Managing and Running Small Business

This document explains the main considerations of resource planning for a small business, including the assessment of customer value and the development of effective communication channels. It also highlights the benefits of IT services in small business.

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Managing and Running Small Business

Internationalization: The meaning of globalization is sales of goods
and facilities offers in all over the globe. On the other hand, venture
sells its commodities and services at global level so firm can gain the
high profitability (Park, 2018). When organization adopt
internationalization then it make expansion in its business by operating
it in several nations of the world so that it can offer its products and
services to the consumers of all over world.
Benefits of transactional sales in AKS IT Services are as explained
Independence: A business is uses transactional sales in context of
run business autonomously without any intervention. So productivity
and margin can be developing effectively. Organization can maximize
the quality of the commodities and offer the better services of the
manpower. So organization can take the efficient and analyze the right
business decision. The management of AKS IT Services is enlarging
its customer base by selling their effective IT products and services to
consumers so they feel good and increase foreign investments.
Lifestyle: It is most crucial to the chances in lifestyle of people who are
providing different standard of living which help in making effective
business analysis. Establishment utilizing transactional sales, AKS IT
Services can make increment and enlargement in its sales and
economic system (Tidd and Bessant, 2018). The respective venture
can provide a help to its consumer regarding lifestyle and offer them
Brand recognition: Once the venture sales and profits are increase then
brand images of the firm also improved and administrated (Pakroo, 2018).
So enterprise can help in increasing the business performance by
managing its high profitability. AKS IT Services providing good attributes
and features services that help in administrating the brand image by
transferring facilities.
Increase in revenues: Organization sale their commodities in other
nations and make expansion its business as well as satisfying consumers
demands. So that firm can administrate its high profitability by running its
business in well defined way. The establishment can make foreign
investment and make increment in its revenue and earnings.
Drawbacks are transactional sales are as defined:
Financial Risk: Once the firm makes expansion in its business, the
venture can suffer number of complexities that can be related to fiscal risk,
treat of rivalry and many more. The risk of monetary value states that the
firm does not convinced about investments to earn growth and progress
that increase threat that are accessible there (Tu, 2018). Apart from this,
business can experience the monetary risk when they have low
administration or defective economic analysis.
Lengthy process: Internationalization of transactional sales are a long
time consuming act and process that can create complexities for firm to run
business and earning profit margin. Firm can take the permissions from
international governance where business is set up. It is not ease activity to take
the authorization and assemble the resources to establish enterprise which can be
Premises and equipment– Business destination for a business is one
of the essential and crucial aspects. It assists highly at basic step of the
business for new consumer search the business destination
(Kgoroeadira Burke and van Stel, 2019). AKS IT Services is having
effective infrastructure in line with their business need that assist them
for effective consumer involvement. Along with this, the business
principles appropriate set of instruments for IT business is complex
i.e. network infrastructure, hardware equipment etc. Scarcity of right
set of machinery will affect the business negatively.
People and skills– When the accurate set of infrastructure is
framed then next phase are to select right set of human resources with
appropriate skills and knowledge. Because when the company has
talented employees then it can execute its task and accomplish set
business goals on time. As the main accountabilities are on the
individual promoter only, it becomes more complex for small business
to have less individual with effective capabilities and competencies to
do multitasking. Along with this, it is also crucial for firm that people
are multitasking as limited number of employees it required talented
individual who help in hitting its set objective in limited time duration.
A business plan– Once all resource is in place it is crucial to align
them with the set company aims. The management of AKS IT
Services has effective mission and vision for the firm in the place that
assists leading the resource in accurate form to attain maximise
productivity (Torrès and Thurik, 2019). In this kind of plan or
document, explaining about a business, it commodities and facilities,
how it gains finance, its leadership and staffing, its financing, its
operations and many more details which is important for the
development of company.
ACTIVITY 1
P1. Demonstrate the main considerations of small enterprise
which needs to address in planning while allocating resources to
achieve business objectives
Small Business– It refers to that business which is explained as
privately owned enterprise with limited assets in comparison to a
company. The business volume of this kind of entity is limited and
there are less number of workers and resources that make their
contribution in performing business activities and operations (Rowe,
2020). Small business is independently owned firms that need less
capital and less manpower and less number of machinery. These
businesses are basically established to operate on a small scale to serve
a local community and to offer profits to the organisation owners.
People are taking all risk, threat and plan to accomplish all targets set
for the development of business.
Planning Resources– It is critical for the small businesses as the assets
are much limited in temperament so high usage of assets is very hard
and complex for business. Therefore, it is important for the business to
form plans and policies as well as strategies to attain the more output
from the accessible assets. It consist recruitment and assortment of able
and skills manpower, planning for resources to get optimised
outcomes. In AKS IT Services, the administration of this firm uses
several planning tools and methods to maximise the productiveness of
resources (Massaro and et. al., 2019). The main motive of resource
planning is to increase resource effectiveness when simultaneously
offering an overview of asset’s accessibility and ability. Resource can
be anything which is used by enterprise to perform a task and
accomplish set business objectives from humans to machines and
meeting rooms to computer software. There are several kinds of
planning resources are used by small venture and the explanation of
them as below:
Customer relationship management– Target audience is the main
resource for a business to be its small and larger. For small business
consumer servicing is highly crucial cause of the smack size of
business (Steingold and Steingold, 2019). The supporter of AKS IT
Services are playing the major role to find out the new consumers,
analysing the demands and trying to satisfying them.
Assessment of customer value– When the facilities are offered to
target audiences, it is crucial to take the consumer response to
determine the individual’s level of satisfaction. High extent of
consumer fulfilment directs to monotonous business and new target
audiences to the business. It is a logistic and systematic action and
activity that are operate by management in context to enlarge the
business profit and productivity. Diverse types of planning assets are
uses by organisations such administrable, semi-controllable which are
managed by managers which helps to preserve the efficient
performance. AKS IT Service is devising uses of planning techniques
and methods by analysing goals and aims that are important which
manage the productivity.
Developing effective channel for customer communication–
Communication is a crucial activity and procedure that is operating
business enterprise which enable in running the business. It is crucial
business firm to have consumer communication that can maximise
business engagement (Park, 2018). Target audiences are major
resource for respective venture who administrate good relationship
with consumers by utilising IVR mobile, newspapers, direct selling
and web self facilities that assists to get attentions of consumers and
develop profit margins.
E-mail and digital marketing keep strong relationship– This step
is associated to consumer relationship personally and utilises several
techniques and methods to from appropriate communication.
In UK, there are several tools and assets which are used by business ventures to
make good relations with target audiences (Steingold and Steingold, 2019). The
administrator of AKS IT Services is offering several kinds of techniques like E-
mail and digital marketing tools such as print media to make improvement in
business execution and manage profit margins ratio.
Network development– It is another activity that is use to develop network
extension by improving effective relationship with customers that assists in
increasing the business execution. Respective business enterprise is utilising
several networking sites which assist in building effective relationship with
consumers. It helps in managing the improvement of their business by enlarging
profit margins. The administrators of such establishments are improving
effective relations with suppliers, capitalist, consumers and many others that
assist in developing production of organisation.
Therefore, CRM is an activity and process by which respective business
establishment can assists to develop the business execution. Small business is
having good employee and consumer relationship and network that develop
business profit margins.
P3. Explain how a business can develop transnationally and determine
benefits and drawbacks
Transactional Sales: The major aim of the corporation is to increase the sales
of selling the commodities and maximize the profitability of business firm.
Organization wants to enlarge the sales in fewer time frames (Crane and et. al.,
2019). Establishment offers the best quality commodities and tries to satisfy the
requirements of consumers and increasing sales by attracting number of target
consumers.