Managing and Running a Small Business

Managing and Running a
Small Business
Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations a small business or social enterprise needs when planning and
allocating resources.....................................................................................................................1
TASK 2............................................................................................................................................3
P2 Different processes of customer relationship management for small business organisation. 3
P3 Way of small business can develop transnationally benefits and drawbacks........................5
TASK 3............................................................................................................................................6
P4 An annual itemised monthly cash flow forecast showing fixed and variable costs...............6
P5 Way of break-even analysis applied in an organisational situations......................................9
P6 Interpretation on key financial statements for an organisation for contribution in successful
management...............................................................................................................................10
TASK 4..........................................................................................................................................11
P7 Key legislation and regulations which have major implications on small business
companies..................................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
In this fast changing world small business entrepreneurs are put a great impact on the
worldwide economy. These ventures are not only increasing the economy but they are providing
employment opportunities as well. This aid companies in hiring eligible candidates who are
skilled enough in performing their task in an effective manner (Bridge and O'Neill, 2012). Along
with this, it is crucial that firms implement new and innovative ideas so that their business can
foster and provides benefits in order to sustain in the market for a longer period of time.
Company which is taken in this assignment is DCS Group which is a wholesale stores in United
Kingdom and provides with necessary grocery items to its customers. This report will include
how a small business make plans and allocate resources so as to achieve targets and objectives in
a speculated time frame. With the help of this assignment the process of customer relationship
management will be evaluated for all business or social enterprise including the benefits and
challenges of transnational operations. Along with this, cash flow, budget and break even
analysis is involved in this assignment. Lastly, implication of regulations and legislations on a
small business or social enterprise is included in this report.
TASK 1
P1 Main considerations a small business or social enterprise needs when planning and allocating
resources
After the action of BREXIT, government of United Kingdom gave opportunities to small
business enterprise for coming up with new and innovative ideas and establish its business for
gaining maximum benefits. As a result, this will ultimately increase revenue for the economy of
the nation. Therefore, in terms of positive impact of BREXIT, an individual can now start its
own business in the open market. But this can be possible if new ideas are applied in an effective
manner so that products and services can be delivered according to the need and requirements of
customers. Therefore, in order to run a business successfully it is crucial that proper planning is
being done along with allocation of resources (Burns, 2016). Apart from this, other factors that
are also required to be considered are forecasting and budgeting, financial statements,
recruitment and selection etc., on a continuous basis. As a result, it will enable small business in
delivering effective services to its customers. Thus, in relation with DCS Group, as company is
dealing in retail sector and operating in small scale so for providing effective services and
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facilities firm is first analysing the needs and requirement of customers who are living in that
particular areas so as to sustain its loyal consumers for a longer period of time. Along with this,
company is providing effective working environment to its employees so that better services and
facilities can be provided for attaining success in business (Congregado, Golpe and van Stel,
2014).
When it comes to increasing business activities it is crucial that Company makes
appropriate strategies and plan of action which can further be implemented for attaining success.
In relation with DCS Group, company is using its available resources like skilled technicians,
members of research and development etc., who are playing their crucial role for attaining their
set goals and targets. Apart form this, some of the other factors that can have an impact on
functions of a company are mentioned below for better understanding:
Financial resources: This is one of the important factors that are required by company
so that all the activities can be executed in an effective manner. Because without having
appropriate funds company cannot perform its different actions such as purchasing of raw
materials, allocation of resources etc., In terms of DCS Group, company also needs adequate
funds for operating its business activities and in order to do the same they are taking help from
banks and other financial institutions. Along with this, company has to think of saving more and
more funds from their business as they are running at small level (Crane and Matten, 2016).
Human resource and their skills and qualities: This is one of the crucial element that
monitor all the function of a company from recruitment to providing salary, compensation,
giving resources etc., Other than this, HR department can aid company in executing their plan in
appropriate manner. In relation with DCS Group, human resource department are making
effective policies and strategies for their business activities. Along with this, HR department is
aiding company with resources and they are providing requirements of other firms who have
hired DCS Group for providing eligible candidates for their organisation. In addition to make a
proper balance between activities Human resources department is giving appropriate training and
development skills so that employees can perform their task in a proper manner.
Goals vision and targets: Every company has its vision according to which gaols and
targets are achieved. Thus, in case of DCS Group their vision is to increase the market share upto
12% under the duration of six months so that profitable and manageable growth can be attained
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