Managing and Running a Small Business Enterprise Doc
Added on -2020-07-22
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Managing and Running aSmall Business Enterprise
ContentsINTRODUCTION.....................................................................................................................................4TASK 1.......................................................................................................................................................4P1 Main consideration a small business needs to address when planning and allocating resources.........4TASK 2.......................................................................................................................................................5P 2 & 3 Different process of customer relationship management............................................................5TASK 3.......................................................................................................................................................6P4 Monthly cash flow statement showing fixed and variable cost...........................................................6P5 Break-even analysis............................................................................................................................9P6 Interpret key financial statement for an organization..........................................................................9TASK 4.....................................................................................................................................................10P7 Key regulation and legislation that have implication on social enterprise........................................10CONCLUSION........................................................................................................................................11REFERENCES........................................................................................................................................12
INTRODUCTION Small scaled Enterprises are normally run and managed by their members only and have small market share. Classification of such type of businesses the basis of turnover, employee’s performance and asset of the company. These enterprises play great role in an economic growth and development of a particular country. Like large scale organization, it is equally important forsmall scale enterprises formulate and implement effective strategies to accomplish predeterminedgoals and objectives. The selected company for this report is Rowlinson Knitwear which is a small sized company deals in providing school and corporate wear clothes. It mainly covers allocation of resources and goals and objectives, application of break-even analysis, key employment legislation, customer relationship management process and financial statement and its benefits.TASK 1P1 Main consideration a small business needs to address when planning and allocating resources Small scale enterprises normally run their operation at small level but still various factors that possess an impact either positive or negative on their overall business activities and profitability ratio. For attaining business objective in an effective manner, it is primarily important for small scale enterprises those elements and take corrective measures in order to control them. Rowlinson Knitwear small scale manufacturing firm that deals in producing clothes like school wear, office wear etc. As the company is operating on small level, they do nothave adequate amount of resources that is needed to offer its clothes directly to target customer. This the main reason why the company is taking the help of or need the assistance of distributor and retailer for supplying it's good to ultimate customer. The main focus of firm is to manufacture high quality clothesat reasonable rate and offer to potential buyer at an economical price that creates value for them. For running business in an effective and efficient manner it is important to taken into account all those factors but either have direct or indirect impact on overall operation and functions of the company. Following are some major factor needs to be taken into consideration while planning for business process and formulating future actions are discussed below:Financial resources: Availability of funds plays crucial role in any organization. In fact the entire working of a company depends upon their financial resources. Without this any business firm cannot survive in the market. Adequate amount of funds ensure effective implementation of business activity and also provide better results to the company in terms of managing and controlling day to day operation. On the contrary, lack of adequate funds create disturbance or may hamper the work. As a result in delay of commercial activities and also decreasing the effectiveness of workflow. Before planning for its business activities and operation, Rowlinson Knitwear analyze their financial accounts and report such as cash flow statement balance sheet profit and loss account so as to determine their performance throughout the year. It can also be measured on monthly and quarterly basis. After analyzing financial reports, it become easier for their manager to interpret about the availability of fund and highlight the financial capability of the respective company. In addition to that, managers can also provide information related with inflow and outflow of cash. With the help of this we can easily plan its future action and formulate effective strategies for the same.Vision, objectives and goals: Vision statement can be defined as firm's long-term objectives or it define the company wants to see themselves in future years or upcoming year. It also indicates
what is the main focus of the company is. The first and foremost role of any company is to set their goals, objectives and vision statement so that they can formulate effective strategies for the same. These three play key role in organizational growth and success. One of the main advantageof this is it help in making manager understand where the company wants to go and what they want to achieve in the coming years. Goals and objective of any company indicates their potential and capability. Once the goal objective and vision statement is decided managers can take necessary steps or action in order to accomplish it in an effective and efficient manner. For example: Vision statement of Rowlinson Knitwear is to manufacture is to manufacture high quality clothes and delivers the same to customer at an affordable price. For attaining this properly, the company needs to focus more on producing high quality product that creates value for customer and also they need to laid stress on using effective methods and techniques in order to achieve their predefined vision in a structured manner.Employees and their skill: Employees are considered as the main asset of any organization. Theentire profitability and success of any company depend upon how effectively and efficiently theiremployees are contributing towards achieving organizational goals and objectives. They play significant role in a business enterprise. The one who perform all task and plays various role in a company and work incredibly hard towards accomplishing business objectives. In fact, business can gain high competitive advantage over its rivals with its skilled and competent personnel. They also assistant formulating business plan and strategies as well. When a company is having skilled employees, chances of attaining higher profitability ratio substantially increases. Howeverin case of lack of skilled and knowledgeable employees there can be delay in completion of business operation that impact adversely on overall performance of the company. In order to dealwith such kind of situation, company arrange training and development session for their employees which help them in improving their overall performance and productivity in a significant manner. Similarly, Rowlinson Knitwear also conduct training and development program for their workers so that they can sharp their skill and knowledge in more effective manner. Also the company believes in putting right worker at right place as per their skills and competency and at right time. TASK 2P 2 & 3 Different process of customer relationship management Customer relationship management can be defined as a process through which organization learns more about their target customer and tries to improve marketing productivity.The main objective of any company is to drive maximum profitability from its strong customer base and this can only become possible if the company is well aware of all likes and dislikes of potential customers so that they can provide for products or services accordingly. Customers are known as the king of the market. Thus entire profitability and growth of company depend upon how they meet customer requirement by providing them such products or services that create higher value for them. It also help in gaining high competitive edge in the market and also contribute in its long time success. Rowlinson Knitwear analyze the past data related with customer likes and dislikes so ask to figure out their current behavior and preferences. This help company in knowing what are the choices of customers regarding clothing. Once the company is done with analyzing what are the actual needs and wants customer, they can start formulating strategies accordingly but ultimately helping increasing the sale of respective product. There are various platform through which company can establish strong relationship with customer such astelephone, social networking site, email, face to face interaction etc. The customer relationship
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