JS Supermarket: Strategies for Small Business Growth and Management

This report provides a comprehensive analysis of JS Supermarket, a small medium enterprise operating in London. It examines key aspects of the business, including resource allocation, customer relationship management (CRM), and transnational development strategies. The report delves into the considerations for allocating resources, such as financial and human resources, as well as the importance of setting clear goals and targets. It also explores different CRM processes used by JS Supermarket, like customer portfolio analysis and customer intimacy, to enhance customer relationships and drive sales. Furthermore, the report discusses the advantages and disadvantages of transnational operations for the business. The report includes financial analyses, such as cash flow forecasts and break-even analysis, and interprets key financial statements to aid in successful management. It also covers relevant legislation and regulations impacting small businesses. The report offers insights into how JS Supermarket can improve its business performance through effective planning, resource management, and strategic decision-making. The report also incorporates the use of tools like Gantt charts and critical path analysis.

MANAGING AND
RUNNING A SMALL
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main consideration of small business or social enterprise needs to address when allocating
resources ................................................................................................................................1
TASK 2............................................................................................................................................4
P2. Different processes of customer relationship management in a small enterprise............4
P3. Ways in which business entities can develop transnationally and its advantages as well as
its disadvantages.....................................................................................................................5
TASK 3............................................................................................................................................6
P4. An annual itemised monthly cash flow forecast showing fixed and variable costs.........6
P5. Way of break even analysis is applicable in JS Supermarket..........................................8
P6. Interpretation on key financial statements for an organisation for contribution in
successful management..........................................................................................................9
TASK 4..........................................................................................................................................13
P7. Key legislation and regulations which have major implications on small business
companies.............................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Small medium enterprises are independent and non subsidiary firms in which number of
employees and their turnover is less as compared to to other business enterprises (Ali and
Babiker, 2017). In this present report, the chosen organisation here is JS Supermarket which is
operating its business activities from London, UK. This report is based upon how small business
or social enterprise plan and allocates resources in order to achieve their aims and objectives. In
this report, different process of customer relationship management, how small business can
develop transnationally and importance of break even analysis in different organisational
situation have been discussed. The major key legislations and regulations that can implicate
overall performance of small medium enterprise has also been discussed. In this report, there are
also various techniques which can help small medium enterprises in managing their cash flow
effectively and efficiently in a business environment.
In this present report, the chosen organisation is JS Supermarket which is founded by
Ramchandran Jalatheepan in 2014. The company is established as a small medium enterprises
and operating its business activities in London. The chosen organisation is mainly dealing in
food, beverages and grocery sectors in order to maximise their profitability. In this present case,
the customer reach of JS Supermarket is going down, which leads in creating negative effect on
overall performance of business organisation in competitive business environment. In order to
overcome from this situation organisation is developing an effective market plan to retain their
position in a dynamic business environment.
TASK 1
P1 Main consideration of small business or social enterprise needs to address when allocating
resources
In this present scenario, the UK government is continuously helping people in doing
business or opening a small medium enterprise in order to earn money. The major reason behind
this initiative is eviction of UK from European Union, this leads in improving their economic
condition at a global level (Chauma, 2017). Due to this initiative people are opening many
business stores and outlets in populated areas in order to achieve their goals and objectives. In
this regard, it is essential for small medium enterprise to identify technological requirement
because business environment is continuously changing in terms of technology. This will help
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them in providing innovative products to their customers in accordance with their needs and
requirement. In this context, it is essential for a business organisation to plan and allocate
effective resources, making effective marketing strategies and also to recruit effective employees
in order to make their workforce effective and efficient. It is also essential to make a business
organisation financially stable by allocating resources effectively in a business environment. In
regard to this present report, it is necessary for entrepreneurs of JS Supermarket to develop an
effective business plan that can help them in achieving their specific goals and objectives in a
business market. There are some factors which can effect overall performance of the chosen
organisation is discussed below as:
(a) Financial resources:
It is the important factor, which is essential for every organisation as it helps them in
operating their business activities effectively in a business environment. It is a type of resources
which are required to be utilise effectively because it helps them in managing raw materials and
manufacturing process (Cojoacă, 2017). In this report, the chosen organisation JS Supermarket is
established as a small medium enterprise, so it is essential for them to makes their organisation
financially stable in order to operate their business activities effectively in a business
environment. As per the above scenario, the chosen organisation is facing continuous decline in
their customers, which eventually effect their overall performance. In this case, the chosen
organisation can take loan from banks and friends as they cannot involve investors in their
business operation because they are established as a small medium enterprise. It is also essential
for them to utilise finance resources efficiently by cutting down their expenses, this will help
them in enhancing their overall growth in a business environment.
(b) Human Resource
This is also the important factors which can helps a business organisation in executing a
development plan effectively and efficiently in a competitive business market. In this present
report, JS Supermarket is developing a effective plan, which will helps them in improving their
overall performance. It is essential for the chosen organisation to invest in their human resource
department, which leads in making their workforce effective and efficient. It is necessary for
human resource department of JS Supermarket to recruit and select right person for a vacant job,
which will help a business entity in improving their overall performance (Durst, Yip and Lee,
2015). It is also necessary for human resource department of JS Supermarket to formulate
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effective business strategies that will helps them in retaining their productivity in a business
market for a longer duration. It also help employees of the chosen organisation in improving
their skills and knowledge, which leads in achieving their goals and objectives.
(c) Goal, vision and target
It is necessary for every organisation to set their goals, visions and target in order to
achieve their specific aims and objectives in a limited time frame. In this regard, the goal of the
chosen organisation JS Supermarket is to retain their customer satisfaction, which helps them in
maximising their profitability. On the other hand, vision of JS Supermarket is to be UK's largest
retail store, whereas their target peoples are between the age of 21 to 55.
In this context, it is essential that despite all above mentioned factors JS supermarket has
developed some ethical that will help in achieving targets and objectives at a timely basis. These
values have a very crucial role in achieving all laid down targets (El-Rafei and et. al, 2017).
Owners of JS supermarkets use a couple of tools and techniques that help them in future
planning as allocation as well. JS supermarket's managers undertake critical path analysis as well
as gantt chart which helps further in timely achievement of goals.
Gantt chart: A gantt chart is an essential tool in project management plan or operational
activities in a business concern.. It was developed by US based engineer Henry Gantt. Main idea
or aim behind using this controlling tool is to check whether production is being done within a
specified time frame or not. It provides entire details about operational activities to managers
within one go.
Critical path analysis: By involving this tool, all business entities aim towards staying at
their right paths as per requirements taking budget into consideration. This approach is used by
managers of JS supermarket so that they can easily achieve their assigned tasks within a set time
duration. This helps in maintaining efficiency and effectiveness of managers and employees in
JS supermarket.
TASK 2
P2. Different processes of customer relationship management in a small enterprise.
In today's fast growing world customer relationship management is very essential in a
business concern which aims to achieve growth and development. Customer relationship
management is an approach of management which help in developing effective communication
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and interaction strategies with current existing and potential customers. This report focusses on
strategies laid down by JS supermarket for maintaining effectiveness in its customer relations
thereby leading to sales growth and customer retention for JS supermarket.
In today's context , it has been found out that JS supermarket basically focusses on two
different approaches namely customer relationship management (CRM) and corporate social
responsibility(CSR). CRM is a method of analysing and understanding needs and wants of
customer and fulfilling them . For this many a times managers of JS supermarket even have to
bring about changes in their products and policies as per demands of customers. Another key
aspect followed by JS supermarket is known as CSR (Javaid and Iqbal, 2017). It is a process of
effective decision making in which managers of JS supermarket consider ethical needs of staff
and family members as well as main area of their operations. Both these operations are equally
important and help JS supermarket in maintaining its goodwill and competitive image in market.
Key CRM techniques which are used by JS supermarket are as follows:
Customer portfolio analysis: Customer portfolio analysis is an analytical tool which is
used by JS supermarket for evaluating standards and behaviours of customers . This approach is
very useful and helps managers to gain knowledge and information relating to purchasing power
and lifestyle of its customers. This process is considered as most effective tool of studying
customer's nature and behaviours. With involvement of this approach, it becomes easy and
convenient for owners of JS supermarket Ltd. For making judgements if they need to bring about
any changes in their products and services. Also, it helps in achieving a stable market position
and attract more and more customers in a specified period of time.
Customer intimacy: Customer intimacy is an important approach of customer
relationship management with which employers and managers of JS supermarket Ltd. Ascertain
maintenance of effective relationship structure with its customers or clients (Ludmila and
Stanislava, 2015). By this process, employers and managers can easily study about employees'
overall behaviour with their customers and their needs as well. JS supermarkets believe in
maintaining effective relationships with clients and try achieving it by taking feedbacks from
their customers regarding employees and their services. This process greatly influences
customers and builds their trust and loyalty towards JS supermarket. This process also helps in
decision making and solving problems of its clients.
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P3. Ways in which business entities can develop transnationally and its advantages as well as its
disadvantages.
Transnational operations is a name given to process that involves development of a
business concern globally through healthy relationship maintenance between headquarters as
well as international operations. This process helps in analysing and assessing current position of
a business entity. Furthermore, it also helps in effective decision making based on performance
of a company.
In context of JS Supermarket, it has been analysed that it helps managers in taking critical
decisions on basis of performance of its products (Nowotarski and Paslawski, 2015). This
process is very helpful in handling current market state of a business and also sales performance
of small scale business entities. This feature enables in handling productivity level. In JS
Supermarket, transnational sales process has been used for maintaining effective co- ordination
and also identification of opportunities that are available in international market. It helps
managers of JS Supermarket in targeting customers as per their requirements and quality of their
products and services. With help of this technique, analysation of demands of customers that are
living at different areas and belongs to different cultures can be done in much effective ways.
Consideration of this approach consists of different advantages as well as disadvantages that are
explained as under:
Advantages of transnational approach:
 This approach greatly helps JS Supermarket in bringing about any sort of modifications
as required in its production processes. This process also aims towards attracting larger
number of customers that are present in overseas market (O’Connor and Kelly, 2017).
Furthermore, it has been analysed that transnational operations play a significant role in
delivering right kind of opportunities to managers of a small business entity. It also works
towards promotion of JS Supermarket at global level. By using this approach, JS Supermarket can easily sell its goods at international level.
This will directly help in boosting sales performance as well as profitability of JS
Supermarket in global markets.
Disadvantages of transnational approach:
 Although this approach leads to growth and expansion of JS Supermarkets, but this
growth and development process will require certain effective strategies and policies that
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help in effectively expanding business operations. This will require ample of funds and
resources for executing a planned process which further leads to expansion of business
operations. JS Supermarket being a small scale enterprise may possibly fall short of funds
that are needed for expansion process. Therefore, it may not be possible for JS
Supermarket to afford this process for expansion.
 This approach of expansions requires managers of JS Supermarket to follow set standards
of achieving goals and objectives (Parkin, Fielder and Ashby,2016). This also involves
societal policies of a country they are operating in. This may not be practically possible
due to time involved in this process and there is also a possibility that amount of funds
required will also be high.
TASK 3
P4. An annual itemised monthly cash flow forecast showing fixed and variable costs.
Cash flow forecast is a key strategy in today's present scenario. It has been considered as
an effective planning policy that helps mangers of JS supermarket to reflect and evaluate their
income. Also, cash flow forecasting helps business entities for controlling unnecessary future
expenses. There are numerous sources which can be used for calculating cash flow and are
explained as under:
Equity finance: Equity financing is an activity in which a person or corporation sources
or borrows funds from an investor. Investors who provide this amount sign a deal with
corresponding party about sharing profits and losses to the extent of money provided by them.
This technique does not apply in case of JS supermarket as it is a small scale business concern so
it cannot borrow funds from shareholders rather prefers family, friends and relatives for this
(Skolud and et. al., 2016).
Bank loan: Bank loan is most widely used form of borrowing and availing funds by
almost all business entities. It helps JS supermarket in raising funds in a limited time frame
thereby helping in its smooth functioning. It is an effective method as banks only ask for their
interest rates as per funds provided by them.
Budgeting, planning and forecasting: These factors help managers of JS Supermarket in
evaluating trends and policies relating to monetary resources. All these techniques help a firm in
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determining both long term as well as short term plans. For this evaluation, managers of JS
Supermarket undertake following processes:
Measure moving average: This process helps in measuring and evaluating current
market position of JS Supermarket. Further it aids in analysing and gathering information which
helps in setting up of goals and objectives.
Time series data: This technique is used by managers of JS Supermarket for setting up
operational as well as production schedules. It helps in assessing time required by employees to
complete a production process. This process helps in execution of a plan at an estimated price.
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Interpretation: From the above stated balance sheet and cash flow statement it has been
ascertained that there was a rise of around 50000 pounds in 2018 as compared to 2017 and same
way cash flow statement also showed a surplus of around 28000 by the end of the year.
P5. Way of break even analysis is applicable in JS Supermarket.
Break even analysis is assumed to be an effective way of relating between profits, costs,
expenses and profits at varied levels for output generation (Break Even Analysis, 2018). It is
most effective in analysing relationship of various profit based terms used by JS Supermarket.
This process helps managers and owners of JS Supermarket in understanding and evaluating that
at which stage revenue generation and cost of production will be same.
This is an effective process that can be applied in two different situations revenue
relationship as well as non linear cost (Stanciu, 2015). Hence, this process has also been known
as profit contribution analysis. These methods can be applied in algebraic expression and
graphical representation of cost profit analysis. Managers of JS Supermarket uses algebraic
method for evaluating different situations and further helps in critical decision making.
Break even analysis can further be calculated as stated under:
TFC = Total fixed cost
P= Price
AVC = Average variable cost
Qb = TFC\ (P- AVC)
Furthermore, for a detailed understanding, it can be understood with an example which
has following values:
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AVC= 9
TFC= 40000
P= 18
Hence, Break even point in this case,
= 40000\ (18-9)
= 4444.45
P6. Interpretation on key financial statements for an organisation for contribution in successful
management
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