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Managing and Running SME

   

Added on  2020-10-23

21 Pages6252 Words473 Views
MANAGING ANDRUNNING SME

INTRODUCTION.....................................................................................................................................3TASK 1....................................................................................................................................................3P1 Main considerations a small business needs to address when allocating resources....................3TASK 2....................................................................................................................................................6P2 Evaluate different processes of customer relationship management...........................................6P3 Analysis of development of small business transnationally with its benefits and drawbacks.......7TASK 3....................................................................................................................................................9P4 Formulation of monthly cash flow forecast showing fixed and variable costs..............................9P5 Break even analysis ....................................................................................................................12P6 Interpretation of key financial statements and its contribution in successful management......13TASK 4..................................................................................................................................................15P7 Implication of key legislations and regulations upon small businesses.......................................15CONCLUSION.......................................................................................................................................17REFERENCES.........................................................................................................................................18

INTRODUCTIONIn this ever dynamic business environment, every organization, i.e. small or large istend towards creating strategies and policies which helps them to obtain maximumsustainability at marketplace. The number of small businesses is rapidly increasing in UK butthey also face huge market competition cause of wide presence of large corporations. In thismanner, while running a SMEs managers are required to ensure about all necessary resourceswhich helps in effective completion of all business activities and tasks (Wynarczyk,Piperopoulos and McAdam, 2013). It also helps small businesses in expanding their marketshare and increasing sales as well. Café Yum-Tum is the chosen organisation for completionof this report which is located in Queen street of London and offers variety of coffee andother beverages to people. The main motive of the café is to sells moderately priced food toan upscale casual dining market. This assignment is going to be described major factors thatshould be considered while managing a small business. There will be a discussion uponprocess of customer relationship management and the concept of break-even analysis, TASK 1P1 Main considerations a small business needs to address when allocating resourcesIn business environment, different factors are being presented which can affectbusiness functions or processes and firm’s don’t have any control upon these factors. In orderto prepare a business plans for small businesses managers should assess these elements so asto accomplish goals in stipulated time frame. It also helps them in planning and allocatingresources in the best possible manner. There is colossal connection among compellingallotment of assets with achievement of targets. Lack of resources can influences the workingcapacity and generate vast of issues are occurred towards achieving objectives. In this way, ifall resources like assets, representatives, vision and mission and so forth oversaw incompelling 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 andespresso-based beverages, granita ices, fruit smoothies and juices, and other beveragestypically associated with a coffee shop. A dessert bar will serve a range of freshly prepareddesserts, as well as baked goods associated with breakfast.

Following are the main features which must be considered by Café Yum Tum isstated as under: - Requirement of funds: Working capital is one of the most imperative resources that isrequired to complete all functions or operations effectively. It is prime obligation ofassociation is to recognize the need of funds by every department to do their workingactivities and tasks. It decides about accessibility of assets. In the event that if fundsare not adequate then they have the obligation to recognize the distinctive sourcesthrough assets are raised effortlessly to conduct future tasks. It is very unimaginablefor small business association is to work without adequate measure of working capitalwith full limit. So that management of Café Yum Tum need to decipher its financialarticulations to comprehend about their costs, wage, inflow and outflow of cashmoney and so on. It gives the chance to outline strategies which expels theirsuperfluous costs. For example: If company wants to expand its size and wealth thenthey have to increase level of productivity and produce number of items as well asvarieties so that more customers can be attracted. For this purpose, appropriatefinancial resources are required to run entire business operations in well manner. Objectives, vision and mission: There is gigantic effect of goals, vision and mission ofassociation with respect to detailing of their distinctive plans about variousperspectives and planning of resources according to genuine requirements. The goalof Café Yum Tum is to serve tasty and delicious food to customers’ by valuing theirmoney and always focus on generating something new. For this purpose, managementis required to use of current promoting procedures to enhance deals. It comprehendsthat need to hire a new marketing team (Weske, 2012). For example; company mustbe sure about their visions and mission that are to be achieved. Therefore, Café YumTum required to plan for setting their major objectives and aims so that all tasks canbe divided accordingly. It also support in allocating resources among differentactivities so that goals can be attaind. Human resources: Workforce planning is one of is critical task for management as itfulfils the requirement of human resources in a business organisation. It helps inauspicious fruition of their errands inside stipulated timeframe. Due to lack of humanresources reduces the production or output level which all affect sales andprofitability. Determination of number of workers required, exhibit aptitudes and

proficiencies and so on. It also aids in organising training and development programswhich helps in improving current abilities and contributes of staff members inaccomplishment of their coveted outcomes. There are required adequate humanresources and manpower for performing all tasks with an effective manner. Café YumTum considered its staff members and divide work as per their abilities or capacitiesthat facilitates in achieving success. Internal policies and external influences - Internal policies are based on negotiationsand bargaining affects resources allocation. Apart from this, demand of stakeholdersof the firm also hinder planning and resource allocation. Stakeholders can be –customers, owners, employees, management, suppliers, creditors and localcommunities. Law and legislations of the nation should be also taken into accountwhile planning resources, like - pollution control, safety and labour welfarerequirement. This is necessary to formulate various policies and rules or regulation torun business operations in adequate ways. Café Yum Tum has to undertake severalfactors as internal and external that can influence the organisation and its operations.Therefore, manager has to plan for making effective strategies and corrective actionsfor surviving from such circumstances. Allocation of resources within organisation:There are defined number of tools and techniques that support in effective utilisations of available resources and their allocations in well manner. Some are as follows:Crtitical path analysis: This path help in provide adequate information regarding different paths that must be required for completing task and achieve objectives in an effective way. This tool support in defining the particular time period which needed to complete project. It isessential in allocating resources among different activities as per the time schedule so that better gaols or objectives can be attained. Gantt chart: This is known as graphical representation where defined the project on paper and chart form. It is a bar chart that describe the start and finish date so that activities can be scheduled effectively. Importance of allocating and planning resources to achieve objectives:

Café Yum Tum can attarcts more customers by providing number of items of foods tothe target audience. Planning will support in improving profitability and productivity This is helpful in optimising available resources for getting maximukm outcomes.It is essential in increasing market share and achieve sustainability within time frame. Therefore, Café Yum Tum can achieve predetermined goals or objectives in an effectivemanner. TASK 2P2 Evaluate different processes of customer relationship managementIn order to attain high market viability and build up a strong goodwill overmarketplace, small business organisations are required to keep positive relation withcustomers by satisfying their needs and wants in the best possible manner. Thus managingdepartment of Café Yum Tum should focused on determining issues which can affect valueof their products and develop policies to resolve them as soon as possible, The firm can alsoacquire a system approach for that is based upon effective management of customerrelationship. The term customer relationship management is an application which is acquired tomanage a firm’s relation or interaction with its target and potential customers; it aids inraising cost-effectiveness. CRM is not just for sales but also helps in embedding businessfrom HR to consumers services as well as supply chain management. In present scenario, tokeep strong customers’ relations small firms are acquiring CRM tool which reliefs in contactmanagement, workflow process, sales management, productivity and so on (Jenkins and et.al., 2013). Below is defined procedure of customer relationship management: - Identification of clients base: It is the initial step which incorporates division ofcustomers on the basis of benefit. Determining client base helps in assurance of most gainfulportion of clients. Through this items are given according to such target section which helpsin change of offers too. Café Yum Tum analyse its customers’ portfolio by conducting amarket research and recognise their needs and wants and trying to satisfy them in the bestpossible manner.

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