Managing and Running a Small Business

Managing and running a small business
INTRODUCTION
For every organisation, it is important to manage and run their
business effectively and efficiently. Managing a small business is
considered as an ambition for few of an individual. The idea of
business may be coffee shop to repairing workshops no matter which
is. For this report, the undertaken organisation is Oakman Inns &
restaurants Ltd. which was established in year 2007. It is developed
with unique concept that is ‘Modern public house’ and having
headquarters is in Tring Hertfordshire, United Kingdom. The topics
that will be discussed in this report are essential consideration that
small business required to address resource allocation and planning.
Moreover, evaluation of several consumer relationship procedures,
determination of small business can formed transnational along with
their advantage and limitations. Along with this, monthly cash flow
forecast, application of break even analysis on firm’s situation and
Interpretation of key financial statements. Apart from this, some key
legislation which have implication on small business are also discussed
in this report.
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs
to address when planning and allocating resources to achieve business objec-
tives.
Currently, small business are motivated through society as well as
government as this is helpful in boosting country’s economy as by this they can
drives towards maximisation of individuals competencies, employment rate and
others. So, there are numerous key considerations that a small or societal
enterprise required to execute during resource allocation and planning for
accomplishing objectives. Likewise, Oakman Inns & restaurants Ltd. should
consider this aspect while performing their business practices: some of them are
discussed underneath:
Ascertaining the project scope: As per Oakman Inns & restaurants Ltd., it
has to ascertain their business scope. Within this, it will determine the customer
reactions either they have keen interest on it or not. So, with the assistance of this,
they can able to analyse its business sustainability periods.
Determining the requirement of resources: In context of Oakman Inns
& restaurants Ltd, they has to analyse the resource requirement which are essential
for attainment of its goals appropriately. So, for respective organisation the
essential resources will be human resources and advanced technology for tracking
customer address, its views related to food items and others.
Formulate effective plan for resource allocation: In this context,
Oakman Inns & restaurants Ltd. should formulate effective resource allocation
plan as with the assistance of this resource are utilised efficiently without more
wastage. Also, this will direct their management to utilise the resource in more
appropriate way.
Therefore, the above mentioned are some key consideration that of

CRM and Transnational Operations
P2 Explain and evaluate different processes of customer relation-
ship management for a small business or social enterprise
Customer relationship management is considered as a techniques
which intent for encompassing overall interactions of business with
past, present as well as future client with an aim to improve consumer
relation in that enterprises. Moreover, its objectives is to accumulate
appropriate data regarding clients as well as utilise it effectively for
enhancing the optimistic customer interaction with Oakman Inns &
restaurants Ltd. which would be outcomes into sales maximisation. The
system of CRM is generally collaborative, the accumulating
information with the help of whole customer relationship phases such
as service facilitator, marketing and others enable respective
organisation managers to develop appropriate decisions.
The management of consumer relation is an approach for
handling Oakman Inns & restaurants Ltd. communication with present
as well as targeted clients. This utilises data analysis related to history
of consumers for improving business relation with audiences, mainly
concentrating upon consumer retention as well as ultimately drives the
growth of sales. One of the essential aspects of this CRM system which
compile information from ranges of various communication channels
involving respective organisation websites, live cha, social media and
many others. So, with the assistance of this system as well as approach,
the Oakman Inns & restaurants Ltd. get knowledge regarding its
targeted customers and how to accomplish their requirements in
effective way.
Customer relationship management is also regarded as the accumulation of
strategies, technologies and activities which Oakman Inns & restaurants Ltd. apply
for managing as well as analysing information and interaction of customer all over
consumer life cycle with intent of developing customer relations and helps into
client retention, enhancing sales tec. The system of customer relationship compiles
consumer information across various channels that involve Oakman Inns &
restaurants Ltd. marketing material, direct mails, website, social media and others.
This also facilitates consumer facing employee data upon clients’ buying history,
preferences, personal data and many more.
So, for Oakman Inns & restaurants Ltd, customer relationship management
includes:
 Procedures which assists them to determine and targeted their potential
clients, produced effective sales leads as well as execution of marketing
campaigns with appropriate objectives.
 Procedures which assists to develop effective relation with clients for
improving consumer satisfaction as well as facilitates higher degree of
client’s services to the very much potential and profitable consumers.
 Procedures which facilitate staff with the data, they required for
understanding its clients requirements as well as desires and develops
effective relations among organisation and their clients.

P3 Explain how a small business can develop transnationally and
determine the benefits and drawbacks.
Small enterprise can formulate transnational with the assistance
of numerous aspects, this is considered as the development of activities
that is performed all over the country. The Oakman Inns & restaurants
Ltd. management want to develop its business internationally so or this
it required consumer relationship management procedures that’s
involve developing portfolio of potential consumer as by this it can
able to build network effectively and also their management require to
ascertain understanding in respect of plan and strategy formulation. So,
some benefits and limitations are discussed below:
Benefits:
Grab the attention of new customers: It is considered to be the
fundamental advantages of Oakman Inns & restaurants Ltd. business
expansion. This is essential for them to grab the attention as well as
retain new consumers. For example: when firm add new services to its
portfolio or moves in new marketplace then they may bring into
beforehand untapped consumers market. So, to reach out the new
clients with expansion is a thing, but obtaining them for longer period
is fundamental. Therefore, developing loyal base of customer is
effective way to attain stability as well as gaining profitability over
time.
Economies of scale: While exploring business, the firm often
broaden the risk related to performing business as well as minimising
product potential or a worst decision that impact its business
negatively.
Performing into various market places enable them to increase business cost across
potential market or clients. So, this is helpful into less business cost performance
upon per consumer basis that develops towards profitability through adding extra
consumers. Therefore, it is beneficial for Oakman Inns & restaurants Ltd.
Limitations:
Limited expansion: The Oakman Inns & restaurants Ltd. manager wants to
expand its business effectively. So, through involving into various services or
markets may cause the firm to increase their competencies out to the point which
is not effective. Expansion of business only creates a sense that in case firm has
appropriate resource for covering the new marketplace or expertise with them.
Therefore, a respective organisation manager feels that it affects their business
pessimistically.
Requirements of huge capital: The limitation of expanding business is that
if a firm or restaurants like Oakman Inns & restaurants Ltd. invest its money as
well as some other resources for expanding their operation, there is not more
capital available with them for another business transaction. Undertaken the potent
return upon investment for every services or new marketplace it could explore
within, before investing its capital into a way of expansion. Firm’s obligation of
debt may be manageable if cash flow is analysed timely and sales inconsistent.
CRM and Transnational Operations