Small Business Management: Resource Allocation and CRM Analysis Report

This report examines the management and operational strategies of a small business, specifically using Ashtons, an independent estate agency, as a case study. The report begins by exploring the key considerations for planning and allocating resources to achieve business objectives, including vision, goals, financial resources, and the use of tools like Gantt charts and critical path analysis. It then delves into customer relationship management (CRM) processes, outlining steps for CRM excellence, customer data consolidation, segmentation, personalization, and strategy re-evaluation. The report further analyzes the transnational development of a small business, discussing strategies like exporting, franchising, and mergers, along with their benefits and drawbacks. Financial aspects, including cash flow forecasting, break-even analysis, and key financial statements, are also addressed. Finally, the report covers relevant legislation and regulations impacting small businesses.

Managing and Running a Small Business
Turning a vision into action
Student name and ID:
Assessor name/names: Justice Osafo/Data Bob-Manuel/Que Mizra
Academic Year: 2021/22
Submission Date:
Word Count: 3862

Contents
Introduction:..................................................................................................................................2
Task 1..............................................................................................................................................2
The main considerations a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives:.......................................2
Relevant tools and techniques in a structured and analytical way to plan and allocate
resources in an organizational context:...................................................................................3
Importance of planning and allocating resources to achieve the business objectives:........3
Application of appropriate resources to demonstrate links between resources allocation
and achievement of business objectives:..................................................................................3
Task 2..............................................................................................................................................4
Different processes of customer relationship management for a small business or social
enterprise:...................................................................................................................................4
Transnational development of a small business, its benefits, and drawbacks:....................5
Elements of customer relationship management process for achieving business
objectives:...................................................................................................................................6
The potential to develop transnational operations using the stage model of
internationalization, assessing both benefits and challenges:................................................6
Customer relationship management process at all stages and recommendations for
overcoming challenges of developing transnational operations:...........................................7
TASK 3...........................................................................................................................................7
Annual itemized monthly cash flow forecast showing fixed and variable costs set against
income for a specific organization:..........................................................................................7
Break-even analysis in an organizational situation:...............................................................9
Key financial statements for organizations about their contribution to the successful
management of the organization:.............................................................................................9
Appropriate quantitative and analytical techniques to provide an appropriately detailed
cash flow forecast and break-even analysis:.........................................................................10
Task 4............................................................................................................................................10
Key legislation and regulations that have implications on small businesses or social
enterprises:...............................................................................................................................10
Implications of key legislation and regulations in an organizational context:...................11
Conclusion:...................................................................................................................................11
Reference:.....................................................................................................................................11

Introduction:
Managing the coordination and organization of business activities which typically includes the
production of materials, money, and machines, and involves both innovation and marketing is
called Management in business. Its sole purpose is to accomplish defined objectives through
coordination and organization. To meet the objectives of the policy, they are generally in charge
of planning, organizing, directing, and controlling the business's resources. Any small and
medium-sized organization which requires high-grade information and internet solutions for their
enterprise is known as SME (Ali & Babiker, 2017). Providing various opportunities to
unemployed persons is the main aim of small businesses The following report is based on an
SME or social enterprise in the UK named Ashtons. This study will include small business plans
that allocate resources to accomplish objectives. The customer relationship management process
is also determined in this assignment. Break-even, budget, and cash flow forecast tools are used
by companies to identify their financial statement and the implications of legislation and
regulations on social enterprise will also be discussed in this project.
Task 1
The main considerations a small business or social
enterprise needs to address when planning and allocating
resources to achieve business objectives:
Ashtons is an independent estate agency practice founded in 1980 that provides a first-class
estate agency service in Harpenden and Welwyn Garden City as well as St Albans. They
organize over 1000 transactions including land acquisitions, residential sales, investment
transactions, residential letting, and new homes. They support their workers financially as well as
attain professional qualifications. Different elements required by social enterprises when
allocating and planning resources to achieve the long-term goals and objectives of a company are
discussed below:
Vision, goals, and objectives: The three most important statements of every business on
which the entire success and development of the enterprise highly depend and further affect the
planning process are its vision, goals, and objectives. Here, long and short-term goals that
support employees of an enterprise to do all their activities properly are fixed by the management
of Ashtons.
People and Skills: One of the main resources of an organization that is highly needed by
the company for the achievement of predetermined targets are its people and the skills they have
acquired. The role of the manager of Ashtons is to classify its employee’s duties as per their
skills and abilities (Chauma, 2017). Providing accurate training and development to unskilled
persons so that they have some knowledge and work with full efforts for the accomplishment of
desired objectives is another duty of HRM of Ashtons.
Financial resources: Planning and allocating important resources to achieve objectives
is another essential aspect that Ashtons needs to keep in mind. Proper identification of effective
components of finance such as bank loans, overdrafts, and many others should be done by the
management of Ashtons.

Relevant tools and techniques in a structured and
analytical way to plan and allocate resources in an
organizational context:
Ashtons use mainly two types of project management techniques to plan and allocate resources
(Ali & Babiker, 2017). Both are discussed below:
Gantt Chart: A commonly used graphical depiction of a project schedule that shows the
starting and finishing dates of a project's elements such as resources, planning, and
dependencies; simply put, that illustrates a project schedule is known as a Gantt chart. All the
activities and functions as per the time duration of a business are divided by the management in
this chart. It helps Ashtons to attain their desired objectives by forming a planned structure. Their
business manager can easily collect information regarding the need for resources to accomplish
end objectives and goals with the help of this chart. Coordination among different business
operations should be ensured through effective channels of communication by Ashtons.
Critical path analysis: An algorithm for planning complex working procedures
concerning the critical path of each alternative system that is commonly used in conjunction with
the program evaluation and review technique is known as Critical path analysis or CPA. The
time duration of a project completed can be easily understood in a business with the help of a
CPA. Different ways addressable to do the project within a specific period can also be
determined with its help. The company administrator of Ashtons can easily achieve set
objectives and targets in a given time duration by finding the shortest way to access them.
Importance of planning and allocating resources to
achieve the business objectives:
To do all the activities properly in a business organization as well as allocating resources to the
employees as per their skills, proper planning is an obligation. Ashtons can easily analyze
different resources of the fund as well as achieve predetermined objectives in an allotted period
using proper planning. Set goals and objectives of Ashtons can never be achieved without
planning. The administrator of Ashtons can apply all acquirable resources at the best level and
the company can yield the maximum number of profits with its help. Thus, the role of planning
is immense as the company provides featured products and services to its clients at reasonable
prices.
Application of appropriate resources to demonstrate links
between resources allocation and achievement of business
objectives:
According to Cojoacă (2017), to attain long-term objectives, different resources play an
equal role in it. One of the necessary factors to arrange sufficient funds and recruit talented
candidates is Finance and HRM. Business operations and activities can be accomplished in a
given time through sufficient funds (Chauma, 2017). To increase sales and revenues, the goals,
aim, and objectives of an organization also play a vital role.

According to Stanciu (2015), to give featured products or services to its clients and to
accomplish business objectives and goals within a preset time duration, the company needs to
follow a diverse number of resources or aspects. An enterprise can carry out business operations
smoothly and effectively when they have every resource needed. Thus, it is vital for the
administrator of Ashtons to develop a plan and policy that include data regarding the resources
needed to run business operations effectively.
Task 2
Different processes of customer relationship management
for a small business or social enterprise:
The combination of practices, strategies, and technologies that companies use to manage and
analyze customer interactions and data throughout the customer lifecycle to improve customer
service relationships and assist in customer retention and drive sales growth is called Customer
relationship management. The accurate process of CRM is given below:
CRM Excellence Model (Source: Customer Relationship Management, 2013)
1. Align systems with goals and strategy: Setting the goals and strategy for the different
numbers of customers is the first step of this process. The development of an action plan
to accomplish set targets within a predetermined time duration is the next step to setting
goals. All the activities and tasks to be executed during the performance of CRM are
determined in it.
2. Consolidate customer data: The customer’s expectations toward a business entity can
be determined by analyzing the information gathered from the target in this step. It also

supports assessing the factors that must be included by an enterprise while serving its
clients to enhance the relationship between them.
3. Segment customers: This stage of the action plan includes, Ashtons selecting its target
audience as per their attributes so that a strong and long-lasting relationship can be
created between them. Giving entire data related to innovative sources, products, and
many others is the best activity for the company.
4. Personalize customer interactions: Communicating different offers is the main focus of
an organization in this step. Entire data about business value towards their products or
services can be obtained by collecting feedback from the customers to better provide
commodities. Multichannel, IVR, Voice, Mobile, Social Networks, Web self-service,
Email, Knowledge base, and many other means are applied by Ashtons to maintain long-
lasting and better connections with clients.
5. Re-evaluate and recalibrate CRM Strategy: The last process of CRM is to re-evaluate
the customer relationship management strategy by the management which helps them to
maintain a better relationship with the customer. Ashtons attract a large number of
customers to purchase the products by using different tools of digital marketing. To
improve their connection with customers, they further provide different facilities for the
customers.
Transnational development of a small business, its
benefits, and drawbacks:
When a company provides all products and services internationally as per the demand of the
market is known as transnational sales of that company. Companies retain a higher degree of
sensibility to the national markets where they keep facilities by expanding their business
operations in specific countries. Some important transnational expansion strategies are given
below:
Exporting: Selling services and products produced in a specific country to other nations
is called exporting. It will assist in the distribution of surplus, be less costly and risky, and also
support fast market access for Ashtons.
Franchising: Gaining accurate right to be determined by its trademark to sell services or
products through paying royalty and fees to a parent organization by semi-interdependent owners
of an organization is called franchising. It highly motivates employees to work from time to
time.
Merger: The combination of two or more region entities into one, the wanted effect
being an accretion of liabilities and assets of distinct entities is known as the merger.
Strategic Alliance: Any voluntary formal agreement between two organizations to
accomplish a common set of goals while remaining independent entities by pooling their main
resources is known as a strategic alliance.

From these above strategies, Ashtons prefer the merger most. Tax benefits, financial
advantages, increased monetary leverage along with proper benefits within a given time duration
can be attained through it.
Benefits: Producing quality products at an affordable cost can expand business operations and
functions at a global level. There are different advantages and disadvantages to enlarging
business activities worldly (Javaid & Iqbal, 2017).
1. Independence: As a business owner, one has full control of everything, including
income, expenses, and debt without having any concerns about office politics.
2. Lifestyle: One can decide when and where to start their operations along with
providing lifestyle flexibility to the employees which will be very much helpful for
women and earn their loyalty.
Drawbacks:
1. Financial risk: To launch a business globally, small business organizations generally
don’t have the necessary funds to increase their operations at national and international
levels easily.
2. Time commitment: Entrepreneurs generally launch small businesses having a mindset to
spend extra time with their family or other cases which is disadvantageous for the
company.
Elements of customer relationship management process
for achieving business objectives:
The main elements of CRM are:
Understand market and customers: The first element of CRM is for the business entity
to know customers and the marketplace where they can establish their products.
Develop the offer: This element includes providing different offers to the target
customers at affordable prices by Ashtons which is an important process for the company to
increase its sales or revenues in a limited time.
Acquire the audience: Here, the management will acquire a new audience in a
systematic manner (El-Rafei & et. Al, 2017). Considering acquisition cost, the management
evaluates customer value and performs a client loyalty program which includes in their
strategies.
Change in product and service: Modification in service or products results in either the
relationship of the customer negatively or positively as well as affecting productivity.
Differences take place in the preferences and tastes of customers: Whenever an
alteration takes place to the requirements and demands of customers then it also affects CRM
which needs to be handled carefully.

The potential to develop transnational operations using
the stage model of internationalization, assessing both
benefits and challenges:
To operate the business on an international level, Ashtons use the internationalization model. It
includes 4 parts:
Knowledge opportunities: Knowing different opportunities to achieve long-term goals
and objectives by Ashtons falls under this step. By accurate research and gathering data
regarding the chance to subsist in the marketplace, Ashtons can acquire a competitive and strong
position in the market.
Relationship commitment decision: Creating an effective judgment about enlarging
business activities and operations at national and international levels by serving quality products
and services falls under this step.
Network position: Ashtons distribute advertisements and promotions in this position
using print and social media (Ludmila & Stanislava, 2015). So, Ashtons can easily introduce its
innovative products and services in the marketplace.
Learning creating: It is the last position of the model which refers to Ashtons organizing
different programs and events to introduce their services and product information to the
customers and in the marketplace. This step is crucial in expanding business operations at the
international level.
Benefits: Ashtons can accomplish high brand acknowledgment via performing their business
operations and activities across the world which will increase development perspective in the
various marketplace and return maximum revenues.
Drawbacks: The main drawback of ruining business operations and activities at a global level is
its expense. Acquiring facilities, getting permits and many other requires huge cost.
Customer relationship management process at all stages
and recommendations for overcoming challenges of
developing transnational operations:
According to Ludmila & Stanislava (2015), Ashtons apply the 4C's of the CRM process. These
are:
Correlate: A series of interactions and transactions that create a better relationship
between the user, channel, and customers fall under this step. An effective program to influence
employees running in different departments of the company for making and keeping a strong
relationship with target customers is organized here.
Combine: A link between a client’s user and the channel is formed here to produce an
effective relationship with customers.
Cognize: Knowing and capturing the entire information regarding business products and
services falls under it.

Connect: This element includes the utilization of insight to develop accurate interaction
with channels, consumers, suppliers, partners, and customers by Ashtons that make a strong
relationship.
TASK 3
Annual itemized monthly cash flow forecast showing fixed
and variable costs set against income for a specific
organization:
Different sources of finance for a small business such as equity finance, bank loans, leasing, and
hire purchases are discussed below:
Equity finance: Equity finance is the main source for Ashtons to expand their business
in the future (Nowotarski & Paslawski, 2015). One can raise assets by selling business shares to
financial institutions, investors, and the public.
Bank Loan: It is a suitable and useful part of the financial structure applied by every
enterprise.
Leasing and hire purchases: Using business or persons to take and monitor capital
during the process of agreement falls under this finance.
Some techniques of budgeting and forecasting resources are discussed below:
Time series data: Identifying the time duration of completing their projects effectively
which is beneficial for the development of the company.
Calculating a moving average: Calculating customer needs and wants to acquire entire
trends in a set of data is the use of this tool.
Finding a trend: Ashtons use this tool to find the latest trend effectively (O’Connor &
Kelly, 2017).
Dealing with seasonality in developing the budget: Developing a systematic budget to
cope with seasonality.
Ashtons balance Sheet, trading and P&L, and cash flow statement:
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

Trading and Profit & 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 Statement
Pre-launch cash
budget Cash Flow
budget
Particulars
Cash inflows
Jan Feb Ma
r
Ap
r
Ma
y
Jun e Jul y Aug
ust
Septem
ber
Octob
er
Novem
ber
December
Investment
800
0
Credit sales
200
0 3000
30
00
45
00
150
0
350
0
42
00
100 0
2000 800 1200 1500
Total inflows
Cash outflows
100 00 300 0 30
00
45
00
150
0
350
0
42
00
100 0 2000 800 1200 1500
Fixed :
Equipment’s
200
0 2500
15
00
20
00
120
0
150
0
80
0 200 300 100 600 300
Variable: Direct material
300 300
20 0 30 0
150 500
30
0 400 500 100 100 400
Total outflows 230
0
280 0 17
00
23
00
135
0
200
0
11
00 600 800 200 700 700
Net cash flow
770
0 200
13
00
22
00 150
150
0
31
00 400 1200 600 500 800
Opening balance 0 7700
79
00
92
00 114 00 115 00
##
## 161 00 16500
1770
0 18300 18800
closing balance
Post-launch cash budget
770
0
7900
92
00
11
40 0
115 50 130 00 #
#
#
#
165 00
17700
1830
0
18800 19600
Particulars
Cash inflows
Jan Feb Ma
r
Ap
r
Ma
y
Jun e Jul y Aug
ust
Septem
ber
Octob
er
Novem
ber
December
Investment
800
0
Credit sales
120
0 2000
75
00
30
00
500
0
650
0
12
00
320 0
1500 8200 1250 3210
Total inflows
920
0
200 0 75
00
30
00
500
0
650
0
12
00
320 0
1500
820 0
1250 3210
Cash outflows

Break-even analysis in an organizational situation:
Annual and monthly sales requirements can be attained through break-even analysis.
Variable and fixed cost per unit of sales is the basis of the breakpoint of the average. Ashtons
identify the profitability level with targets to cover the production cost and create long-term
profit.
Sorting out production and other wastage issues through break-even analysis is
done. For example, the Fixed cost is 15000 and the variable cost is 5 rupees per unit. The selling
price is 7 per unit. BEP for this is, Fixed costs/ construction margin per unit or product = 15000/
(7-5) = 7500.
Key financial statements for organizations about their
contribution to the successful management of the
organization:
Overall information related to cash flow, Balance sheet, and profit and loss account can be
determined by the financial statement. These are:
Balance sheet: The main statement of the company which shows assets and liabilities is
its balance sheet (Durst, Yip & Lee, 2015). It determines the financial position of an enterprise
by representing the assets, liabilities, and owner's equity over a specific time duration. It assists
potential as well as current investors of Ashtons in acquiring clear knowledge about where they
should capitalize their fund and how much acquire they can require in the future.
Trading and Profit & loss account: An investment account containing cash, securities,
or other holdings refers to trading. As investors tend to sell or purchase assets frequently it is
important to show the income and expenditure of the enterprise. Asset value can be measured by
Ashtons that they currently have by evaluating the P&L account to determine whether they can
buy more.
Cash flow statement: Ashtons should prepare their cash flow statement every quarter to
maintain their cash inflow and outflow. Ashtons can identify whether they are capable to recover
their expenses or not through this statement.
Appropriate quantitative and analytical techniques to
provide an appropriately detailed cash flow forecast and
break-even analysis:
To analyze cash flow and break-even point (BEP) in an accurate manner, quantitative techniques
play a great role. Companies easily analyze their performance and productivity level without any
difficulty through it. Evaluating all acquirable techniques before selecting a final one is very
much essential for the management of Astons. Each decision and activity are taken by Ashtons’
management to achieve BEP and know the accurate point where they need to gain profit.

Task 4
Key legislation and regulations that have implications on
small businesses or social enterprises:
Ashtons’ performance and its productivity level are highly impacted because of some rules and
regulations. These are:
Tax and Employment (1976): The collection and levy of tax and employment on professionals
in the state are given as per this act. Ashtons is highly affected directly and indirectly because of
it.
Health and safety act (1974): Ashtons mainly emphasize employee health and safety which is
important for the organization to maintain a long-lasting relationship per this act.
Data protection act (1998): Workers of the Ashtons is liable to provide all information
systematically to their juniors to increase their performance and productivity in the organization
as per this act.
Record keeping act (2006): Companies are bound to keep all records of their employees
regarding their performance, work, and activities in the business under this legislation.
Implications of key legislation and regulations in an
organizational context:
For successful business operation and development of Ashtons, all legislations and acts are very
important. Issues regarding employee health and safety, record keeping, data protection, and tax
& employment are implemented in the organization by providing roles and responsibility,
maintaining workers’ health, and understanding of employee performance and work. Ashtons is
bound to apply different legislation regulated by legal authority while executing business
activities. They can give a healthy and safe working atmosphere to its workers and this raises
their creativity by following these legislations.
Conclusion:
The importance of SMEs for the unemployed person can be easily determined by the above
report. To plan and allocate business as well as predetermined objectives in a limited time,
different resources play a vital role. Long-lasting and strong connections with customers can be
maintained by following CRM. Sales and revenues increase by an enterprise through good
relations. To show business assets, liabilities, income, expenditure, cash inflow, and outflow,
financial statements have a huge part. Break-even analysis is also necessary to maintain all
records systematically. Regulations and legislation also impact the company’s performance and
profitability level directly and indirectly.
Reference:
Ali, N. S. H. M. and Babiker, S. M. E., 2017. Performance Evaluation of Multi-core Systems
using SPEC CPU2006 Benchmark.