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Unit 33 Small Business Enterprise Ledbury Assignment
Small business enterprise is the privately owned organization and managed by the sole proprietorship that have few employees or less year revenue. Management of the small business enterprise has less area of business serve to few clients in a day. The Ledbury is a restaurant that is located on Ledbury road, Notting Hill London, England. The current employees in this restaurant are less than 50 and it has capacity to serve less 60 clients. The restaurant has been featured as top 50 restaurants in London. The current identifies the scenario of the small business enterprise, generate the profile of the selected business and identify its strength and weakness. The Unit 33 Small Business Enterprise Ledbury Assignment carries out the analysis of The Ledbury using comparative measures of performance and gives justification to overcome the identified weakness in the organization. It analyzes the existing performance that maintained the strength and justifies the new areas under which the business may be expanded. The report prepares the assessment of existing business objective and plan and review the business law plans to implement the appropriate the changes. The study identifies the impact of the proposed changes on the business and its personnel and plans the changes that managed the business. The report monitors the improvements in the performance of the business in the given timescale.
a. Profile of a selected small business identifying its strengths and weaknesses
Organization Background: The Ledbury is the small restaurant that serve quality food the local people in London always try to improve the services. This organization has been awarded as the top 50 food restaurant in the London it is the strength of the organization that made the business unique form the competitors. It is the best example among the small business that gets high growth at the lower level by serving the quality products.
Description about “The Ledbury”: The Ledbury is a food restaurant that is located in the London and tries to serve quality food to the clients. It holds two stars that reflect that it comes under top 50 restaurants in UK. The organization was started in the year 2005 by Brett Graham and organization has the capacity to serve 55 clients at the one time (Gupta, 2013). To serve quality food is the main motive of the organization and always identify the need of the clients in order to retain them.
“PEST analysis of The Ledbury”
- Political: It has been identified that promotions help the business to sell the quality food the clients. The geographical location The Ledbury is to identify the local employees in the organization also help the business to identify the taste and preference of the employees.
- Economical: It is the factors help the business to evaluate the financial capacity of the employees and try to identify the purchasing power of clients. After, the financial burden that affects the market of London due that burden the buying power of the employees also decreased.
- Social: The market analysis assist the business to identify the mentality of the people of the particular city and also assists the business to provide that kind of food which just the home. The services The Ledbury are based on the home that gives emotional attachment to the customers.
- Technological: The technological changes help the organization to get in touch with the large number of customers with the help of promotional activity (Shabanova.et.al.2015). The technological amendments assist the business to provide all the details related to the food and services to the clients.
b. Carry out an analysis of the business using comparative measures of performance
In the year 2014 one of the top ten restaurant that help the business to gain the more profits for the past years. It also increases the brand image of the organization in the particular city. It is also voted the best restaurant in London by various rating agencies and also awarded for the quality food provider in the city and it is the most consumer preferred brand of the London. The gross profit of the organization also rose after receiving this kind of awards but the taste of the food is same. The profits of the organization rose for the past 11 years and it shows positive impact on the goodwill of the organization.
Advantages and disadvantages of growth and profit
Increment in the profit margin may assist the organization to serve quality food to the clients. The financial analysis facilitates the business to identify the current financial status of the organization. This kind of analysis assists the business to boast up the performance of the organization and maintain the flow of services (Ahi and Searcy, 2013). In comparison of 2014 organization earn more revenue in 2015 that shows that technological up gradation help the business to promote the products in the market.
On contrary, if organization is not able to gain the appropriate profit that is very rigid for the business to sustain in the market. It also affects the productivity of the organization and reduces the quality of food in the market. The continuous loss affects the growth of the business and this may be the reason of windup. In case of The Ledbury does not face such kind of situation.
c. Recommend appropriate actions to overcome the identified weaknesses in the business
After commencing the analysis of The Ledbury it has been concluded that different type of weakness have been identified by the business in the current situation to carry out the business.
High competition in the market: Due to high competition in the market it is tough for the business to retain in the market. The area of working is very limited in the London and management wants to expand the business. To beat the competition management has to serve low rate food to the clients give various offers to the customers to increase the customer base. The Ledbury has to add variety in the food to attract new clients in the organization.
Raise the productivity: Organization has to increase the productivity with the help of various additional services like accommodation services, credit food etc (Doherty.et.al.2015). This kind of facility facilitates the organization to retain the clients and increase the productivity of the organization. Business has to increases the area of working in London thus they are to serve better and easily fulfil the demand of the clients. Organization should adopt the technological equipments thus they are able to promote the business easily and able to increase the area of working.
Investment in R&D: Organization has to identify the taste and preference of the clients in the market. This all can be identified with the research and development in the market. Organization can expand the business with the help of collected data in the market.
d. Ways in which existing performance could be maintained and strengthened
Organization can expand the business with the help of various products in the market. The Ledbury has the duty to provide innovative food items to the clients thus they feel that they are getting something in return. Following are the ways under which management can gain the competitive advantage and strengthen the performance:
- Invent new dishes: It is the most innovative way to increase the revenue of the organization and to retain the employees within the organization. For better output management has to launch the new products in the market attract the new customers in the organization and set the bench mark of services for the present employees (Zairi, 2012). One of the biggest disadvantages for the small business enterprise is lack of employees in the organization. Innovative product is the best step for the organization to increase the profits.
- Merger with the multinational food chain: To increase the capacity of the organization and to raise the performance of the employees in the organization it is the best way to increase the productivity. Merger may help the business to identify the new ideas to produce the services in the market. International firms may facilitate the business to increase the quality of the food items and may get the good brand image in the market. The overall performance of The Ledbury may increase and try to gain the competitive advantage.
- Joint venture: The joint venture will help the organization to gain the financial assistance and also increase the brand value of the organization. It may provide the international platform to The Ledbury by which business can get the international growth (Yang.et.al.2013). It may provide the management hierarchy under which the work load form the manager may be decreases and the power of authority is in the hand of top management.
e. Recommendation for the new areas in which the business could be expanded
The Ledbury can adopt various new ways to expand the business in the market and it also help the business to gain the competitive advantage. It has been identified that most important area that management can adopt is the innovative products in the market and also adopt the technology or try to change the area of working. To achieve the organizational goals management operations can adopt various options are as follows:
- Segmentation: In order to expand the business in the market organization can segment the market of the restaurant that helps the business to identify the customers for the organization. In segmentation process manager can easily divide the clients as per their demand, preference, taste and purchasing power. It also assists the business to classify the loyal customers towards the organization.
- Latest food items: Organization has cooked the innovative dishes that help the management to sell the products in the market (Fleisher and Bensoussan, 2015). Innovation is the best policy that helps the organization to serve quality food as peer their desire. Latest food in the market may provide good platform to the organization and also raise the profits of the organization. It is the duty of organization to update the menu card of the organization and provide latest food items to the clients.
f. Assessment of existing business objectives and plans
The main objective of the organization is to satisfy the demand of the clients and increase the revenue of the organization. Another objective of the organization is to identify the taste and preference of the customers in the market. These objectives and plans of the organization are as follows:
- Producing value for money products: The Ledbury has always provided valuable services to their clients. Valuable services to the clients may assist the organization to gain the competitive advantage also help the business to retain the clients (May.et.al.2013). It also helps the business to improve the goodwill of the organization in market.
- Increased consumer satisfaction: The main agenda of The Ledbury is to satisfy the demand of the clients in the market. Form very beginning all the employees in the organization is concerned to satisfy the need of the employees in the organization and retain them for the longer period. At the starting stage of the organization the CEO of The Ledbury try to collect the feedback of the clients and try to improve the services as per their demand.
- Growth in local market: Another of plan of The Ledbury is to get the positive growth in the domestic market that helps the business to gain good customer base for the organization. Growth in the local market may assist the business to maintain the availability of food items in the organization (Aversano.et.al.2012). The domestic market assists the business to expand the business at the global and also increase the brand image of the organization.
g. Business plans to incorporate appropriate changes
Change is the most important aspect for the organization that helps the business to maintain the position in the top 50 restaurants in the market. The present position of the organization is in the top 10 restaurants in the market. It is the policy of the organization in the market that follows the change and meets the demand of the clients in the market. Following steps are followed by the organization to meet the changes:
- Clarify the vision and the values of the organization: It is the duty of the organization to vision and mission of the organization must be clear. The vision that has been set by the business must be transparent and easy to understand for the employee thus they give their efforts in that field. The centre of authority is in one hand that helps the business to gain the competitive advantage.
- Review the organization’s current position: Management has to identify the current position in the market that helps the business to assess the effect of the current policies and objectives in the market (Harmon, 2014). If they are giving negative impacts to the organization than organization try to change them as soon as possible.
- Identify ideas: Next step is to identify the best suitable idea for the organization that helps the business to reveal the best suitable idea to transform the previous plan into new plan. The Ledbury collect the ideas for the employees for the best plan in the organization and try to implement it in the organization for the better outcome.
- Agree the strategic direction: After collecting the ideas for the employee’s management try to select the best idea for the list of ideas and try to prepare the plan as per the strategy. It is the duty of the organization to prepare the plan as per the requirement of current market situation.
- Identify the sources required and the organization’s capacity to deliver: Another step is that organization has to identify the resources that are required to execute the plan in the organization (Bryson, 2012). It is the foremost duty of the manager in the organization that identifies that kind of resources which required in the further step of the plan.
- Produce the business plan document: Another step of the organization is to design the business plan for the organization. For business plan organization prepares the business plan that contains execution of the plan and strategies of the plan.
- Implement the business plan: Last stage in the whole business that contains the implementation date of the plan.
h. Action plan to implement the changes
Table 1 Action plan to implement the changes
Plans to implement changes
Organization will discover the Innovative dishes
The customer service is the main motive of the organization.
To improve the behavior of the employees in the organization.
System to manage
To maintain the variety of the dishes.
To improve the satisfaction level of the clients.
Manager will give training to the employees to bring the change.
Check the quality and taste of the food (Stringer, 2013).
Provide effective services to the clients/
Maintain the employee relation in the organization.
To calculate the demand manager will identify the taste of the dishes.
and customer relation
The mile stone set by the organization is to discover 10 new dishes.
The mile stone to set by the organization to bring greater customer service.
To improve the behavior of the employees day by day.
The new dishes must be sold within a day.
The clients must be satisfied with the services of the employees.
The manager must improve the employee behavior within month.
i. The impact of the proposed changes on the business and its personnel
There are different impacts of the change in the organization that bring the in the organization. Following are the impact of change on The Ledbury that affects the growth of the organization is as follows:
- Platform to the business in the international market: In the present situation with the help of change organization will get the international platform in the market and also provide the high profits to the business. It is the best way to gain the competitive advantage and also identify the current position of the organization in the market.
- Increased responsibility for the staff: Employee in The Ledbury may get the opportunity to work with the international clients and it may raise the liability of the employees. It is the best way to empower the staff members to train them for the better output (Hanif.et.al.2014). In order to gain the competitive advantage management has to identify the skills of the employees and provide them efficient training to achieve the management goals.
- Growth in the food market: The change may help the business to gain the competitive advantage also help the business to expand the restaurant in the different parts of the world. It may affect the business for the short period but after some business will earn more profits in comparison to the past profits. The geographical area of the restaurant may be increased and it may open the outlets in the different parts of the UK. The main objective of the change is to maintain the position of The Ledbury in the market.
j. Plan how the changes will be managed in the business
Ledbury is going to build an appropriate team for carrying out their expansion in the local market. This team would be looking after all the necessary aspect that business needs to undergo for carrying out their activities in a most effective manner. Management is going to undertake appropriate research for London market for understanding their behaviour towards the food products services. Another element that can also help on the ground of managing the change is related to the implementation of change management models. Adherence to these models and mentioned stages could be beneficial at very large scale. Ledbury can use Kotter’s change management, Lewin’s model etc. The output of the research would be helpful for identifying the needs and wants of the consumers in a most appropriate manner. Further, in order to plan the activities of managing the expansion of food services appropriate supplier would be looked after by business who is able to deliver appropriate fresh products to the business at reasonable margins, so that business sis able to make profits out of this expansion.
Ledbury is small business organization that is having potential to grow as the quality food and beverages restaurant which could be transform by using the activities proposed through the plan. These aspects will be undertaken in an appropriate manner for achieving the goals of the enterprise (Fleisher and Bensoussan, 2015). This kind of approach will help to meet the objectives of business and maintain the effectiveness in the operational business that is essential to achieve the objectives. These are certain change management practices those has huge level of positive impact at the change management. Thus proper communication, adequate training and management models must get priority by the cited restaurant.
k. Monitor improvements in the performance of the business over a given timescale
Table 2 Monitor improvements in the performance of the business over a given timescale
Improvements of performance monitored
Next review date
December to January 2016/ 2017
The current study identifies the brief of the organization and also gives the mission, vision of The Ledbury. Organization has always provided valuable services to their clients and maintain the services to as per the services as per the desire of the clients. The Ledbury provide training to the employee for the better outcome and also try to expand the business by adopting different kind techniques like merger, innovative products etc. It is the duty of the organization to provide quality services to the clients in order to generate the better outcome. The main objective of the organization is customer satisfaction and also identifies the taste and preference of the employees in the organization. Manager of The Ledbury try collect the feedback from the individual employee and try to implement the change as per the feedback of the clients. Manager in the organization has to monitor the change within the given tenure for the better outcome.
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versano, L., Grasso, C. and Tortorella, M., 2012, June. A literature review of Business/IT Alignment Strategies. In International Conference on Enterprise Information Systems (pp. 471-488). Springer Berlin Heidelberg.
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