Analyzing Business Process Management Strategies and SME Practices

The implementation of Customer Relationship Management (CRM) processes within small and medium enterprises (SMEs) is crucial for enhancing operational efficiency and customer relations. This paper explores the application of project management techniques, such as Gantt charts, to plan and monitor CRM initiatives effectively. Additionally, it delves into knowledge management practices that ensure business continuity amidst employee turnover and succession planning. By leveraging these strategies, SMEs can achieve sustained success and maintain competitive advantage in their respective markets.

MANAGING AND RUNNING A SBE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1) Main considerations a small business or social enterprise needs.........................................1
M1) Tools and techniques in a structured and analytical way....................................................2
M2) Importance of planning and allocating resources................................................................2
D1 Application of various resources to indicate link and to achieve business goals and
objectives.....................................................................................................................................3
TASK 2............................................................................................................................................3
P2) Various processes of customer relationship management....................................................3
P3) Small business can develop transnationally and benefits and drawbacks............................4
M3) Elements of the customer relationship management process.............................................5
M4) Potential to develop transnational operations......................................................................5
D2 Process of customer relationship management.....................................................................6
TASK 3............................................................................................................................................6
P4) Annual itemised monthly cash flow forecast showing fixed and variable costs..................6
P5) Break- even analysis.............................................................................................................9
P6) Financial statements for an organisation............................................................................10
M5) Quantitative and analytical techniques..............................................................................11
D3 Break even analysis and cash flow statement.....................................................................11
TASK 4..........................................................................................................................................11
P7 & M6) Legislation and regulations that have implications on small businesses................11
D4 Regulations and legislations that impact on small business................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Small businesses are integral part and contribute towards an economy of country. In
small organisation, few employees are working and these firms provides the many employment
opportunities to people for improving their living standard and economy of country. For better
management of the small firms, there is a more requirement to prepare the effective strategies as
well as policies which gives the proper direction to staff members in order to achieving the
organisational objectives with in a given period of time. Small firms have limited business
related operations and more impacted through those components which are existing in the
business environment (Ali and Babiker, 2017). Austin Fraser is a small firm which provides the
consultancy and recruitment organisation. The main areas of providing recruitment and
consultancy services are information technology, engineering, human resources and many others.
Under this mention report discuss about major considerations small business requires to address
when the planning as well as allocating resources to accomplish business related objectives.
Various processes of the Customer relationship management for small business will be
mentioned below. In given report, discussion will be done about key regulations and legislation
which have impact on the small firm.
TASK 1
P1) Main considerations a small business or social enterprise needs
Austin Fraser is a small size consultancy and recruitment firm in the field of engineering,
animation, information technology, accountancy and many others. As it is a small company so it
does not have more money as well as resources to give its services to end customers. This
company provides the better employment opportunities to small firms and also give the better
recruitment to the local people. In addition to this, management of Austin Fraser business firm
requires to take the better support of its retailer which helps in give better consultancy services to
the employed as well as unemployed people (Bridge and O'Neill, 2012). The main aim of this
business firm to give the better employment services to local people for increasing their living
standard. There are various factors which are required to address through management regarding
planning for the future actions for archiving the common aims. Some of the main considerations
are mentions below:

Financial resources- These are most necessary resources and also regarded as backbone
of business functions in an effective manner. Minimum funds have an adverse affect on small
business firm operations but this is not possible for management to run business activities
(Burns, 2016). For better management of finance in Austin Fraser organisation, there is a need to
firm to see its financial accounts like for an instance Balance sheet, Profit and loss account, cash
flow statements and many others. It is helpful in interpretation loss and profit of firm.
Staff members and their skills- Staff members are major assets of business firm. In
addition to this, it is a duty of human resource to hire capable staff members and then provide
them training so that they can work in a better manner. It is responsibility of human resource
management to deal with employees in an effective way and include them in a decision making
method. It will be helpful in achieving the targets of company with in particular time period.
Goals, objectives and vision- It is necessary for each organisation to explain their
objectives, vision and goals to those people which are related to business firms. It gives better
opportunities to manager of Austin Fraser to develop an outline of various functions which are
required to perform through staff members. This kind of framework gives proper guidance to
workers to achieving better goals to people. In context to this, management of Austin Fraser
company to give proper training to employees through using better techniques as well as
technologies for improving working effectiveness.
M1) Tools and techniques in a structured and analytical way
There are two different techniques used through Austin Fraser organisation for efficient
planning and resources allocation which are given below as above:
Critical path analysis- It is an effective methods used through Austin Fraser manager in
order to identify the various paths which are required to accomplished for finish project on
specific time period. In this, longest path is always chosen because it takes more time to finish
(Chauma, 2017). It is step- by- step project management techniques for the process planning that
explains critical and non- critical tasks with aims of preventing process bottlenecks and time-
frame issues. This technique is mainly used through manager of Austin Fraser to identify various
paths which are required to attain completion of the project in better manner.
Gantt chart- This kind of bar chart gives information related to the project schedule. It is
helpful in ascertaining time period to finish particular project. It helps in improve effectiveness

of an employer about efficient allocation of the responsibilities and roles to all staff members. It
is helpful in developing better structure of business that is established more that helps in make
improvement in the internal strength of company in better manner.
M2) Importance of planning and allocating resources
Resource allocation includes planning of all resources necessary for project. It is helpful
in use only the necessary resources. It aids to schedule ahead and also insight in progress to team
consisting allocation right amount of time to people on team.
There are some importance of allocating and planning the resources given below:
 Helpful in achieving the more profit in a better manner.
 Growth of potential skills of staff members.
 Make improvement in an internal strength of company by attaining flexibility in the
business operations.
 It is helpful in improve the internal strength of company by achieving the flexibility in
business operations.
 It aids in developing existing capabilities and skills of staff members.
TASK 2
P2) Various processes of customer relationship management
Customer relationship management refers to the strategies, technology and also
practices which organisation use to analyse and manage consumer interactions with an aim of
improving better relationship with consumers (Cojoacă, 2017). It is a better strategy for
managing the harmonious relationship as well as interactions which existing and new consumers.
It is helpful in improving profit level of company. It helps in sustain consumers for long time
period and improve the sales. In this, data and information is gathered with the help of various
communication channels such as telephone, email and many others.
Customer relationship management process
Assessment of customer value- It is helpful for company in making better relation with
consumers. It is an obligation on management to identify all needs as well as preferences
regarding cost and quality of existing goods. It is a better method to gathering the feedbacks and
view points of consumers for the purpose of conducting market research. Through this firm can

know about the current market trends as well as strategies to make improvement in current
goods. Those kinds of activities helps in execute the best practices to satisfies the various
requirement and sustain loyalty and trust towards the services or goods.
Execution of effective communication channels- In order to maintain the better
relationship with consumers, Austin Fraser requires to create the better and useful channels of
communication. It is helpful in grabbing the better opportunities and try to give better
employment services (Drucker, 2012). Some of the better channel of communications are social
media, websites etc. to reach at target consumers.
Role of digital marketing and E-mail for effective relation- These both are the better
medium to give information regarding present operations and helpful in adopting the some
programmes which impact on behaviour of consumers. The digital marketing application has the
wider reach towards consumers and also contribute for making the awareness regarding services.
With the help of all these two different methods firm can communicate with consumers and also
attract them in an effective manner.
P3) Small business can develop transnationally and benefits and drawbacks
Transnational sales is a necessary concept which is helpful to Austin Fraser to analysis
revenue as well as profit level. It is the sales of organisational services and goods across outside
boundaries on the basis of demand which is developed at market place (Durst and Runar
Edvardsson, 2012). In addition to this, it is a duty of Austin Fraser to apply various type of
tactics on the basis of present conditions which are present in particular nation for earning more
profit and make better brand image at market place. This kind of strategy is used through Austin
Fraser company to offer the generic goods which main aim to earn high profit. If firm will
expand its business in to the new countries and cities, there is a need to business firm to prepare
the better plan.
In context to this, there is a requirement to business firm to give the more efforts which
gives opportunity related to exploration of various kinds of functions at the international level. It
is necessary that Austin Fraser company offer the goods and services to consumers at the
reasonable price. All kinds of business related activities is helpful in expanding all business
functions in an effective manner. There are some drawbacks and benefits which are ascertained
through business by expand business activities mention below as above:

Benefits
Lifestyle- In small business firms, definite working style is followed through staff
members which are working in a business firm. With the help of this staff members can gain the
more profit.
Independence- Under this, there is a right to manager to take the better decision for
expand all the business related operations (Durst and Wilhelm, 2012). There is a need to
manager to take decision on the basis of regular time interval to provide the better opportunities
for run business in a proper manner.
Efficiency- Small business firms follow the proper working structure for the purpose of
enhance efficiency of process of business and give different advantages to an organisation.
Drawbacks
Lengthy- In order to increase business operations in better manner and generate more
profit, there is a need to Austin Fraser to adopt and use innovative and creative ideas and this
process is time consuming.
Financial risk- It is more necessary risk faced through business firm at the time of
expand business related activities art international level (Hammer, 2015). Regarding this, small
companies do not have more funds.
M3) Elements of the customer relationship management process
Some of the major components which plays necessary role in Customer Relationship
Management process given below:
Understanding consumers and markets- The first and foremost priority of an
organisation to identify needs of consumers and determine present market trends and then
produce better goods. If company will provide the goods according to needs and demands of
customers then in this case they will be satisfied and also focus on attaining the set aims and
objectives of firm in a better and effective manner.
Acquire consumer trust- It is necessary for Austin Fraser organisation to make better
relation with consumers and earn their trust towards company. For firm, acquire the trust of
consumers in more necessary. Through this, customers can sustain at the marketplace for long
period of time.

Offer development- Make modifications in the present goods and also add some more in
new features in new products. In this present time, demand and taste of customers changes with
in short period of time. It is a responsibility of firm to provide the products as well as services
accordingly.
Sustain consumers- In order to sustain consumers for long time period, there is a
requirement to give discounts and better offers according to their loyalty. It will be helpful in
making long term and harmonious relation among organisation and consumers.
M4) Potential to develop transnational operations
It is an obligation on management of an organisation to prepare better plan regarding
doing all business operations in a better manner through an internationalisation model. It has four
various parts which are given below:
Knowledge opportunity- It is necessary that manager should have better know about
grab better opportunities which will helpful in accomplish goal with in given time period
(Harmon, 2015). Manager should be aware about the tastes and preferences of consumers and
provide the services and products accordingly.
Relationship commitment decision- Providence of services and goods on the proper
time basis to consumers as well as suppliers for expand of business operations.
Network positioning- For the better promotions, firm need to establish the proper
network at market place. It is a responsibility of manager to use the attractive promotional
strategies so that large number of consumers can be attracted towards it in an effective or
significant manner.
Learning curve- There is a requirement to adopt the new and different programmes for
new product introduction.
D2 Process of customer relationship management
Various efforts are done by a company to develop and maintain a good relation with its
customers. Various steps are include in this process but mainly this process is based on 4 Cs as
given in following points:
 Correlate: Under this manager conduct different programmes to interact and
communicate with customers. Firstly customers are invited to attend the programme.

 Combine: In this a relation is develop between customers and company.
 Cognize: Under this manager use various tools to collect information about the various
activities of business.
 Connect: In this relationship is developed with suppliers, employees, customers and third
parties.
TASK 3
P4) Annual itemised monthly cash flow forecast showing fixed and variable costs
Sources of Funds
There are various sources which given an opportunity to Austin Fraser management to
increase money for the performance of various business related functions (Jasra and et. al.,
2012). It is helpful in making organisation more stronger. Different sources of funds are mention
below:
Equity finance- It consists issue of preference and equity shared through Austin Fraser to
trade on the stock exchange. It is an effective source of increasing capital for long term.
Bank loan- It is an external finance source. It is helpful for Austin Fraser organisation to
take all the better commercial loans from the bank at a fixed rate of interest which firm need to
paid on annual basis.
Hire and leader purchase- This method helps in enhance funds from leasing property as
well as equipments to other person. Under this, funds come from the interest and rent.
Budgeting and Forecasting
Forecasting refers to process of making any predications of future depends on the present
and past data. It is used by organisation to to identify all the future trends (Jenkins and et. al.,
2013). On the other hand budgeting refers to procedure of developing a better plan to spend the
money in better manner. There are various tools which are utilized through Austin Fraser
organisation for forecasting and budgeting given below:
Calculate moving average- It is helpful in preferences of existing consumers according
to current trends which are present at market place.
Time series data- In addition to this, management of Austin Fraser company gives an
emphasis related to identification of time period which will be require to finish particular project.

Balance Sheet, P&L and cash flow statement of Austin Fraser organisations:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45

Overheads 6 7
Net. profit 24 38
Cash flow Statement
Cash budget for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 25000 32250 31750 29750 26750
Budgeted cash receipts 12400 1600 1100 1000 15000
Total cash available 37400 34850 32850 29850 28250
Cash distributed
Direct material 1400 1150 1150 1300 1500
Direct labour 1200 650 650 650 650
Overhead 900 600 600 600 600
Selling and distribution 650 700 700 700 700
Total cost use 4150 3100 3100 3100 3100
Cash surplus/ deficit 32250 31750 29750 26750 2515

P5) Break- even analysis
Break-even analysis refers to calculation of point on which expenses are equal to
revenue (Schaper and et. al., 2014). It is financial tool which is used through organisations to
identify profitability ratio. It is a necessary method used through Austin Fraser management to
determine profit. It is helpful in identification of proper sales which requires to accomplish
through company annually or monthly. This is a better point under which an organisation
generate the no loss and no profit situations. With the help of break-even analysis, firm can
develop the better strategies for the purpose of improving sales at low cost and also contribute
towards earn more profit in an effective or efficient manner. It is helpful in increasing sales of
business firm.

In addition to an organisation, there are some conditions in which business firm require to
forecast regarding the sales figure as well as production (Schaper and et. al., 2 014). Under this,
Break-even analysis is an essential component which plays necessary role for minimising of
wastages and make improvements of manufacturing capacity.
For an example- Variable cost is Rs. 8 per unit where as fixed cost is Rs. 16000 and
selling cost is Rs. 10 per unit. The BEP is given below as above:
BEP= Fixed cost/construction margin per unit or product= 16000/(10-8)= 8000.
P6) Financial statements for an organisation
Different financial statements are prepared by every firm in order to control the expenses
and to maintain profits of company. Manager do interpretation of financial statements for collect
information about the expenses and income of firm (Durst and Wilhelm, 2012). All this support
in prepare budgets for various departments and ensure effective allocation of resources. Main
financial statements prepare by Austin Fraser is given under following points: Balance sheet: This is one of the major financial statement of firm. This indicate all
assets and liabilities of an enterprise. Investors analyse balance sheet of firm to take any
decision related with investment. Profit and loss account: As the name implies, this financial document of company show
all profits and loss of entity take place during a time period. This also highlight the
unnecessary areas of expenses and encourage manager to identify the ways to complete
business activities with minimum cost. All this enhance efficiency of business activities
and increase profits of entity.
 Cash flow statement: This financial statement is prepared by Austin Fraser, this indicate
the inflow and outflow of funds from an enterprise in a specific time period. All this
increase the effectiveness of management of financial resources and support entity in
utilise all funds in right manner (Drucker, 2012). This statement consists the differences
take place in balance sheet. Mainly shareholders and creditors remain interested in this
type of financial document.

M5) Quantitative and analytical techniques
For identify the cash flows as well as break- even points, quantitative and analytical
techniques play more important role. These both the different techniques which are used through
business firms in order to make improvement in internal performance and strength. It gives better
opportunities about functions without any kind of hindrances. Break-even point is helpful in
identification of output level in no loss and no profit situations. From the above calculation,
Break even analysis is 8000. on the other hand, there is a cash flow statement developed and it is
on the quarterly basis. The cash flow of each quarter is different from the each other and provide
the surplus and deficit.
D3 Break even analysis and cash flow statement
Balance sheet, Profit and loss account and cash flow statement all are known as the major
financial statement of a business organisation. One of the main feature of these statements is that
it make the manager inform about the total income and expenses occur during a specific period
of time (Hammer, 2015). Before invest in a company, investors analyse the financial statement
of a firm as this assist them in take better decision. Cash flow statement indicate the inflow and
outflow of cash in a firm during specific period of time and P&L account indicate the total
expense and income of a entity. This support manager in find new ways to reduce unnecessary
expenses.
TASK 4
P7 & M6) Legislation and regulations that have implications on small businesses
Government of every nation develop and introduce various legislations and rules to
control activities of enterprises. Every firm remain responsible to follow to adhere to those
legislations as this save the firm from legal action and penalty. Major rules that impact
commercial operation of an organisation are as follows: Healthy and safety act: This is one of the act which affect the functioning of firms. This
act summarise that healthy and safe working condition should be offer to workers. This
enhance their morale and encourage them to perform well (Jasra and et. al., 2012). For
work with risky equipments proper training should be offer to staff members.

 Data protection act: This act state that enterprise remain liable to keep the personal data
of employees confidential and do not reveal it before third parties. This decrease
employee's turnover and provide competitive benefit to firm.
 Employment and tax act: This act define that every business entity remain liable to pay
tax to government. Companies who does not pay tax on time has a face a legal penalty or
action. All this hamper the brand image of firm and reduce the sale of its products.
Timely payment of tax support in build and maintain positive brand image (Winarno and
Wijijayanti 2018).
D4 Regulations and legislations that impact on small business
Government of every nation formulate and introduce some rules and regulations to
control the business activities (Harmon, 2015). Every entity remain liable to follow the rules in
order to execute its activities. All this support in provide better services to customers and satisfy
their needs. It is necessary for an organisation to apply the different rules as well as regulations at
workplace and motivate the employees to work accordingly. There are different legislations
which firm can be adopt such as Health and Safety, Data protection act and many others.
CONCLUSION
It has been concluded from above given report that the Consumer Relationship
Management is necessary aspect for the small business firm such as Austin Fraser of the
potential consumers. It is helpful in compete with the strong competitors at the market place.
Under this mentions report studied about the evaluation of the various processes of consumer
relationship management for social enterprise. The small business firms can create
transnationally and also identify drawbacks and advantages. An analysis of break- down can be
applied to the situation of business firm. In this given report discuss about regulations and
legislation which have an implications on the social enterprise.

REFERENCES
Books & Journals
Ali, N. S. H. M. and Babiker, S. M. E., 2017. Performance Evaluation of Multi-core Systems
using SPEC CPU2006 Benchmark.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Palgrave Macmillan.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chauma, C. N., 2017.The application of project management tools and techniques in ICT SME
projects in Western Cape (Doctoral dissertation, Cape Peninsula University of
Technology).
Cojoacă, E. Ş. D., 2017. Interoperability of SME Databases from the Project Management Point
of View. Informatica Economica. 21(4). pp.15-28.
Drucker, P., 2012. The frontiers of management. Routledge.
Durst, S. and Runar Edvardsson, I., 2012. Knowledge management in SMEs: a literature review.
Journal of Knowledge Management. 16(6). pp.879-903.
Durst, S. and Wilhelm, S., 2012. Knowledge management and succession planning in SMEs.
Journal of Knowledge Management. 16(4). pp.637-649.
Hammer, M., 2015. What is business process management?. In Handbook on Business Process
Management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Harmon, P., 2015. The scope and evolution of business process management. In Handbook on
business process management 1 (pp. 37-80). Springer, Berlin, Heidelberg.
Jasra, J.M. and et. al., 2012. Determinants of business success of small and medium enterprises.
Jenkins, P.T. and et. al., 2013. Method and system for managing enterprise content. U.S. Patent
8,464,206.
Schaper, M.T. and et. al., 2 014. Entrepreneurship and small business.
Skolud, B. and et. al., 2016, October. Integration of Manufacturing Functions for SME. Holonic-
Based Approach. In International Joint Conference SOCO’16-CISIS’16-ICEUTE’16
(pp. 464-473). Springer, Cham.
Smit, Y. and Watkins, J.A., 2012. A literature review of small and medium enterprises (SME)
risk management practices in South Africa. African Journal of Business Management.
6(21). p.6324.
Stanciu, R. D., 2015. Performance Management-A Strategic Tool. FAIMA Business &
Management Journal. 3(2). p.5.
Weske, M., 2012. Business process management architectures. In Business Process Management
(pp. 333-371). Springer, Berlin, Heidelberg.
Williams, C.C., 2012. The hidden enterprise culture. In Enterprise, Deprivation and Social
Exclusion (pp. 184-204). Routledge.
Winarno, A. and Wijijayanti, T., 2018. DOES entrepreneurial literacy correlate to the small-
medium enterprises performance in batu east java?. academy of entrepreneurship
journal. 24(1).
Online
Five Step Process for CRM. 2018.[Online] Available through:<https://bizfluent.com/list-
6531382-five-step-process-crm.html>./