Managing and Running A Small Business (PDF)

Managing and Running
A Small Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of the company...........................................................................................................1
P1 Main considerations that a small business needs to addressed while planning and allocating
resources......................................................................................................................................1
M1 Tools and techniques that are used to plan and allocate resources.......................................2
M2 Importance of planning and allocating resources.................................................................2
D1 Analysis of application of appropriate resources..................................................................3
TASK 2............................................................................................................................................3
P2 Different processes of customer relationship management for a small business...................3
P3 The way in which small business can develop transnationally..............................................4
M3 Elements of customer relationship management process.....................................................5
M4 Benefits and challenges of Stage model of internationalisation...........................................5
D2 Critical evaluation of customer relationship management process.......................................6
TASK 3............................................................................................................................................6
P4 Cash flow forecast that shows fixed and variable costs.........................................................6
P5 Application of Break even analysis.......................................................................................7
P6 Interpretation of key financial statements and its contribution in successful management of
business.......................................................................................................................................8
M5 Application of quantitative and analytical techniques........................................................10
D3 Evaluation of financial statements......................................................................................10
TASK 4..........................................................................................................................................11
P7 Key legislations and regulations that impact activities of small business organisation......11
M6 Implication of key legislations...........................................................................................11
D4 Critical evaluation of key legislations and regulations that affect small business firms.....11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Small business enterprises are the firms which are running their business with less funds
and work force. It is very important for the managers and directors of such firms to manage all
the activities of the organisation appropriately. For those organisations it is very important to
follow all accounting principles, rules and regulations so that their financial statements can be
formulated accurately (Johnson and Schaltegger, 2016). While running a small business a
businessman is required to form appropriate strategies for the purpose of attaining higher profits
and increasing sales. Main aim of this report is to analyse importance of managing a small
business. The organisation which is chosen for this report is Rowlinson Knitwear which is a
small manufacturing company of formal and school wear. Various topics are discussed under this
report that are the way in which small business plans and allocation of resources in order to
attain objectives and evaluation of small customer relationship management of small firm are
included. Analysis of cash flow forecast, budget, breakeven point, interpretation of financial
statements, implications of regulations and legations on a small business are also covered in this
assignment.
TASK 1
Overview of the company
Rowlinson Knitwear is a manufacturing company of clothes which is based in UK and
operating its business successfully. The organisation is currently dealing in school and corporate
wear. The company was established in year 1935 by Mr. Wilfred Rowlinson. Currently the
business is executed successfully by the directors, managers and employees.
P1 Main considerations that a small business needs to addressed while planning and allocating
resources
Resource allocation and its planning is a very complicated process and managers have to
pay high attention to allot appropriate resources to various divisions of company. In Rowlinson
Knitwear management and other executives have to consider various factors that are required to
be plan and mobilise resources within the organisation (O’Connor and Kelly, 2017). All the
factors are discussed below:
Staff members and skills: Employee are concerned with operational and business
execution activities hence they are considered as an important asset of the company. Skills of
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workers help an organisation to attain all the objectives that are required be competitive in the
market. The managers of Rowlinson Knitwear needs to consider the employee and their skills
while planning and allocating resources and responsibilities in order to develop the organisation.
Vision, mission and strategic objective: For all the companies and their owners it is
very important to communicate with their employees and other staff members regarding
organisation's vision, mission and objectives. It will help to gain their trust and result in
increased engagement of them in their job responsibilities. Managers of Rowlinson Knitwear are
required to consider these elements while allocating resources as it can help to motivate
employees to work more productively. When worker perform their jobs with higher involvement
than it can help to increase their work quality and result in attainment of organisational goals
(Spence, 2016).
 Vision: Rowlinson Knitwear's vision is to be on the top of the clothing industry in
upcoming period.
 Mission: Organisation's mission is to capture large market share by attracting large
number of customers.
 Strategic objective: Rowlinson Knitwear' objective is to increase its profits by 20% in
next two years so that it business can be expanded appropriately.
Monetary resources: Finance is the main resource which is required to execute business
activities. If an organisation is not having sufficient funds than it is not possible to perform
operational activities appropriately. While planning and allocating funds the management of
Rowlinson Knitwear required to analyse that firm is having adequate monetary resources. For
this purpose, managers may evaluate final accounts like income statement, balance sheet and
cash flow statement. Enough funds may help to execute business in appropriate manner and
achieve organisational goals. There are various types of monetary resources that can be used by
the organisation in order to acquire funds for business operations. These are bank loans, venture
capital, personal funds, selling old business assets. All of them can help to arrange funds for
business and it executional activities.
M1 Tools and techniques that are used to plan and allocate resources
Management of Rowlinson Knitwear can use following tools to plan and allocate
resources to the functional departments of the company:
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