Introduction to Small Business Enterprise
The undertaking report is based on small business enterprise with the organisation taken in this report being Eles Cothing. It is UK’s leading supplier of wholesale clothing and it is supply chain store clothing to shops, eBayers, market traders, and fashion shows throughout Nottingham and the UK. It was formed in 1990. The company is owned by Sarah and Laurence Sugarman who has been involved in the wholesale traders business for many years (Kourdi, 2010). Business consultant is very important to develop commerce skills for monitoring and administrating the performance of small business unit. It provides support and information to assist in the form of project work. Consultant helps to manage the business in proper terms; consultant helps to improve the skills of those involved in the company, managers and the top executives being trained by consultant so that they become able to run the company more effectively (McDonald, 2014). It aims to supply businessman with wholesale discount clothing and has a fantastic and easy to use website (Bessant, 2011). This report focuses on the processes involved from change management of monitoring and administrating the performance of a small enterprise like Eles. Moreover it provides orientation to the business about various aspects for developing their business and makes a plan to manage business when changes occur in the organisation.
LO1 EVALUATE THE PERFORMANCE OF ELES CLOTHING
LO1.1 Elaborate on the profile of Eles Clothing identifying its strengths and weaknesses.
Eles Clothing is in the fashion industry and is the leading ex-chain store clothing wholesaler in the UK. It started in the year 1990 and is the largest and one of the victorious wholesalers that specialize in sale of leading ex-chain store clothing, famous brands and cheap clothing and ladies wholesale clothing. It always offers high quality and wide range that makes available from many different high street stores at great prices. Delivery is always very fast and the customer service is excellent and the customers are timely and well informed about the information through their email newsletters about new lines or special discounts (Bessant, 2011). Eles clothing is a store for the fashionable and point for clothing items, and it offers clothing items in all prices.
Vision – To be the company that understands best about customer needs and accordingly develops the product, service and self fulfilment need of their customers (McDonald, 2014). Its vision is to help short skinny individuals and prospective customer have an online boutique store and eventually a store front that offers varieties of quality brand name clothing accessories at an affordable price.
Mission - To provide service and support to their customers with the utmost level of professionalism, to listen carefully to their needs and be innovative, always give 100% of effort to achieve further to provide quality and value for money and work with honesty and integrity. It offers fashionable, reasonable brand name clothing and accessories to its clientele it promises to developer their customer option and choices to resolve the problem of client regarding fashion.
LO1.2 Analysis carried out of Eles Clothing using comparative measures of performance.
Business analysis can be carried out by using comparative performance measurement (CPM). It is used to advance the administration and operations Eles Company and improve policy and resources allocation decisions. CPM helps to improve business performance in the organisation and creates similar competitive pressures by comparing the performance of similar agencies (Rae, 2007).
Further it helps to find out how well employees of the Eles clothing are performing as compared with others. By focusing on results, CPM helps in communicating to the community an agency’s completion and activity which compared with other identical agencies. Moreover, with the progressing of customer survey questions and instruments, CPM is being used by Eles clothing in order to evaluate the level of satisfaction of customers on the basis of services that been provided by company (Wickham, 2006). It also determines the best practices and provides the platform of data that aids in analysing analysis and identifying what factors can results into improved performance. It has the capability in offering high motivational benefits in terms of privatization; and by evaluating performance among various other related agencies that develops aggressive force for improved quality and efficiency. CPM is used in Eles clothing to find out the rooms that requires modification where the techniques of total quality management can be applied in an effectual manner.
LO2 SUGGEST CHANGES FOR MANAGEMENT AND BUSINESS PERFORMANCE IMPROVEMENT
LO2.1 Recommend with justification, appropriate actions to overcome the identified weaknesses in the business.
The weaknesses that are being identified above can be overcome by recommending and justifying the following steps by the organisation as mentioned below:
Setting goals - By setting attainable goals that are well defined and breaking down goals into smaller steps helps the organisation to achieve its prior aim that is to satisfy its customer and to give them best quality products that are a prerequisite for expansion globally.
Organizing ideas- It helps to encourages the use of outlines, graphic organizers or webs to organize ideas for a large project and use a structured approach, such as two or three column notes while reading or studying (Kochanski, Lyons and Kriemelmeyer, 2007).
Organizing Materials – Develops a system for organizing materials in folders, backpacks and lockers or it helps to avoid unnecessary wastage of raw materials and get the material in case of shortages when the company does not get appropriate material for production.
Self- monitoring – It helps the organisation to find out the place where improvement is needed and there is a need of training to be given so as to improve the efficiency and the quality of the products that will help fight competition from standalone stores.
Improve quality of brand – It is necessary for this organisation to produce best quality products and fashionable clothes and to satisfy all age group people with their products and service and hence avoid brand switching among the clients.
Replace old strategies with new ones – New and innovative strategies help the organisation to survive in the competitive market. Because planning and strategies are effective only till it is new or effective in the market and market demands are changing according to these changes the organizational planning and strategies should also be changed and managed in such a way that helps the organisation to achieve its organisational aim.
LO2.2 Analyse ways in which existing performance could be maintained and strengthened
Existing performance of the managers and employees of this organisation can be maintained and strengthened by these steps are mention below:
Planning work and setting expectations – Employee performance can be planned by determining factors and principles of their performance appraisal scheme. However, it is required that perform factors must be of standards should be quantifiable, comprehensible demonstrable reasonable and attainable. With the help of critical factors, employees can be held likable as individuals for the set of work assignments or responsibilities (Bessant, 2011).
Continually monitoring performance – Monitoring presentation includes practicing development reviews with workforce where performance of employee is compared against their fundamentals and principles. By continual checking, controller recognizes the improper job and hence offers approached support to them in order to boost the performance instead of waiting at the end of the time frame when actual summary rating levels are allotted (Steiner, 2010).
Boosting the capacity to perform - Managers certainly appraise and identify the developmental requirement of the workforce which means increasing the capability to execute job roles by offering desirable training or giving assignments that develops new set of skills. Providing training and developmental opportunities to the employees encourages good performance, strengthens job related skills and competencies, and helps employees to keep up with changes in the workplace such as introduction of new technology.
Cyclically Rating Performance –Rating reflects comparing workforce or team performance against the factors and values in an personnel's performance plan and offering a synopsis rating of the records. The score of records has a behaviour on a range of other personal deeds, for instance yielding within-grade pay boosts and fixing added maintenance service credit in lessening in force.
Reward good performance - Rewarding is an activity which includes identifying employees, in personal and as member of team, for their work and job and comprehending their assistance to the agency’s work. Effectual director don’t wait for the firm to importune suggestion for official rearwards prior to recognition of effective performance (Burns, 2011).
LO2.3 Recommend with justification, new areas in which the business could be expanded.
Business expansion of this business in the new areas is done through these steps as under:
Boosting sales in the prevailing markets - It is one of the simplest and risk free practicing of boosting the operational area. This tactic requires a greater place, diverse pricing tactics, and new promotion tools.
Introduce a new product – It reflects to normal development in the business activity, not merely an expansion approach. It can be positioned as value added and being receptive to consumers requirement, this can be a relatively risk free method to enhance business (Gill, 2006).
Market Development – Above mentioned options require huge cost outlays and hence possess uncertainty as well. However, taking products into new markets or demographic segments must requires intense market enquiry, testing and series of new promotion strategies, and i.e. if the risks are high, profits will be even larger and for this business is looking to enhance by these two methods of expansion are predictable (Rae, 2007).
Franchise or licence – licensing carries low risk, but it certainly demands giving up a certain amounts of control. Moreover, licensing is a patent, trademark or industrial design that sells manufacturing, distribution or production rights.
Strategic Alliance – A merger or acquisition joint two of the companies in order to enhance customer platform, augment assets and increases operational effectiveness. But it certainly requires finding of the right associates. These partners can be a new distributers.
LO 3 REVISE BUSINESS OBJECTIVES AND PLANS TO INCORPORATE PROPOSED CHANGES
LO3.1 Produce an assessment of existing business objectives and plans
Existing business objectives and plans can be assessed by following:
Fill the store – First purpose of a high- end clothing store is to load the store with high- end clothing. It has a higher price tag than the other stores in terms of fashion nd styles also it is very higher than the others.(Burns, 2011).
Advertise to the target market – High end clothing stores have advertising objectives to sell their clothing more in the market as compare to other apparel stores. Brings out advertisement in high end local newspapers and other fashion area it covers to makes the people feel its importance.
Exhibit the high- end Image – The location of this store proves high end status to customers. A clothing store on Rodeo in Beverly Hills, California, is expected to carry expensive clothing, while a store in small town shopping mall may not have much reputation for sophisticated attire (Bridge, 2009).
Offer More to Customers – High end clothing stores provides more to their customers to show loyalty, so they should make this an objective of their business. It could be as simple as offering a glass of champagne to those trying on clothes.
LO3.2 Revise business plans to incorporate appropriate changes
The five key things to incorporate in a business plan can be seen as:
Management – Ventures capitalist cite the quality and depth of the management team as the single most important factor in the investment decision. They evaluate teams based on management’s relevant industry experience and track record for building profitable businesses (Alsos, Ljunggren and Pettersen, 2003).
Market size, growth and trend information – Investors seeks information quantifying the market opportunity. Better option enumerates the dimension and the augmentation speed of the market niche and it further elucidate the macro factors which influences market demand (Bessant, 2011).
Sustainable competitive advantages – The factors that differentiate the business from its rivals and generate barriers to entry for new competitor are key asset thoughtfulness.
Strategies for growth - Investors are interested in some major strategies organization is using to raise the industry. These includes advertising strategies for growing share and targeting new customers, product services enlargement strategies and approach for improving internal efficiencies and advance margins.
The financial model – Best plans share the company’s cash burn up rate, operational capital and capital investment needs and timetable to breakeven on a cash flow and operating profit basis. Investors ask for information as regards projected revenue growth and sustainable operating and cash flow limits (Elam, 2008).
LO3.3 Action plan to implement changes
Action plan is developed in order to apply changes in the operations of business enterprise and directly helps to manage change in positive manner. It takes into consideration various steps and information like what changes will occur, who will carry out changes and by when they will take place. Else company is planning to bring new changes in the enterprise for which this action plan will be beneficial for organization. These changes will affect the working style of employees working in the enterprise and will surely act as development tool. To get the best performance from the employees of this organisation the quality standards are being set so that the work and the quality can be maintained in the Eles Clothing. The expected market size in the coming 6 months or a year is to expand the market in the same country and the other countries as well (McDonald, 2014). The different strategies that are being used by the Eles Clothing Company are its penetration to new domestic markets and diversifying its product. Licensing of their products and by expanding its demographic. Further the financial model is adopted by this company is to represent the performance of a financial asset or portfolio of a business, project or any other investment.
Through this better services can be provided to the consumers like new clothes that are of unique nature and matches with the requirement of target market. New employees will be appointed so that present staff members do not feel pressurized at the time of working. All the changes will be carried out by top management and leaders will be appointed so as to manage all the employees in effective manner. The change will take place in 6 months and around 1 year is required to coordinate all the activities and carrying out it efficiently.
LO4 IMPACT OF CHANGE MANAGEMENT ON BUSINESS OPERATIONS
LO4.1 Report on the impact of the proposed changes on the business and its personnel
From the proposed changes the organization can integrate between the various departments and most importantly they will be in position to disseminate the information within the various hierarchical levels (Kochanski, Lyons, and Kriemelmeyer, 2007). Through this factor the performance of the employees working into the company could be increased and their contribution into the organizational success could be enhanced. Ahead the significant aspects include the cost increment as well. The technological changes demand the high level of investment into the business (Kelly, 2010). Changes that are being made in the organisation are beneficial for the performance of the employees as now they have become more capable to do work for their goal. The changes regarding bringing technological changes makes the employees of this company to expand their product using social media and by using web portals (Elam, 2008).
LO4.2 How changes will be managed in the business
For every firm bringing change and managing it appropriately is one of the biggest challenges. Nowadays, with constant increase in competition it becomes more difficult for firm to sustain without changing its operations as per the modifications in trends and environment (McDonald, 2014). As in this case, Else Clothing Ltd is expanding its business operations from women wear to all age wear. Therefore, employees have to undergo a phase where their overall operations will differ. In order to overcome this obstacle company can use following change management model.
Unfreezing – At the initial stage of change, employees are unable to resist the modification because their overall functioning structure is changed. Several experts state that, it is the most difficult period, however management has to indulge several motivational and encouragement strategies to make employees feel better about it.
Changing – During this stage Else Company Ltd can implement the change by effective leadership style so that manager can guide employee to success and help them in undertaking change in appropriate manner (Marshall, 2012).
Refreezing – This is the last stage, during this stage manager has to ensure that change policy incorporated is working effectively and appropriately. However, in this period manager have to monitor each and every employee working and if required further training and development can be given to improve their skills and abilities regarding achieving desired benchmark of Else Company Ltd.
LO4.3 Monitor improvement in performance of the business over a given timescale
There are some major components for measuring and improving business performance which are as follows:
- Define goals – It helps to achieve the organisational objective within the time limit and with full efficiency.
- Determine the metrics to Measure Company’s performance – marketing is important for sales growth, market share, distribution methods and production, administration, management, technology, research and development (Rollinson, 2008).
- Develops methods to collect and organize data – Determine a process for tracking and reporting all relevant data. Report on trends that emerges from its finding on a regular basis
- Understand its strength and weakness – Rate the company on developed list of metrics in comparison to its competitors. Look for clusters of strength that gives company a competitive advantage.
- Focus on customer retention – It is required to retain employee as it helps in gaining new opportunities for development.
- Measure marketing effectiveness – Effective measurement act as a foundation for the futuristic strategy so to keep track results is the only way to improve its marketing efforts.
- Track employees - Retaining key employees who are enthused is very critical to the success of company’s (Sun, 2010). This can be done by tracking the success of its employment process and retention levels as well as employee satisfaction and performance.
- Apply the information – By Analyzing the astuteness it has collected, drawing conclusion and making recommendations based on it. Creates a scheme for seeking opportunities to demonstrate its company’s strength. In case if weaknesses are critical drawbacks to its company’s success then creates a plan for overcoming them (Wickham, 2006).
The undertaken report has concluded that small business enterprises need to make more efforts in order to get more profit from the market and it has more competitors further it carried out examination of the business with the help of relative method of performance. Moreover it has produced an assessment of existing business objectives and plans and makes various changes that helps the business to grow in the competitive market the changes made in the form of technology helps the business to attracts more and more consumers through using websites and by advertising its products using social media.
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