Comprehensive Report: Managing and Running Small Businesses (P3)

This report provides a comprehensive analysis of managing and running a small business, focusing on customer relationship management (CRM), internationalization, and transactional sales. It examines the main considerations for small enterprises, including planning, resource allocation, and achieving business objectives. The report details the importance of transactional sales in increasing business profitability, outlining the benefits and drawbacks of this approach. It explores how small businesses can develop transnationally, emphasizing the significance of maintaining good customer relationships and adapting to international environments. The report also delves into the CRM process, highlighting its role in attracting, retaining, and delivering products and services to customers. Furthermore, the report discusses financial risk management for small businesses, addressing potential challenges and strategies for mitigating financial losses. The analysis includes insights into AKS IT Services as a case study, illustrating practical applications of the concepts discussed. This report is valuable for understanding the complexities and strategies involved in the successful management and growth of small businesses in a competitive environment. The report also contains the benefits of transactional sales and drawbacks of transactional sales.

`````
Managing and Running Small Business

P3. Examine how small business can develop transnationally
 Transactional sales – The aim of organisation is to increase the sales by
using selling activities that are important for business. It is suggested to
management to use transactional sales by increase sales in less time. The
management of organisation should uses different activities for the purpose
of delivering best quality of products and services. It is considers as activity
that uses by organisation for making quick sales by increasing number of
customers.
 Internationalisation – The meaning of internationalisation is sales
of products and services across the residential country. In other words, a
process of running and expanding business in competitive business
environment so it can increase business profitability. For running a business
it is important to have all resources and strategies that helps to increase the
business performance. In context to, AKS IT Services. managers are using
different sources and methods to run business across the border. This helps
to increase the revenues and foreign investment by entering in new market.
The benefits of transactional sales in AKS IT Services are as explained:
Independence – A business is uses transactional sales in order to run
business independently without ant intervention, so productivity and
profitability can be increases effectively. The manager of organisation are
running business by using transactional which helps to increase the selling
activity. If they are able to run business then all activities can be manage
properly and making the right business decision. The management of AKS
IT services, are increasing their clients by selling their IT and services to
customers so they feel good and increase the foreign investment (Hopkins,
2017).
Lifestyle – This also helps to make the changes in lifestyle of person who
are providing different lifestyle which helps to make the right business
decisions. By using transactional sales AKS IT Services can be increases
and maintain the good profitability in competitive business environment. It
also provide a assistance to customers regarding life style and deliver them
best quality of services.
Brand recognition – If sales are increases of business then brand image can be
maintain effectively. Thus helps to increase the business performance by
maintaining higher profitability. AKS IT Services company is providing best
quality of services that helps to maintain the brand image by delivering services.
With the help of transactional sales brand image can be maintain effectively.
Increase in revenues – Transactional sales are those sales which are uses by
organisation by maintain business and expanding in other countries. AKS IT
service organisation is maintaining higher profits by running business and using
transactional sales. This also helps to make the foreign investment and increasing
profitability.
Drawbacks of transactional sales are as defined:
Financial risk -
While running business and expanding in other areas this drawback is facing by
organisation at the time of running business. This risk is financial loss that means
while making transactional sale there are many chances of investing money and
no confident to get success that increase risk of financial money. To run business
financial resources are important that needs in organisation for running, are
difficult to maintain. This increases business risk while running a business.
Lengthy process – Internationalisation and transactional sales are longer
process which can create problems for organisation to run business and earning
profits. As to running this, there is need to get permission from international
government where business in going to establish. It is not easy for business
concern to take permission and arrange the resources which is drawbacks for
AKS It services organisation (Jarrett, 2019).
People and skills – People are those who are participating in organisation
activities that is important helps to maintain the activities effectively. Skills refers
as capabilities and abilities of person which are important that can help to accept
the challenges and changes effectively. In context to AKS IT Services, having a
communication and coordination skill that helps to accept challenges and increase
the organisational productivity.
A business plan – Small business are running by strategies and making plans
which helps to run and manage the activities. The manager of AKS IT Services
are making plans by deciding goals that helps to reach potential customers and
managing the activities effectively (Gibson, 2014).
P2 Explain different process of customer relationship
management for small or social enterprise
Customer relationship management – Customers are main
aspects of organisation which helps to increase the business
profitability. The managers of organisation are playing important
role who understand the needs and wants of their organisation and
provide products and services accordingly. Customer relation
management is the process of attracting, buying, delivering and
retaining the customers continuously. In context to, AKS IT
Services, management are maintaining good relationship with
customer that increase business performance. This increases
business performance by managing all activities in small and social
enterprises. To maintain the customers relationship different
process are as defined:
ACTIVITY 1
P1. Demonstrate the main considerations of small enterprise which
needs to address in planning while allocating resources to achieve business
objectives
Small business – This means a corporation, sole proprietorship, partnership
are running their business in environment. It is important for small business to
understand the needs and requirement of customers then provide products and
services accordingly. Small organisation are privately owned organisation which is
running by people in order to increase the production and profitability. AKS IT
Services is small business that is providing consulting services to their clients that
helps to increase the organisational performance and profitability.
Planning resource – This is important for organisation to make plans and
strategies to run the business and organise all activities. It is a logistic and
systematic activities which are run by management in order to increase the business
productivity. Different types of planning resources are uses by companies such as
controllable, semi-controllable that are managed by managers which helps to
maintain the good performance. AKS IT Services is making uses of planning
resources and strategies by deciding goals and targets which are important which
maintain the productivity. Different types of planning resources are uses by such
organisation that are as defined:
Premises and equipment – For managing and running business building and
equipment are important which can helps to run a business. Different types of
premises are involves internal, external, semi-controllable. AKS IT Services are
having proper premises and infrastructure that attracts customers and increase
organisational productivity. The scarcity of resources has affected the business
negatively (Deresky and Christopher, 2015).
Customer relationship management – Customers are main aspects of
organisation which helps to increase the business profitability. The managers of
organisation are playing important role who understand the needs and wants of
their organisation and provide products and services accordingly. Customer
relation management is the process of attracting, buying, delivering and retaining
the customers continuously. In context to, AKS IT Services, management are
maintaining good relationship with customer that increase business performance.
This increases business performance by managing all activities in small and social
enterprises. To maintain the customers relationship different process are as defined:
Assessment of customer value – This is first stage which needs to perform by
organisation in order to increase the organisational production and profitability. In
this, customers should be values and satisfied by running and providing different
types of products and services. If a business is able to understand the needs of
customers then it has opportunity to run business and increase profitability. In
context to AKS IT Services, managers are identifying needs and demand of their
clients so they can provide services accordingly. The management of such
organisation are conducting research and analysing information regarding customer
needs that can manage the information effectively.
Developing effective channel for customer communication – Communication is
effective process which is running by business concern that helps to run the
business. This is important for business organisation to have customer
communication which can increase business performance. Customers are main
assets for AKS IT Services who maintain good relations with customers by using
IVR mobile, news papers, direct selling and web self services which helps to
attracts customers and increase profitability.
E-mail and digital marketing keep strong relationship – This
stage is related to customer relationship privately and uses different
methods and sources to communicate properly. In London, different
channel and sources that are uses to maintain good relationship with
customers. The managers of AKS IT Servicer are providing different
types sources E-mails and digital marketing such e-mails and print
media that increases business performance and maintain profitability
(Goodman, 2019).
Network development – This is another process which is uses to
improve the network development by improving good relationship
with customers that helps to increase the business performance. AKS
IT Services is using different network sites that good relations with
customers. This helps to maintain the success of their business by
increasing profitability. The managers of such organisation are
developing are good relation with suppliers, investors, customers and
others that helps to increase production.
Therefore, CRM is a process which is uses by AKS IT
Services that can help to increase the business performance. Small
business are having good relationship and network that increases
business profitability.