1.

0 Introduction Even though numerous attempts have been made, it cannot be said with absolute certainty that small enterprises have been properly defined. Bolton Chamber (1971 cited in Carter & Jones-Evans 2006) has endeavoured to define a small business as an enterprise which is autonomous and not part of bigger firm that is managed in a basic organizational and governance structure and has a comparatively minor stake of the overall market. Following such a definition, small businesses are scrutinized in perspective of volume in terms of employees and the enterprise, style of management and nature of the business. This aspect is further elaborated by Analoui & Karami (2003) who justifiably add that the size of any given small business is often geographical. Most European countries classify a small business as any enterprise comprising of no more than two hundred and fifty [250] employees. Incorporating such a figure, the aforementioned authors have compiled that approximately 3.7 million businesses across the UK qualify as small businesses. Studies carried out by the Council of Europe (1994) indicate that contributions to the employment growth in any economy are now monopolized by small businesses. In addition, it has recently been unveiled that most nations are promoting small businesses in light of the fact after the fall of employment in large firms and entities, small businesses have become the main source of new careers. However, neither small businesses nor large firms can sustain the market without each other. Both equally complement each other as small businesses are seen as innovators and developers of new processes and markets which are later taken on a larger scale by bigger firms. Barrow (1998) substantiated with statistics, was of the thought that almost six [6] to fifteen [15] % of the working population in developed economies were small business owners. Illustrations such as the following fairly indicate the truth in Barrows findings: ITALY: 90% of the industrial firms are small business and absorb 84% of entire work force; DENMARK: 92% of all manufacturing firms are small businesses hiring 43% of the total work force in the nation. Small businesses numerous contributions to the market include essential functions such as smallscale retailing, repair facilities, and subcontracting. In this report, the workings of a small business known as The chocolate lounge with close reference and in relation to the practice of the business to academic terms will be analysed. Exploring in turn, the start-up, finance, and marketing strategies the business has used to survive over the years. Moreover, the analysis shall assess the branding, networking and issues related to management faced by the small business. In furtherance to the abovementioned, the competition and business cycle of the small business shall be thoroughly scrutinized so as to reach a sound conclusion to this report. 2.0 Analysis of the business: To analyse the business and get the necessary information, initially a small and informal telephonic interview was done with Mr Shafqat Cheema who is the owner and chief manager of

the Chocolate lounge. In that interview brief description of the information required was conveyed with the purpose of research and it was agreed that he will answer the asked questions via e-mail. He was delighted to give information and share his valuable experiences about his small venture. 3.0 About the small business: The Chocolate Lounge is a caf which is situated in Islamabad, the capital city of Pakistan. The venture was started by Mr Shafqat Cheema who is an entrepreneur in Islamabad renowned for his interests in small businesses and turning them into success by efficiently managing them with limited resources. Mr Cheema always had this idea in his mind of opening a unique caf as he was aware that the market of Islamabad lacked places like this one where people could hang out mainly for the purpose of recreation and socializing. So he decided to make a one of a kind combination in Islamabad by amalgamating the idea of this kind of caf with purely chocolate theme, which later on turned out to be a good and profitable idea. However, he waited for the time to be right to start-up this small venture, which will also be discussed in the start-up strategy. The Chocolate Lounge was opened at Blue Area which is a posh location in Islamabad in the year 2010. It is a unique business concept in the sense that it brings a new idea into the market. This chocolate caf aims to target a niche market. It is a highly specialized business, offering its customers a chocolate haven, where they can relax, socialize and fulfil their chocolate dreams, all at the same time. The caf offers a wide range of luxury chocolates, customized chocolates and chocolate delicacies to its customers. Mission statement according to Mr Cheema: Our aim is to provide the customer with the ultimate chocolate experience. A place where the customer can indulge in all the chocolate temptation they desire. We want to stimulate the consumers senses through the smell of fresh cocoa, lighting for a soothing atmosphere and good music. The interior of the caf is such that it aligns with the targeted concept of the ultimate chocolate experience. The theme of the caf is based upon a colour scheme of dark hues such as browns, pinks, maroons and purples. Moreover, ambience of course plays an important role. The caf is divided into three sections. There is a section displaying the luxury chocolate brands such as Lindt and Thorntons chocolates. Another section is dedicated to the customized chocolates. This category is primarily targeting the gift giving market, although it is also expected that people may purchase these items for their own enjoyment as well. The third and final section of the lounge comprises of the caf section or the sitting area. There is a comfortable seating area for the customers, where they can sit, relax and enjoy the wonders of chocolate. There are smartly dressed waiters which help the customers with anything they desire. There is a menu in this section from which customers can order according to their choice.

4.0 Start-up strategy and research: As the economy and market of Pakistan grows, its people are also emerging with it. People have become more conscious, and aware of the outside world. Consumers especially in the upper and upper middle class are gaining awareness and developing sophisticated tastes not only in the fashion, technological, and media industries but are also gaining sophisticated tastes when it comes to food. A successful business not only depends on the right product, marketing, and financing but also on the right time. Talking about a chocolate caf in Islamabad, ten years ago may not have seemed feasible. But as the advent of cafes, coffee shops and sophisticated restaurants had begun all over in Pakistan in recent years and were meeting success, it was believed by Mr Cheema that the market was then ready for a caf which specializes in chocolate. Recently before the start of the venture, Karachi and Lahore had already been introduced to chocolate related cafes. Mr Cheema believed that at that time, when there was no direct competition in the market, Islamabad was the next perfect place for setting up a chocolate caf. According to Mr. Cheemas vision, Customers who love chocolates need a place where they can go enjoy and fulfil their love for chocolate. This is a caf where the customer can experience all types of chocolates combined with a perfect atmosphere. It is a place where the customer can socialize or just sit back and relax. Mr Cheema decided to open a sole proprietorship firm in which he was to be the sole owner of the firm. A sole proprietor is a company or a firm where the owner of the business is an individual person. This is the simplest form of an organization. The business is operated by the individual solely and for the purpose of making profit. Often small businesses start with this type of organizational structure. It is beneficial in the sense that it is simple to set up and there are not many formalities involved in setting up a sole proprietorship. MANAGEMENT: When it comes to the management procedure, two basic theories of management come to the mind i.e.: 1. The Ford theory of management 2. The Mayo theory of management In the Ford theory of management the focus is getting maximum work done. Work is done in a standard assembly line format and employees are treated as a resource rather than people. This theory of management is not wrong in any manner it just gives less regard to the employees. However, due to the assembly line standard work format work is done quicker. Since employees are just a resource here they might end up getting dissatisfied and their morale may become low. This can lead to poor performance in their work.

Then comes the Mayo theory of management which is a softer management theory. Mayo believed in the importance of individual employees rather than the importance of monetary incentives. Mayos theory is based around the idea that employees need to belong to a group. If they are working in standard assembly line formats they should be given breaks during their work. By doing so their performance would increase and they would be more productive and valuable to the firm. Mayo also believed that employees should be treated as people rather than a resource and their needs should be catered to rather than being ignored. If this is done the employees become more loyal to the firm and work better. They start associating with their organization and feel like their contribution is valued. This should be the goal as loyalty in employees is extremely important. After discussing both options Mr Cheema then thought not go to with either of it and go for an hybrid approach He said that In the kitchen he needed a standard assembly line procedure to ensure that his products always remain the same and there is no compromise on the quality standard. However, this does not mean that employees are treated as a resource. According to Mr. Cheema they are valuable assets to the form and should not be treated like manufacturing machines. For this breaks between work hours should be allowed. When asked about the Management functions, Mr Cheema told us that the basic functions and the tasks assigned to them are as under: 1. 2. Controlling: This function is taken care of by the CEO of the firm. He ensures that all operations are being carried out as planned. Leading: This is the most integral role especially in a small enterprise such as The Chocolate Lounge. A good leader is one who motivates his employees, makes them loyal and brings about a passion in them to do the best of their ability. Moreover, he can enhance their potential and bring forward their hidden qualities and talents. Staffing: Human resource is an asset to the firm therefore a good workforce is extremely important Organizing: In every form of work a well-organized structure keeps processes running smoothly. In order to do that the upper management that in this case is considered as the CEO needs to be very firm and competent to make sure that all things are being done on time, books of accounts are being maintained properly and all employees are working according to their assigned tasks. Planning: One of the most important functions is planning. Again in this case the CEO is responsible in planning and forecasting for future but help is also taken from employees as they also work closely with the customers and are able to observe consumer buying patterns and behavior.

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Mr.cheema told us that the management team works integrated with all areas of the business. Being a small setup some main tasks are assigned to the kitchen helpers, chef, accountant and waiters but at the same time a waiter can be asked to deliver the goods if required. Small additional tasks can be added along with the assigned ones. Since the setup is small the management team is trained to be work as one team and such small tasks are not to cause any trouble.

COMPETITORS: Mr. Cheema talking about the competitors said that before opening the chocolate lounge, while he was looking out for a business to conduct, he found out that so such caf exists in the entire market. He also told us that he wanted to open a business which no one else in the area is carrying out. Talking about the competitors of chocolate lounge, Mr. Cheema said, since initials up to the date, there is no such direct competitor as there is no one carrying out a business of the same attire. There are certain cafes such as Gelato and Gloria Jeans that are serving the consumers in an exquisite style yet there isnt any caf that has solely dedicated itself to chocolates only Bibliography: Analoui, F. & Karami, A. (2003), Strategic Management in Small and Medium Enterprises. London: Thomson. Barrow, C. (1998), The Essence of Small Business. 2nd ed. Hertfordshire: Prentice Hall. Bolton Committee (1971), Report of the Committee of Enquiry of Small Firms In Carter, S. & Jones-Evans, D. (2006). Enterprise and Small Business: Principles, Practice and Policy. 2nd ed. Essex: Pearson Education. Council of Europe (1994), The Promotion of Small and Medium-sized Enterprises in Europe. pp. 98. Available at; http://books.google.com/books?id=Q12riYnVk00C&pg=PA9&dq=small+and+medium+enterprises +can+be+defined&hl=en&ei=5_C2Tf2RJc58gPtn_xN&sa=X&oi=book_result&ct=result&resnum=7&sqi=2&ved=0CGIQ6AEwBg#v=onepage &q=small%20and%20medium%20enterprises%20can%20be%20defined&f=false [Accessed 20th April 2012]