Small business enterprises are those set ups that are largely contributing in the economic development of nation to a great extent. These are mostly referred to be small scale business establishments with no more than 250 numbers of employees. Many startup businesses are together representing themselves in the category of small to medium size organizations (Storey, 2016). It is where they are either owned by the individual’s themselves depicting a sole proprietorship firm or by their family members in partnership. There exist yet other criteria to fulfill the norms of Small to medium size business entities also termed an SME where they must possess less than £25m turnover with minimum £12.5m gross assets. The present report has outlined such constitutional formation of SME organisations by electing an analogous venture named Performance in People Ltd. It is one of the renowned SME Corporation in UK known for their customer service consultancy and mystery shopping.
1.1 Producing business profile by identifying SMART objectives and strengths and weaknesses
About the company:
Performance in People Ltd. is one of the organisations that works with global and national brands as a consultancy firm so that customer experience can be improved. This organisation has about 35000 mystery shoppers and 90 employees working at the head office (About Us, 2017). Established in 2000, the organisation has been able to achieve great recognition amongst mytery shoppers. The company has developed wide range of applications that are helpful in increasing the satisfaction level of customers with enhancement in sales.
This is in context to create the business profile of Performance in People Ltd where they are mainly relied upon their undertaken organisational missions and visions that are as referred below-
- Mission- A considerate mission of the cited entity is to deliver a variety of industry leading amenities as a way of improving the customer service level for their respective clients and users (Curran and Storey, 2016).
- Vision- It is in correspondence to the above stated mission of the quoted firm where they are thoroughly looking to improve customer service level across UK.
It is therefore on conducting both macro and micro analysis of Performance in People Ltd., below are the macro environmental factors that involves some external environmental factors influencing the undertaken decisions of business-
- Economic factors- These are the factors that largely impact upon the fiscal decisions of business organisations like Performance in People Ltd., where UK is presently dealing with a stabilized economic status (Burrows, 2015). In context to which, there are now equal number of middle to low income classes that can be targeted by the cited firm.
- Competition/ Competitors: Competition is a factor which helps in bringing more effectiveness in the functioning of the organisation. It also helps in prohibiting the exploitation practises against customers which often occurs due to monopoly (Hayes, 2014). The competitors of Performance in People Ltd. are those firms and organisations which are functioning in the consultancy sector. Whitehouse Consultancy is one such competitor of this organisation.
- Demographic factors- These are those influential factors that plays a crucial role in determining the value of organisation’s projected products and services. It is where this constituent is likely to specify the actual preferences of the customers that in turn assist the quoted firm to design accordant commodities for them (Agrawal, 2016). It is thus in context to the present demographic trend of UK, there exists a large number of young age users who are more concerned with the acquisition of modern-day facilities.
However, the micro factors are certain internal environmental factors that equally influences the business to a great extent and are as referred below-
- Managers- The appointed managers of Performance in People Ltd Are extremely supportive in nature where almost all their employees are favourably agreed to their undertaken leadership methods (Storey, 2016). Also, all the managers are mostly positioned at this level after going through an internal promotion that in turn depicts their thorough cognition about the overall work procedures of the cited entity.
The above carried analysis have further assisted to assess the strengths and weaknesses of Performance in People Ltd., that are as defined below-
Strengths- A positive work environs in Performance in People Ltd is referred to be their leading forte with a well-managed team of individuals. This in turn have illustrated varied progressive work agendas by them where they are getting into greener work technologies in a dedicating manner with a prior support of their proficient managerial team. Quite large customer share has been acquired by the company according to the operational standards. The mission and vision of this organisation have been developed appropriately which automatically helps in building strong strategies.
Weaknesses- A lacking agenda of advertisement with less recognition of their business are referred to be certain weaken dimensions of Performance in People Ltd (Goss, 2015). Additionally, low level of fund to invest more into the enlargement of their existent business is together referred to be yet another major weakness of the elected company. The company is not so compatible or adaptive to technical advancements which means it lacks updation of technology.
Opportunities: The business world is full of opportunities when assessed and analysed on time. It is important for the concerned company to recognise and utilise these opportunities so that larger benefits can be gathered. Performance in People Ltd. has opportunity of improving its services and products for the current customer share (Blackburn, Hart and Wainwright, 2013). On the other hand, the organisation also holds an opportunity in bringing in new services and products or expand business in different locations. This helps in increasing brand awareness and recognition amongst potential customers.
Threats: Increasing competition is a major threat which is faced by the company in the current functioning market. This competition if not tackled correctly can bring in a lot of trouble in the near future (Cavusgil and et. al., 2014). It is possible that the entire customer share will substitute services of Performance in People Ltd with other organisations' products. This implies increasing awareness of customers and opportunities for competitors is a major threat for the company. Furthermore, the factors like Brexit, Immigration and diversity are more threatening for the company.
Both these analytical approaches have subsequently supported in framing three SMART objectives for Performance in People Ltd., as stated below-
- To determine the factual preferences of today’s contemporary set of customers with a special context to young age consumers.
- To identify those influential factors that directly impacts upon the purchase decisions of customers (Blackburn, Hart and Wainwright, 2013).
- To ascertain the role of customer satisfaction to enhance the loyal perspective of users associated with Performance in People Ltd towards their proposed goods and services.
Key Performance Indicators:
The key performance indicators are referred as KPIs which help in developing appropriate links with the business objectives so that strategic actions and activities can take place. The KPI for Performance in People Ltd. is based on the ranking and ratings which are acquired by customers and stakeholders in surveys and feedbacks. Furthermore, the index and percentage of employees or customers that are satisfied with the services and products of company.
1.2 Analysis using three different comparative measures
This is basically to analysis the present business performance of the quoted entity with support of three distinct comparative measures, as outlined below-
- Customer satisfaction- It is a foremost method to analyse the business performance of the cited firm by continually surveying their clients and users by the employees via feedback forms, etc.
- Benchmarking- It is yet another beneficial tact by comparing one’s own performance with the contenders as a way of analysing any gap in one other’s provisioning (Ratten, 2014).
- Reviewing progress against business objectives- This is one of the most feasible tact while referring to expand the business by investing funds where the targeted objectives must be constantly measured by the quoted entity to check their growth.
The key performance indicators which have been used by Performance in People Ltd. include ratings, rankings and percentage satisfaction. These parameters have been helpful in bringing more effectiveness in the delivery of services and products.
Financial Profits: The financial profits help in stabilising and fulfilling the monetary demands that occur in different business operations. There is always a minimum margin which needs to be kept so that expenses can be managed and further investments can be made. In the process of improving customer service, the company does earn sufficient profits which are further utilised for different operations.
Return on investment: Any investment that yields maximum profit for the company without incurring any other cost is considered as return on investment. The Performance in People Ltd. is able to manage their resources especially the financial ones effectively and bring in many return on investment projects.
The Whitehouse Consultancy is one of the prominent competitors of Performance in People Ltd. The resources which are utilised by the company have to be accurate when considered in terms of quantities. The company is able to strategically plan and utilise its resources so that business objectives are met and there is no much wastage or loss. On the other hand, White consultancy is also providing a neck to neck competition which helps in bringing innovation and strength for the company.
2.1 Recommending appropriate actions with justifications to overcome the weakness
It is on the basis of above identified weaknesses of the cited firm where they are currently referred to have a low financial prospect to further grow their business in a directional manner. It is however due to a less fiscal stability, they are together dealing with a less scope of expansion to further extend their business operations at an international level. However, they are hereby recommended differentiating themselves by proposing more diversified products and services for their clients and users as a way of contending their rivals in the market (Barber, Metcalfe and Porteous, 2016). Apart from which, they can also opt for a private equity partner who can refer to invest into their business. This in turn will support them to expand the business to certain exponential marketplaces to acquire a profitable status with more number of shares and revenues. However, they can also refer to move onto some emerging markets by carrying out a primary analysis to recognize the realistic needs and demands of the users they will be targeting over there. This will be proven to be a first move advantage for Performance in People Ltd to overcome their weaknesses in a distinct manner.
This is on the basis of above identified weaknesses of Performance in People Ltd, where they are lacking in promoting themselves with some effective marketing strategies like advertisements, etc. Also, they are referred to have less technical cognition with fewer funds to invest. It is thus to get rid of these weaken dimension, McKinsey's 7S model can be used by them in concord to its below defined measures.
- Strategy- This is to adopt some effective ways to resolve the above identified issues by referring to a yearly planning approach by using certified techniques to operate in a digitalised manner.
These techniques which are to be used for finding the best strategy:
Management skills improvement: Small medium enterprises need to improve the skills of their management. It is management who take care of the employees and improve their skills in respect of their satisfaction. They have to make interpersonal contact with the employees thereby achieving the standards of the organisation and helps avoiding conflicts.
Professional procedures or advice: Small and medium enterprises need professional advice from some of the experts, or specialists. Generally they need to take advice from the accountants.
- Structure- Herein, cross functional groups along with steering teams can be hired by Performance in People to efficiently operate into a directional manner. This together indicates another prime requisition of integrating with the digitalised tact of marketing by appointing a distinct department of IT.
- Systems- Incorporated measures for the reporting of effectiveness obtained from digital marketing by referring to certain technical solutions.
- Staff- A breakdown structure for the staff members can be employed on the basis of their educational background, etc., to employ them at the most suitable position.
- Style- It is in context to the organisational goals of Performance in People Ltd where they should adopt effective styles of leadership to handle their workforce by outlining a long term vision for transformation.
- Skills- Classifiable abilities of the key staff are required to be interpreted to address some specific areas such as the selection of the suppliers, management of project and content management by using specific e-marketing tools.
- Shared values- These are some guiding concepts for Performance in People Ltd to successfully operate into the world of digitalization. Wherein, they are hereby required to arrange liable sessions of training and development for the workers to acknowledge the disciplinary way of utilizing the digital tools.
2.2 Analysing the existing performance for maintaining the strengths
It is in concord to some leading strengths of Performance in People Ltd discovered in the preceding section of this report and in context to which, they are referred to have a reinforced staff with active leaders and managers to handle their overall work prospects. In addition to which, they are also possessing a fortified outlook towards technical associations at work by getting into some greener technologies to accomplish their respective assignations (Cavusgil and et. al., 2014). However, it is not referred to be a sufficient configuration of their work to succeed towards a contending business for a long term survival. They are thus required to get into some more beneficial agendas to fulfil the factual expectations of their clients and users.
This necessitates them to carry out a thorough analysis of their market whose trends often kept on changing by together altering the customary demands of the consumers. However, for bringing on such changed work set up at the workplace, the leaders and mangers are together required to make some additive efforts to prevent their workers from resisting it (Cassar, Ittner and Cavalluzzo, 2015). For this, they may refer to instil a lucrative reward system at work to appreciate the standardised work performance of the employees. Several motivational tools involving the tact of provisioning both monetary and non-financial benefits to the employees will together justify such undertaken approach.
Besides this, there together exists some other recommendatory measures so as to maintain the existent performance of Performance in People in Ltd with retained strengths-
- Maintained market share with retained profit/sales & cost- This reflects a foremost objective of organisations like Performance in People Ltd to maintain their market shares with raised sales and profits under a maintained cost. For which, the cited firm should hereby conduct regular surveys in their market so as to acknowledge the recent market trends and launch accordant products and services for the users to satisfy their latest needs and demands. This will in turn intensify their sales with a raised level of earnings that will automatically turn into higher level of profits and market shares.
- Maintained performance records/feedback- This is yet another major consideration of organisations like Performance in People Ltd where they must keep pertinent records of their yearly performance by together exchanging feedbacks from the concerned officials.
- Customer satisfaction/ Benchmarking- This is one of the most important outlook of the quoted firm to retain the customers where they must be fully satisfied from the services that are being provisioning to them. Apart from this, benchmarking technique is together referred to be a considerate measure to evaluate their attained objectives with that to the set objectives to ascertain any gap among the two that can be fulfilled with some likely measures.
- Employee motivation/maintain their strengths- Employees being another most important part of an organisation are always required to be kept motivated where Performance in People Ltd should also use some considerate measures to encourage their workers. This is basically for inspiring them to work in accordance to the set standards of the organisation with an ultimate goal of fulfilling the factual desires of the customers.
Analysing the existing performance of the organisation various tools need to be used:
Marketing techniques: this is a very important aspect to be considered so as to target right customers. Segmentation, targeting and positioning (STP) and 4 P's concept needs to be used which describes which customers to target.&n