Factors to Consider While Choosing Resources for Business Success

This report discusses factors that small businesses should consider while choosing resources to attain objectives. It also covers customer relationship management, transactional development, break-even analysis, financial statements, and legislation in business. The report evaluates the importance of innovative business ideas, expertise, market demand, capital and finance, and competition. It also explains the concept of transactional development and how businesses can expand internationally. Additionally, it covers break-even analysis and financial statements of the company and how companies use them to perform better. Finally, it presents legislation and how it is used in business.

Unit 29

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Factors which business should have consider while choosing resources to attain objectives....1
Presenting Customer relationship management...........................................................................2
Concept of Transactional development and how business can expand internationally...............3
Break even analysis and how business can apply this.................................................................5
financial statements and interpreting financial statements of the company................................5
Presenting legislation and how it is used in business..................................................................7
CONCLUSION................................................................................................................................9
REFERENCE.................................................................................................................................10

INTRODUCTION
This report has discussed about marks and Spenser which is the multinational company which
deals with clothing, footwear, accessories etc. it is famous brand and the global brand. This
report will evaluate factors which small business should have consider when choosing right
resources with importance. It will analyse customer relationship management and transactional
development and ways through which business can go for international expansion. It will also
discuss break even analysis and financial statements of the company and how company uses it to
perform better and it will also shed light on legislation of the company.
MAIN BODY
Factors which business should have consider while choosing resources to attain objectives
Business ideas
every business is based on some idea and if business want to attain success then it is important to
have innovative idea. A great business idea can help company in carrying their business for long
run. Also it solves many problems and fulfil customer demands (Erceg, Bilos and Kelic, 2021).
It is important to have innovative business ideas because customers are attracted towards
innovative products only.
Expertise or knowledge-
before selecting any resources which can be human resource or any other resource it is important
to check their expertise. As employees which have knowledge and expertise will help company
in achieving their goals and objectives as they have special skills. For hiring expert workers
company should have undergo proper planning.
Demand or market-
after starting the business it is important to know the demand of the products or services.
Company can conduct market survey to decide that which product range must be choose so that
company can achieve its objectives. Business should have knowledge of the market, buying
habit of the customers etc.
capital and finance-
before choosing any resources it is essential that small business should have review their capital
and finance. No business can work without cash or funds. It is very important for business to
plan for their finance. It is very important for the business to consider the financing pattern. As
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there are various small business which use their personal saving as their capital to the business.
Company can also borrow funds from financial institutions or banks in the form of short term or
long term loan (Tyre, Han and Newton, 2017).
Competition-
small business should have evaluate their competitors before they should find out resources.
Company can use the resources which there competitors are using so that they can attain
competitive advantage. It will help organisation in increasing their market share and customer
base. Analyse your competition properly and find out that how they are positioning them before
choosing resources. Evaluating competitors will help company to beat their competitors and
fulfil their objectives of getting higher sales.
Presenting Customer relationship management
The customer relationship management is a combination of strategies and technology that
company use in order to collect the data of the targeted customer. This goal of this tools is to
provide the customer with the great quality of services as well as increase the growth of
the firm by increasing the consumer retention. Moreover, this tools help the organization in
collecting the data from the various platform (Tien and et.al., 2021). Such as social media,
official website, live chat direct mailing as well as collecting the feedback through survey.
Furthermore, this method helps the organization in identifying the needs and demands
of the targets audience as well as the market. That contributes in increasing the overall
sales of the firm as build the healthy relation with them by satisfying their needs. Along
with this, it also helps the customer care staff with consumer personnel details as well as
purchase history or the issue that is faced by them. This contribute in increasing the
growth of the firm by solving the problems of the customer. Moreover, the
components of CRM technology collects the customer data in a software (Juanamasta and
et.al., 2019). That allows the organization in easily access and manage the overall
information of the customer history. Along with this, over the time it has been developing
the additional function such as interacting with the customer on various platform such as
social media and other platforms.
In addition to this, the other feature is automating various workflow such as it
benefit the manager. Such as task details weather it is achieved in the limited frame of time
or not also it allows to manager to evaluate the task performance on the basis of
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information. Additionally, it allows the company in increasing the sales force by
interacting with the customer and solving their problems build the healthy relation
with them (Harrigan and et.al., 2020). Moreover, it also benefit the organization in
making the marketing strategy by collecting the data of the geographical data. That
contributes in increasing the sales of the firm in the competitive market. Furthermore, it
allows the organization in gathering the data of the employee’s information related task,
performance review. That benefits the human resources department to identify the
issues faced by the employees.
Advantage of CRM:
 This tool benefit the organization in collecting the information of the customer past
purchase as well as interaction history. That allow customer care service
department in finding an appropriate solution to the problems that has being
faced by them (Guha, Harrigan and Soutar, 2018). Along with this, it leads in
building the strong relation with them as well as increase the brand loyalty.
 The data that is collected by their tools helps in knowing the market trends as well
as taste and preference of customer. That contributes in making the goods and
services according to them as well as increase the sales.
Disadvantage
 The implementation of this tool is very costly as well as affect the operational cost
of the frim. The organization has to take software subscription and pay the fees
that cannot be afford by small organization (Cruz-Jesus, Pinheiro and Oliveira, 2019).
Along with this company has invest in training programmes so that employees
can enhance the technical skill.
Concept of Transactional development and how business can expand internationally
Transactional development -
transactional model of development means explaining the development of the negative and
positive outcomes. It is the manner of delivering the deals. Basically it denotes shifting in the
mindset and not focusing on the negotiation of various documents. Transaction should be think
about data or information which can be seen in various ways.
Methods through which business can expand internationally
trade agreements-
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trade agreements is refers to as treaty which regulate taxes, duties, tariffs which is imposed by
the country over the imports and exports (Rosado-Serrano, Paul and Dikova, 2018). Basically it
is the contract which is made between two countries so that access of the market can be done.
This option motivates local companies to come up with innovation.
Pros-
it is helpful in increasing the economies growth. It changes the business climate and make it
dynamic. In the absence of trade agreements, countries often protect their local business.
Government withdraw subsidies which they provide to local business.
Cons-
it helps in increasing job outsourcing when government will reduce tariffs then it motivate other
business to expand in other countries and imports will also increases.
Licensing-
it is the contract which takes place between two parties which is called as the licensor or the
licensee (Gurnick and Lagarias, 2021). Under which licensor gives the right to use their
company name, patents, technology, trademarks etc to the licensee. Licensee can use intellectual
property of the licensor.
Pros-
it helps licensor to take advantage of the distribution network of the licensee and they can able to
enter foreign markets easily. Licensor can generate more revenue by charging royalty over using
the brand name of the company.
Cons-
licensor can loss its control over the intellectual property and licensee can copy business of the
licensor and licensor can reduce their market share (Morales Díaz and Zamora Ramírez, 2018).
Licensee solely responsible for the selling, production, marketing etc.
joint ventures-
it means when two or more companies come together willing and agree to work together. It is
the commercial agreement between the companies in order to achieve the specific organisational
objectives or goals.
Pros-
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it helps both companies to become strong together as it enables both companies to use assets of
each other (Akin and Akin, 2018). It have limited timeframe and it is simple to dissolve and
hence business can dissolve easily.
Cons-
there are changes that companies can have culture clashes. When two companies come together
to work then often it is notices various clashes in processes, approaches etc. problem can arise in
decision making process when any one company disagree.
Break even analysis and how business can apply this.
Break-Even Analysis-
this analysis is used for calculating and also checking the margin of safety. In simple words it is
the analysis which tells that how much sales are required to pay for cost of running the business.
If company has reached to the break even point then it means that they are at no profit no loss
situation. It determines that what amount of sales are needed so that total fixed costs of the
company can get covered. It will give insight to know the selling capabilities to the business.
Break even analysis is the tool which must be used by every business while doing the financial
planning. It is helpful in knowing the profitability of the company. If company is expanding
their business then should have evaluate the break even analysis so that to find out that how long
business will take to attain profits (Calabrò, 2017). In order to make any changes in the business
then business come across various possibilities and break even analysis helps in narrowing down
the option.
Calculation of break even point
fixed cost- $ 70000
variable cost- $ 50
selling price per unit- $ 110
contribution per unit= 110-50 = 60
break even point= fixed cost/contribution per unit
break even= 70000/60 = 1167.
financial statements and interpreting financial statements of the company.
Financial statements are the financial reports which consists information of the financial
activities and also shows the position of the company. Example of financial statements are
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income statements, balance sheet, profit and loss statements etc. basically investor can find out
company's financial position by checking their financial statements.
Financial statements helps business in attaining growth and success. It helps both internal and
external stakeholders of the company in the decision making process (Tompa and et.al., 2021).
By checking financial statements, managers can male strategies and by checking financial
statements, investors can take their investment decisions. Timely analysis of financial analysis
helps in the growth of the firm.
From the above table it can be interpreted that company is doing quite well. Although after
covid 19 they has to face major losses but they have came with various strategies so that they
can generate more profits or higher revenue (Kuter and et.al., 2017). It is important that
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company should have increase their current assets so that they can pay for their current
liabilities easily.
Presenting legislation and how it is used in business
Legislation
Legislation is a set of laws that is passed by the Parliament. It not only involves
legislative body but also the executives. Its objective is to alter the policies relating to public and
health related issues into legally binding regulations. These laws are enacted by the Parliament
and are binding on all the citizens of the country to follow the provisions of the law(Hyvönen,
et.al, 2020). There are two main types of legislation in UK :Primary and Secondary legislation.
Primary legislation includes the statutes and secondary legislation includes the rules, orders and
regulations of the country.
Types of Legislation that affects the small business are:
Employment act 1996:It is an act to strengthen the rights of the employer and employee in the
organizations. The act assures that the rights of both employer and employee are protected. It is
about taking the measures to protect against the ill-treatment experienced during employment to
ensure equal distribution at all the levels in the workplace. It covers the areas such as unfair
dismissal, equal wages, flexible working hours and termination of employment etc. These law
helps the members of the company from the discrimination by making rules and regulations
which is mandatory for all to follow them. The act ensures that the employers follow all the
basic rules such as maintaining safe environment at workplace(De Sousa Sabbagha, et.al, 2018).
The act provides equal benefits to all the members working in the company and ensures that sick
leave, maternity leave ig given to the employees. Strict policies are framed so that if any
discrimination against the employer is done the act ensures that action is taken to protect the
rights of a person.
Data protection act 1998:It is act passed by the Parliament to protect the personal data stored
on the computer or in any other system. The provisions related to the protection of information
or movement of data, This act included the data which is present in electronic form or in hard
copy. The General data protection regulation is incorporated in UK Laws by this act and
includes the information related to an individual(Cornock, 2018). The company ensures that
they have impressive endpoint, network and email protection software to protect the data of the
person and follow the guidelines under the Data protection act 1998. The business provide
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efficient training to the employees to identify the unusual emails or link and inform to IT. It also
ensures that the company's operating systems are up to date and with the latest security systems.
It also has software security to identify the links which can corrupt the files in the systems.
Company law 2006:The company law 2006 is an important part of the legislation that regulates
the company law in UK. The main purpose of this act is to simply its procedures, to set out the
duties of the directors and also to protect the rights of the shareholders. This act is applied in
the business to meet out the goals of the organization and through its application it defines the
duties and responsibilities of the directors and other members in the organizations. The company
defines the protocols which are made by keeping in mind the provisions mentioned in the
Companies Act 2006.
CONCLUSION
Through this report it can be concluded that there are various factors which business should be
kept in mind while deciding for right resources which are capital and finance, demand or market
etc. report has properly explained about customer relationship management and transactional
development and there are various ways through which business can go for international
expansion which are joint venture, licencing, franchising, trade agreements etc. report has also
evaluated company's break even analysis. Break even analysis is the situation when business
incur no profit no loss. This can be used by the business to check that they are moving in the
right direction or not. Financial statements are also discussed in this report which include cash
flow, balance sheet, income statements etc. financial statements are used by the internal and
external stakeholders in order to analyse the financial position of the business.
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REFERENCE
Books and Journals
Akin, I. and Akin, T., 2018. Economic impact of digital dermatitis treatment on a dairy farm: an
application of the break-even analysis. Ciência Rural. 48.
Calabrò, F., 2017, July. Local communities and management of cultural heritage of the inner
areas. An application of break-even analysis. In International Conference on
Computational Science and Its Applications (pp. 516-531). Springer, Cham.
Cornock, M., 2018. General Data Protection Regulation (GDPR) and implications for research
Maturitas 111 pp.A1-A2.
Cruz-Jesus, F., Pinheiro, A. and Oliveira, T., 2019. Understanding CRM adoption stages:
empirical analysis building on the TOE framework. Computers in Industry. 109. pp.1-
13.
De Sousa Sabbagha, et.al, 2018. Predicting staff retention from employee motivation and job
satisfaction. Journal of Psychology in Africa 28(2) pp.136-140.
Erceg, A., Bilos, A. and Kelic, I., 2021. FRANCHISING IN THE DIGITAL ERA–WHAT LIES
AHEAD. Economic and Social Development: Book of Proceedings, pp.53-65.
Guha, S., Harrigan, P. and Soutar, G., 2018. Linking social media to customer relationship
management (CRM): a qualitative study on SMEs. Journal of Small Business &
Entrepreneurship. 30(3). pp.193-214.
Gurnick, D. and Lagarias, P., 2021. Nuts, Bolts, and Outline for Teaching Franchise Law;
Would Socrates Approve?. Franchise Law Journal. 40(3), pp.449-472.
Harrigan, P. and et.al., 2020. The role of social media in the engagement and information
processes of social CRM. International Journal of Information Management. 54.
p.102151.
Hyvönen, et.al, 2020. LawSampo: A semantic portal on a linked open data service for finnish
legislation and case law. In Proceedings of ESWC.
Juanamasta, I. G. and et.al., 2019. The role of customer service through customer relationship
management (Crm) to increase customer loyalty and good image. International Journal
of Scientific and Technology Research. 8(10). pp.2004-2007.
Kuter, M. and et.al., 2017. The early practices of financial statements formation in Medieval
Italy. Accounting Historians Journal, 44(2), pp.17-25.
Morales Díaz, J. and Zamora Ramírez, C., 2018. IFRS 16 (leases) implementation: Impact of
entities’ decisions on financial statements. Aestimatio: The IEB International Journal of
Finance. 17. 60-97.
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Rosado-Serrano, A., Paul, J. and Dikova, D., 2018. International franchising: A literature review
and research agenda. Journal of Business Research. 85, pp.238-257.
Tien, N. H. and et.al., 2021. The strategy of CRM system development at Mega Market
Vietnam. International journal multidisciplinary research and growth evaluation. 2(4).
pp.802-806.
Tompa, E. and et.al., 2021. Break-even Analysis of Respirable Crystalline Silica (RCS)
Exposure Interventions in the Construction Sector. Journal of Occupational and
Environmental Medicine. 63(11), pp.e792-e800.
Tyre, K., Han, P. and Newton, N., 2017. International Due Diligence in Cross-Border Franchise
Transactions. Franchise Law Journal. 37(1). pp.1-14.
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