Factors Affecting Small Business Goals and Customer Relationship Management

This report discusses the factors that affect small businesses in achieving their goals, including effective business ideas, funding, competition analysis, legal criteria, and customer relationship management. It also covers transnational development, break even analysis, financial statements, and legislation laws affecting small businesses. The report provides expert guidance for CafePod Coffee Co. and is relevant for business management courses.

UNIT 29- QUESTIONS
TABLE OF CONTENTS
..........................................................................................................................................................1
INTRODUCTION..........................................................................................................................2
MAIN BODY..................................................................................................................................3
Factors that affect the small business to achieve goals...............................................................3
Customer relationship management............................................................................................4
Transnational development and the ways in which business can expand internationally..........5
Break even analysis and the way to applied in the business.......................................................7
Financial statements for the business..........................................................................................7
Legislation laws which affect the small business.....................................................................11

CONCLUSION............................................................................................................................11
REFERENCES.............................................................................................................................12
INTRODUCTION
Business management is the tool which is mainly focus on planning, strategies and to
arrange all the business activities for the organisation to achieve the desired goals and objectives
(Ortiz-Villajos and Sotoca, 2018). It is the strategic planning tool which is implemented by the
organisation to effectively run their business. CafePod Coffee Co. is a Company which is located
in Portsmouth, United Kingdom. Company is offering varieties in their main coffee product. This

report will cover the factors that small business can take to achieve goals, also includes the
importance of the factor that are essential to business, it also include the customer relationship
management and importance or drawback of its main area. It further includes the transnational
development in which business can expand internationally, break even analysis. It also explains
about the financial statement for the business and last includes the legislation laws which affect
the small business.
MAIN BODY
Factors that affect the small business to achieve goals
For every business it is important to begin with planning and strategies so that it will be
effectively implemented to achieve the certain goals and objectives of the organisation. Goals
must be defined as smart goals so that in process of achieving this can give good results. First
every businesses need to set a clear image of the goal so that it give them a positivity to start a
business they should include to set the vision and mission, complete research and planning to
implement according with(Tur-Porcar, Roig-Tierno and Llorca Mestre, 2018).
These factors can be followed as-
Effective Business Idea:
It is the primary or important criteria which play an important role to begin with any
business project the strong and superlative business idea is necessary as it give the analysis
of everything which is required in the business. An effective business idea can help to
search the specific skills and knowledge which is required in decision-making process to
achieve the goals. Therefore, CafePod coffee co. need to develop a strong business idea to
accomplish their business goals.
Funding or budgeting:
After defining the business idea the next important step is funding and budgeting it is very
important for the execution of every business plan. Therefore company need to find the
sources through which they can fund their business plan. It is important to make budget
plan for the good finance maintaining of the business. Therefore, CafePod coffee co need
to develop a good business idea to take support of the stakeholder who can raise fund in
their business plan.

Competition analysis:
It is the important factor which organisation need to consider analysis of the competition in the
market can give the development of different strategies which can be beneficial for the company.
Therefore this factor will help to take better decision or also enable the company to make
effective plans (Muyassarhon, 2018).
Business plan:
Business plan is the key to success no business can grow without a effective business plan.
As business plan gives the direction in which desire business action has been taken to
achieve the goals.
Legal criteria:
For every business it is mandatory to complete all the legal documentation to prevent from
any legal issues. As services and products require some legal documents therefore
cafePode coffee co need to complete all legal activities before starting business.
Customer relationship management
Customer relationship management (CRM) is a technology which is used to manage all the
interaction and communication between the company and their customers. It is used by the
organisation to build strong relationship with their potential or new customers. This
technology helps the company to stay connected with their customer to make improvement
in their product and services to deliver the best to their customer to achieve revenue goals.
Main areas of the customer relationship management are as follows:
Marketing Automation:
Marketing automation technology is used for the effective marketing process. This process
enables the organisation to automate their marketing procedures for the great operational
efficiency to produce desire result. Main advantage of this technology is that it is time
saving process; it helps to improve the customer relation, provide good scalability it will
also help to recover the lost revenues. So the cafePode coffee can implement this to
improve their relation with customer. Disadvantage of this technology is that it is
expensive it required high capital expenditure to implement this technology also its
maintenance also cause high cost.
Workflow automation:

It is the approach in which number of processes executes simultaneously as for the management
it needed a well organized cost cutting also requires a streamlining of every process (de Resende
and et.al 2018). Main advantage of this technology is that it prevents the repetition of the task,
therefore it decrease the errors in work also which helps to increase the productivity and can able
to carry out multiple task easily. The disadvantage of this technology is that it needed
maintenance for good results which can take more time, also it cause the negative environment in
workplace as work is done by the software so there will be no communication between the
workers.
Business reporting:
Business reporting should be informative and in precise manner so that company can show it to
their stakeholder so that they can invest in their project. Customer care reports assist the
company to see their work process and operations, which allow the executive of the company to
know their position therefore CRM gives the better business report which plays a major role in
the success of the company. The main advantage of this is that it allow the company to look into
their internal process to make improvement in their operations to achieve the goals (Bahri, St-
Pierre and Sakka, 2017). Disadvantage of business report as it is time consuming or also there
are some probabilities that this report not need to be right every time.
Transnational development and the ways in which business can expand internationally
Transnational development is define as developing the countries as emerging of the markets,
rising of the opportunities therefore rise of globalization is creating opportunities for the
international market to grow their networks to strengthen their market. Many organisations grow
exponentially by expanding their business in international market. For that purpose they need to
complete all the research so that it will be easier for them to establish their company in
international market (Moktadir and et.al 2020).
Internet:
Internet is the better way for the company to increase their brand value in international
market. Rise of digital technology enables the company to show their products and services
through various digital platforms. Therefore cafePod coffee can also take use of this
method to increase the customer base for their company.
Benefit of internet:
Rapid delivery of the product and services
Provide global access for 24/7
Provide great opportunities to develop revenues
Drawback of internet:

Main drawback is that it gives the chance to the hackers who can attack the network and
can take the useful information.
Encourage the cyber crimes
It create distraction for the workers of the company while using digital media applications
which affects their productivity (Pelekh, Khocha and Holovchak, 2020).
Joint ventures:
Joint venture is a temporary agreement between the two or more company. It can be
understood as a short time partnership for specific reason. It will be beneficial for the
company as if company wants to go international they can collaborate with the other
country’s company to establish their after that they can share the profit.
Benefit of Joint venture:
Main benefit is that it is temporary if company want to separate then they can able to do it
later.
Both companies are responsible for risk and profit.
This type of agreement is more flexible.
Drawback of joint venture:
There will be clash in culture can be seen as both the companies operate in their culture.
Poor communication can be seen in this.
It limits the external opportunities (Stoyanova and Angelova, 2018).
Franchise:
Franchise is another way for the organisation to go internationally. It is the type of license
in which business have the right to take the use of name, products and services or the
business model of the triumphant company. In which the franchisor is the real organisation
that allow the franchise license to other company which can be called as franchisee.
Benefit of franchise:
Good Brand recognition
There will be low cost on the supplies.
It consists of lower risk.
Therefore it gives the better opportunity that will use by the company to expand
internationally.

Drawback of franchise:
In which company need to make high investment at initial point.
Organisation need to share their financial information with other corporate.
In which the chance of creativity is low.
Break even analysis and the way to applied in the business
Break even analysis can be explains as process where the cost of the product and total
revenue are in equilibrium state. It describe about the total number of sale for the product
and services to calculate the production’s fixed and variable cost. Its main components are
the fixed cost which defines as changes in market can’t affect the cost, and variable cost
can define as a fluctuation in the cost. It is beneficial to know or examine the business risk
break even analysis helps to achieve this; it is the important tool for the small business or
entrepreneur for the analysis of their business. Break even point can be calculated as
Break even point= fixed cost / (average price-variable cost)
It is very beneficial for the CafePode coffee to estimate their profitability point. As if their
company is performing well then there are chances when they loss revenues when the
competition increases that is why it is important to know about the profitability point
which can provide by the break even analysis (Khan and et.al 2020).
It allows the CafePode coffee to ensure that they are effectively applying the
pricing for their product and services. This method will help them to pricing their product
accordingly so that it will increase their sale and make them able to earn more revenues.
This method provides the complete analysis to the company so that they can evaluate a
effective strategy for their organisation. With the use of this company is able to make the
strategy for the future. As for the company if their profitability point is defined by the
particular product than the break even point for every product gives a particular timeline to
the company which can enable them to processed a better financial strategy that is suitable
for their costs and revenues. This method can be apply when there is expansion of the
business as it gives the reality check so that company can prepare their products and
services accordingly.

Financial statements for the business
Financial statements are the written statement which is done by the organisation to
summarize their annual business finance statements. This consists of the balanced sheet,
income or cash flow statements which are prepared by the organisation to ensure the
consistency of report at each level.
Balanced sheet:
Balance sheet is a financial statement which gives the clear image of liabilities, assets and
stakeholder equity in a time. This balanced sheet sometimes become complex so that
company’s accountant need to every record are properly recorded.
Figure 1balanced sheet
Income statement:
Income statement involves the revenues and expenses it is the complete summary of the
company’s profit and losses during their business time. This financial statement can be
prepared monthly or annually. This financial statement shows the company’s performance
as how well they are doing over a certain period.

Figure 2 Income statement
Cash flow statement:
It is the final financial statement which generally shows the changes in cash flow of the
entity during a period. It can be seen as an intermediate stage between the balanced sheet
and income statement as it shows how the organisational asset or money moved in and
moved out.

Figure 3Cash flow statement
Auditing evidence is the important information which is gathered by the auditor to
ensure the accuracy of the financial statement of the organisation. This evidence can be a
bank account details, payrolls, bank statements of the company therefore these decides
the company’s annual financial statement. Therefore, financial statements are very
important for the business as it gives the clear image of company’s position which
enables them to take good business decisions (Zhang and Dai, 2019).
Financial statement shows the enormous information as organisational revenues, profitability
ratio, debt load etc. which helps the company to take specific decisions to run their business
smoothly. To evaluate a successful business CafePode coffee need to manage all their
sustainable financial statement for the successful running of their business.

Legislation laws which affect the small business
Legislation term can be defined as a set of rules which is implemented by the government
which is mandatory for the company to follow to secure from any legal activities. It is the
procedure of enrolling, enacting the laws by the legislature. These laws affect the business
of the organisation as they must have to pay the taxes to protect from any legal activities.
Small businesses have to pay the estimated, employee, excise and income taxes so that
they can easily or smoothly run their business.
Employment act 1996:
This law is made for the right protection of the employee as this law includes the unfair
treatment, redundancy payment, working hours and the employment termination. The real
provision of the act is to provide employment agreement within starting period of the job.
This rule includes the title of job working hours and time frame which is agreed by the
both parties (Kim, and Wang, 2019).Therefore company need to implement this rule
while recruiting candidate.
Data protection act 1998:
This law is designed to protect the data which is stored on the computer systems. Through
this law company can stored or manage their customer’s data or keep it private so that their
confidentiality does not affect.
Company law 2006:
The main purpose of this law is to simplify the law of company it includes all the aspects
which enables the company as how they manage, or run their business. It also improves the
rights for the shareholders or to simplify the process of administration. It gives the rights to
the stakeholders as they can sue the company any time if any fraud is found in the
business.
Therefore these are the laws which CafePode coffee needs to implement in their business
so that they can effectively manage or run their business. It will help them to evaluate
their business strategies to achieve the goals of success (Prasoona and Reddy, 2021).
CONCLUSION
From the above report it is concluded that every organisation need to implement business
strategies and tools for the successful evaluation of their business. This report described about
the factors which are required by the small business to achieve their goals of success, also
evaluated the factors. It includes the customer relationship management and the advantage or

disadvantage of its main area. Report further includes the transnational development and the
ways in which business could take step to expand internationally. It also explained about the
break even analysis which could applied by the company and it lastly concluded with the
financial statements and legislative laws applied by the organisation.
REFERENCES
Books and Journals
Bahri, M., St-Pierre, J. and Sakka, O., 2017. Performance measurement and management for
manufacturing SMEs: a financial statement-based system. Measuring Business Excellence.
de Resende, L.M.M. and et.al 2018. Critical success factors in coopetition: Evidence on a
business network. Industrial Marketing Management, 68, pp.177-187.
Khan, R.U. and et.al 2020. The Impact of Customer Relationship Management and Company
Reputation on Customer Loyalty: The Mediating Role of Customer Satisfaction. Journal of
Relationship Marketing, pp.1-27.
Kim, H.G. and Wang, Z., 2019. Defining and measuring social customer-relationship
management (CRM) capabilities. Journal of Marketing Analytics. 7(1). pp.40-50.
Moktadir, M.A. and et.al 2020. Critical success factors for a circular economy: Implications for
business strategy and the environment. Business strategy and the environment 29(8). pp.3611-
3635.
Muyassarhon, U., 2018. The concept of development of management of small business based on
institutional reforms. Бюллетень науки и практики. 4(4).
Ortiz-Villajos, J.M. and Sotoca, S., 2018. Innovation and business survival: A long-term
approach. Research policy. 47(8)., pp.1418-1436.
Pelekh, U., Khocha, N. and Holovchak, H., 2020. Financial statements as a management
tool. Management Science Letters. 10(1). pp.197-208.
Prasoona, J. and Reddy, R.G., 2021. Analysis of financial statements. Biotica Research
Today. 3(5). pp.373-375.

Stoyanova, T. and Angelova, M., 2018, June. Impact of the internal factors on the
competitiveness of business organizations. In 2018 International Conference on High
Technology for Sustainable Development (HiTech) (pp. 1-3). IEEE.
Tur-Porcar, A., Roig-Tierno, N. and Llorca Mestre, A., 2018. Factors affecting entrepreneurship
and business sustainability. Sustainability. 10(2). p.452.
Zhang, Z. and Dai, Y., 2019. Combination classification method for customer relationship
management. Asia Pacific Journal of Marketing and Logistics.
Online
Break Even Analysis, 2021. [online]. Accessed through<
https://corporatefinanceinstitute.com/resources/knowledge/modeling/break-even-analysis/ >.