John & Jenny E-commerce Service Business Report Analysis

This report provides a comprehensive analysis of managing and running a small e-commerce business, specifically focusing on John & Jenny E-commerce Service. It begins by defining key terms such as resources and business objectives, followed by an in-depth exploration of customer relationship management, including its main areas, advantages, and disadvantages. The report also delves into transnational development, outlining its benefits, drawbacks, and a SWOT analysis. Furthermore, it covers crucial financial aspects such as cash flow forecasting, break-even analysis, and the interpretation of key financial statements. Finally, the report examines key legislation and regulations impacting small businesses, offering a holistic view of the challenges and opportunities in this sector.

Managing and Running a
Small Business

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Define the term resources and business objective..................................................................1
TASK 2............................................................................................................................................3
P2 Define the term customer relationship management. Explain the main areas within the
customer resources management and provide advantage and disadvantage of each area...........3
P3 Define the transnational development. What are the benefits and Drawbacks of business
developing transnationally? Then create a SWOT analysis on the idea developing
transnationally..............................................................................................................................4
TASK3.............................................................................................................................................6
P4 An annual itemised monthly cash flow forecast showing fixed and variable costs...............6
P5 Ways of Break-Even Analysis applied on an organisational situation...................................8
P6 Interpretation on key financial statements of a company for contribution in successful
management...............................................................................................................................10
Task 4.............................................................................................................................................11
P7 Key legislation & regulations that have major implications on small businesses................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global environmental is modifying rapidly in which there are several changes in performing
of business practices that take place. Moreover, it also have affects the operation of smaller scale
business as well as assists them to develop a emerging business. In addition to this the small
scale firms may be considered as the entity that is conducting their operations of business
through using limited resources as well as performing into environment of business for
development as well as success (Agbo, 2020). As per the scenario, the undertaken company is
John & Jenny E-commerce Service which is known to be one of leading small firm within
United Kingdom. It performs their practices into e-commerce industry. The topic which are
going to be discussed in this report are description about the aspect resources as well as business
objectives, consumer relations management along with the key areas into consumers resource
management and also its benefits and drawbacks of every area. Moreover, transnational
development in addition to their advantages and disadvantages and SWOT analysis are also
explained. Cash flow and break-even analysis are computed, interpretation related to key
financial statement and Key legislation & regulations that have major implications on small
businesses are also discussed in this report.
TASK 1
P1 Define the term resources and business objective.
There are various main resources that are essential for business entity for performing within
the environment of business as well as would drives towards successful attainment of
organisation goals. Moreover, it may also observe that there are several functions that have to be
conducted through entity as well as are crucial for them. In addition to this, it may directly attain
through utilisation of business resources as this would obtain easer for smaller scale firm for
arranging them for meeting their targets effectively and efficiently (Amir and et. al., 2020).
Therefore, some resources are discussed below that are vital for John & Jenny E-commerce
Service to their goals as well as maintaining productivity into function so that much satisfaction
may be derived off.
 Competent human resources: Human resources are undertaken as essential for entity as
they aids into performance of differentiated functions. Moreover, it is so competent
human resources would drives towards expertise into task as well as would develop
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practices for attaining their goals into limited time period. In addition to this, it may be
obtained through John & Jenny E-commerce Service with assistance of effectual system
of recruitment within entity, it would provide into administrative work with aids of
competent employees into firms. Also, this may also utilise appropriate training and
development that would provide entity for managing proficient staff in firm as well as
would assists it in maintaining productivity. John & Jenny E-commerce Service may
obtain advantages of minimising wastage that is incurred due to unprofessional as well as
untrained staff within entity.
 Monetary resources: This is essential for firm for managing their monetary resources as
they perform as backbone of entity into current times. Moreover, it is so monetary
resources assists to different practices (Antcliff, Lupton and Atkinson, 2020). Therefore,
arrangement of funds is crucial for firm in which this may conduct function in effective
as well as perform towards the attainment of business objectives. In respect of John &
Jenny E-commerce Service, this is also vital for firm to obtain funds in respect to
accomplish the various practices into business as well as associate them towards
attainment of their functional objectives. Also, they many also utilised several tools such
as bank loans and grants from various commercial institutes to finance.
 Flexibility: It is directly associated with functions of entity as flexibility within entity
that would assists in determining the upcoming opportunities as well as change
organisational structures based upon the modification into work situations associated with
dynamic business atmosphere. It may be observed that there it is directly proportionate to
wards objectives of firm within present business atmospheres as in case company is
flexible as per changes than this may favourably utilise the modification into business
surroundings as well as being creative. John & Jenny E-commerce Service may
optimistically apply respective aspects in which they may manage its practices and
utilised several features for management of its ventures as well as attainment of
objectives and targets effectively and efficiently.
 Control: It is vital aspects that have to be kept into mind at the time of performing within
entity or initiating ventures. It is so this assists entity in determining several concepts as
well as arrangement of funds (Chikweche and Bressan, 2020). Moreover, the John &
Jenny E-commerce Service’s management have to decided that what are the practices that
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they desires into firm associated with span of control. In addition to this, it is associated
to circumstances in which firm desires to retain their control or what they provide them to
others. Such as in case John & Jenny E-commerce Service issues share capital for gaining
funds thereafter it have to lose control upon workings, but if respective firm desires to be
so that it may able to utilised methods such as commercial bank as well as issue of
debentures in which ownership would remain into the hand of entity.
Therefore, these are the few resources that may be utilised through John & Jenny E-
commerce Service firm for attaining their objectives so that they may manage their practices and
operation into specific path through reducing adverse affects upon firm as well as provides
smoother functions into entity.
TASK 2
P2 Define the term customer relationship management. Explain the main areas within the
customer resources management and provide advantage and disadvantage of each area.
Consumer relationship management is considered as the approach that is utilised through
entity for managing their consumers through developing as well as maintaining relations among
firms and clients. Moreover, it would assists firm in accomplishing the desires of audiences as
well as assisting them for meeting its requirements through using product of services provided
through company (Dijkstravan, Beukering and Brouwer, 2021). In addition to this, it is also
advantageous for firm in retaining consumers for long durations with business. In respect of John
& Jenny E-commerce Service, they may also utilised particular functions in which they may
develop relationship with clients through using several methods as well as obtain benefits in
successful way within competitive business environment.
Consumer intimacy: It is considered as the system of customer relationship management
which depends upon feedback as well as review system in which manages into firm try to
develop relationship with their consumers and entity with assistance of some queries as well as
feedbacks. It also assists them in attaining more satisfaction. In addition to this, it is one of the
effectual system that could be utilise through John & Jenny E-commerce Service. It is so as this
assists firm in managing several functions and resolve consumers issues through developing
services provides through entity within targeted marketplace (Kalyani, 2020). In addition to this,
it also aids in gaining effective positions within market as well as attaining goals effectively and
efficiently.
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 Benefits: It is helpful in resolving the problems of consumers that would enhance the
brand reputation of entity into their targeted marketplace.
 Drawbacks: The key issues with respective system is that few times consumers are not
much satisfied with solutions that are developed by considering their feedbacks which
may affects adversely upon relationship with clients.
Consumer portfolio analysis: This is considered as those tools that are helpful for entity for
managing consumer relationship as well as utilise this for longer durations. Moreover, within
respective system as systematic record may be developed in which firm may records the habits
of their potential consumers for determining its behaviours associated with offerings that they
buy in frequent way to firm (Kijanka and Lipska, 2020). In respect to John & Jenny E-commerce
Service, respective function would assists firm in determining information associated to its
regular clients with assistance of which they may manage their growth as well as would
maximise the functional productivity at continuous manner.
 Benefits: With utilisation of respective function, John & Jenny E-commerce Service
would able to determine the buying behaviours of consumers so that it may target the
clients in simpler manner as well as manage productivity into its work.
 Drawbacks: Through continuous consumption of similar products the marginal utility
leads from the offerings and may damage the demand and drives towards modification
into behaviours that is not covered into this function.
Therefore, from the above it has been determined that firm is performing into e-commerce
industry so they have to develop appropriate system associated with customer relationship
management. Also, this may be utilise consumer portfolio system for establishing appropriate
consumer relationship management system as this aids firm in determining of behaviours.
P3 Define the transnational development. What are the benefits and Drawbacks of business
developing transnationally? Then create a SWOT analysis on the idea developing
transnationally.
Transnational is considered as eth method that is utilised through entity for going beyond
the nation’s boundary for performing their functions associated with sale of offerings provide by
them (Liguori and Pittz, 2020). Moreover, it is essential for entity such as John & Jenny E-
commerce Service as by using respective concept in order to enhance the market share and
developing international brand reputation of firm. In addition to this, it would also helpful in
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maximising opportunity for organisation in which they may perform their practices effectively
and efficiently. Also, there are several benefits and drawbacks of this which would helpful of
them to understand this function effectively. Some of them are discussed below in respect of
John & Jenny E-commerce Service firm:
Benefits:
 It would assist John & Jenny E-commerce Service in determining several opportunities of
growth in which entity may enhance their profit through conducting their practices at
international level.
 It would also helpful for entity in determining several functions associated with
attainment of their goals that may assists into future through enhancement of productive
measures through utilising new as well as international technology (MADUEKE, Okoro
and BABARINDE, 2020).
 It would aids entity to identify new as well as international techniques associated with
their services in which they may develops the quality of their offerings as well as also
assists person to determine advanced technology.
 Also, one of the key benefits of respective function to entity is that this would aids in
recruiting worldwide staff who are much competent than others as well as may helpful in
conducting their operations with great productivity.
Drawbacks:
 This would enhance burden upon entity’s managers as they should perform much due to
challenges associated with globalisation of products.
 It would also have affects upon financial ability as well as ownership within entity as this
is a small scale firm that have to be conducted their practices with limited resources as
well as there is non-availability of funds as well. In addition to this, it may have adverse
impacts upon firms as enhancing business to international level needs larges funds
investment.
 Market reimbursement is not possible for entity in modifying atmosphere as well as this
tactics may cost higher in case firm utilise it into challenging atmosphere.
SWOT Analysis
This is undertaken as framework that is utilised through entity for determining the
internal factors that have affects upon firm. Moreover, this incorporates determination of
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strengths, weaknesses, opportunities and threats. In addition to this, it would aids in managing
several functions as well as drives entity into profitable way (Mazzarol and Reboud, 2020). In
respect of John & Jenny E-commerce Service firm, SWOT analysis is discussed below:
Strengths Weaknesses
 The key strength of those tools is that it
facilitates several opportunities to
entity in which they may enhance
profits for upcoming periods.
 Moreover, one of the key strength of
respective function is that this assists in
grabbing the attention of investors
within firms as continuous changes in
business would drives towards growth
of their several functions.
 The essential weakness of this
characteristic to organisation is that it
require massive amount of capital that's
not possible to invested with the aid of
company on numerous function.
 For the usage of this characteristic it's
also important for employer to better
talent employee who can perform at
worldwide degree. that is act as
weaknesses for organisation due to the
fact it's far imposable for enterprise to
higher gifted worker for small scale.
Opportunities Threats
 There are several opportunities with
assistance of this tool for improving in
execution so that entity may utilised
this for international development of
business in attaining their objectives.
 One of the key threat of firm is
enhancing competition as through
adapting respective strategies as there
are several practices that may have
affects upon organisational resources.
TASK3
P4 An annual itemised monthly cash flow forecast showing fixed and variable costs.
Each business as well as firm needs cash flows for evaluating and determining the
monetary position of company. Moreover, this is essential for company to have understandings
as well as competent funds and audit team so that this is simple for preparing a cash flow
statement (Prohl and Kleinaltenkamp, 2020). In addition to this, this is considered as the net
amount of cash that flows internally and externally in business. Along with this, it is categorised
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into three that are operating, investing and financing. Operating cash flows are that aspects that
includes cash which are produced by firm essential business practices. Investing are those
aspects that incorporates whole purchases of assets or investment into firm. Financing are that
aspects in which cash flows that compromises of overall proceeds obtained from issuing debt as
well as profit (Šebestová, 2020). Additionally, cash flow statements ascertain as well as evaluate
how appropriately entity manages funds as well as debts. This also complements the income
statement and balance sheet. Also, there are several methods of computing cash flow that are
indirect and direct method. This based upon company for adapting much effective options.
Furthermore, there are several kinds of metrics that are utilised into cash flow like net present
value, IRR, liquidity and many others.
Mainly, the business operators as well as shareholders are concern about cash flow
statement as this provides detail descriptions about finances.
1st month 2nd month 3rd month
Cash in flow
- Project 1 1,250 3,750 -
- Project 2 1,250 3,750 -
- Project 3 - 1,250 3,750
- Project 4 - 1,250 3,750
Total cash in flow 2,500 10,000 7,500
Cash out flow
- Rent 1,000 1,000 1,000
- Furniture 500 - -
- Marketing 500 500 500
- Legal 200 200 200
- Materials - 1,000 1,000
- Subcontractors 2,000 2,000 *2,000
- Salary 2,000 2,000 2,000
- Other sundry 500 500 *500
Total cash out flow 6,700 7,200 4,700/*7,200
Net cash flow
(In flow – out flow)
-4,200 2,800 2,800/*300
Opening balance 10,000 5,800 8,600
Closing balance 5,800 8,600 11,400/*8,900
Interpretation: As per the above mentioned table, this has been observed that into initial
month the cash flow is 9300 as much profitability was gained as well as lesser cash was provided
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whereas into second month flow of cash are recorded -700 as due to much cash was utilised and
govern. Therefore, respective cash flow statement is considered as integral part of accounting
(Sukawati and et. al., 2020).
P5 Ways of Break-Even Analysis applied on an organisational situation.
Break even analysis is considered as the tools that is utilised through entity in order to
determine various stages that assists in computing profitability. Moreover, this has been also
described as the framework for determining present circumstances of business. In addition to
this, it incorporates several and aids in finding stages associated with no losses and no game at
break even (Tidd and Bessant, 2020). Additionally, this is when overall costs or even to whole
revenues.
Along with this, there are various benefits and utilises for business entity of break even points.
Few of them are discussed below:
 This assists in evaluating profitability as well as losses at effective level of sector and
sales that an entity would has to face.
 Moreover, this assists firm for understanding in advance the impact of changes into their
sales price would has upon their profitability. Also, with assistance of break even analysis
firm may simple modify its price of sales for gaining more profitability.
 The break even analysis also assists entity to effectually acknowledge the relations
among variable as well as fixed cost of firm.
 In addition to this, break even analysis also assists firm in understanding in advance the
impact of costs and effectiveness modifications within firm upon profit of entity.
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For John & Jenny, an IT business specializing in e-commerce we will have the following
analysis:
 This analysis is for the first 2 months
 They expect 2 projects which will generate £5,000 each
 Fixed costs:
Rent - £1,000 per month X 2 = £2,000
Furniture - £500 just in the first month
Marketing - £500 per month X 2 = £1,000
Legal and accounting costs - £200 per month X 2 = £400
Salary of £1,000 each per month X 2 X 2 = £4,000
Total fixed costs: £7,900
 Variable costs:
Project materials (Domain, hosting, & software) – £500 per project X 2 month X
2 projects = £2,000
Sub-contracted labor (other E-commerce engineers) - £2,000 per month X 2 =
£4,000
Other sundry costs of £500 per month X 2 = £1,000
Total variable costs: £7,000
2 projects/month X 2 = 4 projects
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4 projects X £5,000 = £20,000 TOTAL REVENUE
Fixed costs: £7,900
Variable costs: £7,000
Total revenues - Total variable costs = £20,000 - £7,000 = £13,000
Total contribution - Fixed costs for 2 months = £13,000 - £7,900 = £5,100
Total variable costs / Total number of units = £7,000 / 4 = £1,750
Selling price per unit – variable price per unit = £5,000 - £1,750 = £3,250
Total fixed costs / Contribution per unit = £7,900 / £3,250 = 2.43 projects
P6 Interpretation on key financial statements of a company for contribution in successful
management.
For performing the effective management, the key financial statements are needed to be
analysed in effective way. In case of John & Jenny E-commerce Service firm that deal into e-
commerce sector this is vital for interpretations of the main financial statements. Moreover, with
assistance of this, firm would efficiently formulate appropriate decision in respect of funding.
Essentially, John & Jenny E-commerce Service firm is performing as online retailer in which
monetary transactions undertakes both segments such as offline as well as online. So, this is
stated that it is essential for finance manager for seeking among various aspects such as
monetary reports so that transactions can be done in smoother way.
In addition to this, John & Jenny E-commerce Service firm already have effective finance
department which performs financial transactions with assistance of offline as well as online
both channels and records them into monetary books. In addition to this, through undertaking
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Total contribution for 2 months
Profit
Variable cost per unit