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Unit 33 Small Business Enterprises Assignment - SWOT Analysis
Diploma in Business
Unit Number and Title
Unit 33 Small Business Enterprises - SWOT Analysis
Small business enterprises refer to low scale organization that is looking to craft improvement in the business activities according to objectives. In the current scenario, small business enterprises are responsible for driving the innovation and level of competition for different economic sectors of UK and other part of world. The unit 33 small business enterprises assignment - SWOT Analysis will provide information about the small enterprises organization Ledbury that is offering food and beverages to local customers. It will explain theories for measure organizational performance and provide the recommendation and justification to overcome the weakness. In the next part report will produce the assessment of organizational objectives and plan to and develop the action plan for implementing the changes. At the end, report will discuss how to incorporate the changes and develop the report to identify the performance.
1.1 Produces a profile of a selected small business identifying its strengths and weaknesses.
The Led Bury is one of the most famous dinning brands in entire UK. The restaurant is offering the high quality food and services to achieve a customer satisfaction and distinctive identity. Internal and external factor affects the restaurant performance. Internal factor such as quality of food and supply management and external factor such as political and economical conditions affects the performance of the organization. Led Bury will focus on the customer satisfaction by providing the taste and quality of the food they are offering. And this can be proved as the strength of the restaurant.
The chef Brett Graham is a prominent personality which also adds the quality satisfaction to the customers & visitors and also helps to target the particular audience. The Led Bury holds two Michelin stars and featured in top 10 restaurants which surely treated as strength to the restaurant. Quick services to the customers in effective manner would help to gain the competitive advantage and interior of the restaurant provides comfort to the customer so that they can spend quality time in the restaurant and enjoy the meal properly (Baker and Hart, 2016). The food presentation also plays important role in gaining strength and it should be appreciated by the critics also. This all factors help in gaining the objectives of the restaurant by providing quality food and services. Every organization has one or the other weaknesses in their business environment . The major weakness of the restaurant is short menu and delay in providing services to the visitors which sometimes weak the functioning system of the organization. The top management is planning to expand the business but due to financial barrier organization can’t able to serve the wide range of variety to the visitor. However they have to manage their inheritance with the available products and services.
1.2 Carry out an analysis of the business using comparative measures of performance
The performance of the restaurant can be measured by the quality of food and services it is offering in the restaurant. In case of Led Bury the restaurant is getting the benefit of joining the renowned chef Brett Graham in entire UK. On the basis of sale the performance can be evaluated. There are many bases to evaluate the performance such as market share, ROI, financial profits, customer satisfaction, employee motivation, flexibility, speed and cost indicator etc. The restaurant can use any of the above bases for the performance. In restaurant industry, customer satisfaction is something which has to be achieved by the restaurant this is one of the most common performance indicator because every organisation objective is to provide quality products and services to its customer by achieving customer satisfaction (Chen and Mohamed, 2009). In the current scenario, the locations of the Led bury and relation with the customer influences the business and retains it for long time.
Financial profits can also help in calculating performance of the organisation because financial aspect of the food restaurant is strong as it has build the brand image in the market and the quality of the food is also better. The profits can be calculated on the basis of cost and sales it incurred during the financial year. The management is looking forward to expand its business to explore the advantage of its brand image. Further the comparative performance is the service quality they are providing. Employee motivation and flexibility at the workplace is a good performance indicator. If the employees are motivated they will provide the healthy and serve the quality service to the clients as well to the organisation which help to gain the competitive advantage. The skill and knowledge of the staff can also help the restaurant in improving the performance of the organisation (Donnelly and Harrison, 2010). Thus by managing the human resources and applying their efficiency in the business can be effective. Led bury restaurant is measuring its performance on this criteria and promising future of London in restaurant.
2.1 Recommendations with justification to overcome the weak and threatening aspects.
The weaknesses which are mentioned above are the concerned situation for the restaurant. The organisation needs to overcome these threatening aspects. The change in environment is the continuous weakness that is present in the organisation and the organisation need to keep this as priority to resolve the same. In restaurant industry, the change is something which is required time by time because customers get bored with the same treatment and the taste the restaurant is offering, because the motive of the customer is to enjoy their free time by providing value in return they always expect something new offerings. It’s the duty of the manager to identify the change and to implement that change in the restaurant through motivating and training to the staff and other department respectively (Hiatt and Creasey, 2013). On the other hand the staff of the restaurant should always try to establish emotional bonding and connectivity between them and the restaurant; it helps in achieving the customer loyalty toward the restaurant.
Delay in service is the weakness in the Led Bury which can be overcome by appointing extra necessary human resource management , availability of inventory all time in stores so that in event of shortage the materials or ingredients are available & proper inventory management should be inbuilt in the restaurant. This would reduce the delay cycle in serving foods and beverages to the customers. By consistency in receiving the award is another commendation that is necessary to gain the advantage of the people’s perception and to maintain their image in the restaurant sector. Thus these are the certain points which are suggested to the restaurant sector who are commencing their new operation in UK or near to Led Bury (Hamilton and Webster, 2012).
2.2 Analyze ways in which existing performance could be maintained and strengthened.
The existing performance of the restaurant can be maintained by framing attractive strategies for retaining the customer for longer period. In restaurant industry, innovation and creativity in their operations is the basic strategy that needs to be implemented to maintain the performance in financial profits. The restaurant needs to focus on the interior of the restaurant by some innovative things or ideas that attract the customer. The internal aura or surrounding of the Led Bury should continuously need to be improved on regular basis to achieve the customer satisfaction which is also a performance indicator in measuring the strength of the business. The restaurant should try to build the relationship or bonding with the client by offering them few gestures and serving complimentary dishes or beverages with their meal or offering them attractive discounts or coupons etc (Nothhaft, 2010). They can also focus on business to business client for building relationship. Segmenting the market i.e. focus on target customer help the restaurant to get two benefit, one is B2B market help in gaining competitive advantage and increases profits and second benefit is the restaurant will get individual customer also. Business event can also take place in restaurant which solves the restaurant and client purpose also.
The management can also take into account managerial aspects like inventory management, human resource management, seasonal time estimation etc. These factors can also helps in maintaining the performance and strengthen the organisation. The relationship with other associated concern should also be maintained to strength the internal environment. These are the ways through which performance can be maintained in Led Bury.
2.3 Recommend with justification, new areas in which the business could be expanded
In the current scenario, the organisation is in restaurant industry and it should continue to be active in the same industry and expand their business. This is because the organisation has a complete knowledge about the same field rather than to enter into any other new business. They can enter into food process industry and set a platform for gaining the opportunity. The food processing industry has a direct impact on the restaurant dishes which would be benefited to the Led Bury for getting customer satisfaction. Chef Bret Graham can bring the new idea for making the dish or cuisine by using the food processing industry which would attract customer to their restaurant. And it is not so unrelated field with the current business of restaurant (Rafinejad, 2016).
The organisation work would be easy in researching for new dish as well as food item that is easy prepared and available at home. The restaurant would be benefited from two areas, first the restaurant would able to reach among the large audience and second profit would be generated from two areas. With this the organisation would able to take innovative steps and would try to move towards the new areas which are related to organisation current business. They can also expand their business in the restaurant by tie ups with the hotel industry because the new visitors normally first go for the accommodation facilities or in a restaurant this would also generate their revenue. The set up of the new business won’t be much difficult activity for the management, as the operational efficiency is good in Led Bury.
3.1 Assessment of existing business objectives and plan
In modern era, no business can run successfully if its objectives and plans are not clear. Led bury is a small business enterprise that is running in current restaurant market successfully because they have drawn their business plans and objectives effectively and are correctly implemented by their internal management in relation to food business. Led bury are focusing more on current customer food habits to expand their business in market (Reiss, 2012). They are improving the service standards and are trying to reach each and every customer. Led bury is trying to improve their short, medium, and long term goals, to achieve a reasonable profit. Advertising is one of the most common methods which are been used by them to attract customers towards restaurant. Led bury is trying to attract more and more customers by offering more cash incentives and high discounted offers with additional benefits.
There will be benefits for Led bury if they business plans and objectives. By preparing business plans they can increase their capital structure. Led bury can know what are the threats which can effects that working of business by making a business plan. A well prepared business plan helps in better communication channel with customers, management, and bankers. It will easily remove the chances of business failure. It will help in organization to progress towards its goal. It also minimizes the legal problems. Business plan and objectives are prepared at initial stage so it gives the path to business, to achieve benefits. There are some demerits of business planning and objectives too. It limits the scope of thinking for a businessman. As he is bound to follow that particular plan only and hence plan becomes rigid for businessman (Schaefer, 2011). Sometime planning takes a lot of time to prepare and to be implemented. This increases time and cost of business and businessman is unable to focus on his business correctly.
3.2 Revised business plan to incorporate appropriate changes to overcome weakness of existing business plan:
There are different plan and theories which helps Led bury to overcome their weakness in modern developing and changing world of restaurants. Business organization has to continuously monitor their plans and objectives. Organization should always prepare flexible plans for their business.
Substantial growth theory: It is one of the best theories to overcome weakness of business. This theory guide business to increase and expand the business operation. It helps organization to gain control on backward and forward integration. It makes sure that business have more control in market and limits the risk which can cause loss in business organization. By following the theories of substantial growth Led bury can achieve expertise in market and can have high level of share in market. Organization can lock out their competitors if this theory is correctly followed. It consists of vertical and horizontal which guides the organization to achieve and accomplish their goals. Vertical integration helps organization to take complete control over production and distribution of product in market.
Figure 1 SWOT analysis
There are different models which organization uses to achieve success in modern market. For organization like Ledbury which deals in business of restaurant are required to perform SWOT analysis at regular intervals of time. Market conditions are changing time to time so, Ledbury has to change its way of working according to current condition. SWOT analysis helps in finding out strengths, that what advantages organization has, what are the weaknesses that can be improved, what are the opportunities organization can spot and threats that organization can be faced in future.
3.3 Action plan to apply changes
There should a better communication and decision making plan by management to implement changes for removing weakness in Ledbury. Management should link up with international food magazines and try different varieties of international cuisine. They should mention their signature dishes in food magazines and should develop food blogs. This kind of method is expensive but it generates profit for medium period of time for restaurant. Led bury should try to cover both vegetarian and non vegetarian customers in society (Sharp, 2011). There should be proper communication plan between parties. Marketing department should work in full force to attract and make new customers for the restaurant.
Change management theories helps a lot in implementing changes. Kurt Lewin’s model is frequently followed by many organizations. Ledbury should follow three steps which are, unfreeze, change, refreeze. In unfreeze; organization must try to perform their routine work in new ways. The way of working should be changed. Organization should take corrective steps to change their method of working. Time and communication are two key points for implementation of change. In change section Ledbury must try to evaluate whether that particular change is important for organization or not and will it take organization to higher standards. Management should try to understand the change and work accordingly to it. Management should work on implementing changes in organization. In refreezing organization should adopt the changes and should follow it till it gives positive return back to organization. It is a long process for Ledbury but result of change in strategies will be fruitful for organization. Organization should try to develop feedback option. And also try to create reward system in organization. Every person in organization should be informed about change and full support should be given by leaders.
4.1 Report on the impact of the proposed changes on the business and its personnel
The impact has both affects it can be positive or negative, and changes in the organisation create impact on the growth of the business. The impact depends on the planning and execution for the changes taking place in the organisation. If the proposed changes are correctly implemented in Led Bury there would be increase in the value of brand image which help restaurant to maintain their productivity and growth in the long run with the motive of retention of client. With the increment in brand image the organisation can expand their business to the international market in the same industry so that the competitive edge could be maintained. Thus it can prove to be important positive impact on the operations of restaurant (Ströh and Jaatinen, 2011). This could only be achieved with proper formulation of strategy and increment in sale would be ensured. The changes would lead to increase in employee motivation and they have trust towards the Led Bury that they too belong to the restaurant. With this the cooperation among the staff and owners would be improved and productivity would be increased.
The negative impacts with the proposed changes would be wastage of the valuable resources like time, financial resources, human resources etc which would not only affects the current operation of the business but would also effects the efficiency of the employees like management has invested their money and time to train the staff or maybe they have to acquire new equipment for the changes taking place but the expected result would come as negative according to the planning of the top management. Although with the negative impacts the Led Bury can face but they need to undertake the proposed changes as positive impacts are more and they are more advantageous.
4.2 Plan how the changes will be managed in the business
The organisation can easily manage the changes with the fundamental of management of change. The changes can be managed by using the communication theory in effective manner. Communication should aligned properly in all the stages in the organisation and especially towards the lower staff so that they can improve their skills while dealing with any customer whether local or international tourist. Led bury should manage their communication channels at the staff level so that it can managed easily. The strategies and plan which are formulated should properly delegate to staff for that also communication is important theory. At the same level the restaurant should provide the training session so that the ability could be improved. Through improvement the international customer would be satisfied (Thomson and Hecker, 2014). The training session would include knowledge about the international ingredients, dishes and cuisines. By using this same taste can be provided to the tourists. These changes can help the Led Bury to gain the benefits to achieve the plan.
Another theory is for the management of changes that can be applied in the restaurant is Kotter’s change management, Lewin’s change model etc. These are the expertise model that ahs huge positive impact on the organisation for change management. The Led bury can use the simple steps of Kotter’s model by creating the environment for the change, involving the whole organisation and implementing and managing the change and this changes can be formulated in team. For example Led Bury is planning to expand their business by adding the different varieties or dishes in their menu for attracting to international tourist for this the Led bury has prepared the plan and strategy that how plan will be implemented by taking into account Kotter’s change management model by following its eight simple stages which will not only improve the efficiency of the chef and staff but also it will generate the financial profits (Trott, 2010).
Figure 1 Kotter's change management
4.3 Monitor improvements in the performance of the business over a given timescale.
Improvement in performance can be measured by various monitoring techniques. The organisation needs to follow the technique of monitoring. The monitoring could be done by benchmarking technique. This technique is very useful in measuring the performance with pre determined standard or required target which are to be achieved. Further the actual performances are compared with the standard performance for monitoring purpose. With this the management can compare the actual result with the expected result and if targets are not met the organisation find out the reason for the same and correct the mistakes. The performance of the employees can also verify by following benchmarking technique. They will also get motivated by this technique by continuous monitoring their performances (Ubeda, 2013). The organisation in the current scenario can use this technique for monitoring the performance of the employees and chef. The company can compare the result of various activities.
The organisation can even use return on investment and focus on the same. The particular investment that the Led Bury has invested in his business would be calculated on the profits it is generating during the period. In this the ratio would be calculated through which the growth of the restaurant would be known. Further the Led Bury can measure the increase in the ratio of foreign tourist. After that the entire necessary ratio would be calculated after implementation of proposed change in the business plan. Through the monitoring technique the productivity in the restaurant is measured on regular basis.
From the above study, it is been considered that process of managing and measuring the performance of small business enterprises is essential for Ledbury management to achieve the objectives. Report has analyzed the strength and weakness of Ledbury’s existing business for food and beverages sector and provided the plan to meet the objectives. According to analysis, it is been identified that organization has potential to grow as premier food chain in market and achieve the objectives. Moreover, report has proposed the plan to meet the objectives and overcome the impact of issues that affecting the operations functional activities.
Books and journals
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