The ABI College small business enterprise assignment is based on the small business enterprise. The assignment has been divided into 4 parts. Part 1 would be discussing on an investigation of the performance of the selected business enterprise. Part 2 would propose on the changes that could be incorporated to improve management and business performance. Part 3 would be developing of the revised business objectives and then planning for the incorporation of the proposed changes into the system. Part 4 would be examining on the impact of change management on the operations of the business carried out in the small business enterprise. Through this assignment we will be able to get a deeper insight on the operations, planning and the business management of the smaller business enterprises and their respective policies and the plan of action. We will study on how to monitor and control their success and the development.
LO1 Be able to investigate the performance of a selected small business enterprise
Under this a discussion would be carried out on the current performance of the small business with its strengths and weaknesses and even analysis of the business of this small enterprise would be carried out for the comparative measures of the performance.
LO 1.1 Produce a profile of selected small business identifying its strengths and weaknesses
Small Business Enterprise are said to be owned privately by the partnerships, corporations or as the proprietorships concerns. The example of the small business enterprise is The Festival Theatre Trust. This is a trust that is responsible for the management and operations of the two major venues of Scotland. These are the Kings and the festival in Edinburgh. This trust was set up in the year 1998. Being a small business enterprise but has a largest set up of management of independent theatres. The Festival Theatre was opened in 1994 and comprises of over 2500 sq.ft. of area. Kind Theatre was built in 1906 and comprises of a sitting capacity of 1350 seats. This trust has a board of trustees which work together in partnerships to take care of the two theatres and satisfy their needs and requirements in terms of growth and development in designing, developing new business strategies and attracting more customers and clients.
Strengths of SBE
- Due to its small size it keeps a direct contacts and public relations with various customers and the clients. It has wide area in terms of the concentration and the level of operations of the business activities (Moen & Servais, 2002).
- It keeps a consistent effort for the innovation. They are the ones who are bringing about innovation, creativity and the changes as per the changes in the global business environment.
- Due to smaller size, the company is able to concentrate on each and every employee understanding its employees, providing them motivation, benefits and resolving their queries at the earliest.
- It has a strong commitment and stability in the market due to smaller size and effective management. The company has a strong focus and attention to the areas that have to be operated and managed well.
Weaknesses of SBE
- It has a thinking that always remains static. Being at a smaller size, they are able to think at a smaller scale of operations only.
- It always faces the problems related with the succession, growth, progress and enhancement. They have a slower vision, progress and the mission of action due to smaller orientation and planning approach.
- It has no or lesser access to the markets that are of capital types. This is due to their local and direct operations for which they are not able to target bigger markets.
- There occur difficulties on the managerial front when the business objectives of the family come in conflict with that of the growth and development.
LO 1.2 Carry out an analysis of the business using comparative measures of performance
The festival Trust is a Small Business Enterprise that has a contact and link at a smaller level with the set that is also small. When the organizations are smaller than the level of performance is also smaller compared with the large set up organizations. If this smaller organization is viewed then it could be said that the organization is succeeding and performing well in all the areas due to small and manageable set up. It has only 2 theatres that are easily managed in terms of its operations, design and overall set up. Besides this it has been having almost negligible attrition rate and the employees are working in it for a longer time. This shows that company has been taking care of its people both internal as well as external through introduction of effective policies, benefits and facilities. The company has a stable relationship among the people who have been running it throughout. It has successful strategies implemented in it that encourages people to be attracted for these theatres. This organization has always performed to its best by the application of the correct principles and the analysis and implementation of its core values and practices (Quazi & Padibjo, 1998).
LO2 Be able to propose changes to improve management and business performance
LO2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in business
Although SBE is successful in the way of effective management and operations of the business in their respective industries yet the weaknesses that it encounters could be overcome in the following ways:
- Selection of the best location for SBE – Sometimes these organizations behaviour as land up in the selection of the odd location but through strenuous efforts in identification of the right target audiences, they can easily select the best location of their choice. When the location would be good and target the right set of audiences then the revenues and the profitability is definitely going to increase at an increased rate.
- Proposing, Raising and Budgeting the correct capital and fund for the management and operations for the entire year – Instead that the capital needs and funds requirements are analysed in the mid of the year, it is best to propose and forecast the requirements and accordingly predict for the fulfilment.
- Making Effective arrangements for credit facilities for SBE – Once the SBE has the credit arrangements then even if any immediate or uncertain need will arise then it will be able to fulfil them.
- Managing the inventory, raw material and the goods effectively and efficiently –There would not be any wastage of the goods, inventory and the raw material. They have to make sure that they do optimum utilization of resources, inventory and the raw material (Vives, 2006).
- Developing experienced competent and skilled manpower and pool of the employees – These people will guide through their experience and knowledge on the correct action plan that they should follow.
LO2.2 Analyse ways in which existing performance could be maintained and strengthened
The ways in which the existing performance could be maintained and strengthened are:
- Reviewing the business performance on regular basis. This would help in keeping a track of all the services and products which are liked and preferred by people and accordingly making improvisations in them.
- Utilization and application of the core strengths and competencies of the business.
- Developing and enhancing of the efficiency of the business.
- Conducting, comparing and improving the competitor, understand business strategy and market analysis.
- Review and improvisation of the business goals, objectives and accordingly changing the processes, practices and the techniques in business.
- Following the benchmarking models and even breaking down the strategic goals into simpler parts for better and efficient achievement.
LO2.3 Recommend with justification, new areas in which the business could be expanded
Although SBE is very particular on the way it has been operating its business yet through expansion in the new areas of business it could expand its operational activities and business:
- Based on responses of the clients and customers, making improvisations in the services and opening up of more outlets in another location.
- Doing a business franchisee or opportunity for others so that they could take up the tasks.
- Taking the licensing and appropriate framework for the products and services that the business deals in.
- If necessary developing of alliances with other companies on the basis of their core competencies.
- Diversification of the business.
- Following and abiding of all the rules, regulations and legislations of the local government and taking their confidence.
- Developing and implementing the retention strategies for various customers and the staff that work or take benefits from the organization.
- Keeping focus on the business objectives, goals, guidelines and the action plan that has been developed for performance.
LO3 Be able to revise business objectives and plans to incorporate proposed changes
LO3.1 Produce an assessment of existing business objectives and plans
This company has a target of taking care of the quality management and operations of the two theatres that are the King and the Festival. The business objectives are ensuring that they are targeting the right business segment, target audiences and the customers . It has to make sure that there are enough availability of the capital that could be re-invested to produce the best results of required even in the mid of the year when the pre-proposed budget will not exist. The business plan would be to develop the company in terms of its designs, rising of the revenues, profitability and the income from the company from all perspectives. It has the plan and objective to take care of the levels of satisfactions of the internal as well as the external customers who are associated with the company.
LO3.2 Revise business plans to incorporate appropriate changes
The plan for the business is said to be a blue print on which the company operates. In case the blue print would be correct then it will help in the proper growth, plan of action and control of all business segments and the areas. The business plan would require change in terms of the correct environmental and market scanning and developing a plan to grab the market share as much as possible. In order to expand further, the company can easily set up its standard operating procedures that could be given to various people who would like to take up the franchises and operate with the same company names and standards of operational activities. The major focus should be on the enhanced and correct marketing strategy and the expansion plan. This would be done with a special focus on the marketing, advertising and the organizing of the sales promotional activities and plan of action. The most important plan change would be review analysis of the progress of the company in all fronts.
LO3.3 Prepare an action plan to implement the changes
The action plan helps in following the correct plan or path of action that will follow for the organization. It would be done by first promoting, spreading awareness and taking the correct action plan for the marketing of the company. This will help in making people aware of the various activities and supporting independent choice that the company does. This will help the potential and proposed clients and the customers to take the required action to apply for the franchises and the interests in the business activities. Then there should be development of the Standard operating procedures, plan of action and the proposed strategies that could be used and applied in correct ways. By making the improvisations on regular basis in all the areas, the company would be easily able to set up its operations and manage them effectively.
LO4 Be able to examine the impact of change management on the operations of the business
In this section, discussion would be carried out on the major impact of the management of the change on the business operations. This would also discuss on the plan of action whereby the various changes could be managed and planned out. We will also monitor the improvements in the business performance with the given and stipulated time scales.
LO4.1 Report on the impact of the proposed changes on the business and its personnel
Every business grows with the action plan and proposed changes that it has made for itself. It has been seen that the proposed changes will help the company develop from the long term perspective. It will help in the great learning, training and development of its employees and the people. When there would be special focus on the various strategies and the processes, the employees would become streamlined and directed. The flow of the information and the business plan would be going in a correct direction and there would be achievement of goals in all perspectives. The proposed changes would help in the attainment and achievement of the goals in a specified way and will help in short term as well as long term progress of the employees and company as a whole. The changes will make the overall environment healthy, successful and achievement oriented so that specific areas remain attended to (Jutla et al, 2002).
LO4.2 Plan how the changes will be managed in the business
Changes are required to be incorporated into the system and unless they are built, there would always be fall in the success level for the company. The changes could be managed in the business through the following ways:
- Monitoring the process of the implementation of the plan of action that is enforced into the business and the system. This will help in reviewing the plan and then comparing it with the one that is desired to be obtained and achieved.
- Based on the monitoring process in case any further changes and the improvisations have to be brought about then that would be done on priority. The setting of the priority will help in assigning the areas that have to be attended on priority and resolved at the earliest.
- Generating the progress report and discussion on the areas that are still remaining under the category of non-performance or under-performance.
- Comparing the expected results with that are actual or achieved ones – This would help us in mapping the areas that remain unaddressed and have to be attended at priority.
- There should also be carried out a review on the progress of the people and there should be a program to inbuilt the capabilities, capacities, competencies and the strengths in them. This will help in assessing the areas that are progressive or remain un-progressive due to non-response of giving the areas of concentration and commitments to them (Sum et al, 2004).
- Taking the suggestions, feedback and the comments on the performance of the business from the clients and customers so that the areas that are beneficial and when applied would help in further progress and development of the organization as a whole. This will not only help in the shorter period of time but even in the longer run so that progress could be achieved.
All these steps will ensure that the company follows the right action plan so that the business plan is successful and reviewed on regular basis for the improvisation and correction process. This will further builds the business and help it to achieve success and growth chart in longer period of time.
LO4.3 Monitor improvements in the performance of the business over a given time scale
There is a greater need for taking risks in case the business has to be successful. It has been visualized that the greater the level and the number of risks that are taken, the greater would be the return on investments and the level of progress that is achieved. There has been an increased rate of competition in the market and based on that there would be increased efforts and effective policies and practices that should be implemented. The approach for the competition demands that there should be innovation and changes with that as required to be introduced for the progress of the company. There have been great changes that are introduced by the company in terms of increasing the capacity of seating for the clients and customers. The company initially had only one theatre whereas later it expanded to another one more theatre which helped it to gain popularity in the respective region. They have survived the competition from other similar small scale theatres by bringing new reforms in the policies, practices and the processes that helped the retention, attraction and satisfaction of the internal as well as external customers for the company. They have also given a lot of proposals to the corporate for organizing their annual affairs with the movie and theatre aspects and environments (Carland et al, 1984). It could be said that when the business gets a specified direction, vision, mission and the specified core values that meet the needs of the enterprise then it surely progresses and achieves the results and outcomes that are expected to be achieved. SBE are comparatively on the more inclined level of making changes in them as they have a greater scope of development and making changes in their plan of management and operations.
Small Business Enterprise is the company that has a smaller capacity and can operate on a smaller scale to achieve the desired level of performance. Being smaller size; they are easily able to manage and operate themselves. These companies have a specific objective and the plan of action that they follow and achieve the desired level of success. Through the process of consistent monitoring and control over all the processes and the practices they can also explore themselves in more areas and expand their operations well. They are the ones that are operating with the clear mission, vision and the core values. They have been able to satisfy their internal as well external customers that are the sources of generating and earning the revenues. By implementing the changes in these organizations as per the project plans we can surely help these organizations to monitor and control their progress. These companies have a better chance of survival, success, operations and the management processes. In the nutshell these companies can easily follow the path of development through strict adherence to the policies and practices which are benchmarked with their competitors and industry.