Managing and Running a Small Business
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This document discusses the main considerations for planning and allocating resources in a small business or social enterprise. It also explores different processes of customer relationship management and the benefits and drawbacks of developing transnationally. Additionally, it provides an annual itemized monthly cash flow forecast and interpretation of key financial statements.
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Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives...............................3
TASK2.......................................................................................................................................5
P2 Explain and evaluate different processes of customer relationship management for a
small business or social enterprise.........................................................................................5
P3 Explain how a small business can develop transnationally and determine the benefits
and drawbacks........................................................................................................................6
TASK3.......................................................................................................................................7
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable
costs set against income for a specific organisation...............................................................7
P5 Explain how break-even analysis could be applied to an organisational situation...........7
P6 Interpret key financial statements for an organisation in relation to how they contribute
to the successful management of the organisation.................................................................8
TASK 4......................................................................................................................................9
P7 Discuss key legislation and regulations that have implications on small businesses or
social enterprises....................................................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books and journals...............................................................................................................11
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives...............................3
TASK2.......................................................................................................................................5
P2 Explain and evaluate different processes of customer relationship management for a
small business or social enterprise.........................................................................................5
P3 Explain how a small business can develop transnationally and determine the benefits
and drawbacks........................................................................................................................6
TASK3.......................................................................................................................................7
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable
costs set against income for a specific organisation...............................................................7
P5 Explain how break-even analysis could be applied to an organisational situation...........7
P6 Interpret key financial statements for an organisation in relation to how they contribute
to the successful management of the organisation.................................................................8
TASK 4......................................................................................................................................9
P7 Discuss key legislation and regulations that have implications on small businesses or
social enterprises....................................................................................................................9
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books and journals...............................................................................................................11
INTRODUCTION
Motive of every organisation within a business market is to earn the profit and retain
its operation for longer period of time. In the current competitive markets, what is important
for the organisation to use its resources in an appropriate manner by which it can increase its
market share as well as retain its business for longer period of time. In the present economy,
contribution of small scale business is increasing continuously which also acting as an
important part for development of these businesses as they are based on innovative ideas and
entrepreneurship qualities(Steingold and Steingold,2019). In current report DCS group a
leading small business which is also had quarter situated in UK provide services in
supermarket. It also provide different type of goods and services within it supermarket. The
present report is based on the small scale of social enterprises needs where the planning and
allocation of resources will be determined.in the beginning of the report there is discussion
about this resources as well as customer relationship management within an organisation.in
middle of this report there is discussion about the transitional development and its drawbacks
by creation of a SWOT analysis. There is also a discussion about the annual monthly cash
flow forecast the break-even analysis of the organisation as well as the interpretation of the
some key financial statements which will identify the success of management. In last, there is
discussion about legislation and regulation that have impact on the small scale businesses
with a small conclusion.
MAIN BODY
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives.
Small scale businesses are the important part of UK economy as they play a major
role in contribution towards the GDP as well as help in providing different benefits to the
economy and society. This can be said that, small scale businesses increase their contribution
by 5% from the year 2005 to 2018 in the economy of UK as well as they also build up
various resources and provide proper output to the economy for increasing its welfare as well
as achieve in the objectives(Burns, 2016). DCS group is one of them, in context of this group
it is use different type of resources which are related to capital employ raw material and many
other things in an effective manner where the HR manager of the firm will ensure that these
resources will be used in appropriate manner so that form can achieve its objectives as well as
increase its market share within the economy. Discussion about the core five elements of an
organisation or a DCS group is discussed below:
Mission, vision and target: this is very important for the organisation to clearly
identify examine and prepare its mission and objectives within the competitive environment
for gaining the advantage as well as defining the rule of each and every individual within the
organisation to achieve these missions vision and targets. Therefore, this will help the
organisation in saving its time money as well as resources by properly management of each
and every activity(Tidd and Bessant, 2018). In context of DCS group, it also has a clear
Motive of every organisation within a business market is to earn the profit and retain
its operation for longer period of time. In the current competitive markets, what is important
for the organisation to use its resources in an appropriate manner by which it can increase its
market share as well as retain its business for longer period of time. In the present economy,
contribution of small scale business is increasing continuously which also acting as an
important part for development of these businesses as they are based on innovative ideas and
entrepreneurship qualities(Steingold and Steingold,2019). In current report DCS group a
leading small business which is also had quarter situated in UK provide services in
supermarket. It also provide different type of goods and services within it supermarket. The
present report is based on the small scale of social enterprises needs where the planning and
allocation of resources will be determined.in the beginning of the report there is discussion
about this resources as well as customer relationship management within an organisation.in
middle of this report there is discussion about the transitional development and its drawbacks
by creation of a SWOT analysis. There is also a discussion about the annual monthly cash
flow forecast the break-even analysis of the organisation as well as the interpretation of the
some key financial statements which will identify the success of management. In last, there is
discussion about legislation and regulation that have impact on the small scale businesses
with a small conclusion.
MAIN BODY
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives.
Small scale businesses are the important part of UK economy as they play a major
role in contribution towards the GDP as well as help in providing different benefits to the
economy and society. This can be said that, small scale businesses increase their contribution
by 5% from the year 2005 to 2018 in the economy of UK as well as they also build up
various resources and provide proper output to the economy for increasing its welfare as well
as achieve in the objectives(Burns, 2016). DCS group is one of them, in context of this group
it is use different type of resources which are related to capital employ raw material and many
other things in an effective manner where the HR manager of the firm will ensure that these
resources will be used in appropriate manner so that form can achieve its objectives as well as
increase its market share within the economy. Discussion about the core five elements of an
organisation or a DCS group is discussed below:
Mission, vision and target: this is very important for the organisation to clearly
identify examine and prepare its mission and objectives within the competitive environment
for gaining the advantage as well as defining the rule of each and every individual within the
organisation to achieve these missions vision and targets. Therefore, this will help the
organisation in saving its time money as well as resources by properly management of each
and every activity(Tidd and Bessant, 2018). In context of DCS group, it also has a clear
vision to access the global market and deliver a proper change within the market. The mission
of DCS group is to provide quality goods and services to the customers for satisfaction of
their needs as well as increasing the profitability within the organisation. This all make it
possible for the DCS group to know their needs and requirement which also make the
efficient use of resources in the market.
Flexibility: flexibility is important part of every business as it helps the business in
changing its policy according to the changes within a dynamic environment. The flexibility
arises when it is considered as a resource within the organisation and used in the functions of
the form for reducing the negative impact of dynamic environment. In context of DCS group,
company always prefer the flexibility within the organisation where the determine the
different phases of productivity operation as well as management of resources within the firm
to reduce the negative impacts and make their policies stronger(Brulin and Svensson, 2016).
Financialresources: financial resources are important part of the business as they
help the business in running its operation and actors and batman for other functions within
the organisation. They play the key role in determining the activity of the other sectors of
organisation. Because money is the necessary item to run the different operations as well as
manage them according to the requirements. In reference to DCS group, company have solid
financial resources with N8 wear it directly invite the investor to invest in the organisation by
the help of its financial statements(Park, 2018). Always use a financial audit of its account
which make the trust of investor within the organisation more stronger because of the
continuous at auditing by the authority liable for that. This will help organisation in
increasing the interest of investor as well as maintaining their benefit towards the
organisation in an appropriate manner where the finance related decision can be taken.
Quality and skills of human resources: human resources also actors in backbone for
the organisation because they provide different facility to the organisation where it can
perform the operations and run the organisation for longer period of time with continuous
profitability. in context of DCS group it always prefer the qualified and skilled human
resources within the organisation where it is used to provide a proper training and
management to the employees where they can increase their skills and quality. this group also
prepare a proper hiring as well as recruitment process where it select those candidate who
have effective skill in quality because it provide a effective pay. so human resources are the
important part as well as resources of the organisation which help in increasing the output of
the firm(Spence, 2016).
Control: control is also an effective resource for every organisation because it helpsin
reducing the wastage as well as improves the process of decision making within the
organisation related to different activities so that efficiency can be achieved. Is there is no
control over the business operation within the organisation then it will lose the process of
decision making as well as bring the chaos situation within the organisation(Le Roy and
Czakon, 2016).
of DCS group is to provide quality goods and services to the customers for satisfaction of
their needs as well as increasing the profitability within the organisation. This all make it
possible for the DCS group to know their needs and requirement which also make the
efficient use of resources in the market.
Flexibility: flexibility is important part of every business as it helps the business in
changing its policy according to the changes within a dynamic environment. The flexibility
arises when it is considered as a resource within the organisation and used in the functions of
the form for reducing the negative impact of dynamic environment. In context of DCS group,
company always prefer the flexibility within the organisation where the determine the
different phases of productivity operation as well as management of resources within the firm
to reduce the negative impacts and make their policies stronger(Brulin and Svensson, 2016).
Financialresources: financial resources are important part of the business as they
help the business in running its operation and actors and batman for other functions within
the organisation. They play the key role in determining the activity of the other sectors of
organisation. Because money is the necessary item to run the different operations as well as
manage them according to the requirements. In reference to DCS group, company have solid
financial resources with N8 wear it directly invite the investor to invest in the organisation by
the help of its financial statements(Park, 2018). Always use a financial audit of its account
which make the trust of investor within the organisation more stronger because of the
continuous at auditing by the authority liable for that. This will help organisation in
increasing the interest of investor as well as maintaining their benefit towards the
organisation in an appropriate manner where the finance related decision can be taken.
Quality and skills of human resources: human resources also actors in backbone for
the organisation because they provide different facility to the organisation where it can
perform the operations and run the organisation for longer period of time with continuous
profitability. in context of DCS group it always prefer the qualified and skilled human
resources within the organisation where it is used to provide a proper training and
management to the employees where they can increase their skills and quality. this group also
prepare a proper hiring as well as recruitment process where it select those candidate who
have effective skill in quality because it provide a effective pay. so human resources are the
important part as well as resources of the organisation which help in increasing the output of
the firm(Spence, 2016).
Control: control is also an effective resource for every organisation because it helpsin
reducing the wastage as well as improves the process of decision making within the
organisation related to different activities so that efficiency can be achieved. Is there is no
control over the business operation within the organisation then it will lose the process of
decision making as well as bring the chaos situation within the organisation(Le Roy and
Czakon, 2016).
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TASK2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise.
Customer relationship management can be defined as an approach which is related to
the current and potential customer of the organisation.it include the data analysis about the
customer by identifying their history with the company and improve the business relationship
with the customer by directly focusing on the customer relationship and ultimately driving
the sales growth within the organisation that satisfy the needs of the customer(Turner and
Endres, 2017). In context of DCS group, it is also following a proper customer relationship
management within the organisation where it use two types of Framework within the
customer relationship management to get the various benefits of increase the sales as well as
loyalty with the customers of the organisation. There are two types of methods which can be
used for customer relationship management by the organisation which are stated below:
Portfolio analysis: it can be defined as that Framework which is used by the
organisation to identify and determine the customer value and market structure where it is
trading.by the help of this product the company can assist to evaluate and identify the last
user of their products on the basis of demographic psychologies and many other factors
related to consumer behaviour. This is also appropriate for selecting the brand management
uses and developing the customer portfolio so that it can be analysed for the future period of
time(Chen, Hanson and Stein, 2017).
Advantage: this method help the organisation in identifying and examining different
customers and identification of their purchasing decisions and power within the market.
Disadvantage: the major disadvantage of this tool is that it does not provide a real stick
information to the organisation because it is difficult to judge the behaviour of individual
within the market.
Customer lifecyclemanagement: it is also a method which can be used for managing
the customer relationship between the organisation and customers where in this method the
cooperation with the motive to managing the end-user appropriately is focus.it is a continuous
process which include a systematic way where the organisation have to choose a proper tool
to maintain its good will increase the sale as well as profitability you for the interest of
organisation(Trevino and Nelson, 2016).
Benefits: The main advantage of this system is that it is a proper tool which help organisation
for longer period of time where organisation can target the end user.
Limitation: the major drawback of this system is that it is difficult to maintain the customer
for longer period of time because of changing minds and innovative ideas within the different
organisations in the market so customer doesn't provide their full privacy to the organisation
which makes it ineffective.
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise.
Customer relationship management can be defined as an approach which is related to
the current and potential customer of the organisation.it include the data analysis about the
customer by identifying their history with the company and improve the business relationship
with the customer by directly focusing on the customer relationship and ultimately driving
the sales growth within the organisation that satisfy the needs of the customer(Turner and
Endres, 2017). In context of DCS group, it is also following a proper customer relationship
management within the organisation where it use two types of Framework within the
customer relationship management to get the various benefits of increase the sales as well as
loyalty with the customers of the organisation. There are two types of methods which can be
used for customer relationship management by the organisation which are stated below:
Portfolio analysis: it can be defined as that Framework which is used by the
organisation to identify and determine the customer value and market structure where it is
trading.by the help of this product the company can assist to evaluate and identify the last
user of their products on the basis of demographic psychologies and many other factors
related to consumer behaviour. This is also appropriate for selecting the brand management
uses and developing the customer portfolio so that it can be analysed for the future period of
time(Chen, Hanson and Stein, 2017).
Advantage: this method help the organisation in identifying and examining different
customers and identification of their purchasing decisions and power within the market.
Disadvantage: the major disadvantage of this tool is that it does not provide a real stick
information to the organisation because it is difficult to judge the behaviour of individual
within the market.
Customer lifecyclemanagement: it is also a method which can be used for managing
the customer relationship between the organisation and customers where in this method the
cooperation with the motive to managing the end-user appropriately is focus.it is a continuous
process which include a systematic way where the organisation have to choose a proper tool
to maintain its good will increase the sale as well as profitability you for the interest of
organisation(Trevino and Nelson, 2016).
Benefits: The main advantage of this system is that it is a proper tool which help organisation
for longer period of time where organisation can target the end user.
Limitation: the major drawback of this system is that it is difficult to maintain the customer
for longer period of time because of changing minds and innovative ideas within the different
organisations in the market so customer doesn't provide their full privacy to the organisation
which makes it ineffective.
From the above it can be evaluated that customer relationship management is important part
of every organisation and there are various tools within the market which can be used for
maintaining the proper customer relationship between organisation and customers.
Organisation can adopt the Spectre to increase opportunity with the market as well as grab
them for increasing its profitability and productivity(Direction, 2016).
P3Explain how a small business can develop transnationally and determine the benefits and
drawbacks
It is important for every organisation to develop transnationally for increasing its
business at global level where it can sell the goods and services to different nations for by
increasing its profitability as well as market share. Also provide the opportunity to the
organisation where it can manage its functions at global level where there are various
opportunities related to productivity within the work as well as minimization of the risk can
be done. There are various advantages and disadvantages of this function related to the
functioning of the organisation are mentioned below:
Advantages
Attract new customer: the first advantage of expanding the business to the organisation is
that it will attract new customers within the market as company provide product which will
match the needs and requirement of different customers and will help Organisation in
attracting these customers(Orpin, Judson and Davis, 2020).
Economy of scale: expanding the business of the organisation and spread the risk of
doing the business and reduces the potential of one product for one poor decision damage to
its business. This will also provide organisation opportunity where it can enjoy the economies
of scale because of large scale production.
Disadvantage
Capital requirement: major drawback of expansion of the business operation is that
it requires a large number of amounts of capital investment which is impossible for small
scale businesses to implement. This is because for expanding the business organisation have
to develop a infrastructure as well as a distribution channel within the area where it wants to
expand but this required the capital investment on these all items which is not effective for
the organisation and actors and disadvantage.
Large amount of resources: for increasing the business there is also requirement of
huge amount of resources which is impossible for and small scale organisation to Grab in a
limited market because of low capital and poor infrastructure.
Mentioned information it can be analysed that it is essential for the organisation to
expand its business at global level but there are some weaknesses which have to be
considered before launching the business at global level because it can you act activity on the
performance as well as reduces the chances of success and bring forces towards the
organisation.
of every organisation and there are various tools within the market which can be used for
maintaining the proper customer relationship between organisation and customers.
Organisation can adopt the Spectre to increase opportunity with the market as well as grab
them for increasing its profitability and productivity(Direction, 2016).
P3Explain how a small business can develop transnationally and determine the benefits and
drawbacks
It is important for every organisation to develop transnationally for increasing its
business at global level where it can sell the goods and services to different nations for by
increasing its profitability as well as market share. Also provide the opportunity to the
organisation where it can manage its functions at global level where there are various
opportunities related to productivity within the work as well as minimization of the risk can
be done. There are various advantages and disadvantages of this function related to the
functioning of the organisation are mentioned below:
Advantages
Attract new customer: the first advantage of expanding the business to the organisation is
that it will attract new customers within the market as company provide product which will
match the needs and requirement of different customers and will help Organisation in
attracting these customers(Orpin, Judson and Davis, 2020).
Economy of scale: expanding the business of the organisation and spread the risk of
doing the business and reduces the potential of one product for one poor decision damage to
its business. This will also provide organisation opportunity where it can enjoy the economies
of scale because of large scale production.
Disadvantage
Capital requirement: major drawback of expansion of the business operation is that
it requires a large number of amounts of capital investment which is impossible for small
scale businesses to implement. This is because for expanding the business organisation have
to develop a infrastructure as well as a distribution channel within the area where it wants to
expand but this required the capital investment on these all items which is not effective for
the organisation and actors and disadvantage.
Large amount of resources: for increasing the business there is also requirement of
huge amount of resources which is impossible for and small scale organisation to Grab in a
limited market because of low capital and poor infrastructure.
Mentioned information it can be analysed that it is essential for the organisation to
expand its business at global level but there are some weaknesses which have to be
considered before launching the business at global level because it can you act activity on the
performance as well as reduces the chances of success and bring forces towards the
organisation.
TASK3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation
Cash flow: cash flow is a statement which is used by the organisation to identify the
flow of cash within the organisation and its different operational activities. Important tool to
measure the flow of cash within the firm.
. cash flow statement:
Particulars
Jan
uar
y
Febr
uary
M
arc
h
Ap
ril
M
ay
Ju
ne
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nove
mbe
r
Dece
mbe
r
Cash receipts
(A)
Sales
500
00
500
00
50
00
0
50
00
0
50
00
0
50
00
0
40
00
0
40
00
0
5000
0
600
00
6000
0
6000
0
Bank loan
700
00
Total Cash
receipts (A)
120
000
500
00
50
00
0
50
00
0
50
00
0
50
00
0
40
00
0
40
00
0
5000
0
600
00
6000
0
6000
0
Cash payments
(B)
Purchases
600
0
600
0
60
00
60
00
60
00
60
00
50
00
50
00 6000
650
0 6500 6500
Machinery
purchase
200
000
Investment
150
000
Repayment of
loan
150
0
15
00
15
00
15
00
15
00
15
00
15
00 1500
150
0 1500 1500
Purchase of
cleaning
equipments
200
0
Long lasting
products
150
0
15
00
15
00
15
00 1500 1500
Rent
600
0
600
0
60
00
60
00
60
00
60
00
60
00
60
00 6000
600
0 6000 6000
Cleaner salary 800 800
80
0
80
0
80
0
80
0
80
0
80
0 800 800 800 800
Supervisor
salary
150
0
150
0
15
00
15
00
15
00
15
00
15
00
15
00 1500
150
0 1500 1500
Withdraw
300
0
42
00 4200
420
0 4200 4200
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation
Cash flow: cash flow is a statement which is used by the organisation to identify the
flow of cash within the organisation and its different operational activities. Important tool to
measure the flow of cash within the firm.
. cash flow statement:
Particulars
Jan
uar
y
Febr
uary
M
arc
h
Ap
ril
M
ay
Ju
ne
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nove
mbe
r
Dece
mbe
r
Cash receipts
(A)
Sales
500
00
500
00
50
00
0
50
00
0
50
00
0
50
00
0
40
00
0
40
00
0
5000
0
600
00
6000
0
6000
0
Bank loan
700
00
Total Cash
receipts (A)
120
000
500
00
50
00
0
50
00
0
50
00
0
50
00
0
40
00
0
40
00
0
5000
0
600
00
6000
0
6000
0
Cash payments
(B)
Purchases
600
0
600
0
60
00
60
00
60
00
60
00
50
00
50
00 6000
650
0 6500 6500
Machinery
purchase
200
000
Investment
150
000
Repayment of
loan
150
0
15
00
15
00
15
00
15
00
15
00
15
00 1500
150
0 1500 1500
Purchase of
cleaning
equipments
200
0
Long lasting
products
150
0
15
00
15
00
15
00 1500 1500
Rent
600
0
600
0
60
00
60
00
60
00
60
00
60
00
60
00 6000
600
0 6000 6000
Cleaner salary 800 800
80
0
80
0
80
0
80
0
80
0
80
0 800 800 800 800
Supervisor
salary
150
0
150
0
15
00
15
00
15
00
15
00
15
00
15
00 1500
150
0 1500 1500
Withdraw
300
0
42
00 4200
420
0 4200 4200
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Total Cash
payments (B)
370
800
158
00
17
30
0
15
80
0
17
30
0
15
80
0
16
30
0
19
00
0
2150
0
205
00
2200
0
2050
0
Net cash (A-B)
-
250
800
342
00
32
70
0
34
20
0
32
70
0
34
20
0
23
70
0
21
00
0
2850
0
395
00
3800
0
3950
0
C
Balance sheet
Liabilities Amount Assets Amount
Equity 6900 Accounts receivables 6100
Long term debt 2000 Equipment 615
Accounts payable 150 Bank account 2050
Other liabilities 1465 Closing stock 1750
10515 10515
Working Note:
Dat
e Particulars
Unit
s
Amoun
t £ Date Particulars
Unit
s
Amount
£
Purchases @ 75 17 1275 Sales @ 75 10 750
Purchases @ 95 5 475 Sales @ 75 3 225
Sales @ 75 4 300
Sales @ 95 2 190
Closing stock
@ 95 3 285
1750 1750
Budgeting planning and forecasting:
The performance of the Enterprises is directly related to these three elements within
the organisation which are budgeting planning and forecasting. They act as an important part
of financial statements of the organisation and provide the information to different
stakeholders for identifying the performance. In context of DCS group, it is also liable to
perform a proper budgeting planning and forecasting system within the organisation to
identify the different factors as well as make decisions according to them. This will provide
payments (B)
370
800
158
00
17
30
0
15
80
0
17
30
0
15
80
0
16
30
0
19
00
0
2150
0
205
00
2200
0
2050
0
Net cash (A-B)
-
250
800
342
00
32
70
0
34
20
0
32
70
0
34
20
0
23
70
0
21
00
0
2850
0
395
00
3800
0
3950
0
C
Balance sheet
Liabilities Amount Assets Amount
Equity 6900 Accounts receivables 6100
Long term debt 2000 Equipment 615
Accounts payable 150 Bank account 2050
Other liabilities 1465 Closing stock 1750
10515 10515
Working Note:
Dat
e Particulars
Unit
s
Amoun
t £ Date Particulars
Unit
s
Amount
£
Purchases @ 75 17 1275 Sales @ 75 10 750
Purchases @ 95 5 475 Sales @ 75 3 225
Sales @ 75 4 300
Sales @ 95 2 190
Closing stock
@ 95 3 285
1750 1750
Budgeting planning and forecasting:
The performance of the Enterprises is directly related to these three elements within
the organisation which are budgeting planning and forecasting. They act as an important part
of financial statements of the organisation and provide the information to different
stakeholders for identifying the performance. In context of DCS group, it is also liable to
perform a proper budgeting planning and forecasting system within the organisation to
identify the different factors as well as make decisions according to them. This will provide
different opportunity to the organisation where it can identify the cost of production as well
as the position of the organisation in the current time and what should be achieved in
future(Senderovitz, Klyver and Steffens, 2016).
P5 Explain how break-even analysis could be applied to an organisational situation
Break even can also define as a point where the organisation reaches at a situation
where are no gain and no loss to the firm on its operations. In context of DCS group the
organisation will adopt algebraic method which will help the firm in proper decision making
as well as appropriately finding the various difficult situations. Calculation Of this method is
stated below:
Break even quantity= TFC/ (P -AVC)
TFC= Total fixed cost
AVC= Average variable cost
P- Price
Advantages
There are various advantages of this method which are stated below and are directly
related to the performance of the organisation and productivity with between different
functions
ï‚· It help the organisation in analysing different cost which also include the fixed as well
as variable cost for us properly maintenance of cash flow statement within the
company
ï‚· it also provide overview of different sales cost within the organisation where the DCS
group can analyse this for making its decision making process stronger as well as
enabling different financial resources within the organisation to us for the
success(Amir, 2020)
ï‚· Furthermore it is also useful in identification of different resources related to the
management of Money and Finance within the firm where the organisation can work
in an optimum we so it will lead to reducing the wastage of resources
ï‚· This will also provide different benefits to the organisation where it can develop its
solid financial position within the entire organisation environment and acquired the
proper statistics about the sales and profit
From the above it can be concluded that break even analysis is the important tool for
the business which required skills and knowledge of the management staff within the firm
where the different calculation can be made as well as organisation can achieve its objectives
by reducing the conflicts as well as errors.
as the position of the organisation in the current time and what should be achieved in
future(Senderovitz, Klyver and Steffens, 2016).
P5 Explain how break-even analysis could be applied to an organisational situation
Break even can also define as a point where the organisation reaches at a situation
where are no gain and no loss to the firm on its operations. In context of DCS group the
organisation will adopt algebraic method which will help the firm in proper decision making
as well as appropriately finding the various difficult situations. Calculation Of this method is
stated below:
Break even quantity= TFC/ (P -AVC)
TFC= Total fixed cost
AVC= Average variable cost
P- Price
Advantages
There are various advantages of this method which are stated below and are directly
related to the performance of the organisation and productivity with between different
functions
ï‚· It help the organisation in analysing different cost which also include the fixed as well
as variable cost for us properly maintenance of cash flow statement within the
company
ï‚· it also provide overview of different sales cost within the organisation where the DCS
group can analyse this for making its decision making process stronger as well as
enabling different financial resources within the organisation to us for the
success(Amir, 2020)
ï‚· Furthermore it is also useful in identification of different resources related to the
management of Money and Finance within the firm where the organisation can work
in an optimum we so it will lead to reducing the wastage of resources
ï‚· This will also provide different benefits to the organisation where it can develop its
solid financial position within the entire organisation environment and acquired the
proper statistics about the sales and profit
From the above it can be concluded that break even analysis is the important tool for
the business which required skills and knowledge of the management staff within the firm
where the different calculation can be made as well as organisation can achieve its objectives
by reducing the conflicts as well as errors.
P6 Interpret key financial statements for an organisation in relation to how they contribute to
the successful management of the organisation
Thereare various financial statements within the organisation which are important for
the success of organisation as well as help the organisation in maintaining its success within
the dynamic environment(Polonsky and Waller, 2018). Different information about the assets
liabilities and other financial resources of the organisation as well as help in maintaining the
position of the company in the market.in context of BCG group there is various financial
statements which are used by the organisation and discussion of these are mentioned below:
Balance sheet: balance sheet can be defined as an that financial statement which is
consist off the record of asset liability equity and many other factors of the organisation
which are directly related to the financial position of the firm.it is also act as tool to the
different stakeholders to identify the financial position of the organisation and its
performance in the current time. The balance sheet of the organisation is based on different
statements which are profit and loss cash flow statement budgets, journals and ledger.
Cash flow: cash flow statement is that Framework which is used by the organisation
to check the outflow and inflow of the cash within the firm and determine the situation of the
organisation in the current competitive environment about it cash position. In relation to the
DCS group A manager of the company always use the cash flow statement as well as cross
check it to identify the different transactions about the influence outflow of the cash from the
firm. This statement is used as a monthly basis as well as on yearly basis by the organisation
to identify the flow of cash(Frese, Hass and Friedrich, 2016).
Profit and loss: P and L is also a statement which is used by the organisation to
identify different cost expenses and activity done by the organisation in the monetary terms.
It is directly based on the system of excluding expenses from the revenue generated by the
organisation for identifying the actual profit. profit and loss account always show the real
profit earned by the organisation after doing all the activities in an current financial year. this
is most important financial statement as well as document because it provide organisation
different benefits related to strategy and tactics which it have to be adopt in a given period of
time.
so from the above it is in identify the DCS group is using various kind of financial
reports and statements which are helpful for the organisation to determine its profit and loss
as well as current position by value in its cash flow within the organisation and increasing its
market to perform proper strategies.
Income statement
Income statement under absorption costing:
Particulars Unit cost Total
Sales (7300*55) 401500
Less: Cost of sales 208050
Direct material cost (7300*9.50) 69350
Direct labor cost (7300*15) 109500
the successful management of the organisation
Thereare various financial statements within the organisation which are important for
the success of organisation as well as help the organisation in maintaining its success within
the dynamic environment(Polonsky and Waller, 2018). Different information about the assets
liabilities and other financial resources of the organisation as well as help in maintaining the
position of the company in the market.in context of BCG group there is various financial
statements which are used by the organisation and discussion of these are mentioned below:
Balance sheet: balance sheet can be defined as an that financial statement which is
consist off the record of asset liability equity and many other factors of the organisation
which are directly related to the financial position of the firm.it is also act as tool to the
different stakeholders to identify the financial position of the organisation and its
performance in the current time. The balance sheet of the organisation is based on different
statements which are profit and loss cash flow statement budgets, journals and ledger.
Cash flow: cash flow statement is that Framework which is used by the organisation
to check the outflow and inflow of the cash within the firm and determine the situation of the
organisation in the current competitive environment about it cash position. In relation to the
DCS group A manager of the company always use the cash flow statement as well as cross
check it to identify the different transactions about the influence outflow of the cash from the
firm. This statement is used as a monthly basis as well as on yearly basis by the organisation
to identify the flow of cash(Frese, Hass and Friedrich, 2016).
Profit and loss: P and L is also a statement which is used by the organisation to
identify different cost expenses and activity done by the organisation in the monetary terms.
It is directly based on the system of excluding expenses from the revenue generated by the
organisation for identifying the actual profit. profit and loss account always show the real
profit earned by the organisation after doing all the activities in an current financial year. this
is most important financial statement as well as document because it provide organisation
different benefits related to strategy and tactics which it have to be adopt in a given period of
time.
so from the above it is in identify the DCS group is using various kind of financial
reports and statements which are helpful for the organisation to determine its profit and loss
as well as current position by value in its cash flow within the organisation and increasing its
market to perform proper strategies.
Income statement
Income statement under absorption costing:
Particulars Unit cost Total
Sales (7300*55) 401500
Less: Cost of sales 208050
Direct material cost (7300*9.50) 69350
Direct labor cost (7300*15) 109500
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Variable cost (14600*2) 29200
Gross profit 193450
Less: Fixed cost (14600*3) 43800
Less: Administrative expenses 4500
Less: Salaries 13800
Profit before interest and tax 131350
Less: Interest expenses 355
Profit after interest but before tax 130995
Less: Tax 220
Net income 130775
Income statement under marginal costing:
Particulars Unit cost Total
Sales (7300*55) 401500
Less: Cost of sales 208050
Direct material cost (7300*9.50) 69350
Direct labor cost (7300*15) 109500
Variable cost (14600*2) 29200
Contribution 193450
Less: Fixed cost 900000
Loss before interest and tax -706550
Less: Interest expenses (355)
Loss after interest before tax -706905
Less: Tax (220)
Net loss -707125
TASK 4
P7 Discuss key legislation and regulations that have implications on small businesses or
social enterprises
Important for every business organisation to comply with the rules and regulations
which are formed by the government where the organisation is working, In context of DCS
group, organisation is working within the UK where there are various legislation and
regulations which have to be followed by the organisation to increase its profitability as well
as reduce the chances of legal liability within the environment where it is working. Some of
these essential rules and regulations are mentioned below:
Consumer law: this is formulated by the government of UK and passed by the
parliament where this deal with the protection of customers and individuals from the unfair
practices occurred at the time of transaction between a business and customers. This not
protect the interest of customers against unlawful different business organisation. DCS group
is a reputed organisation so it must be kept in mind that it should be followed the consumer
protection nowhere it doesn't practice any unlawful activity within the organisation supplier
the proper quality products to customers(Wellin, 2016).
Gross profit 193450
Less: Fixed cost (14600*3) 43800
Less: Administrative expenses 4500
Less: Salaries 13800
Profit before interest and tax 131350
Less: Interest expenses 355
Profit after interest but before tax 130995
Less: Tax 220
Net income 130775
Income statement under marginal costing:
Particulars Unit cost Total
Sales (7300*55) 401500
Less: Cost of sales 208050
Direct material cost (7300*9.50) 69350
Direct labor cost (7300*15) 109500
Variable cost (14600*2) 29200
Contribution 193450
Less: Fixed cost 900000
Loss before interest and tax -706550
Less: Interest expenses (355)
Loss after interest before tax -706905
Less: Tax (220)
Net loss -707125
TASK 4
P7 Discuss key legislation and regulations that have implications on small businesses or
social enterprises
Important for every business organisation to comply with the rules and regulations
which are formed by the government where the organisation is working, In context of DCS
group, organisation is working within the UK where there are various legislation and
regulations which have to be followed by the organisation to increase its profitability as well
as reduce the chances of legal liability within the environment where it is working. Some of
these essential rules and regulations are mentioned below:
Consumer law: this is formulated by the government of UK and passed by the
parliament where this deal with the protection of customers and individuals from the unfair
practices occurred at the time of transaction between a business and customers. This not
protect the interest of customers against unlawful different business organisation. DCS group
is a reputed organisation so it must be kept in mind that it should be followed the consumer
protection nowhere it doesn't practice any unlawful activity within the organisation supplier
the proper quality products to customers(Wellin, 2016).
Employment law: this is also passed by the parliament of the UK and issued by the
legal authorities within the UK which directly related to the interest of employees within the
organisation. This low include the various rules and regulations and articles related to saving
the interest of employees on different job practices within different organisations from large
scale to small scale level. In context of DCS group, it is skill level in UK where it have to
fulfil all the employment laws and provide different rights of its employees where they
conserve with greater productivity within the organisation and the chances of legal liability
can be decrease.
Health and safety law: health and safety of employees on the workplace is important
part of the organisation and it is also covered in the legislation of the UK government where
it pass the law related to the health and security needs of individuals working in different
sectors of the UK industries. Under this lord employees have a right to proper security and
health benefits on the organisation for which the organisation have to provide them a proper
health insurance as well as training and development regarding the hazardous work which
can act on the safety of the individuals who are working on the particular task. these laws are
directly related to safety and security of individuals on the workplace provide them different
benefits from the government as well as the organisation side related to the injuries suffered
by employees working on this type of jobs(Gregg and Lodato, 2017).
From the above it can be identified that there are various kind of rules regulations and
policies which have to be fulfilled by the organisation for serving long period of time as well
as increasing the profitability.if any organisation field in fulfilling lead roles and
responsibility League solutions and regulations then they will be find as well as the closure of
operations can also acted on the life of organisations which can have negative impact on the
form goodwill within the market.
CONCLUSION
The above mentioned information it can be concluded that there are various factors
which affect the small scale business within the competitive market but they can be used
effectively by identification of different virginity is as well as making the proper customer
relationships. Concluded that if organisation performs its roles and responsibility in an
effective manner by managing the customer relationships properly managing budget planning
and forecasting within the organisation to improve their performance and increase the market
share.
legal authorities within the UK which directly related to the interest of employees within the
organisation. This low include the various rules and regulations and articles related to saving
the interest of employees on different job practices within different organisations from large
scale to small scale level. In context of DCS group, it is skill level in UK where it have to
fulfil all the employment laws and provide different rights of its employees where they
conserve with greater productivity within the organisation and the chances of legal liability
can be decrease.
Health and safety law: health and safety of employees on the workplace is important
part of the organisation and it is also covered in the legislation of the UK government where
it pass the law related to the health and security needs of individuals working in different
sectors of the UK industries. Under this lord employees have a right to proper security and
health benefits on the organisation for which the organisation have to provide them a proper
health insurance as well as training and development regarding the hazardous work which
can act on the safety of the individuals who are working on the particular task. these laws are
directly related to safety and security of individuals on the workplace provide them different
benefits from the government as well as the organisation side related to the injuries suffered
by employees working on this type of jobs(Gregg and Lodato, 2017).
From the above it can be identified that there are various kind of rules regulations and
policies which have to be fulfilled by the organisation for serving long period of time as well
as increasing the profitability.if any organisation field in fulfilling lead roles and
responsibility League solutions and regulations then they will be find as well as the closure of
operations can also acted on the life of organisations which can have negative impact on the
form goodwill within the market.
CONCLUSION
The above mentioned information it can be concluded that there are various factors
which affect the small scale business within the competitive market but they can be used
effectively by identification of different virginity is as well as making the proper customer
relationships. Concluded that if organisation performs its roles and responsibility in an
effective manner by managing the customer relationships properly managing budget planning
and forecasting within the organisation to improve their performance and increase the market
share.
REFERENCES
Books and journals
Steingold, F.S. and Steingold, D., 2019. Legal guide for starting & running a small
business.Nolo.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Brulin, G. and Svensson, L., 2016. Managing sustainable development programmes: A
learning approach to change. Routledge.
Park, K., 2018. The Korean American dream: Immigrants and small business in New York
city. Cornell University Press.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR
theory. Business & Society, 55(1), pp.23-55.
Le Roy, F. and Czakon, W., 2016. Managing coopetition: the missing link between strategy
and performance. Industrial Marketing Management, 53(1), pp.3-6.
Turner, S. and Endres, A., 2017.Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.
Chen, B.S., Hanson, S.G. and Stein, J.C., 2017. The decline of big-bank lending to small
business: Dynamic impacts on local credit and labor markets (No. w23843). National Bureau
of Economic Research.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.
Direction, S., 2016. Business strategists must mind one key language: Why managing that
language is vital to running a multinational.
Orpin, P., Judson, A. and Davis, R., 2020. Practical tips for managing change during the
Covid-19 pandemic. In Practice, 42(5), pp.297-302.
Senderovitz, M., Klyver, K. and Steffens, P., 2016. Four years on: Are the gazelles still
running? A longitudinal study of firm performance after a period of rapid
growth. International Small Business Journal, 34(4), pp.391-411.
Amir, A.M., 2020.FAMILY MANAGEMENT STRATEGIES IN MANAGING FINANCES
THROUGH SMALL BUSINESSES. Academy of Strategic Management Journal, 19(3).
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project: A
business student's guide. Sage publications.
Books and journals
Steingold, F.S. and Steingold, D., 2019. Legal guide for starting & running a small
business.Nolo.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Brulin, G. and Svensson, L., 2016. Managing sustainable development programmes: A
learning approach to change. Routledge.
Park, K., 2018. The Korean American dream: Immigrants and small business in New York
city. Cornell University Press.
Spence, L.J., 2016. Small business social responsibility: Expanding core CSR
theory. Business & Society, 55(1), pp.23-55.
Le Roy, F. and Czakon, W., 2016. Managing coopetition: the missing link between strategy
and performance. Industrial Marketing Management, 53(1), pp.3-6.
Turner, S. and Endres, A., 2017.Strategies for enhancing small business owners' success
rates. International Journal of Applied Management and Technology, 16(1), p.3.
Chen, B.S., Hanson, S.G. and Stein, J.C., 2017. The decline of big-bank lending to small
business: Dynamic impacts on local credit and labor markets (No. w23843). National Bureau
of Economic Research.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to
do it right. John Wiley & Sons.
Direction, S., 2016. Business strategists must mind one key language: Why managing that
language is vital to running a multinational.
Orpin, P., Judson, A. and Davis, R., 2020. Practical tips for managing change during the
Covid-19 pandemic. In Practice, 42(5), pp.297-302.
Senderovitz, M., Klyver, K. and Steffens, P., 2016. Four years on: Are the gazelles still
running? A longitudinal study of firm performance after a period of rapid
growth. International Small Business Journal, 34(4), pp.391-411.
Amir, A.M., 2020.FAMILY MANAGEMENT STRATEGIES IN MANAGING FINANCES
THROUGH SMALL BUSINESSES. Academy of Strategic Management Journal, 19(3).
Polonsky, M.J. and Waller, D.S., 2018. Designing and managing a research project: A
business student's guide. Sage publications.
Secure Best Marks with AI Grader
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Frese, M., Hass, L. and Friedrich, C., 2016.Personal initiative training for small business
owners. Journal of Business Venturing Insights, 5, pp.27-36.
Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase
business performance.CRC Press.
Gregg, M. and Lodato, T., 2017. Managing community: Coworking, hospitality and the
precarious future. Affect in Relation-Families, Places, Technologies. Essays on Affectivity
and Subject Formation in the 21th Century.
owners. Journal of Business Venturing Insights, 5, pp.27-36.
Wellin, M., 2016. Managing the psychological contract: Using the personal deal to increase
business performance.CRC Press.
Gregg, M. and Lodato, T., 2017. Managing community: Coworking, hospitality and the
precarious future. Affect in Relation-Families, Places, Technologies. Essays on Affectivity
and Subject Formation in the 21th Century.
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