Business Law and Regulations for Small Firms

This assignment explores the crucial role of business law and regulations in the successful operation of small enterprises. It delves into specific acts like the Health and Safety Act, Record Keeping (2006), Labour's Compensation Act, and Employment Law, highlighting their impact on various aspects of a small business, including employee well-being, financial management, and ethical conduct. The document emphasizes the importance of understanding and complying with these regulations to ensure a sustainable and prosperous business environment.

MANAGEMENT
AND
RUNNING SME

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1............................................................................................................................................1
M1...........................................................................................................................................2
M2...........................................................................................................................................3
D1...........................................................................................................................................3
TASK 2............................................................................................................................................3
P2............................................................................................................................................3
M4...........................................................................................................................................6
D2...........................................................................................................................................6
TASK 3............................................................................................................................................6
P4............................................................................................................................................6
P5............................................................................................................................................9
P6..........................................................................................................................................10
M5.........................................................................................................................................11
D3.........................................................................................................................................11
TASK 4..........................................................................................................................................12
P7..........................................................................................................................................12
M6.........................................................................................................................................12
D4.........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
There are range of policies and plans that are utilised to manage the variety of functions and operation of any enterprises (Alrawi, Alrawi
and Alrawi, 2015). SME is the types of small and medium business group of company which always implement new and advance technology in
order to explore its business in part of world. As per international report it has been assumed that there are various number of small and medium
organisation are performing their business activities in UK. They have very tight competition between them. Rowlinson Knitwear is the small
and medium company which deals to produce different variety of clothes for students and corporate officials working in various organisation.
This report explains about the various methods and process which are used to perform various kind of operations of enterprise in an effective
way. It also describes about the statement related to cash flow, Break even Analysis and financial distribution of funds with in organisation.
TASK 1
P1
The management of organisation needs to concentrate on to improve the worth of diverse clothes that is given to the school going
children and corporate officials. Rowlinson Knitwear is the organisation which sells various design of clothes to the various students who are
going to schools and corporate officials who are performing their work at different corporate office so it needs to provide those dresses at
reasonable price which helps the company to maximising its level of profit of company in appropriate way. It leads to attract great amount of
customer in the marketplace (Chaudron, 2016).
People and skills: In order to develop the abilities and knowledge of work force working in the enterprise human resource department
plays a significant role. This department is the backbone of any company. It determines the different types of necessity and requirement which
are ascertain by employee to produce good quality of cloths for their loyal customer. The HR manager of Rowlinson Knitwear have capability to
regulate their as per their capabilities in order to complete different types of task assigned by company in stipulated time period. Manager has to
carry out learning programs for employee to enhance abilities and information of work force performing their duty in a particular commercial
enterprise.
Vision, goals and objectives: The management needs to determine the condition of market before starting its business (Del Giudice and
Straub, 2011). The vision of company needs to explains to the staff members how operations are to be perform in the organisation in order to
maximise its profit level. This leads to maintenance of efficiency to perform different types of activities of organisation in proper manner. If the
organisation attain growth it leads to boost the morale of employee working in organisation in proper manner. It further assists to achieve set
targets of an enterprise in most appropriate manner. By defining the vision to their employee it aids to perform different function and operation
of company can accomplish in stipulated time period. The manager of organisation needs to monitor the performance of employee and also
accomplish different types of needs and want which is necessary to perform various variety of operation in appropriate way. There are various
roles and duty needs to define by employee in order to perform various activities in a systematic manner.
Financial resource: This is considered as the most important part of company. Every activities of company are based on this part
because it allocates different resource in order to collect funds which aid to perform different type of function in a desirable way. The
management of an enterprise need to analyses about the financial position of organisation in order to perform different types of function in
effective manner. This contain like cash flow statement, Balance sheet, P&L account a many other assets. The manager has to take required level
of efforts in order to carry out various task of organisation in proper manner. Lastly it assists in influencing the choice of customers to a great
extent (Doenig and et. al., 2013).
M1
In order to allocate various resource and implement effective plan in order to carry out divers tasks and projects of the enterprise. The
management needs to consider two types of project management techniques which are describe below:
Gantt chart: This is the tool which is used to determine the number of products which are required to accomplish the needs and wants of
different users to the maximum capacity (Elad and Keren, 2013). This leads to accomplish aims and objective of establishment in a suitable way.
This tools aid to produce various good amount of products in order to satisfy needs ad want of customer in effective way. The employee of
establishment needs to provide different kind of products as per the timeline provided by the customer in proper manner. This assist in
influencing a great amount of customer in proper manner. A range of strategies and policies which are implemented by the organisation in order
to perform various task in proper manner.
Critical path analysis: This technique is considered as the most essential techniques which aid the organisation in order to assign diverse
varieties of resource to do diverse kinds of operation of organisation. By this tool organisation can the determine the future perspective of
business in proper manner. This is reason to occurrence of deviation in business in a systematic manner.
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M2
In order to achieves goals and objectives of organisation and inculcate with different issues challenges the management has to prepare
distinct variety of techniques and plan in order to carry out distinct roles organization in systematic manner. The management also put their
effort in order to rise services and information of worker which prepare them to face the challenges in future (Hickman and Silva, 2018).
D1
A range of strategies by which the manager of establishment allocates different resource to carry out distinct functions of organisation in
effective manner. This leads to attainment of desired aims in best possible manner. These resources also aid to determine the trends which is
ascertain by different competitor present in the marketplace. The management also put their effort to make a position among the various
competitors available in the industry (Moran, Harris and Moran, 2011).
TASK 2
P2
CRM: Customer are the most important assets of organisation because they are the individual on which the success and profit of any
organisation depends (Newbert, 2015). So organisation needs to determine the different type of demand ad desire of customer and fulfil them in
stipulated time period in an appropriate way. For same enterprises needs to communicate the mission and vision to employee working in the
organisation. This aids to perform different types operation and function of organisation ca be performing in stipulate time period. This aids to
accomplish demand and desire of customer in proper manner. There leads to produce different types of products for the customer. These
products are produce according the demand and desire made by the customer in stipulated time period. Company needs to determine needs want
of different customer and fulfil their demand within stipulate time period. This aid to maintain healthy relationship with customer for longer
period of time.
Assessment of customer value: The management of organisation needs to know the needs and want of customer in order to make
sustainable position in the marketplace. The company also needs to implement effective pricing strategies by which it can give product t their
customer at reasonable price. This leads to attract good amount of users in the surroundings. The marketing official has to conduct variety of
market research in order to know the demand and desire of customer in effective manner. It also needs to take different type of corrective
measures in order to perform different types of task in proper manner.
Developing effective channels for customer communications: It is very essential for organisation to know the perception of different
customer and also needs to determine the buying behaviour of different customer in order to increase the sales of different products to them.
Management needs to take feedbacks from the different customer in order to know the demand and desire of various customer in effective
manner. There are different types of channels to establish communication with different types of customer in order to gather different types of
information from the customer. These communication channels are like IVR, mobile, Web self-service and many other services which aids to
accomplish demand and desire of customer in effective manner. This aid to target and segment the different types of customer in proper manner
(Region-Sebest, 2013).
E-mail and digital marketing keeps strong relationship: In order to establish strong relationship with the customer management needs
to determine the different demand and desire of customer in proper manner. The major purpose of making communication with different
customer in order to know demand and desire. And it also aids to create interest to buy different types of products in proper manner. Sending
different types of email which includes the information about price of different types of products in proper manner. This aids to attract large
number of customer in proper manner.
P3
Transactional business operations: Transactional business operates at international level. They have headquarter in home country and
have branches in different parts of country. They are the business organisations who analyse market and then decision for business expansion
take place, this helps managers to target new consumers. Managers of Rowlinson Knitwear make alterations in their product and services.
Rowlinson Knitwear can establish business in different parts of country in order to expand and provide latest trend clothes. There are some
issues in different nations which affects business growth and resistance. Rowlinson Knitwear enters in transactional business in order to expand
business and make good brand in clothing sector. There are difference way to enter in transactional business, some of them are discussed as
under-
Mergers and acquisition- In this options Rowlinson Knitwear select some foreign organisation and merger with it. It can also possible
that domestic association can purchase foreign organisation. It helps in manufacturing and marketing of products.
Joint venture- In joint venture two or more organisation combine hands in order to operates commercially. They have distinct legal
identity and collaboration of resources is also done.
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Exporting- In exporting goods are exported to other country. In this Rowlinson Knitwear can operate business from home country but
sales can be done in foreign country.
Benefits of transnational business development:
Broader market base: When Rowlinson Knitwear operates in different parts of country, so there is wider customer range. It is
responsibility of managers to analyse demand and then clothes has to be marketed. This ultimately helps in increment of sales and profits of
association.
Brand recognition: When company operates in different parts, then consumer are aware of brand. Manager must maintain quality of
products, so consumers gets satisfied. Managers must market brand through different media such as hoardings, social applications, etc.
Drawbacks of transnational business development:
Risk of failure: This is major drawback as there are possibilities of failure of brand in new market. In clothing sector, there is much
competition, so consumers may not rely on new brand. This makes business failure.
Expensive: Transaction business operations is expensive approach because there is requirement of approval of government, charges of
entry in new country, registration, etc. So this is costly for Rowlinson Knitwear.
M3
there are four elements which are related to customer relationship management process which are describe below:
Understanding the market and customer: This is the stage which is necessary for company in order to know the demand and desire of
different customer.
Develop the offer: This is the second stage of organisation which offers to different types of new and advance products in order to attain
large number of customer in proper manner.
Acquire audience: This is the duty of the manager in organisation in order to search of new customer to increase the level of profit of
company.
Retain the customer: this is the last stage company in order to gain loyalty point and implement various reward system for retaining
large number of customer for longer timer period.
M4
Management implement different types of types of operation and functions in limited time period. It is divided into four equal sections.
Knowledge opportunity: it is important section of this section which is consider the different chance to achieve goals and objectives of
organisation in proper manner.
Relationship commitment decision: it is most important part for company in order to products and service in order to products and
services which aid to explore various functions and operation of company in proper manner.
Network Position: this is related to make proper positioning of different products by means of different medium of advertisement and
promotion.
Learning curve: Company ascertain various programme to introduce different types of products in proper manner.
D2
Company needs to ascertain 4C's of CRM process which are mentioned below:
Correlate: it is concerned with the chain of interaction and transaction to build effective relationship.
Combine: it is concerned with the build interaction between consumer and user (Sterling and Pang, 2013).
Cognize: It aids to gather different types of data and information about different business products.
Connect: it aids to connect with the different channels, customers, suppliers and many others.
TASK 3
P4
There are various types of option which are available to organisation by which company can allocate different funds in order to make
strong position in the marketplace. These source which are consists of Equity finance, bank loans, leasing and hire purchasing and many other.
These are mentioned below:
Equity finance. An organisation implements different types of strategies in order to allocate funds to perform different operation of
business in proper manner. This aids to ascertain effective decision in order to expand and grow of business in proper manner.
Bank loan: it is other source by which organisation can raise the funds for long term as well as short term. Before taking loan manager
needs to determine rate of interest charged by bank.
Leasing and hiring purchase: This source is concerned with the raising of funds by giving some assets to others and arrange funds on monthly
basis.
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Balance Sheet, P&L and cash flow statement of the Rowlinson Knitwear:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
Cash Flow
budget
Particular
s Jan Feb Mar Apr May June July August September October November December
Cash
inflows
Investmen
t 8000
Credit
sales 2000 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Total
inflows
1000
0 3000 3000 4500 1500 3500 4200 1000 2000 800 1200 1500
Cash
outflows
Fixed :
Equipmen
t’s 2000 2500 1500 2000 1200 1500 800 200 300 100
600
300
Variable :
Direct
material 300 300 200 300 150 500 300 400 500 100 100 400
Total
outflows 2300 2800 1700 2300 1350 2000 1100 600 800 200 700 700
Net cash
flow 7700 200 1300 2200 150 1500 3100 400 1200 600 500 800
4

Opening
balance 0 7700 7900 9200 11400 11500 13000 16100 16500 17700 18300 18800
closing
balance 7700 7900 9200 11400 11550 13000
1610
0 16500 17700 18300 18800 19600
P5
This tools is used to determine about the total sales which needs on the monthly basis and yearly basis in order to fulfil demand and
desire of different customer present in the marketplace (Strieder, Bnc Ventures, 2012). It is determined as the most appropriate tools which are
used by various company which aid to know the number of product needed to fulfil the necessity of different customer. It is also ascertaining
various enterprises in order to know the level of profitability. It also helps to prepare different kind of strategies and policies which are used are
used to minimise the cost involve in production which aids to maximise the level of profit of company.
Organisation different types of situations and condition like production of different products as per demand and desire of customer
forecasting of sales and there are many other condition and situation which is faced by company. There are different types of issues and
problems which are arises during finding the different types of condition of organisation. it is important to perform break even analysis in order
to find different types of cost. Taking example: Fixed cost is 15000 and variable cost is 5 rupees per unit selling price selling price is 7 per unit
BEP for this is:
Break -even – point: Fixed costs/ construction margin per unit of products = 15000/(7-5) = 7500as.
P6
Financial statement: it is most important part of enterprises which aid to analyses the whole information’s which are concerned with the
cash flow, balance sheet, and profit and loss account there are also many information by which information about the distribution of funds which
aid to analyses various values of finance account. There are different factors of account are given below:
Balance sheet: this statement is the starting phase of company which determine the various kind of assets and liabilities which are
describe in the account. This is the most essential factor of account of company. Balance sheet give information about the different types of
operations which are involve in order to find the different types of cost in proper manner. It also gives information about the different assets
which are ascertain to enhance the performance of enterprises.
P&L account: It is a factor which is concerned on to find the financial situation of company. It aids to find the profit and loss of the
organisation on different basis like yearly basis and monthly basis. It helps to enhance the performance level of company in proper manner.
Cash flow statement: it is very essential for company determine different various capital which are involve to perform variety of
function of company in appropriate way. In order to perform variety of task and projects in most productive way. It aids to control the different
type of cost that is involve in manufacturing different types of products. Cash flow also aid to reduce the unwanted expenses of business in
proper manner. It also aids to find the actual condition of company which aids to distribution of financial assets.
M5: Analytical and Quantitative tools for offering effective retard break-even and cash flow
Here are different kind of Numerical methods that are implemented by management to find the appropriate values of credit flowing and
break even analyses in proper way. This method aid to accomplish various operation of an enterprise in prominent way. It helps to eliminate
various type of obstruction that reduce the performance of distinctive functions in suitable mode. As per this element, supports to analyses the
performance of organization in efficient style. Additionally, helps to accomplish various function of an association in better way.
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D3: Critical evaluation of key financial statement
Financial statement is concerned about to calculate different distribution of funds and cash flow and profit and loss account. These are to
factors that helps in accomplishing several ways of functions enterprise in better ways. The financial statement is concerned with the
determining position on the yearly basis and quarterly basis. It also aids to evaluate various cost involve which are in performing different
function of organisation in effective manner.
TASK 4
P7 Key regularize and government that have express on societal endeavour
In order to increase the productivity of company the manager of Rowlinson Knitwear determine the various factors which aids to enhance
performance of different operations which are involve to control various ways of operation in perfect way. There are numerous rules and
regulations that deals impact on the different functions of organisation in proper manner. Few norms and regulations are mentioned further:
Tax and Employment (1976): As per this enactment it is important for follow the tax policies which is purpose by government of UK
( (Beaumont, WHITAKER and PEDERSEN, 2013). There are various types of norms which influence on the performance of several operation
of an association in prominent way. If tax is not given by company in stipulated time period, then government ban on organisation and impose
heavy economic penalty.
Data Protection act (1998): This rules is related to working hour of organisation in proper manner. This rule gives information about to
enhance the performance of employee who are performing work under the senior employee. So it is very important for the organisation to
evaluate different condition and situation about the environment of organisation and it also aids to resolve the different barriers and obstacles
that are raised while accomplishing different ways of operations of business entity in suitable ways.
Health and safety act: This act state that employer remain responsible to create and offer healthy working condition to employees. It is
very necessary that proper training should be offer to them so they use risky equipment to perform their job roles as this decrease the chances of
accidents at workplace and at the same time help in maintain positive environment at workplace.
Record keeping (2006): this legislation is concerned on to fund various type of collection and information in order to develop company
in efficient way. It aids to determine the eve of net income of an enterprise in suitable method. This process act as indispensable role in order to
determine the performance of company in effective manner.
Labour's compensation:- Labour compensation is one of the biggest law which talks about payment of compensation to employees.
According to this laws managers must give fair remunerations, there must not difference in payment on the basis of caste, colour, creed., etc.
Same compensation must be paid at similar designation to men, women.
Employment law:- This act frames policies for maintaining fair relations among employer and employees. As per this act there must be
good environment at work place which helps to keep employees satisfied. Managers of Rowlinson Knitwear must abide by all laws related to
employee, their safety, compensation, etc.
M6 Showing of important law-making
As per the different act it’s very important for company to analyses the different types of rules and legislation which are explains in this
act needs to follow by company in proper manner. It also aid to monitor various issues and problems which are concerned with fitness of worker
working in the organisation give protection about the personal information and various issues which are related to taxation and job opportunity.
D4 Key regulations affected on small business
Health of employee plays a vital role to accomplish various types of activities of company in better way. So company needs to consider
health of employee Woking in the organisation. This leads to hold out impressive in accomplishing contrastive types of activeness of
organisation in a systematic manner. If absentees increase, then it leads to reduce performance of institution. It also affects the productivity of
different types of produce by the organisation. So it is important for the take initiative steps in order to maintain the health of employee working
in organisation.
CONCLUSION
From the above mentioned document it has been analysed that governance and operation plays an important role in order to perform in
Small business enterprise. These organisations need to maintain healthy relationship with customer in order to ascertain end and targets of an
association.
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