Home / sample-essay

Blog Ratings

Literature Top Blogs

Article Categories

Strategic Case Analysis: Small Scale Business

0 May 06 2018, 12:53 in Business Essays

Starting up a business is never easy and trouble free. The failure rate is exceedingly high and there could be a possibility of working extremely hard for potentially small return. The U.S. Small Business Administration declares that more than 50% of small scalebusinesses fail in the first year of operation and 95% fail within the first five years. It is essential to determine the reasonswhy most businesses fail in order to identify the eventual decline stage of a business. Small scale businesses operation has been evaluated from various approaches in order to have a clearer understanding why some businesses suffer failures and why others experience success. However, no person would start a new venture getting ready for failure; they create a clear plan to succeed in the line of their business which includes action plans in case things go wrong. Statistics shows, though, 88.7% of all business failures are the consequence of management mistakes, some of which are: 1) Lack of Industry Experienceleads to poor organization of a business and its resources; 2) Inadequate Financing, which is the life force of a startup or later phase of a growing business; 3) Lack of Adequate Cash Flow, the measure of business ‘ability to uphold sufficient funding to meet its expenses for the daily activities of the business; 4) Poor Business Planning, wherein bigger percentage of business failures are influenced by a lack of over-all business management skills and planning; 5) Management Incompetence, wherein most business failures are linked with management insufficiency that involves either management immaturity or incompetence; 6) Ignoring the Competition, the best deal, or at least, a better deal are customers’ priority. Being aware of competitors and positioning the products accordingly is essential to staying in business; 7) Unfeasible Goals, goal settingis one thing and settingworkable goals is another thing. Setting realistic goals is important; 8) Inappropriate Location, best-run retail establishment can even have a hard time succeeding if it is in a weak location; 9) Poor System of Control, in setting proper targets to administer the business, a system of control is necessary to measure performance; 10) Lack of Entrepreneurial Skills, during the startup phase of a starting business, inadequate entrepreneurial skills in an owner can cause a business to fail.

A comprehensive research analysis confirmed that the reasons for success hold important indicators, such as: 1) Organizers are determined by impact, which results to passion and commitment; 2) Commitment to preserve the course and support the plan; 3) prepared for any adjustment, but not continuously adjusting; 4) Patience and determination brought about by the timing difference of expectations and reality; 5) Interest to observe, listen and learn; 6) Acquire the right mentoring connections; 7) Leadership and overall business knowledge of the specific area involved; 8) Apply Lean Startup principles: Funding just enough money to hit the future milestones; 9)Balance of knowledge in technical and business aspects, with essential technical expertise in product development (Hillstrom et al, pp. 67-69).

One of the best examples of a small scale business is the Badmaash, an Indian gastro-pub. They worked on a menu that would reveal a fresher perspective on modern Indian cooking, and pair with the food is choices of 14 to 16 beers and a variety of cool imported beverages from India. Many Indian restaurants in the same area have maintained a somewhat conventional in their approach to the cuisine. Badmaash is different from the considerable majority of Indian restaurants in LA, wherein they are confined to cheap buffet category, as they use inexpensive meats and spices for eat-all-you-can value over quality that most customers expect and are used to. Badmaash creates traditional Indian recipes and revises them taking taste to a new level. They use quality ingredients that are local, organic, and sustainable and, rather cooking them the traditional Indian way, their father, a professionally trained executive chef, modifies the style of cooking using French techniques.What the customers get is very delectable and contemporary style of dishes. It is also the owners’ practice to sit outside to have a quick break, warmly greeting customers who walked in. Customers will have the pleasure to chat with them and learn their appreciation for food. They will check on guest and it is just like eating with family.Badmaash being distinctive from the other Indian restaurants in many aspects makes them a unique restaurant in downtown, L.A. (Mohan, p. 1).

Understanding How Value Is Created Within Organizations

A value chain is an organization’s set of activities being applied to create value for its

customers. Porter’s has recommended a general-purpose value chain that businesses can apply to evaluate all their activities, and see how they are linked. The way wherein value chain activities are being applied establishes costs and influences profits. The following measure can provide understanding of the sources of value for an organization, which, from analysis, are being carried out by Badmaash Indian Gastropub:

1. Planning – There is a need for map to get to your destination and that is the role of a business plan. The key to this practice is an honest SWOT analysis – strengths, weaknesses, opportunities and threats.

2. Funding a Successful Business - Sufficient and appropriate funding is an ongoing requirement for a healthy business, which provides financial and strategic solutions to small and mid-market companies

3. Branding, Marketing & Image – This is a vital part of a business considering it is how the world views you; their emotional connection to what you are selling.

4. Sales in Driving Revenue–The sale in business should provide a predictable revenue growth.

5. Managing People, Process & Benefits – what makes a successful business involves the ability to attract and maintain quality employees who will be the face of the business. As part of the business’ compensation package, the benefits program is an instrument to create loyalty from employees, as this approach shows how much the employers care about their employees and

employers get the same care from employees. Arming employees with proper training so they

are empowered in the position they are in charge with, they would feel better about what they are doing once they are equipped with proper training necessary for their role.

6. Operations & Accounting - is important in a business, as you need to understand what you are getting yourself into. Financial statements will help you understand the condition of the business, and they are the basis of tax planning and tax preparation. Understanding the ins and outs of cash and its time is crucial. Designing a system of the cash flow allows the business to get a better sense of the timing of inflows and outflows. When money comes in, the business owner would know how to distribute the money correctly.Maintain a business account separate from your personal account. in order to keep track of the flow of funds, though you need to result in transferring funds from personal to business.

7) Retaining Customers, Maintaining Communication – customer service makes the difference. Businesses can copy any product build today. But they cannot duplicate the people and how the interaction goes with your customers. The primary focus is the effort to build a relationship, not just to complete a transaction.

8. Technology– is vital for its competence to support all businesses scale in order to provide a

consistent results with what they do for their customers. Technology is advantageous in enabling business owners to connect directly with the customers, partners, vendors and all the people they do business with(Porter, p. 127-128).

S.W.O.T. Analysis

Any restaurant may serve the most delicious food or provide the best table service in their area. However, if they do not know the strengths, weaknesses, opportunities, and threats their business faces, it may suffer in time. To get the most out of the SWOT, Badmaash Gastopub has made certain declaration in each category. Like for instance, rather than simply consider competitors as a threat, they have included specific details about how their competitors are a threat. In the process, Badmaash removed the entries that do not relate to their business, and record their responses to build a SWOT analysis:


The strengths of business is determined by what it carries out best, whether it is serving tasty food, offering quality service at the table or providing décor that makes the fun of eating at their restaurant a memorable experience. Other strengths may consist of their pricing structure, such as offering a lower-priced menu than similar restaurants in their area. If they presently create traffic in slow times, they could offer special promotions, such as buy 2 meals and get 1 for free before 5 p.m. to get customers in the door; this signifies strength.


The weaknesses give you a concept of things that need to work out in your restaurant. Let us say, your wait staff may establish a weakness for your restaurant, considering that you are dependent on them for the personal service they provide to every table. This problem may exist if employees were not provided adequate training, such as demonstrating to wait staff how they should serve each table or explaining to cooking personnel how you want food prepared and presented. Weaknesses may involve not getting regular supplies that would result in menu items not being available. Counting on an obsolete sale approach or using paper in tracking orders and stocks is a weakness; a business should find better ways of calculating your stockroom, order, and financial needs.


To help the restaurant increase its profits, look for other opportunities, such as increasing

or providing various types of food and beverages. Making use of trends associated to eating healthier, you may introduce organic dishes or salad in your menu. During slow times, creating

an approach to generate more traffic particularly in the afternoon may signify an opportunity for growth. Your restaurant can also sell some of your restaurant products for take home signifies an opportunity. You may also offer delivery services and take-out or setting a drive-through to meet the on-the-people’s needs signifies another potential opportunity.


Nearby competing restaurants suggest a threat to your business, particularly if your sell comparable types of food or have comparable dining practices. Opening of new restaurant in your area likewise signify a threat, considering area diners are given more options where to spend their money for food. Other threats may involve possible rising price of some foods. Like for instance, seafood dishes is what your restaurant serves and something negative affects the shrimp market, a threat arises if you need to raise the cost of your products or find new suppliers, it is possible that you end up losing your business (Seth, pp.11-12).


These are not the only things you will need to effectively scale your business. If you focus your attention on them timely, everything else will be achieved in a much easier manner. When owners of small scale businesses understand why a company succeeds, they can apply those approaches to their own businesses and make them part of their management plan.

Once you identify where you are and how you will be able to achieve your goal, you can find the right people to help you get there. Eventually, your goal is to develop a remarkable, efficient company filled with brilliant people who love their job. Create whatever decisions you must to reach your destination (Hillstrom et al, p 102-103).


Works Cited

Hillstrom, Kevin, and Laurie C. Hillstrom. Encyclopedia of Small Business. Detroit, MI: Gale

Group, 2002. Print

Mohan, Malika. Badmaash Brings a Classic Indian Vive to Brunch.Food, Lifestyle, Reviews.

March 6, 2017.

Porter, Michael E. Competitive Advantage: Creating and Sustaining Superior Performance. New

York, NY. u.a.: Free Press, 2004. Print.

Seth, Christophe. Swot Analysis. Namur: 50minutes, 2015. Print.

Order Now
Last Modified: -/-
  • Visits: 207
  • (Current Rating 0.0/5 Stars) Total Votes: 0
  • 0 0

No Comments Yet...

Leave a reply

Disclaimer delivers high quality essays and research papers but only for the primary purpose of serving as guide to students to assist them write their own papers. The essays and research papers should be used only for reference. Further, the services we provide are meant to assist the students by providing them guideline and the essays and research papers provided are intended to be used for research or study purposes only.