Managing and Running a Small Business: Resource Allocation, CRM, Transnational Operations, and Financial Reports

This report covers resource allocation, customer relationship management, transnational operations, and financial reports for small businesses. It includes a case study of CafePod Coffee Company, discussing their strategies and challenges. The report also covers the benefits of cash flow statements, break-even analysis, and key financial reports for small businesses.

Managing and
Running a Small
Business

Table of Contents
Introduction......................................................................................................................................3
ACTIVITY 1 (Brochure).................................................................................................................5
A critically evaluate the application of enough resource to show the link between achievement
and resource of business objectives.............................................................................................5
The crucial techniques and tools for planning to allocate the resource in the company.............5
The benefits of organisational planning and allocating the available resources to meet the
company's goals...........................................................................................................................6
The explanation of the main consideration that address the planning as well as allocating
resource to meet the small company's goals................................................................................6
The discussion of many process of customer relationship management for small company and
its challenges................................................................................................................................7
The evaluation of factor of the customer relationship management process in order to meet the
organisational objectives.............................................................................................................7
The discussion about the development of transnational operation using the stage model of
internationalisation and analysis the challenges and benefits......................................................7
. The different process of CRM for small organisation...............................................................8
Discussion about how a small enterprise can enhance the transnationally along with its
drawback and importance............................................................................................................8
.........................................................................................................................................................9
ACTIVITY 2...................................................................................................................................9
Benefits of cash flow statements for small businesses................................................................9
Benefits of break-even analysis for company's business...........................................................11
Key financial report and their functional in business efficiency...............................................12
Key regulations and legislation that have implications on small businesses.............................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

Introduction
Small businesses are those businesses which have less number of employees and whose
size is small as compared to regular business. Their annual revenue is also less than other
businesses. Running and managing a small business is considered as tough task because there are
many factors which impacted upon these small businesses and their functioning(Marom and
Lussier, 2018). These factors are competitors, raising funds, political risk, environmental risk
and many more. CafePod Coffee Company is headquartered in London, UK. Their annual
revenue is $6M and they have 85 employees. They deal in selling juices, soft drinks and non-
alcoholic beverages. It is founded in 2011 by Peter Grainger. The following report cover
planning and allocation of resources in CafePod Coffee Company, Customer Relationship
Management process, different ways of transformation of a small business into international
business, Key financial statements and their importance and at the end this report cover legal
laws and legislation related to small business.

ACTIVITY 1 (Brochure)
A critically evaluate the application of enough resource to show the link between achievement and resource of
business objectives
The resource is necessary to attain the organisational objectives as it includes capital, equipment’s,
working space and employees. The resource can be divided into several factors such as time, land, energy,
finance, equipment’s expertise, management, people and labours. In context to Cafe Pod, the given company
managers have more focused on its people such as employees and consumer. The employees design an
innovative products and promote the product in the market. on the other hand, the consumers taste the particular
meal and beverages and promotethe product by mouth to friends and family members. These people help to
build the brand image and enhance the existing market so that organisation achieve their objectives.
The crucial techniques and tools for planning to allocate the resource in the company
The resource planning is an activity in which allocating work to non-human resource and human in order
to meet the organisational growth. (Gupta, 2022I) The main of this techniques and tools to enhance the
efficiency of available resources. In context to Cafe Pod, the receptive company’smangers useplanning and
visibility to allocate the resource as they use bar chat to understand the useful resource and availability of
resources, project and tasks. This techniquehelps to given organisation to enhance the operational work and
provide the delicious taste to local visitors.
Managing and Running a Small Business

The benefits of organisational planning and allocating the available resources to meet the company's goals
The effective allocating the resources is a key of organisational goal as it empowers the employees,
material, land and other resource to optimal use of available resource. In relation to cafe pod, the respective
company has full utilisation of resource to reduce the cost of different beverage and meals so that provide the
pleasing taste to wide range of consumers. (vanovich, 2020) The effective utilisation of resource help to
improve the staffs and consumer engagements towards Cafe pod as it more focus on satisfying them. The
Cafe pod have aim at deliver the different coffees and teas to them consumes in less time with help of
effective planning of allocation of resources
The explanation of the main consideration that address the planning as well as allocating resource to meet
the small company's goals
The main consideration of allocating resource are resource levelling and strategic planning. The
strategic planning resource create a plan for exploit the available resources and eliminate the wasteful
activity so that it enhances the operational perform of the company. Honig, 2020)( The company must
identify the consumer so that they know that which products are produce, how they develop and who get
them In context to Cafe pod, In initial, the respective company must identify the available resource such as
employees, consumers, office location and raw material. These resource scope help to create a effective
planning and use best utilisation of resources. The important consideration of allocating the resource is track
the time after giving the specify task to their employees so that enhance time management. The given
company use their tool and techniques such as software and application for optimum utilisation of resource
and enhance the operational activity. The internal politics modify the according to available resources as
sometime may difficult to acquire appropriate resource so that cafe pod always analysis the new resource for
company business. The cafe pod allocates the resource to employees according to their capabilities and they
not over allocate the resource so that it helps to improve the quality of work. The cafe pod acquires the the
resource from different ways a because they not rely on one source. The project manager of cafe pod has
divided the whole tasks into small task that is important to understand whole task as it allocate the smaller
task to different individual according to their capabilities. The cafe pod always tracks the project progress as
the manager have keep eyes on time tracking and work pressure of employees so that employees complete
the task smoothly.

The discussion of many process of customer relationship management for small company and its challenges
The CRM is an advanced technology for handling the company's relation and interaction with consumer
and valuable consumer. The main aim of CRM is improving the business relationship and help to organisation to
connect to consumers, improving probability and streamline process. It strategy tool that important for
productivity, sales management and contact management so that company more focus on organisational
relationship.
Recommendation
The Cafe pod havefaced difficulty such as time and cost in implementing the CRM so this difficulty can
be mitigated by selecting off the shelf solution from respectable provider rather than create own CRM. (John,
and Gulati, 2018.)The cafe pod should make sure of incentivize effective user for using CRM system and
employees understand importance of uses of CRM as it mitigates the difficulty for convincing the whole team for
CRM
The evaluation of factor of the customer relationship management process in order to meet the organisational
objectives
There are four elements of customer relationship management that will mention below.
Satisfaction: The customer’s satisfaction plays a crucial role in customer relationship management as it acts as a
buyer guideline for the organisation and consumers. (Marques and Eberlein, 2021) If the customers is no
satisfied with product purchasing then they more to another company.
Loyalty: The loyalty or trust is an important for repeat referral and sale as the loyal customers of cafe pod are
satisfied with recommendation of product to other and their purchase.
Probability: The company measure the profit and loss during its operational time as it can be measure by total
sales minus total expenditure.
Customer Retention: The most difficulty thing for organisation to maintain the retention of the customers with
the help of marketing, promotion and research etc.
The discussion about the development of transnational operation using the stage model of internationalisation
and analysis the challenges and benefits
The stage theory conceives the internationalisation process by using five stage. Start with domestic
market establishments in which test product in domestic product and fine tune performance before managing the
dynamic international trade. Export research and planningstage in which company target the similar countries
that same language, legal, economic culture and financial structure. Initial export sales stage in which exporter
ought to use shipments to make familiar with exporting to acquire the targeted consumers. ( Li, Zhu and Liang,
2018.)The expansion of international sale step accomplished by the heighten market research and more bellicose

. The different process of CRM for small organisation
The process of CRM is a strategy in which provides functionalities and data to employees to strategy and it
keep interaction with the all consumer. There are five steps that will mention below
Generate Brand Awarenessin this initial step, The Cafe pod promote the aware of different product
such as coffees and teas with help of different marketing channels. They target aim at targeted audience that
based on demographic, preference, interest and purchasing behaviours.
Acquire Leads: In this second step, the cafe pod generate leads of website visitors who fill the online
campaign form. The marketing and sales team together with targeted leads with help of available
communication channels.
Covert leads into customers: In this third step, the respective company convert the lead into paying
consumer through combination of marketing automation and content marketing.
Nurture leads: The cafe pod nurture crucial leads as it builds the loyalty inconsumers who purchase
the product in repeated time. The given company use email marketing in which share important content that
based on their taste
Provide Quality Customer support: The company's growth directly depends on consumer's
satisfaction as they use consumer support service to acquire the honest feedback from their consumers about
product quality and experience.
Drive up sells & cross-sells: The Cafe pod establish the consumer’s database so that they shift from
other product of cafe pod as it upgradesthe usual purchase.
Discussion about how a small enterprise can enhance the transnationally along with its drawback and
importance
The transnational strategy refers to balancing tendency of exploring the counties with local preference
so that expand the market share. It is model in which company invest in foreign assets that make organisation
powerful in every location. The small organisation like Cafe pod, they can easily create the network in other
countries as they create the menu for each nation following local customers, national food desire and regional.
Benefits: The company has advantage of transnational as they decentralize the whole business in across the
global. The company use cheap raw material and lobar from the nation where they operate the business
therefore company able to save the operational cost.
Drawback: The main disadvantage of transnational is failed to understand the whole market where the
operate the business. The company has more risk of political and legal factor it may change that affect the
company's business.

ACTIVITY 2
Benefits of cash flow statements for small businesses
It is the financial report of the organisation which examine the outflow and inflow the
organisation's cash. (Bednarczyk, 2019.) This report is necessary for measuring where
organisation is investing its expenditure as well as what are the gain source of the organisation.
In relation to CafePod company, their other financial staffs and owner are liable for managing
the cash flow statements for their organisation to examine the daily basis money. This is one of
REFERENCES
Bednarczyk, A., 2019. A project introducing innovations in a coffee industry company (Doctoral
dissertation, InstytutTechnikWytwarzania).
Dogru, T., Mody, M. and Suess, C., 2019. Adding evidence to the debate: Quantifying Airbnb's
disruptive impact on ten key hotel markets. Tourism Management, 72, pp.27-38.

the essential financial statements that are help to make decisions and reducing the wastage of
capital on unproductive things
The above reported cash flow statements mentioned which the organisation is acquire the good
amount of profits
Hence, the above stated cash flow statements mentioned that organisation is gaining profit.

Benefits of break-even analysis for company's business
When a organisation gain no profit and face not loss then it is known break-even point of
the organisation. In this situation, the organisation acquires the much profit which will use for
pay the operational cost and other expenditure of the manufacturing the goods and service.
Therefore, break even analysis important for the organisation to know point of manufacturing
where company will not experience any loss and profit. It is mandatory for organisation to
implement the break-even analysis to their company's business. The right time to apply this
analysis is at time of company's business planning to address the whether the view is feasible or
not. With referenced to CafePod coffee company, they measure their break-even point to
examine at production and staff's activities as they require to make up their official cost and fixed
cost. It can be estimated as below:
BEP = Fixed cost/ selling price per unit – variable cost per unit
Calculation of BEP=
Fixed cost= 12000
Selling price per unit= 10
Variable cost per unit= 4
BEP= 12000/10-4
BEP= 12000/6
= 3000

Application of BEP
 Break-even analysis is an important to measure what entire production with a
organisational business high gain enough amount of probability and what functions are
unproductive that necessary to reduce from operation.
 BEP is an essential for ensuring the all prices of the commodities that is manufacture as
well as sell by the organisation be fixed that asses to get a good amount of sales and
acquire the effective view for profit generation.

The above information is given that it is important for evaluating the sale and total cost
which intersect the each other along with point of interaction of this dual elements is known
break-even point. This point is shown that where organisation neither face loss and earn profit.
Key financial report and their functional in business efficiency
Finical report are those information and data that is implemented the organisation to
display their condition in relation to finance. There are many benefits in context to CafePod
coffee company that will mention below.
Balance Sheet: This is a financial report that involves the amount liabilities and assets of the
organisation and the amount of equity share. It helps to analyse the actual financial conditions of
the organisation as it represent the business position and liquidity position. It updates the
financial progress of the organisation.

Profit and loss: The profit and loss demonstrate the financial statements in which covers total
expenditure and income of the organisation. It is necessary for organisation to gain the more than
its expenditure and it identify such activities that are productive and unproductive. Organisation
analysis the many sources of expenditures and income in given time periods. (Aboelmaged,
2018). The most of the organisation use this statements in order to make effective decision so
that it is mandatory for every organisation.
Particulars Amount
Sales £15,000
Cost of Goods Sold £11,500
GROSS PROFIT £3,500
Expenses
- Salary £250
- Rent £500
OPERATING PROFIT £2,750
Depreciation £1,200
PROFIT BEFORE TAX £1,550

Taxes - 20% £310
NET PROFIT £1,240
RETAINED
EARNINGS £1,000
DIVIDENDS £240
Key regulations and legislation that have implications on small businesses
In context to small businesses, the legislations are basically the giving or making the laws
in a specific manner. When it comes to Cafe Pod, there are various key regulations and
legislation that have implications on companies operation. When it comes to government, it is
not obligated by the law to notify you about regulation violations. In relation to the small
business owner, it is very important to have deep understanding and knowledge about these
regulations and also to keep ensure that the business is not violating them. Mentioned below are
few of the regulations in relation to small business:
Tax Code Business Regulations: In context to Coffee Pod, one of the biggest regulations that
the small business owner need to keep on the radar. It is very important for the organisations to
pay a federal tax and also it is very crucial for the companies to pay a state tax (Ivanovich, 2020).
Labour Laws and Employment: In context to business laws and labor laws and regulations to
employment, it is very important and crucial for the small businesses to follow. According to the
Fair Labor Standards Act, it basically defines how the business owners must treat employees
through outlining the policies in relation to the overtime and minimum wages. When it comes to
labor laws, these plays a very important role as it ensures that employees have a safe working
environment which is free of hazards and danger.
Antitrust regulations: In context to small business owner, it is very important to keep the
playing field even for all the different competitors through controlling the methods which is very
important for the business owners to communicate with each other. (Mochkabadi and Volkmann,
2020) (When it comes to small business, these antitrust small business regulations prevents the
small business owners from fix in g prices with the competitors.

Advertising: In context to small business, the false advertising regulations apply to the small
business in the same manner like they are applied to the huge corporations. In digital world, the
advertising basically refers to more than just the billboards or television commercial (Dogru,
Mody and Suess, 2019).
Environmental regulations: In reference to environmental regulations, it can affect the small
business in different methods and totally depending upon the business model. When it comes to
environmental regulations in relation to the language and marketing applied to the suppliers or
retailers.
State Licensing: In context to organisations, some states requires small business owners in the
verticals or specific industries to obtain licenses. It is basically common for the companies that
usually sell high regulated substances like alcohol (Mochkabadi and Volkmann, 2020).
In context to organisations, the legislation is basically considered to be a set of laws put
in place by the government for the purpose to protect the consumers, business and employees. In
reference to companies, it is very important for the organisations to operate within these laws for
the purpose to ensure safe and fair treatment of any part which is involved in the organisation. In
small business organisation, different types of legislation that organisations must follow
involving intellectual property laws, employment laws and consumer laws. When it comes to
employment laws, it includes keeping the employees secure and also ensuring that employers are
fair. In relation to these laws and regulations, it generally affects how the organisation structure
their business where the organisations decide to locate how they classify their employees and
various other related things. In reference to Cafe Pod, it is very important to ensure that the
leaders and the managers of the company strictly follow these rules and regulations and carrying
out these operations keeping in mind the various different legal laws and regulations which helps
in guiding the company and also protecting it for the safety and betterment of the organisations.
These laws and regulations helps in guiding the employees regarding what is right and what is
wrong and also helps in smooth operations of the business and also guiding and protecting
themselves from any kind of danger or hazards (Aboelmaged, 2018). In addition to that, for

every small business organisation, it is very important to strictly follow these rules for the
purpose to improve their brand image and also running the operations in the company.
CONCLUSION
From the above information, It is concluded that small enterprise are examined by their serving
and number of staffs. The allocation of available is essential for the small organisation to manage
their business function along with it is mandatory to maintain the healthy relationship with
customers. (Talleraas, 2019.) The organisational financial statements is play a crucial role in
making effective decision and for expanding the business. Therefore, the legal rules and
regulation is important for organisation to maintain the good reputation.

REFERENCES
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