Considerations for Small Business and Social Enterprise Resource Allocation

This report discusses the considerations that small businesses and social enterprises need to address when planning and allocating resources to achieve their business objectives. It covers topics such as mission and vision, flexibility, financial resources, skills and quality of human resources, and control. The report also includes a discussion on customer resources management (CRM) and its main areas, as well as the benefits and drawbacks of developing a business transnationally. Additionally, it provides a cash flow forecast, explains how break even analysis is applied to enterprise, and discusses legislation and regulations that impact small businesses.

MANAGING AND
RUNNING A SMALL
BUSINESS

Table of Contents
TASK 1.................................................................................................................................................3
P1 Explain considerations of small business or social enterprise needs to address when planning
and allocating resources to achieve business objectives....................................................................3
TASK 2.................................................................................................................................................5
P2 Discuss CRM and explain the main areas within the customer resources management and
provide benefits & drawbacks of each area.......................................................................................5
P3 Define the transnational development. What are the benefits and Drawbacks of business
developing transnationally? Then create a SWOT analysis on the idea developing transnationally.. 6
TASK 3.................................................................................................................................................7
P4 Produce annual monthly cash flow forecast showing fixed and variable costs.............................7
P5 Explain how break even analysis is applied to enterprise.............................................................9
P6 Interpretation on key financial statements of a company for contribution in successful
management.....................................................................................................................................10
TASK 4...............................................................................................................................................11
P7 Discuss legislation & regulations that have impact on small businesses....................................11
CONCLUSION...................................................................................................................................14
REFERENCES....................................................................................................................................15
Books & Journal:.............................................................................................................................15

INTRODUCTION
Organisation runs business with motive of earning profit for longer period of time. In
this competitive era, it is essential to use resources in specific manner so that it becomes easy
to use them in future perspectives. Small business and social enterprise contributes at large
extent in economy. In this dynamic market, it is important to develop and introduce
innovation so that entrepreneurs are able to survive in market. DCS group, a leading small
business which is supermarket headquartered in UK and provides variety of goods and
products. This report comprises of allocation of resources, process of CRM, transnationally
business- advantage and limitations, cash flow forecast, break even analysis and financial
statements of organisation. Both social enterprise and small business are the main reason for
economies growth as well as overall development.
TASK 1
P1 Explain considerations of small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives
In a country like UK, small business plays major role in enhancing and changing
status of economy. It is often said that, in between 2015 and 2018 business grew up by 3.5 %
including mostly small business. Resources allocation is crucial for every enterprise because
they are to be used in effective manner so that scarcity does not occur in future. To achieve
goals and objectives in business it is said that resources are to be used whenever there is need
or requirement (Corazza, 2019).
In relation with DCS Group, it is they use their resources such as capital, employees,
raw materials in most effective and efficient manner. HR manager of firm make ensures
these are used in optimum manner. So, there are five elements which are considered by every
firm and are discussed below-
Mission, vision and targets: In an organisation, it is crucial to analyse and examine
the mission & vision of company so that it becomes easy for them to determine which
resources is most appropriate for achieving future goals. Through this, time and money saved
by management which is then used in core activities. In context to chosen entity, they main
vision is to access global market and deliver a change. Main mission is to provide quality of
goods & services to customers so that profitability increases. Thus, they are aware about their
need and requirements which makes them efficient in using their resources properly
(Elkoussa, 2019).

Flexibility: Then arises the flexibility which is also considered as resources and is
used in firm for proper functioning of business. Flexibility is important part of organisation as
because through this results and changes are adopted. It refers to making modification or
changes easily without any issue or problem. In relation with DCS Group, moderate level of
flexibility is available in the firm which is used as way of determining and examining phases
of productivity, operations where resources are to be used or not.
Financial resources: In every business, there is need as well as requirement of capital
at every aspect. No company can run their activities without using financial resources. This is
because to run functions as well as operations, there always need of money so that necessary
materials are acquired. In relevance with DCS Group, they also do use their financial
resources in such a way that everything run in smooth manner. Further, finance and audit
team of entity make ensures that all minimum amount of capital is present in the company for
emergency use. This helps them to take decision in proper manner so that conflicts do not
occur ( Doyle, 2018).
Skills and quality of human resources: Then comes the skills which are necessary
in every employee and in management so that work is done in effective way. Without skills
& quality of HR it is not possible for any corporation to achieve their goals within a period of
time. Further, it is also required to focus on HR quality because they are responsible for
managing, hiring, selecting and paying salary to employees. Thus, it is essential to hire the
skilled personnel so that profitability is increased. So, selected enterprise has knowledgeable
subordinates and well organised human resource which deliver efficient work output (Chen,
2019).
Control: In this, main focus is on control of firm which means that it is also important
to have control on decision making and other related activities of business so that all
everything is conducted properly. If there is no control over business operations then chances
of errors may arise and slow down the growth as well as development.
After analysing the above matter, it is examined that to achieve objectives it crucial to
have proper knowledge of resources and other elements which are specified in the above
paragraph. Thus, skills and expertise are to be used when allocating resources.

TASK 2
P2 Discuss CRM and explain the main areas within the customer resources management and
provide benefits & drawbacks of each area.
CRM is also as customer resources management which is defined as method through
which firm manages potential and current customers relationships as well as data. By using
this approach, entities are able to enhance trust of their customers and which leads to
increased productivity & profitability. Thus, DCS Group manager assures that every
employee in organisation maintain appositive relationship with their clients and customers.
This is done by taking feedback from old and new customers so that there demand and
expectations are recorded properly.
Portfolio Analysis- It is framework which is used by enterprises to analyse and
determine the customer’s value and market structure. Through this, it assist firm to evaluate
and identify end users based on demographic, psychographics etc. In relation with selected
brand, management uses and develop customer portfolio so that analysis is done
appropriately (Ihde, 2019).
Advantages: This assists enterprise to identify and examine their customer
purchasing decision and power which is then used at right time.
Disadvantage: This tool does not deliver exact or reliable information because it is
not necessary that customer will perception will be the same as before (Bretschneider, 2020).
CLM- It is also known as customer lifecycle management which is adopted by
corporation with motive of managing end users appropriately. It is continuous process and is
executed in systematic way. Thus, in context of chosen entity they use this tool so that
goodwill, sales and profit of enterprise increases.
Benefits- Main advantage sis that through this tool firm is bake to develop
relationship between the organisation & end users.
Limitations- Proper market research & accurate information is required by
management. It does not give exact credentials related to customer’s behaviour or their
attitude.
The above paragraph depicts that CRM is an crucial tool which is to be adopted by
firms with proper considerations so that accurate analysis is done on customers preferences
and demands. Through this, new ideas and opportunities are explored at larger level.

P3 Define the transnational development. What are the benefits and Drawbacks of business
developing transnationally? Then create a SWOT analysis on the idea developing
transnationally.
Transnational refers to a process through which firm sell their product and good
worldwide with motive of earning more profit and increasing sales revenue of entity. Most of
companies adopt this method to access global market and enhance their productivity of entity.
Transnational strategy is type of strategy in which corporation operates their functions &
operation at global level to take competitive advantage. This means that entities export their
products as well as services to other countries. In this, risk associated with this strategy is
high and manager of company ensures that everything is done in appropriate manner.
Limitations-
 When going with this strategy, main problem is that it requires huge capital amount
and time. In business, these are two most crucial factors of sustainability.
Also, in transnationally resources are required as well as used at wider and broader level.
In relation with DCS Group, as they provide groceries products more resources are required
for doing business transnationally (Graham, 2020).
SWOT Analysis
It is framework which is used by marketers to determine and identify the factors
which affects the growth of business and is also used for analysing micro environment. To
conduct this accurate information is needed regarding the market.
STRENGTH
 By using transnational tool sales and
profitability increases of firm.
 Further, this also enhances enterprise
capital and which is beneficial for
DCS Group. (Drake, 2019).
WEAKNESS
 While adopting this, resources are
used at larger level.
 Also, in such strategies fir loses
control over business operations and
functions in other countries.
OPPORTUNITY
 Through this tool, entity has
opportunity to develop their customer
base.
THREATS
 In this, to implement it successfully
efficient manpower is needed at
different locations and which is
problem for home based personnel.

From the above matter, it is analysed that when going with transnational ins and outs
of tools are to be known prior. This is essential as it helps in using resources in most effective
manner so that they are used efficiently and could be used in future perspectives too.
TASK 3
P4 Produce annual monthly cash flow forecast showing fixed and variable costs
CASH FLOW- It is statement which is used by firm to analyse and evaluate the flow
of cash during the period of time. It is time consuming process and is to be used at wider
scale. In cash flow, all transactions are recorded and examined in proper manner (Borodin,
2019).
Budgeting, planning and forecasting:
The performance of the enterprise relies on these elements so that they can have
appropriate funds that can be used for making effective plans related to budget and
forecasting. In relation DCS Group, they use budgeting so that how money and resources can
be used is planned. Forecasting is defined as predicting and determining the future cost by
analysing and comparing the historic as well as current cost (Liebregts, 2019).
Balance Sheet, cash flow statement, profit and loss account of DCS Group Company:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 120 220
Stock 30 45
Debtors 80 65
Bank 30 35
Total 230 340

Creditors 130 150
Bank overdraft 80 50
Total 670 905
Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 40 60
Cost of sales 20 17
Gross profit 20 43
Overheads 8 9
Net. Profit 12 34
Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 28000 30250 31550 29650 28750
Budgeted cash receipts 13400 37550 64690 92370 118170
Total cash available 41400 67800 96240 122020 146920

Cash distributed
Direct material 1500 1050 1650 1500 1550
Direct labour 1300 660 850 850 680
Overhead 500 650 630 700 670
Selling and distribution 550 750 740 800 760
Total cost use 3850 3110 3870 3850 3660
Cash surplus/ deficit 37550 64690 92370 118170 143260
P5 Explain how break even analysis is applied to enterprise
Break even analysis- It is tool which is adopted firm to entities to analyse and
determine the profit ratios and situation of different aspects. It is also considered as no gain
and no loss analysis. In this, decision making is done in proper way so that correct measures
are known (Zainal, 2019).
The enterprise have adopted algebraic method which will help in making decision
appropriately for various difficult situations-
It is calculated as follows-
Break even quantity= TFC/ (P -AVC)
TFC= Total fixed cost
AVC= Average variable cost
P- Price
Advantages-

It helps in predicting the change and uncertain situation in advance. This is helpful for
business as strategies and tactics can be prepared after going through this analysis
(Ramanujan, 2019).
 Also, it assists in analysing fixed as well as variable cost so that cash flow statement
of company is prepared in proper way.
 Furthermore, it gives an overview of assuming that all sales costs are constant.
In relevance with DCS Group they use this analysis to make decision making more
effective and suitable. It is responsibility of finance department of firm to assure that
it is done through proper use of charts, graphs, presentations, etc.
 With help of breakeven analysis, resources and money of management is used in
optimum way which also leads to reducing wastage of resources.
 Then, it also assists in developing financial position of enterprise by giving the
accurate statistics about sales and profit.
After analysing the above matter, it is specified that BEA is important tool for business
and requires high level of knowledge and skills to implement it. Thus, consideration is to be
focused so that conflicts or errors do not arise (Elkoussa, 2019).
P6 Interpretation on key financial statements of a company for contribution in successful
management
In business sector, market is dynamic and is developing at rapid level. This results in
increase in competition, more new businesses and development of economy. In country,
small business gives a boost to the enterprise and productivity. The ratio of such businesses is
increasing at rapid rate. Moreover, when preparing such statements accounting knowledge is
to be used at depth so that all process is carried out effectively.
So various financial statements are used by DCS Group & are mentioned below-
Balance sheet- It is financial statement which is defined as process of recording
business assets, liabilities, equity and classify them into related place. With help of balance
sheet, it becomes easy to evaluate firm position. In this, it is prepared with separate accounts
and sub-accounts are placed accordingly (Corazza, 2019).
Cash flow- It is process through which analysis is done of outflow and inflow of cash
to determine and know the situation level of business in appropriate manner. In relation with
selected firm, manager of company cross checks all the inflow of cash and vice versa. It is
mostly used for month period and on yearly basis.

Profit and loss- It is also type of statement which is depicts the cost, expenses, profits
which occur during the period of time. Through this, it becomes easy to analyse the financial
position of corporation. Thus, DCS Group make decisions after analysing the P& L and then
implement strategies and tactics.
After a brief interpretation of above financial statements it is seen that to run functions
and operations of business smoothly it is necessary to consider these statements as priority
because they helps in growth as well as overall development ( Doyle, 2018).
TASK 4
P7 Discuss legislation & regulations that have impact on small businesses
Legislations and laws are crucial which are to be considered top priority because rules
and regulations are defined which are helpful for managing business. In relevance with DCS
Group, legal department of firm is well aware about all legislations and are followed by them
at wider scale. Also, these are changeable by government and proper awareness is to be given
so that changed legislations are also modified within a enterprise.
These are essential because they establish discipline and protect citizen of society.
Further, it is also analysed that transactions in corporation are recorded at both aspects online
& offline. But it is also seen that not all the transactions are recorded and which creates need
for legislation in organisations. There are various types of regulations and which are
discussed below-
Consumer Law: This law was established with motive to protect an individual from
unfair practices that is occurred at the time of transaction from a people and the organisation.
Also, in this law it helps buyers from getting miss-treated or misbehaved from sellers. Thus,
DCS Group always respects the customers and provides them products with quality (Chen,
2019).
Employment Law- This is also a type of law which depicts that employees in the
enterprise are to be freedom of expression, respectful position which is their right. In this,
main focus is on personnel who are base of entities and increases productivity as well as
enhance profitability. In relevance with DCS Group, they follow this law so that efficient and
deserving employees are being hired and salary is given to them on time (Bretschneider,
2020).
Data Protection- This is act in which it states that information and data of every
customer is to be protected. Under this, it is duty of corporation to safe and secures the

personal data of every customer. Thus, selected firm uses advance technology and online
management system to protect the credentials of every user so that trust stays in between both
the parties.
Healthy and safety act- This states that health and safety of citizen of society are to be
considered as top priority. This means that firm should provide customers with quality of
products and goods so that they remain healthy and safe. Any low quality products need not
to produce otherwise actions are taken against that company. In relation with DCS Group,
they provide and deliver high quality of goods by using natural resources and ingredients.
This results in increase in goodwill and develops relationship between both the parties
(Graham, 2020).
Thus, after analysing the above paragraph, it is examined that a firm without following
legislations and regulations cannot survive in market for longer period of time. It also assists
in saving form government threat and running business smooth. Furthermore, awareness is
also to be created in management about such laws so that people becomes responsible for
their own and others too (Ihde, 2019).

CONCLUSION
After analysing the above report, it is concluded that managing small business is not easy
task and require a deep understanding of market and other factors which have an impact on
business. Further, appropriate tools are used such as SWOT Analysis and transnationally tool
for better results. Then, it is also analysed that cash flow and other financial; statements are
crucial for every small business. Therefore, decision making is to be done properly so that
conflicts do not occur. With help of legislations, company can enhance their management
level and customer base in market.

REFERENCES
Books & Journal:
Elkoussa, 2019. Managing Small Business Human Resources: An International Approach.
Corazza, 2019. Managing Small Business Social Responsibility (SBSR) in Formalized
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Methodologies, Tools, and Applications(pp. 1031-1052). IGI Global.
Doyle, 2018.System and method for managing financial transactions based on electronic
check data. U.S. Patent Application 15/837,207.
Chen, 2019.Allocating a global resource in a distributed grid environment. U.S. Patent
10,360,074.
Bretschneider, 2020.Pre-allocating cache resources for a range of tracks in anticipation of
access requests to the range of tracks. U.S. Patent Application 16/653,903.
Ihde, 2019, September. Optimized resource allocations in business process models.
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Cham.
Graham, 2020.The interpretation of financial statements. EDITORA BIBLIOMUNDI
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Drake, 2019. Disclosure Overload? A Professional User Perspective on the Usefulness of
General Purpose Financial Statements.Contemporary Accounting Research,36(4),
pp.1935-1965.
Borodin, 2019. The impact of the publication of non-financial statements on the financial
performance of companies with the identification of intersectoral
features.Entrepreneurship and Sustainability Issues,7(2), pp.1666-1685.
Liebregts, 2019. Employment protection legislation and entrepreneurial activity.International
Small Business Journal,37(6), pp.581-603.

Zainal, 2019. Analysis of CSR Legislation in Indonesia: Mandate to Business.Business and
Economic Research,9(3), pp.165-181.
Ramanujan, 2019. Impact of e-Commerce Legislations on Business.
Dutta, 2019.Integration system between a customer relationship management platform and
an application lifecycle management platform. U.S. Patent Application 15/970,345.
Donoghue, 2019. Product Lifecycle Management Business Transformation in an Engineering
Technology Company. InProduct Lifecycle Management (Volume 4): The Case
Studies(pp. 185-200). Springer, Cham.