Factors, CRM, Transnational Development, Break Even Analysis, Financial Statements and Legislation in Laynes Espresso

This article discusses the factors that a business needs to consider when selecting the correct resources, customer relationship management, transnational development, break even analysis, financial statements, and legislation in Laynes Espresso. It also includes examples and applications of financial statements.

Unit 29 Assessment

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
State the factors that a business need to consider when selecting the correct resources and its
importance to complete the goals ...............................................................................................1
Explain the areas of customer relationship management with its advantages and disadvantages
......................................................................................................................................................2
Explain transnational development and their ways with benefits and drawbacks ......................3
Define the term Break Even analysis with its application on the business .................................4
Define the financial statements with examples and then explains how the statements can be
used to improve the running of that business...............................................................................5
Define the term legislation with different law which affect small business. ..............................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Financial management refers to the planing, organisation, managing, directing as well as
controlling the financial functions such as acquisition and utilisation of finance of the business. It
means implementing general principles of management to financial resources of the organisation.
In a business the operations are conducted by keeping all the activities like evaluating various
resources, customer relationship management, transnational development, break even analysis,
financial statement and legislation into considerations. All these terms helps the management to
achieve the vision and mission of company effectively as well as helps them to grow globally for
long run (Aissa, Thabit and Hadj, 2018). To understand all the terms the selected business is
Laynes Espresso which provides food and beverages services to the people in UK.
This project highlights various factors that a business needs to consider to complete their
objectives. Further, it defines various term such as customer relationship management and
transnational development with its advantages and disadvantages. Moreover, it covers break
Even analysis , financial statements and legislation with their applications on the business.
MAIN BODY
State the factors that a business need to consider when selecting the correct resources and its
importance to complete the goals
There are various factors that a business need to consider such as strategic focus, people,
operations, marketing and finances when choosing the correct resources to achieve the growth of
the company. All these factors hinders and fosters the growth of company. The manager of
Laynes Espresso must choose wisely all the resources related to these factors in their
organisation which will helps them to expand their business globally for maximize profit share.
Strategic focus- This factor includes planing, management and leadership. It is most
important for any company to make plan for their working, operations and management to
conduct systematic work flow for the achievement of goals. Also, the manager of Laynes
Espresso use most effective management and leadership style to guide and manage their work
force as well as to improve the overall performance or productivity of them (Banks, 2021). It is
beneficial for management of Laynes Espresso to improve and motivate employees by using
most effective management practices which also increase their profitability.
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People- This factor includes staff, personnel, learning and development. Staff and people
are most valuable resource for company which foster their market share and proves as
competitive advantage. While selecting the staff, employees as well as training and development
programme manager of Laynes Espresso must considered all the benefits and drawbacks related
to them. Further choose perfect candidate and most effective training programme for them to
develop their skills to increase the productivity of company. The importance of this factor is it
helps the Laynes Espresso to increase their profit share by selecting most suitable candidate to
achieve the target.
Operations- This factor includes processes and work while conducting operations in an
organisation the manager of Laynes Espresso must make effective process for the working of
employees. The importance of effective strategies is that it provides plan of operations activities
in advance which helps the management to conduct fast working by utilising scare resources in
most effective manner.
Marketing- This factors includes sales, customer relations and responsiveness. The
manager of Laynes Espresso must make effective marketing plan to promote their services to
attract customer base. The effective marketing plan helps the manager to attract more customers
which is beneficial for enhancing their sales, loyal customer base and positive response for their
products.
Finances – It includes assets, facilities, funds and equipments for the smooth working in
an organisation. The manager of Laynes Espresso must evaluate all the aspects related to their
funds sources, assets and many equipment. Valuable assets, equipment and good source of
funding helps the company to increase the sales, productivity and quality of their products which
leads to increase in their profitability and customer base (Forsyth, 2018).
Explain the areas of customer relationship management with its advantages and disadvantages
Customer relationship management refers to the sum of strategies, practices and
technologies which a company use to manage and determine consumers interactions as well as
data throughout the consumers life cycle. The main aim is to enhance the consumer service
relationship and it assist the management to retain their loyal customer base for the growth of
sales and profitability. The areas of customer relationship management in context to Laynes
Espresso are shown below.
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Technology- It is related with infrastructure and applications of technology in an
organisation which are linked with CRM system. It includes collection of data by marketing,
digital commerce, sales platform and customers service interactions. The managers of Laynes
Espresso use digital technology to interact with their exiting and potential consumers and collect
data about their expectation, taste and preferences. The advantage of technology is that they
collect large data about customers trends to make changes in their products or working to create
strong relation with customers (Gereffi, 2019). Also, there is disadvantage of technology is that it
is very costly and time consuming that small businesses cannot afford.
Strategy- It includes business objectives and goals the management must make their
CRM strategy by keeping and developing clear objectives and goals. Also, these goals is align
with the Laynes Espresso culture, positioning, values and vision. The advantage of this areas is it
helps to manage, optimize and automate customer data whereas disadvantage is it required huge
knowledge and experience to make effective strategy.
Processes- It refers to the business, policies, rules and procedures the managers must
make CRM strategy which is directly related to the customers and their expectations. All the
internal and external processes of Laynes Espresso operations is must be conducted in order to
gain higher customer satisfaction and trust. The advantage is it helps the managers to conduct
systematic work to build strong relationship with customers by providing them better quality
product according to their needs. The disadvantage is that wrong and inaccurate information may
leads to huge wastage in process of making policies.
People- It is related to organisational structure, incentives and workforce skills. people is
the most important aspect to conduct the CRM practices successfully. Managers of Laynes
Espresso must observed their employees performance to identify that they working with their full
focus and dedication to improve the experience and satisfaction of customers. The advantage is
that It helps the manager to reduce mistakes in their employees performance which leads to
increase the quality of their products (Jafari-Sadeghi, 2020). Whereas, the disadvantage is that it
is customer oriented practices which decline the motivation among employees due to lack of
proper communication.
Explain transnational development and their ways with benefits and drawbacks
Transnational development of business refers to the activities of the company to expand
their operations in many countries to gain maximum profit and large customer base. It means any
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company which manage their business with head office in one country but operate their
operations in many countries to increase their brand value globally. A transnational development
is a strategy or decision of a Laynes Espresso to conduct their business operation and sale their
product and services across the world.
There are many ways in which Laynes Espresso can expand their operations internationally such
as joint venture, franchise and internet that are as follows-
Joint venture- A joint venture is business mergers in which more than 2 parties are
agreed to invest their resources for the aim of achievement a particular task as well as start a new
business. The owner of Laynes Espresso can use this method by merging their operations with
another business to get huge capital for international expansion. The benefits of joint venture for
Laynes Espresso is they get huge capital and various ideas from other successful business parties
which foster their market share in global market (Lessambo, 2018). The drawback is that there
is chance of fraud and leakage of company important data by other parties.
Franchise- It refers to the methods of business in which owner and founder licenses its
activities along with its knowledge, branding, products or services in order to gain franchise fees
against these. The franchisor is the company that allotment licenses to franchisees to use their
brands and products for selling. The benefits of the franchise for Laynes Espresso is that they
get extra profit without involving in the operations of expansion. Whereas, the drawback for
Laynes Espresso is that the franchisees is misuse the brand name which badly affect the
reputation of company.
Online business- It is another method which management of Laynes Espresso can use to
expand their business such as they can develop online website and launch their online company
app to attract more customers globally. The benefits of online business for Laynes Espresso is
that the manager can expand their business without spending extra money on infrastructure.
Whereas, the drawback is that they required huge knowledge for developing online website
which is time consuming (Michener and Nichter, 2022).
Define the term Break Even analysis with its application on the business
Break Even analysis refers to the financial calculation which disclose the point and time
at which the company sold enough quantity of their product or services in order to cover all their
costs. It refers to the point where the management of Laynes Espresso meets their all fixed and
variable cost of operation by offering enough quantity of their product and services to customers.
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The financial manager of Laynes Espresso can apply Break-Even analysis by dividing the fixed
cost from revenue per unit subtract the variable cost per unit. The fixed cost refers to those cost
which cannot change as per the change in units produced. The variable cost refers to the cost
which ca change as per the change in per unit produced. Also the revenue is selling price per unit
minus the variable cost such as raw material or labour (Tanco, Cat and Garat, 2019). The margin
of safety is the point which indicate the amount of company sales which are preceding the break
even point. The application of Break even analysis in context to Laynes Espresso are as follows-
The presented calculation shows the Break Even point of Laynes Espresso is 26.80 as
well as margin of safety of Laynes Espresso is 45.4% which is near to half of companies current
sales. It shows that company has great potential or opportunities for future growth also it indicate
the favourable position of company sales.
It helps the management of Laynes Espresso to determine their selling price to earn
desirable profit for the growth. Also, it helps them to set target for the sales in order to cover
return on capital invested. Further, it also enables them in forecasting profit and costs as per the
change in volume of their services providing or sales.
Define the financial statements with examples and then explains how the statements can be used
to improve the running of that business.
Financial statements refers to the records of business reports which states financial
position, financial results and cash flow at the end of particular year. It includes various
statements like balance sheet, income statement and statement of fund flows or cash flows. The
accountant of Laynes Espresso prepare financial statement to identify the financial position,
cash in hand and area for future growth and expansion (Tuzunkan, 2018). The financial
statements in relevance to Laynes Espresso are shown below-
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The budgeted profit forecast statements of Laynes Espresso shows the net profit of every
months by recording total sales of the month as well as fixed and variable cost. The net profit is
identify by subtracting total cost from sales of particular period. As well as comparing past sales
or profit with current sales or profit to identify the percentage of growth. In this statement, it
show the sales of every month and profit and loss of every month which helps the management
of company to know about their strengths as well as areas of weaknesses which they have to
improve to earn maximum profit and increase their future sales.
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The cash flow statement refers to the report which provides a accurate data about the cash inflow
or out flow of company during a particular year as well as it also shows the total inflow or
outflow of cash as well as end balance of cash in hand of companies (Ulfa and Challen, 2020).
The cash flow statement in reference to Laynes Espresso are shown below-
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The net cash flow from operating activities of 1 year is 21135, 2 year is 148044 as well
as 3 year is 148042. The net cash flow from financing activities of 3 years is -780, -750 and -750,
its shows negative balance. As well as the net cash flow from investing activities of 1st year is -
40000 and next 2 years shows zero balance. The total inflow or outcome are determined by
adding the balance of all three activities such as in 1st year is -19645, 2nd year is 147294 and 3rd is
147292. The cash flow statement shows positive cash balance of 2 year of Laynes Espresso but it
also shows that there is no growth between two years.
Define the term legislation with different law which affect small business.
The legislation refers to the preparing, enrolling and enacting of law and regulation for
business practices by the regional, state and central government of any country. It includes
various laws such as Data protection act 1998, Employment act 1996, company law 2006 and
many more that every business need to follow by conducting their business operations. All these
has great impact on the hindrance and foster of the company. If any company fails to follows
these laws in their operation then they have to suffer from huge loss also it directly affect the
existing and reputation of company(Waldron, 2018). The management and owner of Laynes
Espresso operates their business practices under these law such as using Employment act 1996
by generating employment every year and provides them equal right and salary for their personal
growth which helps them to increase motivation among employees for enhancing productivity.
Also, the managers operate their business under company law 2006 such as they resisted their
business in this law as well as conduct their activities as per the law which provides guidance to
them to do fair practices with customer. As the result, it helps them to increase loyal customer
base, market image and profitability (Zaman, 2019).
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CONCLUSION
As per above information, it is concluded that the marketing, finance, operation, people
and strategic focus are most important factor which helps the company to grow globally. The
four area of customers relationship management such as technology, people, strategy and process
which have advantages and disadvantages also. The ways such as joint venture, franchise and
online business by which a company expand their business globally. The break Even and
financial statement helps the company to find their current sales, profits, position and cash
balance. The various law such as Employment act 1996 and company law 2006 which affect the
position and operations of any company.
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REFERENCES
Books and journals
Aissa, S.A.H., Thabit, T. and Hadj, H., 2018. The impact of customer relationship management
on customer behavior: Case study of Ooredoo for telecommunications. Revue Des
Sciences Commerciales. 17(1).
Banks, M., 2021. ‘Significant step’towards break-even target. Physics World, 34(10), p.11ii.
Forsyth, T., 2018. Encyclopedia of international development. Routledge.
Gereffi, G., 2019. Global value chains and international development policy: Bringing firms,
networks and policy-engaged scholarship back in. Journal of International Business
Policy. 2(3). pp.195-210.
Jafari-Sadeghi, V., 2020. The motivational factors of business venturing: opportunity versus
necessity? A gendered perspective on European countries. Journal of Business Research.
113. pp.279-289.
Lessambo, F.I., 2018. Financial Statements. Analysis and Reporting.
Michener, G. and Nichter, S., 2022. Local compliance with national transparency
legislation. Government Information Quarterly. 39(1). p.101659.
Tanco, M., Cat, L. and Garat, S., 2019. A break-even analysis for battery electric trucks in Latin
America. Journal of Cleaner Production. 228. pp.1354-1367.
Tuzunkan, D., 2018. Customer relationship management in business-to-business marketing:
example of tourism sector. GeoJournal of Tourism & Geosites, 22(2).
Ulfa, A.M. and Challen, A.E., 2020, May. Good Corporate Governance on Integrity of Financial
Statements. In Tarumanagara International Conference on the Applications of Social
Sciences and Humanities (TICASH 2019) (pp. 40-46). Atlantis Press.
Waldron, J., 2018. Legislation and moral neutrality. In Liberal neutrality (pp. 69-91). Routledge.
Zaman, K., 2019. Does higher military spending affect business regulatory and growth specific
measures? Evidence from the group of seven (G-7) countries. Economia Politica. 36(1).
pp.323-348.
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