Factors Affecting Business Resource Selection, CRM Pros and Cons, Transnational Development, Break Even Analysis, Financial Statements, and Legislations

This article covers various topics related to business management such as factors affecting business resource selection, CRM pros and cons, transnational development, break even analysis, financial statements, and legislations. It explains the importance of customer relations, marketing, location, leaders, and external factors in business resource selection. It also discusses the three main areas of CRM, ways in which businesses can expand internationally, and the importance of financial statements. Additionally, it explains the basic structure of the current legal system.

Unit 29- Questions

TABLE OF CONTENT
MAIN BODY..................................................................................................................................1
1. Factors affecting the business needs for choosing the right resources....................................1
2. Customer relationship management and Pros & Cons of customer relationship management
main areas....................................................................................................................................2
3. Defining Transnational Development and ways in which the business can expand
internationally..............................................................................................................................3
4. Break even analysis and its application on business...............................................................5
5. Defining financial statements..................................................................................................6
6. Legislations..............................................................................................................................7
REFERENCES................................................................................................................................8

MAIN BODY
1. Factors affecting the business needs for choosing the right resources
The factors which can affect the needs for choosing the right resources in a small business
for reaching their objectives are,
Customer Relations:
The focus of the small business is to develop strong relations with its customers. For this
the business needs to look for resources which can help them develop good relationship with the
customers. Hiring employees with strong communicational skills and training them to meet the
customer needs can be good way to reach the business objective. Improved customer relations
will help the business to gain loyalty from the customers. This will ensure the organization about
a certain amount of revenue (Hawkins, Gravier and Randall, 2018).
Marketing:
Even for a small business it is very important to have a marketing plan for ensuring that
its products and services can reach to the target segment. The kind of marketing plan which is
implemented by the small business effects the type of resources which the business requires. It
can be said that with the help of proper marketing the business is able to boosts its sales which is
the primary objective of a small business. It is very essential for the business to gain a
competitive advantage against its competitors.
External factors:
These are the factors which the business is not able to manage. These factors affect the
decision of the small business while choosing the resources. These factors are cultural, political
and economical of the country in which the business is operating. Selecting the right resource
due to the changes in the external factors have the potential of triggering the growth of the
business which is found along the continuum from the attributes which is possessed by the
individuals for complexing the interrelations which is considered to affect the cultural, political
and economic conditions.
Location:
Location at which the small business is operating also effects the types of resources the
business has to utilize for reaching its objectives. The location effects the number of customers,
supplies and also the operational costs of the business. With the help of the right the business is
able to adapt to the to the local variabilities.
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Leaders:
The leaders of the business are the one’s who take most of the decisions for the business.
They are an important factor which changes the choice of the business in the selection of the
right resources for their business. Proper leadership has the ability to lead the small business
towards its objectives with the help of desired resources.
2. Customer relationship management and Pros & Cons of customer relationship management
main areas
Customer relationship management also abbreviated as CRM is a technology which is used
for the management of the all the company’s relationships and the interrelations with its
customers and also the potential customers. This system helps an organization to stay connected
to the customers while improving their profitability and keep it a streamline process (Maryani
and Riana, 2017). Company modify their business operations with CRM for ensuring that the
customers are served with the best possible way. Following are three main areas of CRM along
with their pros and cons,
Marketing Automation:
This system of CRM deals with the tasks such as the customer segmentation, profiling,
email marketing and data cleaning which are all part of the marketing for an organization. This
area of CRM has created marketing a automated process which helps the business systemise
many of these tasks and enable the marketing agents to invest their time and resources in much
more meaningful workforce.
Advantages Disadvantages
It helps the business in increasing the
efficiency of the organization.
This system which is used for automation of
marketing is very costly.
Marketing automation enhances the business
ability to generate more and better qualified
potential customers.
It has the scope of developing into a process
which annoys the customers with over
messaging.
This also helps in the preparation of a
multichannel view of prospect customers.
This can create a demoralizing effect on the
brand due to automation.
Sales Force Automation:
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The CRM system allow the business to also automate the sales force which is the
automation of the completed same system which can push marketing team to push the business
successfully towards the warmed-up leads and straight through to the sales team.
Advantages Disadvantages
It helps in the forecasting from the profitability
of each prospect.
This can create the displacement of the
workers and also be concerning to the
organizational security.
It helps the opportunity to track the most
prospects of the various statues through the
closed.
This is very costly for the organization.
Customer Service Solutions:
This area of CRM is the one in which the business utilizes the CRM to gain a deeper
understanding of the customers needs and expectations (Kebede,and Tegegne, 2018). This help
the business to then improve and streamline the customers expectations and achieve satisfaction.
Advantages Disadvantages
It reduces the significant errors which can be
caused by humans and also increases
customers loyalty.
This method fails in offering the customers
extra services such as refreshments.
It main effectiveness can be seen in the
reduction of the time which is take for the
company to respond to the customers.
Miscommunication between the customers can
affect the relations of the company and
customer.
3. Defining Transnational Development and ways in which the business can expand
internationally
Transnational development also considered as the international development or global
development is the worldwide concept which is used for denoting the ide which is the social
concept that effects the offering of the business which is very effective in the development of the
human in the international scale. It is the concept which denotes that the idea that the society and
countries have the potential of different levels of economic and human development on an
international scale. There are three ways in which the business can expand itself internationally,
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Internet:
Internet is the interconnection of different connection altogether with the help of
technology. It has definitely helped the business in the expanding its business in the foreign
markets. It is the perspective of the international trade which shows the evidence that the internet
is a vehicle force which effects the promotion of the business in the international market. Some
benefits of using internet for global expansion are,
 It reduces the trade restrictions which are otherwise caused due to the international rules
and regulations.
 This is less costly method of expanding the business as it requires less capital.
 The effects of the inflation in the other countries is much less than direct investment in a
international market.
Drawbacks of using internet for global expansion are,
 The competition on the internet for international market is very high as the business is
global.
 There is risk of loss of data and other essential information.
 The changes of the exchange rates can have negative impact on the business over
internet.
Joint Venture:
This sort of global expansion of the business is when two or more business based in two
or more countries form a partnership which influences the business in the exploring their
international trade. Joining venture with a company from different country reduces the
responsibility the business has to take. The benefits of international joint venture are,
 The partner in the joint venture provides the business immediate benefit to the local
customers base and helps the business in the distribution capabilities for reaching the
experienced and knowledge local employees.
 The leverage the partner’s brand for gaining the market credibility and competing on
even footing with local competitors with the partner which might also be providing the
increased capabilities and productivity (Pros and Cons of International Joint Ventures.
2017).
 It is much less risky than investing into the international market directly.
Drawbacks of international joint venture are,
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 There is not always clarity between the investments which are made in the joint venture.
 Not all partner’s fit properly with the international joint venture.
 The strategy and objectives of the partners in the joint venture can be different which can
affect the international expansion.
Franchise:
In international business franchising is the practice which is used by the business to use
another firm as the success model. In this the organization provides goods and services to
another business in the international market and that organization uses them for productivity
(Gabor and Brooks, 2017). The business is run with suppliers’ trademark and goods. Benefits of
franchisee are,
 Some franchisee provides offer of loans and other forms of assistance to franchisees.
 It is a safe option as the franchised firm has more experience in the international market.
Drawbacks of franchisee are,
 It is also an expensive initial investment for the organization to consider international
investment.
 After making the contract the franchisor cannot renew it whether the business performs
well or not.
4. Break even analysis and its application on business
Break even analysis shows how many units can the business make for the production of the
goods which can be sold for fixed and variable cost of production. This is the point which
measures the margin of safety and is broadly used for stack and trading in the corporate
budgeting for the products and services (Hatch and et.al., 2017). The chosen organization is
Tesco which is a multinational retailer based in UK which deals with different types of products
including, food, home and clothes. This organization can use the break-even analysis for the
calculation of the following in their budget. Fixed costs are those cost which stay the same no
matter how much the business sells. This organization plans out its fixed cost in the beginning of
the organization with the help of break-even analysis. Variable cost is also based on the total
sales of the business which can also include the additional labour from independent contractors,
materials and payment processing fees. The business uses this analysis for fixing the variables
cost as per their the cost they want to incur in their operations (Sintha, 2020). Average price is
the average amount you will charge for your products and services. This helps the organization
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in the identification of the point of profitability. It is what the company needs to focus on
providing the profitability. It also provides the organization details about which products of the
organization produce the most profit out of all the products of the organization. This analysation
is very important for the organization to ensure the price of the products and services. It provides
the business best information for their implementation of the best strategy towards moving in
the direction of success. Tesco with the help of the break even analysis is able to understand how
much volume of raw materials it needs to purchase in order to sell efficiently with the least cost.
5. Defining financial statements
Financial statements are the formal records which are kept by organization for their financial
activities and position of the business. A financial statement is a financial report which shows the
financial performance of the organization and helps it in keeping knowledge of the transactions.
The balance sheet and income statement are the most use financial statements (Chen and et.al.,.
2019). Balance sheets is the financial statement which shows the financial position of the
organization. Income statement is the financial statement which calculates the profit of the
organization in the year for organization with the help of its income and expenditure.
Balance sheet example for an organization is as follows,
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This balance sheet of the organization explains the financial position of the organization.
For explaining the financial position, it talks about the current assets of the company and helps
the organization’s assets. Starting of with the current assets of the organization which are the
assets of the company that are expected to be sold or used the result of the standard business
operations over the next year (Rahim and et.al., 2020). It includes the cash, account receivable
stock inventory and marketable securities. Current assets can be defined as all the assets of a
company that are expected to be conveniently sold, consumed, used, or exhausted through
standard business operations within one financial year. Current assets would include cash, cash
equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and
other liquid assets which are important to businesses because they can be used to fund day-to-
day business operations and to pay for the ongoing operating expenses. Current assets may also
be called current accounts. Current liabilities are a company's short-term financial obligations
that are due within one year or within a normal operating cycle. An operating cycle, also referred
to as the cash conversion cycle, is the time it takes a company to purchase inventory and convert
it to cash from sales. Current liabilities include accounts payable, short-term debt, dividends, and
notes payable as well as income taxes owed. Fixed assets are the long-term assets that a company
has purchased and is using for the production of its goods and services. Fixed assets are a non-
current asset which meaning the assets have a useful life of more than one financial year. Fixed
assets include property, plant, and equipment. Fixed assets are also referred to as tangible assets,
meaning they're physical assets. Fixed tangible assets can be depreciated over time to reduce the
recorded cost of the asset. Most tangible assets, such as buildings, machinery, and equipment,
can be depreciated. However, land cannot be depreciated because it cannot be depleted over time
unless it is land containing natural resources
6. Legislations
Legislation can be defined as the basic structure of the current legal system. Legislation is
based on the statutes which are enacted and imposed by the Legislature. A statute can be defined
as the formal act of the legislature which is presented in the written form which is used by the
legislature to express and declare their will (Matamanda and et.al., 2018). In other terms, a
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statute can be said to be the written document which is used as a presentation of laws to be
declared or a command which must be obeyed or as a prohibition forbidding a course of conduct
or to declare an act in particular. Legislation can be said a sincere effort for the search for the
best governing rules which can be used for the welfare of the society. Some of the legislation
which are in India are as follows:
Employment act 1996:
This is the act which consolidates the enactments which are related to employment rights
and this act also for consolidating eh enactments related to the employment rights of the
organization. It cover various areas such the unfair dismissal, redundancy payments, protection
of wages, zero hour contracts, Sunday working, suspension from work, flexible working and
termination of employment.
DATA protection act 1998:
This act of UK is designed for the protection of data and storage of the that data in the
computers or in organized paper filing system. This legislation prohibits the company from any
kind of misuse of that data.
Company Law, 2006:
This is considered as the main law which is aims to simplifies the laws of modernization
towards the codifying, directors duties, for a grand of improved rights to shareholders and also
simplifying the administrative burden carried by the UK companies.
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REFERENCES
Books and Journals
Avvakumova, I.V., Bykanova, O.A. and Akhmadeev, R.G., 2020. IMPRОVEMENT OF
SMALL BUSINESS OWNERS TAXATION.
Chen, Y.J., and et.al.,. 2019. Fraud detection for financial statements of business groups.
International Journal of Accounting Information Systems. 32, pp.1-23.
Forsyth, T., 2018. Encyclopedia of international development. Routledge.
Gabor, D. and Brooks, S., 2017. The digital revolution in financial inclusion: international
development in the fintech era. New political economy. 22(4). pp.423-436.
Hatch, M.D., and et.al., 2017. The cost effectiveness of vancomycin for preventing infections
after shoulder arthroplasty: a break-even analysis. Journal of shoulder and elbow surgery.
26(3). pp.472-477.
Hawkins, T., Gravier, M. and Randall, W.S., 2018. Socio-economic sourcing: benefits of small
business set-asides in public procurement. Journal of Public Procurement.
Kebede, A.M. and Tegegne, Z.L., 2018. The effect of customer relationship management on
bank performance: In context of commercial banks in Amhara Region, Ethiopia. Cogent
Business & Management. 5(1). p.1499183.
Maryani, I. and Riana, D., 2017, August. Clustering and profiling of customers using RFM for
customer relationship management recommendations. In 2017 5th International Conference
on Cyber and IT Service Management (CITSM) (pp. 1-6). IEEE.
Matamanda, A.R., and et.al., 2018. Harare's deteriorating wetlands: why sound policies and
legislations are not enough. Case Studies in the Environment. 2.
Rahim, S., and et.al., 2020, October. Disclosure of Local Government Financial Statements in
South Sulawesi. In Brawijaya International Conference on Multidisciplinary Sciences and
Technology (BICMST 2020) (pp. 1-6). Atlantis Press.
Sintha, L., 2020. Importance of Break-Even Analysis for the Micro, Small and Medium
Enterprises. International Journal of Research-Granthaalayah, 8(6).
Online
Pros and Cons of International Joint Ventures. 2017. [Online]. Available Through:<
https://www.globaltrademag.com/pros-cons-international-joint-ventures/>.
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