The Small Business 1

Running Head: THE SMALL BUSINESS

Managing the Small Business

[Name of the Writer]

[Name of the Institution]

 The Small Business 2

Managing the Small Business

Executive summary

This research paper covers study of the Fairwood Fast Food outlet that how does

it effectively functions and endures in the cutthroat market as a small business starter.

Fast food and coordinated catering is not anything new to Hong Kong. Fairwood Fast

Food had 12 years in Hong Kong rapid business and it is well-known as assisting mostly

Chinese food and its list is often altered with cyclic favorites; secondly, it adequately

concentrates on employees' development in alignment to advance their work

performance; farther more, the cost of raw components can furthermore be decreased

through economies of scale; finally, its' list conceive is spectacular and considered round

four time segments to cater for distinct desires of customers. However, Fairwood Fast

Food habitually presents the customers the images that it is a copycat, habitually exact

replicate the food recipe either from café de carol; farther more, it endured food value

command and economic financial instability. Upon the facets of external natural

environment investigation, the Fairwood Fast Food has affirmative status like expanding

"Not cooking young twosomes” (Taticchi, 2008, 57-71.) economic worsening time span,

diet fondness of younger and teenagers, its' ascendant position in Kowloon, and Hong

Kong is an appealing traveling town will make more possibilities for Fairwood Fast Food

to develop. However, some external impediments as natural catastrophe and enthusiastic

affray in catering commerce will threateningly cumber its development.

The part of enlightening from interview and investigation can effortlessly get that

the Fairwood Fast Food restaurant has been effectively evolving from one outlet to 11
 The Small Business 3

outlets today due to their management philosophy that habitually pursues the rudimentary

directions like automation, very fast, and Utilization of correct resources; farther more, its

management Concentrates on sustaining value and security of the food merchandise,

accelerated shop openings in hard economic times, and often make promotion through

productive medias.

Introduction

Small Business, is individually belongs to and functioned, is not superior in its

area of procedure and can specify under criteria in relative to number of workers, mean

annual acknowledgements or other criteria. Small businesses are characterized as of

relatively small size in particular industry, have constrained resources, personalized styles

of management, high levels of innovation, uncertain internal and external environment,

and show evolutionary growth trends.

Running a one-person enterprise is a creative, flexible and demanding way to

become your own overseer and journal your own future. It is about conceiving a life, as it

is about making a living. It takes bravery, conclusion and foresight to conclude to become

an entrepreneur. From the somewhat protected cocoon of the business world, where

paychecks reach frequently, you will be embarking into the un-chartered territories of

business. This research paper wrappings the contents that investigation of the Fairwood

Fast Food restaurant is how to effectively function and endure in the cutthroat market as a

small business starter.

 The Small Business 4

Start up Strategy and Company Profile

High innovation and environment uncertainty force small businesses to start with

a bottom up approach of marketing, i.e. to start with fewer customers and small budgets

for promotions then show a growth in steady manner. No classical concepts of target

marketing, segmentation, and brand management actually incorporated at the initial

stages, the growth and expansion automatically set the desired levels and strategies of

entrepreneurial businesses.

The first Fairwood Fast Food restaurant was established in December 1991 in

Chung on Street, Tsuen Wan, listed capital of the time was HK$5 millions and the total

allowance of the workers was 57. The second restaurant was opened five years

subsequent in 1996 in Fuk Wing Street, Sham Shui Po, the total allowance of the

employees at that time has been expanded to 86. Fair amplified quickly since then

growing from 5 outlets to a total of 11 in 1998, assisting over 10,000 customers daily.

Fairwood Fast Food restaurant is principally committed in functions a string of

connections of very fast food outlets in Hong Kong and the People's Republic of China

under the title of "Fair Fast Food". Fair's very fast food outlets assist mostly Chinese

food. Its list is often altered with cyclic favorites. Despite its Chinese predominance,

Fair's list is enriched by the adoption of Western bowls that have been mindfully

redesigned to match localized flavors in alignment to enhance its attractiveness.

Fair's philosophy has habitually been to supply a broad variety of good value

Chinese and Western cuisine at inexpensive charges in a brilliant, clean and up to date

ambience. In alignment to double-check and enhance its competitiveness, Fair

 The Small Business 5

relentlessly reconsiders revisions and advances the goods it offers. To this end, Fair

certainly hunts for to insert new food goods to its variety in alignment to boost its kind,

hold the interest of its customers and therefore construct up their loyalty (Nelson and

Bell, 2004, 58-199).

Throughout its annals, Fair has searched to be innovative in both the development

and production of its very fast food products. Fair was the first very fast food string of

connections in Hong Kong to insert customary mud vessel rice and rice burger. It was

furthermore the first to package its goods to supply customers with set-dinner and set-

lunch.

Business Owner Profile

Entrepreneurs often begin with a big idea and then struggle to discover a

marketplace to cash that idea. Whitmyer & Rasberry (1994) indicated some distinctive

properties in entrepreneurs which differentiate them from ordinary employed people.

These distinctive properties include persistence, rational attitude, and risk minimization.

Also quick learning from experiences, organization, and careful observation set their

success paths (11).

53 years old, Hong Kong citizen, Loh kok cheng can also characterize in above

defined category of Entrepreneurs. When he was 17 years old, he had been to UK and

America to study inn catering management till 1981; he came back to Hong Kong and

worked in a food constructing industry. Before setting up Fairwood Fast Food in 1991,

Merlo had over 10 years' knowledge in the food industry. Upon that, he made a

conclusion on beginning his own small business and lent from the bank, even families
 The Small Business 6

and associates At the starting of the Fairwood Fast Food restaurant started functioning, it

has utilized to face many of matters due to need of functioning knowledge, such as “poor

employed situation and worker relatives, need of group, snags in output, pointless action

of components”, and so on (Howorth, and Westhead 2003: 94-111). Even then, he didn't

stop and expended a substantial allowance of costs on chartering out-of-doors

professionals to help him till nowadays, he has become a thriving entrepreneur.

Strengths of the Business

Fairwood Fast Food had 12 years history in Hong Kong rapidly growing

businesses, since the first Fairwood Fast Food restaurant was established in December

1991. It's well renowned as assisting mostly Chinese food and its list is often altered with

cyclic favorites. Despite its Chinese predominance, Fair's list is enriched by the adoption

of Western bowls that have been mindfully redesigned to match “localized flavors” in

alignment to enhance its attractiveness (Hermanson, Houston, 2007, 137-152.). In Hong

Kong, Chinese very fast food outlets can be counted on the appendages, Fairwood Fast

Food is one of the most well liked Chinese very fast food restaurants.

The first Fairwood Fast Food restaurant was established in December 1991 with

the total number of the workers was 57. In decades of development, the total allowance

of the workers has expanded to 300. "Training is an investment" said Mr. Lee, supervisor

of trading department of Fairwood Fast Food outlet, "we do supply teaching to new

workers undertook by outlet managers. Even management employees, we do often supply

learned techniques to them in order that they may come by more abilities, information

and proficiency to assist to our company." Further more; most of the Fairwood Fast Food
 The Small Business 7

restaurant management employees are skilled and educated (Green, 2006, 67-70.). Thus it

can be glimpsed that Fairwood Fast Food restaurant sufficiently concentrates on

employees' development. Besides that, Fairwood Fast Food restaurant often charters out-

of-doors trainers or professionals to observe and assess job presentation of the

employees.

Networking

Networking in business is the integration of the company to all its stake holders,

small business networking is the procedure of constructing positive relationships with

potential customers, employees, and other business people. This affiliation is jointly

helpful to every body in connection. Networking is integrative as well as inside-out. It is

very significant for small business entrepreneur to appreciate and distinguish between

networks of companion, the internal surrounding, and the business networking (Roger

Hayes, 1996). It is equally imperative to hold them and to have a proper edge in network.

In undersized businesses, individual contact network of entrepreneur is very vital and it

can be the source of exact and ideal information. This information is really very helpful

to supply guidance in aggressive and active industry surroundings.

The initiative of networking, in which entrepreneurs mutually support each other,

work together with well-built organizations and “add support from neighbouring

associations like Chambers of Commerce and Stock Exchanges, regarded as a basic

activities of the small business administrator and a way of surmounting internal sources

limitations” (Carson & Cromie 1995: 122).

 The Small Business 8

Astle (1994) has suggested the rules of success for small and medium enterprises,

these rules are putting people first, and keep the credibility of promises, trust

establishment, emphasis on necessities rather than luxuries, proper execution of

processes, effective planning, and selling optimism.

Marketing Intelligence & Research

Marketing research as an instrument for planned collecting, recording, scrutiny

and explanation of information obtained about difficulty of promotion of commodities

and services (Dorking 2009: 122). There is always restriction for small firms to indulge in

the complicated marketing research as they lack resources, time, manpower and skills

required to perform extensive research.

When we consider the value of services and consumers satisfaction through

personal, or agile, assesses of value, which aim on insights and mind-set of the

consumers other than more solid target criteria, they encompass “consumers satisfaction

reviews and questionnaires” to work out consumers mind-set and insights of the value of

the products and service they are obtaining (Hayes 1997: 7). Whitmyer & Rasberry

(1984) express that the marketing mix for a restaurant which provide combination of

service and product is comprised of Promotion( advertising and public relations, word of

mouth), personal selling, price ( competitive and reasonable), place ( location selection),

and product development. But businesses or individuals offering a high level of service

should think in terms of 7Ps (184).

Fairwood Fast Food achieved economies of scale mainly through the dimensions

of operations. Large enterprises have the promise to function at smaller unit costs.
 The Small Business 9

Fairwood Fast Food, as large-scale vegetation, is lower to make, and they yield smaller

functioning charges per unit of output. Although the most considerable profits of are

generally glimpsed in making food, advantages of scale can be accomplished in “trading,

sales, circulation, management, R&D, and service” (Digiacomo and Kleckner, 2003). The

cost of raw components and boats can furthermore be decreased through finances of

scale.

Utilization of time-saving gear, like microwave and mail blend beverage

dispensers; labour-saving gear like ware washers, self-acting potato peelers and self-

acting coffee brewers'; and self-service apparatus or procedures to decrease work

overhead like vending appliances, cafeteria schemes, buffet tables

At the starting of the Fairwood Fast Food restaurant functioning, it has utilized to

face many of matters due to need of functioning knowledge, such as poor employed

situation and worker relatives, need of group, snags in output, “pointless action of

components”, and so on (Dunn 2002: 102-144) Even then, the Fairwood Fast Food

restaurant hires the out-of-doors professional to investigate the matters it is opposite and

excogitate the survival schemes to contend with the other fast-food industries.

Products and Services

Product and service Specialization draws attention and succeeds in creating

clear and strong brand image in the minds of consumers (Edwards, Edwards and Douglas

1998: 30). In Fairwood, Loh kok cheng also tried to declare specialized in his area of

business to become more credible, attractive, and equitable to competitors, has been able

to charge premium prices and to provide competitive services.

 The Small Business 10

Fairwood Fast Food good's meal lists are conceived round four time segments,

namely Breakfast, Lunch, Afternoon Tea and Dinner. Products suggested in each segment

are distinct and furthermore are cost distinctly taking into account the consuming and

expending customs of its customers. Several of the list pieces permit an alternative of

dressings and edge dishes. The list is reconsidered and altered, where regarded essential,

on an every week basis. Some pieces rotate two times a week. In supplement, meal lists

are altered seasonally.

Marketing Opportunities

Consumers satisfaction is a psychosomatic notion that engages delight those

outcomes from getting what one wants for and anticipates from an appealing service

(WTO, 1985). A delineation of consumers satisfaction founded as a method, emphasizing

the behavioral, analytical and psychometric methods assisting to consumers’ satisfaction.

Evaluation of satisfaction is made throughout the service consignment process (Vavra,

1997). Service has two elements: direct services. Like the genuine entry and departure

method in inns, while the indirect services encompass the stipulation of parking

amenities, public telephones use, etc (Davis and Stone, 1985, p.44).

Hong Kong is a flourishing, prosperous, and engaged seaport; thus, most of the

customers have their exceptional way of life as generally the young twosomes seldom

prepare food at dwelling after work or overtime job due to weariness or time. Therefore,

this implicates when the higher the development rate of families, the more possibilities

for Fairwood Fast Food to organize and contend with other competitors in the future

(Oster, 2009, 58-61). Also, international financial depression has affected Hongkong
 The Small Business 11

also, and throughout this economic worsening time span, the bargaining power of

purchasers is decreased due to smaller earnings acquired as buyers came across inflation,

job insecurity and job loss, often for the first time in a generation and they favor moving

from customary Cantonese outlets to fast food restaurants. However, numerous of these

reversionary situation have turned out to be to the advantage of the fast-food and

coordinated restaurant chains with retail leases dropping, buyers searching worth for cash

and lower establishments as are against to unaligned restaurants (Kocalkuiah, 2007, 34-

39.). The fast-food chains are really expanding.

Most of the younger and teenagers like fast food very much it is not only due to

convenience but furthermore make them sensed another lifestyle. This implicates that the

younger and teenagers are the major customers of the Fairwood Fast Food, the more the

younger and teenagers, the higher the community development rate, the more

possibilities for the Fairwood Fast Food to develop.

At the starting of the Fairwood Fast Food established, it has identified the

significance and immense leverage of advertising. They often made promotion through

distinct Medias in order that it captures the distinct concerns of distinct segments in the

market. Refers to the responses of the interview inquiries.“Fairwood Fast Food has

expanded to nearly 1 million customers visiting throughout the first 5 years” (Webber and

Weins, 2009, 44-48).

 The Small Business 12

Branding Strategies

Brand equity of products in fast food industry largely depends on the consumer

perceptions. Brand elements like name, slogan, character, symbols etc. are effectively

utilized by this company to establish a large brand loyalty in past 20 years.

The philosophy that the Fairwood Fast Food management always cited, food

value can be advised as a “complex attribute of food that works out its worth or

acceptability to consumers” (Hutton, 2007, 287-297.). Safety of food is a rudimentary

obligation of food quality. "Food safety" suggests nonattendance or agreeable and

protected grades of contaminants, adulterants, routinely happening toxins or any other

matter that may make food injurious to wellbeing on an acute or chronic basis.

(www.fao.org) besides security, value attributes include: nutritional value; generic

properties for example look, hue, texture, taste; and purposeful properties. In alignment to

arrest the market portions, the Fairwood Fast Food restaurant firstly concentrates on

sustaining value and security of food merchandise and presents a good likeness to the

customers.

Competition and pricing

Fast food and coordinated catering is not anything new to Hong Kong. The most

comparable competitor is Café de Coral Group, which boasts exceptional food packages

at super reduced price (Bressler & Bressler 2006: 56-60.). Even though the food list of

Fairwood Fast Food restaurant is spectacular, it is not tough to observe and contrast that

the food list conceive of Fairwood Fast Food restaurant and Café de Coral are calm alike

no issue either on methods, or recipes. Further more, Fairwood Fast Food often
 The Small Business 13

commences the comparable new goods or meal lists after Café de Coral. Therefore,

Fairwood Fast Food habitually presents the customers the images that it is a copycat,

habitually exact replicate the food recipe either from café de carol. American fast food

reached in 1975 with McDonald. While this was the first systematized burger string of

connections, this pattern of food was well renowned through western outlets and

furthermore the British fish & portion shops. Since the late 1970s, the number of fast-

food and coordinated string of connections outlets in Hong Kong has multiplied.

The pricing strategy of the company is one of the most critical decision owner has

to make. Food business is very sensitive that too much high price knocks you out of the

market and too low price generates suspicion about quality, in fast food sector

competitive pricing strategy is most effective as the differentiation in the products is low.

Also, the profitability of the company is a vital concern for business growth; cost

leadership strategy can increase the gain of company in a price sensitive market.

Fairwood Fast Food also follows the competitive pricing, in line with its closest

competitors.

Recommendations

Through the interview and investigation of the Fairwood Fast Food outlet, I have

resolved the major causes that the Fairwood Fast Food has been effectively functioning.

In order to thrive in the long run they can follow these guidelines

A self-activating procedure or command of a method, device, or scheme, and is

the totality of mechanical and electrical devices methods and equipment utilized to

accomplish such procedure or control (Digiacomo and Kleckner, 2003). Even though the
 The Small Business 14

equipment might be very costly, it is a way of cost keeping in long period plan. Addition

of latest devices would increase the efficiency and quality of the products.

Acting, going, or adept of going rapidly, swift, and carried out in somewhat little

time: it is expeditious, which blends the senses of rapidity and efficiency. Further more,

use of paper goods and artificial covers holds work charges down: pre-sliced dairy

cheese, loads of jellies and ketchup. Green (2006) has expressed that getting the clientele

to do the work, a restricted list constrained to pieces with a short groundwork time would

make very fast service likely and would furthermore be helpful in simplifying operations

(67-70.).

Introduction of augmented services like specialty coffee sections, internet café’s,

CD sections, and music corners would attract more youth to their outlets. Also, targeting

families and providing play area for kids would increase the family clientele of the

business.

Conclusion

In conclusion, the causes why the Fairwood Fast Food restaurant may evolve

from a little commerce till today's clearing commerce are, the enterprise proprietor of the

Fairwood Fast Food restaurant understands the distinction between the characteristics of

his enterprise and the advantages it provides. For example, the clientele will be adept to

conveniently select their spectacular food meal lists that are conceived round four time

segments, and furthermore are cost distinctly taking into account the consuming and

expending customs of its customers. Secondly, Mr. Lee works out the goal market to

expanding "Not cooking" young twosomes and teenagers and commences the right
 The Small Business 15

merchandise at the right timing. Besides that, the management philosophy of Fairwood

Fast Food restaurant is major cause to get access to and endure in such a cutthroat market

environment.
 The Small Business 16

References

Bagranoff, N. A., Bryant S. and Hunton S. 2002. Core Concepts of Consulting for

Accountants. John Wiley & Sons, 85-99

Bizplanbuilder Express: 2003.A Guide to Creating a Business Plan with Bizplanbuilder.

South-Western Educational Publishing, 85-125

Bressler, L. A. and M. S. Bressler. 2006. How entrepreneurs choose and use accounting

information systems. Strategic Finance. 56-60.

Brewer, P. C., M. A. Garamoni and J. Haddad. 2008. University Tees: Introducing

fundamentals of management accounting in a small business. Journal of

Accounting Education 26(2): 91-102.

Buskirk, B. and M. Lavik. 2004. Entrepreneurial Marketing: Real Stories and Survival

Strategies. South-Western Educational Publishing, pp. 25-196

Coupey, E. 2004. Digital Business: Concepts and Strategies (2nd Edition). Prentice Hall,

pp. 85-258

Cozad, M. A. 2005. Top 5 SOX best practices for small companies. Strategic Finance. 42-

46.

Crawford, W, B. K. Klamm and M. W. Watson. 2007. Surviving three SOX opinions.

Strategic Finance (May): 46-53.

 The Small Business 17

Digiacomo, J. and J. Kleckner. 2003. Win Government Contracts for Your Small Business

(CCH Business Owner's Toolkit series). CCH Inc.

Dunn, P. 2002. Never Say You're an Accountant: Turning Your Practice into a Consulting

Powerhouse. John Wiley & Sons, pp. 102-144

Edwards P. Edwards S. Douglas L. (1998). Getting business to come to you-a complete

do-it-yourself guide to attracting all the business you can enjoy. Michigin: Jeremy

P. Tarcher/Putnams.

Green, J. W. 2006. Section 404 for small caps. Journal of Accountancy (March): 67-70.

Hermanson, D. R., R. W. Houston and J. C. Rice. 2007. PCAOB inspections of smaller

CPA firms: Initial evidence from inspection reports. Accounting Horizons : 137-

152.

Howorth, C. and P. Westhead. 2003. The focus of working capital management in UK

small firms. Management Accounting Research (June): 94-111.

Hutton, A. P. 2007. A discussion of ‘corporate disclosure by family firms’. Journal of

Accounting and Economics: 287-297.

Kocalkuiah, M. 2007. ABC implementation for the small service company. Cost

Management: 34-39.

Leitner, P. 2005. Measure twice, cut once: Creating and measuring value in the private

firm. Strategic Finance.26-32.

 The Small Business 18

Leitner, P. J. 2006. The fallacy of safe harbors: Managing for value in the private firm.

Strategic Finance. 30-36.

Lorsch, J. W. and T. J. Tierney. 2002. Aligning the Stars: How to Succeed When

Professions Drive Results. Harvard Business School Press.

Mendlowitz, E. 2006. The Adviser's Guide to Family Business Succession Planning.

AICPA., 120-165

Metzler, J. C. 2006. Taking care of small business. Journal of Accountancy. 39-41.

Nelson, D. C. and J. D. Bell. 2004. Profiles in Entrepreneurship: Leaving More than

Footprints. South-Western Educational Publishing, 58-199

Oster, S. I. 2009. Internet telephone services for individuals and small businesses. Journal

of Accountancy . 58-61.

Pinson, L. 2004. Keeping the Books: Basic Record Keeping and Accounting for the

Successful Small Business (Keeping the Books). Dearborn Trade., 36-78

Taticchi, P., K. R. Balachandran, M. Botarelli and L. Cagnazzo. 2008. Performance

measurement management for small and medium enterprises: An integrated

approach. Journal of Applied Management Accounting Research. 57-71.

Webber, T. and B. Weins. 2009. Put your business on the map with Google maps. Journal

of Accountancy . 44-48.

Whitmyer, C. and Rasberry, S. (1994) Running a One-Person Business Berkeley: Ten

Speed Press
The Small Business 19