L/508/0566 Unit 29: The Toolkit for Small Business Management Report

This report provides a comprehensive analysis of a small business management toolkit, focusing on key aspects such as resource planning, customer relationship management (CRM), and financial analysis. The report begins with an executive summary and an introduction that highlights the im...Read More

The toolkit for small
business management

Contents
EXECUTIVE SUMMARY............................................................................................ 3
INTRODUCTION....................................................................................................... 4
ACTIVITY 1............................................................................................................. 4
Considerations on small business while planning resources.................................................4
Tools and techniques to plan and allocate resources..........................................................5
Importance of planning and allocating resources..............................................................6
Different processes of customer relationship management...................................................6
Advantages and disadvantages of transnational approach....................................................7
Apply and evaluate the elements of customer relationship management..................................8
ACTIVTY 2.............................................................................................................. 9
Analysis of Cash flow estimate by presenting fixed and variable costs....................................9
How break-even analysis can be applied......................................................................11
Financial statements for an organization.......................................................................12
Key legislation and regulations which have implications on small business enterprises.............16
CONCLUSION........................................................................................................ 17
References.............................................................................................................. 18

EXECUTIVE SUMMARY
The following research is on the small business enterprise established on certain strategies
and constructs a business plan for achieving goals and objectives. The small business
determines various factors that are essential for organization consideration in terms of human
resources, finance and so on. Small business enterprises must implement the practice of
transnational approach since it turn out to be relaxed for corporate organization to take
definite number of variations in directive to shape up consumer satisfaction. Here, are
numerous lawmaking which generate an suggestion on small medium enterprises such as in
terms of consumer law, competition law, health and safety law and so on.

INTRODUCTION
The SME is an important sector considered in the economy. It makes various
contribution in employment generation, exports innovation and in economy growth. It
describes the support of socio-economic development in country. Small and medium-term
organizations are measured as non- subsidiary corporations having numerous employees and
the turnover is low in contrast with other business organization. It is primarily described as
process of coordination of all stages in terms of handling workers, corporate finances,
suppliers or execution daily tasks and activities. In the toolkit of the small business
management the entire business information together is collected with the many tools and
equipment, use of greatest technology in aim to offer definite reimbursements to small
businesses (Arslanian and et.al., 2019). According to the present situation the client range of
supermarket is declining day-by-day and owing to this it makes an undesirable impact on the
overall performance in relative to rival business environment. The report is based on the two
activities where one is in the form of brochure and other is in form of informative report.
The chosen organization is JS supermarket established in 2014 as a self-governing
consulting firm in London. The company was founded by Ramachandran Jalatheepan. It is
executed as a small medium firm dealing in foods, groceries for earning better profits.
ACTIVITY 1
Considerations on small business while planning resources
In place of each the present condition the government of United Kingdom is serving
individuals on constant basis in relative with undertaking business or introductory a small
company so that they can make income. The foremost motive behind this is a prohibiting of
United Kingdom from European Union which eventually primes to development in economic
circumstances internationally. With respect to this it is important for small-medium
companies to control all technological necessities and the purpose for this is that corporate
atmosphere is continually fluctuating in agreement with the characteristic of technology
(Calcagno and et.al., 2020). It would benefit all the enterprises to deliver innovative and well-
organized products to all the clients rendering to convinced desires and demands. It is
essential for JS supermarket likewise to advance an effective business plan so that all goals
and purposes can be accomplished. There are several factors which can affect and it is
additional been described as below: -

Human resources: - It is one of the critical features which are desirable in corporate
organization to implement a development plan in an appropriate manner crosswise by
observing at the competitive business market. As per the present scenario, JS supermarket is
correspondingly enhancing an effective plan which would support them in enlightening the
overall performance. It is significant for business to capitalize in their human resource
department which would finally principal to kind the personnel additional efficient. It is
important for the enterprise to recruit and select the right person for job as it would enhances
their overall performance. Its objective is the maintenance of better human relations in the
organization by concerning people at work (Catto 2017).
Goal, vision and target: - It is vital for business to set overall goals, target and vision so that
all aims and purposes can be accomplished within the restricted period of time. With respects
to this the core intention of association is to preserve the level of purchaser satisfaction which
would support the enterprise in getting well-organized revenues. The business established
numerous moral contemplations also which will help in fulfilling all the targets within the
time limit. The vision provides the clear image for the future and the goals are set to
accomplish specific target towards the vision (Doyle 2018).
Critical path analysis: - By captivating this instrument, all commercial organization’s
objective towards remaining at their right path in framework with all necessities by taking
budget into attention. This is castoff by all executives of the supermarket so that they can
attain their allocated activities within the time frame only. CPM describes the project model
that contains the list of job and period of finishing those tasks. It aids in scheming the longest
path in relation of duration to the accomplished-on time.
Tools and techniques to plan and allocate resources
There are numerous tools and techniques that can be castoff in command to plan and
apportion overall resources. It is critical for business to apportion convinced resources so that
appropriate business plan can be implemented. In regards to JS supermarket they also
measured many features methods and techniques so that suitable business plan can be
complete and all resources can be assigned in an efficient and effective way. One of them
was the convention of Gantt chart. It is definite as a chart which is a horizontal bar diagram
that is recognized and the aim behind it is to use the chart as a production control technique
by all operational managers. This chart was executed by an American engineer Henry Gantt
and is castoff practically in every project plan. It is a applicable tool because it benefits all

operative managers an design in graphical format in framework with overall project
circumstances. It is a common method used in the project management which displays the
activities in contradiction of time. On vertical axis the activities are shown and horizontal
axis the time intervals are shown. The Gantt chart is used for allocating the resources,
establishes initial schedule, makes project adjustments, control and monitor the progress and
defining the key milestones (Eid and et.al., 2018).
Importance of planning and allocating resources
In a business enterprise the utmost significant thing is planning and allocating all
resources in directive to attain all goals and objectives. While doing this proper planning and
allocation must be completed. It contains many fundamentals like working out accurately
which resources would be required in business so that all targets can be satisfied. It can be in
the procedure of staff members, tools and equipment as well as financial resources also. It is
vital because its assistances in managing all tasks and activities that can enable the
accomplishment of goals over time. It also delivers an outline for the continuous review of all
operations that happens in organization. The budgets are prepared for the activities and
analysis the risk arising from uncertainty. The resource permits to plan and formulate for the
project’s execution or attaining goals.
Different processes of customer relationship management
Customer relationship management is important in a business enterprise which goals
to attain development and improve the level of expansion. It is measured as a tactic of
organization that benefits in enhancing overall communication strategies with all current as
well as possible customers. The statement primarily emphases on diverse strategies which are
made by JS supermarket in direction to sustain effectiveness and eventually reach growth. It
was remained determined that JS supermarket attentions on two kind of methods and that are
corporate social responsibility and customer relationship management. CRM is measured as a
technique of sympathetic all wants of customers and examining it in relative with attaining all
goals and objectives. In relations of corporate social responsibility, it is definite as a process
of operative decision making in which all managers of company would contemplate moral
needs of staff members. In framework with company, it is been explained as below: -
Customer portfolio analysis: - It mentions to an analytical tool which was castoff by JS
supermarket in directive to appraise all ideals and behaviours of consumers. It is measured as
an identical beneficial technique and also aids directors to increase knowledge in framework

with purchasing power. Through this method it converts very easy for all proprietors of
supermarket to style certain judgments and at the same point of time permits an unchanging
market position and appeals maximum number of clients (Evans and et.al., 2017).
Customer intimacy: - It is too well-thought-out as a significant method of customer
relationship management through which all directors and employees of the enterprise regulate
the preservation of affiliation construction with all customers. Through this process all staff
members and personnel can examine the overall performance with their consumers and at the
equal point of time their wants and requirements also. JS supermarket constantly supposed in
enhancing effective relationships with customers and also pleasing response on constant
basis. Through this process its stimuluses the level of trust and loyalty.
Advantages and disadvantages of transnational approach
Transnational operations are described as a process which comprises growth of a
business concern in an international world through vigorous relationship conservation in
relative with headquarters as well as global operations. It aids in assessing and measuring
current position of a business enterprise. In kin with JS supermarket, it has been resolute that
it supports all managers in taking critical decisions in rapports of the performance of all the
products. It is a supportive procedure in measuring current market state of a business and also
the sales performance of small-scale enterprises. JS supermarket also castoff transnational
process in directive to preserve operative coordination and also documentation of
opportunities which are around in entire international market. It helps executives in aiming
audiences as per their necessities and at the same point of period build up the quality of
products and services. There are numerous strengths and weakness linked with it which is has
been explained further as below: -
Benefits of transnational approach: -
 With the help of this approach, it turns out to be easy for JS supermarket in delivery
about certain kind of variations that are obligatory in total production process. It too
purposes towards appealing maximum number of customers which are current in
foreign market. It has also remained estimated that transnational operations play a
self-same critical role in providing precise generous of opportunities to all the
managers of a small business enterprise. Besides this, it also works towards promoting
the supermarket at global level (Kennedy, D.S., 2018).

 Through this approach company can effortlessly offer their products and services at
intercontinental level. It would support them in construction up the sales performance
and at the identical point of time productivity of JS supermarket at the international
level.
Weaknesses of transnational approach: -
 Though transnational approach improves the development level and likewise enlarges
JS supermarket but the progress and development would also necessitate sure
strategies that would aid the commercial initiative in increasing total business
operations. It would necessitate huge number of financial resources for setting up a
deliberate process that would prime to enrichment of overall operations. As JS
supermarket is a small medium enterprise, they may look the situation of deficiency
of funds which are desired in the enlargement procedure.
 Transnational approach also needs managers of supermarket to track all set standards
in terms of realizing goals and objectives. It also comprises societal policies of
country in which they are accomplishment their operations. By looking at this it is not
virtually possible due to the general time which is been tangled in the procedure and it
can also be imaginable that the quantity of funds which would be obligatory will be
high (Kreps 2018).
Apply and evaluate the elements of customer relationship management
There are diverse fundamentals of customer relation management which benefits a
business enterprise in attaining goals and objectives. One of them is people management. It
denotes to the operative usage of people at the right period of time and at right place. It is
very significant for work roles which are allotted to employee must be in framework with
dissimilar skills and talents. At the preliminary phase an effective people policy is tracked by
overall work force analysis. With the help of this corporate goals would also be reached. The
another is customer service element of CRM which focuses on customer data, gathering data
regarding the purchase patterns. It also delivers information to every department that requires
to gain the knowledge about the customer.

ACTIVTY 2
Analysis of Cash flow estimate by presenting fixed and variable costs
Conferring to present situation, cash flow forecast is well-defined as an operative
planning policy to helps the JS supermarket managers in examine of the whole income. The
forecasting also provides support in control of future expenses of business enterprises.
Different types of sources are used to calculate cash flow such are- (Bhimani 2017).
 Equity finance: - It is described as an activity where individual and whole enterprise
borrows the funds from the investor. There is a need to sign an agreement between the
parties for sharing profits and losses in relative to the money which is offered. The
capital is raised by the sale of shares having a short-term need. In context of JS
supermarket this component is not applied as it is a small-scale enterprise which does not
require to borrow funds from shareholder instead it takes the support from family of
friends.
 Bank loan: - It denotes to the part of borrowing and receiving reserves from business
enterprises. The organization requires bank loan for the purpose of raising funds for a
certain period of time for ensuring smooth functioning of the business. It is considered as
effective way as banks takes interest on the funds offered by them.
 Measure moving average: - It is used to calculate in identification of the trend path of
stock. A series of averages is created of different subsets from the full data set. In
accordance with this technique, it benefits in examining and measuring current position of
JS supermarket and also contains the assembly of complete information which eventually
aids in setting up definite targets (Kuruppuge and et.al., 2020).
 Time series data: - It is referred as an instrument which is castoff by all professional
executives of supermarket in relation of setting up manufacture as well as operational
schedules. It too benefits in defining the time obligatory by personnel to complete a
production process. It is a categorization of discrete-time information.
Balance sheet: -

How break-even analysis can be applied
Break-even analysis involves calculating and investigating the margin of safety for an
enterprise on the basis of revenue collected and related costs. The components of the break-
even analysis include fixed costs is also known as overhead cost. It involves interest, taxes.
Salary, rent depreciation cost, labor and energy cost. The costs are fixed regardless of
production. The variable cost defines to cost that either rise or decline in straight relative to
the manufacture capacity. It contains price of raw material, packaging cost, fuel and other
costs that are unswervingly connected to the production (Leung and et.al., 2019).
It is measured to be an effective technique in relative with revenues, costs,
expenditures at diverse levels in relation to generate output. It is frequently important in
evaluating the connection of several profit founded terms that are used by JS supermarket.
The process of break-even analysis similarly benefits in consideration and defining that at
what phase the cost of production and income generation would be equivalent. It is
demarcated as a finest method that can be practical in two diverse circumstances which are
income relationship and also non-linear cost (Lourenço 2018). This Procedure is also termed
as a revenue contribution analysis. In context to JS supermarket, they make use of algebraic
method for measuring dissimilar conditions and also benefits in the development of critical
decision making. It has been further explained as below: -

TFC = Total fixed cost
AVC = Average variable cost
P = Price
BEP = TFC\ (P-AVC)
In relative with appropriate valuation it can be understood by taking an example: -
TFC=40000
AVC=9
P=18
Finally, Break-even analysis would be: -
=40000\ (18-9)
= 4444.45
Financial statements for an organization
Balance sheet 2020
All numbers in thousands
Period ending 8778500
Current assets 725400
Cash and cash equivalents 7100
Net receivables 531300
Other current assets 43069

Total current assets 4188300
Property plant and equipment 34200
Goodwill 155800
Intangible assets 133800
Other assets 1015000
Deferred long-term asset charges
Total assets 14554400
Current liabilities
Accounts payable 869800
Short/current long-term debt 790800
Other current liabilities 576000
Total current liabilities 539300
Long-term debt 3617300
Other liabilities 1906100
Deferred long-term liability charges 137700
Total liabilities 6530900
Stockholders' equity
Misc. Stock options warrants 8004400
Common stock 7612100
Retained earnings 4700
Treasury stock 2217600
Capital surplus 19100
Other stockholder equity -85000
Total stockholder equity -1745000
Net tangible assets -4962400

Interpretation: - As per the above balance sheet it has been assessed that business enterprise
transmits all its operations with a normal level of profitability. The profit margin of the above
balance sheet has been measured stands out to be at 16.06% while operating profit rate is
17.89%. along with this the rate of return on overall assets are in terms of 2.87% which is
considered as a fair ratio. As per the evaluation, the liquidity position of the company
eventually expected to be high (Robinson and et.al., 2019).
Profitability ratios: -
 Gross profit ratio: - It describes the ratio which measures the performance and
productivity of company by separating profit from total sales. It is castoff to compute
net profit margin which is accessible inside the organization. It is in terms of 44.98
million (Soylu 2019).
 Net profit ratio: - It is also recognized as net revenue of income produced as a
percentage of income. The net profit ration of company is amounted to be 3.92%.
 Operating margin ratio: - It is a profitability ratio measured in the fraction of total
income made up by operating revenue. It is expected to be around 1.61%.
Liquidity ratios: -
 Quick ratio: - It is also documented as acid test ratio which measures the company
capability to meet short term obligations by separating current assets into current
liabilities. It does not include any sort of inventories with esteem to business
organization.
Current ratio: - It mentions to liquidity ratio which measures the capacity of the business for
compensable short-term obligations which are unpaid within one year with current assets. It
is very helpful in determining the paying capacity of business enterprise (Turban and et.al.,
2017).
Cash flow statements:

Interpretation: - From the above statement it has been examined that about 9,61,500 is
acknowledged by JS supermarket Ltd by attaining all the purposes but on the other hand in
terms of finance and investment undesirable balance was there which was around -329300
and 646300.
Key legislation and regulations which have implications on small business enterprises
The business is required to comply with the government regulations on federal, local and
state statues by administrating legislative bodies and carrying out regulatory agencies.
 Consumer law 2015: - It is defining as a customary of laws whose foremost goal is to
protect all entities from unfair trade practices. Each and every business organization is
required to follow all the laws to build a customer satisfaction and gaining a large

customer base. The consumer law comprises of several consumer rights that have been
established in framework with the sale of products and services. The rights involved right
to be infirmed, safety, heard and so on.
 Competition law 1998: - In harmony with this law it regulates that any business
enterprise who contracts in identical kind of products and services requirement to
established their prices also same. It would help in reducing the illegal business practices
in directive to appeal supreme number of customers (Valdez and et.al., 2021).
 Employment and labor law- It is crucial for the business to follow the labor and other
business law. The fair labor standards Act describes the business owners how they must
treat their employees by defining policies for minimum wages. According to this
regulation, overtime fees necessity be at smallest time and a half the ordinary pay rate. It
also ensures the safety of employees by having a safe working environment and free from
hazards.
CONCLUSION
It has been concluded from the above report that various considerations of the
organization are required to be analyzed by making use of transitional approach. It is
necessary for the organization to allocate the resources effectively and efficiently of the
company by employing various tools and techniques such as giant chart, critical path analysis
etc. The small business enterprises are very important and is considered a significant part of
country’s economy. The companies comply with various laws and regulations that are set for
the employees and benefits of customers in society. It has created an impact in framework for
accomplishing the targets and objectives that has been set. The budget is set in the aim of
producing and delivering products and services with the stipulated time frame. To run or
open the business it is very necessary to gather all the required information with the help of
toolkit.

References
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