Managing and Running Small Business

This document discusses the importance of planning and resource allocation for small businesses, as well as the processes of customer relationship management. It also explores the benefits and challenges of expanding a business internationally.

MANAGING AND RUNNING SMALL
BUSINESS

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1.................................................................................................................................................3
M1................................................................................................................................................4
P3.................................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Small business must have good communication system available for the effective working of the
organization. They must timely identify the customer needs and demands by asking there
customer what they want. Small business must also have to change with the changing technology
in there industry so that they can maintain there customer share in the market and also to
compete within such dynamic environment.(Chen, Hanson and Stein, 2017)
MAIN BODY
P1
Planning and allocating resources to achieve
business objectives for small business or
social enterprise
Small business must allocate there
resources in such a way that the resources
are optimally utilized. If these resources are
not properly allocated then there will be
problems in completing the project and this
may disrupt the work of the entire
organization. Therefore, the allocation of
resources must be prioritized and then
allocated on the basis of importance. For
achieving there objectives the small business
should use the following techniques given
below:
Determine the resource available
Small business must allocate there
resource on the basis of there scope of the
project they are going to undertake so that
the organization will know the task of the
project and the resource required to achieve
the goal of the project. In this way the
organization can plan there resource
carefully. This will form a base for the
organization to allocate there resources and
move toward achieving there objectives.
Identify the resources the company needs
Once the business has identified the
scope then they can move to identify the
resource the company is going to need. This
will include resources like the employee that
will be working on the project, equipments,
venues etc.
Evaluate the human resources
The company will need to evaluate
the human resource available as they don't
have a large workforce they need to
carefully work upon what task each
individual must be given in order to make
sure that the human resource are utilized
optimally.
Draft a resource allocation plan
Small business must have a plan to
allocate the resources identified and

evaluated in the previous steps. This is a
very important stage as if the company does
not allocate the right resource to the right
activity then they may have to face serious
consequences in the long run.
Always be ready for any emergencies
After allocating the resources the
company must be prepared to tackle any
emergencies that may arise, such as the
employee taking leaves or resigning from
the organization, these will result in the
organization facing set backs while working
and these may be detrimental for the
successful achievement of their objectives.
Guide the team whenever they are facing a
problem
There should be proper supervision
upon the team in order to make sure that the
team does not face any problem and if there
is any problem then it is solved immediately
for the smooth working of the organization.
This is an important step as the company
need to work to make the best use of there
human resources.(Wheadon and Duval-
Couetil, 2016)
M1
For the proper allocation of
resources the company must set there
objectives, and according to these objectives
there must be a schedule, and then there
must a supervisor for the proper guidance of
achieving the goals of the organization.
M2
Without proper planning there will
be a lot of problem being faced by the
organisation to achieve there goals as
planning helps the organization to achieve
there goals easily and accurately.
D1
The proper allocation of resource is
directly linked to the achievement of the
organization success as small business often
find it difficult to manage resources and if
these are not properly allocated then there
will be serious consequences.
P2 Explain and evaluate different processes
of customer relationship management fora
small business or social enterprise.
Customer Relationship Management is the
part of business life-cycle. As the customer
is one of the most important part of the
business process. It is necessary to maintain
proper business relations with the clients and
customers for better and long term
profitability of the business. Usually CRM
helps to win more of the deals, shortening
the sales cycle and building a consistent
sales cycle. Best designed CRM procedure
helps to attain the best customer feedback
and improve customer experience.

Some benefits of customer relationship
management for the small businesses are it
makes the sales process easier, consolidates
sales figures and many more
1. Identification of the target market :-
A first step in establishing CRM process is
identification of the market and audiences to
be targeted. Mostly of the small business
have this to be mentioned in their business
planning. Business owner must know the
target market or audience. The target
identification may be based on just
demographics and other data. List the
customer on the priority basis based on their
value proposition. Different customers have
their different valuations. But proper
identification of them makes the CRM
process effective.
2. Defining CRM strategies and budget
analysis :- This step overall depends upon
the process you want to adopt and type of
customer you are handling there may be
many ways of customer relationship
management. This includes process of CRM
whether it may be through making online
community, any social platform or old
traditional method of customer relationship
management. Each process has its own pros.
and cons. which should be considered while
deciding.
3. Defining the method to handle each
customer type :- The method of handling
each customer is different so as business
person should identify the best suitable
method of CRM with the potential customer.
For an instance high paying customer should
be offered high price items whereas low
affordable customer should be handled
differently.
M3
Selection of the CRM software for
measuring the performance :- Mostly of the
business now a days use CRM software. The
setting up CRM software has been helpful in
eliminating the complexities that CRM has
to face it before. Software has been helpful
in completing the major task of business
with lesser involvement of human power in
small business, usually the CRM software
has to be updated with time to time.
D2
Re-engagement of customers :- Re-
engagement of customer is one of the
important and tricky task in customer
relationship management process.
Customers can be re-engaged with the help
of following ways like customer feedback
surveys, e-mails and social media. We can
adopt any of the method of customer re-
engagement but each method has its own
positive and negative impacts on the

process. So it should be selected keeping the
points in mind All these refer to the keeping
in touch of the customers with the product or
service. So that business is being able to be
connected with customers and its clients.
P3
The domestic market is almost very much
huge for gaining satisfactory profits our of
business. But many entrepreneur want to
gain more from its business and the way to it
is expansion of the firm's business
internationally. Seeking global growth by
going internationally as exporters and
importers will give a business opportunity.
Finally, by entering the global market space
will give us tremendous opportunity to
compete with the other companies. Global
strategy has helped business to be in market
for the long term.
Key steps to expand domestic business
trans-nationally:
Preparation of the international business
plan. It is essential to be ready and
committed for international expansion
before going forward for the planning.
Market researches of foreign market.
Department of commerce may be good
source for this purpose.
Evaluation and selection of the best method
to distribute product to the foreign countries.
Setting up of product prices keeping in
social , cultural and other factors in
consideration. Along this legal, economic
factors of that country may also be kept in
consideration.
Identification of the private and government
financing sources. Many a time government
provide subsidies on the export.
Finally, business has to move their goods to
the international market.
It is helpful in developing long term success
of business but besides these it may have its
benefits and drawbacks.(Kitching, Hart and
Wilson, 2015)
Some of the benefit of expanding business
internationally are as follows :-
Expansion of the targeted customers :- One
of the key major advantage of expansion is
the increase of the targeted customers
overseas. If the company had targeted its
customer properly then its customer will not
change with the time as well. When we
decide to promote our product in the
international market. The online marketing,
social media and online website will surely
cut out the marketing cost of the business in
international market. When a business
expands itself its brand have an opportunity
to make its image over international market.

Disadvantages of the expanding business
internationally are as follows :-
Challenge of Different culture :- As trans
national strategy will help to get and attract
new customers, the drawback is that cultural
differences in different countries be
responsible for destroying all our marketing
efforts. There may be challenges due to
language differences, that can spoil our
marketing efforts if we do not have an
expert translator of the language where we
are going to market our product and
services.
Financial Risk :-As trans-national
diversification will surely help in expansion
of business but It will cost lot to the
company including financial cost along with
time, market research. The main expense in
global expansion is that finding a potential
person who can be trained to run overall
business beyond the domestic boundaries.
Along with it we also have to manage the all
foreign employment contracts.(Crane, 2019)
M4
Diversification of the business activities :-
The next benefit of the international
expansion is that diversification of the
business activities. It also helps us to take
advantages of different economic
fluctuations in different countries. It may be
helpful in offsetting the losses occurred due
to economical imbalances in the domestic
country. Establishment of business overseas
can sustain domestic business for long term.

REFERENCES
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Villamizar, M., and et.al., 2016, May. Infrastructure cost comparison of running web
applications in the cloud using AWS lambda and monolithic and microservice
architectures. In 2016 16th IEEE/ACM International Symposium on Cluster, Cloud and
Grid Computing (CCGrid) (pp. 179-182). IEEE.

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