Assignment : SMALL BUSINESS

ENTREPRISE
Submitted by VIRGIL CALIN OANCEA
ID 21749
Submitted to Module Tutor: Esther
Aivinhenyi
 Table of Contents
INTRODUCTION .......................................................................................................................... 1
TASK 1 ........................................................................................................................................... 1
LO 1.1 Produce a profile of Triodos Bank, UK .......................................................................... 1
LO 1.2 Analysis of Business using comparative measures of performance ............................... 2
TASK 2 ........................................................................................................................................... 3
LO 2.1 Identify weakness in business and appropriate action to overcome it ............................ 3
LO 2.2 Analyze ways in which existing performance could be maintained .............................. 4
LO 2.3 New areas in which business could be expanded ........................................................... 4
TASK 3 ........................................................................................................................................... 5
LO 3.1 Assessment of existing business objectives and plans ................................................... 5
LO 3.2 Revise business plans to incorporate appropriate changes ............................................. 6
LO 3.3 Preparation of Action plan to implement the changes .................................................... 6
TASK 4 ........................................................................................................................................... 7
LO 4.1 Impact of proposed changes on business and its personnel............................................ 7
LO 4.2 Planning related to change manage in the business ........................................................ 8
LO 4.3 Monitors improvement in the performance of business over given time scale .............. 9
CONCLUSION ............................................................................................................................... 9
REFERENCES ............................................................................................................................. 10
INTRODUCTION
A banking industry business plan plays a vital role in initiation and expansion of banking
activities in throughout the nation. Research plan describe about the Triodes’ Bank, which is
small banking business enterprises of UK and offer banking services in various reason of
country. Business plan includes environment scanning, information related to services and
product offer, and analysis the weakness of products and provide appropriate recommendation
with justification to overcome those problem. In this context, report articulated that Bank should
improves in their operational activities by adopting new technology and provide strengthen to
their business processes (Triodos Bank, 2014). Research report examined the need of changes in
processes & services that they offer and studied the changes impact on individual and
organization performance. Banking research plan suggest that how to effectively change
management and through monitoring improvements in the performance of the business over a
given time scale.

TASK 1
Investigate the performance of selected Triodes’ Bank
LO 1.1 Produce a profile of Triodos Bank, UK
Triodos Bank is an independent fully licensed European bank that drives the attention of
investors, stake holders and lenders towards products and services. It encourages depositors and
investor to invest in innovative bank and fulfill customer’s needs with managing socially
responsibility in executing processes. The strengths and weakness of Bank are described as
follow:

Strengths of Bank
 Bank has human dignity and promotes society to spend quality of life.
 It creates a sustainable development that is beneficial for the environment and people.
 Reputed bank provides opportunity to everyone include individuals, institutions and
businesses to achieve growth in their life (Carter, 2012).
 They offer high quality of service and financial products in sustainable manner.
 High profitability and revenue gain by bank.
 Establish bank has strong distribution and sales networks.

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  Business units are experienced and high skills persons.

Weakness of Bank
 The present UK market is very competitive and cut throat competition is arising in
financial market. Bank follows traditional techniques in their business operation.
 Bank only focused on present profitability and it ignores the future profitability.
 Reputed bank are not ready to adopt new tools and technology in their business
operation.
 Financial institution is not prepared for future competition and not framed clear policy to
better compete with other competitors (Kakkar, 2009).
 Bank is unaware about tax structure & polices and future situation occurs like high loan
rates, increase competition etc.

LO 1.2 Analysis of Business using comparative measures of performance

Bank requires sustainable environment to measure its comparative performance and
compare with other financial institutions better way. The historic and prospective financial
performances are included in analysis parts. Reputed bank measures its non-financial and
financial returns in meaningful way. Bank provides greater exposure to customers both in terms
of deposits and loans. Firm manage its capital efficiently through diversification of products so
risk will reduce. Establish bank maintained better Returns on assets and comparable returns on
Equity. It should clearly disclose information to the public in transparent manner. Performance
measure through various way like focus on investors and apply Triple Bottom Line metrics in
business to understand its impact on operations and processes, multi-stakeholder perspectives,
stable and adequate financial returns in respective year etc.
Protecting and enhancing rights of investor and motivate them to invest and provide good
return is given in form of sustainable finance. Robust and stakeholder driven metrics framework
are development to give return to shareholders on time. Basis on potential sources and structures
of banks their performance are also examine. Measure result in form of delivery of products and
services; consider their contribution in environmental and financial returns to support & boost up
the real economy. Outcomes are measured in form of contribution of bank in consumer goods
sector like IT sector Internet and semiconductor stocks etc. To measure the capability of firm

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through generates long-term capital appreciation with considers three factors People, Planet and
Profit during the selection of investments (Parry, 2012).

TASK 2
Changes require for improving management and business performance of Triodos Bank
LO 2.1 Identify weakness in business and appropriate action to overcome it
Triodos Bank faced several challenges related to technology, future decision and
unawareness about future profitability. Reputed bank are use traditional tools and techniques that
are costly and also lot of time consume. In old technology banking activities were perform
slowly and lot of human capital involved in. So it increases the expenditure of bank. Banks
mainly focused on present policy and not think about the future profitability and how they will
get funds to expand their business and compete with other rivals (Robert, 2007).
Reputed bank are not manage risk properly and failed in risk management. Other
competitors of bank are deliver services effectively through adopts new innovative technology
like KYC , Biometric, CRM and launch new products and services for customers while Triodos
Bank uses old techniques. Following weakness can be solved out by taking appropriate decision
which describes as follow:
Bank could reduce their weakness through improvement in existing processes and introducing
new technology in business operations to reap market opportunities.
 Bank should adopt Biometric technology to identify the person clearly. CRM might be
used to manage customer’s data in effective manner. By maintain information about
them, firm segment the market and design efficient portfolio to manage products and
penetrate customers on basis that (Sian and Roberts, 2009).
 Reputed bank hire skilled employees and manage risk effectively by considering the
future profitability. Talent person helps Company to formulate the business policy and
suggest in adopt new technology.
 Establish bank should focus on develop clear policy and make future strategy to better
compete with other competitors. Transparently information provides to shareholders,
customers and employees on timely manner.

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  Bank should launch some attractive services and offer discount policy to motivate
investor to invest in firm.
LO 2.2 Analyze ways in which existing performance could be maintained
Triodos Bank maintained its existing performance and enhance it by changes its
marketing strategy. It should focused on other marketing segments and expand their services for
B2B and B2C market. Bank understands the uses of online channels both strategic and tactical
level and applies them in business. They must take the advantage of experienced leading
professionals in expand their business activities. Establish bank creates shared vision to make
brand image and achieve growth in the market. Bank should maintain good relationship with
retail and business communities and motivates them to invest in financial activities. It develops
online presence and improves in sales channel so customers attract towards brands and it will
help firm to gain market share and better compete with other rivals (Tracy, 2011).
Other ways through which bank maintain its performance is adopting new innovative technology
in business and expanding services in several countries.
Triodos bank should focus on environmental conservation and improves the people’s
quality of life. Apply corporate social responsibility and ethics in business activities. Reputed
bank maintain sustainable development through offer professional service and competitive
prices. They make Stakeholder Community to building a strong relation with its customers.
Prepared team of excellent and committed co-workers at all levels to achieve future profitability
for organization. By organizing extra-curriculum events and relate with banking activities that
helps coworkers to understand bank’s vision (Triodos Bank, 2014).

LO 2.3 New areas in which business could be expanded

Triodos bank could be expanded their business in rural and urban area by introducing
new attractive plans and offers. By doing this more customers will join bank and increase market
share and profit margin of it. Bank can prepares an ambitious agenda to transform the institution
policy and assign responsibility to individual employees. All function are working together to
reap the market benefit in well planned manner. Bank could maintain monetary and financial
stability effectively and expand their business efficiently. It should deliver goods and products to
public at time. Bank expands their services in new area by diverse and talented workforce by
maintains openness and accountability in business operations. Risk balancing model are used for
diversification of risk and better manage product portfolio. Before spreading business in new
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area bank should conduct PESTL analysis to identify the factors like political, economic, social,
technology and Legal and their impact on bank activities must examine carefully.
Triodos bank tied with insurance companies to capture customer of them and it also helps in
expand business processes (Lewis, 2012).
Reputed Bank could focus on retirement account and join with saving accounts to take
market advantage in significant manner. They should apply Bootstrapping in business by doing
this generate additional funding and expenses will be reduce. Establish bank should active
participation in corporate social responsibility to take the advantage of Tax breaks, subsidies and
incentives plans. They may be choose factoring method to raise capital and concentrate their core
business strengths by providing the accounts receivable at discount to the third-party. Triodos
bank shares its ownership with investors or other Equity partners to increase the capital.

TASK 3
LO 3.1 Assessment of existing business objectives and plans
Existing business objective of Triodos bank are only concentrated on present policy and
profitability. The goal of organization is to provide sustainable banking services for personal and
business banking customers like offer payments, lending, savings accounts and investments etc.
It ignores the future profitability and not aware about tax policies and future changes. The
disadvantage of lack of awareness is bank could not in position to take long term decision
effectively. Presently untalented employees work in bank and trained them so it helps
organization to achieve its goal in well planned manner. That drawback of is that bank are failed
to take decision related to profitability. Poor knowledge of tax structure and corporate social
responsibility they are failed to take advantage of tax benefits and other subsidiaries that offer by
government to bank (Wagner and Johansson, 2003).
PESTL analysis
 Political Factors: Government and European commission are very supportive nature so
bank should take the advantage of this factor and expand their business.
 Economic Factors: It generates employment in country and contribution in growth of
economy. It provides the opportunities for personal development.
 Social Factors: Bank provides finance to improve and enrich the lives of millions people,
motto behind that is develop strong communities in the process. Bank introduces

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 microfinance activities in business but more improvement are needed in developing
countries (Susman, 2007).
 Technology Factors: Bank should adopt new technology and innovation in business to
increase their market share and gain in term of profit margin.
 Legal Factors: Law and legislature of UK country are favorable for banking industry. By
formulating the strategy bank can take the advantage of tax policy etc.

LO 3.2 Revise business plans to incorporate appropriate changes

In previous business plans bank should only focus only traditional technology but in new
plans it must be included new innovative technology like CRM, Biometric techniques. Changes
are required in micro finance activity and sustainable Trade Fund. Improvement in trade finance
policy to enhance fair business in developing countries and emerging markets. Triodos Values
Pioneer Fund developed by bank it include equity funds and bond funds but firm incorporates
other kind of funds in business to motivate the investor and shareholders. Bank provides added
value fund to investor and give option them to choose between Equity, Bond and Mixed Funds.
Triodos Bank merges green funds by doing this firm wanted to take advantage of tax scheme for
green projects (Reid, 2002).

Reputed bank not measure clearly historic and prospective financial performance while it
should be undertaken to reap market benefit and improving financial performance. Triodos bank
used traditional information tools and technology. By using old techniques they are failed to
segment the market and not reach the large audience. Present environment cut throat competition
arising in market and banks are used new technology to penetrate more customers. In this case
reputed bank are not succeed to attract customers. They could achieve goal by effective use of
money for positive works includes social, environmental and cultural change. Triodos
Microfinance Fund is launched in 2009 but still require much improvement in this field.

LO 3.3 Preparation of Action plan to implement the changes

Bank may be use Cloud computing technology to reduce their expenses and improves in
services that are offer to customers.
Triodos Bank’s customers include microfinance banks in developing countries, innovative fair
trade enterprises and social housing providers (Morrissey, 2004).

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Triodos bank make business plan to implement the changes in sequence manner which are
describe as follow:
Initially develop the top level action plan in which describe about strategic goal reaching steps. It
includes the objective of organization that they want to achieve in significant manner. Triodos
bank main objective are reap the market opportunity, penetrate more customers and enhance
their market share. After identify the objective reputed bank scheduling the actions for complete
the task (Davies, 2012). The Bank recognizes the resources required to accomplish target
includes Time, money, manpower, materials, space and information etc. It considered the areas
of risk and possible side-effects during evaluate solutions.
 Micro finance: In this context, bank make joint liability group to provide loan to villagers
and by doing this risk also reduces. Reputed bank appoint persons those are well trained
in making good relation with customers and expertise in their area.
 Technology Up gradation: Bank upgrade new technology like CRM, Biometric and
Cloud computing .For that bank contract with third parties and offer better services to
customers. They deploy old data into new system and maintain large amount of data of
clients. It helps bank to make marketing policy and formulating strategy in significant
manner (Down, 2010).
 Fund generation: For increase the amount of fund, reputed bank collaborate with other
partners like investors, shareholders. Firm used factoring, bank-assurance and boot
stepping method to produce more finance for business activity. More variety of trading
options provide with equity and bond funds like derivative, debenture etc. to motivate the
investor and stakeholders.

TASK 4
Examine the impact of change management on operations of the business
LO 4.1 Impact of proposed changes on business and its personnel
The changes occur in business process have positive impact on organization operations
that are describe as follow:
 Access to information: By use of new innovative techniques CRM and Biometric, bank
can be effective managed data and easy access of those by reducing ambiguity. Reputed

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 bank maintain large amount of data and its helps them to formulating strategy and
penetrate more customers towards product (Brooksbank and et.al. 2004.).
 New opportunity arises: Triodos bank collaborates with other financial institution like
private bodies, fund take from public by launching IPO, equity and bond introduces. Firm
apply factoring and bank-assurance techniques by adopting this bank focused on their
core business area and take the benefits of grasping customers for other segment like
insurance area also.
 Improvement in services: Microfinance activity improved and services reach to wider
segment area. Cost are reduces and effective utilization of resources in well planned
manner. Establish bank adopts new tools and techniques that improve the quality and
delivery of products. Automation of work and increase awareness about CSR and tax
subsidiaries gets benefits in terms of tax subsidiary etc.

LO 4.2 Planning related to change manage in the business

Triodos bank reaps the market opportunity by adopting change management processes in
significant manner. Bank previous use traditional techniques but know all the operations of bank
are automated with helps of technology. So many people in organization are against those
changes because they were fear about their job losses. Management takes decision carefully and
discuss with shareholders and employees that are directly affected from it (Longenecker, 2013).
Clear communication with top level and middle level employees and required their full
commitment to accomplish change management process successfully. Banks should manage risk
properly and it is achieved through diversify the portfolio and adopt dynamic nature in business.
It is responsibility of manager to implement projects according to the Bank’s policies and
procedures. Prepare and distribute project documentation so everyone aware about the changes
they are occurs in future and make prepare for that. Bank should monitor over performance in
term of cost, time and scope. Reputed bank used financial assessment by cost-benefit or return
on investment methods to know the performance of new business requirements. Project manager
assess the current or future business needs by communicating with users and employees.
Management is ensuring that high quality standards services are offered and money is realized
from this (Surabaya, 2010).

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LO 4.3 Monitors improvement in the performance of business over given time scale
To monitors the performance of business activity banks have lot of option like Balance
scorecard method, Economic value added method, Quality management, customer value analysis
and action profit linkage model etc. In present context, Triodos bank use Balance card method is
short-term measurement performance measurement method in which several dimension are
includes like financial perspective in that method financial performance is measure in term of
return on investment and net present value. Internal and customer perspective is measure in form
of level of satisfaction of customers after using the service. It also include the innovation and
learning perspective that includes organization goal and measure in term of time scale and utilize
resource to achieve those goals (DTI, nt.d.). Cost of quality measurement are include to measure
time scale in which Prevention cost to check Quality planning and assurance ; Appraisal costs is
used to verify and quality of technology check in term of functioning correctly or not.

CONCLUSION
Business plan concluded that to survive in cut throat completion market Triodos bank
adopt new technology and handle change management process effectively. Those results come in
form of improvement in business operations and reap market opportunity by effective utilization
of resources in well planned manner. Reputed bank boost up their performance by executing
strategy plan in significant so organization increase their market share and gain profit margin
(Terra Management Groep, nt.d.). Research plan helps to Triodos bank to concentrate on
environmental conservation and improves the people’s quality of life.

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REFERENCES
Books and Journals
Brooksbank,R. and et.al.,2004. Marketing in “survivor” medium-sized British manufacturing
firms: 1987-1997. 16 (3). PP.292 – 306.

Carter, S., 2012. Enterprise and Small Business: Principles, Practice and Policy. Pearson
Education, Limited.

Davies, A.,2012. Chapter 10 Conclusion: Sustaining Grassroots Sustainability Enterprise:

Challenges and Opportunities. PP.189-199.

Down, S., 2010. Enterprise, Entrepreneurship and Small Business. SAGE.

Kakkar, A., 2009. Small Business Management: Concepts & Techniques for Improving. Global
India Publications.

Longenecker, J., et.al. , 2013. Small Business Management. Cengage Learning.

Morrissey,B.,2004. A study of procurement behavior in small firms. 11( 2). PP.254 – 262.
Emerald Group Publishing Limited.

Parry, N.S.,2012. Environmental Responsibility in Micro-Enterprises: Exploring the

Relationship between Disclosure and Practice. PP.97-117.

Reid, G., 2002. Small Business Enterprise: An Economic Analysis. Routledge.

Robert, C., 2007. E-commerce in Regional Small to Medium Enterprises. Idea Group Inc.

Sarikaya, M., 2010. Chapter 4 Non-governmental organizations as outsourcing in corporate

philanthropy. PP.81-99.

Sian, C. and Roberts, C., 2009. UK small owner-managed businesses: accounting and financial
reporting needs. 16 (2). PP.289 – 305.

Susman, G.,2007. Small and Medium-sized Enterprises and the Global Economy. Edward Elgar
Publishing.

Tracy, C., 2011. Small Business Financial Management Kit for Dummies. John Wiley & Sons.

Wagner, A.B and Johansson,U.,2003. E-business and e-supply strategy in small and medium
sized businesses (SMEs). 8 (4).PP.343 – 354.

Online
DTI, nt.d. Performance Measurement. [Online]. Available through: <
http://www.businessballs.com/dtiresources/performance_measurement_management.pdf
>. [Access on: 26th June, 2014].

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Lewis, S., 2012. Making the right Moves. Global Banking Outlook. [PDF]. Available through: <
http://www.ey.com/Publication/vwLUAssets/Making_the_right_moves_-
_Global_banking_outlook_2012-2013/$FILE/Making-the-right-moves_Global-banking-
outlook-2012-13.pdf>.[Access on: 25th June, 2014].

Terra Management Groep, nt.d. Triodos Bank Head of Marketing International Note. [PDF].
Available through: <
http://www.terragroep.nl/index.php/component/rsfiles/view?path=Information+note+-
+Head+of+Marketing+International+-+Triodos+DEF.pdf>. [Access on: 26th June 2014].

Triodos Bank, 2014. Triodos Investment Management. [Online]. Available through <
http://www.triodos.com/en/about-triodos-bank/>. [Access on: 27th June 2014].

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