Managing and Running SME: Considerations, CRM, Transnational Development, Cash Flow Forecast

MANAGING AND
RUNNING SME

INTRODUCTION.....................................................................................................................................4
TASK 1....................................................................................................................................................4
P1 Main considerations a small business needs to address when allocating resources......................4
TASK 2....................................................................................................................................................6
P2 Evaluate different processes of customer relationship management.............................................6
P3 Analysis of development of small business transnationally with its benefits and drawbacks.......7
TASK 3....................................................................................................................................................8
P4 Formulation of monthly cash flow forecast showing fixed and variable costs..............................8
P5 Break even analysis....................................................................................................................11
P6 Interpretation of key financial statements and its contribution in successful management.........12
TASK 4..................................................................................................................................................13
P7 Implication of key legislations and regulations upon small businesses.......................................13
CONCLUSION.......................................................................................................................................14
REFERENCES........................................................................................................................................15

INTRODUCTION
In this ever dynamic business environment, every organization, i.e. small or large is
tend towards creating strategies and policies which helps them to obtain maximum
sustainability at marketplace. The number of small businesses is rapidly increasing in UK but
they also face huge market competition cause of wide presence of large corporations. In this
manner, while running a SMEs managers are required to ensure about all necessary resources
which helps in effective completion of all business activities and tasks (Wynarczyk,
Piperopoulos and McAdam, 2013). It also helps small businesses in expanding their market
share and increasing sales as well. Café Yum-Tum is the chosen organisation for completion
of this report which is located in Queen street of London and offers variety of coffee and
other beverages to people. The main motive of the café is to sells moderately priced food to
an upscale casual dining market. This assignment is going to be described major factors that
should be considered while managing a small business. There will be a discussion upon
process of customer relationship management and the concept of break-even analysis,
TASK 1
P1 Main considerations a small business needs to address when allocating resources
In business environment, different factors are being presented which can affect
business functions or processes and firm’s don’t have any control upon these factors. In order
to prepare a business plans for small businesses managers should assess these elements so as
to accomplish goals in stipulated time frame. It also helps them in planning and allocating
resources in the best possible manner. There is colossal connection among compelling
allotment of assets with achievement of targets. Lack of resources can influences the working
capacity and generate vast of issues are occurred towards achieving objectives. In this way, if
all resources like assets, representatives, vision and mission and so forth oversaw in
compelling way which facilitates the process to attaining vision and mission of the company
(Williams, 2012). Café Yum Tum is a newly establish café which is located in Queen street,
here wide range of people usually come in a day. The venue features brewed coffee and
espresso-based beverages, granita ices, fruit smoothies and juices, and other beverages
typically associated with a coffee shop. A dessert bar will serve a range of freshly prepared
desserts, as well as baked goods associated with breakfast.

Following are the main features which must be considered by Café Yum Tum is
stated as under: -
 Requirement of funds: Working capital is one of the most imperative resources that is
required to complete all functions or operations effectively. It is prime obligation of
association is to recognize the need of funds by every department to do their working
activities and tasks. It decides about accessibility of assets. In the event that if funds
are not adequate then they have the obligation to recognize the distinctive sources
through assets are raised effortlessly to conduct future tasks. It is very unimaginable
for small business association is to work without adequate measure of working capital
with full limit. So that management of Café Yum Tum need to decipher its financial
articulations to comprehend about their costs, wage, inflow and outflow of cash
money and so on. It gives the chance to outline strategies which expels their
superfluous costs.
 Objectives, vision and mission: There is gigantic effect of goals, vision and mission of
association with respect to detailing of their distinctive plans about various
perspectives and planning of resources according to genuine requirements. The goal
of Café Yum Tum is to serve tasty and delicious food to customers’ by valuing their
money and always focus on generating something new. For this purpose, management
is required to use of current promoting procedures to enhance deals. It comprehends
that need to hire a new marketing team (Weske, 2012).
 Human resources: Workforce planning is one of is critical task for management as it
fulfils the requirement of human resources in a business organisation. It helps in
auspicious fruition of their errands inside stipulated timeframe. Due to lack of human
resources reduces the production or output level which all affect sales and
profitability. Determination of number of workers required, exhibit aptitudes and
proficiencies and so on. It also aids in organising training and development programs
which helps in improving current abilities and contributes of staff members in
accomplishment of their coveted outcomes.
 Internal policies and external influences - Internal policies are based on negotiations
and bargaining affects resources allocation. Apart from this, demand of stakeholders
of the firm also hinder planning and resource allocation. Stakeholders can be –
customers, owners, employees, management, suppliers, creditors and local
communities. Law and legislations of the nation should be also taken into account