Introduction To Small Business Enterprise Strategies
Small business enterprises works for the sole motive of enhancing profits and they usually enjoys short term capital advantage. It is also considered as an enterprise that falls under effective organization category. At the same time SSI contributes huge range of prosperity in economic development (Cole, 2003). The resent case has been emphasizing on Umami restaurant that contributes comparatively huge success to small scale sector. The research has thus stated SWOT analysis of the company along with the strategies that can be used to improve weaknesses of the business. Furthermore the report has also discussed some measures through which performance of the business can be analyzed.
As a business consultant, it is essential to develop many skills so that performance of small scale business can be adequately identified and this also helps the organization to build strategies for future growth and improvement processes. Business skills are crucial for consultant since it aids in ascertaining those forces that can hamper business performance up to higher extent. On the other hand, such skills can also support the business entity to manage development and growth share.
Umami restaurant has been operating in UK from past many years and that also delivers food, bar and other entertaining services to the customers. It works on small scale level; however still it chiefly emphasizes on customer satisfaction. Thus in order to state strength and weakness of the business, brief discussion on such aspect has been made (French, 2009). Under the USP statement, it is mentioned that Umami restaurant emphasizes on quality products with affordable services and this is the only strategy of business that aids the business to persuade large pool of customers. The major strengths of business are as follows:
Umami restaurant introduces several cuisines as per customer choice and it also facilitates innovation and creativity in business products and services. The restaurant is actively present in online selling that helps the prospective buyers to purchase food products conveniently and at the same time this also reduces extra operational costs (Goodier, 2012).
The restaurant remains open on holidays and Sundays as well which aids customers to get food services anytime and this is also essential to enhance word of mouth publicity.
Umami restaurant make arrangement of all sorts of food products which attracts diversified customers towards the innovative cuisines and that promotes dishes of the restaurant in numerous market places (Cole, 2003). The restaurant is also deriving high growth rate in global and national market place which has actually reached about 5% and hence it increases possibilities of competitive advantage for longer period. Despite of these strengths, Umami restaurant has some weakness as well that affects performance of eatery and this can also hamper efficiency of business in indifferent market places.
The major weakness of Umami restaurant is competition as the level of threat from competitors has been increasing promptly since number of players is already working in the same small market (Ward and Daniel, 2012).
- The rate of labor cost is also increasing in hospitality market which can affect profitability of Umami restaurant as this specially includes innovative thinking for new products and services.
- The eatery has less efficient employees who are also not capable of managing technological advancements.
- Carry out an analysis of the business using comparative measures of performance
- In order to become competent business entity and also to enhance differentiate factor of business, Umami restaurant has been using many tools as a measure of performance management. This also aids the business to analyze efficacy of business and hence improvement can be facilitated directly (French, 2009).
Sales and revenue ratio: The sales degree of Umami restaurant has been increasing from past many years such as earlier it was 15% of NP and now it has reached to 22% of NP and thus it states that the business is quite efficient in managing its position in external business environment. Most of the business entity uses such tool for identification of business life cycle and this is also most effective in facilitating development in restaurant’s practices (Islam, 2009).
Cash flow and budgetary statements: Capability of business can be analyzed with the help of measuring inflow and outflow of cash and through this; financial position of business can also be ascertained. Through such aspects, expenditure of the company can be identified. Currently Umami restaurant has been using the tool so as to find out the efficiency of assets and liabilities.
Competency analysis: The business operating at small level can also compare the ratio of competency with past years through competency analysis. This is also considered as effective tool that helps business to find out the areas of development (Kneer, 2009). Through such tool, competency of business as compared to other rivalries can also be determined. Thus these are the major tools through which performance and competency efficiency of business can be identified. Umami restaurant can also ascertain some ways of increasing growth and success with the help of these techniques.
Recommend with justification, appropriate actions to overcome the identified weaknesses in the business
Umami restaurant has been facing numerous problems from business weaknesses; thus it needs to be eradicated from business so that work processes can be facilitated in successful manner. One of the major weaknesses of Umami restaurant is inefficient workforces; therefore here the business is critically required to organize training and coaching session for increasing efficiency and standard of workforces. Through this only, adequate services to customers can be provided and this is also beneficial for increasing success and competency aspects of business (Hunger and Wheelen, 2000). The restaurant is also requisite to delegate specified duties and responsibilities to employees so that work practices can be managed in prominent manner. At the same time, it is also crucial for the restaurant to use resources in optimum manner so that investment and profitability factor can be encouraged.
Umami restaurant has been facing problems from substitute products; therefore here the restaurant is required to focus on product differentiation strategy in which it can learn many ways for enhancing competency of business from diverse perspective. At the same time, product differentiation strategy can also assist the eatery to grab attention of customers and this is also useful in augmenting market share (Chaston, 2008). Thus for the same purpose, continuous improvement should be facilitated in service designing and promotion since it is the base through which opportunities of growth and success can be raised. Lastly it is being suggested to Umami restaurant to emphasize on accurate financial position and along with this, transparency should be directly maintained so that financial statements can be prepared accurately. The weakness of labor cost is also one of the major problems prevailing in Umami restaurant as here the eatery has to give adequate wages to the talented employee who actually has idea to make indifferent and innovative dishes for customers. This can be improved through minimizing operational costs especially in promotional strategies.
Analyze ways in which existing performance could be maintained and strengthened.
Umami restaurant has been working in prominent manner and this even gives competition to other players as well since the products are quite similar to each other. In order to maintain the same performance, it is essential for Umami restaurant to emphasize on those activities that highly underpins organization’s services. Currently it has been observed that Umami restaurant manages interest of its employees in prominent manner which further aids the business in enhancing customer satisfaction ratio (Chaston, 2008). Thus here it can be said that Umami restaurant must develop competent relationships with the employees as through this, organizational success can also be increased. In the current period, Umami restaurant is emphasizing on clan culture through which it involves all the employees in decision making process. This highly improves morale of employees and hence at the same time, it develops coordination level. Hence the business is suggested to continue the same thing for future management of work processes.
All the employees are allowed to communicate freely with each other and also within other departments which helps Umami restaurant to manage interest of employees for longer period, At the same time, it is also suggested to the manager to emphasize on motivational benefits which he is doing at present (Islam, 2009). The leader also delegates duties as per the specialty of employees which further aids them to reach towards the goals and objectives; thus this aspect should be adequately managed in future period as well since through this, the possibilities of conflicts and uncertainties can be reduced. The business is also able to enhance efficiency of workforces as it organizes numerous sorts of development sessions and this should be carried forward in future aspects as well. Apart from such points, training sessions for employees can also be organized in which workforces can be guided to use online selling methods with private labels and here better services can also be provided related to food and beverage delivery. Those people who are on holidays should be given proper attention so that promotion can directly be facilitated. The Umami restaurant is also suggested to make prominent improvements in business and other expansion plans for obtaining growth and success aspects.
Recommend with justification, new areas in which the business could be expanded
Umami restaurant has been operating business in hospitality market that probably aids in enhancing success and prosperity aspects. Moreover the current operations of eatery are also efficient enough to manage its position in numerous market places. From many researches, it is clear that Umami restaurant has range of products and services that helps the business to manage customer satisfaction; but at the same the current customer base can aid the business in developing new service aspect for further improvements in the same type (Ward and Daniel, 2012). It is suggested to the business to expand the business in diversified market places so that the opportunities of profit maximization can be enhanced. The business can also expand its current categories in other types of services such as grocery, clothing and in financial sector.
The marketing department of Umami restaurant must analyze the areas where it could innovation and development and this is also essential for long term sustainability. Umami restaurant must focus on different market segments and as per the needs and this can also promote word of mouth publicity. In order to expand current operations, the business is required to recruit talented work pools so that they can easily manage work practices successfully (Small Business, Enterprise and Employment Bill: impact assessments, 2014). Umami restaurant must enter into international market places so that the opportunities of promotion can be expanded. Product development is the best strategy which can be adopted in this situation so as to manage development and advancements in the business. Through this, Umami restaurant will be able to enter in diversified market place.
Produce an assessment of existing business objectives and plans
Aims and objectives are those aspects of business that directs the business to operate functions in competitive market place (Sian and Roberts, 2009). Umami restaurant has developed several aims and objectives and as per that it conducts all the operations in prominent manner. The main of Umami restaurant is to be at the global position in hospitality market place; however apart from that diverse objective are also developed which are mentioned as under:
- To include all sorts of cuisines in the current menu for growth and success
- To enhance profitability ratio in terms of enhanced revenue ratio
- To acquire competitive advantage from the industry players
- To increase its existing position and also to facilitate business expansion in numerous other markets (Sackett, Rose and Adamson, 2003).
Hence these are the chief objectives of Umami restaurant which it aims to acquire and for that business has also developed several plans and policies. The top authority of the restaurant believes that the mentioned aims and objectives can be accomplished if Umami restaurant is able to emphasize on strategic facets. Similarly, it is also crucial for the restaurant to develop competitive positioning and for that adequate tools and techniques can be used simultaneously (Peltier and Naidu, 2012). The aims are briefly discussed in the above scenario which states that Umami restaurant must emphasize on SMART objectives since through this; long term sustainability and goals can be acquired. The restaurant has also determined several plans for entering into new markets with indifferent products and services and this is also capable in encouraging sustainable position of business.
Revise business plans to incorporate appropriate changes
As per the business plan, it has been seen that Umami restaurant needs to facilitate several changes in current practices so that innovation and development can be facilitated. (Patra, 2006) The restaurant is also required to plan each and every aspect so that competition and uncertainties can be managed in proper manner. One of the most crucial aspects of business plan is financial administration in which it is crucial for the management to allocate and use resources in proper manner. There should be proper policies and planning so that all the facets for business management can be encouraged appropriately. The restaurant has yet specified certain standards so that short term and long term goals can be achieved. From the entire discussion, it is clear that there are certain areas where changes should be implemented in business plans so that work practices can be properly adjusted.
The business critically should manage financial aspects in proper manner so that investment capacity can be increased. At the same time, it is also essential for the management of Umami restaurant to facilitate changes in product services and with that changes should be made on additional services such as schemes, discounts and coupons etc (Kneer, 2009). As compared to other business aspects, it is essential for Umami restaurant to emphasize on different aspects that makes restaurant competent and along with this thing, proper focus should be there on places where by customer get products and services. It is being essential for Umami restaurant to expand the opportunities by critically emphasizing on all elements of marketing mix.
Prepare an action plan to implement the changes
Each and every sort of business plan needs to be modified so that to get more opportunities of success and growth. Similarly in the present case, Umami restaurant is also required to facilitate transformations in current and future business practices for the purpose of maximizing profits and revenue ratio (Islam, 2009). From the discussion, it is clear that changes are required to implement in Umami restaurant and the major area where change is mandatory is technological facets. The business must focus on technological development so that advanced tools and techniques can be used for managing business purposes. Similarly, it can also be used for facilitating innovation and creativity in management. In order to implement changes, Umami restaurant is requisite to plan each and every facet along with the process so that changes can produce better and optimum results. While executing changes, it is essential for Umami restaurant to inform all the employees so that resistance to change can be managed appropriately. At the same time, while developing the plan, advices and opinions of all workforces needs to be involved so that a level of motivation can be developed in them (Hunger and Wheelen, 2000). Change can successfully be managed if employees are able to execute in business processes.
Umami restaurant can manage competition and uncertainties by including innovative and different cuisines in the services. In order to become differentiate, Umami restaurant can also offer numerous combos and it can also reduce cost through pioneering services.
It is essential for the management of Umami restaurant to minimize cost by purchasing raw materials in limited prices and also by downsizing unwanted business possessions.Free home delivery policies should be introduced as this can also persuade other customers and large amount of orders can be acquired. Proper services (after sales and others) should be considered by Umami restaurant so as to safeguard the existing customer base. Adequate attention should be given to new customers. The Umami restaurant can diversify its own services in diversified markets as per the choice of customers and this can also help the restaurant to facilitate expansion and diversification. Discounts and schemes can increase sales; however on the other side quality conscious people may not purchase the same services due to the fact that lower priced goods are less quality concerned. Promotional aspects need to be changed and here the exact focus should be on attractiveness of product so that large number of customers can be attracted.
Report on the impact of the proposed changes on the business and its personnel
Apparent to all cases of change management, Umami restaurant could also face problems related to proposed changes in the business scenario. Changes always influences mindset of employees and this further impacts their behavior which possess pessimistic influence on performance level. Some workforces may give support to organization while implementing changes while some needs much effort to motivate them for change management (Goodier, 2012). The basic reason which affects change policy is the lack of interest from employees and this is due to many reasons such as lack of familiarity with technological aspects, fear of failure and insecure aspects. Thus it is clear that changes always impacts mindset of employees, so business needs to motivate the work pools in adequate manner so that change can be executed in adequate manner. Here Umami restaurant must plan itself for resistance to change by formulating numerous plans and strategies.
In general, the implemented change may have huge impact on the overall functioning of the firm. At present operating in hospitality sector has become more important for Umami restaurant top level management to manage changes within the firm so that expansion of business operations can be done in effective manner (Cole, 2003). Therefore, in order to manage change in appropriate manner, restaurant should indulge change management model of unfreezing, changing and refreezing. These are:
Unfreezing – It is the period in which employees face several issue regarding any change because they are habitual of existing operations and a modification may impact on the overall functioning. Therefore, it is the responsibility of top level management to motivate and execute them to indulge the change so that they can understand the importance of alteration (Lewin Change Theory. 2012).
Changing – In this stage, by indulging effective leadership style and communication style managers can motivate employees and explain the changes that employees have to make within their work in order to make modifications in overall functioning of Umami restaurant appropriately and effectively.
Refreezing – The main aim of this stage is ensure that changes are made within the firm are permanent in nature (French, 2009). Therefore, managers have to play significant in this stage because they have to monitor each and every employees performance after the change and if they are unable to reach the benchmark then organize training and development sessions so that workforce can enhance its skills and abilities to achieve desired benchmark of Umami restaurant.
- Acquiring market share
- Formation of new products in existing line
- Satiating the needs and demands of customers
- Development of brand identity (How to measure small business performance, 2011)
- Internationalization of business
First of all, Umami restaurant will have to analyze existing market share of the restaurant in home state and after that it should analyze prospective opportunities for future growth and success. Here the restaurant will include several new products and services for the purpose of expanding current restaurant operations. Adequate amount of attention is required at this phase. The restaurant is required to give adequate services to the customers as that can also reduce the amount of customer switch over.
Proper amount of focus should be given on brand development and that is possible with the help of proper promotional strategies. Here Umami restaurant should think for business expansion and diversification.
Lastly the restaurant should emphasize on internationalization of restaurant operations by capturing attention of those customers who are from diversified market place
Monitoring and controlling both are the significant aspect of business operations which helps in minimizing the risks and uncertainties regarding future contingency of the firm. According to the present case, Umami restaurant functional manager has to monitor and control functioning within firm (Chaston, 2008). Whereas, top level management has to focus on maintaining the external factors which could impact firm in implementing and maintaining change in appropriate manner. However, the above Gantt chart assists evaluating the time required to undertake changes in effective and efficient manner. Herein, the timetable for managing change in the given scenario for Umami restaurant as well as providing aid to overcome future obstacles and issues regarding the expansion of business operations.
From the entire research report, it is evident that small scale businesses are also crucial for hospitality industry. The present research report has discussed some techniques which restaurant can measure its performance and efficacy level. Lastly a specified plan has been included related to management of change in business enterprise.
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