SME Management and Marketing Strategies

This assignment provides an overview of SME management and marketing strategies, including succession planning, knowledge loss assessment, and customer relationship management. It also discusses the impact of brand authenticity on SME growth and explores crisis management in UK small- and medium-sized enterprises.

MANAGING
AND
RUNNING A
SMALL-MEDIUM
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives................................1
TASK 2............................................................................................................................................2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise...................................................................................................2
P3 Development transnationally and its benefits...................................................................4
TASK 3............................................................................................................................................6
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................6
P5 Explain how break- even analysis could be applied to an organisational situation..........7
P6 Interpret key financial statements for successful management.......................................10
TASK 4..........................................................................................................................................11
P7 Discuss key legislation and regulations that have implications on small businesses or social
enterprises.............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small-medium enterprise can be defined as those enterprises which are depend on their
number of staff members, annual sales, assets or any combination of these. Their contribution to
economy or general large difficulty on obtaining financing and their fixed cost of taxation along
with regular compliance. This report is based on Badger Mining Corporation which deals in
manufacturing industrial silica sand and other aggregates. This firm is providing fine foundry
and hydraulic fracturing sands for metal casting, construction and recreational products (Baker,
2014). It has several distribution centres or warehouses in Houston, George West, San Angelo
and Saginaw, Texas, Evansville and Wamsutter. This assignment will discussed about important
components for preparing appropriate planning and allocation of resources. It will covers the
topic of customer relation management, cash flow statement and break even analysis along with
interpretation of financial statement for successful management. Key legislations and regulations
for small businesses will be highlighted below.
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
There are various kind of organisation want to conduct several activities along with
events. It can be done through allocating available resource and manpower to complete desirable
tasks and procedures properly to attain expected productivity as well as efficiently. It will helps
in maintaining certain factors to make more effective plans which are essential to organise
different processes to gain desired goals or objectives. Badger Mining Corporation nee to prepare
better planning to utilise available sources to achieve maximum outcomes from them.
Any enterprise has different types of resources such as staff members, money of
investment, equipments, area of performing and many other elements which are essential for
production process of goods or services (Dobra, 2012). It may also include various kind of
information which can be collected from previous data or record to enhance future productivity
of an organisation. Badger Mining Corporation required to measure several resources which are
needed to use are given below:
Expert judgement:- It is defined as that person who have expertise to make planning for
effective allocation of resources along with human resource of an organisation. The Badger
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Mining Corporation have to take suggestions from such experts who is able to reflect strengths
and weakness of that particular plan to be implemented. It will results in identify these factors to
grab opportunities and reduce impacts of threats easily.
Alternative analysis:- There are various alternative choices from which they have top
select the best one to apply. It is important to attaining better productivity as well as profitability.
Badger Mining Corporation have to evaluate and analyse both positive or negative impacts for
several alternative to choose the best one for implementation in company.
Publishes estimating data:- It can be described s record maintained in order to
information about available resources and manpower of an organisation (Doherty and Norton,
2013). This is necessary for project managers to prepare an effective as well as efficient planning
to conduct essential manufacturing activities to attain desired results. It may involves various
sources such a books, journals, articles, reports and periodicals.
Project management software:- In an organisation, it is necessary to utilise several
suitable soft-wares to organise regular based events or procedure for the purpose of production or
maintaining data for future requirements as well. Badger Mining Corporation can adopt any
specific project software which is designed to estimate needs of suitable resources in company
for particular condition. This criteria provide support identify better combination of certain
projects to gain outcomes successfully (Durst, Yip and Lee, 2015).
Bottom up estimating:- This term may described as to do break down of complex
processes into fragments to conduct them separately and effectively as well. It is also helpful in
correct allocation of resources to every small activity of single complex procedure. Badger
Mining Corporation have to apply appropriate time for estimating bottom-up allocation properly.
TASK 2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise
Customer relation management refers to those techniques that are able to render help in
managing client relation in appropriate manner. It is broadly and widely accepted aspect which is
necessary to apply appropriate strategies or policies to interact effectively with clients. It is a
system having an essential aspect to compile data from range of various conversation channels
including firm's website, email, live chat, marketing factors and more recently used social media.
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It is helpful to render opportunity for business to learn more about targets audiences and ways to
convince them. Badger Mining Corporation have to apply different procedures for client
relationship management are given below:
Customer service:- It is an essential responsibilities to conduct various kind of events
which facilitate to establish an effective client relationship management. They have to interact
personally with each and every client t know about feedbacks and suggestions for specific
products or services. Badger Mining Corporation can establish an efficient call centre where
clients can easily get solved their issues regarding product or services. All these activities should
be recorded in CRM software for future purpose (Easterby-Smith, Thorpe and Jackson, 2012).
(Source: Benefits of CRM, 2018)
Sales force automation:- This term can be explained about several opportunities
provided to marketing team for establishing their one-to-one contact with clients. It will help
them to promote their brand more effectively as well as efficiently. This may facilitate to attract
new customers and retain the current ones by enhancing goodwill of brand in market area to grab
more shares of competitive market.
Campaign management:- This term can be described as such kind of events which are
conducting with purpose of winning new business. It is a type of method which is useful for
make segments of target customers settled on set of criteria.
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Illustration 1: Benefits of CRM

Purpose of CRM:- This ideas of customer relationship management render help to
Badger Mining Corporation to adopt various tools and staff members in better way to attain
efficient outcomes. This will facilitate to gain favourable response of clients along with
improving value of such people but those also who are for marketing, customer service and
technical help.
 It will provide product or services according to requirements and desired of people to
fulfil their expectations.
 This will support to content more efficient products.
 It is helpful or cross selling of services or goods on in appropriate manner (Eggers and et.
al., 2013).
 It is supportive for providing techniques to sales executives for close deals faster.
 This methods is helpful to facilitate in attracting new clients as well as retaining the
current one effectively.
 They have to prepare or establish several call centre for effective outcomes.
 It is useful to simplify promoting and sales procedures as well.
CRM involves for small business:
 It is an essential procedure which may identify desired customers, generate quality sales
leads, plan and implement promoting activities with particular targets.
 It will facilitate to make effective individualised relationships with clients and provide
greater level of products.
 The firm can easily identify exact needs and wants of people and try to fulfil it in
appropriate manner.
Transnational business refers to a multinational or international business. For example,
Badger Mining Corporation can operate its business transnationally by using various ways like
joints ventures, partnership, merger, acquisition and others. By using them the management of
this company can develop its business in various different nations.
Advantages- The biggest advantages of transnational business is that the company can
expand its business in the market of entire world and increase the customer base or sales of the
products. Another advantages is that since the firm has decentralized the business then it can
employ as well as using cheap manpower and raw material from the nation in which it is
running. Thus. The organisation able to save the money in term of production.
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Disadvantages- The major drawback of transnational business is that the organisation
does not have the overall information or understanding of the markets in which the firm trying to
running. Another disadvantage is that the firm is always exposed to political, legal and
operational risk which are associated with operating in various nations. There are various rules
and regulations that are followed by the organisation when it operate its business transnationally
and fluctuation in these legislations affect negatively to the business strategy of the firm.
P3 Development transnationally and its benefits
Every organisation want to expand its business at global as it provide opportunity to
attain better productivity as well as profitability. This will facilitate to enhance goodwill of brand
at global level to improve growth of business which may contribute to increase economic value.
Several steps for Badger Mining Corporation to expand it transnationally are as follows:
 It is important to fist know about the firm in detail and determine strengths and
opportunities which can contribute to expand business globally (El-Rafei and et. al.,
2017).
 They have to determine models of business which have ability to translate firms from
manufacturing domestic product to worldwide brand.
 It is necessary to know about trends of global market that product s are accepted there or
not.
 Analysing various kind of factors which may have positive or negative impacts in
enhancing business at global level.
Benefits and drawbacks of expanding business worldwide
Benefits Drawbacks
 It may improve sales and profits for
company.
 Al global market, there is likelihood
increasing sales along with clients all
over the world.
 It may helps to decrease dependence on
local as well as national economies.
 Potential for enhancing fir business
 At the time of new entry to global
market, the firms are only expect short
term gains.
 They have to hire more candidates by
investing money on recruitment.
 They have to apply some money to
modify packaging to suit local culture,
preferences etc.
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improvement as the y enter into global
markets.
 They have to apply foreign laws of
taxation and regulations.
Important facts of transnationally strategy – This can be described as an effective
approach which is helpful in selling and marketing of product to target audience. It include to
fulfil various laws or rules of particular nation where company going to sell its good to people
for earning profits. It is necessary to conduct proper research to evaluate scope of specific goods
in an area and define purpose of plan to make an appropriate planning in proper way. Moreover,
accurate documentation is required to be dome perfectly and make desired strategy of marketing
to grab target audience successfully. Additionally, several new techniques or features should be
adopted by company to fulfil actual desires of people to gain their satisfaction along with earning
profit.
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation
Profit and loss statement
Particular Amount
Sales 272000
Opening stock 36000
Variable manufacturing
cost
Direct material 47450
Direct labour : 36500
Variable overheads: 25550
109500
Less: Closing stock 49500
Contribution 96000
Less: Fixed costs 92000
Gross profit 84000
Less; Distribution expenses 24000
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Administrative expense 89000
Interest expenses 0
Profit before tax(PBT) -29000
Corporate tax 0
Net profit -29000
Balance sheet
Particulars Amount (Figures in £)
Current Assets
Inventory 101640
Prepaid advertisement expense 8470
Trade receivables 106960
Cash in hand 2440
Total current assets 219510
Free Hold Premises 270000
Equipment 67980
Vehicle 28000
Total non current assets 365980
Total assets 585490
Liabilities and equities:
Current liabilities
Trade payable 76910
Bank overdraft 11290
Out standing salary 1220
Accumulated depreciation
(42150+105000+16800) 163950
Total current liabilities 253370
Capital 332120
332120
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Total equities and liabilities 585490
P5 Explain how break- even analysis could be applied to an organisational situation
Break even analysis:- This can be defined as factor that can be defined as relation
between cost volume and profits at various stages of any business to determine break even point.
It can be referred to that level when an firm is facing neither profits nor loss at a particular time
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(Yin and et. al., 2011). It is ex-plained as that period of time when an organisation gain its total
capital invested at the beginning from sales.
(Source: Break Even Point Analysis, 2018)
Formula for break even :- It is necessary to measure break even point of any
organisation to know about that much time when they can receive total amount of capital
invested at the time of beginning of any business. Badger Mining Corporation have to calculate
this which reflects percentage of revenue that remains after several pays of expenses. Break even
point of firm is essential to measure due to location into regular income statement which is also
known as earning evidence of profit and loss.
Break even point = fixed cost/contribution
Contribution per unit = Selling price per unit- variable cost per unit
Break even point:- This term can be described as that point where sales of volume at
total revenue is equal to total cost. It is considered that level at which no loss and no profits will
received in Badger Mining Corporation with equal sales to profits.
Sales revenue of Break even point = fixed cost + variable cost
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Illustration 2: Break Even Point Analysis

Fixed cost:- This term can be expressed as those expenses which are fixed ion an
organisation. These factors are independent of outcomes and exist or arise at zero stage of results
to found it in short period. It is known an supplementary cost and essential to measure
contribution (Harris and McCaffer, 2013).
Variable cost:- This kind of expenses are variable which means these are changeable as
per situations or needs of firm's aspects. It may become as zero at that level itself of outcomes
and are accepted in short and long period of time and also known as prime costs.
Advantages of Break even analysis
 Such learning aspects are supportive to analyse thoughts or issues as it is shown clearly in
detail.
 It will become helpful to manage and prepare more effective decisions as it render
information related to cost, volume and variable cost at various stages results.
 This will facilitate to make or forecast costs and profits in order to plan and attain growth.
 It is an important technique to control of cost as it will render relative essential prospects
of fixed expenses.
 This analysis will help to determine profitability at various stages with the break even of
organisation.
 It will facilitate suitable opportunities to learn about efficiencies of any business on
comparative criteria (Herbane, 2013).
Disadvantages of Break even charts
 As it based on several kind of assumptions which are generally not completed exactly
according to situations.
 This analysis provides only cost-volume profit relation and ignore other essential factors
such as promoting threats government policies, amount of money invested etc.
 This element does not provide any methods or steps to management as an appropriate
technique of managerial decisions.
Uses of break even analysis
 It is helpful in determining sales and volume in efficient way properly.
 This will support to forecast profits calculation of revenue and cost for organisations.
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 It is helpful in rendering appraisal to certain affects of modifications on volume of sales
an expense of production (Mohan and Chitale, 2016).
 This will facilitate to make choice of goods or services and show product mix as well.
 Improvement or declining in cost of fixed as well as variable expenses can be shown.
Badger Mining Corporation have to measure it break even because it is an essential
aspect which helps to determine forthcoming cost and volume by support of break even analysis.
This will facilitate to make better decision on order to make more effective as well as efficient to
attain better productivity among with profitability.
P6 Interpret key financial statements for successful management
There are various kind of financial statements which are necessary to maintain as they are
important to make several managerial decisions. This is essential in order to make suitable
strategies as well as policies to do successful management ion organisation. Badger Mining
Corporation have to record several economical statements which are able to facilitate effective
and efficient managerial decision making. Some of these basic statements are given below:
Balance Sheet:- It refers to information about liabilities and assets of an organisation.
The information in balance sheets drives many business decisions for working efficiently to
generate millions of profits in annual sales. It can be done through simply changing credit
policies and focussing on streamlining collections. This can facilitate to observe possibilities for
growth and efficiencies behind numbers in balance sheet. It is an important financial statement
which help in the management of the organisation by providing a snapshot of company's
performance at a given time such as the end of a quarter or fiscal year. With the help of this
document, the management can identify its assets and liabilities and stakeholders equity.
Cash flow statement:- It included in flows and out floes of cash which are necessarily
recorded for future requirements. It is helpful in managerial decisions that are profitable and
based on standard accounting methods (Skarpová and Grosová,2015). Cash flow statements are
present reality of firm's capability to maintain operations. It may facilitate all short and long term
decisions of mangers in company. It is an another important statement which help in the
management of the organisation. It help help in manage and maintain the records of cash and
cash equivalents that followed into and out of a company in a given period. It help in estimating
the number of upcoming expenses and make a judgement as to where there may be any revenue
gaps with the potential of non payment of business liabilities and debts.
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Profit and loss Statement:- This can be described as profit and loss evidence of small
business which is also known as income statement. It may include income, costs of goods sold,
gross profit, expenses, taxes and net profit or loss. With the help of this document, the firm can
monitor the expenses and gains of the company and can manage its business according to it. For
example, if the profits are high then the firm can expand its business. But if the firm in loss then
it will manage its resources and extra expenses.
It is helpful in rendering healthy, growing business which is needed to manage benefits
and losses. It may facilitate correct way of changes to enhance productivity as well as
profitability of company. Badger Mining Corporation can adjust its payments terms, cut
expenses or make more sales. It will support to build managerial decisions in order to controlling
operating expenses and costs of goods sold to maintain margins of profits intact.
TASK 4
P7 Discuss key legislation and regulations that have implications on small businesses or social
enterprises
It is important to follow various types of rules and norms which are prepared by legal
authorities of industrial area. Establishment of such kind legislations and regulations are
necessary so that every small-medium enterprise an easily mange and run their business properly
without having large issues. Badger Mining Corporation have to know about about all such rules
applied by government and follow them in correct way to carrying out various activities or
projects smoothly and peacefully. Several regulations are given below:
Healthcare:- Every firm have to make sure that their employees are working for them
then they are responsible for any health issue created in working hours (Stanciu, 2015). It is
necessary for Badger Mining Corporation to make important rules related to health problems and
implement them. They have to provide several provisions related to health care to staff member
for their welfare.
Defence of marriage act (DOMA):- This act states that rules relevant to enhancing
federal definition of marriage to involve same gender spouses. This important impact ion these
rules that includes payroll taxes and health insurance along with employment norms like Family
Medical Leave Act (FMLA).
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Immigration and E-verify:- It may refers that immigration reforms very much remains
on radar. It will highlights of proposed regulations includes essential needs for all workers and
potential release in new innovation of eligibility of employees verification form (Stolzer, Halford
and Goglia, 2011).
Employment regurgitations:- There are various kind of laws related to employment
which are necessarily fulfilled by organisations. This aspect plays an essential role in case of
misclassification as vigorous enforcement of minimum compensation, overtime provisions and
independent contractors under Fair labour Standards Act.
CONCLUSION
The above report had concluded that it is important to make planning of allocating various kind
of tasks and activities by considering essential factors. The firm have to make proper investment
of sources which are available to human resource for organising important events in correct
manner. It is necessary to establish effective customer relationship management by several
procedures for expand good will of brand along with profitability of an enterprise. There are
different types of financial statements which are necessarily maintained like cash flow, balance
sheet and profit or loss accounts. Break even analysis are essential to about position of firm
exactly in current scenario. Several rules and legislation must be followed by small medium
enterprise to mange and run successfully.
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REFERENCES
Books and Journals
Baker, M. J., 2014. Marketing strategy and management. Palgrave Macmillan.
Dobra, A., 2012. VBA for Tracking Manufacturing Process in SME. In Applied Mechanics and
Materials (Vol. 186, pp. 176-181). Trans Tech Publications.
Doherty, L. and Norton, A., 2013. Making and measuring “good” HR practice in an SME: the
case of a Yorkshire bakery. Employee Relations. 36(2). pp.128-147.
Durst, S., Yip, J. and Lee, R. W., 2015. SME Succession Planning and Knowledge Loss
Assessment. Knowledge Management for Competitive Advantage During Economic
Crisis, pp.282-298.
Easterby-Smith, M., Thorpe, R. and Jackson, P. R., 2012. Management research. Sage.
Eggers, F., and et. al., 2013. The impact of brand authenticity on brand trust and SME growth: A
CEO perspective. Journal of World Business. 48(3). pp.340-348.
El-Rafei, S. M., and et. al., 2017. Detecting anomalous process behavior. U.S. Patent 9,633,198.
Harris, F. and McCaffer, R., 2013. Modern construction management. John Wiley & Sons.
Herbane, B., 2013. Exploring crisis management in UK small‐and medium‐sized
enterprises. Journal of Contingencies and Crisis Management. 21(2). pp.82-95.
Mohan, A. K. and Chitale, R. H., 2016. Managing Influence of Inventory Bullwhip Effect on
Profit Maximization in Rural Retailing Using Monte Carlo Simulation. Journal of
Contemporary Management Research. 10(2). p.24.
Skarpová, L. and Grosová, S., 2015. The Application of Business Network Approach for Small
and Medium Enterprises (SME) with regard to their Buying Behavior. Journal of
Competitiveness. 7(3).
Stanciu, R. D., 2015. Performance Management-A Strategic Tool. FAIMA Business &
Management Journal. 3(2). p.5.
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Stolzer, A. J., Halford, C. D. and Goglia, J. J. eds., 2011. Implementing safety management
systems in aviation. Ashgate Publishing, Ltd..
Yin, C., and et. al., 2011. Common key technology system of cloud manufacturing service
platform for small and medium enterprises. Computer Integrated Manufacturing
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Online
Customer Relationship Management. 2013. [online]. Available through:
<https://www.jagsheth.com/relationship-marketing/customer-relationship-management-
emerging-practice-process-and-discipline/>
Break Even Point analysis, 2018. [Online]. Available through:
<https://www.accountingformanagement.org/break-even-point-analysis/>
Benefits of CRM. 2018. [Online]. Available through:
<https://smallbiztrends.com/2013/08/benefits-of-crm-choose-platform.html>
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