HNHM346: Small Business Resource Management and Customer Relations

This report analyzes the key considerations for planning and allocating resources in small businesses, focusing on the Five Fields restaurant as a case study. It examines the importance of vision, goals, financial resources, and employee skills in achieving business objectives. The report applies tools like critical path analysis and Gantt charts to resource allocation and critically evaluates different customer relationship management processes, including customer portfolio analysis, customer intimacy, and network development. It also assesses how small businesses can enhance transnationally, considering benefits and drawbacks. The second part of the report focuses on financial analysis, including a break-even analysis and cash flow forecast for e-commerce developers John and Jenny, evaluating how these contribute to successful management. Finally, it discusses key legislation and regulations affecting small businesses.

Managing and running
a small business
Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4

Main considerations and assessment of planning and allocating resources in order to achieve
business objectives for small business........................................................................................4
Application of tools and techniques in a structured format and analytical way to plan and
allocate resources in context with organisation..........................................................................5
Critical analysis of appropriate resources in order to determine links between resource
allocation and achievement of business objectives.....................................................................6
Explanation and critical evaluation of different processes of customer relationship
management for small business in context with achieving business objectives.........................6
Explanation of how small business's can enhance transnationally through an assessment of all
benefits and drawbacks by using a model...................................................................................8
Recommendations for overcoming challenges in developing transnational operations.............9
Discussion and critical evaluation of key legislation and regulations which affects small
business's taking future developments and changes..................................................................10
TASK 2..........................................................................................................................................10
Produce a break even analysis and cash flow forecast .............................................................10
Explanation of how break even analysis can be applied in context with organisational
situation.....................................................................................................................................12
Interpretation of financial statements like in the form of cash flow forecast that have been
produced and evaluate how they can contribute in terms of successful management..............13
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................16
......................................................................................................................................................18

INTRODUCTION
Small businesses are mainly determined as privately owned organisations, partnerships
and even a sole proprietorship business which involve less revenue as compared to other regular
sized business. All businesses are been defined as small in context with they are been able to
apply for government support which depends on both country as well as industry. While
managing a small business its the duty of manager only to tackle all activities happening in the
organisation. Managing and running a small business basically means to manage all elements of
business whether in terms of time, employees or other resources as efficient as possible(Jones,
Meckel and Taylor, 2021). The below report involves how small business plans and allocate
resources in order to achieve goals, evaluation oh whole customer relationship management in
terms of small business and different implications of regulation and legislation on small
businesses. The second phase of report is based on John and Jenny who are e-commerce
developers and it involves break even analysis and cash flow statement, how it will be applied in
organisational situation and certain key financial statements. The below report is based on Five
Fields restaurant which was established in 2013 by Taylor Bonnyman. The restaurant is located
in London and provides a playful modern British cooking.
TASK 1
Main considerations and assessment of planning and allocating resources in order to achieve
business objectives for small business
There are different type of key considerations which has an importance in both planning
and allocating resources which helps in achieving goals and business objectives. In context with
Five Fields restaurant the considerations, assessment and relevance of resources are been
explained as below:-
Considerations and assessment:- Vision and goals:- In terms of vision of each business it determines what an organisation
wants to achieve with respect to their future areas(Dijkstra, van Beukering and
Brouwer,2021). It identifies the right position of organisation and in accordance with it
the vision of company is set. With respect to goals, it is defined as an ultimate end
through which companies set out their business activities. In context with Five Fields
restaurant, their main vision and goal should focus on determining and carrying out all

activities in such a way that businesses are able to achieve all business goals in
impressive manner. Financial resources:- It is the most important and necessary element for a businesses as
it is needed by all managers in terms of doing planning and allocating all kind of
resources so that their business activities carries out in a effective way. In accordance
with Five Fields restaurant, all planning and allocation of resources is initiated by
managers as there are many resources available and they all could be used in order to
increase their profits. Employees and skills:- For a business organisation the important asset is their
employees. There are many job roles and responsibilities which are performed by
effective employees so that customers demand can get fulfilled. In relation with Five
Fields restaurant, their main focus is on assuring that al training programmes which are
provided to employees and restaurant chefs are provided training in order to enhance
their performance as well as of restaurant(Trevino and Nelson, 2021).
Importance of planning and allocating resources
To achieve success businesses has to do proper planning as if business's don't do any kind
of planning then it is not possible for them to achieve their business objectives. In context with
Five Fields restaurant it is been explained as below:-
 Planning helps managers in determining their schedules and to do estimation of all
resources been available in appropriate time.
 Allocating resources and while doing planning it helps in forecasting all available
resources which creates the situation of enhanced staffing.
 It is also important in increasing resource utilisation.
 The situation becomes more productive and all teams been involved while doing project
becomes more efficient(Henley, Vorley and Gherhes, 2021).
 It helps in creating precise capacity of all resources and allocation is done in effective
manner.
Application of tools and techniques in a structured format and analytical way to plan and allocate
resources in context with organisation
For utilisation of all available resources there are different tools and techniques been
used. It helps in determining certain decisions to taken in future and developing actions. In terms

of creating a structured format which is used in determining all resources as they are been needed
to achieve all business objectives to make the allocation process more effective. In accordance
with Five fields restaurant it is been explained as below:- Critical path analysis:- In the case of formulating a structured format the technique of
critical path analysis is efficient. This method is effective because it provides data as well
as bar chart and with the help of it time of each project is provided. It is also an important
tool and technique because it is been evaluated that its the longest route in order to
complete whole project(Kania and Adnani, 2021). In context with Five Fields restaurant,
all information about collection of data and details about available resources are analysed
because they are needed in carrying out all business activities and in accordance with it
restaurant objectives are achieved. There has been a good and efficient communication
channel which can be applied and business's can use it so that during operations there is
effective cooperation between all people.
 Gantt chart:- By using this tool and technique it helps in evaluating and analysing all
paths which are available in order complete project and carry out all activities of
restaurant. In case of Five Fields restaurant the main focus is on determining largest path
which is there in order to achieve all goals.
Critical analysis of appropriate resources in order to determine links between resource allocation
and achievement of business objectives
There are large number of resources and in accordance with it business's also use
different resources in order to achieve all goals and business objectives. If organisation has
necessary resources through which they can implement and execute all business operations and
due to this efficiency is build up in all tasks(Russell, 2021). While in other situations there are
not much resources been available and through this there are various challenges as well as
hurdles which get delayed in building up customer satisfaction. It is necessary for restaurant
managers to form a proper structured plan that has necessary information in terms of all
requirements of resources in order to achieve business objectives.
Explanation and critical evaluation of different processes of customer relationship management
for small business in context with achieving business objectives
It has been analysed and properly evaluated that in relation to customer relationship
management it is defined as a strategy for maintaining and establishing a effective relationship

with customers. It is also referred to as the procedure of initiating a conversation with both
customers and also maintaining relationship across whole business. It helps in increment of
profits as well as revenues. There are various type of resources which an organisation can use to
interact with all customers with the help of e-mails, social media sites and many more. It is
beneficial to use customer relationship management because it builds up information
management in relation to have complete information about customer so that positive experience
can be created. It is further been explained as below:- Customer portfolio analysis:- It is the first stage which involves evaluation of customer
base in order to understand which customers are there who are more profitable. It
basically analyses and provides target base of whole business. In context with Five Fields
restaurant, the manager evaluates and develop whole portfolio of customers which helps
in identifying different taste and preferences of customer(Dong and Leng, 2021). Customer intimacy:- It involves the procedure of having knowledge of whole customer
base. Organisations have to maintain an effective relationship with all customers in order
to have full knowledge about the customers which includes their buying habits. This
stage also includes implementation of customer's data base and store all collected data. In
terms of Five Fields restaurant, the main focus is on enhancing customer satisfaction and
in accordance with this it is a necessity to understand customer's behaviour about taste
and preferences in terms of both food as well as interior of restaurant. Development of network:- This stage involves determination as well as enhancing
customer relationship management with the help of individuals, company and network. In
context with this relationship it includes internal as well as external partners which are
suppliers, employees and investors too. In context with Five Fields restaurant, they uses it
in order to develop and build their network with customers so that they can make all their
customer's a regular one(Gray and Lowenhaupt, 2021). Development of value proposition:- It is mainly defined as information technology
which is implemented while doing work on customer intimacy. When all target
customers are determined there is a creation of value proposition for customers and value
creation.
 Management of customer life cycle:- It is the last stage of customer relationship
management which is known as the journey of customer. In terms of management of

cycle they need to have a proper structure as well as attention. It is also in relation with
managing a constant relation with all customers. In context with Five Fields restaurant
they can enhance health customer relationship by having the knowledge of all taste and
preferences and journey towards their restaurant(Denizci Guillet and Chu, 2021).
There are many elements which can affect customer relationship management and it is
needed to be initiated by every company beside making any kind of decision. In context with
Five Fields restaurant, there are some elements which are been explained as below:- Changes in taste and preferences:- It is been defined as if any change happens in
organisation in context with certain requirements and wants of customers through which
they also create an impact on managing customer relationship. In case of Five Fields
restaurant they focus on identifying changes in terms of customer tastes and preferences
as well as in accordance with development been done and all strategies which are
designed so that all needs and wants of consumers are defined.
 Modification in services and products:- If a company implements any kind of change in
terms of different offerings then its result will automatically affect relationship with
customers as they can be done either in positive way or it can happen in negative way
also. In context with Five Fields restaurant, the focus is on doing various modifications
and changes in their business operations in order to ensure that their survival is constantly
been maintained.
Explanation of how small business's can enhance transnationally through an assessment of all
benefits and drawbacks by using a model
Small businesses which are transnationally been developed refers to a sale strategy which
involves focusing on achieving quick sale which helps in creating and developing a long term
customer relationship(Carvalho and et.al, 2021). It is important because it is used by all
business's that provides products which are generic in nature and the main objective behind it is
to enhance profits by ensuring that there is high sales is been done. The sales strategy determines
overall sales that company made through their products which is used across national boundaries.
It is necessary for companies to create and determine strategy according to the situations that are
been there in markets. Through these strategies effective amount of profits get received and at
that time only the brand image gets developed. Organisations use many ways and put all their

efforts to expand their business at International level. In context with Five Fields restaurant there
are many advantages as well as disadvantages and it is been explained as below:-
Benefits:- Efficiency:- Every small business follows a specific procedure of doing work which
helps them in developing their efficiency through the process which they are using and
they provide certain benefits which helps in earning better profits and establishing a good
brand reputation. In case of Five Fields restaurant this procedure to initiate improvement
in their operations as well as all activities which they carry out(Efendi, Zulmi and
Rangkuty, 2021). Independence:- It is very important to have independence by providing certain
suggestions as well as in taking initiatives. With the help of having independence the
company's brand image gets increased. In case of Five Fields restaurant, manager has the
authority of making all decisions which are in relation with business expansion in terms
of both their activities as well as tasks.
Drawbacks:- Lengthy:- It is very important for an organisation to initiate creative ideas which will be
helpful for them in earning more revenue. In context with Five Fields restaurant they
should focus on creating new and innovative ideas in order to prevent from any hurdle
that may arise and avoid lengthy process.
 Financial risks:- It is defined as major and most important risk which is faced by all
organisations while expanding their business and upgrading it in terms of business
operations. Small business companies don't have enough resources that they reach at high
level. In case of Five Fields restaurant they also had the drawback due to certain financial
risks operating in market through which restaurant can get affected(Asemokha and et.al,
2021).
Recommendations for overcoming challenges in developing transnational operations
When organisations perform their operations with the help of using internationalisation
model then business's receive many kind of benefits. It is necessary that the model is been used
in effective and efficient way so there are many elements which need to be considered so in
context with Five Fields restaurant it is been explained as below:-

 Relationship commitment decision:- This element determines as well as evaluates the
quality of all products that should be provided to all customers in the target period of time
been set as it helps in maintaining the business for a longer period of time. In terms of
Five Fields restaurant they can enhance relationship by offering good quality products so
that better customer experience can get generated. Knowledge opportunity:- Through proper research been conducted executives can gather
information about all existing opportunities in order to earn competitive advantage. IN
context with Five Fields restaurant, they can use different knowledge opportunities by
focusing on customers behaviour in order to improve their performance.
 Network positioning:- It means that all tools been available which are in relation with
promotion and used by companies they are able to communicate with each consumer and
with the help of this a effective relationship is been maintained. In context with Five
Fields restaurant there are different network positioning techniques been used in order to
provide customers a good and positive experience(Lindbergh, and Schwartz, 2021).
There are various phases which are included during the process of evaluation in terms of
customer relationship management and it is important that everything is been managed
effectively. In terms of Five Fields restaurant it is been explained as below:- Correlate:- In this stage all business executives could carry a program in which they can
invite all employees who are been working in different departments of their organisation
and they do it in order to build up a good relationship with all audiences.
 Cognize:- It is the stage which means that business executives gather all data and then
analyse all information been collected which are in relation with various functions that all
companies perform.
Discussion and critical evaluation of key legislation and regulations which affects small
business's taking future developments and changes
 Health and Safety act:- It is very important for business organisations to assure that there
is proper health and safety for employees who are in relation with business(Munro and
O’Kane, 2021). Health and safety act has been initiated in 1974. In context with Five
Fields restaurant as its a small restaurant business in London, it is especially necessary
for them to provide training to all employees so that they deliver good quality food
products and don't create a situation of dissatisfaction.

TASK 2
Produce a break even analysis and cash flow forecast
 Cash flow statement:- It is been defined as a financial statement which provides accurate
data with respect to all cash inflows that are received from all business operations as well
as outside investment sources. It involves cash outflows that are paid for certain business
activities and all kind of investments been done during the specified time period(Smith,
2021). As in case of John and Jenny they were interested to enhance and expand their
business at different locations so it was necessary for them to forecast all future expenses
to be done. In terms of this the cash flow statement is been explained as below:-
Forecasted cash flow statement
Cash
distributed Jan Feb
Marc
h April May June July
Augu
st
Septe
mber Oct. Nov. Dec Total
Total
revenues 8000 6500 5500 5000 8500 9000 9200 8750 8250 8000 8520 8925
9414
5
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785
1848
2
Direct labour 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589
1471
9
Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250
2118
7
Selling and
distribution 750 750 750 800 850 950 850 650 720 715 785 795 9365
Total
variable
expenses 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419
6375
3
Fixed
expenses 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
2400
0

Total cost
use 6500 5250 5000 5300 8350 8780 8885 8540 8033 7708 7988 7419
8775
3
Surplus/
Deficit 1500 1250 500 -300 150 220 315 210 217 292 532 1506 6392
From above cash flow statement it has been evaluated that company can receive profit in
future.
 Break even analysis:- It is been defined as a stage in which company is not in a situation
of all profits and losses. At the stage of all expenses in context with company they are
overcome with sale of all products and services. It can be calculated as below:-
BEP = Fixed cost/ selling price per unit – variable cost per unit
Calculation of BEP=
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 point analysis helps in identifying the profitability level which includes many
things like how much they will earn in order to cover all expenses, which products will
be helpful in generating more profits(Khanzode and et.al, 2021).
 It assures that prices of products are properly set. It is necessary that all margins are
properly set in order to receive effective revenue.
 Break even analysis gives all details in order to initiate correct strategy to achieve success
in the organisation.

From the above data it has been determined that when revenues as well as all costs are
met then it is ultimately known as the break even point. In context with fixed costs they always
stay in terms of production and variable costs gets changed according to production units.
Explanation of how break even analysis can be applied in context with organisational situation
According to above situation it has been analysed that with the help of break even
analysis they sub-divide different tasks as well as roles and various other tasks will be done after
the completion of one task which will be helpful for organisation to deal with all activities in an
efficient manner. When activities are carried out and then gets divided all risks that company
may face gets decreased(Roxas, 2021).
Interpretation of financial statements like in the form of cash flow forecast that have been
produced and evaluate how they can contribute in terms of successful management
Financial statement:- It is been defined as the statement which gets formulated by
accountants as well as managers of organisation and it is determined by both internal as well as
external stakeholders to achieve profits or losses that they may face. There rae different
statements and it is been further explained as below:- Income statement:- These statements are used in order to record all income as well as
expenses of organisation so that profitability which is been earned can get determined. In
case of John and Jenny, these statements are implemented in order to evaluate all income
as well as expenses in a specific time period. Balance sheet:- It is implemented in order to analyse full performance of company. It
offers liquidity, liabilities and other elements that a stakeholder needs in order to define
that company can provide good returns on the amount they invested or not.