Unit 29 Assessment for Business Course

This assessment covers factors for small business, customer relationship management, transnational development, break-even analysis, financial statements and interpretation for a business course. It includes a case study of Cafepod Coffee Co.

BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Talk about the factors that a small business needs to consider when choosing the right
resources to complete their objectives/goals. Write at least 5 factors that the business will
need to consider, then explain the importance of each factor................................................3
2. Define the term Customer relationship management. Explain the main areas within
customer research management and provide the advantages and disadvantages of each area.
................................................................................................................................................4
3. Define Transnational Development. Elaborate the ways which could facilitate a business in
international expansion...........................................................................................................5
4. Explain Break-Even Analysis. Demonstrate application of Break-Even Analysis on
respective business organisation with specific calculations...................................................6
5. Define the term; (1) Financial Statements. Then, find some financial statements for the
business and interpret them (you need to include the picture of them in the report). Explain
how well you feel the company is performing and why. Use evidence from the financial
statements. Then explain how the statements can be used to improve the running of that
business...................................................................................................................................9
6. Explain the term Legislation. Discuss various legislations that impact small firms. State
how they are useful in businesses...........................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business could be determined as an organisation or entity engaged in carrying out
operations and activities in order to serve customers in market. These organisations and entities
could be oriented upon profit as well as non-profit purpose behind carrying out these operations
and activities. Cafepod Coffee Co. is a UK based business organisation engaged in serving
packaged ground coffee to their customers in market. This report assessment will be comprised
of insightful and essential knowledge of functions organised in business entities which further
facilitates in effective and efficient completion of operations and activities. Moreover, it will be
including laws and regulations impacting upon operations and activities of these business
organisations. Furthermore, it will facilitate knowledge of calculating Break-event of a chosen
business entity in order to contribute effective understanding of the same (Boone, Kurtz, and
Berston, 2019).
MAIN BODY
1. Talk about the factors that a small business needs to consider when choosing the right
resources to complete their objectives/goals. Write at least 5 factors that the business will
need to consider, then explain the importance of each factor.
There are various factors and aspects associated with a business organisation which
results in influencing and affecting business operations and activities. For instance, these factors
taken into consideration in establishment of a business entity are as follows:
 Tax Planning: This factor plays a crucial role in planning for establishment of a business
entity as it is necessary for every business organisation to pay taxes and liabilities. In
order to promote ethical practices and eliminate unethical approach, It is necessary to pay
required amount of taxes as it could lead to any sort of legal implications.
 Skilled Work Force: Workforce or employees of any business entity is the most
essential asset for that company or business. For instance, these individual representatives
are responsible for carrying out business operations and activities in workplace. In
addition to that, highly skilled and capable workforce of Cafepod contribute their efforts
effective and efficient completion of assigned roles and responsibilities.
 Capital funding: In order to fuel up business activities, there is a huge requirement of
sufficient amount of capital which will further facilitate a business organisation in

effective completion of activities and practices in workplace. With access to sufficient
amount of capital investment, respective business organisation is operating with efficient
operations in order to serve customers with quality coffee beans.
 Fixed assets: Fixed assets of a company results in contributing various additional values
towards organisational growth and success with consideration of factors and aspects
impacting upon the same. It includes property, manufacturing plant, machinery,
equipment, etc. which contribute additional values towards organisation success
(Freeman, Parmar, and Martin, 2020).
Importance of above mentioned factors
 Efficient allocation of funds: With consideration of all these determined factors,
respective business organisation could ensure efficient allocation of funds in order to
acquire maximum profitability out of the same.
 Access to large market share: Consideration of related factors and aspects, Cafepod
could develop required strategies in order to serve maximum customer base in the
consumer market.
2. Define the term Customer relationship management. Explain the main areas within customer
research management and provide the advantages and disadvantages of each area.
Customer relationship management could be determined as meaningful process of
administering interaction of business organisation with customers in market. For instance,
primary purpose behind consideration of CRM lies in maintaining effective customer
engagement in order to retain existing customer base as well as attracting additional customer
base. In addition to that, there are various different technological elements required in effective
Customer relationship management including e-mail, call centres, chat rooms, etc. which allows
a business entity to get in touch and generate lead for products served to customers in consumer
market (Bonsal, 2022).
Main areas in Customer Relationship management
 Technology: It includes technological elements which allows respective business
organisation to interact and get in touch with customers in society. For instance, it further
facilitates in gathering required data or information with the use of technological
components.

 Strategy: It determines that there must be clarity in organisational goals and objectives in
order to carry out effective customer relationship management.
 Processes: This area basically demonstrates that both internal, as well as external
procedures of Customer relationship management, must be oriented toward customers or
be customer-centric. For instance, Cafepod Coffee Co. is aimed at providing customers
with top quality coffee and maintaining positive relationship with customers.
 People: Representatives engaged in carrying out Customer Relationship management
plays a crucial role in effective and efficient completion of the same as their efforts
towards the same will further lead to the accomplishment of organisational goals and
objectives.
Advantages of different areas of Customer Relationship Management
 It further contributes additional efforts in retaining existing customer base by maintaining
a positive relationship with customers.
 With access to information or data, respective business organisation could address
consumer demands which could be further met with consideration of required strategies.
Disadvantages of different areas of Customer Relationship Management
In order to pursue sufficient marketing research, it incurs a lot of time as well as cost in carrying
out the same (Lessambo, 2018).
 CRM software are quite expensive for a small business organisation to afford and
implement in their workplace. For instance, it also requires upright training to employees
in order to perform these determined functions.
3. Define Transnational Development. Elaborate the ways which could facilitate a business in
international expansion.
Transnational Development
It could be determined as development of business in context of generating more profit
and revenues with further expansion of business units over larger as well as international
grounds. For instance, it facilitates in carrying out business operations and activities over
additional geographical boundaries in order to ensure further expansion of business.
Advantages of Transnational development

 Employment opportunities: The expansion of business units with additional investment
results in creation of additional employment opportunities which further contribute values
towards society as well as economy.
 Lower operational cost: Operating in different geographical location will result in
lowering down cost of operations as well as transportation in serving customers with
quality products of respective business organisation (Boyle, Lewis-Western, and Seidel,
2021).
 Increasing skills and education level: With the access to additional market, it
contributes additional information and knowledge to respective business organisation
which supports in increasing existing efficiency and productivity.
Disadvantages of Transnational development
 Threat of alienating potential customers: There could be a risk for transnational
business organisation of inability to attract local customer of that particular geographical
location which could lead to huge losses.
 Lack of centralising all locations: In order to ensure effective transnational strategy, a
business organisation is required to manage or centralise all business locations. For
instance, it could lead to degradation of overall standards of company with inability to
manage local transnational business units.
4. Explain Break-Even Analysis. Demonstrate application of Break-Even Analysis on respective
business organisation with specific calculations.
Break-Even analysis is determined as major element of financial cost calculations of a
new business which determines the point at which respective business will acquire their
investment and reach break-even point. For instance, it determines that the respective business
has made enough or sufficient amount of sales of products in order to cover all their variable as
well as fixed costs of business (Albizri, Appelbaum, and Rizzotto, 2019).
Cost Sheet:
Particular Amount Amount
Sales 40000 40000
Direct material 25000

Direct labour 3000
Prime cost. 28000
Variable manufacturing overhead 4000
Variable selling expenses 3000
Variable administrative expenses 2000 9000
Contribution 3000
Less : fixed cost
Fixed manufacturing 1000
Fixed selling and distribution 1000
Fixed administrative 600 2600
Profit 400
In order to calculate Break-Even analysis of Cafepod Coffee Co., 2020
Break Even Point = Fixed Cost/ Profit Volume Ratio
= 2600 / 7.5%
= 34666
PV Ratio = Contribution / Sales * 100
= 3000 / 40000 * 100
= 7.5%
Margin of safety = Profit / PV ratio (in amount)
= 5575 / 7.5%
= 74333
In year 2021:
Selling price = 220 + 30 %
= 286
Particular Amount Amount
Sales 62000

Direct material 27000
Direct labour 3200
Prime cost. 30000
Variable manufacturing
overhead
4000
Variable selling expenses 3100
Variable administrative
expenses
2000 9100
Contribution 22900
Less : fixed cost
Fixed manufacturing 1100
Fixed selling and distribution 1400
Fixed administrative 650
Fixed cost 1400 4550
Profit 18350
Break-Even Point = Fixed cost / PV ratio
= 4550/ 36.93%
= 12320
Profit Volume Ratio = Contribution/ sales * 100
= 22900 / 62000 * 100
= 36.93%
MOS (Margin of Safety) = Profit / Profit Volume Ratio
= 18350 / 36.93 %
= 49688
Interpretation: The above mentioned calculation of Break-Even point of respective business
organisation for the year 2020 and 2021. For instance, there has been a degradation or fall in
BEP in the year 2021. In addition to that, potential reason for the same taken into consideration
has been determined as reduction in production of goods or decrease in prices of products

offered by respective business organisation. Moreover, rise or increase in overall fixed costs to
company could be further considered as another major reason behind declining Break-Even point
of Cafepod Coffee Co.
5. Define the term; (1) Financial Statements. Then, find some financial statements for the
business and interpret them (you need to include the picture of them in the report). Explain
how well you feel the company is performing and why. Use evidence from the financial
statements. Then explain how the statements can be used to improve the running of that
business.
Financial statements could be determined as reports or results developed with
consideration of financial aspects of respective business organisation. For instance, it facilitates
in providing an understanding of the actual financial position of the company by analysing and
presenting financial statements of the company. There are various financial statements in a
business organisation including Balance sheet, Cash flow statement, Profit and Loss account, etc.
which contributes an understanding of financial performance of a company. Moreover, these
financial statements are prepared by representatives engaged in finance department of respective
business organisation. Furthermore, there are various elements interpreted in these financial
statements including profitability, revenue, debt, short-term as well as long-term loans, etc.
which are presented before investors or shareholders.
Cash Flow Statement: This particular financial statement is basically comprised of entries
regarding the inflow as well as outflow of cash from the respective company. For instance, it
includes three major classifications including Investing, Operating, and Financing activities. The
inflow of cash for Cafepod Coffee Co. is determined as revenue generated from selling out their
products into market. On the other hand, Outflow of cash from respective organisation include
paying up for accumulation of raw materials as well as other necessary resources in order to
carry out business operations and activities. Furthermore, it facilitates business organisations in
attracting investors to towards investing in their company by providing them with insights of
their financial position (Young, 2018)
.

Balance Sheet: This financial statement is considered as most essential financial statement as it
includes assets, liabilities, and shareholder equity of a business organisation. For instance, it
provides knowledge of real time financial position of company with consideration and analysis
of each and every financial aspect of company. In addition to that, this particular financial
statement is created by each and every business organisation from small sole proprietors to large
scale multinational organisations. As it presents contrast over what is owned and owed by the
company, it reflects a clear picture of company’s financial health. Furthermore, this particular
financial statement is generally developed at the end of each financial year with consideration of
all financial aspects throughout the year.
Profit and Loss account: This particular financial statement is determined at analysing and
presenting profits and losses incurred by a business organisation in a specific period of time. For
instance, it includes operational costs, revenue generated from sales, and expenses to company in
that particular time span. Moreover, the end result of this statement determines the amount of
profit made or losses incurred by the company in carrying out their operations and activities.
Referring to respective business organisation, primary purpose behind consideration of Profit and
Loss statement lies in determining actual financial performance of company in serving customers
with their products. Furthermore, there are various classification in this particular financial
statement including net sales, gross margin, selling expenses, net profit, etc. which allows
respective organisation to understand about the actual financial position of the company (Kapan,
and Minoiu, 2018).
6. Explain the term Legislation. Discuss various legislations that impact small firms. State how
they are useful in businesses.
The term Legislation could be determined as guidelines or rules and regulations
introduced towards business organisations which determine authorised as well as unauthorised
activities and practices of a business organisation. There are various legislations that impact upon
working of small business which are as follows:
 Employment Act, 1996: This particular legislation or legislative law has been introduced
in context of protect the rights of employers as well as employees in the workplace. For
instance, it provides an effective understanding of ethical and unethical practices of a
business organisation in order to promote authorised as well as eliminating unauthorised
to be practices in any workplace. In addition to that, there are various areas covered under

this act including unfair dismissals, flexible working hours, termination of employment,
zero-hour contracts, etc. which protects the rights of both employers as well as employees
in workplace. Furthermore, there is a crucial necessity for each and every business entity
to be abide by these rules as violation of the same could lead to negative impact upon
these businesses.
 Data Protection Act, 1998: This particular legislative law is introduced in order to
protect the right to personal information of an individual. For instance, it stated that no
business or any other organisation have the permission of violating confidentiality of
information of their customers without their personal concern or permission. Moreover, it
provides an systematic manner of how to collect, store, and analyse personal information
of customers in order to operated under these introduced laws and regulations.
Company Law, 2006: This legislative has been introduced in United Kingdom in context of
companies or business organisations operating in that particular economic market. For instance,
it included various different areas which were discussed under this law including administration,
rights of shareholders, corporate culture, etc. which contributes effective understanding of the
same. In addition to that, this particular legislative law has been further influenced by Companies
act 1989 and Companies act 2004 with several changes and enhancements with discussion of
additional issues (Nacef, Baccar, and Zouari, 2018).
CONCLUSION
From the above assessment report, it could be concluded that a business organisation is
comprised of immense number of factors and aspects which results in impacting upon its
operations and activities. For instance, tax planning, skilled workforce, capital funding, and
Fixed asset are determined as major areas in a business organisation that are required to be taken
into consideration. Moreover, it is inclusive of Cost sheet which determines profitability of
company in context of comparison between 2020 and 2021. Furthermore, Cash flow statement,
Balance sheet, Profit and Loss statement are further determined with essential information in
order to contribute understanding of the same.

REFERENCES
Books and Journals
Boone, L .E., Kurtz, D. L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Freeman, R. E., Parmar, B. L. and Martin, K., 2020. BUSINESS AND ETHICS (pp. 129-140).
Columbia University Press.
Bonsal, S., 2022. Unfinished business. ISCI.
Lessambo, F.I ., 2018. Financial Statements. Analysis and Reporting.
Boyle, E.S., Lewis-Western, M.F. and Seidel, T.A., 2021. Do Quarterly and Annual Financial
Statements Reflect Similar Financial Statement Error in the Post-SOX Era?. Journal of Financial
Reporting, 6(1), pp.1-31.
Albizri, A., Appelbaum, D. and Rizzotto, N., 2019. Evaluation of financial statements fraud
detection research: a multi-disciplinary analysis. International Journal of Disclosure and
Governance, 16(4), pp.206-241.
Young, C., 2018. Africa: An interim balance sheet. In Africa (pp. 341-358). Routledge.
Kapan, T. and Minoiu, C., 2018. Balance sheet strength and bank lending: Evidence from the
global financial crisis. Journal of Banking & Finance, 92, pp.35-50.
Nacef, T., Baccar, M.A. and Zouari, B., 2018. Antituberculous fight in the Maghreb: the balance
sheet. La Tunisie Medicale, 96(10-11), pp.584-589.