Austin Fraser: Analyzing SBE Management, CRM, and Financial Strategies

This report examines the management and operational strategies of Austin Fraser, a small consultancy and recruiting company. It delves into key considerations for small businesses, including financial resources, employee skills, and strategic goals. The report analyzes customer relationship management (CRM) processes, exploring various channels like multimedia messaging, events, and social networks. Furthermore, it discusses the potential for transnational business development, outlining the benefits and drawbacks of international expansion. The report includes a cash flow forecast, break-even analysis, and a review of financial statements, providing a comprehensive overview of the company's financial planning. Finally, it touches upon relevant legislation and regulations impacting small businesses, offering a well-rounded perspective on the challenges and opportunities faced by such organizations.

MANAGING AND RUNNING A SBE

INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
P1) Main considerations a small business or social enterprise needs....................................2
TASK 2............................................................................................................................................3
P2) Various processes of customer relationship management...............................................3
P3) Small business can develop transnationally and benefits and drawbacks.......................5
TASK 3............................................................................................................................................6
P4) Annual itemised monthly cash flow forecast showing fixed and variable costs.............6
P5) Break- even analysis........................................................................................................9
P6) Financial statements for an organisation........................................................................10
TASK 4..........................................................................................................................................11
P7 Legislation and regulations that have implications on small businesses........................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Small businesses are considered as a very important part of an economy as it helps them
to achieve growth and development in an overall manner. It is known that in small sized
organisations normally few employees are working who are responsible to conduct all their work
operations of the organisation in an effective manner. These types of companies are having their
main aim to provide job opportunities to people and improving the standard of living of people
living in the economy as well (Ali and Babiker, 2017). But, even though the company is small
but it is not easy to manage or run it so there are various kinds of strategies and tools which are
required to be implemented by that their operations are being done in an effective manner. The
organisation which is being referred here is Austin Fraser. It is a small company which is
providing recruiting as well as consultancy services to the people in the areas like information
technology, engineering, human resources and many others. This report will discuss about the
planning done by small sized organisations about allocating resources to achieve their aims and
objectives, evaluation of customer relationship management process. Along with this, a cash
flow forecast will also be done by the company.
TASK 1
P1) Main considerations a small business or social enterprise needs
Austin Fraser is a small sized consultancy and recruiting company who are working in
the field of engineering, animation, information technology, accountancy and many others.
These type of company's normally have limited resources which they use effectively while
conducting the operations of the company. Austin Fraser is making use of their resources to give
good consultancy services to their clients (Bridge and O'Neill, 2012). Through this, they aim to
grab the whole market of UK. Once it is done, then the company will be able to provide various
kinds of employment opportunities in the market and providing better recruiting to the people
living in the society as well. This will be very effective in providing the best employment
opportunities to the nearby people so that their living standards cab be increased. Therefore, it is
very important for an organisation to apply various kinds of factors through which they can plan
their future actions in an effective manner. Some of them are as follows:-

Financial resources- It is being considered as one of the most necessary resource of an
organisation as without this no company can operate effectively in the market. It is also very
necessary for all the companies to have sufficient amount of funds to run their business because
if the funds are not satisfied then it will give a bad impact on the company and it will not be able
to run in an effective manner (Burns, 2016). In Austin Fraser also, they are also required to
utilize their funds in an effective manner and have a look on their financial statements as well
which includes Balance sheet, Profit and loss account, cash flow statements and many other.
Staff members and their skills- These are also considered as the major asset of every
business concerns because these are the people who performs their work in an effective manner
through which the goals and objectives will be achieved in a proper manner as well. For this,
they are being given proper training as well because it will be helpful in improving their skills
and capabilities as well. The HR manager of Austin Fraser is having the responsibility to make
sure that the employees are working in an effective manner and they are being included in the
decision making process of the company as well.
Goals, objectives and vision- It is very much necessary for the organisation to make sure
that they convey all the goals and objectives of the company to the staff member's in an effective
manner as all of them are related to the business. It is very beneficial for Austin Fraser as they
get clarified very well that which function will be performed by which employee. It can be
considered as a kind of framework which is being conducted so as to achieve the goals and
objectives of the company. So their management is applying various kinds of training and
development techniques through which employees can be developed in a proper manner.
TASK 2
P2) Various processes of customer relationship management
CRM(customer relationship management) can be defined as approach through which the
organisation is able to have a proper connection with their clients as well as customers so that
their needs and demands are fulfilled (Chauma, 2017). It has also been specified that if the
organisation wants to conduct better CRM then they will have to conduct a proper research in the
market through which they will get help in recognising the needs and demands of the customers.
This process is very essential in determining the profitability of the company in the market place

and attaching the customers with the company for a longer period of time as well. In order to
conduct effective research, various kinds of tools and techniques are required to be implemented
by the management like Email, MMS, Telephone, SMS and many other. But in detail CRM can
be termed as a process in which the needs and wants of the customers is being analysed so that
they can give best results to the company (Cojoacă, 2017).
Several channels which can be utilised by Austin Fraser for holding customers relationship
management are as follows:-
Assessment of customer value:- It is very crucial for the companies to have good
relationship with their customers because then only they will be able to recognise their specific
need and wants and later on improving the cost and quality of the goods and services. If Austin
Fraser will make use of this technique then it will be very effective for them as it will help them
in taking feedbacks from the customers. The whole process of Austin Fraser helps in identifying
the trends which are going on in the market along with its taste and preferences as well. After
this, Austin Fraser is able to bring changes in their existing products and services through which
the consumers are satisfied as well. So, these are the kind of practices which helps in conducting
the activities in an effective manner and satisfying the needs and wants of the customers as well.
Multimedia Message service (MMS):- It is a kind of technology which is being used by
the company in order to provide needs effective goods and services to their customers which
they have introduced in the market. Also, these kinds of technologies can be used to send
messages to several people at one time. It is an attractive process as well and easy to be used as
well. It includes various kinds of images and text. With this Customer relationship management
channel respective organisation can communicate with their visitor effortlessly (Drucker, 2012).
Events and road shows:- This is a kind of techniques through which company can meet
various types of people at a particular period of time. Through events and road shows, the
management can meet various types of people at a particular period of time and thus explaining
offers to them will be very easy and thus information will be provided to them in a proper
manner as well.
Social Networks:- Through this process, Austin Fraser can communicate with their
customers in an effective manner and even launch their products and services effectively. Some
examples of social network are Facebook, twitter and many others. This helps the customers in

getting to know the goods and services which is being offered by the companies (Durst. and
Runar Edvardsson, 2012).
Role of Digital marketing and E-Mail for effective relation:- For keeping up great
connection with client, it is vital that organization need to utilize appropriate correspondence
channel for this. Computerized and E-Mails are best case of correspondence channel too these
both help with making and creating mindfulness in clients about merchandise and ventures.
(Source:Five Step Process for CRM. 2018)
The above model defines the essential elements related to customer relation management.
Aligning system with goal and strategy, consolidating the customer data, customer segmentation,
personalise customer interaction and re-evaluate and recalibrate CRM strategy
P3) Small business can develop transnationally and benefits and drawbacks
Transactional sales can be considered as a very important process which is being used by
the management of Austin Fraser to identify its profit as well as revenue level in the market. It
can also be regarded as the sales done by organisation of its goods and services outside the
countries on the basis of the demand which has arises in the marketplace. In addition to this, it is
considered as the duty of Austin Fraser management to implement new tools and technologies in

the company as per the situation going on in the market as through this, they will be able to earn
more amounts of profits and make a better brand image at marketplace as well. If a company is
thinking to settle themselves up in another country then it will be beneficial for them in all
manners as they will be able to grab more market share and earn more revenue as well.
Transactional operations is a consider as a process that includes development of the
business globally by making healthy relation among headquarters and international operations.
With the help of this process, small business can easily assess the current position at market.
Along with this, it also help business organization to take effective decision that is related with
the overall performance of the company at market place. In context of this, small business
organization can easily handle the current market state of the company at global level. The main
aim advantage of this process for small business organization is that it bring modifications within
production process that may contribute in inviting large large number of customers.
In relation to this issue, it can be ascertained that the company is required to put more of
their efforts in taking advantage of the opportunities which are coming in their way to settle their
business at international level. It is also required to be assured that the organisation Austin Fraser
should give their services to their clients at an affordable price as it will be very much effective
in developing their services at an effective manner and thus expanding in a successful manner as
well. But expanding the business in the international market is not a cakewalk (Durst and
Wilhelm, 2012). There are various kinds of benefits as well as drawbacks attached with it. Few
of them are mentioned as under:
Benefits
Lifestyle- It is believed that in small business organisations, a proper style of working is
being followed by the staff members who are working in the company. It is very effective for the
companies as through this they can gain more amounts of profits as well.
Independence- here, the manager does not focus on expanding the business in the
international market rather they try to get their attention on grabbing the market opportunities
which come in their way so that the business can be run in an effective manner (Hammer, 2015).
Efficiency- It is believed that the small sized companies are having a proper structure
designed and they follow it effectively so as to achieve their aims and objectives and help them
achieve different other milestones as well.

Drawbacks
Lengthy- since every company wants to conduct all of their functions in an effective
manner so for doing this they inculcate various types of innovative as well as creative ideas in
the company but all these processes are time consuming so it is a kind of drawback.
Financial risk- This is one of the most common risk which is being faced by almost all
companies who are expanding themselves in the international market. So, in case of small
companies, they normally have small amount of funds so if they are planning expansion then
they must consider this risk on top.
TASK 3
P4) Annual itemised monthly cash flow forecast showing fixed and variable costs
Sources of Funds
There are various kinds of sources which are giving an opportunity to Austin Fraser for
developing their performance in all the kinds of functions in order to increase their revenue as
well. It is a very effective source as through this, the company is been made stronger. Different
sources of funds are mention below:
Equity finance- In this basically, equity and preference share capital is being traded through
Austin Fraser who are having themselves listed in the stock exchange. It is one of the most
effective method through which company aims to increase their capital for longer period of time.
Bank loan- This is also an external source of finance and in this Austin Fraser is able to get
through all the commercial loans from banks at a particular rate of interest which the company
has to pay on annual basis (Harmon, 2015).
Hire and leader purchase - This method helps in enhance funds from leasing property as well as
equipments to other person. Under this, funds come from the interest and rent.
Budgeting and Forecasting
Forecasting can be defined as a process in which various kinds of predictions are being made
about trends ongoing in future (Jasra and et. al., 2012). Whereas budgeting can be defined as a
process of planning in which how the company will spend all of its money in an effective
manner. There are various kinds of tools which are being utilized by Austin Fraser to do their
forecasting and budgeting. These are as follows:

Calculate moving average- It is supportive in preference of existing customers according to
current trends which are present at market place.
Time series data- In addition to this, administration of Austin Fraser Company gives an
importance related to recognition of time period which will be require to finish particular project.
P5) Break- even analysis
Break- even analysis means to estimation of point in which costs are proportionate to
pay. It is a monetary instrument which is used by the organizations to perceive the benefits they
have earned in a specific timeframe. It is an indispensable strategy used through Austin Fraser
organization to choose advantage. It is additionally helpful in distinguishing the deals done by
them amid the month to month term or money related term (Jenkins and et. al.,2013). This is
considered as that point under which an organization accomplishes the no benefit and no
misfortune circumstance. With the help of make back the initial investment examination, firm
can develop better methodologies to enhance to build their business so their objectives and goals
will be accomplished. This will likewise help them in winning more measure of benefit and
accomplish higher position in advertise too (Jenkins and et. al., 2013).

There are different sorts of methods which is utilized by Austin Fraser in order to distribute
assets to various offices with the goal that work can be proficient in a proper way. Some of them
are being talked about beneath:
Critical path analysis- This is an extremely successful technique which is utilized by the
chiefs of Austin Fraser as through this they will have the capacity to decide different routes
through which venture can be expert in a viable way and with time also. Here, by and large
longest way is being picked with the goal that they can get more opportunity to complete their
business activities.
(Source: Break even analysis, 2016)
Notwithstanding the organization, there are a couple of conditions which is required to be trailed
by organizations in order to think about their business which they have done amid a specific
timeframe (Schaper and et. al., 2014). Under this, Break-even investigation is a fundamental part
which assumes a compelling part in lessening the measure of wastage and accomplish
advancement too.
For an example- Variable cost is Rs. 8 per unit where as fixed cost is Rs. 16000 and
selling cost is Rs. 10 per unit. The BEP is given below as above:
BEP= Fixed cost/construction margin per unit or product= 16000/(10-8)= 8000.
P6) Financial statements for an organisation
Diverse money related explanations are set up by each firm keeping in mind the end goal
to control the costs and to keep up benefits of organization. Director do translation of money
related explanations for gather data about the costs and salary of firm (Durst and Wilhelm,
2012). This help in plan spending plans for different offices and guarantee powerful assignment

of assets. Fundamental money related proclamations get ready by Austin Fraser is given under
after focuses:
Balance sheet: This is one of the major money related explanation of firm. This show all
advantages and liabilities of an undertaking. Financial specialists investigate accounting report of
firm to take any choice related with venture.
Balance Sheet
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
Profit and loss account: As the name suggests, this money related archive of
organization demonstrate all benefits and loss of element occur amid an era. This likewise
feature the superfluous territories of costs and urge director to distinguish the approaches to

finish business exercises with least cost. This improves productivity of business exercises and
increment benefits of substance.
Trading and Profit and 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 activities: This monetary proclamation is set up by Austin Fraser, this
demonstrate the inflow and surge of assets from an undertaking in a particular day and age. This
expansion the adequacy of administration of money related assets and bolster substance in use all
assets in right way. This announcement comprises the distinctions happen in monetary record.
Fundamentally investors and leasers stay intrigued by this sort of monetary report.
Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 25000 32250 31750 29750 26750
Budgeted cash receipts 12400 1600 1100 1000 15000