Report on Managing and Running a Small Hospitality Business (Unit 46)

This report provides a comprehensive analysis of managing and running a small hospitality business, using Verdant Leisure as a case study. It begins by examining resource planning and allocation, emphasizing the importance of project scope, required resources, and the use of tools like tree and interrelationship diagrams. The report then evaluates customer relationship management (CRM) processes, including identifying customer needs, targeting specific customer segments, and understanding the benefits and drawbacks of transnational expansion. Furthermore, the report delves into financial analysis, covering cash flow statements, break-even analysis, and their impact on business goals. Finally, it discusses the implications of key legislation on small businesses, offering a well-rounded perspective on the challenges and opportunities in the hospitality sector. The assignment is structured to address the key learning outcomes of a unit on managing small businesses, providing practical insights for aspiring entrepreneurs and business managers in the hospitality industry.

MANAGING AND RUNNING A SMALL BUSINESS
MANAGING AND RUNNING A
SMALL BUSINESS
Management of small business helps in better allocation, utilisation of resources for future
growth and success of enterprise.
 Tourism and hospitality industry is growing at fast stage therefore many people in UK are
planning to start their own enterprise in industry in order to earn specific amount of
profitability.
 Verdant leisure that is small company in hospitality industry of UK operates to delivered best
customers experienced for survival of firm in competitive market.
 The report has covered about the way small businesses arrange and allocate resources for
achievement of business objectives.
 It also evaluates about customers relationship management process for small business so that
more profit can be earned.
 Key financial statements such as cash flow forecast, budget and break even points are
prepared to know the way they contributed in effective achievement of company goals. At
last it discuss about impact of key legislation on small business.
 At last it discuss about impact of key legislation on small business.

Identification of main consideration for small business at time
of planning and allocating resources for achievement of goals
Top management have to consider some of the factors while
planning and allocation of resources in order to get best result. Therefore
there are various consideration or factors which have been consider by
verdant leisure while planning and allocation of resources can be
illustrated as below:
Scope of project: Manager of verdant leisure while planning and
allocation of resources have defined and identify scope of project so that
sufficient resources need can be easily estimated for effective operation of
business (Freeman and Parmar, 2017). Project scope clearly explained
manager about its respective goals by including information such as main
objectives, task that need to be performed, deadlines so that better
strategies can be formulated for arrangement of resources and growth and
success of enterprise.
Resources those are required necessarily: The manager of firm
has also analysis total resources that will be required to perform
specific task so that no delay can be caused in delivery of products
and services. Verdant leisure manager have analysis current
availability of resources and future requirements while planning
and allocation for better customer satisfaction.
Evaluation of Human resources: It has also
evaluated types of skills and knowledge in required
within employees so that they can be hired for
performance of different task and achievement of
objectives. Manager of verdant leisure through
preparing digital organisation chart have decided
roles and responsibilities that need to be performed by
each individual while working in enterprise.
Preparation for Emergence: There are various
uncertain events which impact of allocation and
planning of resources therefore verdant manager have
prepared in advance about uncertain situation so that
services can be delivered to customers within limited
time (Yu, 2016).
Importance of planning and allocation for organisation
It can be stated that planning and allocation of
resources are necessary for organisation as it helps in boosting
productivity of firm. Save lot of time, money and efforts of
individual within verdant leisure as each individual is aware about
task that need to be performed for growth and success of
organisation (Beugré, 2016). Company through planning and
allocation can easily meet external changes of environment and
get competitive positioning in market. Therefore is can be stated
that planning and allocation of resources is important for firm
because it helps in optimum utilisation of resources and better
services to customers.
Different tool and techniques used in structured and allocation of
resources
Different tool and techniques that were used by verdant leisure
for structure and allocation of resources within firm can be stated as:
Tree Diagram: Verdant leisure manager by using tree diagram have
systematically assigned roles and responsibilities need to be performed by
employee within firm. Complex process of firm is divided into small parts
so that individual can easily know about its respective responsibilities
within firm.
Interrelationship diagram: It helps employees of verdant leisure to
know about their interrelationship with each others so that task can be
completed within limited time frame. It contributed in effective
coordination of individual efforts towards organisational goals.

Importance of planning and allocation for organisation
It can be stated that planning and allocation of resources
are necessary for organisation as it helps in boosting productivity
of firm. Save lot of time, money and efforts of individual within
verdant leisure as each individual is aware about task that need to
be performed for growth and success of organisation (Beugré,
2016). Company through planning and allocation can easily meet
external changes of environment and get competitive positioning
in market. Therefore is can be stated that planning and allocation
of resources is important for firm because it helps in optimum
utilisation of resources and better services to customers.
Activity 1- Preparing a Factsheet on Resource PlanningActivity 2 – Preparing a Factsheet on CRM and Transnational Operations
Evaluates different process of customers relationship
management for business
Customers are most important for firm as it helps in earning profitability
and market share for purpose which it has been established and operated in
industry. There are several stages or process elements involved in customers
relationship management which have been followed by manager of verdant
leisure for better customers experienced. Such as:
Identification of needs: It can be stated that Manager of verdant leisure
have identified needs and wants of each individual through conducting
market research so that effective strategies can be formulated for satisfaction
of customers requirements. Marketing researched helps its to know about
recent trends and innovation in technology, customers requirements so that
needs of customers can be meet in best possible manner (Puhan, 2019).
Verdant leisure in order to maintain strong relationship with customers
adopt to respective changes in their taste and preference for effective
satisfaction of their requirements.
Target: The second process that is followed by manager of Verdant leisure
is target of specific customers for providing its products and services.
Company have planned to target people that are interested in visiting
destination with qualitative or limited services at affordable prices for
spending their holidays. Effective targeting strategy set by verdant leisure
marketing manager helps in formulating of better strategies and fulfil of
customers’ needs.
Sells: There are various promotions offers that are used by
marketing manager of verdant leisure to influenced
customers to select specific services of company in order
to fulfil their respective requirements. Company have
make use of digital media to provide sufficient
information about its facilities and prices to diverse
individual so that they can make right decision to select
company services as compared to other competitors in
market.
Services: It is the last and most important element as well
as process that help verdant leisure to retained customers
loyalty and satisfaction for longer period of time.
Company have always provided better and qualitative
services to customers for satisfaction of their requirements
beyond their expectancy (Wilburn and Wilburn, 2018).
Therefore it can be stated that better services contributed
in maintaining long term relationship with customers.
Benefits and drawbacks of small business developing into
transnational space
Verdant leisure by expanding into international business segment
will be able to develop wider synergy of effective marketing position and
to generate wider synergy of innovation among consumers market share
through which new end goals can be developed further. Verdant Leisure
will have wide opportunities for gaining wider consumer market segment
which will be spread into international customer market share along with
high new end goals and profitable working opportunities. Benefits are:
Higher advantages for reaching to large customer segments: Verdant
leisure will be able to reach international customers and wider business
scenario working opportunities by working towards new goals, into
international countries which will open up door for new profits and
goodwill development among business horizons. Verdant Leisure will be
able to bring on new marketing strategies through composed strong
functional ends which will further add on keen synergy of innovation and
developed gaols through which horizons are expanded within international
levels.
Large functional goodwill development: Verdant Leisure will be able to
functionally enhance goodwill within new grounds for gaining new scope
of consumers where innovation will also be high along with keen synergy
of marketing. Goodwill which is the most important base for gaining on
new levels of progression will be able to potentially enhance with wide
competitive paradigms through which revenue will also be able to
increase. Verdant leisure will be able to leverage continuous efficiency
within international market scope where digital world is large and
strongly focused to bring on new rational profit parameters at higher
business ends.
Drawbacks are as follows:
Higher investment demanded: The transnational business
expansion will be demanding for higher financial investments by
Verdant Leisure under which it can be understood that company
shall be at higher risk as capital expenditure will be increased
onto new levels. Company managers have to propagate new
levels of competitive strength for gaining new synergy of
efficiency and to gain wider strong financial profits and outputs
though the various inputs which are programmed as per business
goals. The company has to strategically plan on business
investment for producing effective business decisions into
international goals and countries where there are wide competitive
levels present also.
Dynamic external factors: The external factors compose risk for
bringing on wider business decisions through which new
developed market position will be programmed, where there are
vast competitive factors also. Dynamic working environment
imposes huge risk for verdant leisure for bringing on new
marketing synergy through which strong position can be
developed as per new standards which will flexibly bring on
higher demand for strategic development and also to bring on new
synergy of innovation. The competitive hospitality industry holds
wide factors of uncertain business scenario where there are
various new brands coming up and also there are various new
synergy of strength demanded, innovative marketing demands

ACTIVITY 3 PREPARING FACTSHEET FOR FINANCE
Cash flow and BEP analysis
The cash flow statement is the one which outlines the flow of cash that is
inflow and outflow of the cash within the business during the whole
financial year. The cash flow of Verdant leisure for year ending 31/03/2019
is as follows-
With the help of the cash flow it is evident that the company is having a
good flow of cash and this is very good for the company. This is majorly
because of the reason that when the company has a positive cash balance
in the end of the year then this is a good position for the company. In the
present case of Verdant Leisure the cash at the end of the year was
44,000 which is good for the company and it suggest that the company is
having proper flow of goods in the business.
Break even analysis of Verdant
Leisure
The break even analysis is a method
or analysis through which the
company can calculate the no profit
no loss situation where the company
can operate in effective manner. This
level of production will assist
Verdant Leisure to manage its sales
up to that level where the company is
in the position that company is able
to meet all the expenses.
From the above calculation it can
be seen that the BEP of the
company is 250 which suggest
that company must at least meet
this much consumer to bear the
daily needs of the company.

Interpreting key financial statements and how they contribute in successful management of company
There are many different types of financial statements which are to be prepared by the company for assessing the fact
that whether the working of the company has earned a profit or not. The major financial statements being prepared by
Verdant Leisure are as follows-
Profit and loss- this is a statement which makes an account of all the income and expenses which the company incurs
while running the normal course of business. The profit and loss account of Verdant Leisure and this will assist the
company in managing all the activities which are of high expenses and will increase the activities which will increase
the income of the company. This will assist the company in systematic and successful management of the company as
the company will know that which activity will incur profit and which will increase expenses.
Balance sheet- this is another major financial statement prepared by the company in order to manage the financial
position of the company. Under this all the liabilities and the assets of the company are listed and it is analysed that
both must be equal. This will assist Verdant Leisure in managing the business organization in successful manner.
Also, the balance sheet will assist the company in managing the fact that how the company can pay off the liabilities
with the optimum utilisation of the entire asset and the relevant resources.
In the end it can be said that the all the financial statement are helpful for the company as this will assist the company
in analysing that where the company is standing and how the company has to improve its performance.
The break even analysis helps the company in assessing the
right level of the production where the company must
operate. This is majorly due to the fact that when the
company assess the production level then only the company
will come to know that what level of production is better for
the company. The use of BEP is very helpful for the
company as this will also assist the company in predicting
the future trends that are at what level the production will be
how much.
Another major reason for the use of BEP is to analyse
the relation between the fixed cost and the variable cost
as this will assist the company in managing the
business of the company to a great extent. This relation
will aid the company in assessing the fact that if there
will be change in the variable cost or fixed cost than
what will be the impact over the BEP and the
contribution.

Activity 4 – Preparing a Factsheet on key legislation and regulations
Employment Law
Verdant Leisure comply with
the employment law which is
significant in protecting the
safety and health rights of the
employees. It is highly
significant in regulating the key
relationship between the
employer and employees of the
company. This law is
significant because it helps in
giving equal wages to the
employees as per the respective
roles and position within the
company. This law is also
useful in preventing work
disruption and promoting health
and safety.
Consumer protection LawThis
law states that, the consumers
has the specific right which is
highly entitled to all the rights of
the consumers. It tends to give
right and protection to the
customers ate the time of
availing the products and
services of the company. The
consumers of the Verdant
Leisure is to give customers the
right in order to claim
compensation against the
defective product, death or the
personal injury of the individual.
Health and safety law
The Health and safety law act of 1974 states that, the employers of the
organization in turn are highly responsible for ensuring that the employees
are working in the safe environment. This law makes sure that, employees
within the company are highly responsible for protecting the individual
within the organization by taking all protective measure against the hazard
in Verdant Leisure company.
Anti- discrimination law
This law is referred to as the legislations which is useful in
preventing discrimination within the workplace associated with
the sex, age, race, religion, culture, nationality, disability. All the
people within the organization are treated with respect.

REFERENCES
Adomako, S., Frimpong, K., Danso, A., Amankwah-Amoah, J., Uddin, M. and Kesse, K., 2020. Home country
institutional impediments and international expansion of developing country SMEs. International
Business Review, p.101716.
Beugré, C., 2016. Social entrepreneurship: Managing the creation of social value. Taylor & Francis.
Freeman, R.E. and Parmar, B. L., 2017. Managing for Stakeholders and the Purpose of Business.
Oh, C.H., Kim, M. and Shin, J., 2019. Paths and geographic scope of international expansion across
industries. International Business Review. 28(3) pp.560-574.
Puhan, T. X., 2019. Managing Change and Innovation. Available at SSRN 3371800.
Wilburn, K .M. and Wilburn, H. R., 2018. Challenges For Managing Business With 21st Century
Technology. Review of Business & Finance Studies, 9(1). pp.13-30.
Yu, C. C., 2016. A value-centric business model framework for managing open data applications. Journal of
Organizational Computing and Electronic Commerce, 26(1-2). pp.80-115.
CONCLUSION
This study summarizes that, planning and allocation of resources are necessary for organisation as it helps in
boosting productivity of firm. Customers are most important for firm as it helps in earning profitability and market
share. Company managers have to propagate new levels of competitive strength for gaining new synergy of efficiency
and to gain wider strong financial profits and outputs. Company through planning and allocation can easily meet
external changes of environment and get competitive positioning in market. The external factors compose risk for
bringing on wider business decisions. Tree diagram and inter- relationship diagram has been used in structured and
allocation of resources. It was also seen that the finance plays a crucial role within the management of the small
business. This is due to the fact that when the finance is properly arranged and allocated then the small business can
easily manage the work in effective manner. Thus, for this the use of financial statement like cash flow, balance sheet,
profit and loss and other is very essential. Also, in addition to this it was seen that the use of BEP os also very helpful for
business to manage the small business. This is due to the reason that this will assist the company in managing the level
of production there the company can have no- profit no- loss situation. The company must also comply with the legal
laws and legislations of the business which mainly includes Employment law, Consumer protection Law, Competition
law and Health and safety law.