MANAGING SMALL AND MEDIUM SIZED ENTERPRISE:

DEVELOPMENT STRATEGY FOR TURTLE BAY

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 Table of Contents
Introduction...........................................................................................................................................3

Findings.................................................................................................................................................3

Development Route for an SME........................................................................................................4

Alternative methods of growth for an SME.......................................................................................5

Sources of Finance for SMEs............................................................................................................6

Conclusion.............................................................................................................................................8

Recommendations.................................................................................................................................8

Reflection..............................................................................................................................................9

References...........................................................................................................................................11

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Introduction

As far as contribution to economic growth is concerned, small and medium businesses

(SMEs) are called upon to drive economic recovery internationally. Turtle Bay is UK's
best restaurant franchise for Caribbean restaurants. On rural highways famous for its rum
cocktails, exquisite jerk and, of course, its famous goat's curry, one will discover its particular
dose of sunlight.

Figure 1: UK growing restaurant profits according to 2016 statistics

(Source: Statista.com, 2021)

Turtle Bay was strongly growing casual food company with a compound yearly basis
turnover rate of 104.8%. However, this SME in UK faced a challenge due to sharp fall in
revenue profit in their last trading, which was £4.43 million to £1.4 million in 2020 due to
pandemic of COVID-19 (Statista.com, 2021). Moreover, Turtle Bay stated that Brexit,
competitiveness in this field and increasing prices are key external concerns, while internally
recruiting and keeping personnel are challenging. However, after government support to
these types of SMEs helped to re-open their business properly post pandemic situation. This
report offers new insights on how SMEs are developing innovative intents in this dynamic
globalising market and strategies needed in order to attain sustainability.

Findings

Development Route for an SME

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In 2010, Ajith Jaya-Wickrema from Sri Lanka and Stephen Entwistle from UK created a
Caribbean restaurant with bar service and named Turtle Bay. In Milton Keynes, they
launched their initial restaurant. Currently, Turtle Bay has more than 40 stores in Great
Britain and has around 1500 employees. Today's sales stood at over £70 million. The firm has
offices in locations including Bath, Bournemouth, Birmingham, and more. Turtle Bay also
operates two locations in Germany: Oberhausen and Dresden. Turtle Bay offers a widespread
range of specialty food and drinks within UK that is a major distinction in competitively
casual catering. In a number of UK locations, especially London, Caribbean food is not so
widespread as Indian and Asian cuisine in Great Britain, however is becoming a mainstream
(Apekey et al. 2019).

Figure 2: SME with development plans by sector in the United Kingdom 2014-20

(Source: Statista.com)

Since 2010, the Government has started a wide-ranging programme to enhance and boost
possibilities for SMEs (SMEs). In 2015 previous 25% objective was boosted to 33% through
direct expenditure or indirectly through the use of  supplier chain in 2022 in order to reach

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small to medium-size firms (Statista.com, 2021) Specific challenges in funding are caused by
greater variety in SMEs' ability of profit making, survival and development in comparison
with bigger companies. SMEs usually face higher rates of interest and credit restrictions
owing to collateral shortages. The problems arising from funding of current and new
companies range substantially from those which are slowly growing, and those which are
rapidly growing (Barringer, 2014). The development of private equity markets, including
local sectors, has considerably enhanced accessibility for start-ups including SMEs to
Venture Funding, although there are substantial variations between nations. SMEs are of
enormous economic importance in UK, majority of enterprises are SMEs from local stores to
tiny technology companies that operate from serviced offices (Burns, 2018). In 2018,
Government identified 5,7 million small and medium-sized enterprises, accounting up 99%
of all companies. The UK's micro firms represented 5.4 million, representing 96% of all
enterprises (Statista.com, 2021).

The Turtle Bay crisis caused by new COVID-19 epidemic and Brexit forces businesses to cut
back on services and lunch, and would otherwise close down completely some days.
Although dining rooms were restored on May 2021, these twin disasters have merged and
presently too little personnel is employed to maintain in restaurants, at even decreased
capacity (Neyoy et al. 2017). Effective management in a restaurant company is built not just
on longer service ratios, as well as on approaches such as benchmarking for market and
competitive analyses. In-house challenges such as bad management, poor service, and items
of low quality or external challenges can be economic, political, and health issues (Mariotti
and Glackin, 2016) Entrepreneurship starting and operating a small business. The response to
domestic crises requires corrective actions, while undertakings have little influence over
a business environment in foreign crises and, thus, are subject to government support and
crisis management procedures. The aggressiveness of market participants rises in times of
crisis especially post crisis when demand declines.

Alternative methods of growth for an SME

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 Figure 3: Financial report of Turtle bay from 2016 to 2020

(Source: Companycheck.co.uk, 2021)

Start-ups or small companies are generally motivated by great excitement and positive
attitudes about their selected markets. This may carry them far, although it is advisable to get
a realistic, long-term corporate growth strategy for real success in competitive marketplaces.
In 2010 Milton Keynes started opening first Turtle Bay with 18 addition to its investment,
with piper investors investing in UK-based and sales of £5m, which is a competitive
advantage besides turtle bay, even though small Caribbean restaurant chains cannot remain
competitive only with them, as many can manage the necessary capital. Turtle bay plans to
buy a further 20 by 2019, however they has been successful until its first restaurant was
opened, although there was significant criticism that cuisine served can be authentic, and it
can influence  organisation (Satria et al. 2021). The size of this restaurants contrasts greatly
with the typical little ones. An organizational mission statement offers a significant way in
which internal as well as external stakeholders may communicate a perception of direction. 
It can motivate management and employees. This statement nevertheless shapes corporate
management's principles and views.

Vision and strong goals fuel entrepreneurial companies. The organisation will establish a
mission statement to help its vision. The main objective of project is to understand and assist
managers to improve planning. In establishing a policy plan that includes stated mission,
companies will be more effective and focus on what is essential.

Sources of Finance for SMEs

According to stat up with a new enterprises financial sources are very crucial. There are
several financial sources available in UK to avail all opportunity of a start-up. However, all
these sources have been categorized under internal and external sources. According to

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internal sources, this considers personal potential investment, friends or family (Brown,
2019). Whereas, as external sources it includes trade credit, bank loans, venture capital
investment, shareholders investment and more. The Turtle Bay also had both external and
internal financial sources, such as Piper Pvt. Ltd invested £6 million at the time of start up
(Temelkov, et al. 2018).

Figure 4: Graphical representation of Turtle Bay revenue turnover from 2016 to 2020

(Source: Companycheck.co.uk, 2021)

The United Kingdom is home to corner stores, bakers, charcuterie and hatchers. Over 99% of
all private enterprises are small and medium-sized. This is greater than Dubai, where small
and medium-sized enterprises account for only 95% of companies
(Businessrescueexpert.co.uk, 2021). The UK Government has made steps to enhance
business climate of such firms over past several years with all that in mind. A "business base
Fund" was created in 2018, to promote small company growth and aims to spend the majority
of its budget on small and medium-sized enterprises by 2022 (Viswanadham, 2017).
Initiatives like Government-sponsored "Small Business Saturday" have also pushed
customers to take closer note about where people invest their money.  Small Business
Saturday is held in UK around country every year. Over £800m was spent on a Saturday in
middle November for this event in 2018 (Businessrescueexpert.co.uk, 2021).

However, at present small and medium-sized businesses in UK operate in a difficult business
climate. Academic research has shown that Brexit is likely to harm SMEs. It might lead to
lower investment, lower trade and impede growth in the international market. The small and
medium-sized businesses most vulnerable to exports.

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Conclusion

Developing management in hospitality sector is a crucial aspect to achieve sustainability in

this dynamic market of UK. Turtle Bay is a renowned SME within UK which operates in
several areas of this country. This report presented all those aspects of developing strategies
implemented in this hospitality company. During the downturn in the economy of COVID-19
and Brexit, this specific small and medium-sized enterprise also had a major impact (Apekey
et al. 2019). Thus, it requires more improvement and needs to take different measure to grow
their business respect to past success.

All those information helped to understand the current structure and situation of small and
medium business in UK. Alternative methods for developments and improvement of this
company has been shown in this report. This considers a mission statement which can help
during this development. This can help a company to be in track while providing quality
product and service to their targeted customers. A mission statement also defines their long-
term objectives towards success and also it helps to create more audience response and leads
to a higher revenue. However, Turtle bay have fully utilised this strategy according to their
alternative method of development.

Recommendations

Towards developing a business as a SME it requires some growth policy, which includes:

 Regulation and Legislation: A business needs to maintain all criteria while entering
the market. It includes labour laws or taxes, registration of business (Najib et al.
2020).
 Financial Accessibility: Collateral registries, credit bureaus, credit guarantees and
matching grants, which are included in credit structure, are required according to
growth policy of SME (Oláh et al. 2019).
 Skills of business and practices: Providing training in workshops to all new and old
employees and staff and a feedback policy for all workers in business is also crucial
strategy for growth.

The transition of an organisation from one phase to other means organisational

transformation. A change in environment frequently necessitates change within an

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organisation (Kim et al. 2018). According to Turtle Bay, all those changes required to grow
and manage development it requires of an excellent understanding of demographics of
workplace and implementation of technology. According to workplace demographics Turtle
have to ensure their both employees and customers are maintaining all changed regulations
and guidelines, such as keeping social distancing and wearing of masks. Some companies
have undertaken it on themselves to bridge that 'Brexit skills gap' in fight against shrinking
pool of talent as well as worrying fact that just 17% of UK millennial view work as hospitals
(Lai et al. 2021). This strategy guarantees that hospitality environment still has accessibility
to significant qualifications and enables people to develop their skills. The outcome is
fidelity, skill and a larger pool of talent.

However, according to implementation of technology to enhance efficiency of workers will

help to grow this business (Theis, 2019). By digitising paper-based procedures and removing
email and tablets, tasks of employees require shorter time and require fewer people to
accomplish making it flexible to meet workforce requirements. Technology may also be
utilised to promote education and integration, allowing new beginners to pass consistent,
automatic and customized lists of trainings.

Reflection

While doing this report I found that development in management within all small and
medium enterprises are very crucial. All those learning outcomes from this report helped me
to improve my understanding about managing development. From week two lecture I have
found that there is a huge difference between innovation and invention. A small business
mostly needs innovation to acquire the space in this dynamic market. Issues and challenges
faced by all small enterprise were hampering their business, however, due to support of
government with their initiative such as “Small Business Saturdays” and “Business base
Fund” helped those business with a new resource of finance.

According to begin a start-up I have learned from this report of Turtle Bay. It is crucial to
know all those demands of customer and then find a solution with productive material. Turtle
Bay is a suitable example for inspiring a start-up business. By using mission statement how a
business can grow I have learned from this study report. I got a clear concept of both internal
and external financial sources. While developing recommendation I have tried to mention all

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those growth policy which can be incorporated in business to achieve sustainability. Some
basic changes will be required during this post pandemic and post Brexit situation which I
have learned while in recommendations. Overall it was beneficial and productive tasks for me
which will help to me grow my understanding about managing development in SMEs.

References

Books

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Barringer, B.R. (2014). Preparing Effective Business Plans: An Entrepreneurial Approach,
International Edition, FT Prentice Hall.

Burns, P. (2018) New Venture Creation: a framework for entrepreneurial start-ups, 2 nd

Edition Basingstoke, Palgrave McMillan

Mariotti, S. and Glackin, C. (2016) Entrepreneurship Starting snd operating a small business,
Pearson

Journals

Apekey, T.A., Copeman, J., Kime, N.H., Tashani, O.A., Kittana, M., Walsh, D. and Maynard,
M.J., 2019. Methods of producing new nutrient data for popularly consumed multi ethnic
foods in the UK. Journal of Food Composition and Analysis, 78, pp.9-18.

Brown, R. and Lee, N., 2019. Strapped for cash? Funding for UK high growth SMEs since
the global financial crisis. Journal of Business Research, 99, pp.37-45.

Kim, S.S., Tan, J.D., Juliana, R. and Purba, J.T., 2018. Financial management of tires retail
and restaurant business in Greater Jakarta. ICONIET PROCEEDING, 2(4), pp.267-275.

Lai, H.B.J., Abidin, M.R.Z., Hasni, M.Z., Ab Karim, M.S. and Ishak, F.A.C., 2021. Key
Activities of Menu Management and Analysis Performed by SME Restaurants in
Malaysia. Journal of Academic Research in Business and Social Sciences, 11(4), pp.339-361.

Najib, M., Septiani, S. and Nurlaela, S., 2020. The role of innovation, entrepreneurial self-
efficacy and local uniqueness on marketing performance in small and medium-sized
restaurants. Journal of Foodservice Business Research, 23(6), pp.499-519.

Neyoy, J.E.G., Rodríguez, L.F. and Castro, L.A., 2017, June. Decision support system for a
SME in the restaurant sector: Development of a prototype. In 2017 12th Iberian Conference
on Information Systems and Technologies (CISTI) (pp. 1-6). IEEE.

Oláh, J., Kovács, S., Virglerova, Z., Lakner, Z., Kovacova, M. and Popp, J., 2019. Analysis
and comparison of economic and financial risk sources in SMEs of the Visegrad group and
Serbia. Sustainability, 11(7), p.1853.

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Satria, E., Cahyana, R., Bachtiar, Y. and Fatimah, D.D.S., 2021, March. Development of
geographic information systems for Small and Medium Enterprise centres. In IOP
Conference Series: Materials Science and Engineering (Vol. 1098, No. 3, p. 032090).

Temelkov, Z., Boskov, T. and Zezova, A., 2018. Alternative financing sources supporting
SMEs growth. SocioBrains, International scientific refereed online journal with impact
factor, (52), pp.230-236.

Theis, D.R. and Adams, J., 2019. Differences in energy and nutritional content of menu items
served by popular UK chain restaurants with versus without voluntary menu labelling: A
cross-sectional study. PloS one, 14(10), p.e0222773.

Viswanadham, N., 2017. Alternative Strategies on Improving Small and Medium Enterprises
Access to Seed Capital. A case of Dodoma Municipal, Tanzania. International Journal of
Research-GRANTHAALAYAH, 5(9), pp.1-14.

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08/07/2021 from <https://www.businessrescueexpert.co.uk/guide-to-funding-options-for-
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Statista.com, 2021 Fastest growing casual dining groups in the United Kingdom (UK) as of
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Statista.com, 2021 Share of small and medium enterprises (SME) with growth plans for the
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