Factors, Customer Relationship Management, Transactional Development, Break-Even Analysis, and Legislations for Small Businesses

This report discusses the factors that small businesses need to consider, customer relationship management, transactional development, break-even analysis, and legislations that affect small businesses. It explains how these can help to grow business activities and performance. The report uses Cottage Tea Shop as an example to illustrate the concepts.

Unit 29

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Talk about the factors that a small business needs to consider when choosing the right
resources to complete their objectives/goals...............................................................................1
Define the term Customer relationship management. Explain the main areas within customer
research management and provide the advantages and disadvantages of each area...................2
Define the term; (1) Transnational Development. What are the ways in which a a business can
expands international...................................................................................................................3
Define the term; (1) Break-Even Analysis. Then, explain how it could be applied to a
business. You can provide specific calculations based on your chosen organisation.................5
Define the term; (1) Legislation. Discuss all the different legislations (laws) that affect small
businesses....................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In business environment there are different factors that involves in business and supports to
develop the organizational performance. For each industry it is important to have continuous
focus over factors and aspects that might be arises in their business and impacts accordingly. In
changing environment it became more challenging for companies to bring changes in their
products and services that could help to grow business continuously (Chelladurai, and Kerwin,
2017). To understand about this report a small tea shop has been selected name is Cottage tea
shop. The manager of each organization understand customer requirement and provide products
accordingly. The report covers factors that involved by small business to accomplish their goals,
customer relationship, transactional development, break even analysis, financial statement and
legislations that used to run business.
MAIN BODY
Talk about the factors that a small business needs to consider when choosing the right resources
to complete their objectives/goals.
Small business means a business which is operated at small place and by less than 5
numbers of people that directly affects business and managing activities. This type of business is
formed for producing goods at smaller scope for the purpose of getting small profits and living
their life. For example, barber shop, tea stall, and others are operating their small business. In
business environment there are many factors that arise while running business and selecting the
right resource to achieve goals. The description of factors is defined below:
Cost – This is important factor while buying something and selling. The small businesses
needs to consider this factor in their business aspects that could help to grow activities The
selling price of products should be more than buying cost for a business concern that would help
to make profits. If cost of Cottage tea shop is greater than selling price then it will be challenging
for organisation to operate their business (Bratton, and Gold, 2017).
Come up with new idea – To start a business and operating it continuously there is need
to come up with new business idea that can help to manage the business. In relation to starting a
business a business concern is required to bring new ideas in their business that directly affect
their business positively by increasing sales and profitability. For example, a new technology or
taste is providing by tea shop that could help to increase organisational sales.
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Location – To choose a best location for starting a small business is good that could help
to make right business decisions. To do a business and managing activities continuously there is
need to select the best place which can be used to develop a business. A factor or a physical
location where all company activity is carried out is referred to as location. So, when choosing a
site for your business, always be cautious. It should meet all of the company's needs (Lin, Xiao,
and Wang, 2021).
Needs and wants of customers – This is another factors which needs to be focused by
business concern to operate their business. If a business is able to generate demand of products
for its customers then it will be good opportunity to increase organizational sales. For example, a
Cottage tea shop prepared multiple types of coffee and tea for their customers that influence
people and encourage them to make buying decisions (Briscoe, Tarique, and Schuler, 2012).
Planning and strategies – In business environment and market there are multiple
companies who is selling similar kind of products and services that it will be challenging for
organization to grow their business. In case, having plans or strong strategy for competing
market and influencing customers could be opportunity to grow business. The management
should have proper planning which can be used to develop the business productivity. Moreover,
small-scale enterprises typically have a small number of departments. They normally do not
necessitate the involvement of the human resources department. However, any business activity
requires the financial and marketing departments to function properly. Cottage tea shop is
formulating effective plans and strategies to run their business as it provide products according to
changing climate and needs of customers that can help to increase sales.
2. Define the term Customer relationship management. Explain the main areas within
customer research management and provide the advantages and disadvantages of each
area.
Customer relation relationship is defined as process in which a business concern maintain
good relationship with their customers and employees for the purpose of growing their business.
If there is good relationship between employer and employee then it customer would feel happy
and make buying decisions. For example, Cottage tea shop is following CRM approach that
helps to maintain good relationship that can help to increase organizational sales. In business
environment there are different areas which help to develop the CRM such as:
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Communication technique – This is important area that states there is need to have proper
communication between employer, employees and customers that can help to develop the
business by selling products. The Cottage tea shop is preparing different taste and design of
coffee by maintaining good communication that can help to increase sales
Advantage: Having clear and good communication helps company to increase its sales
and make feel good to people.
Disadvantages: This can be create cost of organization as new technology of
communication is introduced by management that directly affects business profits (Jiang, and et.
al., 2012).
Market analysis – This can be explained as effective area which is used by business
concern for the purpose of analysing market and bringing products accordingly. Cottage tea shop
is market analysis area in customer research where it came to know what people wants and how
they would be satisfied that can help to develop business productivity.
Advantages – This can help to taste and competitors in market which supports to provide
products and services accordingly for developing performance.
Disadvantages – The management of chosen organization could face challenge of high
investment and new technique that reduces profits.
Transportation – Any type of organization can benefit from digital technology because it
can aid in the management of all departments and activities. Transportation services may be
made easier and more supporting with the use of digital technology because it can attract a big
number of clients and increase organizational productivity.
Advantages – Cottage Tea Shop is using transport for the purpose of expanding its
business and selling its products by putting small van at different location of UK that can help to
increase organizational sales.
Disadvantages – Due to increasing price of fuel and changing environment rapidly
organizational sales affected negatively (Hnatenko, and et.al., 2020).
Define the term; (1) Transnational Development. What are the ways in which a a business can
expands international
Transactional development is the process of growing a business from one place or location
to another by managing all functions and activities. This is important for each industry to have
good relation with other country that can help to increase the business activities. In relation to
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Cottage Tea shop there are different ways which can be used be to develop the transaction in
other place such as:
Internet – This is the source of sharing information and running a business in other place with the
help of net as most of the business are running via net. This can help to increase the business
activities and performance in changing environment. The management of Cottage Tea shop can
use this way to develop its transaction as it help to grow business by making online payment.
Advantages- This helps to save from extra carrying cost and maintain higher productivity. The
management of Cottage Tea shop can use this way to grow their business and manage each
function properly (Buller, and McEvoy, 2012).
Disadvantages- This can be create a challenge of online payment fraud, and leak of information
that directly affects business industry negatively.
Joint venture – This is another way that used by organization to develop their business by
maintaining or connected with other business in other place that can help to develop its business
activities effectively. The management of Cottage Tea shop use Joint venture to improve its
business relation and turning in to larger organization. This can help to increase business
productivity and profitability.
Advantages – This can be helpful for organization to develop their transaction by connecting
with other business that is set up in other country, supports to increase business sales and
profitability.
Disadvantages – This can be affect business negatively as changing in culture and language of
people that affects sales negatively.
Franchise – This is way of getting right of opening business from owner by paying fixed amount
or fees. This can help to grow the brand position and maintain higher performance.
Advantage – The management of Cottage Tea shop could expand its business by giving formal
right to other for selling its products and services. This helps to increase the business
performance and profitability in changing environment.
Disadvantages – The fees to get franchise could be higher and it might be create the challenge to
run their business. Thus, Cottage Tea shop faced the challenges of running business in other
location.
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Define the term; (1) Break-Even Analysis. Then, explain how it could be applied to a business.
You can provide specific calculations based on your chosen organisation.
Break even analysis is the tool which used by organization to analysis the business position
by stating profit or loss. This showcase no profit no loss situation while running a business.
Every organization follow this framework to prevent their losses that might be incurred and
affected the business productivity. The Cottage Tea shop can apply this analysis to know
their profits and loss that supports to maintain a level of business and increase performance. If a
business is not running well then this used to covering all losses and attain goals
(Daneshjoovash, Jafari, and Khamseh, 2020).
The financial statement of Cottage Tea Shop states that it is running business by offering best
develop quality and taste of products that helps to increase business productivity in changing
environment. The company is in profit situation where it follow the break even point by keeping
records of all transaction and activities that develop understanding to continue further or not.
The financial statement can used to improve business performance by formulating budget
according to each activity and suggest what to do, can help to develop business activities and
productivity (Liu, and et.al., 2020).
Define the term; (1) Legislation. Discuss all the different legislations (laws) that affect small
businesses.
Whoever is intending to start a business in this atmosphere should follow all of the laws and
regulations that are vital and help to boost productivity. Business concerns must adhere to rules
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and regulations in order to continue to operate efficiently and profitably. In the case of Cottage
tea shop, managers adhere to employment law, which has an impact on decision-making:
1. Health and safety act 1974 – This statute pertains to the health and safety of individuals
who work for a company. As a result, it is the employer's responsibility to ensure that
employees are in excellent health so that they can feel good about themselves and be
motivated to work. In the case of Cottage Tea shop, management are according to the law
and focusing on employee health. If any problems occur, businesses should provide
benefits to employees so that they feel good and can work efficiently (Dunn, 2020).
2. Data protection act 1998 – While employees work in an organization, they expect their
data to be kept private and secure so that they may feel comfortable and productive. This
makes it easier for employees to collaborate and complete tasks. For each organization it
is important to keep protect their staff data and build their confidence that can help to
manage the work and increase business performance.
3. Working time act – In this legislation it is defined that all employees who are working
should be aware from timing of work and hours. If employees are working for extra hours
they should be get extra pay. In other words, overtime should be pay off so employees
will be satisfied and ready to work in flexible hours. In Sports Direct, working act is
followed by managers who recorded working hours of employees and pay for overtime
that satisfied the employees and increase the profitability in organisation.
4. Employment act 1996 – This statute states that all working workers must be aware of
their work schedules and hours. Employees who work longer hours should be
compensated accordingly. In other words, overtime should be compensated such that
employees are happy and willing to work flexible hours. Managers at Cottage Tea shop
adopt a working act in which they monitor employees' working hours and pay for
overtime, which satisfies employees and increases the company's profitability. (Hayter,
and Link, 2021).
5. Company Law 2006 – To start any business and growing it there is need to follow the
amended company law that can help to increase the organizational performance. The
Companies Act of 2006 is a piece of legislation that acts as the fundamental source of
company law in the United Kingdom. This act holds the record for being the longest in
British Parliament history, with 1,300 parts spanning 700 pages and a 59-page list of
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contents. The statute also included 16 schedules, however the Corporation Tax Act of
2009 has subsequently replaced them.
CONCLUSION
From the report it can be concluded that customer relationship management is the
practice of managing good relations between employer and employees that supports to increase
business activities and performance. Cost, new ideas, planning. Location, and marketing is
defined as main factors that should be consider while operating a business and increase activities.
The intended goals can be considerably achieved by implementing a variety of HRM practices.
Furthermore, the organization performs a variety of human resource functions. It primarily
focused on attracting qualified candidates to the organization through various CRM procedures
and approaches. Employees and employers both gain a variety of benefits from the
implementation of various human resource management methods. Apart from that, the
government enacts legislation to protect the rights of employees, such as data protection, health
and safety, and so on.
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REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Briscoe, D., Tarique, I. and Schuler, R., 2012. International human resource management:
Policies and practices for multinational enterprises. Routledge.
Jiang, K., and et. al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Chelladurai, P. and Kerwin, S., 2017. Human resource management in sport and recreation.
Human Kinetics.
Buller, P. F. and McEvoy, G. M., 2012. Strategy, human resource management and performance:
Sharpening line of sight. Human resource management review. 22(1). pp.43-56.
Daneshjoovash, S. K., Jafari, P. and Khamseh, A., 2020. Effective commercialization of high-
technology entrepreneurial ideas: a meta-synthetic exploration of the literature. Journal
of Small Business & Entrepreneurship. pp.1-26.
Dunn, K. E., 2020. The business of DNA nanotechnology: Commercialization of origami and
other technologies. Molecules. 25(2). p.377.
Hayter, C. S. and Link, A. N., 2021. From discovery to commercialization: Accretive intellectual
property strategies among small, knowledge-based firms. Small Business Economics,
pp.1-11.
Hnatenko, I. and et.al., 2020. An approach to innovation potential evaluation as a means of
enterprise management improving. International Journal of Supply and Operations
Management. 7(1). pp.112-118.
Lin, S., Xiao, L. and Wang, X., 2021. Does air pollution hinder technological innovation in
China? A perspective of innovation value chain. Journal of Cleaner Production. 278.
p.123326.
Liu, R. and et.al., 2020. Solution‐Processed High‐Quality Cesium Lead Bromine Perovskite
Photodetectors with High Detectivity for Application in Visible Light Communication.
Advanced Optical Materials. 8(8). p.1901735.
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(Chelladurai, and Kerwin, 2017) (Bratton, and Gold, 2017) (Briscoe, Tarique, and Schuler,
2012) (Jiang, and et. al., 2012) (Buller, and McEvoy, 2012) (Daneshjoovash, Jafari, and
Khamseh, 2020) (Dunn, 2020) (Hayter, and Link, 2021) (Hnatenko, and et.al., 2020) (Lin, Xiao,
and Wang, 2021) (Liu, and et.al., 2020)
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