Delivery in day(s): 5
Unit 33 Small Business Enterprise Assignment – Kaffeine
Diploma in Business
Unit Number and Title
Unit 33 Small Business Enterprise – Kaffeine
Small business enterprises are gaining popularity in the recent years and people are finding it to be extremely profitable to invest in the same especially in the country of the UK. Moreover the popularity of the fast food shops or the coffee or soft drinks are also growing significantly over the recent years. The following Unit 33 Small Business Enterprise Assignment Kaffeine deals with the factors that influence the operations as well as the success and growth of the small business enterprise and the chosen enterprise in that of “KAFFEINE” which is basically a coffee shop and is located in the capital city of the UK which is London. The assignment provides a brief idea regarding the strengths, weakness, opportunities and the threats of Kaffeine.The assignment further provides an idea regarding the needs for the change and the methods which must be implemented for the successful implementation for the change for Kaffeine.
1.1 Produce a profile of a selected small business identifying its strengths and weaknesses
Kaffeine is a small coffee shop which is located in 66 Great Tichfield St., London, UK. It is mostly an independent shop which is commonly Aussie/Kiwi owned. It mostly serves its customers breakfasts which are mostly in deli-style and particularly consist of sandwiches and salads. It was opened in the year 2009 in the month of August and focuses on providing excellent services to its customers which is inclusive of great food, hospitality services as well as excellent coffee. The coffee shop is famous for its professional services as well as the warmth and the comfort it provides to its customers. The coffee shop enjoys an excellent location which is in the north of the Oxford Street which in the recent times considered being the heart of the Fitzrovia and has been considered to b important factors in regenerating as well as rejuvenating the local area. It is also regarded as the vibrant and one of the most happening parts of London which is indeed within the area of 3 minutes walking distance from the very famous Oxford Circus.
SWOT Analysis of the Selected Small Business
The method of SWOT analysis is considered to be very important tool for marketing which helps to successfully identify the strengths, weaknesses, opportunities and the threats associated with the concerned enterprise. After the appropriate analysis of the above mentioned factors the enterprises can develop relevant strategies to overcome the weaknesses as well as the threats and can also amplify their strengths as well as make the maximum of the available opportunities. The strengths and the weaknesses of a company are identified by analysing the internal factors of the enterprise while the opportunities as well as the threats are identified by analysing appropriately the external factors that the enterprise is associated with (Zott, Amit and Massa, 2011). The SWOT analysis tool is considered to be the simplest tools and is very popular among the marketing managers of the companies or the owners of the small business enterprises as it is easy quick and intuitive as well although it is very time consuming and labour intensive.
SWOT Analysis of the Kaffeine Coffee shop –
- Excellent quality of food and coffee
- Excellent location
- Has been successful in building strong reputation among the customers
- Significant growth in the sales turn over
- Very expensive location
- Little variety of foods and snacks
- Brands offered are less known to the people
- Building on the brands or even starting off a franchise business
- The significant growth of the coffee or the sandwich market in the country of the UK and hence the number of investors wanting to invest in this segment is increasing significantly
- Growth opportunities on the developing markets by offering them products at competitive pricing and by buying the raw materials required at cheap rates
- The ever changing government policies regarding taxation or other trade policies
- Political instability
The business profile of Kaffeine can be shown in the diagram below-
1.2 Carry out an analysis of the business using comparative measures of performance
An analysis of Kaffeine has been done by making use of the comparative measures follows –
PROFIT AND LOSS ACCOUNT OF KAFFEINE
Comparative Analysis Based On Non-Financial Measures
For the year ending 2015
Awareness of the Brand
Loyalty of the customers
SCALE: 1 TO 10 (low to high)
2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in the business
Although the current location of Kaffeine is expected to attract significantly huge number of customers but of the place is also too very expensive and is matter of concern for the owners of the shop. Hence the entire team of the enterprise must make appropriate strategies in order to generate significant amount of revenues in over to successfully overcome the costs associated with the same.
One of the major weaknesses of the restaurant is that is does not offers wide range of foods or snacks to its customers and the lack of innovativeness in the product range may dissuade the customers. As a result of which Kaffeine may even lose its loyal customer relationship to its competitors that will ultimately prove to be very harmful for the existence as well as the success of the business enterprise. In order to over this problem the owners of the shop must include various food items in the menu as well as some special surprises for the customers which will be provided to them on their special occasion such as birthdays, wedding anniversaries, etc. As the owners of the shop belong to New Zealand and Australia, they can include some of the special items which are the specialities of their respective countries in the menu along the with the local food specialities. Besides such items will be innovative to taste for the customers of the UK as the customers are very likely to get bored of the similar taste of the products or rather the food items of their own country. Moreover they can even gather the feedback from the customers regarding their new food specialities or items so that can make the necessary improvement as desired by the customers and can also discontinue to sell the food items which are nit popular among the customers. In addition advertisements will help to promote their brand of products among the customers or the consumers. Along with the advertisements the word of mouth publicity of their loyal customers will also help to increase the popularity of their brands. Moreover as their speciality is coffee and they even offer different types of coffee which is prepared by the expert chefs, they may even make efforts to modify their range of coffee and to provide more innovative and unique flavours as well as types of coffee as the tastes and the preferences of the customers’ changes continuously.
2.2 Analyse ways in which existing performance could be maintained and strengthened
Kaffeine is currently experiencing significant growth in the sales of its products and services and its customers are also satisfied by the services its staff provides to them as well as the excellent coffee it provides to it customers. Moreover the high quality coffee and the services provided by Kaffeine helps it to provide competitive advantage over the other firms. Some of the ways in which the performance of Kaffeine can maintained as well as amplified has been mentioned below –
- The owners of the company or the management team of Kaffeinemust make sure that their conduct a routine assessments of the strategies of its closest as well as tough competitors in order to handle the barriers of co petition successfully and also to maintain a competitive edge over its competitors.
- Kaffeine must be flexible towards the changing needs and preferences of the customers as well as the business trends of the industry they are operating in
- Survey Feedback– This method plays a very important role getting an idea about the needs, demands as well as the expectations of the customers from the coffee shops (Welter and Smallbone, 2011). It also helps to get an idea regarding views of the customers or the opinions of the consumers regarding the food, drinks as well as the services provided by the coffee shop Kaffeine. Such information will help Kaffeine to develop the future strategies for the enterprise accordingly and also to will help Kaffeine to meet the desires and the expectations of the consumers successfully. This will ultimately lead to the satisfaction of the customers and will also help to ensure their loyalty as well.
- Proper maintenance of the position of the healthy or rather a good cash flow as it helps to ensure the growth development as well as the sustainability of the concerned business.
- Training and Development Programs- Such programs will help improve the performance of the service personnel even further and will also help to ensure up gradation of the performances of the service personnel. It will prove to be extremely helpful for the new joiners as it will help them to match the performance of their seniors efficiently
2.3 Recommend with justification, new areas in which the business could be expanded
The major focus of the business enterprise of Kaffeine must be on the development of the products as well as in expanding its business in the most crowded parts of the London City as will helps to attract many customers. Kaffeine can open its branches near the London Airport or the railway station or near any schools of Colleges as well as near the offices as the young professional are very likely to get attracted towards the coffee shop as they may like to forget their work pressures and enjoy the conform provided by Kaffeine along with the excellent cup of coffee which is very popular among the office goers.
They may even decide to open their new branches in the developing countries like that of India where they will get high quality raw materials at cheap rates and the country is even considered to possess a huge potential for the business enterprises in the near future because of its huge population. The growth strategies of Kaffeine may also include business integrations. They may also decide to tie up with a company having good reputation which may even be the suppliers of the raw materials or a hotel chain. This will not only help Kaffeine to provide exposure but will also help Kaffeine to get the loyal customers of the hotel chain without any sort of advertisements. This will be cost effective for Kaffeine and will help the same to generate significant amount of revenues as well.
3.1 Produce an assessment of existing business objectives and plans
Some of the major objectives of the Kaffeine are to become the most popular as well as the largest revenue generating coffee shop in the UK. In order to achieve its major objective it needs to increase its customer base buy at least about 60% within a time period of say 1 year. Kaffeine has also to needs to increase its staff members to serve its customers without any delay and may also have to include new varieties of coffee as well as other snacks in order to attract the customers and ensure word of mouth publicity as well.
Such objectives help to provide an appropriate vision to the team members of the concerned enterprises and also help to achieve the objectives of the enterprise within the allotted time periods for the same (Campbell, Edgar and Stonehouse, 2011). The SMART objectives of Kaffeine have been identified below –
Moreover the key performance indicators (KPI) of Kaffeine lies the high quality of coffee, foods as well as the hospitality services provided by the same, Ina addition the wide variety of coffee provided to the customers Kaffeine also help to add value as well as to ensure customer satisfaction.
3.2 Revise business plans to incorporate appropriate changes
It is very essential to prepare as well as to update the business plan on a regular basis depending upon the changing trends of business and also the frequent changes that takes place in the needs and the preferences of the customers. In order to ensure the achievement of the SMART goals Kaffeine needs to revise its business plans and must also incorporate the following changes in its business plan so as to ensure effective implementation of the same –
- Identifying the niche market segments where it could gain its monopoly and also where it could generate huge amounts of profits as well
- Providing surprise gifts or discount coupons in order to attract customers as well as to retain its loyal customers
- Making a choice regarding the location of the branches of Kaffeine where proper parking facilities are available so and which are easily accessible to the customers as well
- Launching new mobile apps of the coffee shop where people will have the opportunity to book their seats as well as to request their favourite food item or variety of coffee as well
3.3 Prepare an action plan to implement the changes
The following steps must be taken into consideration in order to ensure effective implementation of the changes as well as the action plan which is prepared to achieve the objectives of the enterprise –
- Identifying as well as analysing the needs for the enterprises along with the problem areas associated with the same
- Appropriately design and development the plans which aims to fulfil the desired requirements of the organisation
- Change models like that of Kotter’s 8 steps, Lewin’s Three stage, etc. must be implemented by the enterprise in order to achieve the desired results or outcome
- Monitoring and evaluation of the change process is required in order to minimise the barriers as well as t maximise the effectiveness of the change process
- Diving the long term targets into smaller ones in order to make it achievable by the team members easily as well as within limited time slots
- Building on the change incorporated
One of the major goals of Kaffeine is to increase in financial profits by the year of year 2016 by about 50% and also increase the number of trained personnel by about 10%. Keeping in mind the above consideration the following action plan has been prepared for Kaffeine –
Increasing the profits
Technology, marketing and research tools
6 months to 1 year
Managers, Owners, service personnel
Proper analysis of the strategies of the competitors, financial planning
Increasing the staff members
Hiring of the service personnel trained in hospitality will help to improve the quality of services even further and will in turn lead to customer satisfaction
Online job portals, job analysis
Job oriented knowledge, qualifications as well as skills
Up gradation of the facilities and infrastructure
Improvement in the delivery services
Adequate amount of investments
Shareholders And The Owners
Service providers enabling technology based services
4.1 Report on the impact of the proposed changes on the business and its personnel
The proposed changes will have the following impact on the business enterprise of Kaffeine as well as its personnel –
- The proposed changes will lead to the improvement of the quality of services provided by Kaffeine even further which will in turn help to raise the standard of the coffee shop and will also provide competitive advantage to Kaffeine
- The communication gap between the management and the service staff will be minimised
- There will be a significant increase in the levels of satisfaction of both the customers as well as the employees of Kaffeine
- On the financial front the suitable reduction in the relative cost of operation will help to ensure increase in the profits generation
- The morale of the employees will increase which will help them to work harder so as to meet the needs as well as the desires of the enterprise
- Significant improvement in the technology and infrastructure
4.2 Plan how the changes will be managed in the business
In order to manage the change successfully the following change models must be implemented by Kaffeine –
- Lewin’s Three Stage Model for Change –This model was developed by Kurt Lewin in which he has identified three stages which lead to the successful implementation of the change (Cameron and Green, 2015).
The following diagram shows the Lewin’s Three Stage Model for Change –
The following stages are involved in the aforesaid model of Kurt Lewin –
- Unfreezing: This is the initial step towards the implementation of change and mostly involves informing the employees as well as the people associated with the enterprise or the people who will be directly affected by the change regarding the need for change
- Change: This phase mostly involves the implantation of the change process
- Refreezing: This stage involves stabilization or the consolidation of the implemented change within the enterprise
- Kotter’s Eight step Model for Change –This model states eight which are required to be followed in order to ensure effective implementation of change which can be clearly shown in the diagram provided below –
4.3 Monitor improvements in the performance of the business over a given timescale.
Monitoring as well as evaluation of the methods and the performance the business is required to be done on a regular basis in order to minimise any deficiencies or the barriers related to the same (Koen, Bertels and Elsum, 2011). Each and every step involve in the business plan must be monitored carefully so as to achieve desirable outcome from the same by enabling successful implementation of the business plan. Some of the different method which are mostly used for the evaluation of the performances have been discussed in detail below –
- Management by Objectives (MBO) – This method help to provide clear clarification regarding the objectives of the organisation and the performance of the business and the results achieved by the same are in sync with the organisational goals or not
- Appraisal– By making efficient use of this system Kaffeine can successfully monitor the performances of the different department associate with the enterprise and can also implement the required changes accordingly.
- Behaviorally Anchored Rating Scale (BARS) – This is mostly used for rating the performance of the employees on the basis of their attitude or behaviour (Engeström and Sannino, 2011)
- Method of Cost Accounting– This method will Kaffeine to determine whether or not the finances are under the control and will also helps to identify the areas excessive costs are incurred and also the areas which are ignored or require investments
- Paired Comparison Method– This method can be used for measuring the performance of the business on the basis of comparing the same with its competitors by making use of the qualitative as well as the competitive methods
- Ranking Method- It is mostly used for the ranking the business enterprise based on its performance in the world of business
From the information provided above one can conclude Kaffeine needs implement change in order to achieve its future objective of growth, development as well as expansions in the foreign markets which mostly involves opening of the branches in the developing countries which not only be cost effective for Kaffeine but will also prove to be profitable as well. Moreover the change models mentioned above will also help the enterprise to ensure successful implementation of change. The most appropriate change model for Kaffeine will be that of the Kotter’s eight step model of change. Moreover the actions plans provided will also help the team members of the staff of Kaffeine to achieve the objectives of the enterprise successfully as well to ensure the growth and the development of the same.
Cameron, E. and Green, M., 2015. Making sense of change management: a complete guide to the models, tools and techniques of organizational change.Kogan Page Publishers.
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business strategy: an introduction. Palgrave Macmillan.
Engeström, Y. and Sannino, A., 2011. Discursive manifestations of contradictions in organizational change efforts: A methodological framework.Journal of Organizational Change Management, 24(3), pp.368-387.
Koen, P.A., Bertels, H.M. and Elsum, I.R., 2011. The three faces of business model innovation: challenges for established firms. Research-Technology Management, 54(3), pp.52-59.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in challenging environments. Journal of Small Business Management, 49(1), pp.107-125.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research. Journal of management, 37(4), pp.1019-1042.
The following Unit 33 Small Business Enterprise Assignment Kaffeine deals with the factors that influence the operations as well as the success and growth of the small business enterprise, Locus Assignment Help in UK posting units solutions so scholars can explore assignment help and get review the quality of our work.