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.Order Now