HNHM346: Report on Managing and Running a Small Hospitality Business

This report, submitted by a student, offers a comprehensive analysis of managing and running a small hospitality business. It begins with an introduction to the importance of planning and resource allocation, emphasizing their role in achieving business objectives. The report then delves into the application of tools and techniques for resource allocation, followed by a critical analysis of resource allocation's impact on business goals. Customer relationship management (CRM) strategies are examined, focusing on acquisition, retention, and customization. The report also explores transnational business development, outlining advantages, disadvantages, and recommendations for overcoming challenges such as language barriers and competition. Furthermore, the report covers key legislation and regulations affecting small businesses, along with financial aspects like cash flow forecasting, break-even analysis, and interpretation of financial statements, culminating in recommendations for successful business management.

Managing and Running a
Small Business
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Contents
PART 1............................................................................................................................................3
INTRODUCTION...........................................................................................................................4
1.Discussion of the main consideration and assessment of the importance of planning and
allocating resources to achieve the business objective for a small hospitality organisation.......4
Importance of planning as well as allocating the resources for accomplishing objective in short
span of time which is going to be mentioned below:..................................................................4
3. Application of relevant tools and techniques in a structured and analytical way to plan and
allocate resources in an organisational context...........................................................................5
4 Critical analysis of the application of appropriate resources to demonstrate links between
resource allocation and achievement of business objectives.......................................................6
5. Determine the customer relationship management for small and social enterprise................6
6. Explanation of how a small business can develop transnationally with an assessment of the
advantages and drawbacks using a relevant model.....................................................................7
7. Recommendations for overcoming challenges of developing transnational operations.........8
8. Discussion and critical evaluation of the key legislation and regulations that affect small
businesses or social enterprise organisations, taking future developments and changes into
account.........................................................................................................................................9
Conclusion.....................................................................................................................................10
PART 2..........................................................................................................................................10
INTRODUCTION.........................................................................................................................10
Cash flow forecast that shows fixed and variable costs............................................................10
Application of Break even analysis...........................................................................................13
Interpretation of key financial statements and its contribution in successful management of
business......................................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
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PART 1
4

INTRODUCTION
In every organisation ,planning is essential in every stage for operating business
activities and functions in systematic way. It is important to understand how to operate small
business for achieving goal and objective of business organisation in an effective manner. In
addition to this, it is necessary for the manager of company to build the good relationship with its
user in order to satisfy them. Also they focuses on assigning resources, predicting as well as
making a budget for examining the financial statement of the company. This report is carried
upon Adam and Company PLC, the manager of this bank focuses on providing superior quality
services to its client in order to retain them for a long period of time. Apart from this, the main
focuses of bank is to satisfy the client’s needs and want in order to maintain good relationship
with them.
1.Discussion of the main consideration and assessment of the importance of planning and
allocating resources to achieve the business objective for a small hospitality organisation.
Small business organisation needs planning as well as optimum utilisation of resources
in order to operate its business activities and function in an effective manner. In assistance of
this, they assign the resources in order to make an effective budget for forecasting the future
income of the business organisation. In context of Adam and Company PLC, the manager of this
bank focuses on making effective strategy, plan and policy in order to accomplish goal and
objective within a given period of time. In addition to this, they allocate the resources in such a
way that helps them in increasing the future income of the bank. Therefore, the manager of this
bank make appropriate plan for need of resources in future time period for satisfying the need
and requirement of customer in better way (Sung, 2018).
Importance of planning as well as allocating the resources for accomplishing objective in short
span of time which is going to be mentioned below:
Boost productivity: It is one of the most common method that is considered while
planning and assigning resources for increasing the productivity as well as profitability level. In
relation of Adam and Company PLC, the manager emphasised on assigning the resources in
order to boost the productivity as well as proficiency level (Nguyen, 2018).
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Strategic Planning: It is necessary for the manager to set the goal and objective in order
to accomplish the vision within given period of time. In context of Adam and Company PLC, the
supervisor set the plan in order to achieve the vision of the company in short span of time.
Eliminate risk: The planning and assigning of resources helps in reducing the risk with
higher rate of return. In reference of Adam and Company PLC, the manager emphasised on
reducing the risk with maximum profit.
3. Application of relevant tools and techniques in a structured and analytical way to plan and
allocate resources in an organisational context
There are some relevant tools and techniques to allocate resources in the organization –
Expert judgment – To allocate resources in proper way company need expert advice and
judgement, expert with good experience help in the proper and effective allocation. Adam and
Company PLC manager allocate company resources properly with expert advice.
Alternative analysis – Alternative analysis means analyse and examine various options
to choose better option. Adam and Company PLC also examine various alternative options in
order to find best option (Furniss, 2018).
Project management software – Various software also help in resources allocation;
project management software helps the company’s project manager in estimating requirement
and needs of the resources.
Bottom-up estimating – In this technique some complex activities and tasks are divided
into small sections or parts to get proper resource requirement. Adam and Company PLC use this
technique to find the individual tasks resources requirement or cost.
Make ‘optimal utilization’ the benchmark – Optimal utilization of available resources
is also help in determining the needs and requirement of the resources. Adam and Company PLC
manager take care of their available and try you use the available in such way which helps in
proper allocation and optimal utilization of the resources (Goldstein, 2019).
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4 Critical analysis of the application of appropriate resources to demonstrate links between
resource allocation and achievement of business objectives
Effective allocation of resources helps in achieving business objectives and goals. Critical
analysis of the applications like strategic planning, budgeting.
Strategic Planning – Resource allocation is starts with strategic planning companies
prepare their vision, mission, objectives for future. The vision and mission accomplish through
the objectives. Victorious strategic planning makes sure that companies resources allocate
properly. If company establish strategic plan for allocating workers and supplies this reduce the
cost of the company. Adam and Company PLC managers prepare their plans in effective way in
order to achieve goals by properly allocate resources of the organization. Company also set their
vision, mission, objectives to accomplish the organizational goal in future.
Budgeting – Once company set their objective than they need to formulate proper budget
to achieve the company’s objectives effectively and efficiently. Companies allocate budget for
market research, product development and design, promotional activities, funds for production,
purchase raw material, hiring employees and for various other purpose in order to achieve
companies objectives and goals. Adam and Company PLC prepare proper budget plan to allocate
resources to achieve the objectives effectively. Company allocate funds for market research to
determine customers needs and wants, to promote their brand in the market, and also allocate
budget to recruit the talented employees (Taha, 2020).
5. Determine the customer relationship management for small and social enterprise.
Customer relationship management is the process in which company managing
relationship with its current and prospect customers by interacting with customer and analysing
their behaviour and preferences. It involves data analysis of its customers' past records with a
company to enhance relationships with its customers. Customer relationship management
specifically aims at customer retention by enhancement of relationship with customer and
simultaneously driving sales growth.
Different Aspects of Customer relationship management
Acquire & Retain – The first and foremost aspect of CRM is to acquire a customer so
that resources are effectively utilised. An effective customer marketing strategy helps in identify
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and acquire more customers. Customer retention is also an important aspect so that customer
satisfaction is derived and customer relationship can be enhanced. In context to Adam and
Company , the manager focuses & tries to earn customer loyalty, and simultaneously achieve
company goals (Dewnarain, 2019),
Understand & differentiate – Organizations cannot have a relationship with customers
unless they understand them...what they value, what types of service are important to them, how
and when they like to interact and what they want to buy. Proper understanding helps in
differentiating services to be rendered. In relation with Adam and Company PLC, the manager
first understand customers need and behaviour and then provides services accordingly.
Develop & customize – products and services has to follow the customer’s needs and
provide them satisfaction. Organizations are increasingly developing products and services,
based on customer needs and service expectations. In context to Adam and Company PLC, the
manager does a deep research and customises their products and services basis customer’s need.
Interact & deliver - Interaction is also essential for a successful CRM. It is an
continuous process and helps in maintaining customer relationships and helps deliver sales
growth. In context to Adam and Company PLC, the supervisor ensures proper interaction with
customer and achieves company goals. Ogbu Edeh, 2019).
6. Explanation of how a small business can develop transnationally with an assessment of the
advantages and drawbacks using a relevant model
Transnational business are very difficult and need multitasking skill as well as knowledge
in order to achieve the goal and objective of organisation. Small business focuses on grab
opportunities at broad level. In context of Adam and Company PLC, there are some benefits and
drawbacks which is going to be mentioned below:
Advantages
 The transnational operations assists the small business in order to explore at broad level
as well as maintain strong channel of distribution within market.
 This also helps in optimum utilisation of resources on order to boost brand image nad
goodwill of Adam and Company PLC (Domanski, 2019).
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Disadvantages
 It is difficult for the manager of small business to hire highly skilled and talented
employees in order to operate the transactional business in better way. In context of
Adam and Company PLC, it is difficult for the supervisor of bank to hire a talented a nd
capable employees in order to operate the business function in an appropriate manner.

 It is not possible for the small business to have an experts to operate the business in
successful manner can be considered as the adverse impact for the Adam and Company
PLC.
 The procedure of transnational business takes too much time in order to achieve goal and
objective of Adam and Company PLC in an effective manner.
7. Recommendations for overcoming challenges of developing transnational operations
There are various challenges faced by companies, to overcome from these challenges’
companies need to do proper planning. In order to get succeed in the market company face
various challenges and their solutions are –
Language and cultural barriers - There are various languages and cultures followed in
the world and this become challenge for the companies. If company is not able to speak same
language as their customer speaks this is the big challenge for the company, to overcome from
this company need to appoint at least one or two candidates who know local language. To
overcome from this challenge language translator is the better tool (Moreta, 2018),
Local competition – Companies also face high level of competition at local or domestic
level. Company can easily overcome from this challenge by maintain good relationship with
local businessman and company also can adopt the method of cost and product differentiation to
reduce the competition.
Supply chain risks – Companies need to maintain and manage effective supply chain;
many companies face challenges while suppling goods and services to the customers so for this
company need to maintain good relationship with their suppliers. To overcome from this
challenge company can develop plans and strategies to maintain the supply chain.
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Hiring Staff – Sometime hiring effective and efficient candidates also become a
challenge for the company for this company need to prepare job description, also need to analyse
the requirement of the staff, allocate proper budget for hiring new staff (Bartley, 2018).
8. Discussion and critical evaluation of the key legislation and regulations that affect small
businesses or social enterprise organisations, taking future developments and changes into
account
There are various government legislation and regulations that affects small enterprise –
Tax Code – Every registered company have to pay taxes. Taxes are payable by every
company in the countries. The kinds of taxes companies pay is depend on the form of the
business. Companies pay state tax under which state they are registered. There are few common
taxes which every company have to pay are Income tax, Estimated tax, Employment tax, Excise
taxes.(Sung, 2018).
Employment and Labour Law
There are various rules and regulations on small enterprises for the workforce, companies need
to follow this law in order to provide safety and security to the employees and labours. Some
common employment and labour laws are Wages and hours, Workplace safety and health,
Employee benefit security, Equal opportunity, Family and medical leave.
Advertising – There are some government rules and regulation on the advertisement. If
company want to promote their product and service through advertisement than for this company
need to follow some regulations of government (Nguyen, 2018).
Environmental Regulation – Every type of enterprises needs to follow environmental
regulation in order to protect our environment. There are various Environmental protection laws
formed according to the type of industry and business. Organizations need to prepare clean
products, organic and eco-friendly products to protect our environment.
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Conclusion
From this report we can conclude that proper organizational planning is important for the
organization to allocate resources of the organization effectively in order to achieve objectives
and goals within time frame. Adam and Company PLC also need to maintain good relationship
with their customers to attract and satisfy them. Company face many challenges and to overcome
from these challenges company need to develop make plans and strategies. Company follow all
the government rules and regulations to maintain good image in the market.
PART 2
INTRODUCTION
Small business management introduces as a process that is use on entrepreneurs when
running their business activities and also operations. In this, entrepreneur may lead to know
about how to manage workforce, correctly report financial data, obtain economic resources
or business assets as well as make different business decisions in accurate manner. Small
business enterprises are the type of firms which are running their business with less work force
and funds. It is very essential for the business managers of such firms to run all the activities of
an enterprise appropriately (Burns, 2016). This part of the report is based on John & Jenny E-
commerce service that has decided to open an information technology (IT) business. Company
mainly specialising in providing of e-commerce services to customers. Main purpose of doing
this part of project is developing and analyse a cash flow forecast, budget and break-even
analysis and interpret key financial statements.
Cash flow forecast that shows fixed and variable costs
A cash flow forecast introduces as a plan that present how much amount of capital an
organisation expects to collect in, and pay out, over a set of time period. It is a type of statement
that is used by an organisation for analysing information about the inflows and outflows of the
cash. This statement is basically prepared for particular time duration (Chauma, 2017). It
supports each stakeholders of an organisation to examine that company is financially or
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monetarily strong or not. While John & Jenny E-commerce service is willing to develop its
business at different level than it is very essential for the business managers to predict potential
expenses or costs that may take place within future (Taroreh and Mandey, 2019).
Cash Flow Statement
Particular June July
Opening Balance Nil 4200
A) Receipts
Cash Sales 2500 2500
Debtor nil 7500
Total 2500 5800
B) Payments
Office rent £ 1000 1000
Office furniture 500
Marketing 500 500
Legal and accounting costs 200 200
Salary 2000 2000
Project materials ( 1000
Sub-contracted labour ( 2000 2000
Other sundry cost 500 500
Total (B) 6700 7200
Closing balance -4200 -1400
Statement of Income
Particular Amount
Sales 20000
- Variable cost 6400
Contribution 13600
- Fixed cost 7500
Profit 6100
PV Ratio
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