Analyzing Business Strategies: A Report on JS Supermarket, UK

This report provides a detailed analysis of JS Supermarket, a small business operating in the UK, focusing on key aspects of its management and operations. It explores resource allocation, including financial and human resources, and the setting of clear business goals. The report also examines the supermarket's customer relationship management (CRM) strategies, such as customer portfolio analysis and customer intimacy, alongside its transactional operations approach to global markets. Furthermore, it discusses the importance of cash flow management and potential funding sources like equity finance and bank loans. The analysis includes both the advantages and disadvantages of various strategies, culminating in recommendations for JS Supermarket to overcome challenges and optimize resource utilization. Desklib offers more solved assignments for students.

MANAGING AND
RUNNING A SMALL
BUSINESS
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INTRODUCTION
Small and medium enterprises are defined as the entity which are working in independent
manner and associated with mediocre turnover and number of employees (Altinay, Sigala and
Waligo, 2016). This report is prepared in order to understand all the major concepts of small
business in the context of JS Supermarket. JS Supermarket is running a small business in UK.
For achieving business objectives social enterprise plan is to be undertaken by businesses. Along
with this the report is consisting of customer relationship management plan which is helpful for
business to manage their customer in prominent manner. JS supermarket was founded by JS
supermarket was found by Ramchandran Jalatheepan in the year of 2014 and the company is
performing business activities in retailing of grocery items.
TASK 1
P1
UK is highly supportive for small businesses as these are providing assistance to the
economy to develop. There are various aspects which are required to be undertaken by small
business in order to allocate resources and to satisfy needs of their potential and existing
customers as well. In the context of JS supermarket they are managing their resources in optimal
manner so as to deal with their objectives and attaining them in early manner:
(a) Financial resources:
This is one of the significant factor in which assistance can be provided to the business in
order to attain high succession and efficacy. These resources are having capability of conveying
financial assistance to the business so that to provide grip to operations. JS supermarket is a
small business entity so for them the major element is to gather funds by banks or other investors
so that to manage their business functions (Burns, 2016).
(b) Human Resource
This resource is assisting business to execute prepared plans in distinct manner so that
aims can be accomplished. In the context of JS supermarket the company is required to invest in
their human capital as being a small business employees are regarded as their major asset which
may help them to run business in effective manner. Along with this human resource department
is introducing robust strategies so as to make path of goal achievement.
(c) Goal, vision and target
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For attaining success goals are required to be set in transparent manner. So in context of JS
supermarket the management is setting and conveying objectives in clear manner so that to avoid
any confusion within attaining the same. The major goal of the company is to target those people
who are prone to use new things (Ewert and Maggetti, 2016).
M1
Gantt chart: A Gantt chart is a production tool which is used by production manager in
order to maintain record of schedule of assigned project. This is a tool which is used in project
management and to allocate resources to varied situations in semantic manner. JS supermarket
may use this tool in order to analyse level of completion of tasks.
Critical path analysis: With the help of this tool project activities can be scheduled by
which proper evaluation can be made. By using this tool JS supermarket select their requisite
path in order to attain effectiveness within project.
M2
Allocation of resources is essential for the business so as to attain their objectives in
prominent manner. Planning is essential for setting goals along with providing right amount of
time within all activities. On the other hand resource planning is helpful in building transparency
due to which maximum capacity can be attained. In the JS supermarket by allocating resources in
prominent manner visibility can be provided to business which leads the company to attain their
aims in early manner.
D1
Allotments of appropriate resources are helpful for the business to attain their objective in
primal manner. This is an essential task for the business in order to manage resources and their
application in suitable manner by which operational efficacy can be attained by business. When
operational activities are executed in proper manner these can be aligned with organisational
goals in clear manner.
TASK 2
P2
Customer relationship management is considered as one of the significant aspect in
attaining growth and development within business. Customer relationship management is
defined as the approach which enables the organisation to establish effective communication by
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using robust strategies. There are numerous strategies which are used by JS supermarket by
which they are making effective relationship with their customers and to enhance overall sales in
short run.
Two approaches are used by JS supermarket named customer relationship management
and corporate social responsibility (Freel and Robson, 2017). CRM is defined as the approach
which is used by businesses in order to understand and convey needs and demands of their
customers according to prevailing market conditions. On the other hand CSR is defined as those
movements which are used by JS supermarket in order to provide benefits to the society. These
dimensions are helping business to deal with stakeholders in such a manner that competitive
edge can be attained. Here are some approaches which are used by JS supermarket within CRM:
Customer portfolio analysis:
Customer portfolio analysis is defined as the tool which can be utilised by JS supermarket
for the major purpose of understanding customer behaviour and standards. This is a helpful tool
in which management is putting wide efforts so as to recognise buying trait of customer and
accordingly changing offerings. This tool is highly beneficial for the business in examining
market and customer traits and behaviour in the process of buying. With the help of this tool JS
supermarket can take prominent decisions which could lead them to attain business growth and
development. This is assisting the business to alter their product and services in such a way that
these can be aligned with needs of customers.
Customer intimacy:
Customer intimacy is defined as the tool which can be used by businesses in order to
proper relation can be established between employer and employee of the organisation. This is
an advantageous tool used in order to examine behaviour or employees towards satisfying needs
of their customers. JS supermarket is wholly focused on recognising needs of customer and
making effective relationship with them as well (Guha, Harrigan and Soutar, 2018). Within this
process timely feedbacks are being collected by the organisation in order to enhance portfolio of
loyal customers.
P3
Transactional operations are defined as the process under which development of business
takes place along with fulfilling major concern to make effective relations ate global periphery.
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This approach is helpful for the business to analyse and examine their current market scenario
which could lead to draw effective impact over business performance.
This is known as the concept under which critical decisions are being taken by
management by which further modifications can be provided to the product. This process is
helpful in attaining high advantages by which current market position can be retained and sales
of small business can be enhanced. This feature is assisting in order to manage overall
productivity of the business. In the context of JS supermarkets transactional sales process is used
by them in order to enhance their global market opportunities. This tool is used by the company
in order to manage their supply at global level along with maintaining prominent quality in their
products. This may lead them to manage customer demand in a manner that to align culture and
their belongings. Advantages and disadvantages of this aspect are elaborated as under:
Advantages of transnational approach:
 This approach is helpful for JS supermarkets in the process of introducing major changes
within production process due to which high value can be added to the business. The
major objective of this aspect is to attract huge customers from global periphery.
Transactional approach is obtained with major role of examining market opportunities
within small scale business through which business can be promoted within global
markets (Hanssens and Pauwels, 2016).
 This is known as an effective tool so by which JS supermarkets can make path in order to
sell goods at global market which may enhance their profitability and performance as
well.
Disadvantages of transnational approach:
 This approach requires high systematic strategies in which activities are required to be
performed. On the other side for executing these activities high capital investment and
resources are needed through which business expansion can easily be managed. As JS
supermarkets is an emerging business so this is difficult for them to arrange such funds
and resources in their development stage.
 On the other hand at global stage society is also included in this process. For attaining
high satisfaction of society time and more investments are needed and for this various
rigid policies which are difficult to be adhered by the business.
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M3
Various elements are there which are playing essential role in process of customer
relationship management. These are helping business of JS supermarkets in attaining their goals
and objectives. Following are those elements:
 Understanding market and customers: For attaining high success over business
market needs and customer perception are required to be undertaken. This helps JS
supermarkets to offer products according to needs of customers.
 Gain trust of customers: In order to sustain and maintain effective relationship with
customer this is essential that to gain trust of them by providing higher quality
products (Hillary, 2017).
 Retaining customers: JS supermarkets may use various possible strategies for
retaining customers by offering prominent promotional schemes.
M4
Stage model: This is regarded as process theory of internationalisation in which various
aspects take place such as integration, acquisition and many more which can be used in order to
launch any product within international market. This approach can be used by JS supermarkets in
the process of their internationalisation and to earn profits as well. Advantages and drawbacks of
this method are elaborated as under:
Advantages:
 This is helpful in introducing products at global market level.
 This may be assist JS supermarkets in enhancing their sales and profits as well.
Drawbacks:
 High investment is needed which is not possible for a SME, so this is the major drawback
for JS supermarkets.
 High time and resources are needed in order to expand business in international
boundary.
D2
For all businesses this is imperative that they manage customer relationship at every
possible stage so as to enhance customer retention and enhance sales as well. In the process of
launching business at transnational level then different challenges are being faced by JS
supermarkets such as financial resources and time (Jia and et. al., 2020).
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Recommendation: In order to overcome from these challenges, budgets are required to
be formulated by JS supermarkets so that all the resources can be utilised in optimal manner.
This is helpful in carrying out all the business activities in primal manner.
TASK 3
P4
Cash flow statement is defined as a statement which entails regarding inflow and outflow
of cash. This is regarded as the most significant strategy which can be used by JS supermarkets
in order to manage their cash flow and determine income. This is an advantageous tools by
which JS supermarkets may execute controlling measures in order to control their unnecessary
expanses. There are various sources within cash flow calculation which are explained as under:
Equity finance: Equity financing is defined as the activity in which funds are gathered
through investors. Under this a deal is being signed by investors for sharing profits and losses in
lieu of landed money. In the context of JS supermarkets the organisation is a small and medium
enterprise so this option is not suitable for them as investors are not showing interest to invest in
this company (Kordos and Vojtovic, 2016).
Bank loan: Bank loan is one of the prominent methods which can be utilised by JS
supermarkets in order to provide assistance over expanding business operation. This is helpful
for the business to raise funds so as to provide smooth functioning in appropriate manner. Under
this interest amount is required to be paid by the bank in lieu of funds obtained.
Within this interest amount is to be given to the bank on the rendered funds.
Budgeting, planning and forecasting: This factor is assisting manager of JS
supermarkets so as to take prominent decision about monetary sources. This is helping business
in attaining long and short term business benefits and to attain success over business functions.
Under this approach various steps are being followed by JS supermarkets which are elaborated as
under:
Measure moving average: This process is highly advantageous for business in order to
examine market image. Similarly this is assisting JS supermarkets in gathering information
regarding goals and objectives of the organisation.
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Time series data: This tool is utilised by JS supermarkets for the major purpose of
examining their production schedules through which a proper schedule can be given to
employees in order to finish given task in more precise manner along with estimating prices.
Cash flow statement for JS supermarkets is shown as under:
Forecasted Cash flow Statement
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From the above forecasted cash flow it has been analysed that organisation may receive a
surplus of 6392 in upcoming period, total variable expenses are 63753 and total fixed cost is
24000. Total estimated revenues of the company are 94145.
P5
Break Even analysis: It can be defined as the point where the organisation is not in profits
and loss. At this stage all the expenses of the company get recovered with the sales of the
products. Formula for calculation break-even point is as follows:
As JS supermarkets is willing to expand their business outside UK so for this covering fixed cost
is necessary so as to meet expenses in optimal manner. With the help of BEP analysis total
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expenses can easily be recovered by JS supermarkets in optimal manner. This analysis guides
production process in such a way that they can produce appropriate units in order to meet BEP
sales.
Application of BEP:
 This is used in order to calculate the actual point at which superior profits can be
accomplished by the organisation.
 BEP analysis guides manager to set the prices for the manufactured products.
 Management of the business may get an idea regarding cost of manufacturing through
which proper strategies can be made (Mazzarol and Reboud, 2020).
Illustration 1: Break even point
From the above image this can be demonstrated that break-even point is defined as the
point at which total cost and revenues are overlapped.
P6
Financial statements: These are defined as a statement which is prepared by accountant
and business manager. In this internal and external stakeholders are analysed through which real
profit or loss of the organisation is calculated. Major objective of financial statement is to
recognise real financial performance of the organisation so that to analyse position of the
company. In the context of JS supermarkets description of financial statement is elaborated as
under:
 Income statement: This is prepared in order to summarise income and expenditure of a
particular organisation so as to analyse overall profitability. In the context of JS
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supermarkets income statement is prepared by them so as to determine level of income
and expenditure of organisation for some particular manner (O'Brien, 2018).
 Balance sheet: This is prepared by organisation in order to analyse performance of the
organisation from all the dimensions. This is associated with liquidity, assets, liabilities,
liabilities and other elements which are required to be shown to stakeholders so that they
can take strategic decisions. This is helpful for stakeholders so as to recognise position of
the organisation that whether it is sound or not so as to take their decision regarding
making investment.
 Cash flow statement: This is a statement in which all the transactions related to cash are
recorded whether it is inflow or outflows. This is assisting the organisation in order to
determine their actual liquidity position for some particular period of time. Here is
financial statement for JS supermarkets:
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From the above statements it ash been examined that Gross profit of JS supermarkets is
3500, total sales is 15000 and cost of sales is 11500. Net profits of the company according to the
income statements are 1240 which depicts sound financial position of the company. From the
balance sheet of the organisation it has been examined that organisation is having 3500 cash and
total assets of the company are 19400. Organisation is having internal liabilities which include
equities worth 9240 and total liabilities of 10160. From the cash flow of the company this is
examined that total cash retained with JS supermarkets is 3500. According to above analysis this
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can clearly be seen that JS supermarkets is earning prominent profit due to which they are
showing sound financial condition.
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From the aforementioned calculation this is analysed that JS supermarkets is obtained
with appropriate profitability in which they have ample amount of liquid funds by which they
can meet their routine obligations in appropriate manner. On the other hand, calculated ratios are
depicting good financial position of JS supermarkets.
M5
Analytical and quantitative techniques are playing prominent role in calculation of cash
flow and break even analysis for an organisation. These techniques are used by businesses in
order to amplify their overall performance of business (Raab, Ajami and Goddard, 2016). These
approaches are helping various stakeholders to examine actual position of the company in
financial and functional manner. Cash flow is used in order to calculate position of inflow and
outflow of cash in such a way that actual financial position and liquidity of the organisation can
be ascertained. At last BEP analysis is helping the business to calculate number of units required
to be sold in order to recover their fixed expenses. This helps JS supermarkets to examine point
of recovery of their expenditure.
D3
Financial statement such as income statements, cash flows and balance sheet are prepared by
the organisation in order to examine actual financial position of the organisation. In context of JS
supermarkets financial statement are helpful for the management in order to take various
decisions regarding expansion and investment. This also provides direction to numerous
stakeholders in taking strategic decisions regarding their investment decisions. On the other hand
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financial statements are assisting business managers in formulating different strategies which are
helpful for the business to succeed and earn high profits. With the help of financial statements
successful planning for business succession can be made by manager through which long term
benefits can be attained (Salas-Molina and et. al., 2017).
TASK 4
P7
For every business this is highly essential that they follow laws and legislations in effective
manner so as to stay adhered to governmental regulations and to avoid any legal proceedings
which may hamper goodwill of the organisation in proper manner. There are some legislation
which are followed by JS supermarkets, are elaborated as under:
Health and safety act 1974: According to this Act, businesses are required to inhale those
manufacturing processes which are not providing any damages to employees. In the context of
JS supermarkets as the organisation is dealing in retail business so this Act is applied by
management of the organisation so as to provide value to their employees and perform functions
in sufficient manner (Storey, 2016).
Data protection act: This Act provides guidance regarding protection of confidential
information of customers and employees in order to protect the same from any mis-use. In the
background of JS supermarkets executives of the organisations are using this Act in order to
safeguard data of their employees and customer as well.
Record keeping act: Under this Act businesses are directed to maintain proper record of
activities which are carried within the organisation in ordinary and extra ordinary course of
action. In the context of JS supermarkets, this provides safety to the organisational working from
any illegal activities. So by applying this Act trust of stakeholders can be enhanced as accurate
information can be rendered by them.
M6
There are numerous legislations which are propounded by legal authorities existing in the
nation due to which varied business operations can be managed in effective manner. Small and
large organisations are abiding to these laws so as to manage their operational activities in barrier
free manner. In the background of JS supermarkets, they are utilising all the legal bindings in
such a manner that positive impact can be seen on performance and sustainability of the
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business. The major impact of these laws and legislations are drawn on keeping data in secured
manner so by which detailed report can be obtained (Vidgen, Shaw and Grant, 2017).
D4
Key regulation including data protection Act, record keeping, health and safety act which
affects the business in prominent manner. In the context of JS supermarkets these legislations are
affecting their business in positive and negative manner. By keeping detailed record negative
impacts can be eliminated, besides this for small organisation such as JS supermarkets it is not
possible to abide with all the rules as these create complexities in business (Wang and et. al.,
2016).
CONCLUSION
From the above detailed report this can be concluded that operational activities are
required to be executed by small businesses so that to attain success and their desired goals as
well. By non-abiding to these approaches profitability and overall liquidity of the business can be
hampered in negative manner. For every small business this is highly essential that they manage
their customer in such a way that potential customer can be converted to loyal customers. In the
path of launching business to newer location forecasting of expenditure are required to be made
so that to make high profits during expansion program.
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REFERENCES
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