to overcome with them because
they affects negatively for attaining missions and objectives of firms regarding outputs of firm. If
the firm will cope up with its weaknesses then they can increase opportunities of success and can
attain more profit as expected by assumptions. This task is basically done by supervisors but
employees can provide information about problems arising due to working hours to solve them
at a time to avoid delayed projects as it reduce satisfaction of clients which may results in
decreasing customers of an organisation. Some of overcoming factors are as follows:
 Pricing issues: People make buying decisions only when the quality of product is good
then another factor is inter related which is price of product because a person can only
prefer particular product when it is affordable by them according to their budget of
income. So it is necessary to improve the qualities in cheaper rate to make it comfortable
to buy for customers. Overall it should not be more expensive because it reduce
costumers which turns to decrease profitability of firm.
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 Sufficient capital: If it is needed to implement some new changes as per demand of
current trends of market then huge amount of money desired because of having several
branches at different areas. The firm have to maintain margin of capital by kept in mind
needs of all branches so that they can overcome with urgent wants and issues.
 Location Issue: Many times customers find difficulty to reach at several branches of
restaurant so that branch owners have to take care of providing proper address of the
same because it results in reducing clients (Burrows, 2015). The fact is that people prefer
some other restaurant if they will face more problems to reach location so it will affect
profitability of organisation as well as renders negative impact of it amongst the clients.
2.2 Methods of maintaining and strengthening performance
It is an important task to observe and analyse performance of employees to overcome
with threats and issues because it may be results in huge loss of money as well as resources and
the profits assumptions will also get affected by them. Sometimes, it is observed that issues may
convert into a big loss as in case of money as well as resources or machinery provided in
company. It can be detected as wastage of resources as well as manpower and they need to solve
all that to attain a better output regarding firm's goals and objectives. Overall the organisation
have to take appropriate actions to cope up with problems and issues. Some of actions are given
below:- Maintaining employee relation: It is very necessary to build up good relations between
colleagues as well as between superior and sub-ordinate then both them feel comfortable
to do work together and they can share their ideas and views with each other for a better
performance. By creating a healthy a relation, it will become quite easy to avoid conflicts
because they have a negative impact on output expected to achieve in future Creating healthy environment: A healthy environment is basic factor to maintain
performance level as the employees can work peacefully without stress so that they can
work more effectively and efficiently. Every firm has its own particular environment
regarding its manufacturing strategies and policies which reflects the environment to
employees or new joiners. If a person feels comfortable then only they can work
efficiently on an organisation and utilise their skiils and abilities more effectively.
 Performance appraisal: the superiors have not only a task to give orders to its sub-
ordinates but they have to conduct appraisal sessions by providing some rewards or
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bonus or communicating with appraising words to motivate them. These sessions are
necessary to build up and maintain morale of workers so that they will improve their
skills and abilities to provides better outputs in limited period of time.
2.3 Recommendation and justification of areas for expansion of business
Expansion and growth are important objectives of businessman and entrepreneurs for
small scale organisation but what are important factors which could help in expansion of
business by less effort and gaining more .It cannot be considered as a cup of tea but require deep
analysis and study by experienced and specialised people to attain for procurement of target.
Manager can expand business of ZIZZI restaurant by adopting and analysis some smart features
cost -Funding is an important feature of every business the targets can be achiever while having
adequate capital for investment.
Foremost feature of an entrepreneur is requirement of sufficient fund needed in business
and plant it to invest efficiently.
Expansion to new geographical boundaries -the ideas behind this is to sell product to
customers of new market .The important criteria which must be taken care is those new
customers can be of different segments,locations and niche (Blackburn, 2013).
Acquisitions – It is recommanded as faster way to for growth and expansion. The small business
are tend to acquire smaller business hence making it a cost effective factor as cost of
infrastructure and other inventory are tend to be cheaper.
Selling more variety of products - A Italian based ZIZZI apart from expansion can try new
variety of food in their menu which will surely attract more customers and may increase chain
of customer added to expansion procedure.
Promotion – It is regarded as one of the best food restaurant in terms of food so a good effort of
promotions through printed media and visual media as well as through providing discount and
fast home delivery will help organisation to penetrate deep into market of all over UK.
Current trends –Apart from analysing niche of customers in society they must also understand
chancing demand of food and tastes of people . Not only fast food they must also focus on other
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types of foods like meals and fast foods. They must understand that expansion must not be profit
driven activity bust also must be customer oriented.
TASK 3
3.1 Computation existing business objectives and plans of organisation
Strategies are regarded as an momentous part of every enterprise which help in setting
up objectives ans implementation of plans which whelps in achieving target in minimum period
of time. Strategies are made differently for short term and long term goals which helps in
focussing on in capital maximisation for both profit and wealth maximisation criteria. For
making this type of plan they need a superior vision mission, core competence, qualities and
defined objectives. The objectives which have been adapted and implemented are as follow
Employees perception-
 The important aspect of workers is to work in positive and healthy environment while
trying to create a friendly and harmonic relationship with fellow employees ,they can do
so by creating resonance and support in achieving defined target.
 They must wish to have perks , appreciations , remuneration,emolument and
compensation
 Embellishment and improvement in their skills (Olson, 2012)
Buyers prospective-
 Desire for hygiene and paramount quality of food is considered as the first and foremost
priority of customer.
 Wish for friendly environment and good services.
 Good presentation of food with extra adroitness e.g. Extra cheese, napkins , ketchups.
Objectives and equitable of shareholders -
 focus on promotion activities and branding to spread business all over UK.
 Maintaining long term investments plans with organisation helps in making strong
bonding between them ,this mutual bonding will help both investors and businessman .
 Helps in maximizing dividends by planning to have maximum dividend.
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 Wish to have stable market so that the company can challenge bigger competitors and
grow rapidly having accepting right ethical policy.
 They must expect company must provide outputs as per the marketing and branding
which will be helpful in gaining and controlling of bigger market in a rapid way.
3.2 Revision business plans to incorporate appropriate changes
A good and productive business plan helps in fetching more gain in market place this
will help in implanting good strategies and ultimately increase success in business of the
organisation. The revision helps in increasing efficiency in covering all factors related to
business which plays a very prominent role in achieving objectives of organisation. Through this
process managers can identify abstruse and clandestine issues which can create obstacles in
attaining business objectives. Main ratiocination behind this process is to ameliorate current
plans per customer demands and choices. Other important factors like external and internal
environment are also used while making decision for reducing losses and obstacles other then
this firms also try to expand their business in different geographical and demographic areas
where they face subsequent risk in business due to non availability of resources and presence of
competitors in marketplace main competitor for ZIZZI is Alexander which is also providing best
customer services. Other major factor of revision of business plan is to fulfil all demand
according to requirement of market. The emend must be on overall scheme accordance with
current need expectations of customers and overall association. By revision they must ensure that
all the areas are covered and even a single corner of analysis cannot be kept vacant. For revision
they must use certain analysis tool for analysis and revision of there plans and strategy more
efficiently . Certain analytical tools like SWOT, PESTAL are the the key theoretical analytical
tools and for mathematical calculation to carry-out practical analysis they use ABC tools .
These tools have an advantage of carrying out of analysis of every areas separately hence
making the process of rectification and giving solution must easier. It is therefore necessary to
revise the implemented plans on regular intervals to make changes according to the needs.
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3.3 Prepare an action plan to implement the changes
On the basis of above interpretation ZIZZI need to make strategy for executing
complete plan with the help of experienced and highly educated persons. Action plan should be
written in a proper manner as it draw policies to achieve the sustainable goals. On the same hand
implementation also require proper design of plans and measurement. It is accomplished with the
the help of vision and mission of customers or employees which should be aligned with the
organization. Implementing the action plan is challenging process for any of the business for
fulfilling the demand of the employees as well as the society. Therefore the proper allocation
should be done which is explained as below:
Task Duration
Programme and action 4 to 6 days
Revised prepared business plan 6 to 7 days
Evidences linked with fresh goods quality services 3 days
Searching of mandatory resources or assets in
competitive market area
3 to 4 days
Sorting of Competitor commodity 2 days
Contraction in modern area 5 days
Selection of new buyer markets 3 days
Mix creative goods and services with group of
commercialism
6 to 7 days
Hire learned and skilled employees who are
specialised in hospitality section
2 days
Supply vision and mission to employees and
customers
1 day
Draft SMART objective and goals 1 day
Extension of company for making partnership
venture.
3 to 4 days

Extending incentives, commission, rewards to the
employees
Half and hour