Auckland City Small Businesses Analysis - 2014 Report

Published:

Auckland City Small Businesses Analysis

2014 Report

Author: Leaziel Bayutas

– Senior Business Analyst,

NZ Business Review Center

Date Covered: Financial Year 2013-2014

31st March 2013 – 1st April 2014

Report Submitted on:4th August 2014

TABLE OF CONTENTS

COVER PAGE……………………………………………………………………………………… 2

TABLE OF CONTENTS…………………………………………………………………………….. 3

EXECUTIVE SUMMARY…………………………………………………………………………… 4

INTRODUCTION…………………………………………………………………………………... 5

METHODOLOGY………………………………………………………………………………….. 6

DATA TABULATION and ANALYSIS……………………………………………………………… 7

CONCLUSION and RECOMMENDATION………………………………………………………… 10

APPENDIX

(Project Budget and Schedule of Activity)……………………………………………… 11

(References)……………………………………………………………………............... 12

EXECUTIVE SUMMARY:

This report is done in order to review and evaluate existing small businesses in current operation in the heart of Auckland City. It is aimed that at the end of business’ operation analysis, the market position of each business will be defined in order to determine top and least performing enterprise. The local government has requested this analysis to aid the awarding of top performing business and provide training and financial assistance to low performing businesses.

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There are five small businesses covered in this report namely: RJ’s Café, Queen Street Dairy, Hiwa Sushi, Haba Bakery, and Oso Mini Mart. As a result of very impressive business performance during the 2014 financial year supported by effective marketing techniques and large market share, RJ’s Café has consistently shown top performance throughout the analysis process and is thereby recommended for the top performing enterprise award. Haba Bakery on the other hand is recommended for training and assistance offered by the local government.

Graphical representations of financial elements necessary to be analysed are included in this report, however only limited to 2014 Financial Year.

INTRODUCTION:

This report covers the performance analysis of small businesses currently operating in the heart of Auckland City. Financial information gathered from each entity will be presented and compared so as to determine relevant performance ratings of each enterprise. Market position, marketing strategies and market competition of the considered small businesses will be reviewed.

The economic performances of each business were based on business operations which occurred during the 2013-2014 Financial Year. Reviews and conclusions made by the author in this report is only limited to the period of 31st March 2013 until 1st April 2014.

Small businesses operating in Central Auckland City to be considered in this report are as follows:

  • RJ’s Café – 119 Victoria St, Auckland Central
  • Queen Street Dairy – 132 Queen Street, Auckland Central
  • Hiwa Sushi – 15 Albert Street, Auckland Central
  • Haba Bakery – 62 High Street, Auckland Central
  • Oso Mini Mart – 59 Shortland Street, Auckland Central

METHODOLOGY:

Due to security and confidentiality of information, all data gathered and disclosed in this report are obtained through legal connections and with permission of the small businesses owning the information.

Financial information was obtained through copies of financial reports from each business. Facts and figures regarding market position and strategies were collected as a result of permitted interviews with the business manager, financial manager or owner of each entity.

Accuracy and relevance of all information disclosed is assured, however only limited to evidence held such as the financial reports generated by each entity and sufficient market research done by professional and licensed business analyst(s) involved in this project.

DATA TABULATION and ANALYSIS:

Performance (SWOT) and Competition

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In the graph presented above, it is evident that there is a good level of competition between three small businesses in the food industry (RJ’s Café, Hiwa Sushi, and Haba Bakery) and fair level of competition between the two small businesses in the retail market (Queen Street Dairy and Oso Mini Mart). The level of sales shows that RJ’s café has the strongest measure of revenue. This may have been due to the size of its target market which is composed of working professionals, students and tourists. Hiwa Sushi which has a similar target market has the second highest level of sales. Queen Street Dairy and Oso Mini Mart which are in the retail market have relatively the same level of sales achieved in the 2014 Financial Year. Haba Bakery on the other hand has relatively low level of sales compared to what RJ’s Café and Hiwa Sushi have made. One weakness of these businesses is their location. Central Auckland has a reasonably small geographical area where universities and large companies are established as well as where hundreds of small businesses compacted in turn aggressively competing in a day-to-day basis. Such quality of location may itself be a profitable opportunity just like what it has been for RJ’s Café. However may be a threat for hard-earning enterprise like Haba Bakery.

Market and Strategies

The pie-graph representing the market share of the five small businesses and other small businesses operating in Central Auckland is reflective of the sales level achieved by each business. RJ’s Café being the strongest in revenue making has approximately the same amount of market share as all the other businesses operating in Central Auckland. All five enterprises have similar target market – working professionals, university students, local residents and tourists. Such target market has a very large consumer number that implies very good revenue potential. However, each business must generate an improving marketing strategy in a daily basis in order to maximise its profit. RJ’s Café has introduced meal deals for its weekday operations and were effectively attractive to its customers. Coupons and free coffee for every 10 bought have increased their chances of establishing customer loyalty. Retail stores like Queen Street Dairy and Oso Mini Mart also use a daily meal deal (ie. $5.50 pie & coffee, $5 cup noodle & drink, etc.). Hiwa Sushi has maintained its $5 lunch pack whilst alternating its noodle soup/rice combo meal. Such marketing strategies have been very strong and effective particularly in attracting working professionals that often want a quick serve meal and students who want ‘more for less’ type of deals. However, Haba Bakery has only introduced a breakfast deal and maintains original prices throughout the day. Each business has also provided sign boards in order to advertise their services and deals for the day.

CONCLUSION and RECOMMENDATION:

Based on the financial records made for 2013-2014 Financial Year, analysis done based on business performance and its strategies and sufficient background market research, it is evident that there has been an acceptable level of competition and economic improvement in small business operating in Central Auckland. Most of the small businesses covered in this report have generated marketing strategies that are effective and helpful in increasing sales and maximising profit.

As the purpose of this report states, analysis of small businesses’ performance currently operating in Central Auckland as requested by the local government in order to aid in determining top and least performing enterprise. Supported by this analysis report, there is a strong recommendation that the top performing enterprise award goes to RJ’s Café as the top earning entity and highest market share holder for year 2014. It is also recommended that Haba Bakery be given financial advice and marketing guidelines in order to increase revenue and improve market performance.

This report is only limited to information disclosed and business operations that have occurred during the 2014 Financial year.

APPENDIX:

Project Budget

This monetary budget is for expenses incurred in completing this project covering the two-month process from initiation until completion.

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This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

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Particulars

$NZ

$NZ Total

Transport and Petrol

480

Legal Fees

3,800

Office Supplies

250

Administration Fees

2,700

Wages

21,600

TOTAL EXPENSES

28,830

Schedule of Activity

WEEK NO.

PLANNED ACTIVITY

COMPLETED ON:

Week 1

Book appointments and interviews with business managers and owners

June 17, 2014

Weeks 2-3

Appointments and Interviews

June 30, 2014

Week 4

Research and analysis

July 7, 2014

Weeks 5-6

Report Writing

July 17, 2014

Week 7

Meeting to refine report

July 23, 2014

Week 8

Finalising report and presentation

August 1, 2014

References:

Victoria Business School. (July, 2013). How to Write a Business Report. Retrieved from http://www.victoria.ac.nz/vbs/teaching/publications/VBS-report-writing-guide-2013-July.pdf

*This link has been used by the student named Leaziel Bayutas as a guide in writing this business report. All business names and financial information written in this report do not exist in the real Central Auckland and are only made up by the student in order to produce this report.

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