Unit 15: Small Business Enterprise

Sample Answer

Small Business Enterprise Report: Bean & Brew Café

Introduction

Small businesses form the backbone of the UK economy, contributing significantly to employment, innovation, and community development. However, managing growth, maintaining profitability, and adapting to market changes can be challenging for such enterprises. This report critically analyses the performance of Bean & Brew Café, a small independent coffee shop based in Manchester. The analysis covers the café’s current strengths and weaknesses, recommends strategic improvements, and revises business objectives to reflect sustainable growth. It also examines how change management would impact operations and personnel, with an implementation plan to monitor progress over time.

LO1: Investigating the Performance of Bean & Brew Café

1.1 Business Profile

Business Overview:
Bean & Brew Café is a small, locally owned coffee shop founded in 2018. It serves artisan coffee, pastries, and light meals, focusing on sustainability and community engagement. The café has 10 employees, including baristas, kitchen staff, and management. It operates in a competitive market surrounded by both independent coffee shops and major chains like Costa and Starbucks.

Mission:
“To deliver high-quality, ethically sourced coffee while creating a welcoming space for the community.”

Vision:
“To become the go-to local café in Manchester known for sustainability, customer care, and innovation.”

Strengths:

• Strong local reputation and loyal customer base.

• High-quality coffee sourced from ethical suppliers.

• Warm, community-focused atmosphere.

• Active social media engagement promoting brand visibility.

• Staff with strong customer service and hospitality skills.

Weaknesses:

• Limited physical space restricting customer capacity.

• Inconsistent sales during off-peak seasons.

• Reliance on word-of-mouth rather than formal marketing.

• Limited digital presence for online orders or delivery.

• Weak cash flow management during slow months.

1.2 Performance Analysis Using Comparative Measures

To assess Bean & Brew’s performance, we compare it with an average small café in Manchester using key performance indicators (KPIs): profitability, sales growth, customer retention, and productivity.

Interpretation:

Bean & Brew performs well in customer loyalty and brand engagement but lags behind in profitability and growth. The café’s premium strategy is working but requires better marketing and financial planning to sustain momentum.

LO2: Proposing Changes to Improve Management and Business Performance

2.1 Recommendations to Overcome Weaknesses

1. Introduce a Digital Ordering Platform:
   Creating an app or partnering with platforms like Deliveroo or UberEats can increase reach and convenience for customers, improving sales during off-peak hours.

2. Implement Basic Marketing Analytics:
   Tracking customer data through loyalty cards and feedback surveys will help tailor promotions and improve service efficiency.

3. Enhance Cash Flow Management:
   Adopting accounting software such as QuickBooks will enable better expense monitoring, ensuring liquidity during slower months.

4. Expand Seating or Introduce Outdoor Space:
   Utilising nearby pavement space for outdoor seating could increase capacity and attract more walk-ins.

Justification:

These actions address core weaknesses while leveraging Bean & Brew’s existing strengths in customer loyalty and brand appeal. A digital transformation and better financial management will boost profitability and competitiveness.