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MBA Practice Project (HRM11123) : Evaluating the reasons for the profitability of small scale businesses

Evaluating the reasons for the profitability of a small-scale business (Convenience Store) analysing the supplier relations, customer evaluation and market analysisSmall- scale businesses are important for the growth of economy and development of the nation (House of Commons Business, Energy and Industrial Strategy Committee, 2018). Business markets consists of an extremely competitive as well as diverse retail sector. Retail business stores are spread over every location of the UK.These independent retailers have to gain strategic expertise. It is important to understand the functions of the traditional brick & mortar shops. It is necessary to evaluate the daily sales and expenses to understand the overall performance of the small- scale establishment (Kappel, 2017). The profitability of any small- scale business is linked to the relationship between the retailer and consumer as well as suppliers and retailers. Creating marketing plans is necessary to increase the effectiveness of the expenditure and increase profitability. This directly influences the supply and demand of these stores. Since they are self- employed, they need proper planning and advisory support to retain their profitability.Based on the analysis of the collected data regarding the supplier relations, customer evaluation and position in the market, the success of the business can be measured. It is always necessary to achieve a sufficient level of profitability and is supposed to be the main focus of the business owners(Fiore, Niehm, Hurst, Son &Sadachar, 2013).This allows the company to understand its ability to generate earnings necessary. It is essential to develop strategies to keep a certain level of earning. For a business to be successful, it is also necessary to set new financial goals, which helps in the growth, innovation and technological changes (Margaretha et al, 2016). Although, small independent business owners cannot afford to be satisfied with the current customer base, it is important to establish a good relationship with the customers.

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