Small Business Management: A Report on Marshfield Bakery

This report provides a comprehensive analysis of Marshfield Bakery, a small UK-based business. It examines key considerations for resource planning and allocation, including workforce planning, equipment planning, and securing bank loans. The report delves into customer relationship management (CRM) strategies, including valuing customers, developing communication channels, and utilizing social media. It explores transactional business development, outlining the benefits and drawbacks of exporting and stage models of internationalization. Furthermore, the report includes an annual itemized monthly cash flow forecast, explaining break-even analysis and the contribution of key financial statements to successful management. Finally, it identifies key regulations and legislation impacting Marshfield Bakery.

MANAGING AND RUNNING
SMALL BUSINESS
TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Main consideration a social enterprise or small business needs to address when planning &
allocating resources to achieve objectives...................................................................................1
LO 2.................................................................................................................................................2
P2 Varied procedure of consumers relationship for Marshfield bakery......................................2
P3 Ways use by small venture to develop transactionally and its benefits as well as drawbacks
......................................................................................................................................................3
LO 3.................................................................................................................................................4
P4 Annual intemised monthly cash flow forecasting showing the variable and fixed costs of
the organisation............................................................................................................................4
P5 Explaining how break even could help in application to organisational situation.................5
P6 Contribution of key financial statements in successful management of organisation. ..........6
LO 4.................................................................................................................................................7
P7 Key regulations and legislation that have implications on Marshfield bakery.......................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Managing and running a small business is quite challenging task for those who want to
establish it within specific sector with available resources. The current assignment will be based
on Marshfield bakery, which falls under category of small firms in the UK. This study will
explain main considerations of chosen company in context of resource planning and allocating. It
will define the importance of and techniques for planning & allocating resources. Furthermore,
this report will justify the process of customer relation management and ways of developing
venture transnationally. It clarifies annual itemized monthly cash flow, application of break-even
analysis and interpretation base on financial statement for firm. This assignment will describe the
implication of important regulations and laws on Marshfield Bakery as selected small
organization.
LO 1
P1 Main consideration a social enterprise or small business needs to address when planning &
allocating resources to achieve objectives
Marshfield bakery may appropriately plan and allocate its key resources to workers by
considering the main elements which enable each employee to achieve set objectives of its
business.
Identify resources-
Before planning and allocating resources such as machines, raw materials and task to
workers, company mainly consider accessibility of staff, which make them able to allocate things
accordingly (Li, Cai and Qian, 2018).
Premise & equipment planning-
The main consideration of chosen company in context of above process is equipment
planning, which make manager capable to purchase and then allocate each equipment according
to number of staff.
Workforce planning-
Before conducting above discuss practice, organization may analyse need relate to
effective workforce and then develop plan to hire people who are able to achieve its business
objectives.
Skilled workforce requirement-

The most important thing that Marshfield bakery might consider before resource planning
and allocating, is requirement relates to skilled and talented workforce in the workplace which is
essential analyse in term of gaining competitive edge and achieving aim.
Planning of activities-
Marshfield bakery as small company may recognize plan of activities that might conduct
at workplace to achieve business goal and objectives.
Securing bank loans-
It is actually very important for organization of secure bank loans or overdraft as it allow
them to make further plan in context of resource and permit allocating to staff which they used to
gain benefits for firm.
Application of techniques and tools in analytical manner to plan and allocate key assets-
There are different forms of methods and approaches are accessible in the world of
business that chosen company may use to plan and them allocate its resources such as IT
facilities, equipment's, competences and other things in systematic manner (Gheorghe and et.al.,
2018). Gantt chart and critical path analysis are the two different elements that provide benefit to
organization while planning and allocating resources as it define the requirements relate to
different forms of resources.
Importance of planning & allocating resources-
Resource planning and allocating is quite beneficial and essential for Marshfield bakery
as it help to improve its operational efficiencies and enhance performance as well as productivity
level of workers (Li and et.al., 2017). By conducting above activity, organization may prevent
use of unnecessary products in form of purchasing resources that are needed by employees to
achieve business objectives. It considered as procedure of planning, organizing and assigning
resources in a form that support to reach company strategic objective. Resource planning and
allocating is beneficial in term of making firm enable to effectively meet demands of consumers.
LO 2
P2 Varied procedure of consumers relationship for Marshfield bakery
Valuing consumers-
Chosen company may use this process in context of managing customer relation.
According to this method, by valuing consumers, their needs and suggestions, firm successfully
build a strong bond with target market and manage it effectively.

Acquire customer faith-
Development of effective and appropriate loyalty programme provide opportunity to
organization in regard to acquire its target segment faith and retain them for longer period of
time. It also helps to manage relationship with potential consumers.
Develop effective communication channels for buyers-
Live chat in the recent time is one of the most useful and beneficial communication
channels that many companies either small like Marshfield bakery or large, used to communicate
with buyers which enable them to maintain healthy relationship (Hendriyani and Raharja, 2018).
Usage of consumer care programmes-
Online rating and testimonials are two form of customer care programmes that
organization may use and gain its benefit in term of managing effective relationship with each of
its buyer.
Usage of social media platforms-
The most common and appropriate process that firm may use in context of customer
relation management is development and use of social media platforms, where millions of people
have already created his or her account to take update about market trend (Jacobson, Gruzd and
Hernández-García, 2020).
Elements of consumers relation management process in context of achieving business
objectives-
The entire procedure consists four key components are valuable for company in regard to
achieve set objectives of its venture. The first element is to understand market and consumer
needs, which enable firm to manufacture and offer products accordingly. Second component is
target, according to that small business may develop offer which they want to provide to target
market. Third element is sell and fourth is service. All these components are beneficial for
chosen enterprise as it help to increase sales which is important to enhance. On the other hand, it
affect negatively upon venture in form of consuming time while applying first element.
P3 Ways use by small venture to develop transactionally and its benefits as well as drawbacks
Transactional venture may define as a business that carry out commerce across global
boundaries. Small companies just like Marshfield bakery and start up may internationalize
because of increasing profitability, productivity and customer base.

Organization could develop transactionally by following the procedure of exporting and
developing transactional tactic which is based on stage mode of internationalization.
The procedure of exporting includes licensing assurance, regulatory compliance before
shipping of products, arranging for warehousing and transport after unloading of items and
getting customs clearance.
Stage model of internationalization is quite effective in context of above term. It
emanates from common idea that internationalization of firms is an gradual, incremental and
dynamic procedure. It contains two stages, patterns of and model of internationalization.
Benefits-
Transactional strategy that firm may develop provide benefit in term of increasing profits
margin, generate revenue, gain global consumer attention and increase customer base. The best
thing about this type of strategy is that it help to expand venture (Deng and Lu, 2021).
Drawbacks-
One of the biggest disadvantages of transactional strategy is that it bring challenges in
front of management to manage overall international presence of business from one central outlet
and takes a considerable amount of time and careful oversight.
Evaluation base on potential to create transitional operation using key stage model of
internationalization-
Marshfield bakery may develop transactional operation by using two stage mode l of
internationalization. Pattern of internationalization is the first phase of this model that consists
establishment chain and psychic distance chain. Both terms drive attention of company to
internationalize its venture. The second phase also benefits firm in term of increasing its market
knowledge, commitment level and change aspects. On the other hand, along with advantages,
stage model of internationalization may affect in negative manner in term of consuming time and
create challenge in form of increasing competition.
LO 3
P4 Annual intemised monthly cash flow forecasting showing the variable and fixed costs of the
organisation
Cash Flow Budget
Cash flow budget is an important budgeting method that helps the organisation to identify
the future cash needs. Budget is prepared for effective allocation of the resources over different

activities and processes by making forecasts of the income and expenses that will be earned.
Forecasts are made based on previous trends using statistical tools and software (Khanzadi,
Eshtehardian and Mokhlespour Esfahani, 2017). Cash flow forecasting is very essential for
ensuring sufficient are available for carrying out business successfully.
Particulars January February March April May June July July August
Cash inflows
Opening cash
inflow 7000 -3500 -7900 -
10148 -7868 355 6980.3 17517.6 29528.7
Sales revenue 62000 68200 75020 82522 90774 99852 109837 120821 132903
Other income 2000 2000 2000 2000 2000 2000 2000 1998 1999
Total cash
inflows 71000 66700 69120 74375 84907 1E+05 118817 140336 164430
Cash outflows
Material 22500 24750 27225 29948 32942 36237 39860 43846.1 48230.7
Labour 15000 16500 17325 18191 19101 20056 21059 22111.6 23217.2
Variable
overhead 5000 5000 5000 4000 2000 8000 8000 12000 11000
Other
expenses 4500 4725 4961.25 5209.3 5469.8 5743 6030.4 6332 6648.5
Equipment
Fixed
Expenses 17000 17000 17000 17000 17000 17000 17000 17000 17000
Distribution
Expenses 2500 2625 2756.25 2894.1 3038.8 3191 3350.2 3517.75 3693.64

Administration
expenses 8000 4000 5000 5000 5000 5000 6000 6000 6000
Total cash
outflows 74500 74600 79267.5 82242 84552 95226 101299 110807 115790
Cash deficit /
surplus or
closing cash
balance
-3500 -7900 -10148 -7868 354.97 6980 17518 29528.7 48640.1
September October December
48640.1 71541.7 58847
146193 160812 194583
2000 2001 2003
196833 234355 255433
53053.8 58359.2 70615
24378 25596.9 28221
14000 14000 16000

6981 7330 8081.4
80000 20000
17000 17000 17000
3878.32 4072.24 4489.6
6000 6000 6000
125291 212358 170406
71541.7 21996.4 85027
Break-even analysis could be described as financial tool that helps the company in
determining the point at which company, product or service will earn profits. It is an effective
tool that helps the organisation to identify where the company will cover its costs. Also the
analysis helps business to determine the sales for achieving desirable profits. Company using the
break-even analysis frame the marketing strategies for increasing the sales and also adopting cost
efficient method that will help to reduce the costs (Khansalar and Namazi, 2017). In the present
case company is using break even analysis to identify the sales of units at which it will cover the
cost and the units to be sold for earning the target profits.
P6 Contribution of key financial statements in successful management of organisation.
Difference between profit and cash

Profit is referred as net income that is left with company after it has covered all the costs
and expenses. Cash flows on other refers to money that comes in and goes out of the business.
Both are important for business. Cash is important for running the business. Profit is essential for
growth and continuing future business operations.
Importance of the cash flows for small business
Cash flow is important for carrying out each and every operation of business. It is
essential for buying raw materials, purchasing capital assets and for meeting day to day
expenses. Adequate cash flow is essential for the business smoothly.
Elements of working capital and managing cash flows effectively
Elements of the working capital are inflows and outflow of cash and inventory. Working
capital is difference between currents assets less current liabilities (Osadchy and et.al., 2018). It
is required that company must have positive working capital for reflecting strong working capital
position.
The cash flows can be maintained by effectively managing the procurement of inventory,
timely payment to suppliers so that provide discounts and negotiate with prices, improving the
collection process and ensuring the debtors are collected on timely basis.
LO 4
P7 Key regulations and legislation that have implications on Marshfield bakery
Organization may comply all the rules relate to employment, data protection and health &
safety, which is actually very essential in term of sustain its business from longer period of time
within Food & Beverage sector. Equality act 2010 is one of the employment act or legislation
that firm might comply to assure that management is offering equal growth opportunities to all
the staff members.
Health and Safety Act 1974 is the main element of legislation that cover occupational
health & safety in Great Britain where firm is operating is business in ethical manner.
Along with above, Date protection act 2018 have also implicated on chosen company
which make them stronger in form of protecting information relate to business and workers as
well.
Evaluation base on implication of legislation & regulations in firm-
By following and implementing above laws and regulations within current practices,
company has increased its brand image in marketplace, which in return gain attention of

potential consumers. Change in specific law or legislation affect the way manager take decision
and develop plan.
CONCLUSION
By summing up above discussion, it has been concluded that Marshfield bakery by
focusing on identifying resources, equipment planning, capacity utilization, workforce planning
and other main consideration, has successfully developed plan and allocate resource which
enable them to achieve key objectives of company. By using effective approaches and using
suitable process of consumer relationship management, firm has effectively managed its relations
with target market. Development of annual itemized monthly cash flow forecast has helped
management to determine actual cost of managing venture within food & beverage sector.
Furthermore, from above analysis it has been summarized that by following and complying all
the regulations company has successfully sustained its business within chosen industry.

REFERENCES
Books and Journals
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