Analysis of Zizzi Restaurant: A Small Business Enterprise Report

This report presents a detailed analysis of Zizzi Restaurant, a small business enterprise. It begins with an introduction to small businesses and an overview of Zizzi, including its founding, locations, and services. The first task involves a profile of Zizzi, including its strengths, such as its strong financial po...Read More

Small Business Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1Exaplain profile of Zizzi restaurant and its strength and weakness ......................................1
1.2 Comparative measures of performance.................................................................................2
TASK 2............................................................................................................................................5
2.1 Recommendations how to overcome with weaknesses........................................................5
2.2 How to maintain existing performance.................................................................................6
2.3 Recommendations for expansion..........................................................................................6
TASK 3............................................................................................................................................8
3.1 Assessment of business objectives and plans........................................................................8
3.2 Revision of business plan .....................................................................................................9
3.3 Action plan to implement changes........................................................................................9
TASK 4..........................................................................................................................................10
4.1 Impact of proposed changes on business and its personnel................................................10
4.2 Planning for managing the change......................................................................................11
4.3 Evaluate improvements in the performance of Zizzi restaurant.........................................11
CONCLUSION .............................................................................................................................12
REFRENCES ................................................................................................................................14

INTRODUCTION
Small businesses are known as those enterprises which are owned and controlled by local
owners. There are very few employees and does not have high sales as well as profits. Such
enterprises are come up with new and innovative ideas in market, their main aim is to attract
many customers (Storey, 2016). Zizzi is the chosen organisation in this present report that is
small business organisation of United Kingdom. It was founded in 1999 and it has 140
restaurants across UK. Apart from this, the present report will be describing strength and
weaknesses of cited company. There will be discussed that business entities must create some
actions in order to overcome with weaknesses. In addition, ways of managing current
performance of the firm are also explained briefly. This assignment will be involved that
managers have to make some actions plans to implement some changes in their organisation.
TASK 1
1.1Exaplain profile of Zizzi restaurant and its strength and weakness
The main focus of small size organisations is on customer’s taste and their choices by
fulfilling their needs in sufficient manner. Zizzi restaurant is famous in UK that is popular for its
interiors, it has variety of food, drinks, beverages which can attain many people. The food chain
is maintained is quality since its starting because its main motive is to serve values to their
customers. It has strong goodwill in UK market, Zizzi continuously develop its strategies and
policies in order to gain high market share and growth. It also provide hospitality services to its
buyers i.e. luxurious rooms, dinning services, spacious lounge. The firm also provide travelling
services to their clients so as they can get full entertainment during holidays.
Below mentioned the profile of Zizzi restaurant is stated as follow: -
Name Zizzi
Served area Italian
Establish 1999
Chief executive officer Steve Holmes
Timings 10.30 AM to 11.30 PM
Menu Spicy nuts, zucchini bites, drinks, fast food, lunch etc.
Website www.zizzi.co.uk
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Address 20 Bow street, London, WC2E 7AW.
Stores 140 stores in United kingdom.
SWOT analysis of Zizzi restaurant: -
STRENGTHS
Prime strength of Zizzi restaurant is it has
strong financial position as company has
covered large market share.
Good management capabilities and the
company used effective marketing techniques.
Cost efficiency through the use of logistics
centres.
Good strategies and policies
Catchy decorum that helps in attracts wide
range of customers.
Zizzi spend a lot on market research through
which it can easily know customers needs and
wants (Schaper and et. al., 2014).
WEAKNESSES
It only offers inorganic and processed food
line.
High employee turnover.
Zizzi have less brand equity.
The company has limited budget as it cannot
spend more on brand awareness.
OPPORTUNITIES
Customers needs and demands are rapidly
change it can gives a company to spread their
ideas and innovations in target market.
Increasing sales helps a business to take out it
at international level.
THREATS
Due to economic recession, customers' spend
less on food products.
There are many restaurants are opened in UK,
with new and innovative ideas.
1.2 Comparative measures of performance
Comparative measures of performance can be done by using financial factors: -
Profit and loss statement for the year 30th April 2016 to 30th April 2017: -
2016
£
2017
£
Sales 150 250
2

COS 100 180
Gross profit 50 70
Overheads 20 25
Net profit 50 110
Balance sheet for the year 30th April 2016 to 30th April 2017: -
YEAR 2016 (Value in £) 2017 (Value in £)
Fixed assets 25 20
Stock 15 25
Debtors 10 30
Bank 3 0
Total 28 55
Creditors 8 15
Bank overdraft 0 10
Total 8 25
Current ratio = Current assets/ current liabilities
2016 2017
Net profit margins= net profit/net sales *100
50/150*100 = 33.33
110/250*100 = 44
Gross profit margin = gross profit / net sales *
100
50/150*100 = 33.33
70/250*100
= 28
Quick ratio = current asset – stock/current 55000-25000/25000 = 1.2
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liabilities
28000-15000/8000 = 1.625
Current ratio = 28000/8000 = 3.5 55000/25000 = 2.2
Profit and loss statement of Tickles for the year ended 30th April 2016 to 30th April 2017: -
Sales 2016 (Value in £) 2017 (Value in £)
Sales 120 250
Cost of good
sales
80 180
Gross profit 40 70
Overheads 15 30
Net profit 35 50
Balance sheet for the year ended 30th April 2016 to 30th April 2017: -
Year 2016 (Value in £) 2017 (Value in £)
Fixed assets 25 40
Current assets
Stock 10 25
Bank 5 0
Debtors 15 35
30 60
Current ratio = current assets / current liabilities
Year 2016
30000/6000 = 5.00 times
Year 2017
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60000/20000 = 3.00 times
Quick acid test ratio
Year 2016
40/120*100 = 33.33
Year 2017
70/220*100 = 31.81
The balance sheet comparison is made between two years in which there profits have been
increased while they have compared from the past years. The current ratios have been increased
by five times thus they have seen a growth in there business operations.
TASK 2
2.1 Recommendations how to overcome with weaknesses
Due to some major weaknesses a business organisation cannot be performed in target
market. Because it influence its internal as well as external market position. If a restaurant wants
to be successful then it needs to be develop some effective strategies and policies which are
helpful a company in order to accomplish its goals and objectives. Therefore, managers of Zizzi
restaurants have to regulate various techniques in order to overcome with these barriers that will
impact upon its future growth and success. There are given some weaknesses on which cited
restaurant must work: -
 Lack of venture capital through which company cannot promote itself in target market.
 There are many substitutes available in market that affect greatly on products and
services of a business entity (Ackermann, 2012).
 Lack of flexible communication among top to bottom level, therefore employees cannot
express their ideas and thoughts easily.
 Zizzi restaurant has no experienced as well as well skilled employees.
Below mentioned some recommendations that helps a company to overcome with these
weaknesses: -
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Listen properly – it is very essential for company to listen all problems and issues of their
employees. So as it can understand needs and perception of these staff members. If the flow of
communication is very strong as well as flexible among all levels as it will contribute in growth
and success of the company. Apart from this, effective management of communication helps in
reducing stress of workers then they can perform well. Hence, the firm is able to achieve its
goals and objectives.
Be aware of cultural differences – In this growing world, it very difficult to know people interest
and their preferences. In a business organisation, people are come from different cultural,
religion, race and caste. Thus, it is moral responsibility of managers is to understand employees
choices and tries to provide them safe and healthy working environment. In addition, any
information and messages would not hurt the values or beliefs of any worker.
Develop effective marketing strategies – In order to gain high market share, small business
entities have to focuses on adopting effective marketing strategies. It involves, conducting a
market research to recognise buyers demands and wants. Market research is also assistive in
retaining existing buyers towards firm (Bridge and O'Neill, 2012). If the firm is able to know the
same then it can easily attract many customers.
Ensure proper feedback – to overcome with weaknesses adequately, managers have to take
timely feedbacks and reviews from employees as well as buyers. In addition, it helps in avoiding
misinterpretation and mistakes by gathering all facts or data. Zizzi have to conduct surveys so as
to know customers perception i.e. what they think about company's products and services.
2.2 How to maintain existing performance
Below mentioned some ways by which a company can manage its current performance in
potential market: -
High productivity – A company can maintain its performance and market reputation by
producing high volumes and reduces wastage. It also needs to focuses on providing quality
added goods and services to its potential customers. If customers are getting value added trades
as they can easily attract towards company that helps in increasing sales and make higher profits.
This may result, Zizzi restaurant will also get loyal customers.
Team work – It is more profitable to work in a team rather than individually. Apart from this,
team work helps in maintaining cordial relationship among people and gives better results. In
addition, teamwork also helps employees as they can perform effectively without any pressure.
6

Employee involvement – This is also another method that could maintain current performance of
the company. Managers have to involve all employees in their decision making processes. It
makes feel them as they are the essential part of a company. Apart from this, employers also
have to provide education and training in order to achieve better quality results. This may results,
small enterprises are able to compete with their competitors and contribute to attain better
outcomes.
Managing healthy relations – It is very necessary for a company to manage relationship with its
potential customers. Such people are the key factor of market growth and success. They manage
healthy and positive relationship with buyers is helpful to achieve goals and objectives of the
company in effective manner.
2.3 Recommendations for expansion
In this competitive world, it is too difficult for small businesses to expand their market
area. They are faced many difficulties and issues while performing at global level. Some major
recommendations are given for growth and expansion of SME's, such are stated as under: -
Develop a strategy and business plan – If any small business organisation, wants to expand its
market share then it needs to develop its strategies and marketing plans which main focus is on
attracting potential buyers. The plan needs uncertainties and cost outlays. In addition, business
plan also include some aspects which makes able a company to perform in global market.
Start a chain – A small business restaurant chain focuses on how to extend its food chain. For
that it have to establish its branches in other countries. It will also gives an opportunity to a
company as it can execute in global market. Through, small businesses can easily achieve market
growth and success in a certain time period (Rafols and et. al., 2012).
Introduce new products – Small food chains always emphasis on that how to attract new buyers
towards company. For that, the concept of new product development is beneficial to them. Now
a days, customers are tend towards to organisations which renders them something new and
innovative. In addition, Zizzi restaurant should make inventions in their food products and
deliver something unique that is able to fulfil their needs and demands.
Zizzi restaurant also adopt this strategies in order to enhance its market area, which is
described as below: -
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ANSOFF matrix: - This market growth strategy helps a company extend its market share
and growth. ANSOFF matrix is able to provide an official structure to all marketing activities of
the firm; it also helps it in developing some schemes, such are define as below: -
Market penetration – In this strategy, the firm tries to use its current products for growing in
same market. It helps in selling more customers and also find new buyers for the company.
Market development – In helps companies to perform in new market, with their existing offers.
Market development strategy is useful where a firm has novel techniques which is gives it
leverage over the new market.
Product development - The main aim of new product development strategy is to target current
markets in order to accomplish growth and development. In that, business entity has variety of
new products which can attain many customers.
Diversification – In that, business organisations are increased their market share by supplying
new goods or inventions in potential markets.
TASK 3
3.1 Assessment of business objectives and plans
It is essential for small business enterprises, to identify vision, mission, objectives and
business plans. This will help them to prepare strategies accordingly. The main motive behind
introducing new offerings are profit maximisation. Below mentioned business plan of cited
restaurant is stated as: -
Vision of staff
Implementation of healthy and safety activities which can protect or secure employees from any
injuries.
In order to increase staff members' knowledge and skills, Zizzi restaurant have to provide
training and development programmes to them. This will aids a company to compete with
external market threats.
Be supportive for workers as they can encourage and motivate to perform in a particular task or
project.
Consumer vision -
Developing a healthy and positive relationship with buyers as company can gain a key group of
loyal customers.
Satisfying customers needs and demands as they are the end users of the goods.
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Objectives of shareholders: -
Increasing stock values by investing in revenues
Maximise market share by 15% for above 5 months.
Increase sales and profits by 30%.
Emphasis on company's ontogeny and development.
Investing money in different areas so as to gain competitive advantage.
Business plan – An effective and efficient business plan is helpful in accomplishing aims
and targets of the company in a certain time period. The plan forces workers as to work
accordingly as per setting activities and time schedule. Therefore, all above referred strategies
are rely upon business plan. It involves future cost and time schedule that are much necessary for
Zizzi restaurants in order to finishing activities. Therefore, a business plan is an overview that is
able to attain vision and mission of Zizzi restaurant. Although, the plan is systematically
developed and it is also considered relevant facts and figures (Griffin, 2011).
3.2 Revision of business plan
Business planning is very important important technique which is used in gaining future
market growth and success. It also helps in finishing all operations and activities in a minimum
time frame. Revision of business plan is the concept in that managers can overview again all
strategies and tools which are involved in it. All of this can be done through by experts and
professionals. In addition, revising a business plan is assistive in satisfying demand of
individuals as well as overall communities. Employers of cited organisation, must modify the
plan regularly as per the reformation in buyers wants and changes in market trends. Modification
of business plan involves these stages, such are described as below: -
Research methodology – Implementation of various research activities is helpful for managers as
they can easily get essential information and data which is required.
Recruitment and selection
Diversification
Monitor the performance
Control
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3.3 Action plan to implement changes
It is important to analyse short term and long term goals or objectives which help to
evaluate task or work which are based on preferences. Workers of company can evaluate skills
and knowledge of their co workers. This is business plan which help to prepare task and duration
of zizzi restaurant.
Tasks Duration
1. Business Plan of Zizzi restaurant 5-10 days
2. Implementation of collected data or
information
10-15 days
3. Allotment of necessary resources 10-20 days
4. Recruit skilled and knowledgeable
candidates
5-10 days
5. Estimate future cost of each task 2-5 days
6. Feedback process 5-10 days
7. Date of action Begins at 20th July 2017
8. Date of completion Ending at 28th Sep 2017
Above mentioned report describes that the task must be finish at date of completion. The
main objective of above report is to applied business plan in an effective manner without wasting
any amount. It is an act which is useful to achieve goals and objectives and they need to analyse
different techniques and technologies. Zizzi restaurant try to grow in small business enterprise
that satisfy need and wants of customers in an effective manner. The organisation need to
organise business plan which enhance profitability and productivity.
There are some steps which help to evaluate or implement action plan are as under:
 Firstly, all organisation need to evaluate business strategies which are necessary to
develop products and services in an efficient way.
 This is the first preferences to decide location or area.
 Then identify customers needs and wants to satisfy them.
 Some essential resources are required to implement action plans and policies for finish
specific task and work.
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TASK 4
4.1 Impact of proposed changes on business and its personnel
An impact of proposed change are directly affects the business operations in internal and
external environmental factors. Zizzi restaurant change their business plans and policies which
enhance growth and development. There are some impacts which affects on business and its
personnel are as under:
 Finance- The changes are necessary for every organisation. It provides growth and
progress to their employees or workers. Zizzi restaurant satisfy their customer need and
wants in an effective manner.
 Organisation structure- There are some important modification which analyse job profile
of an employee. The effective action plan should motivate and encourage workers to
achieves goals and objectives. It is necessary to maintain organisation infrastructure
which help to attracts employees in an effective manner (Rowley, 2013).
 Workloads- An activity is designed in that way which help to evaluate business function
to achieved goals and objectives in an efficient manner. The zizzi restaurant manage their
workers and reduce their workload to provide them different activities.
The customers need quality products or services which improves company image in the
mind of potential consumer. They directly focus on the special techniques and technologies
which should be adopted.
4.2 Planning for managing the change
Zizzi restaurant need to adopt new techniques and technologies which enhance
employees skills and knowledge in an effective manner. It help to enhance workers participation
and coordinate them. An enterprise should evaluate customers needs and wants to increase their
employees or workers. The most important factors that need to analyse in different way which
evaluate current and future position of business. The Zizzi apply kotter eight model of
management for successful process. They are as under:
 Create
 Institute
 Sustain
 Generate
 Enable
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 Enlist
 Form
 Build
4.3 Evaluate improvements in the performance of Zizzi restaurant
Creating improvements is the essential part of business organisations. We can say that, it
is an imperative part which provides quality of assuming future growth. Improvements are
specially affects on the profits and benefits of cited firm. Variations in business associations are
ought to be seen in their outcomes; a company adopt some tools and techniques in order to
improvement performance and productivity of employees. Therefore, a business plan is made as
per the objectives of the company in order to analyse performance of staff members: -
Objective 1: - Employee motivation
Action Priority Benefits Material
resources
Timescale Responsib
ility
Success
factor
Monitoring
strategy
Regulation of
training and
development
programme
Essential Enhancing
workers
skills and
capabilitie
s
Money 2.5 weeks Human
resource
manager
Timely reviews
and feedbacks
Objective 2: Implementation of health and safety activities
Regulate
health and
safety
programm
es
Important Reduce
injuries
and
accidents
of
employees
UI
network of
safety
provider
1.5 weak Departme
nt of
health and
safety
Hazardous
control
and
prevention
s
Risk
evaluation
Objective 3: Create a strong bond between employees and consumers
Conductin Most Create a Promotion 5 – 6 weak Marketing Increase Surveys,
12

g surveys
and
market
research
important key group
of loyal
customers
and
advertisin
g
and sales
departmen
t
sales and
profits of
the
company
face to
face
interaction
and
personal
interviews
with
customers.
CONCLUSION
As per the above report it has been evaluated that small business enterprises are owned
by by single person who is responsible for all activities which are conducting at the work place.
Small business put their all efforts in order to reaching at higher position to increase their profit
and growth. It is very much essential for firm to analyse their business activities at regular basis
i9n respect of improving their performance. They adopt various marketing strategies for attaining
competitive advantage at market place and provide high competition to their competitors.
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REFRENCES
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medium size enterprises: an empirical research. International journal of production
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innovation. Small Business Economics. 39(4). pp.897-907.
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input–output data. Science of the Total Environment. 409(5). pp.883-891.
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entrepreneurship. Journal of small business strategy. 7(1). pp.1-20.
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organizations’ resilience. Natural hazards review. 14(1). pp.29-41.
Carney, M., and et. al., 2011. Business group affiliation, performance, context, and strategy: A
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Rafols, I., and et. al., 2012. How journal rankings can suppress interdisciplinary research: A
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