Analysis of Bangkok Thai Restaurant: Small Business Management Report

This report provides a comprehensive analysis of managing and running a small business, using Bangkok Thai Restaurant as a case study. It begins by outlining key considerations for resource allocation and planning, crucial for small business success. The report then delves into customer relationship management (CRM) processes, evaluating various strategies to enhance customer satisfaction and sales. Furthermore, it explores transnational business development, discussing benefits, drawbacks, and strategies for expansion. A significant portion of the report is dedicated to financial analysis, including a detailed itemized monthly cash flow forecast, break-even analysis, and interpretation of key financial statements. The report also examines relevant legislation and regulations impacting the business. The analysis covers areas such as current assets, liabilities, and profitability ratios, providing valuable insights into the restaurant's financial performance and management strategies. This report aims to provide a clear understanding of the challenges and opportunities in small business management within the context of a restaurant.

MANAGING AND RUNNING
A
SMALL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. The main considerations a small or social enterprise needs to address when planning and
allocating resources to achieve....................................................................................................1
TASK 2............................................................................................................................................2
P.2. Explain and evaluate different processes of customer relationship management for small
business.......................................................................................................................................2
P.3. Explain how a small business can develop transnationally and determine the benefits and
drawbacks....................................................................................................................................3
TASK 3............................................................................................................................................4
P.4. Produce an annual itemised monthly cash flow forecast showing fixed variable costs set
against income for Bangkok Thai Restaurant.............................................................................4
P.5. Explain how break -even analysis could be applied to Bangkok Thai Restaurant
organisational situation...............................................................................................................6
P.6. Interpret key financial statements for Bangkok Thai Restaurant in relation to how they
contribute to the successful management of the organisation.....................................................7
TASK 4............................................................................................................................................9
P.7. Discuss key legislation and regulations that have implications on Bangkok Thai
Restaurant business.....................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
In this documentation, this study defines about main considerations of Bangkok Thai
Restaurant enterprise needs to address to planning and allocating resources to the business in
order to accomplishment of organisational goals and objectives in more relevant format. Apart
from it, these assignments also refer to some effective tech of customer relationship management
in the restaurant by which its professionals could increase the sales of its Thai food products and
services in more effective manner. Moreover, this investigation also defines about key legislation
and regulations that have implications on Bangkok Thai Restaurant enterprise effectively.
TASK 1
P.1. The main considerations a small or social enterprise needs to address when planning and
allocating resources to achieve
In case of small business management, in initial time, varied of organisational factors are
needed to be considered by an entrepreneur in order to make appropriate allocation of each
resources in the organisation in effective manner in order to achieve proper success in the
industry sufficiently (Wheelwright, 2010). There are some major considerations, which is needed
to be considered by business owner, when proper planning and allocation of resources at the
workplace in effective manner.
Know your scope: In terms of establishment of Bangkok Thai Restaurant, the business
professionals need to proper analyse of their business scope in the industry in effective ways.
This is necessary terms for business owner to recognise considerations of scope in the industry
and this assists business owner to make allocation of relevant resources according to business
needs in the market in effective manner. They need to prepare proper projection of their business
in order to planning of each step of business activities in relevant ways in respect to proper
management of their business in the industry and get appropriate success effectively.
Identification of resources: After proper determination of proper scope in the industry,
the business owner need to recognise of appropriate resources in the company in relevant form
so that efficient development can be examined in relevant form. Moreover, it has been founded
that, in London, there are huge scope of food industry in the country and several kinds of small
food organisations are running effectively (Hess, 2010). So in case of Thai food restaurant, there
are variety of several unique testy Thai foods available here, which can be served by the
company in effective form in order to make the business more efficient in the industry. They
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must have proper resources like, proper menu card of Thai foods, proper catering and waters
facilities, proper finance management and billing system, sitting arrangement and attractive
restaurant interior designing etc. all resources must be there in proper format.
Product and services description: In case of Bangkok Thai Restaurant in London, there
are several kinds of Thai and new flavoured foods' product and services must be give by staff of
the organisation as per demand of their customers in the unique ways which increase the
satisfaction level of the business in more effective manner (Edwards, 2011).
There are some list of Thai foods products and services as following:
 Thai Noodle dishes are unique in the country and they are made in unique Thai style in
the county, which involves some species and ingredients such as Garlic Chilli or Basil.
 All kinds of Thai Soup must be added in their menus such as Thai curry and Soup in all
flavour which must be served to their customer in family style in the restaurant
effectively.
 Thai noodles is also well- known foods in the county and according to analysis, it has
been seen that, there are high rate of consumption of Thai noodles in London, which must
be added in out restaurant Menu products list in order to increment in sales (Drucker,
2012).
 Bangkok Thai Restaurant is well-known for its fast food services in the restaurant in
effective ways, so that we need to make more improvement in our food serving style.
TASK 2
P.2. Explain and evaluate different processes of customer relationship management for small
business
Multiple Variety of ways presented here by which Bangkok Thai Restaurant can make
improvement in its customer relationship management approach in effective ways so that
efficient development can be gained in more relevant form. They have some areas by which
efficient development can be gained in more relevant form. Effective customer relationship
increase the customer satisfaction level and also raise the sales of the business product and
services in more relevant form. This is not an application of technology, this is the ways by
which business owner could identify needs and behaviour in relevant form so that appropriate
initiatives could be taken by the business owner in order to furnish effective services.
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Front office contact: In front areas of Bangkok Thai Restaurant, they must have proper
front office contact facilities at the restaurant in respect to get connected with the all customers
and make effective communication with them. The front office staff must furnish effective phone
calls, e-mail, instant messages and fact to face communication in context of furnishing of
effective services to them in relevant form.
Back office operations: The back office operational is also necessary part of CRM in
Bangkok Thai Restaurant (Gilmore, 2011). They operational staff of the restaurant must need to
furnish effective restaurant services such as, finance and billing services, marketing and
advertising services which can increase the level of relationship with their loyal customer in the
market in relevant form.
Special offering and voucher services: This is a part of hospitality industry, and its
owner need to make sure that, they provide some special and specific offering services at the
workplace in effective manner in order to increase CRM in the business in more relevant form.
People mostly in London, prefer to eating outside from their house in some special occasion, so
in this case, the business owner need to furnish effective voucher in that tome in order to
increment in their relationship and satisfaction level of their customers in the industry
effectively.
P.3. Explain how a small business can develop transnationally and determine the benefits and
drawbacks
Varied of ways presented here by which Bangkok Thai Restaurant can increase their
transnational business in more relevant form so that effective development can be gained in
effective form. In case of small business, they need to make use of integrated strategies in order
to enhance their branding product and services at broad level in the industry in efficient form.
Transnationally strategy includes some effective operational level efforts which is as following:
Operating in different world markets: This is also one of the major strategy by which
Bangkok Thai Restaurant might enhance their business operation at various different markets
around the world in more effective manner so that effective development can be gained in
efficient form (Wapshott and Mallett, 2015). They need to make implementation of value-added
services and activities at abroad level in respect to make promotion of their Thai Unique food
products and services in more effective form. In can increase their vision at global level and
assist them to get success at global scale.
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Branding: Bangkok Thai Restaurant need to make use of branding strategy in order to
sustain at international foods' industry effectively. They require utilising of their brand at global
level to promote their Thai specialise products and services across the world audience in
effective ways (Sultan, 2010). They need to make utilisation of development of their marketing
strategy at global level by using digital marketing service, which can easily promote Bangkok
Thai Restaurant's product and services at global level. They can promote their services at global
level by using internet tools and techniques. This activity can increase the sales of the business
in the industry in effective form.
Benefits of transnationally for Bangkok Thai Restaurant:
 The business can enhance their brand equity at global level in the industry and also
increase the sales of the business effectively. Transnationally might also affect the business profitability and productivity in more
efficient manner in order to sustain in the market in efficient form.
Drawbacks of transnationally for Bangkok Thai Restaurant:
 The business owner need to high amount of finance in order to set up their new branch at
global level, so they need to bear more expenses in the business and there is high risk at
international markets (Dugguh, 2015).
 The restaurant could lose their investment and also there is high certainty of losses in the
business.
 There is high range of competition at global level, so the company need to face it in
effective form and give relevant competition to big food organisation in the industry.
TASK 3
P.4. Produce an annual itemised monthly cash flow forecast showing fixed variable costs set
against income for Bangkok Thai Restaurant
From the above analysis, it has been seen that, the restaurant, there are some effective
services in which they need to make use of some areas by which efficient development can be
gained in relevant form. In case of Bangkok Thai Restaurant, they have different kinds of unique
Thai dishes and unique food products in order to increase their sales in the market. The business
is growing rapidly in the market and also generating more profitability month by months in the
market effectively. Apart from it, they have different types of Thai dishes and food products and
services which generate more profitability in the industry in more relevant form. They have some
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areas by which efficient development can be gained in effective form so that efficient
development can be gained in efficient manner (Christensen and Euchner, 2011).
Particul
ars Jan Feb
Mar
ch
Apr
il May June
July august Sept Oct Nov
D
e
c
Cash
inflows
Opening
cash
inflow 6000 5900 8920
410
2 2339 3442 4302 5000 4200 3200
203
0 1730
Sales
revenue 5000 5200 3000
306
0 3121 3184 4100 4000 3300 2530
253
0 2530
Other
income 2000 2000 2000
200
0 2000 2000 2000 2000 2000 2000
200
0 2000
Total
cash
inflows 13000 13100 8000
629
6
7460.
28
8383.
62 9100 8300 7700 7030
713
0 6630
Cash
outflows
Material 3900 780 450 459
468.1
8
477.5
44 500 700 1000 1200
150
0 1600
Salaries
of staff 1200 1200 1200
120
0 1200 1200 1200 1200 1200 1200
120
0 1200
Other
expense
s 1000 1200 1248
129
8 1350 1404 1400 1200 1300 1600
170
0 1800
Adminis
tration
expense
s 1000 1000 1000
100
0 1000 1000 1000 1000 1000 1000
100
0 1000
Total
cash
outflow
s 7100 4180 3898
395
6.92
4018.
02
4081.
37 4100 4100 4500 5000
540
0 5600
Cash
deficit /
surplus
or
closing
cash
balance 5900 8920 4102
233
9 3442 4302 5000 4200 3200 2030
173
0 1030
Interpretation:
From the above table which is showing monthly customised cash flow statements for
whole year from January to December 2016. For this the fixed expensed or cost is salary paid to
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staff and administration expense while variable is material and other expense. So closing balance
of one month will be opening balance of the other one for the whole year 2016
There are varied types of expenses presented here which is on gross wages, supplies,
advertising, rent, utilities and loan repayments etc. all these expense are increasing month by
month and the organisation need to use of effective management strategy at the workplace in
respect to sustain in the market in more relevant form. Apart from it, the owner of the restaurant
need to give specify prices of each Thai dishes and foods products in the organisation in order to
compute the prices of each services and production in the restaurant at regular basis, which can
increase the sales of the business in more relevant form. The management department of small
business require to manage their all works in efficient form so that effective development can be
gained in more effective manner, so that effective development can be gained in relevant form of
the services in sufficient manner.
P.5. Explain how break-even analysis could be applied to Bangkok Thai Restaurant
organisational situation
In case of start-up a business, they need to make utilisation of financial investment in the
business environment in effective manner in order to execute the business activities in sufficient
form. Moreover, in case of Bangkok Thai Restaurant, they need to sales their variety of food
dishes in the market in order to earn profitability effectively (Adzic, 2011).
Break-even point: The break-even point is the point at where Bangkok Thai Restaurant
can get the situation at which, the business owner could cover the all fixed and expenses in the
business in more relevant form. At this break-event point of the restaurant, they business can
generate more revenue from the market at profitable level and apart from it, all expenses and
costs of the food production and service provision do not increase. At this point, the sales volume
of the restaurant does not diminish within the business environment effectively. The break-even
point could be computed in the business environment effectively by dividing the firm's fixed
expenses by its margin. The margin of the restaurant could be ascertained by subtracting the
business's total variable disbursal from its total net sale amount of the business in relevant form.
Moreover, over the time period of month, your restaurant business will need to have a number of
fixed costing.
The business professionals can ascertain the fixed costing of the restaurant business in the
company, there are some fixed costs such as insurance, advertising, mortgage, utility bills,
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payroll and costing etc. they need to add all these fixed costing in the analysis. After computing
fixed costs in the business, the firm's professionals need to compute the variable costs of
Bangkok Thai Restaurant business at the workplace effectively (Jagoda, Maheshwari and
Lonseth, 2010). There are varied to variable costs are associated with Thai food products and
services in the restaurant. These some of essential variable costs are ingredients expenses, paper
products and any other consumable products which is needed to use in services provision. The
business owner need to make average sales per month and divide costs of those sales by the
gross income of the sales and the business professionals get variable costing rate in the business
effectively. Then organisational professional need to subtract variable cost from 1. And then
divide fixed cost by the result. This is the final value of breakeven point in the business
effectively,
P.6. Interpret key financial statements for Bangkok Thai Restaurant in relation to how they
contribute to the successful management of the organisation
A financial statement is most necessary part for each organisation in terms about to know
about to their financial growth in the industry in more effective form. In case of Bangkok Thai
Restaurant, the owner of the restaurant require to regular maintain the financial statements of the
company of this accounting system by which they can determine the actual financial progress of
the company in give relevant time in more effective form (Mole, 2011). Financial information of
the restaurant must be prepared and analysed by its professionals at regular basis in the
organisation so that effective management could be implemented in the company in relevant
form. In several financial statements of the company, such as inventory reports and income
statements etc. the organisational professionals need to make spot of inventory level in the
restaurant effectively.
There are various foods products and raw materials available in the restaurant which is
needed to be managed in the firm in very effective manner in terms of avoiding it from getting
wastage in the business effectively. They must have a proper inventory management system by
which organisational professional could manage all restaurant foods products in efficient form.
Apart from it, financial statements also refer to the income statements of the business in relevant
form so that efficient development can be examined and profit margin can be identified fairly in
the business in sufficient form. If the restaurant owner does not properly manage costing in the
restaurant, then profit margin of business can easily get downed in the company effectively.
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Income statements of the restaurant, manager have alternative options to play with variable costs
such as food and labour costing in the company (Gharajedaghi, 2011). An income statement
defines about profitability of the restaurant in predetermined period. It also reviews about to the
cash flows statements of the company in the industry in relevant form, so its profitability and
cash fluctuation might be identified by its professionals in the business in restaurant in more
relevant form. With the assistance of financial statements, Bangkok Thai Restaurant's
professional can analyse its costing and effectively manager all departments' performance in
unique format which gives more profitability to the business in relevant form.
Liquidity ratio
analysis Bangkok Thai Restaurant 2016 2015
Current assets 24042 7701
Current liabilities 6953 7417
Inventory 4523 3673
Prepaid expenses
Quick assets 19519 4028
Current ratio
Current assets / current
liabilities 3.45779 1.03829
Quick ratio
Current assets - (stock +
prepaid expenses) 2.80728 0.54308
Interpretation:
For the year 2016 current assets was £24042 while for 2015 it was £7701 on the other
hand current liabilities was 6953 and 7417 for 2016 and 2015 respectively. So the current ratio
will be 3.45 and 1.03 for 2016 and 2015 while quick ratio will be 2.80 and 0.54 for 2016 and
2015.
Particulars Formula
Profitability ratio analysis
2016 2017
Gross Profit 2500 3000
Net profit 2500 3000
Sales revenue 300 300
Earnings before interest and tax or
operating profit 3000 3000
Capital employed 4000 4000
Net income 5000 5000
Average total assets 5000 5000
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GP ratio Gross profit / sales * 100 833% 1000%
NP ratio Net profit / sales * 100 833% 1000%
Return on capital employed EBIT / capital employed 0.75 0.75
Return on assets Net income / average total assets 1 1
From the above profitability ratio it could be determined that restaurant is increasing their
profits in year 2017 as compared to 2016 which is to 2500 to 3000 respectively.
TASK 4
P.7. Discuss key legislation and regulations that have implications on Bangkok Thai Restaurant
business
In case of the UK government, they furnish various kinds of foods related rules and
regulations in order to sustain in the market in more relevant form. In terms of Bangkok Thai
Restaurant, they need to make implementation of all these legislative rules and regulations while
operating their business activities in the market in more relevant form. There are varieties of
legal legislation presented here which must be followed by Bangkok Thai Restaurant, in respect
to execution of their each activities in the market in more relevant form.
Healthcare act 2012: According to this act in the country, all restaurant business must
follow the food standard of the business in the industry in relevant manner. The restaurant owner
need to ensure that, all the Thai food products and services providing by them, must be in
appropriate standard level (Weinberg and Pehlivan, 2011). They need to make use of some areas
by which efficient development can be examined in efficient form. This act defines that, all
material provided by the restaurant to its customers must be in proper quality and also making
positive impact on customer health in the business in relevant form. Bangkok Thai Restaurant
must follow the standard of this act, furnishing Thai food services as per this act effectively.
Data protection Act 1998: As per this act, the UK governments want to protect the
essential information of each client at the workplace and do not lick without permission of
customer about to their data. Each customer has particular personal data and which must be in
privacy in an organisation. In case of Bangkok Thai Restaurant business, its professionals need
to ensure that, all the data related to its clients and customers must be secure towards the
company and do not lick by any employees in the restaurant. It increases the customer
satisfaction level in the firm as well.
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Health and safety at work act 1974: According to this act, Bangkok Thai Restaurant
professionals need to ensure that, all employees in the restaurant in working safely in the
organisation in effective form (Crane and Matten, 2016). They should be provided relevant
safety tools and techniques by which they can protect themselves in the business in more
relevant manner. This legislative standards define that, all employees in the restaurant ought to
be safely working and in case of emergency, they should be provided appropriate remedies by
the organisation in appropriate format.
CONCLUSION
From the above analysis, it is concluded that, varied of elements is needed to manage a
small restaurant in the country effectively. This assignment concludes about some essential
consideration which needs to address by organisational professional while planning and
allocating resources to accomplishment of business objectives in relevant form. Moreover, it is
also concluded that, Bangkok Thai Restaurant business manager need to prepare monthly cash
flow forecasting in the business in relevant form so that effective management of the restaurant
activities and operational level might be improved efficiently.
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REFERENCES
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sustainability in the age of globalization. Oxford University Press.
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