Report on Managing and Running a Small Business: Unicorn Grocery

This report analyzes the management and operation of a small retail business, Unicorn Grocery, focusing on key considerations for small businesses and social enterprises. It explores financial resource management, workforce development, and goal setting. The report details the application of tools and techniques like Gantt charts and critical path analysis for resource allocation. Furthermore, it examines customer relationship management processes, including customer portfolio analysis, customer intimacy, and network development. The report also discusses transnational business development, outlining its benefits and drawbacks, along with the stage model of internationalization. Financial aspects such as break-even analysis and financial statements are also touched upon, providing a comprehensive overview of small business management strategies and challenges. This assignment is designed to provide a deep understanding of the different processes involved in managing a small business and social enterprise.

Managing and
Running a Small
Business

Table of Contents

INTRODUCTION
Small business is privately operated and owned entity with relatively minimum staff
members and turnover. Small business in different nations includes retail or service operations
such as small grocery stores, convenience stores, restaurants, hairdressers, computer
programming, web design etc. In order to manage and run a small business is important and
significant part for the unemployed people because such entity provide different possibility to
them with motive to increase their growth and success (Ali and Babiker, 2017). It is also
essential for the welfare and betterment of society by rendering quality services and products.
This report is based on Unicorn grocery, it is a retail store that deals in different variety of
grocery items. In this assignments needs of main consideration a social enterprise and different
process of customer relationship management. Different sources of funding which is also
determined in this assignment. Break-even analysis and financial statement for the small
business is also determined in this projects.
TASK 1
P1) Main considerations a small business or social enterprise needs
Small business is privately owned partnership, sole proprietorship and corporations that
have less workforce and revenues than a corporation and regular-sized business. Unicorn
Grocery is a small retail business in United Kingdom that provide different quality products and
services to the customers at affordable price. Main aim and motive of the organisation is to
provide accurate employment to local people for maximising their living standard or quality.
There are different factors which are needed for the management to design an effective plan for
the future growth and development (Chauma, 2017). There are few consideration which take
plan in social enterprise and small business are determines as below:
Financial resources: It is most important factor which are needed by each and every
company to complete their all activities and functions within predetermined period of time.
These are also essential and necessary to manage their all financial statement including profit and
loss account, balance sheet, cash flow statement, trading account and many others. All these are
valuable in interpretation P&L of enterprise.
Entire workforce and their skills or quality: In Unicorn Grocery, employees are consider
as main factor for the development and success of company. In this human resource manager
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play vital role for recruiting knowledgeable candidates who can easily accomplish long term
objectives and targets of company in certain time period. In this another role and duty of HR
Manager is to involve their all employees in the process of decision making which is important
for them to maintain their market position.
Goals, vision and targets: It is important for the all enterprise to introduce their goals,
vision, objectives and targets to those employees who are working and relating to organisation. It
provides better chance to manager of Unicorn Grocery to develop different functions and
activities which are needed to perform via workforces (Cojoacă, 2017). Under Unicorn Grocery,
these management provide accurate training and development to workers with the use of
effective technologies for enhancing working performance.
M1) Tools and techniques in a structured and analytical way
There are two essential tools which are applied by the Unicorn Grocery for the allocation
of effective resources and planning which are determine as below:
Gantt Chart: It is another important and vital tool which is applied by each and every
company because this techniques render accurate information regarding activities and functions
of the business to the organisation.
Critical Path Analysis: It is more essential and useful technique which are used by the
company with purpose to identify starting and ending time of the activities. This techniques
support the business to maximise performance and effectiveness of their workforce.
M2) Importance of planning and allocating resources
Allocating resources and effective planning is more essential and valuable part for the
development and growth of the company within predetermined period of time. It is also essential
for maximise their performance and profitability easily (Durst, Yip and Lee, 2015.). In this
Unicorn Grocery design an effective plan to providing online services to the customers which
assist them to increase their sales. Allocating resources help the business manager to minimise
the employees turnover in an effective and efficient manner.
D1) Application of appropriate resources
According to the Durst, (2015) Appropriate resources is more essential and significant
part for the success and growth of company in international level. Further, it is important for
them to accomplish their long term objectives and targets easily. In this role of manager is to
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allocate all work and resources to the employees as per its work and performance. Thus, it assist
them to maximise their sales and turnover in limited time period.
TASK 2
P2) Various processes of customer relationship management
Customer relationship management is identify as an effective technology, strategies and
practices which help the business entity in order to handle and evaluate customers interactions or
activities with a motive of enhancing strong relationship with them. In this role and
responsibility of managers is to provide accurate information or data to the customers about
business products, services, process and many other essential contend (El-Rafei and et. al, 2017).
All these are highly support them to maximise loyalty of clients towards company. In this
company used different kind of communication channel for gathering relevant information
through email, social sites and many other useful techniques. Process of customer relationship
management are determined as below:
Customer portfolio analysis: It is a first phase, in this role of manager is to identify the
kind of customers whose are most profitable for them.
Customer intimacy: It is an effective process of acquiring familiar with the each and
every buyers within the enterprise's target audience base. In this manager are responsible to
provide effective services and products to their customers as per its needs and wants. Thus, it
help the Unicorn Grocery to keep long lasting relation with customers.
Network development: It refers to the determination and implementation of strong and
better relationship with business, network and persons that are valuable to the progress in
rendering better services to customers. These type of relationship will consider external partners
namely investors and suppliers as well as internal partners also i.e. employees.
Value proposition development: This Phase on the data collected while working or
functioning on client intimacy (Javaid and Iqbal, 2017). Foremost role of the managers is to
recognised target audience and turn forward as well as develop a custom-made value proposition
for this audience.
Customer life cycle management: It is last step which refers to the loyal clients journey
from likely customer to services or product advocated. Managing customer life cycle needs
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structure and tending to process. Thus, it is important for the company to maintain strong and
effective relation with customers easily.
P3) Small business can develop transnationally and benefits and drawbacks
Transnational sales is identify as an important aspects which is essential to Unicorn
Grocery to evaluate profitability level. It is the type of business sales related to products and
services across the world as per the demand and needs of customers. Further, it is the role and
responsibility of Unicorn Grocery to follow different kind of tools on the basic of existing
situation which are existing in specific country for gaining maximum amount of capital and
make strong position at marketplace. These type of techniques are applied by the retail store in
order to server grocery items (Ludmila and Stanislava, 2015). If company expand their business
operations and activities into new places, there is highly requirement for the enterprise to prepare
an effective plan.
In context to this, there is a necessity to enterprise to provide the maximum activity
which renders possibility related to consideration of different types of functions at the global
level. It is essential that Unicorn Grocery serve the products and services to customers at
affordable price. All types of company related to activities and functions is valuable in growing
business operations effectively (Nowotarski and Paslawski, 2015). There are few drawbacks and
advantages which are observed through concern by grow business operations and functions
which are determine as below:
Benefits Drawbacks
Lifestyles in the business entity identify the
working style of the employees. It is essential
for the company to gain maximum amount of
the profit.
In order to generate maximum profit as well as
maximise business operations, there is
requirement to Unicorn Grocery to adopt and
follow creating and unique idea which is time
consuming process for the company.
Independence also important for the
development and growth of company in certain
time period. It will provide rights to the
business manager in order to take an effective
decision as per the regular time period to
In order to expand their business operations
and activities company faced financial risk
which is not good for the business performance
and effectiveness.
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render the effective possibility for run their
business operations in an appropriate manner.
Stage model of internationalization: It is identified as a successful and essential driver to
enlarge business's growth and achieve competitive benefits. There are mainly two incremental
channels of an organisation's internationalization process. The first channel is Ifs enable
business's services and products to penetrate the international markets. Another channel is Ifs
that start to enlarge their operations and activities international. This model has three stage which
is determined under this:
(Source: Stages of internationalisation, 2018)
First stage: The first state is also known as early stage. Main motive of this phase is
introducing the initial market exploration in order to assist export activities. Beside this company
starts to experience or occurrence the familiar foreign marketplaces by exploring the particular
characteristics including cultures, habits, tastes, languages etc. to export their services and
products to those marketplace.
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Illustration 1: Stages of internationalization

Second stage: Ifs is accept to have initial benefits from internationalization process.
Formerly the IFs successfully turn to the second phase, they step by step learn the maximising
advantage from international enlargement. The learning cost is now get-go by the higher
revenues.
Third stage: It is acknowledged that not all enlargement now is advantageous because
the business may mislay their power over a too-broad scheme over numerous countries and
regions. This may causing a cost load for business entity rather than an unique opportunity.
It also includes five stage of internationalization which are determined as under:
 Domestic operations is a first stage in which business's market is entirely domestic.
 Export operations is second phase in which Unicorn Grocery enlarges its marketplace to
includes other nations, but keep its productions facilities or quickness within domestic
borders.
 Subsidiaries or joint venture are introduce as third stage in which an enterprise physically
turns some of its operations and activities out of the domestic country.
 Multinational operations is refer as a fourth stage in which Unicorn Grocery becomes a
full-fledged international crop. With production and assembly facilities in certain nations
and regions across the globe.
 Transnational Operations is introduce as a last stage in which an enterprise reach this
phase are often known transnational because they build on small loyalty to their nation of
descent. Operations of the business are extremely localised, with each business part free
to develop personnel decisions or judgements with precise loose power from
headquarters.
Benefits and drawbacks of this model are explained as under:
Benefits: Drawbacks:
Broader market base: Unicorn Grocery can
get chance to produce its products and services
at international level by developing its
subsidiaries in country. Approach to different
number of clients will support business entity
in giving more revenue.
Risk of failure: Political and legal
requirements of each and every nations is not
same and if business entity not meet it suitably,
then it may track business organisation towards
failure or down in performing their operations
systematically. Along with this, cultural norms
of all nations is also different so, Unicorn
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Grocery requires to handle these in proper
manner as failure may outputs in maximum
loss due to decreased demand of business's
product.
M3) Elements of the customer relationship management process
There are some elements of the customer relationship management process which are
determined as below:1. Knowing the market and customer needs: It is main role of the manager to identify
needs of the customers and market trends about the business products and services. Thus
it is essential for the company to achieve their long term goals and objectives within
predetermined time period. Market and customer need are important for the success and
development of company at large scale.2. Acquire consumer loyalty: In this Unicorn Grocery provide effective and quality
products and services with motive to acquiring customer trust and loyalty (O’Connor and
Kelly, 2017). Customer loyalty is one of the main and effective part for the growth and
success of company. It is the role of manager is to provide high quality products and
services at reasonable cost. It will assist the business in achievement of objectives within
predetermined time period.
3. Offer development: Under this process, manager of the Unicorn grocery modify their
existing goods and services as per the requirement of clients which support the company
to achieve long term goals and objectives. It is another important element of customer
relationship management which support an organisation to attain their preset goals and
objectives. Beside this, company offer innovative products to the customers which help in
maximisation of their sale.
M4) Potential to develop transnational operations
It is refers as an obligation on administration of Unicorn Grocery in order to design an
effective plan about doing entire activities and functions of company at global level. In order to
develop transaction operations, there is highly need of four elements which are explain as below:
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1. Knowledge possibility: It is essential that administrator should have accurate knowledge
regarding grab proper chances which will assist in attain long term objectives within
predetermined period of time.
2. Decision about relationship commitment: It is the role of manager is take an effective
decision to provide goods and services to the customer with aim to expand their business
operations (Parkin, Fielder and Ashby, 2016).
3. Position of network: For the accurate and efficient advertisement, Unicorn Grocery
required to implement the valuable network at market.
4. Learning curve: It is highly needed to the company to follow unique and various
elements for introduction of innovative products or services.
D2 Process of customer relationship management
Different efforts are finished by a Unicorn Grocery to create and retain a better
connection with its clients. Certain phase are consider in this procedure but chiefly this activity is
supported on 4 Cs which is explain as below:
 Correlate: In this administrator organise various programmes or events to move and
transmit with audience. Firstly buyers are invited in order to take care the programme.
 Combine: It is identify as a relationship between customers and organisation that will
support to maximise their sales (Skolud and et. al., 2016).
 Cognize: In this administrator apply different techniques and tools to gather data towards
the different activities or functions of business.
 Connect: Under this relationship or connected is formed with provider, workers, buyers
and third parties.
TASK 3
P4) Annual itemised monthly cash flow forecast showing fixed and variable costs
There are different sources of fund which provide a better chance to Unicorn Grocery
administration in order to maximise flow of money for the effectiveness of business operations
and activities. Some sources of the fund which are used by the company are determined as
below:
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Hire Purchase: It is essential approach which supports the company to arrange accurate
amount of the capital from leasing property and different equipments to another people. There
are certain sources of hire purchase to collect proper amount including rent and interest.
Bank Loan: It is important and external sources of finance which assist the company to
gather accurate amount of fund for their daily basis activities and functions (Stanciu, 2015). It is
valuable for the Unicorn Grocery to take entire commercial loans from specified bank at fixed
interest rate which business require to paid on the annually.
Equity Finance: It is identify as a issue of equity and preference shared via Unicorn
Grocery to stock exchange trade. It is beneficial sources of maximising fund for long duration.
Budgeting and forecasting: It is a process of creating any predications or assets of future relay
on the actual and future information. It is applied by the enterprise to recognise entire future
trends. Further, budgeting define as a process of implementing an effective plan in order to spend
fund accurately. There are some techniques which are followed by enterprise for motive to
forecasting and budgeting, these are determine as below:
Measure moving average: This tool is valuable in preference of available buyers as per the
actual trends which are existing at market.
Time series data or information: It is another techniques which is used by the company to
focuses on identification of period of time which will needed to complete specified projects (Van
Scheers and et. al., 2018).
Balance Sheet, cash flow statement, profit and loss account of Unicorn Grocery:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 120 220
Stock 30 45
Debtors 80 65
Bank 30 35
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Total 230 340
Creditors 130 150
Bank overdraft 80 50
Total 670 905
Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 40 60
Cost of sales 20 17
Gross profit 20 43
Overheads 8 9
Net. profit 12 34
Cash flow Statement
Particulars Jan Feb Mar Apr May June
Cash inflows
Investment 8000
Credit sales 1200 2000 7500 3000 5000 6500
Total inflows 9200 2000 7500 3000 5000 6500
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