Factors, CRM, Transnational Development, Break-Even Analysis, Financial Statements and Legislation for Small Businesses

This report discusses factors that small businesses need to consider when choosing resources, customer relationship management, transnational development, break-even analysis, financial statements, and legislation laws that affect small businesses. It includes examples of Marshfield bakery and Tesco, and explains the advantages and disadvantages of each factor. The report also discusses ways in which businesses can expand internationally, such as using an online marketplace, working with foreign distributors, and entering into a partnership. Additionally, it defines break-even analysis and financial statements, and provides an interpretation of financial statements. Course code, course name, and college/university are not mentioned.

Business

Contents
INTRODUCTION...........................................................................................................................1
Factors that a small business needs to consider when choosing the right resources to complete
their objectives/goals and importance of each factor. .................................................................1
Define the term Customer relationship management. Explain the main areas within customer
research management...................................................................................................................2
Defining the term Transnational Development. Explaining the ways in which the business can
expand internationally..................................................................................................................4
Defining the term Break-Even analysis. Then, explaining how it could be applied to a
business........................................................................................................................................6
Defining the term financial statement. Then finding some financial statement and interpreting
them..............................................................................................................................................7
Defining the term Legislation. Discussing all the different legislations laws that affect small
businesses...................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
An organisation which comprises of various activities like professional, commercial and
industrial activities to attain the prescribed objectives (Cartwright, Liu, and Raddats, 2021).
Every business every business run for particular objectives in order to offer quality products and
services to their targeted customers. It plays vital role in society as it affects the living standard
and life of people with the help of technological advancements. This report includes factors and
their importance which small businesses use during selection of resources. Customer relationship
management and main areas within it with advantages and disadvantages are also discussed. This
report also includes transactional development and different ways in which organisations can
expand internationally with benefits and drawbacks. Break-Even analysis and financial
statements are also mentioned in this report. Different legislation laws are studied which affect
the small businesses and how businesses use them.
MAIN BODY
Factors that a small business needs to consider when choosing the right resources to
complete their objectives/goals and importance of each factor.
Businesses needs various resources for commencement of their operations so that they
can generate profits in best possible manner. Small businesses face challenges while selecting the
right resources due to lack of experience and knowledge. They should properly evaluate the
business environment so that effective utilisation of resources can takes place (Ghauri, Strange,
and Cooke, 2021). Small businesses like Marshfield bakery which is located in Chippenham,
UK. It was established in 1985 but incorporated in 2005 to offer food and bakery products to
their local customers. They operate business with limited resources so they have to study the
market trends which help them to identify where they have to utilise their resources. Factors
which are considered while selecting the right resources for achievement of goals and objectives
by Marshfield bakery are mentioned below:
Personal characteristics: Every business needs leader to commence their operations and
guide other employees to perform in desired manner. Their behavioural characteristics create
great impact during the selection of resources in organisation. Managers and employees of
Marshfield bakery differs in their functional skills and management experiences which results in
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different opinion and mindset. Their personality and attitude can impact the operations which
directly affects the growth of company.
Network: Connections plays important role in arranging the required resources in an
organisation as it helps in building relations in marketplace. Strong networks help in finding best
alternatives because like minded entrepreneurs share their experience and information with each
other which increase knowledge. Marshfield bakery try to grow their network in field of food
and bakery products which help them to understand which resources are necessary for their
business.
Marketing plan: Before starting business operations, managers of small business should
focus on their marketing plans which help them in identification of important resources. It helps
in evaluating the process and purpose of business which is carried out by employees to achieve
goals and objectives (Mayer, 2018). Marshfield bakery uses various tools and techniques like
google analytics and insights which help them to understand the required resources. Marketing
plan guides the managers and prioritise activities which help them in performance improvement.
Sales: It is is the most important factor for which the organisation are working today in
the market. To boost the sales the company needs to optimize their operations in the market.
Marshfield bakery are working towards one motive to generate more revenues by capitalising on
the opportunities.
Market: In today's world the organisation needs to understand the scope and variation in
the market. Without understanding the market most of the companies fail to achieve their goals
and objectives in the market. Marshfield Bakery offers great quality products and services to the
consumers (Barber, 2021). The organisation has the right idea about the dynamics of the market.
The company management is working in one direction to become more efficient in the market.
Define the term Customer relationship management. Explain the main areas within
customer research management.
Customer relationship management helps the organisation to maintain a healthy
relationship with the customers in the market. The main Purpose of CRM is to improve business
relationship. On the other hand, customer relationship management ensures that the organisation
is generating adequate revenues in the market. For example Tesco maintains a healthy
relationship with the customers in the market. Their feedback system helps them to improve their
products and services according to the customer needs in the market.
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To become successful in the market the organisation has to make their products
according to the customer preferences. The companies must ensure that the customers needs are
fulfilling by their products and services.
There are certain key areas within customers research management. These areas help to
improve the customer relationship which helps the company to generate more revenues in the
market.
 Technology – Most of the companies in the market has adopted a technological factor to
improve their CRM system (Bougie, and Sekaran, 2019). Digital system provides a
faster and quicker response to the customers. Valuable data of these customers helps the
organisation to improve their operations in an effective manner. Marshfield Bakery use
this technological factor at all levels of management. Due to improvement in their CRM
system the company is growing at an exponential rate in the market. They supply quality
products to the consumers. On the other hand, Marshfield bakery use the feedback system
to improve the quality of their products and services in the market.
 Strategy – It is the most important factor which helps the organisation to achieve their
goals and objectives in an effective manner in the market. CRM strategy helps the
organisation to position better according to the customer needs. The company has to
follow their values and policies to achieve better result in the market. Marshfield Bakery
are working according to their code of conduct and policies which help them to achieve
sustainable performance in the market.
 Processes – To achieve the maximum growth every business activity and operation needs
to have an relevant process. Most of the organisation nowadays creates a workflow and
process at all levels of management to work effectively. Customer feedback helps the
organisation to improve their operations and activities in a systematic manner. Marshfield
Bakery work with a process to achieve their inherent goals and objectives in the market.
 People – This area includes the employees and staff which are working in the
organisation. Employees needs to become more productive which helps the company to
generate more revenues in the market. Marshfield bakery employees had the capability to
engage its customers.
There are certain advantage and disadvantages of each area which are described below:
Factors Advantages Disadvantages
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Technology It help the organisation to
solve the customer queries
faster.
The organisation is usually
dependent on the digital
services which sometimes
creates a negative impact of
the company.
Strategy This factor is essential for the
organisation to carry out
effective operations in the
market.
There is a risk in this factor the
company might face losses
after making the proper
strategy.
Process It is important for the company
to follow a systematic process
to achieve the necessary goals
and objectives
The organisation might face
disadvantage due to
application of different process
at different levels of
management.
People With the right employees in
the company. They could
become more productive to
generate revenues in the
market.
The company might difficult
situations in the future, In
terms of expecting the
productivity from the
employees.
Defining the term Transnational Development. Explaining the ways in which the business
can expand internationally.
Transnational development are the networks which form a necessary a systematic route to
operate the services in different regions. This type of development is done by Multinational
corporations which operates their business in more than one country (Schneider, and Maxfield,
2018). There are certain examples of the companies which operate their business internationally
like Apple, Unilever etc. On the other hand, Marshfield factory distribute their goods and
services in the UK and Europe regions. The organisations carry out their operations smoothly in
these regions. In future they could increase their business activities depending upon the market
trends.
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There are three different ways to expand the business internationally which are described
below:
 Using an online market Place – The organisation has the fair way to reach a wide range
of audience with the help of online and digital services. Through different websites and
online platforms the company could sell their products and services in various regions of
the market. Through amazon the organisation has the capability to diversify their
business in different countries. Marshfield bakery has to study the market effectively to
expand product and services in different regions.
 Working with the Foreign distributor – Online marketers and distributors help the
organisation to expand their business in different regions. The organisation had to
maintain a healthy relationship with the foreign investors and shareholders to
successfully launch their products and services in different countries (Lanzolla, and
Markides, 2021). Marshfield factory can launch their products by partnering up with
different foreign investors in the market. The organisation could acquire different
platforms and open a franchise in several regions.
 Enter Into a partnership – This is the most important way to diversify the business
operations in several countries. The organisation could enter into a partnership with the
established firms to launch their products and services in the foreign markets. Joint
venture contains a separate legal entity to achieve the objectives for a limited period of
time. Marshfield factory could indulged themselves in partnership with the established
bakery brand in the market to diversify their business in foreign business markets.
Benefits and drawbacks when the company enter into an partnership are described below:
Benefits:
 The organisation has the benefit to diversify their business operations in the foreign
market. They could easily generate more revenues if the company provides quality
products to the foreign customers. Marshfield bakery has the capability due to experience
the company could achieve their goals and objectives in the foreign market.
 The company could get domestic customers of different countries. This will help them to
have an efficient growth in the market.
 While entering into an partnership the organisation get the resources of the company
which is already established in the foreign market. Marshfield bakery could get necessary
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to increase their products sales in different regions. On the other hand, the organisation
has an advantage over the exports and imports of goods and services in the market.
Drawbacks:
 In the partnership the organisation does the take the decisions separately. The company
has to speak with the investors and the shareholders to make a decision inherently which
is beneficial for them in the market.
 Lack of stability is another drawback while entering into an partnership. If the
organisation does not perform in the market. They had to face different losses depending
upon the future situations in the market.
 The organisation has to distribute their profits equally between the shareholders and
investors. In case of loss the company has to bear a significant amount in the market.
Defining the term Break-Even analysis. Then, explaining how it could be applied to a
business.
Break even analysis helps the organisation to carry out a financial analysis of a product. On the
other hand, the selling price of the product helps to determine the point at which there is beak
even analysis (Bocken, Boons, and Baldassarre, 2019). It is also called as break even point for
the product or service in the market. Marshfield bakery could measure the break even point of
the business. Their product and services target a huge number of customers in the market.
Applicability of financial statement is described below:
This financial statement helps the organisation to measure the break even point of different
products and services in the market. Through the measure of break even analysis the company
product is fixed and selling and variable cost is changing according to the market trends. The
basic calculation shows that Marshfield bakery margin of safety has given adequate amount of
product share in the market. Their sale in increasing at an exponential rate by seeing all different
factors.
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Defining the term financial statement. Then finding some financial statement and
interpreting them.
A financial statement is a written document from which the company take the idea of the
business financial performance and activities (Hausfather, and Peters, 2020). The company see
the performance and growth in the market. They get a better idea of their profits and losses from
a particular product or service. According to the financial report Marshfield bakery is performing
well in the market. The organisation has seen an efficient growth in the market. On the other
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hand, due to their quality products and services the company might see a sustainable growth in
the upcoming future.
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According to the report Marshfield bakery had the cash flow operating from different
types of activities in the market. The companies total cash flow and outflows by adding all the
three factors is 14, 72, 94. This is good factor in terms of generating revenues from the market.
The organisation legal expenses shows a negative impact of the particular activities and
operations in the market.
These statements could help the Marshfield bakery to perform their operations effectively
in the market. The main purpose of preparing the financial statement is to see the expenses and
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losses which incur in the closing year on the financial basis. The organisation have the better
sum of investments and cash flows from different investors and share holders in the market. Cash
flow from operating activities could become better (Hamzah, and Shamsudin, 2020). The
organisation has to work in an effective manner to improve their services in the market.
Defining the term Legislation. Discussing all the different legislations laws that affect small
businesses.
Legislation is made by the local and state government. These laws abide on different
individuals in the country (Seetharaman, 2020). The rules and regulations of countries are
different from each other. There are various laws which like employment act 1996, company law
2006. The business needs to follow these laws of different regions to perform their necessary
operations in different regions. The laws which are made by the government needs to followed
by the company. If these do not follow the rules and regulations. The organisation will had to
face huge losses in the market depending on the situations. Marshfield bakery is following all the
laws and regulations which are made according to the government. The organisation practices
shows their performance and growth in the market. Marshfield bakery follow the company law
to make a ethical code of conduct within the working place. The organisation is enhancing the
productivity and giving the necessary motivation to the employees.
CONCLUSION
From the above report, it has concluded that the small business are developing role model of the
market. On the other hand, there is a discussion of different strategies and enhancement which
the company could make to improve its operations in the market. Along with that, there is a
discussion about the different rules and regulations which are made in different countries. Along
with that, there is a brief analysation about the organisation financial report and break even
analysis which could make them more effective in the market. They could generate more
revenues in the market.
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REFERENCES
Books and Journals:
Cartwright, S., Liu, H. and Raddats, C., 2021. Strategic use of social media within business-to-
business (B2B) marketing: A systematic literature review. Industrial Marketing
Management, 97, pp.35-58.
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, 30(2), p.101794.
Mayer, C., 2018. Prosperity: Better business makes the greater good. Oxford University Press.
Barber, B., 2021. Is American business becoming professionalized? Analysis of a social
ideology. In Constructing the Social System (pp. 267-294). Routledge.
Bougie, R. and Sekaran, U., 2019. Research methods for business: A skill building approach.
John Wiley & Sons.
Schneider, B.R. and Maxfield, S., 2018. Business and the state in developing countries. Cornell
University Press.
Lanzolla, G. and Markides, C., 2021. A business model view of strategy. Journal of Management
Studies, 58(2), pp.540-553.
Bocken, N., Boons, F. and Baldassarre, B., 2019. Sustainable business model experimentation by
understanding ecologies of business models. Journal of Cleaner Production, 208, pp.1498-
1512.
Seetharaman, P., 2020. Business models shifts: Impact of Covid-19. International Journal of
Information Management, 54, p.102173.
Hausfather, Z. and Peters, G.P., 2020. Emissions–the ‘business as usual’story is misleading.
Hamzah, A.A. and Shamsudin, M.F., 2020. Why customer satisfaction is important to business?.
Journal of Undergraduate Social Science and Technology, 1(1).
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