Small Business Report: Dimello Coffee - Capacity, Finance & Growth

This report provides a comprehensive analysis of Dimello Coffee House, a small business organization, focusing on capacity management, cash flow, customer relationship management (CRM), and transnational growth strategies. The report assesses the importance of planning and allocating resources to achieve business objectives, utilizing tools and techniques for effective resource management. It critically evaluates the CRM process at various stages, from brand awareness to customer service, and discusses how a small business can enhance transnationally, weighing the benefits and drawbacks. Furthermore, the report includes a monthly cash flow statement depicting fixed and variable costs, along with a break-even analysis. The document also touches upon the regulations and legislations impacting small businesses. Desklib provides this assignment solution as a resource for students.

Managing and Running a
small business

INTRODUCTION
Small business organization refers to the organizations who have relatively small number
of operations and employees Indore organization as compared to medium and large
organizations. It is very essential for the success of a small organization to co-ordinate and better
manner in terms of their employee’s resources, finances, suppliers and many more. Management
of small business Phelps to provide better opportunities to the business to create meaningful and
greater job satisfaction to the employees. Dimello Coffee House is considered for the purpose of
this report in which it contains two parts that is a report and a brochure. Dimello coffee house is
an organization best known for their coffee and servicing centers of social attraction to the
people. The company has low number of stores and operations which shows that they are
considered any small business organization. This report contains capacity management of
Dimello coffee with the help of planning and allocating of resources to attain their business
objectives. There are various tools and techniques that are considered during planning and
allocation of resources and attaining business objectives and requires the company to follow
proper customer relationship management process. The second activity of the report helps to
provide accurate cash flow statement for a coffee House with break-even analysis which helps to
forecast the budgets for the company. It also helps to provide a critical evaluation of regulations
and legislations that are important for a small business and from which a small business cat
affected for their future development and changes.
MAIN BODY
Activity 1 (Brochure)
Critical analysis of capacity management by assessing the importance of planning and allocating
resources to achieve the business objectives
In order to manage capacity of an organization it is essential for a small business to give
importance to the planning and allocation of resources. This will help a small business to achieve
their business goals and objectives and effective manner with the help of proper directions. In
case of Dimello coffee company, they are also required to consider some important parts of
management so that they can able to plan and allocate the resources and effective managers and

achieve their goals and objectives. This allocation of resources and different departments of the
company are explained below:
Financial Resources: Funding is the most crucial component to consider when beginning a
business. The financial resources that may be accessed more easily from a number of different
sources. This might come from the founder of the Dimello Coffee Company's personal accounts.
As a result, some financial institutions, friends and family, and private investors may be able to
guarantee bank loans and money on credit.
Human resources: Employees play a vital part in an organization's success because they offer
their skills and talent to achieve great outcomes. Human resource departments have a larger role
in terms of hiring potential workers. As an HR manager, an individual had the opportunity to
recruit suitable individuals who can contribute to productivity.
Physical resources: To compete in a competitive market, any firm need physical resources.
Small businesses, on the other hand, require physical resources such as improved workplace
infrastructure, tools and equipment, and telephonic facilities to educate successful marketing
materials.
What should be considered when planning and allocating resources to achieve business
objectives
There are various points that needs to be considered by Dimello coffee company during
the planning and allocation of resources to attain their business objectives. The tools and
techniques will be used by the company for this planning and allocation that are given below
from the perspective of Dimello coffee company:
Gathering right information: It is a method of gathering as much data as possible in order to
make better resource allocation decisions. If Dimello Coffee Company has a strong
understanding of resources, they can readily incorporate it into their work or any project. They
also need to gather knowledge on a certain resource that they will employ in their firm.
Effective visualize data: It is a method of gathering as much data as possible in order to make
better resource allocation decisions. If Dimello Coffee Company has a strong understanding of
resources, they can readily incorporate it into their work or any project. They also need to gather
knowledge on a certain resource that they will employ in their firm.

An explanation and critical evaluation of the customer relationship management process at all
stages
Customer relationship management process refers to a process that has been used by an
organization to manage their relationship with their customers with the help of better interaction
with them. Generally every organization follows customer relationship management to make
effective communication with their customers which helps the company to retain their loyal
customers with them. Being a small organization the mellow coffee company also uses customer
relationship management process which helps them to maintain their records and target them in
better manner for the next project. There are various stages that are related to the process of
customer relationship management for loading Dimello coffee company are explained below
Generate brand Awareness: In the first app of customer relationship management the company
is required to locate their products in the market with the help of battery introduction provided to
their customers. In order to generate brand awareness Dimello coffee company uses
demographic aspects interest and different channels of communication to identify the target
audience of the company. The company has divided their customers and similar groups with the
help of their interests and demographic area which helps them to identify their right customers to
target in the market.
Acquire leads: The Company should follow customer relationship management process from
the initial level so that they can have an effective business structure and we able to measure the
pros and cons of customer behavior in the market for their better achievement of goals and
objectives.
Provide Quality of Customer: This stage of customer relationship management process helps
coffee company to identify the role of quality of product to the customers and provide quality
coffee to their customers so that they can attracted towards the company again and again and
became their loyal customers.
Convert leads to customer: According to the stage of customer relationship management
process the mellow coffee company is required to identify their potential customers and convert
them into leads so that they became their paying customers. The company has an opportunity to
use various tools that will help them in lead process and identify better opportunities in the
market to convert strangers into customers for the company.

Customer service program: Customer service program helps a company to offer several
facilities to the customers which will help develop coffee company to build strong
communication network. Alliance of rating system to the customers help develop coffee
company to get valuable feedback and improve their services for their customers. It helps the
company to build strong relationship with their customers and find real time solutions and
responses. With the help of this review in system the customer will be able to message there is
one complaint so that the company can satisfy their customers and effective manner to gain their
trust and have effective relationship with them.
Discuss how a small business can enhance transnationally and determine the benefits and
drawbacks
Enhancing transnationally will allow the business organization to enhance their overall
performance and profitability and will also help in effectively carry out their activity at the
international level also. In case of chosen company, the use of various transnational method will
helps the company to enhance their overall performance. The various method that can be
considered by the chosen organization in order to move to the international market includes:
Use of online marketplace: The use of various online platforms will allow the company
to effectively carry out their international transactions and enhance their overall performance.
The company can attract their international client and enhance their overall performance.
Advantage: The use of transnational options will helps the chosen company to enhance
their overall performance in the international market and increase their productivity and
profitability. It will also helps in increasing the revenue.
Disadvantage: It will include the high amount of capital in order to carry out the activity
at the international level, also it is a time consuming process.
Provides recommendations for overcoming challenges of developing transnational operations
In case of small businesses Dimello companies have various ways to enhance their
business activities into international platform life market research global investments and many
more. In the similar manner Dimello coffee House also wants to expand their business and
international market and the ways that can be suggested to the business are given below:

Use an online marketplace: These professional platforms, such as Alibaba or LinkedIn, make it
simple to reach out to international customers. Dimello Coffee may use these platforms to track
their customers from across the world and advertise their products and services to a wider
audience.
Work with Foreign Distributor: Foreign distributors are intermediaries that help businesses
connect with international customers. Connecting distributors may help create better
relationships, which can be more beneficial than using an online marketplace to efficiently sell,
advertise, and service products. In the case of Dimello Coffee company, they need to connect
with an online overseas distributor that can assist them advertise their products and services
while also expanding their worldwide business prospects.
Apply and evaluate the elements of the customer relationship management process concerning
achieving business objectives and to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges
In order to evaluate various elements that are used in customer relationship management
process a small business has a proper control and management of customers and the company.
This will help the company to build positive relationship with their customers and retain them for
the longer period of time to make the loyal customers for the company. The improvement of
brand image in the market with the help of customer relationship management the company will
be able to achieve more profits and expansion opportunities in the market. Apart from this there
are various factors that are achieved with the help of customer relationship management process
and ultimately helps the company to achieve business objectives and goals. This customer
relationship management process also helps the company to manage competition in the market
by gaining competitive advantage and automatically achieve desired goals and objectives. The
above given steps for development of transnational corporations in the company Dimello coffee
House is required to identify their benefits and challenges that are faced by the company with the
help of the steps of transnational operations. These steps of translational process are beneficial
for the company as it helps to increase the revenues in international market and drive more
opportunities for their enhancement. This also create sustainability for the company in
competitive international market. Apart from this these transnational development process has
some disadvantages and challenges for Dimello coffee company in international market as one of

them is that it requires high capital investment and also faces several issues in respect of rules
and regulations of different geographical borders of international market.
Activity 2(Report)
Monthly Cash Flow Statement depicts fixed and variable costs
Cash flow statement is a statement which helps to identify the inflows and outflows of cash in
the business organization. This statement helps an organization to measure the use of cash in the
company and helps in resource management and financial forecasting for the company. Cash
flow statement is essential to analyze and monitor various expenses in the management along
with the income sources for the company. In case of Dimello coffee company, cash flow
statement helps the owner of the company to manage the flow of cash and take supported
financial decisions for the company. This analysis helps to monitor cash expenses investment
and saving in the company on the daily basis so that financial risk can be mitigated at earlier
level and company can I be able to achieve higher growth with the help of their investment on
right thing with right method. The cash flow statement of Dimello Company is given below:
Cash
distributed Jan Feb
Marc
h April May June July
Augu
st
Septe
mber Oct. Nov. Dec Total
Total
revenues 8000 6500 5500 5000 8500 9000 9200 8750 8250 8000 8520 8925
9414
5
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785
1848
2
Direct labor 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589
1471
9
Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250
2118
7
Selling and
distribution 750 750 750 800 850 950 850 650 720 715 785 795 9365
Total 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419 6375

variable
expenses 3
Fixed
expenses 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
2400
0
Total cost
use 6500 5250 5000 5300 8350 8780 8885 8540 8033 7708 7988 7419
8775
3
Surplus/
Deficit 1500 1250 500 -300 150 220 315 210 217 292 532 1506 6392
Application of Break Even Analysis on Dimello Coffee Company
BEP = Fixed cost/ selling price per unit – variable cost per unit
Calculation of BEP=
Fixed cost= 12000
Selling price per unit= 10
Variable cost per unit= 4
BEP= 12000/10-4
BEP= 12000/6
= 3000
Applications of BEP: -
 Break even analysis is an important tool for an organisation which helps them to analyse
their productivity and on productivity factors so that the business can take effective
decisions. This helps the company to reduce various risk factors and enhance their
productive factors.
 BEP also helps Dimello coffee company to develop their pricing strategies so that they
can be sure high profit and good growth in the market with effective sales.
 This break-even point analysis also helps Dimello coffee company to develop their goals

and objectives in such a manner that they can achieve higher growth and expansion with
greater values in the market.
The above analysis helps to evaluate that the break-even point refers to the point where
both sales revenues and total cost lines of graph intersect each other. At this point of situation of
business organisation is having a no profit and loss situation in their financial assets. If the
company goes above this point then they will have profits whereas below this break-even point
the company will have losses in the market.
Important Financial Statement for Dimello coffee Company
Financial statements contains the statement of an organisation in which the record their financial
conditions and necessary activities. This natural treatment of an organisation contains profit and
loss account and balance sheet which has full record of incomes expenses assets and liabilities
for a company. In case of Dimello coffee company there are various natural statements that are
used in the company. This financial statement helps the various stakeholders of business to
identify the financial condition and make effective decisions by the management according to the
financial statements for various necessary activities. The different financial statements that are
used in Dimello Company are explained below

Balance sheet: Balance sheet is an important financial statement which helps a business
organization to analyze their total assets and liabilities. This statement helps the management and
stakeholders of a business organization to analyze the amount of assets and liabilities that are
contained in the business organization. In case of Dimello coffee company balance sheet helps
the management to identify their liquidity position in the market to take effective decisions for
their expansion.
Profit and loss account: Profit and loss account is another financial statement which helps an
organization to analyze their profits and loss during the year. A balance sheet is prepared for a
time whereas profit and loss account is prepared for a financial year which helps to analyze the
financial position of the company with the help of total income and expenditure occurred during
the year. In case of Dimello coffee company, the profit and loss account of the company helps

them to analyze the wasteful expenditure over the year so that the management can take effective
decisions to save that expenditure for the betterment of company. Apart from this the various
sources of income are also analyzed from which the company is able to achieve good amount of
interest or any other kind of income. This income and expenditure statement also helps
management to take effective investment decisions in the company and helps in the expansion
and growth in international market.
Key legislation and regulation that have implications on Dimello Coffee Company
In order to survive in an economy of a country Dimello coffee company is required to
follow various legislations and regulations. This legislations and regulations helps them to
provide for various rules and laws that are applicable on the business and required to be fulfilled

to carry smooth operations. Coffee company also has some laws and legislation that are need to
be followed by the company to complete their tasks and activity in small businesses. In the
chosen company the various laws and regulations that are applicable on them are explained
below
Data protection regulation act: Dimello coffee company is involved in various operations in
which they are required to record the private data of their customers which is very risky for their
customers if it gets lead from the company. To save the interest of consumer on digital payment
the government has issued data protection regulation act in which business organization is
required to protect the personal data they have with them of their employees and the customers.
Giving the personal data to someone else is an unlawful activity and for the smooth running of
the business the mellow coffee company is required to follow data protection regulation act. This
act will help the company to protect the personal information that they have of their employees
and customers in effective manner.
Equity act 2010: Another act which is applicable on Dimello coffee company is the equality act
which is formulated to create and follow equality in the workplace. According to this law every
employees required to be treated equally in an organization and no discrimination should be
made in the company on the basis of their age size and color. This act helps a business
organization to create healthy working environment in the workplace with effective motivation.
National minimum wages act 1998: National minimum wages act 1998 is is an act which helps
accompanied to decide minimum wages for their employees so that no employees can be
undervalued in the organization. This act also provides motivation to the employees for being
over used in the organization and helps to perform effectively to achieve desired goals and
objectives of the company. This act provides for offering minimum wages to all the employees in
a company with a predetermined price by government.
Employment act: The main objective of this act is to regulates the relationship among
employees and employers. In addition to this, Employment act governs employees right at
workplace, what employers can expect and what employers can ask. In context to Dimello
coffee, following of this act help company to maintain good relationship with its staff members
and also help staff members to know about their rights in an effective manner.