Managing and Running a Small Business

This document discusses various determinations that help small organizations in achieving their objectives through appropriate planning and resource allocation. It also explores different customer relationship administration processes and evaluates them. Additionally, it explains the methods to develop transnationally and their benefits and drawbacks. The document further covers cash flow management and rules and legislations for small scale businesses.

Managing and Running a Small Business

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
Explain various determinations that helps undersized organisation for gaining objective by
appropriate planning and assigning resources........................................................................3
Identification of different customer relationship administration processes and evaluate
them........................................................................................................................................5
What are the different methods to develop Transnationallyexplanation with their benefits
and drawbacks........................................................................................................................6
TASK 2......................................................................................................................................7
Annual cash flow for fixed and variable cost.........................................................................7
Break even analysis on organisation situation.......................................................................7
Different financial statements in relation to successful management within organisation....8
Rules and legislations which are implemented on small scale businesses.............................9
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Trend toward undersized scale organisation is increasing continuously because it is
easier to open a small scale business with limited resources. For development of new
business it is essential to arrange different kind of resources as well as manage them in an
appropriate manner so that organisation can survive for longer period of time by providing it
services within the market(Bititci, 2016). Because of different contribution of small scale
businesses within the economy is increasing continuously which also helping in development
of social factors as well as economic development which help in generation of new and
innovative ideas as well as entrepreneurship quality. Present report DCS group is a chosen
organisation which is considered as leading business organisation located in UK and
providesits services within supermarkets. This report is divided into two tasks where the task
is consistingof discussion about the small level business and social venture for identifying the
resources as well as achieving the business objectives. There is also a discussion about
different process of customer relations administration for a business that is adopted by
company for accomplish its goals and objective. In the end of task 1 there is discussion
regarding how the small scale organisation can improve nationally and also considers its
advantages and limitation of each method. In task 2 of this report there is discussion about the
cash flow estimating which shows the fixed as well as variable cost against proper set of
income as well as there is also a discussion about a break even analysis for current
organisation. There is also discussion about different financial statements and how this
statement are useful to the organisation where discussion about the key regulations and
legislations which can be given by undersize business for doing business activities (Arteaga
and Uman, 2020)
.
MAIN BODY
TASK 1
Explain various determinations that helps undersized organisation for gaining objective by
appropriate planning and assigning resources.
This is because small level business continuously supporting development by
contributing more than 5% increment in every year from 2005 to 2018 and economy of UK
as well as help in identification of various resources and development of output for the
economy welfare. In relation to DCS group, it is also trading within the economy of UK

where different resources are required by the firm to perform its function effectively and
develop a proper strategy to achieve its goals and objective. These elements are given
beneath:
Mission, vision as well as target: It is significant for company to establish improper
mission vision and targets so that it can identify a proper path on which the organisation can
run its operation and achieve the goals as well as objectives in proper way. In reference of
DCS group, organisation always prefer to manage its resources appropriately where the
mission vision and target of the organisation or clear. Facilitate to increase profitability as
well as identify the needs and requirement for a particular purpose within the organisation
and use the resources in an efficient manner(Huntington, 2018).
Flexibility: One of the important resources which is required to start a business within
the organisation in managing a different operation is flexibility. Flexibility in the organisation
structure always fascinated continuous development within the firm as well as help in
adoption of new and innovative changes within the functioning of the form so that it can
reduce the adverse affect of changeable atmosphere. DCS group continuously prefer flexible
structure which help the organisation in identification of productivity as well as managing its
operation in an appropriate way so that it can formulate stronger policies to achieve the goals
and objectives.
Financial resources: It is essential for every organisation to manage its financial
resources before starting the business because financial resources activation essential part
where they will help the organisation in achieving its goals and objectives by allocating
appropriate fund each and every activity. In context of DCS group, organisation use to collect
the finance from its relatives and from small commercial banks. This helped organisation in
arrangement of finance as well as using a proper system within the form so that it can manage
it financial requirements(Carroll, 2016).
Qualified and skilful of human resources: It is important part of the administration
and it is mandatory for the firm to manage the human resources in an appropriate manner. In
relation to DCS group, organisation prefers to hire the local employees which help form in
identification of local markets. This also facilitates smooth functioning as well as
achievement of goals and objectives by employing qualified and skilful employees.
Organisation also prefers to use trading and development for the employees so that we can
identify the present trends of market and performed according to the market level.

Control: Achieving the business objective it is necessary for the organisation to
regularly monitor and control the performance of the employees as well as different resources
so that it can reduce the wastage of resources as well as established productivity within the
organisation. In relation to DCS group, organisation always prefer a proper management and
control system where it try to maintain special management staff who manage control and
monitoring process where an organisation can establish a appropriate decision making
process and reduce the negative impact of a situation.
Identification of different customer relationship administration processes and evaluate them.
Customer relationship administration is that method of management which is related
to managing the customers and organisation relationship where organisation can hold its
customers for extended period of time by analysing the data related to the customer purchase
as well as the behaviour of customers (Torry, 2017). In relation to DCS group, it always
follow proper framework to attract the customer and manage the customer relationships by
use of different kind of techniques and tools related to identification of customer behaviour as
well as making the customer loyalty towards the company for longer time period. There are
two kind of method which is used by the organisation for customer relations administration
that is discussed below.
Portfolio analysis: Under this system organisation manager portfolio related to the
customer who is consist of different kind of information related to the choice reference and
behaviour of customer for particular product as well as identification of their various
demographic and psychological system of customer behaviour(Volery and Mueller, 2018).
This is used by organisation to manage the customer relationship by identification of their
behaviour.
 Advantage: Major advantage of this system is that it helps the organisation in
identifying the customer behaviour where form can influence the decision-making
ability of customer related to product.
 Disadvantage: The main drawbacks of this system are that preference of customer is
continuously changing and it is impossible to identify the actual behaviour of
individual because of psychological barriers.
Customer lifecycle management: This is a system which involves managing the
customer relationship by the help of a proper cycle. Under this system company will identify

the cooperation with motives related to manager where it only focus on the end user of a
product and it is a continuous process a systematically tools will be used to identify the
behaviour of the customer within the market(Moseley III, 2017).
 Advantage: The main benefits are that it provides a appropriate framework to the
company for identification of customer behaviour.
 Disadvantage: It is a cost consuming process as well as it also takes longer time
which can result in change in behaviour of individual.
It can be evaluated from the above that it is significant for company to handle the
customer relationship by identifying various tools and techniques but firm has to use a proper
method which will provide adequate information about the customer and help company in
achieving the goals and objectives related to profitability and productivity.
What are the different methods to develop Transnationallyexplanation with their benefits and
drawbacks
Transnationally can be well-defined as activities done by business where the business
is going towards the boundary of the nation where it is trading. It is significant for small level
organisation to develop transnational in order to achieving the goals and purposes in an
suitable manner identification of various new resources. There are different methods for
developing transnationally some of the method which are adapted by DCS group are
discussed below:
Export and import: Export and import is a best method to develop the Transnationally
because here organisation has to export its product as well as import the other resources to
manufacture the product which help firm in managing Transnationally between two places. In
relation to DCS group, it is important factor which is used by the company and help the firm
in maintaining its existence in different nation or beyond the boundary of current
nation(Miller, 2020).
 Benefit: The major benefit of this function is that it help company in providing the
benefit of economy of scale where organisation can perform its function at larger
level and achieve its goals and objectives related to low cost of production.

 Demerit: Major demerit of this functional that organisation has to face competition
from the local brands within the different nation where it is going to export and
import its product which also demoralize the company's function.
TASK 2
Annual cash flow for fixed and variable cost
Cash flow: It can be defined as the declaration which is used by a corporate
organisation to identify the flow of money within the firm so that it can manage different
activities by providing adequate cached each and every activity within the organisation. It is
an important tool for the organisation because it managed the cash within the firm as well as
help manager in identification of various activities related to cash(Fogel, 2019).
Particu
lar
Janua
ry
Febru
ary March April May
Jun
e July
Au
gus
t
Sep
tem
ber
Oct
obe
r
Nove
mber
Decembe
r
Cash inflow activities
Openin
g
balance
2500
00
71300
0 474000
123470
0
848610
0
831
890
0
67436
00
761
170
0
310
640
0
794
800
98400
0
2632820
0
Cash
sales
1000
000
12000
00 2000000
800000
0 900000
110
000
0
13000
00
700
000
100
000
0
500
000
0
25000
000
8000000
0
Busine
ss
loans
2000
00
15000
0 50000 45000 55000
450
00 55000
500
00
120
000
150
000
14000
0 200000
Income
from
other
sources
4000
00 50000 40000 300000 450000
400
000
35000
0
450
000
700
000
745
000
78000
0 100000
Total
1850
000
21130
00 2564000
957970
0
989110
0
986
390
0
84486
00
881
170
0
492
640
0
668
980
0
26904
000
1066282
00

Cash
outflo
w
activiti
es
Cash
purcha
se
5000
00
70000
0 800000 600000
110000
0
250
000
0
30000
0
450
000
0
300
000
0
440
000
0
48000
00 5500000
Drawin
gs
1000
00 90000 25000 4500
Rents
5000
0 50000 50000 50000 50000
500
00 50000
500
00
500
00
500
00 50000 50000
Rates
1000
0 8000 45000 43000 6000
450
0 9000
100
00
110
00
150
00 20000 25000
Station
ery
expens
es 5000 4500 3000 4500 7800
100
00 12000
150
00
170
00
200
00 25000 30000
Adverti
sement
1000
0 15000 4500 7800 6000
150
00 20000
150
000
120
000
200
00
20000
0
Insuran
ce 5000 5000 5000 5000 5000
500
0 5000
500
0
500
0
500
0 5000
5000500
0
Travell
ing
2000
0
20000
0 25000 8500 7800
200
00 15000
780
0
900
00
450
00 7800 45000
Loan
repaym
ents
1000
0 10000 10000 10000 10000
100
00 10000
100
00
100
00
100
00 10000 10000
Legal
expens
es 3000 3000 3000 3000 3000
300
0 3000
300
0
300
0
300
0 3000 3000
Teleph
one
4000 3500 4500 9500 9600 250
00
6500 450
0
780
0
450
00
45000 35000

and
mobile
Salary
3000
00
30000
0 300000 300000 300000
300
000
30000
0
300
000
300
000
300
000
30000
0 300000
Light
and
heat
power
4000
0 40000 40000 40000 40000
400
00 40000
400
00
400
00
400
00 40000 40000
Tools
and
equipm
ent
8000
0
20000
0 9500 7800 4500
300
00 50000
600
00
700
00
800
00 80000 70000
Purcha
sing
assets 10000 4800 8500
100
000 12000
400
000
400
000
300
000 75000 250000
Miscell
aneous
expens
es 4500 9500
780
0 4500
150
000
780
0
150
000 45000 78000
Total
1137
000
16390
00 1329300
109360
0
157220
0
312
030
0
83700
0
570
530
0
413
160
0
548
300
0
57058
00
5644100
0
A- B
7130
00
47400
0 1234700
848610
0
831890
0
674
360
0
76117
00
310
640
0
794
800
984
000
26328
200
1009841
00
Budgeting, planning and forecasting: It is essential for every organisation to
manager proper budget as well as the forecast system so that it can identify different
functions and prepare itself for the future contingency. This is because the business
environment is dynamic in nature and there are various kinds of three folders who have to
identify the performance of the business. For identification of the performance as well as
using different criteria form can use budgeting planning tools and forecasting systems which
help DCS group in identification of a proper system which can be adopted to rise the

opportunity of business within the market for achieving the goals and objects in a current
time period(Korovkin, 2020).
Break even analysis on organisation situation
Break even analysis is that analysis which is used by the organisation to identify a
situation where organisation is situated at a place of no gain and no loss (Doern, 2016). It is
used by DCS group to identify and method where algebraic method is used to identify and
proper decisions in company connected to the functioning of altered operation. Calculation of
this approach that is given below:
Break even quantity= TFC/ (P -AVC)
TFC= Total fixed cost
AVC= Average variable cost
P- Price
Financial analysis
Particular Price per unit £ Amount
Sales 10 1000000
- Variable cost 4 400000
Contribution 6 600000
- Fixed cost 200000
Profit 400000
Calculation of profit volume
ratio = Contribution/ Sales*100 =
600000/1000000*100 =
60%
Break even sales value = Fixed cost / PV ratio
200000/60% =
333333.33 £
Break even points in sales units
= Fixed cost / contribution per
Fixed cost / Contribution per
unit
2000000/6* = 33333
units

unit
Advantages
There are different benefits of breakeven analysis to the DCS group. Some of these are stated
below:
 Major advantage of breakeven analysis to the organisation is that it help organisation
in measuring the profit as well as loss at various production level which further help
organisation deciding the price of the products and services.
 It also helped organise and forecasting and managing change within the organisation
where it can easily fluctuate its sales price by identification of proper break even.
 It also helped organisation in managing the relationship among fixed as well as
variable cost within organisation so that both cost can be minimised for achieving the
goals and objectives.
 The last advantage of breakeven analysis to the DCS group is that it help in forecast
the effect of cost and efficiency change on the profitability of organisation which can
be used by the firm for future perspective.
It can be evaluated from the above that break even analysis is important part of every
organisation because it was littered with this kind of benefits as well as a useful tool for
different functions within the firm.
Different financial statements in relation to successful management within organisation
Financial statements of organisation are important to us for the form because they
help organisation in achieving goals and objectives as well as identification of various key
objective for the organisation related to the management of stakeholders(Jackson and
Goessling, 2018). Financial statement also help organisation in identification of its current
performance where it can take decision according to them. In relation to DCS group,
organisation is using different kind of financial statements which are essential for the
organisation and are discussed below:
Balance sheet: Balance sheet is the essential part of every financial statement of the
organisation because it consists of different kind of records related to asset and liability of the

organisation. It is the final statement which shows the financial position of the company as
well as current market position so that investor stakeholder and different user of the
organisation can identify information related to the organisation. In relation to DCS group,
organisation always used to formulate a proper balance sheet where from use help of different
financial statement like profit and loss statement cash flow statement and different journal
and ledger so that it can manage effective balance sheet and then present actual position to
the investor's. This is helpful in achieving objectives of management as it shows the final
performance of firm which is use to attract investors and manage profits. This will also helps
in decision making by observing current position of firm.
Cash flow statement: Cash flow statement is account which is used by the
administration to recognize the flow of money within the administration which is consists of
both outflow and influence of the cash from the firm from different activities. It this
statement keep record of financial activities operational activities as well as other activities
related to the cash transactions within an organisation which also record bank transfer. In
relation to DCS group it is important statement for the form because organisation use this
form to check the flow of cash as well as identify the requirement of cash within the
administration for different operations (Musikanski, 2017). This is related to function of firm
where management in firm can identify flow of cash. This will use to control cash flow and
manage productivity.
Profit and loss: Profit and loss statement is a tool which is used by the organisation
to record different income and expenses of the organisation which are term in monetary terms
and are useful for the business transaction. Profit and loss show the gross and net income of
the organisation after adjusting all the income and expenses made by the organisation in a
current financial year. The balance of profit and loss account always carried forward to the
balance sheet in the name of profit from the current financial year(Soontorn, 2016).\
Profit and loss a/c
Particular Amount
Sales 1000000

Direct cost
Opening stock 25000
Add Purchase 100000
Less Closing stock 20000
Gross profit 895000
Expenses
Salary 175000
Office rent 50000
Advertising 50000
Insurance 1050000
Motor and travel 30000
Bank charges 5000
Depreciation 15000
Stationery expenses 10000
Other expenses 5000
Total expenses 505000
pre tax net profit 390000
Net ordinary income
Interest income 10000
Profit before tax 400000
Tax 30000

Profit after tax 370000
After the over headstated information it can be assessed that it is significant for
organisation to maintain different accounts which aid organisation in maintaining the interest
of different key stakeholders as well as identification of its current performance within the
current market and financial year.
Rules and legislations which are implemented on small scale businesses
There are various key legislation and regulations which has to be followed by the
small scale business and social enterprises to achieve its business objective in an economy. In
relation to DCS group, organisation has to perform different kind of activities and his
legislations which will help the organisation increasing the profitability and reducing the
chances of legal liability within the firm. Some of these legislation and regulations related to
DCS group are discussed below:
Consumer protection act: Under this act organisation has follow various rules and
regulations regarding customer of the organisation for saving the interest of customer from
the unethical practices done by different organisations. In relation to DCS group, organisation
always follows ethical practices within the form so that it can use this law where the company
can get that reputation as well as will fit the needs and requirements of customers. This also
help organisation in reducing the legal liabilities as well as supply and proper quality product
to the customer(Ikonen, 2017).
Employment regulation act: This actor consists of various rules and regulations
related to the condition of employment which has to be followed by both employer and
employee while working within an organisation. This law is directly related to fulfilment of
ethical practices by the employer toward the employee so that the interest of employees can

be saved while working within the organisation. In relation to DCS group, organisation
follow all the rules and regulation regarding employees within the firm so that it can achieve
a satisfaction level within the employees as well as can fulfil the guidelines within the law for
saving the legal liabilities.
Health and safety law: Under this law employee get right to be healthy and safety at
the workplace. This law is formulated to save the interest of employee while working on the
job within an organisation which is full of life threat as well as various kinds of security
threats related to the working condition within UK industry. DCS group follow the law in an
appropriate manner where company use various kinds of measures so that it can reduce the
threat on the working condition as well as provide health insurance and life insurance cover
to its employee if they got injured or any kind of accident faced while working within the
organisation(Kühlmann and Heinz, 2017). This will help in managing function and regulating
the safety which impact on management an useful to increase motivation in employee.
It can be evaluated from the above-mentioned information that there are various rules
and regulations which has to be followed by the organisation for achieving its business
objective and staying long for run in a business. It is also necessary to the firm for to follow
these rules and regulation show that the legal liabilities can be reduced as well as a proper
customer relationship can be established to minimise the negative impact on the Goodwill of
the organisation related to dissatisfaction of customer and non-fulfilment of rules and
regulation.
CONCLUSION
It can be concluded from the above mentioned report that there are various factors
which impact the small scale business in a business environment. Also concluded that a
business has to find resources so that it can work within the environment as well as followed
different key regulations like employment regulation act and health and safety law. There are
various financial statements which has to be performed by the business so that it can achieve
a competitive edge within the market.

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