Unit 49: Managing and Running a Small Business

Managing and
Running a Small
Business
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Table of Contents
Introduction......................................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Discuss the main consideration of a small business needs to address when planning &
allocating resources of business.............................................................................................3
TASK 2............................................................................................................................................4
P2 Explain the process of customer relationship management and provide benefits and
limitations of each..................................................................................................................4
P3 Discuss about transnational development and its benefit & drawbacks...........................6
TASK 3............................................................................................................................................7
P4 Develop an itemised monthly cash flow forecast showing fixed & variable cost............7
P5 Explain the way break even analysis will applied to organisation..................................10
P6 Examine Interpretation on key financial statement for an organization to contribute in the
successful management........................................................................................................11
TASK 4..........................................................................................................................................12
P7 Briefly explain the legislation and regulations which have major impact on small
businesses.............................................................................................................................12
CONCUSION................................................................................................................................13
REFERENCES..............................................................................................................................14
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Introduction
Main objective of this report is to better understand the concept of managing and efficiently
running a business. Small business play an essential role in the growth and development of a
country economy. It will not only enhance economy also provide various employment
opportunity to the people near their business. For efficiently managing and running a business it
is very important to that business develop new and innovative ideas which help business to
achieve long term success in market. These small business in the market will develop various
innovative business idea and provide opportunity to other to start their business. For this report
Expat Explore Travel is taking into consideration. Which is founded by Carl Cronje and Jakes
Maritz, headquarter is in London, U.K. This report assist in analysing how a business will make
plan and efficiently allocate its resources for their business which help them in achieving their
business goal. Other than this it include the process of customer relationship management and
various advantage and disadvantage of transnational operations. This report include the cash
flow statement and break even analysis and in last it include various legislation and regulations
on a small business or social enterprise.
MAIN BODY
TASK 1
P1 Discuss the main consideration of a small business needs to address when planning &
allocating resources of business.
Small, large and medium businesses play an essential role in the growth of economy of
UK and after the BREXIT action taken by UK government they provide various growth
opportunities to small business to develop a new and innovative business and achieve maximum
profit which help in the development of UK economy (Apte and Davis, 2019). Other than this for
effectively operating business operations and achieving higher success proper allocation of
resources is very important. Business need to consider various factors such as forecasting &
budgeting, recruitment and selection & financial statement of business. In context of selected
company, it is a travel business which is operate its operations in small scale. They efficiently
analysis the needs and demand of their local customers which help them in satisfying their needs
and achieve their customer loyalty. Selected company will efficiently use its resources such as
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Manpower, Capital and so on. Other than these resources there are various other factors which
impact on the success of business are discussed below:
 Flexibility- It is an important resource that an organisation need to consider effectively
because it play an essential role in achievement of organisation goal. This resource will
help business in facing any change and problem and take effective action on time. In
context of selected company adopting flexibility will help business in effectively adopt
any change. Business needs to use this resource in an effective way and formulate
policies and strategies by considering which help in achievement of organisation goal.
 Employees- Manpower of the business also play a crucial role in the success of business.
As they are the person who work for the achievement of goal on a specific time frame.
Efficiency of manpower will improve the performance of an organisation. In context of
selected company, they need to use high skilled and talented employees who have much
knowledge about the travel business. (Bagwell, 2018)
 Assets- In context of selected business, assets of business include Traveller buses,
furniture, real estate etc. Efficient use of assets will reduce the cost for company. Selected
business need to focus on their assets which helps selected company in successfully
aching the goal of business. This is because without use of assets a business is not able to
operate its business operations.
 Financial resource- This is the most beneficial or important resource for a business
which play an essential role in the success of organisation. Because with sufficient
financial resource company is not able to operate it business operations. In context of
Expat Explore, they need to use their financial resource in an optimum level so that they
better achieve their business goal.
TASK 2
P2 Explain the process of customer relationship management and provide benefits and
limitations of each.
It refers to an approach which help an organisation in effectively communicating with
their existing customers. CRM help an organisation in analysing their customer data or history
which assist an organisation in improving their relationship with customers. This approach will
help company in providing better service to their customers which in turns assist in long term
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