Small Business Enterprise Assignment with Fashion Crest Ltd (GC01662)
Contents
Introduction.
Task 1.
1.1 Produce a profile of a selected business.
1.2 Compare the performance of your selected business with other similar-sized businesses in the same geographical area.
Task 2.
2.1 Recommend with justification, appropriate actions to overcome the weaknesses.
2.2 Analyze ways in which the existing performance could be maintained and strengthened.
2.3 Suggest new areas in which the business could expand with reasonable justification.
Task 3.
3.1 Give your assessment of existing business objectives and plans.
3.2 Review business plans and suggest areas where changes can be made.
3.3 Prepare an action plan to implement the changes.
Task 4.
4.1 The impact the proposed changes will have on the business and its personnel
4.2 The plan for how the changes will be managed in the business.
4.3 The improvements in the performance of the business over the past two years.
Reference.
Introduction
Through this report the performance of FASHION CREST LTD (LONDON) LIMITED, a small business enterprise has been explained. Through this paper, the profile of the business, evaluation of the performance of the business firm, approaches that are made to improve the business strategy to gain profit by revising the business objectives have been explained. Furthermore, an assessment has been done to administer the improvements the business has made through the approaches that have been proposed in this paper.
Task 1
1.1 Produce a profile of a selected business
The name of the business
The name of the business is FASHION CREST LTD (LONDON) LIMITED. The company registered number is 04354919.
Owner structure
This private limited company is limited by legal shares. There are two directors and two nominees director in this company. The two directors are Saeed Yusuf Mohmed and Jabir Yusif Musa Patel. And the two nominee directors are STATUTORY MANAGEMENTS LIMITED and WORLD FORM LIMITED. Saeed Yusuf Mohmed was appointed as secretary and later on, he was made one of the directors. Both of the directors are British and were appointed in Jan 2002. The registration of the nominee directors was made on 17 Jan 2002. Now the person with significant control and also active now is Mr. Saeed Yusuf Mohmed whose date of birth is December 1953 and has British nationality. He was notified on 6 April 2016. He has the control of assigning and removing of the directors as trustee and a member of the company. He resides in the United Kingdom at this moment.
History/Background
The company was established on 17 Jan 2002 with one director, one secretary and two nominees directors. The registration number of the company is 04354919. The company is functioning successfully for 16 years with one active member comes to director Mr. Saeed Yusuf Mohmed who has British nationality and was appointed on 17Jan 2002. The nominee directors are STATUTORY MANAGEMENTS LIMITED and WORLD FORM LIMITED who were appointed on 17 Jan 2002 and resigned on the same day.
Its activity
This company is a manufacturer and wholesale business of children’s wear and sells fashion attires for children, knitwear, accessories, branded item, shoes, party wear and items for babies.
Business location
The address of this business firm is Kids Kemp Ltd T/a Fashion Crest Ltd, Kids Kemp, 177-179 Commercial, Road London E1 2DA, United Kingdom, 07890 563 834. Their email address is sales@Fashion Crest Ltd.com.
Financial information of FASHION CREST LTD (LONDON) LIMITED
| Factors | 31 Dec 2016
| 30 Jun 2015 | 30 Jun 2014 | 30 Jun 2013 | 30 Jun 2012 | 30 Jun 2011 |
| Total Fixed Assets | £2,200 | £2,200 | £2,911 | £3,800 | £4,750 | £4,882 |
| Cash | £4,617 | £12,895 | £8,650 | £3,654 | £95,153 | £1,238 |
| Total Current Assets | £4,617 | £106,349 | £98,548 | £104,144 | £302,854 | £274,168 |
| Total Current Liabilities | £2,161 | £94,400 | £89,173 | £78,997 | £176,909 | £247,209 |
Figure: financial status of FASHION CREST LTD (LONDON) LIMITED source: company check
Figure: financial status of FASHION CREST LTD (LONDON) LIMITED Source: company check (2018)
Comparing the six years of business the cash has been fallen, net worth was about consistent, and the total current liabilities have been fallen and the amount of the total current assets has been decreased.
Strengths and weaknesses
| Strengths | Weaknesses |
| Has strong fund Owners are experienced and expert enough The relationship between the company and the customer s really good. The business has a good collection | Unexpected operational costs Unexpected inventory and stock levels Poor marketing activities and poor performance Poor employee motivation and high staff turnover.
|
Businesses in the same geographical area
| Areas | FASHION CREST LTD (LONDON) LIMITED | FASHION LAYER (CAMDEN) LTD
|
| Production | It is a manufacturer and wholesaler company of children’s wear sells fashion attires for children, knitwear, accessories, branded item, shoes, party wear and items for babies.
| It is not a production house but a company of whole sellers which sells children wear and fashion wear, accessories, branded item, party wear for the people. |
| Marketing | Both conventional and digital marketing campaigns are held by the company. They do promotional woks through ads in newspapers, leaflets, magazines as well as useful websites of their own as a Facebook tweeter and YouTube social media groups through which they do their internet marketing. | As a conventional marketing strategy, they advertise their company in leaflets, magazines, newspaper ads, etc. and as a digital campaign, they sell through a website and use social media to reach out to their targeted and potential customer. |
| Sales | The sales procedure is done both by internet and physically from their shop situated in London. | Through both internet and the physical for their shop, they do their retailing process. |
| Human resources | This firm has 2 directors and 2 nominee directors. The active director is Mr. Saeed Yusuf Mohmed whose date of birth is December 1953 and who has British nationality. He has been working since 2002. | This company has only one officer Noman Ahmed who is British and was appointed on 3 Feb 2010, and occupation is a wholesaler. |
| Use of technologies | The company does its wholesaling process by using many technologies like online payment, digital marketing tools, technology for protection etc. | The wholesaling process is done by using many technologies like online payment, digital marketing tools, technology for protection etc. |
1.2 Compare the performance of your selected business with other similar-sized businesses in the same geographical area
| Financial information of SKINNYDIP LTD in comparison to COCOFINA LTD | ||||
| FASHION CREST LTD (LONDON) LIMITED | FASHION LAYER (CAMDEN) LTD
| |||
| Factors | 2016 (£) | 2015 (£) | 2016 (£) | 2015 (£) |
| Cash | 4.6 m | 12.8m | 8.9m | 10.6m |
| Net Worth | 4.7m | 16.5 m | 5.6m | 7.3m |
| Total Current Asset | 4.6m | 10.6m | 6.3m | 4.9m |
| Total Current Liabilities | 2.1m | 94.6m | 10.3m | 21.3m |
| Sources: www.companycheck.co.uk (2018) | ||||
Task 2
2.1 Recommend with justification, appropriate actions to overcome the weaknesses
| SWOT Analysis for Fashion Crest Ltd | |
| Strengths | Weaknesses |
| Has strong fund Owners are experienced and expert enough The relationship between the company and the customer s really good. The business has a good collection | Unexpected operational costs Unexpected inventory and stock levels Poor marketing activities and poor performance Poor employee motivation and high staff turnover |
| Opportunities | Threats |
| They can open new branches inside and outside London. They can enlarge their collection They can try to target new customers and do attractive promotional work for grabbing their attention.
| They can encounter money problems. With only one active officer, the company can lack manpower. The skills for a more improved and growing business can make the business vulnerable. Opening new branches can make them face new competition and political, economic and shortage of workers problems. |
Recommendation
To increase the business growth and make more profit FASHION CREST LTD (LONDON) LIMITED Company has to apply a significantly improved marketing strategy and pricing policy. The total asset of the business needs to be increased and the company needs to hire more workers in order to grow their business more…………………………………..
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