Love the Sales: Resource Management, Expansion, and Legislation

This report provides a comprehensive analysis of key business aspects for small businesses, using Love the Sales as a case study. It explores factors to consider when choosing the right resources, the advantages and disadvantages of Customer Relationship Management (CRM), and strategies for transnational development and international expansion, including internet presence, joint ventures, and franchising. The report also includes a break-even analysis to determine the point at which the business covers all costs, an examination of financial statements to interpret the organization's financial performance, and a discussion of relevant legislation affecting small businesses, such as the Employment Act 1996. The analysis highlights the impact of the Covid-19 pandemic on Love the Sales' financial performance, emphasizing the importance of effective debt management and business operations.

Unit 29

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Factors considered for choosing right resource in small business for accomplishing goals.......3
Customer relationship management advantages and disadvantages............................................4
Transnational Development and international expansion............................................................5
Break-even analysis.....................................................................................................................7
Financial Statements....................................................................................................................8
Defining Legislation and different legislations which effects a small business..........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Love the Sales is a UK based small business which is a retailer of different types of
products and services. In this project factors small business needs to consider are explained. This
project also explains the term customer relationship management for the main areas of the
business with its advantages and disadvantages. This project also defines the transnational
development and the ways in which the business can expand itself internationally. In this project
the break-even analysis is explained and calculated for the chosen organization. This project
defines the term financial statement for the business and utilizes it for the interpretation of
financial performance of the organization. In this project the term legislation and its effect the
small business has been explained.
MAIN BODY
Factors considered for choosing right resource in small business for accomplishing goals
The following are the factors which are suitable for the selection of the right resources in
Small business like Love the Sales,
Nature of business activity :
The types of resources which the business requires are directly related to its operations.
This is the reason why the business activity needs to be considered before the selection of the
different resources (Acs and et.al., 2018). The business activities include referring to its business
model, organizational structure and also the resources required by the company.
Scale of operations :
Even for the small business the type of resources it requires whether it is related to the
finance or individuals. This is the factor which the business needs to look at before selection of
the different resources of the organization. For an organization which needs to produce more
quantity of products it needs large number of employees whereas an organization with small
quantity needs to less.
Degree of control and management :
It is the degree of control which the management needs to consider before the selection of
its resources. This is because having a better control on the management can develop

effectiveness in the management organizational resources and also be able to be cost effective.
Thus, having a strong management means that the organization can be able to get more results in
productivity
Risk and liability :
The risk which is situated with the resources which are selected by the organization needs
to be considered before investing anything into the chosen resources. There is always a risk and a
liability with all kinds of resources which a small business has to consider thus, effective
measurement of the risk is very influential for the selection of the resources in the business. This
is very helpful for the business in the understanding in the management of the organizational
operations which is considered to be helpful for the organization operations.
Stability of business :
There are different ways in which the organization can be considered to be stable.
Stability of a business could be towards its financial position and management (Pearce, Pons and
Neitzert, 2018). Thus, it can be considered that it is very important for the business to choose the
business resources considering the stability of the business.
Customer relationship management advantages and disadvantages
Customer relationship management (CRM) is the technology which is used for the
management of the all the company's relationship which is considered to be essential factors of
the interactions of the customers and potential customers. It is the goal of the organization in
which the business is able to analyse the CSR system which is helpful for the organization in the
connection of the customers, with the streamline process of the business in improvement of the
profitability (Zerbino and et.al., 2018). The customer relationship management have different
types advantages which can influence
Better Knowledge of Customers:
It is considered to be unique method which helps the organization to become more
customer- centric. This is due to the fact that the CRM technique allows the businesses to
develop better understanding about the customers with the help of understanding their behaviour.
Retain More Customers:
Utilization of the strategies which are made after understanding the customer behaviour
helps the business in retaining the customer which it has lost. It helps the company in targeting
the customers which need some sort of acquiring for being retained.

Better Segmentation:
It is considered that with the help of proper segmentations of the market audience the
business is able to understand the systematic way in which the customer segmentation can be
made on the basis of different criteria.
Minimizes Cost:
For an organization being cost effective is a very advantageous way in which it can allow
the business to gain more advantages for the CRM of the business. It is considered to be the most
essential aspect as it increases its profit.
The disadvantages of CRM for Love the Sales are,
Business Culture :
The CRM has the potential to change the operations of an organization as it effects the
organizational culture. It can result in breaking down of the results which leads to loss of revenue
unless the business is committed towards its operations.
Poor communication :
Over dependency in the CRM software can effect the communication which is directly
between the business and the organization this is considered to be a very effective factor that can
damage the organization integration towards its operations (Pavone, Migliaccio and Simonetti,
2021).
Lack of leadership :
Due to the implementation of the CRM software it is considered that CRM can decrease
the organizational management of the company as it negatively influence the proposed plans of
the leaders and the focus of the management is the not really over the objectives,
Transnational Development and international expansion
Transnational development is the development of the information systems towards their
transcendence to both the national and organizational boundaries. It is considered to be the
system which focuses more towards the supranational body which makes the systems to be
considerable obliged.
For an business there are different ways in which it can enter the international market
such as,
Internet :

A business is able to expand its operation through the internet in which it utilizes
different online networking techniques which allows the business in the expansion of the
business by providing the products and services the international customers (Dang and
et.al.,2018).
Advantages Disadvantages
It allows the business to expand itself in any
part of the world.
The competition for such business is very high.
Less cost is required. The productivity of the business is limited over
the internet business practices.
Operations are considered to be very strong
and effective.
Risk of malware attack and hacking is there for
this organization.
Joint Ventures :
An organization can be able to expand its business by joining a partnership venture with
another local organization. This provides the business to expand its self in the organization and
also be able gain effectiveness in the operations of the organizational management.
Advantages Disadvantages
Opportunities for the company to gain new
capacity and experimentation is provided.
There is an unclear objective of the venture
which can create a negative influence in the
organization.
It helps the business to enter a market very
easily and gain access to operations.
There can be exploitation of resource by the
partners.
It can be helpful for the company towards the
generation of greater resources.
There can be dis-balance in the distribution of
the equal distribution of the organizational
benefits.
Franchise :

A business can expand in the international market with the help of the franchising its
company with another organization in the international market. In this method the business is
able to give fewer efforts, but the franchisee is able to use the brand name of the organization.
Advantages Disadvantages
It can be considered to be more talented for
growing the business for turning a profit which
an develops the business name.
It is considered to be the slower and less
efficient process towards the employee
recruitment.
With less business practices the organization is
able to generate effectiveness
Wrong franchisee can effect the reputation of
the whole franchisee.
It results in increasing the efficiency of the
higher quality levels of the organization.
Franchisee can negatively influence the
reputation of the whole franchisee
Break-even analysis
Break-even analysis is considered to be the financial calculation of the weight-age of the
cost related to the businesses. It can be considered that with the help of services and product's
unit selling price is very useful for the determination of the break-even point. This is that point at
which the business sells enough units for covering all the costs (What Is Break-Even Analysis
and How to Calculate It for Your Business?, 2020). This is the point at which the business suffer
neither loss nor profit. The break-even analysis is the financial calculation of which is used for
the determination of the company's break-even of the company's break-even point. The business
is considered to be very useful for the analysis of the adding costs which helps the business in
remembering the market conditions which helps in the analysing the market demand towards the
product for organizational benefits.
With the help of the following table the calculation for the Break-even analysis is shown
for Love the Sales.
For the calculation of the Break-even analysis the Unit contribution market is very
important. Unit Contribution Margin = Sales Price – Variable Costs

The break-even analysis has a very critical element which is towards the financial
projections for the start-up and is considered to be the new and expanded product lines (Torney,
2017). The determination of the break-even point helps the business in the determination of how
much money it wants to spend in the business or will be needed for the bank loans.
Financial Statements
Financial Statements are the formal records which are helpful for recording the financial
activities which helps the business, person or entity (Pamungkas, Ghozali and Achmad, 2017).
The balance sheet or other financial statements are very important for the organization as they
are the reports which represent the organization's assets, liabilities and the equity of the owners
for the given time.

From the analysation of the balance sheet of the company Love the Sales it can be
understood that this business has been suffering a lot during the 2020 year. This has been the
result due to the lack of proper management of the debt and other business operations. The major
reason due to which this business has shown poor financial performance is due to the impacts of
Covid-19 pandemic which has been impacting the business of the organization.
FINANCIAL RATIOS
Current ratio
Current Assets/Current Liabilities
=505662/872526
=0.57

This ratio shows that the business is unable to be efficient in the management of the its
assests from its liabilities. The idea ratio for the current ratio is 2:1 thus the performance of this
organization has dropped significantly in the year 2020.
Defining Legislation and different legislations which effects a small business
Legislation is the preparation an enaction of the laws which are stated by the national
legislatures in the context of the application of the municipal ordinance which are essential for
the management of the rules and regulations for the administrative agencies which are passed for
the exercise for the delegation of the legislative functions. It is considered to be the process
which is essential for the production of the enrolment towards the promulgating of the law of the
legislature. There are different legislations which effects the small businesses and their
operations. These legislations are certain laws and acts which are prepared for the management
of the activities of the business to be valid in the legislation. Following are the different types of
legislation which effects the small businesses,
Employment Act 1996 :
This is an employment law which refers to the piece of government legislation that is
designed for the protection of the employees from exploitation. For a small business this law is
very essential to be followed as it impacts the practices of its business operations (Troshani and
et.al.,2018). This law effects the recruitment practices in which the employer must provide a
contact of employment while hiring an individual. In this contract of employment the legislation
the pay of the employees also need to be set for the minimum level of the organization.
Discrimination should not be present in the organization which follows the employment act of
1996. The working conditions of the employees needs to be providing the business with a safe
working environment that can help the business to keep employees safe and be protective against
the unfair dismissal from the business.
Data protection Act 1998 :
It is that law which provides the individuals the right towards accessing their information
about themselves and also be held responsible towards the organization in the establishing
controlled collection of the stored and processing of data. This law effects the practices of a
small business because it is considered to be the law which impacts the business in how
impactful the organization is towards the management of the organizational policy towards the

data of the customers and employees (Hess, 2019). The non-compliance of a business towards
the enforcement of notice against the business operations towards the prevention and processing
of the data. Thus, it is considered that a business needs to be very effective towards the
prevention of the business and be helpful towards the operations of the significant fines. The
business needs to develop effectiveness towards the management of the directors which can be
held personally liable for the activities that is utilizing data for the non-compliance in nature.
Company law 2006 :
The companies act of 2006 is the main consideration of the legislation which helps the
business in the governance of the law of UK. It is the longest piece of the legislative behaviour
which is helpful for the business in enacting in the organization. The aim of this law is to
modernize and simplify the company law with changes in the duties of the directors, granting
certain rights to the shareholders and also being simplified towards the administrative burden for
the UK companies. This law effects the business in such a way that it introduces a new right to
the shareholders which helps the business in taking actions against the directors of the company.
This is the way in which the company alleged the breaching towards their duties of the company.
Company law 2006 also effects the business as they are required to prepare and publish the
business a review of the annual accounts and reports.
CONCLUSION
With the help of this project it can be concluded that there are many factors which a small
business needs to consider before the selection of its resources. In this project a critical analysis
of the pros and cons of the customer relationship management has been shown. This project also
analysed the methods which the business can use to enter an international market. In this project
the break-even analysis has been discussed which effects the business for understanding the price
a margin it should keep being profitable. This project helped in understanding the financial
statements of this business and explained the different legislations which impacts the business
towards the organizational practices.

REFERENCES
Books and Journals
Acs, Z.J., and et.al., 2018. Entrepreneurship, institutional economics, and economic growth: an
ecosystem perspective. Small Business Economics. 51(2). pp.501-514.
Dang, N.H., and et.al.,2018. Effects of financial statements information on firms’ value:
evidence from Vietnamese listed firms. Investment Management and Financial
Innovations. 15(4). pp.210-218.
Hess, D., 2019. The transparency trap: Non‐financial disclosure and the responsibility of
business to respect human rights. American Business Law Journal. 56(1). pp.5-53.
Pamungkas, I.D., Ghozali, I. and Achmad, T., 2017. The effects of the whistleblowing system
on financial statements fraud: Ethical behavior as the mediators. International Journal of
Civil Engineering and Technology. 8(10). pp.1592-1598.
Pavone, P., Migliaccio, G. and Simonetti, B., 2021. Investigating financial statements in
hospitality: a quantitative approach. Quality & Quantity. pp.1-25.
Pearce, A., Pons, D. and Neitzert, T., 2018. Implementing lean—Outcomes from SME case
studies. Operations Research Perspectives. 5. pp.94-104.
Soltani, Z., and et.al.,2018. The impact of the customer relationship management on the
organization performance. The Journal of High Technology Management Research.
29(2). pp.237-246.
Torney, D., 2017. If at first you don’t succeed: the development of climate change legislation in
Ireland. Irish Political Studies. 32(2). pp.247-267.
Troshani, I., and et.al.,2018. Digital transformation of business-to-government reporting: An
institutional work perspective. International Journal of Accounting Information Systems.
31. pp.17-36.
Zerbino, P., and et.al., 2018. Big Data-enabled customer relationship management: A holistic
approach. Information Processing & Management. 54(5). pp.818-846.
Online
What Is Break-Even Analysis and How to Calculate It for Your Business?, 2020[Online].
Available through: <https://www.netsuite.com/portal/resource/articles/financial-
management/break-even-analysis.shtml#:~:text=A%20break%2Deven%20analysis
%20is,cover%20all%20of%20your%20costs.>