Cafe Pod Coffee: Resource Allocation, CRM, and Financials

This report provides a comprehensive analysis of managing a small business, using Cafe Pod Coffee as a case study. It covers key aspects such as resource allocation, emphasizing the importance of financial and human resources, and the tools and techniques for effective allocation. The report also discusses Customer Relationship Management (CRM) processes, including brand awareness, lead acquisition, and customer conversion, highlighting the significance of customer service programs. Furthermore, it explores methods of transnational development, weighing the advantages and disadvantages of internationalization for Cafe Pod Coffee. The report also includes a financial analysis, presenting a cash flow forecast and break-even analysis, and assesses the impact of key legislation and regulations on small businesses. Ultimately, the report aims to provide insights into the strategic management and sustainable growth of small businesses like Cafe Pod Coffee.

Managing and
Running Small
business.

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
ACTIVITY 1 (Brochure).................................................................................................................2
Activity 2.........................................................................................................................................8
Discuss an annual itemised monthly cash flow forecast representing fixed and variable costs
set against income...................................................................................................................8
Assess how the break-even analysis could be applied to an business situation.....................9
Provide main financial statement for a business in context to how they contribute to
successful management........................................................................................................10
Use suitable quantitative and analytical tool to give an suitable cash flow forecast and break
even analysis.........................................................................................................................12
Critically assess the cash flow forecast and break even analysis along with analysis of how
financial statement contribute to the success of business.....................................................12
Discuss key legislation and regulation that have implications on small business................12
Assess the implication of main legislation and regulations in an organisational context....13
critically assess the legislation and regulation that influence the small business considering
future enhancement and changes..........................................................................................13
Conclusion.....................................................................................................................................14
References......................................................................................................................................15

INTRODUCTION
Managing small business management depicts about the process of aligning and
coordinating towards all aspects of better small business. It mainly indicates about managing
employees, resources, suppliers, business related finances and other aspects to dealing for better
perform task. Small business are considered of importance that provide better opportunities for
entrepreneurs and create meaningful jobs with greater job satisfaction (Antcliff,, Luptonand
Atkinson, 2020) For this report, the company is selected Cafe Pod Coffee is an independent
small business of Coffee craft for adventurous towards drinkers for enjoyment purpose. They
only focus on about creating and innovative traits to maintain positivity within customers to
attract. The company is having around 16 employees and revenue is generated around $6 million.
The topics are covering in this following report, main considerations of small business plans to
better allocate resources to accomplish objectives. To evaluate the better customer relationship
management process for small business social enterprise. Different financial statements would
discuss about specific company's growth in market. The implications of regulations and
legislation on small business or social enterprises.
MAIN BODY
1

ACTIVITY 1 (Brochure)
2
Allocation of resources in business
There are main important consideration that small business need to determined initial days to allocate their resources fro
accomplishing objectives (Antcliff., Lupton and Atkinson., 2020). In perspective of Cafe Pod coffee company, they need to consider
important aspect which would help to maintain resources for business through this gaols can be better accomplished effectively.
 Financial Resources: It is the most important part use at the time of starting business is funding. The financial resources
which can better obtained from a variety of sources. This can be flexible to being from personal accounts of company's
founder. Therefore, bank loans and money on credit might be guaranteed on certain financial institutions, friends and
relatives along with private investors.
 Human resources: For success of an organisation employees plays an important role as they contribute their skills and
talent to attain positive outcomes (Kalyani., 2020). To hire potential employees is a bigger responsibility of Human
resource department. As HR manager is having experienced to recruit potential candidates that would provide some
productivity.
 Physical resources: Every business is require physical resources to survive in competitive market. Similarly, for small
business require physical resources like better workplace infrastructure, tools and equipments, telephonic facilities to
inform effective marketing materials.
Identify tools and techniques help to allocate the resources for specific organisation.
There are some important tools and techniques to allocate the resources for Cafe Pod Coffee company perspective are:
 Gathering right information: It is a process of recording as much information as possible is the key to generate better
resources allocation decision. For Cafe Pod Coffee company, if they have good knowledge about resources then they can
easily implement into their task or any kind of project. Further, they need to collect information regarding with specific
resource that they going to use in business. Then, they require potential manpower who can contribute their skills and
knowledge to generate productivity.
 Effective visualise data: This helps to project manager to informed decision quickly. The manager of Cafe Pod Coffee
company must ensure about data's pros and cons as because these can be useful to get aware about data specification. then
employees will use them. There are many other laws which help them to manage their resources properly.
Managing and Running a Small Business

3
Discuss the benefits of planning and allocating resources to achieve the business objectives
Proper planning and allocation of the resources plays an essential role in achieving desired goals and objectives of the business
and enhancing the overall performance of the business. In case of the chosen company allocation and planning of the resources give a clear
picture of the necessary amount of the work that is needed to be carried out by the management in order to complete a particular task
(Sukawati and et. al, 2020). It also helps the chosen business organisation to effectively and smoothly plan out things in advance and analyse
the progress of the work. In addition to this proper planning of the resource also helps the chosen organisation in proper utilisation of
resources and enhance their overall performance and profitability. It also help in allocating the right task to the right individual also
scheduling the right time to smoothly carry out the work as per the availability of resources.
Critically assess the application of suitable resources to show the link among the resources allocation and achieve business
objectives
It is analysed that the proper application of suitable resources by the management helps in achieving desired goals and objectives
and enhancing overall performance of the business organisation. The application of suitable resources also helps in managing and handling
the resources of the business which will lead to achieving desired goals and objectives. In case of CafePod coffee co., the company ensures
that the necessary resources are allocated and managed properly allowing company to achieve desired goals and objectives and offering
clarity of work that is needed to be carried out by the employees of the company. It helps also helps the chosen company to manage the work
load more smoothly (Kalyani, 2020).
Process of Customer Relationship Management
Customer relationship management is define about technology that manage overall company's relationship with customers to better
interaction with them. Usually, CRM use for record and analyse overall calls, emails and meeting to helping improve better customer
services to drive sales and increase revenue. For small business like Cafe Pod Coffee have Customer Relationship management process
which would help to maintain customer records. In following there are important process of CRM which Cafe Pod Coffee company follows
effectively are:
 Generate brand Awareness: It is the first steps to allocate for better introduce towards business, marketers will conduct to
research for identify to target audience in demographic, interest, preferred channels of communication about sharing of relevant
message to customer related with product and services. As customer are plays a big role for business a better brand target
audience into similar group which increase the interest or demographic. It helps to marketer to better identify right customers for
their product and services.
 Acquire leads: To better introduce brand potential customer with this just beginning of CRM process. This process of CRM is
totally depend upon business structure, how they going to measure pros and cons of customer behaviour.
 Provide Quality of Customer: In this step, it deprive that CRM is not end at the time customer turns into buyer. Business need to
retain customers and where it grows in better form. Through excellent support service keep customer coming back for product
and services effective manner. In situation of Cafe Pod Coffee company need to make sure that at time of delivering of product
to potential customer. They must use effective communication channels like live chats, email etc

4
 Convert leads to customer: This step depicts that once leads get identified for potential customers, then the next step
would be to convert those leads into paying customer form. A CRM system with a robust better leads scoring about
specific tools that helps in lead process. It presumes because this helps to identify better opportunities which convert
into purchase.
 Provide Quality of Customer: In this step, it deprive that CRM is not end at the time customer turns into buyer.
Business need to retain customers and where it grows in better form. Through excellent support service keep customer
coming back for product and services effective manner. In situation of Cafe Pod Coffee company need to make sure that
at time of delivering of product to potential customer (Sukawati, and et.al., 2020). They must use effective
communication channels like live chats, email etc.

5
Customer service programme- Customer service programmes tells that how much a company offer facilities to their customers. It
can also use to build a strong communication network. Few examples allowing ratting system which tells that how much their
customers prefer to use CafePod products. Another way to build a strong relationship with customers are forum for real time solution
and response. Here, customers message their issues and complaints and they receive the solution of their issues on the spot when they
complain. This will satisfy customers and help to gain their trust and build better relationship.
Methods of transnational development and their merits and demerits
Small business can approach different ways to develop their business into international platform such as using market research,
online global investment etc. Similarly, for Cafe Pod Coffee is small business is suggest ways that they can move their business into
international market are:
 Use an online marketplace: It is easy way to reach foreign consumers through online marketplaces like Alibaba or
LinkedIn are these professional platforms. In these platforms Cafe Pod Coffee company can measure their clients from
international and promote their product and services in external market.
 Work with Foreign Distributor: The foreign distributors are intermediaries that better connect of business to foreign
customer. Through connect distributor can build better relationship can be more advantageous than online marketplace to
sell, promote, service of product effectively. In perspective of Cafe Pod Coffee company, need to connect with online
foreign distributor that helps to promote their product and services along with generate more international business
opportunities (Kwon and Sohn, 2021).
There are different stages of internationalisation are:
 Domestic Company: According to this type of company, it majorly focus on opportunities within domestic market along
with small investments. As they have limited investments boundaries.
 International company: These type of company has grown towards beyond the national boundaries. They majorly starts
t exploit foreign markets with the addition of domestic market. In this company is mainly realise about the need to carter
for making differences in consumer better demands.
 Multinational company: It is also referred as multi dimensional company, due to having multiples strategies costs like
those of production and marketing rise. Through generating higher prices for reduce the better customer value to better
generate benefits by economic of scale.
Evaluation:
It has been discussed about above stages of internationalisation explain different companies who are running their
business nationally or internationally through effective manner. For Cafe Pod Coffee, they must focus on Multinational Company
that describe multiples strategies cost of better production for better market rise. Through this, small business like Cafe Pod Coffee
would gain more opportunities like small or moderate type of investments which leads towards global business market.
Advantages for Cafe Pod Coffee company to international:
 It can increase the scope of revenue while trading in international market.
 It driven more business opportunities which creates better sustainability in competitive international market.
Disadvantages for Cafe Pod Coffee Company international:
 There might be requirement of high capital investment.
 International business can faces issues in aspect of rules and regulations of specific international boundaries.

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Evaluate the factors of customers relationship management process in context to achieving business objectives.
Proper controlling and managing the customers and building positive relationship with them helps the
business organisation to build customers loyalty and retain them for long period of time. Retaining customers
helps the business organisation to enhance their overall performance and profitability. Also improving their
brand image in the marketplace. In case of the chosen organisation, company effectively follows the customers
relationship management process such as offering required customer services and making them aware of the
required information about their product and services. And also regularly analysing their needs and wants in
order to enhance their satisfaction level. Use of these factors of customer relationship management allows the
company to enhance their brand image in the marketplace and gain competitive advantage which automatically
leads to business achieving desired goals and objectives.
Assess the potential to create transnational operations using the stage model of internationalisation considering both benefits and
challenges
The effective creation of the transnational operations plays an essential role in the overall functioning
of the business. In case of the chosen company moving into the international market will helps the them to
enhance their market size and customers base also. There are various ways that can be consider by the business
organisation such as use of online marketplace, work with the international distributors will allow the company
to enhance their performance at the international level effectively. The various benefits includes the
enhancement of the revenue effectively. Also offering various opportunities. But there can be some challenges
such as need of the capital investment also the challenges regarding the rules and regulation.
Critically assess the customers relationship management process at all stages and offer recommendations to overcome the
challenges of enhancing transnational operations
Effectively managing and handling the customers will help the company to enhance their overall
performance and profitability of the business. Satisfying the customers will helps the company to retain them
for long period of time. In case of the chosen company various stage that are followed by the company includes
creating brand awareness, transferring the leads to the customers effectively, also offering quality services to
them. This will help the company to create strong customer relationship. In addition to this in order to
overcome the challenges proper strategies needs to be followed by the company and also there should be
support from the top management to effectively carry out the operations.



7
REFERENCES
 Antcliff, V., Lupton, B. and Atkinson, C., 2020. Why do small businesses seek support for
managing people? Implications for theory and policy from an analysis of UK small business survey
data. International Small Business Journal, p.0266242620974586.
 Kalyani, P.A.L.N.S., 2020. Managing Small Businesses During Recession. SMS Journal of
Entrepreneurship & Innovation, 6(2), pp.51-59.
 Sukawati, T.G.R., Riana, I.G., Rajiani, I. and Abbas, E.W., 2020. Managing corporate sustainability
by revitalizing Balinese cultural identity. Polish Journal of Management Studies, 21.
 Kwon, I. and Sohn, K., 2021. Trust or distrust: entrepreneurs vs. self-employed. Small Business
Economics, 56(4), pp.1553-1570.

Activity 2
Discuss an annual itemised monthly cash flow forecast representing fixed and variable costs set
against income
Cash flow statement is important for the business organisation. As it helps in the
measurement of the cash inflow and outflow, which further use for the organisation
financial forecasting and resources management. This important for the analysis and
monitoring of the company expenses along with the management of income source
of the company. In the cafe pod coffee cash flow is manage by the company owner
and the supportive financial employees. This helps to make the analysis and
monitoring of cash expenses, investment and saving or profit on the daily basis. This
is one of the key tool or document use for the mitigation of financial risk and
achievement of higher growth with investment on right thing, with right method.
The above represented cash flow is indicating the good amount of profit.
Assess how the break-even analysis could be applied to an business situation
BEP = Fixed cost/ selling price per unit – variable cost per unit
Calculation of BEP=
8

Fixed cost= 12000
Selling price per unit= 10
Variable cost per unit= 4
BEP= 12000/10-4
BEP= 12000/6
= 3000
Applications of BEP: -
 Break-even analysis is essential tool, which is use to analyse the organisation
productivity and the unproductive factors. So that organisation can reduce the risk
factors.
 BEP also helps in the development of effective pricing strategies along with the
assurances of higher profit and sell.
 This also helps organisation to develop the business objectives for the higher growth and
revenue.
From the above analysis it has been critically evaluated that, the break-even point is the,
the point where the sales revenue and total cost intersects. This is the point at which organisation
can not earn any profit or loss any financial assets. Company can earn the profit above the BEP
and face the loss below the BEP.
9

Provide main financial statement for a business in context to how they contribute to successful
management
The financial statement plays an essential role in the growth and development of the
business through analysing the financial condition of the business and accordingly carry out all
the necessary activities (Brikman, 2019). In case of CafePod, the main financial statements used
by the company are mentioned below:
Balance sheet: It is one of the main financial statement used by the business organisation
including the total asset and liability. This statement helps the business organisation to analyse
the total amount of the assets and liability. In case of the chosen company, this helps in analysing
the liquidity position of the company in the marketplace.
Profit and loss account: The another financial statement is the profit and loss account,
this account helps analysing the income and expenditure of the company occurred in the
financial year. It helps in analysing the financial position of the company through analysing the
10

total profit and loss of the company effectively and also the total income and expenditure
occurred (O’Rourke and Koščak, 2019).
Use suitable quantitative and analytical tool to give an suitable cash flow forecast and break even
analysis
It has been critically analysed that a quantitative and analytical techniques of the break
even analysis is involving the determination of the relationship between costs, revenue, and their
profits at different levels of output. There are the to approaches of BEA such as the algebraic and
graphic method. Cash flow statemented is involving the quantitative and analytical techniques
like operating activities, investing activities, financial activities along with the calculation of
cash inflow and cash outflow.
Critically assess the cash flow forecast and break even analysis along with analysis of how
financial statement contribute to the success of business
It is analysed that the effectively analysing the financial statement of the company helps
in analysing the financial position of the company which automatically helps in enhancing the
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overall performance of the company (Carnall, 2018). The analysing the cash flow helps in
analysing the total cash inflow and outflow of the cash in the business which lead to managing it
effectively. In addition to this the break even analysis helps in analysing the fixed and variable
cost covered in the production effectively. In case of the chosen company the analysis of the
financial statement will help the company to analyse their financial position of the company in
the marketplace. Managing the cash and fixed as well as variable cost will helps the company to
enhance their overall performance and achieve desired goals and objectives.
Discuss key legislation and regulation that have implications on small business
The legislation and regulation are the various laws and rule that is needed to be followed
by the business organisation in order to smoothly carry out their task and activity. The various
laws and legislation implemented creates direct implication on the small business in carrying out
their activity (Cosenzand Bivona, 2021). The main legal and regulatory issues applicable to the
chosen company are mentioned below:
Data protection regulation act: This act will allow the business organisation to protect
the personal data of the employees and the customers, if there is leak of the personal data of the
customers and the employees will considered to be the unlawful act. This act allows the chosen
company to protect the personal information of their employees and customers effectively
(Mancuso, 2019).
Equity act 2010: Another essentially act is the equity act, this act helps in creating
equality at the workplace, as per this law each and every employee should be treated equally and
no discrimination should be done on the basis of their colour, size, age. This will help in creating
smooth workplace environment.
National minimum wages act 1998: As per this law at least minimum wages should be
offered to each and every employees in order to motivate them towards performing better and
achieving desired goals. This law allows the help in offering minimum wages to each and
everyone (Devaux, 2019).
Record keeping: Another regulation that have impact on the small business includes the
record keeping, this will allows the business organisation to effectively keep the important record
related to the business organisation and customers. This will help the small business like cafe
pod coffee the important and required information whenever it is possible for their smooth
functioning.
12

Health and safety: Another regulation necessary for the smooth working of the small
business organisation is the regulation regarding the health and safety of the employees.
Ensuring the safety and security of the employees will helps the business organisation to retain
them for long period of time and make them feel safe and secure.
Assess the implication of main legislation and regulations in an organisational context
It is analysed that there are various legislation and regulations implemented needed to be
followed by the business organisation in order to enhance their performance and smoothly carry
out their activity. In case of CafePod coffee co. the implication of the main legislation and
regulations such as data protection, minimum wages act and so on will allow the company to
create healthy and smooth working environment which will lead to motivating them towards
achieving desired goals and objectives and enhancing the overall performance of the company.
Legislation regarding the health and safety will help the chosen company to ensure the safety and
security of their employees and also ensuring that no discrimination is done in the workplace.
Also the use of legislation regarding the employment help the business organisation to protect
the rights of the employees and enhancing their overall performance. It also helps in creating a
sense of belongingness among them employees (Fried and Kastel, 2020).
critically assess the legislation and regulation that influence the small business considering future
enhancement and changes.
The various legislation and the regulations implemented directly influence the
performance and profitability of the business. It helps the business organisation to create positive
working environment, motivating employees towards achieving desired goals and objectives also
(Hillson and Simon, 2020). The main legislation that is needed to be followed by the business
organisation includes the employment laws which helps in protecting the rights of the employees
and allowing them to feel safe and secure in the business environment effectively. Following the
rule and legislation will allow the chosen organisation to create strong brand image in the
marketplace whereas not having proper laws and legislation can directly influence performance
of the business and the work environment (LaCroix, 2018).
Conclusion
From the above report it has been concluded that increasing number of small business
helps in enhancement and development of the economy through offering required opportunities
13

and growth of the business. This report helps in analysing the various social needs to be taken
into consideration when planning and allocating resources along with the various processes of
customer relationship management. Also the development of the small business transnationally
also the cash flow and break-even analysis is also determined. In addition to this contribution of
financial statement in the success of the organisation and various legislation and regulation
creating implication on the small business is also analysed in this report.
14

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