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Introduction to Small Business Enterprise
Small business enterprise can be referred as small scale company that employs small number of employees and does not high volume of sales. These are generally privately operated and owned by sole proprietorships (Collier, 2004). The small scale enterprises exist in almost every industry and these types of business requires low start up cost as well as fewer amount of capital. This report is prepared to analyze strength and weaknesses of Umami restaurant. Further business is analyzed with the use of comparative measures of performance. Here in the report appropriate actions and ways are provided in order to overcome weaknesses and to maintain as well as strengthen the performance of business. Umami restaurant offers a range of authentic dishes from Malaysia, Vietnam, Thailand and Indonesia as well as some new well known dishes.
LO 1 Investigate the performance of selected small business enterprise
Umami is perfectly located on Cromwell Road and it is just around the corner from Gloucester road underground station. Many dishes available in restaurant in two sizes i.e. Testing and Sharing Portions. They range of authentic dishes are offered by business which helps them to attract customers and to increase their sales (Hansen and Smith, 2006). Restaurant has created a menu that is rich in authentic ingredients and flavors and also offers a real taste of Pan-Asian cooking with dishes from different nations such as Vietnam, Malaysia, Thailand and Indonesia.
The current business position of Umami restaurant from past few years is excellent as their market share and profitability is increasing very fast. The strength and weakness of business are as follows:
Strength: They have strong brand name in Kensington London. Further restaurant offer variety of tasty food to their customers. They provide decor and offer quality services at the table that provide memorable experience to people and makes the fun of eating at restaurant. The menu of business is beautifully displayed and the taste is also excellent. It is the wonderful and cohesive interpretation of authentic cuisines ad give it to their own twist which highly attract people (Keller and Keller, 2004).
Weakness: The restaurant operates in only one country i.e. London which limits their market share. Further they mostly focus on Asian cuisines and dishes of only four countries i.e. Vietnam, Malaysia, Thailand and Indonesia. They had not started loyalty programs of gift in order to retain their existing customers and to gain new ones.
The measurement of performance is the process of collecting, evaluating and collecting information regarding the performance of system, group and organization. Performance of Umami restaurant can be comparatively measure with its performance in past few years. It was opened in march on Cromwell road and was a whole new oriental revelation. In the begging business offer limited range of Asian foods but now they enlarge the range of food their menu which helps them to gain attention of people (Olhager and Rudberg, 2003).
Further, number of customers also increased from past few years as a result of high quality services. They offered less creativity in drinks in the start of restaurant but now they increase the range of drinks and also introduce innovation as well as creativity which assist them to generate revenue. Umami of variety of wines that can be selected by people that match their palette. In addition to this, set menus was available in the start of restaurant but now they offer bespoke menu which can be created to cater specific needs of customers (McQuerrey, n.d.). The services offered by Umami in last few years was very limited but in recent time they started different types of services as they provide their services on the occasions of birthday parties anniversary etc.
In addition to this, restaurant also increase the number of employees at present in order to meet expectations of customers and to provide satisfaction to them. Further Umami developed their infrastructure in order to retain their existing customers and to gain new ones. In addition to this, restaurants also decided to start loyalty gifts for their regular customers and this concept will be start very soon. Hence it can be stated that Umami restaurant has improved their performance from their beginning to till now. They also increased their profitability as well as number of customers (UMAMI, n.d).
LO 2 Propose changes to improve management and business performance
Umami restaurant can take different actions in order to overcome their weakness and to generate revenue. They can start loyalty programs as it will helps them to attract new customers and to retain existing ones. It will help them to maintain their profitability in the competitive business environment and also assist in attainment of desired goals and objectives (Wells, 2013).
In addition to this, restaurant can recruit high quality skilled staff in order to meet changing needs and expectations of customers and to maintain their sales. This will helps to maintain the quality of services offered by them and to provide satisfaction to their customers. It will also assist in creation of reputation of restaurant into market and development of strong corporate image in the mind of customers. In addition to this different promotional tools can be use by Umami in order to attract customers and to maintain their profitability (Turki, 2011).
They can use social media such as Facebook, Twitter, YouTube etc. as these media are highly use by people in the modern era. Umami offer Pan-Asian Cuisine and they offer dishes of four countries i.e. Malaysia, Vietnam, Thailand and Indonesia. They can introduce other types of cuisine in their menu list in order to enlarge number of customers. In addition to this, they can open their branches in different nations as it will helps them to increase their growth in context of market share. Hence Umami restaurant can take these appropriate actions in order to overcome their weakness and to achieve desired goals and objectives (Thompson, 2001).
In order to maintain existing performance of Umami restaurant, there are different ways that can be use by business. They can use marketing and promotional strategies in order to retain their existing customers and to retain new ones. Restaurant can communicate information about products and services offered by them through social media, news paper, magazines and television. Further they can develop their attractive website which will provide all information regarding their menu and services as it will assist them to update knowledge of customers regarding enterprise and their services (Simerson, 2011).
They can conduct training and development programs in order to improve skills and abilities of employees so that they can maintain and strengthen their existing performance. This will helps them to effectively meet the expectations of customers and will provide satisfaction to them. In addition to this, Umami can apply advance technology in their business operations as they can use interactive ordering system in which people can order their dishes through table. This will helps them to attract customers and will maintain their current performance (Schiraldi and Silva, 2012).
Further they can employ talented chefs those can prepare food of all variety as it will be beneficial to meet needs all types of customers. Hence from the above discussion it can be stated that use of these ways will assist Umami restaurant to maintain and strengthen their existing performance and to achieve desired objectives.
Umami Restaurant currently providing their services in London. By considering Ansoff matrix, they can use market development strategy in which they can expand their business operations in different nations in order to enlarge their market share. They can open their branches at near of tourist places, airport area and near of shopping malls. Umami restaurant offer Pan-Asian cuisine and they have opportunity to open their outlets in Asian countries. This will assist them to attract large number of new customers and to retain existing ones (Kambil, 2008).
They can easily get customers into tourist place, shopping malls and airports which will assist them to increase their sales. Further employees can also easily available at these places and these will be important for expansion of business operations. In addition to this, they can introduce innovative dishes and creative services system in their new market segment as it will helps to attract people and will enlarge their market share. The use of market development strategy and expansion of business operations into new market will helps Umami to increase their profitability and will assist in attainment of goals and objectives (Jones and Penaluna, 2013).
Hence from the above discussion it can be stated that use of market development strategy and opening of restaurant in near of shopping malls, tourist places and airports will be highly beneficial for business. This will provide large number of customers as these areas are crowed from travelers and tourists. Further skilled employees will easily available at these places which will assist in achievement of objectives.
LO 3 Revise business objectives and plans to incorporate proposed changes
Objective: The objective of Umami Restaurant is to enlarge their growth in context of market share and increase their profitability ratio. Further they wanted to offer excellence products and services to their customers at reasonable prices in order to provide satisfaction to them. In addition to this, restaurant aims to offer Pan-Asian food to their clients in order to attract new customers and to retain existing ones. They wanted to develop strong corporate image in the mind of customers and to gain loyalty of their potential customers (Johnson and Scholes, 2002).
Business plan: The agenda of Umami restaurant is to create a menu that is rich in authentic ingredients and flavors. In addition to this, they offer a real taste of Pan-Asian cooking with dishes from Malaysia, Thailand, Vietnam and Indonesia. Further their business plan is to offer great meal, friendly attentive services at reasonable prices so that people use their products and services when they visit or living in London. In addition to they provide services different occasions such as Christmas, birthday, adversaries etc. in order to maintain their growth in context of market share as well as their profitability. Further they plan to provide training and development to their staff so that will be obliging and advice their clients regarding spice in all dishes and children's meal offered by them (Abrams and Abrams, 2003).
The existing business plan of Umami restaurant is to offer Pan-Asian cooking with dishes from four countries. They can revise their business plan in which they can introduce dishes from different counties in order to satisfy different needs to customers. This will assist them to retain active customers and to gain new ones. Further restaurant has good infrastructure as they have relaxing seats, comfortable place as well as friendly atmosphere which highly attract people. In addition to this, restaurant can use effective promotional techniques in order to attract customers as they can develop attractive website in which they can provide information regarding products and services offered by them (Bryson, 2011). This will help to update knowledge of people regarding restaurant.
Further business enterprise is requires to take few steps in review of their business plan as they can introduce innovative products and services in order to retain their active customers. In addition to this, they can use market development strategy in which they can expand their business operations into new market as it will assist them to enlarge their market share. Further they can conduct market analysis in order to identify changing needs and expectations of customers so that they can take corrective measures in order to meet their desire. They can also carry out promotional activities in order to increase customer knowledge and to increase their sales (Clulow, 2005).
In order to effectively implement the above discussed change in the business plan an action plan will be prepare. The restaurant will conduct market research firstly in which they will identify needs and expectations of customers and will recognize the dishes which they needs to involve in their menu list. After identification dishes which they required to involve they will take feedback offer them to their few customers and will take their feedback. If customers accept those dishes and feel satisfied than Umami will properly involve them in their menu list. Further they will employ new chefs who will cook new food and also recruit staff in order to provide high quality services to their customers (Eshun, 2009). Promotional activities will be carry out for introduction of new dishes in menu list so as to attract clients and to increase their sales.
In case of expansion of business operations, restaurant will also analyze market and will identify target market in which they should start their operations. They will carry out different promotional activities in order to attract customers in new market segment so as to increase their sales and to generate revenue. The process of effectively implementation of change will requires three to four months. It will helps them to increase their growth in context of market share and will enlarge their profitability (Immordino, 2009).
LO 4 Impact of change management on the operations of the business
The introduction of change in context of menu list as well expansion of business operations will highly impact on Umami restaurant and its personnel. This will help them to attract new customers and retain existing ones through satisfaction. It will highly beneficial for business enterprise as this will helps them in development of strong base of clients and create reputation into market. Further expansion of business operations will increase their growth in context of market share and will generate more revenue. Implementation of change will also assist in development of brand identity and will build positive corporate image among people. in addition to this, use of promotional activities will increase customer awareness and will attract people towards brand (Martin, 2013). This may increase cost of restaurant in the initial stage but after successfully implementation of change it will generate higher profits for business.
The implementation of change highly impact on personnel of Umami restaurant as it will increase the work pressure of employees. They will requires to put more efforts as introduction of new dishes in menu will increase their workload. Personnel are requires to perform their roles and responsibilities effectively in order to effectively carry out business operations. Further implementation of change will requires recruitment of new chefs and other staff which can create complex among old staff as they may not accept this change and may resist to accept it. however introduction of change will have positive impact on business as well as their customers (Nilsson and Gammelgaard, 2012).
In order to effectively manage the change in business a plan will be prepared which is enumerated below:
Communication with employees: Umami restaurant is requires to communicate with their staff for successfully implementation of change. They can discuss with them regarding benefits of proposed change so that they can accept the change without any resistance. it is essential for business to gain their ideas regarding innovation as it will help them to gain participation as well as loyalty of staff and will encourage them for higher level of performance.
Recruitment of new staff: In order to introduce new dishes in menu list and to expand business operations into new market segment, restaurant is required to recruit new chefs and other staff for successfully management of change (Ries, 2011).
New funding: Introduction of change requires new funding as expansion of business operations needed huge amount of capital. They can collect fund from financial institutions or from banks. It is also requires for staffing of new employees as well as promotional activities.
Third party contract: In order to effectively manage above proposed change, restaurant can contract with third party. They will be responsible for expansion, marketing and promotional strategies. This will highly assist in successfully implementation of change.
Hence from the above discussion it can be stated that Umami restaurant can apply this plan for successfully implementation of change and attainment of desired goals and objectives through active participation of employees (Rowley, 2002).
Monitoring is essential to successfully survive into market and to achieve desired goals and objectives. In order to monitor improvements of the business over a period time, different techniques can be use and these are enumerated below:
Check list: Umami restaurant can use this technique in order to monitor improvement of business. They can develop checklist of each activity which they needs to perform for implementation of change along with time scales. They can use this checklist for evaluation of improvement as it will provide information regarding further measures that restaurant needs to take in order to improve their performance (Ries, 2011).
Controlling: This techniques can also use by restaurant for monitoring of improvement in business over a period of time. In this technique, enterprise can set their standard and monitor their actual performance with set standards. This will helps them to identify gaps in actual and desired performance and will provide directions regarding improvement of performance. It will assist them to take corrective measures and to achieve desired objectives.
Benchmarking: They can also use this method for monitoring of improvement. In this technique, restaurant can set benchmark of their competitor with they can compare their actual performance. This will also helps them to drawbacks in their existing performance and will provide directions for future improvement (Rowley, 2002).
From the above report it can be articulated that Umami restaurant can use different strategies in order to expand their business operations and to achieve desired goals and objectives. Further they can introduce innovation in their menu list and can expand their business operations into new market. They will requires to recruit new staff and will requires funds for implementation of this change in their operations. In order to manage change effectively, business requires to communicate with staff regarding change in order to gain their active participation in successfully implementation of change. Further there are different techniques that can be use by enterprise for monitoring of improvement in business over a period of time.
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- Clulow, V., 2005. Futures dilemmas for marketers: can stakeholder analysis add value? European Journal of Marketing.
- Eshun, P. J., 2009. Business incubation as strategy. Business Strategy Series.