Small Business Enterprise Case Study Example | Topics and Well Written Essays - 1500 words

Small Business Enterprise - Case Study Example Good reputation and experience in the industry. Dues to already established positive reputation, further expansion of business involves less risks. Moreover, the managers have experience in the industry, while lack of experience is one of the top reasons of small business failure (Holmes, S. Haswell, S. 1989). High quality of products served. The major reason of coffee shop success is the high quality of food served that results in positive reputation and word of mouth spread of information about services and products offered. While, undoubtedly, there is a vast number of factors that have a positive influence on business functioning, the coffee shop has significant drawbacks that should be particularly considered when planning expansion. Poor marketing campaign. The business has to concentrate on development of the marketing mix alongside with research of the target audience needs. The issue is particularly relevant due to the fact that the target audience of the gift shop is mainly tourists; consequently, word of mouth recommendations are not sufficient enough. The variety of products offered at the gift shop should also be considered in relation to the target audience needs, perhaps, the products list offered should be expanded. Poor labor specialization. Bob and Jane are the only two employees of the business. While their day to day duties involve simple serving work, obviously, the personnel are too qualified for this type of work. By hiring helpers that would serve at the coffee and gift shop, the managers could devote more time to marketing and planning of their business, thus, the efficiency of the business would grow. This issue is particularly relevant when considering business expansion. In order to neutralize the negative effects of business weaknesses, the identified strengths should be matched against weaknesses and on the base of the received outcome further planning should be implemented (Bannock, G. 2005). The effect of poor marketing campaign can be neutralized by further development of positive reputation of the business in the industry alongside with conducting marketing research in access of funds available in terms of the geographic location of the business. Poor labor specialization can be matched against high quality of products served alongside with positive reputation of the business in the industry, since expansion of the business will most likely result in diminished contacts with clients (Bitner, L. Powell, J. 1987). Part II: Existing Business Improvement and Expansion Consequently, the business should concentrate on development of the marketing mix applicable in the present situation alongside with marketing planning and labor specialization that should be considered in terms of business expansion. While development of the marketing mix and marketing campaign as well as research of the present market should be outsourced to the third party, e. g. marketing agency, such issues as financial planning and staffing should be directly solved by the management. Marketing and promotion is crucial to any business. Development of