INTRODUCTION on Small Enterprise Business
Small Business Enterprises are those enterprises, which are the micro-entities or small companies and fall within the limit of small and medium size enterprises. The present research report speaks volume about the two case studies. The first one is “Boots a private limited company”, which deals in projects of health care and beauty products. And, another one is “Mcdonald's a fast-food restaurant company”. This current report comprises of detailed study of both the companies.
Case Study For Business Enterprises – Boots
Strengths and Weakness within Boots: Concerning towards the strengths of Boots, company is one of the leading retailer in the industry of health and beauty products. The firm has also strengthened its brand position in the beauty and cosmetics products, which makes them successful in their industry. Weakness of Boots is in terms of its competitors is that they have tuff competition with the grocery retailers of UK who are selling the same products in differential price and with heavy promotional activities (McDonald, 2010). The organization also suffers from the global slump and has more competitive pressure from its competitors.
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Analyzing the business of Boots by using comparative measures of performance
- Balance scorecard: Balance scorecard of the company states that there is a huge increase in the sales of the company, as currently the firm has 1400 stores all over UK and they have also employed 58000 employees in their business.
- Economic Valued Added: EVA of Boots states that they had earned huge profits in year the 2012 and has added economic profit, which is more than their cost of financing of the company.
- Inventory growth: The organization has achieved huge growth in terms of their product development activity and also in their production capabilities. They have incorporated variety of features to attracted huge number of customers towards their products (Hutt, Gavieres and Chakraborty, 2007).
Recommending with justification and appropriate actions to overcome from the weakness in business of Boots
The main weakness of Boots is that they face intense competitive pressure from its competitors and these can be overcome by the firm by offering the products at some low prices in comparison to its competitor’s products. Products with low prices along with best quality will overcome the weakness and magnetize the customers towards Boots. They should also use promotional activities for their products and this can be done trough free gifts and vouchers for their products (McDonald, 2010). Finally, the weakness of the company can also be surmounted by analyzing and comparing with its competitors that where the Boots is lacking in contrast to the competitor’s products and services.
Analyzing the performance which should be maintained and strengthened:The business performance of Boots is very superior and this should be maintained. Company is adequately meeting the needs and demands of the customers through variety of products in health and beauty sector. The firm is very much conscious towards its customers as they are the heart of their business and thus, they should offer the products and services according to the needs and desires of their potential consumers (Ireland, Hitt and Hoskisson, 2008). Boots also should strengthen its brand position in the market by offering exclusive, unique and innovative products to their customers in the market.
Recommending the new areas in which the business could expand its business:
Boots can expand its business in the sector of fashion clothing as company can sell designer and fashionable clothes of different brands in their store. Boots already sell their products of different brands such as Armani, Gucci, Dior, Channel, Diesel, Calvin Klein, Versace etc. So, they can expand their business by selling the clothes of these brands. Expanding its business in branded clothes will increase their business and also enhances their brand value in the market (Daft, 2009). Selling the clothes of world’s best brands will also enhance the brand image of the company and attract more customers towards their side.
Producing business objectives and plans for Boots:
Leading objectives of Boots is to focus on the looks of the people and help them to look better and through this they also wants that their customers to feel best by using their products. The firm also wants to accomplish its objectives by delivering best services in the sector of health and beauty products. The core business plan of the Boots is:
- Developing the business of Pharmacy-led health
- Beauty retailing at international level
- Wholesaling of pharmaceutical in all over the world.
Revise business plans to incorporate the changes for Boots business:
To incorporate the changes for the business of Boots, its plan should be revised. Their plan should be revised according to the current situation and conditions of the market and this can be achieved through fulfilling the needs and wants of customers. Business should more focus on the performance of their products and promotional activities are to be incorporated in their new business plan (Hutt, Gavieres and Chakraborty, 2007). They are also required to pay more emphasis towards the pricing of their products so that their brand can compete more strongly in the market of United Kingdom.
Preparing an action plan to implement the changes for Boots business:
- Action plan:Conceptualizing the needs of business: Boots should pay emphasis on the mission of their business that they have to deliver the collection of features and benefits to its customers along with best quality.
- Designing of strategy: To deliver the collection of features and benefits there is need of some strategy through which they can satisfied their customers in best possible manner.
- Implementation of strategy: Planned strategies are to be implemented along with appropriate standards so that their brands’ creditability can be maintained and enhanced in the market (Smith, 2008).
Reporting on the impact of the proposes changes on the business and its personnel:
Implementing of the changes will give positive results to the company and this will increase their sales in the market and also fortify their brand image in the market. This will satisfied the customers and also deliver the products as per the value for money.
Planning to manage the changes in Boots:
Changes will be managed by conveying the management and employees that how the changes are favorable to their business and how they will improve the value of their business in market. These will be managed through implementation of action plan in their business.
Elaborating the improvements in the performance of the business over a given timescale of boots:
After its initiation of the business Boots has accomplish lots of improvement in their business:
- Brand name in cosmetic and health care industry
- Stores ranging from small communities to departmental stores
- Number 7 cosmetic brand of UK
- Market leader in fragrances, skin and health care
- Creation of niche brand
- Positioning of its brand and products in market
From the above study, it has been concluded that both the companies that is Boots and McDonald have maintained their brand name in their respective industries and providing best quality of products to the customers all over world.
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- Khan, S., Hussain, S. M. and Yakub, F., 2012. Determinants of customer satisfaction in fast food industry. International Journal of Management and Strategy. 3(4). pp. 12-13.
- McDonald, A. and Heath, B., 2009. Developing services for people with dementia. Working with Older People. 13(3). pp.18 – 21.
- McDonald, M., 2010. A brief review of marketing accountability, and a research agenda. Journal of Business & Industrial Marketing. 25(5). pp.383 – 394.
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