Managing and Running a Small-Medium Enterprise Report

This report delves into the management and operation of small and medium enterprises (SMEs), using Crawford Healthcare as a case study. It covers critical aspects such as resource allocation, emphasizing expert judgment, alternative analysis, and project management software. The report evaluates different customer relationship management (CRM) processes like customer service, sales force automation, and campaign management. It also includes a cash flow forecast and break-even analysis, alongside a discussion of relevant legislation. The report further explores strategies for transnational business development, including licensing, franchising, and strategic alliances. This comprehensive analysis provides valuable insights into the multifaceted challenges and opportunities in managing SMEs.

MANAGING
AND
RUNNING A SMALL-
MEDIUM ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives................................1
TASK 2............................................................................................................................................3
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise...................................................................................................3
TASK 3............................................................................................................................................4
P3 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................4
P4 Explain how break- even analysis could be applied to an organisational situation..........5
TASK 4............................................................................................................................................8
P5 Discuss key legislation and regulations that have implications on small businesses or social
enterprises...............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
SME stands for small and medium enterprise which refers to convenient term for
segmenting businesses and other firms. This kind of firm can be described as a concept of small
and medium enterprises based on number of workers they have. They have several benefits such
as they may create unique status and importance in five-year plans correct from its beginning.
This report is based on Crawford healthcare which is the supplier of dermatology and wound
care products which may cover a broad range of skin conditions. It is focussed or dedicated to
develop and prove innovative treatment solutions (Baker, 2014). It provides care and repair
skin, support body to maintain best natural defence system. This assignment covers various
topics like necessary factors to make effective planning and allocate resources available in
company. It will focus on the customer relationship management and cash flow forecast along
with break-even analysis. Key legislations and regulations for small businesses will be discussed
here as well.
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs to address when
planning and allocating resources to achieve business objectives
Every have essential target to allocate available resources to their staff member as per
their field of expertise. This aspect is considered to prepare several blue print plans which are
necessary to conduct different kinds of activities as well as procedures to attain better outcomes
on regular basis. Crawford healthcare has to build effective and efficient planning to allocate
resources more properly. It will help to expand qualities and features of skin care products. This
will facilitate to render better services to attract new clients as well as support to retain the
current ones. It is related to health care so firm have to implement anything by evaluating it in
appropriate manner (Dobra, 2012).
There are various kinds of resources which an enterprise have such as employees, place
of work, capital, machinery and may other things which are necessary to organise several
processes of manufacturing. It also involves information which may help to work on specific
projects along with their condition on availability as well. Crawford healthcare have to collect
proper information about their resources and equipment along with purchased raw material. The
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Crawford healthcare has to first estimate all these sources including several factors which are as
follows:
Expert judgement: - This term render to bring various experts as per their field of
expertise so that they will render their views about allocation planning along with its
opportunities as well as threats. It is necessary to take suggestions from experts in different field
so that an appropriate plan of action can be created along with allocation of resources to gain
maximum outputs properly. Moreover, it will facilitate to manage overall available sources and
staff members in proper way to conduct different operational activities for generating better
outcomes which facilitates to fulfil desired targets of business. This will help Crawford
healthcare to grab those strong points to attain benefits and put efforts to reduce negative
impacts. It is essential to know about correct opinions to allocate available resources in an
appropriate manner for achieving the profits.
Alternative analysis: - It can be defined as to consider certain different options for
correctly assigning resources. This term is also involve varying the number of sources along with
those which are utilising currently. Meanwhile, it is necessary to analyse secondary options also
which can be utilised in case of some critical problems generated so that to reduce the same other
alternative option can be used to facilitate further operations properly. This factor can be
determined for better choice which helps to attain effective as well as efficient planning.
Sometimes, there's more than single method to accomplish an alternative or activity analysis
supports decide among possibilities (Doherty and Norton, 2013).
Published estimating data: - It may be explained as something which project managers
in a lot of industries use to render support them to figure out amount of resources needed. It is
analysed by using several sources such as books, journals, articles and periodicals. This will help
to collect, analyse and publish data from other's projects. Moreover, previous data is essentially
analysed because it provide help to make further planning with present resources and manpower
in order to complete actual requirements of desired goals of business.
Project management software: - This term can be described as that various kinds of
software and techniques are used in organisation to conduct their several activities. For example
Microsoft Project will often have various characteristics. These may be designed to support task
managers to estimate resource requirements as well as constraints. It will facilitate to find the
best combination of assignments for project itself. Additionally, it is necessary to observe and
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analyse more suitable software to mange particular project so that it can be complete in an
appropriate manner along with generating better results to achieve satisfaction of client
successfully.
Bottom up estimating: - It may refer to break down of complex procedures into
segments and performing out resources allocation for each one (Durst, Yip and Lee, 2015). Thus,
process of estimating sources on an individual basis as per need and cost for adding these up
together for total figuring. The bottom up calculation is an appropriate means of estimating,
rendered the measurements at schedule activity stage are accurate. Moreover, it will take
considerable amount of time to do bottom-up estimating because every process must be
assessed and calculated appropriately. It is well understood that smaller and more detailed the
activity then greater will be accuracy as well as cost of this technique. Major task can be
converted into small various activities which provide support to allocate huge project between
staff members so that it can be completed perfectly with better outputs.
TASK 2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise
Customer relationship management can be defined as those methods or techniques which
may provide support to manage this aspect in an organised manner. It is a broadly recognised
and widely implemented strategy for managing firm's interactions with their clients as well as
sales prospects. This factor may involve utilising various technologies to organise, automate and
synchronize business procedures like principally sales activities (Easterby-Smith, Thorpe and
Jackson, 2012). But it also includes several more activities such as marketing, customer service
and technical support. The Crawford healthcare can adopt various processes of customer
relationship management which are as follows:
Customer service: - This activity is an important role in which firm represents front
office functions that interact with the clients. It can be explained those business processes which
allows the company to sell skincare products or services. It may facilitate to communicate with
consumers due to marketing and dealing with after sales service needs of desired clients. This
kind of every interaction with customer is recorded and stored within CRM software where it can
be retrieved by other workers if required.
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Sales force automation: - It is very obvious that sales department of each enterprise is
generally looking for sales opportunities with current and new consumers. The function of sales
force automation of CRM software allows marketing teams to record contact with clients. This
means can render sales force with high efficiencies as there little chance for duplication effort. It
also includes that capabilities of staff members outside of marketing team to have access to this
data to make sure that they have most recent records of contact knowledge (Eggers and et. al.,
2013).
(Source: Customer Relationship Management, 2018)
Campaign Management:- This term refers to a sales team approach prospective clients
on hope of winning new business. It can be take such technique and is often focused in
campaign, where group of particular consumers are segmented based on set of criteria. Those
people are able to receive targeted marketing materials and generally special pricing to terms are
offered as an incentive. There are CRM software which is used to record details about campaign,
client response and analysis performed as part of it.
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Illustration 1: Customer Relationship Management

Purpose of CRM:- The concept of customer relationship management provide support to
Crawford Healthcare for utilising technologies and human resource more effectively as well as
efficiently. It may results to gain insight into behaviour of clients and value of those people but
also those for marketing, customer service and technical support.
 Render services and goods as per actual needs and demands of people (El-Rafei and et.
al., 2017).
 It helps in offering better client products.
 Cross selling of products in more effective manner.
 It will provide help to sales staff close deals faster.
 Provide support in retaining current clients as well attract one ones.
 Prepare several call centres more efficient.
 It may helps to simplify marketing and sales processes.
CRM involves for small businesses:
 Process of CRM helps in determining ad target their best clients, create quality sales
leads, plan and apply marketing events with specific objectives (Harris and McCaffer,
2013).
 It may helps to form individualised relations with customers and render largest level of
service to most profitable people.
 It facilitates to know about the exact need, wants, demands, preferences and taste of
clients to provide proper service to gain their satisfaction as well.
TASK 3
P3Explain how a small business can develop transnationally and determine the benefits and
drawbacks.
Transactional operation comprises of primary process under which the Crawford
healthcare needs to undertake its activities effectively in order to achieve success. The business
can expand it's operation by different ways such as by by opening branches, franchising and
licensing etc. the branches can be opened by analysing the market that will help the Crawford
healthcare to attract and influence customers at greater extend. The Crawford healthcare can
take help of various methods in order to expand some of them can be elaborated below-
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Licensing, it is from of business agreement under which two companies are involved
which comprise of one company giving permission to another permission related to use of patent
and copyright in exchange of money. The advantage under this form is that the business that it
enable the expansion into foreign markets and the major disadvantage associated with it is
prohibits the originating from from exploring the assets existing in foreign market. The methods
will help the Crawford healthcare as it does require little or no direct investment.
Franchising,is a from of business by which owner of a particular product or service can
obtain distribution through various affiliated dealers. In order to franchisee the business the
Crawford healthcare firstly needs to analyse the market the advantage associated with this firm is
that it eliminate people who are unsuitable fro job and the disadvantage is that the high amount
of initial investment. Under this if the franchisees behave in a wrong and dishonest manner the
Crawford healthcare will be facing losses.
Strategic alliance, it is the process under which people forms an agreement between two
or more parties which aims at setting the agreement that comprise on achieving common
objectives while they still tends to remain independent organizations. Advantage of the strategy
is that company does not tends to loose their identify in the marketplace. Whereas the
disadvantage is that strategy revels the aim and objective of company in front of other parties.
This method can be helpful fro the Crawford healthcare as collaboration with other firms will
facilitates business growth.
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation
Balance Sheet
Year 2016 (value in £) 2017 (value in £)
Fixed assets 150 200
Stock 25 30
Debtors 60 45
Bank 15 25
Total 250 300
Creditors 150 200
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Bank overdraft 100 100
Total 250 300
Profit and Loss Account of year 2016
2016 2017
Sales 15 25
Cost of sales 20 15
Gross profit 35 40
Overheads 5 5
Net. profit 30 35
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8

Cash flow Statement
Cash
distribut
ed
Jan Feb March April May
June July
Aug
ust
Sept
embe
r Oct. Nov. Dec
Cash
distribut
ed
Variable
cost
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785 1500
Direct
labour 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589 1250
Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250 1000
Fixed
cost
Selling
and
distributi
on
750 750 750 800 850
950 850 650 720 715 785 795
750
Total
cost use 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419 4500
Cash
surplus/
deficit
28000 26250 24250 21950 18020
13190 8355 3915 32 -3426
-
7114
-
10580
28000
P5 Explain how break- even analysis could be applied to an organisational situation
Break even analysis:- It can be defined as relation between cost volume and profits at
different levels of activity with an emphasis placed on break even point. This term can be
described as that stage of any business in which they receives neither loss nor profit as well. That
time when the total capital received from sales is equal to total money spent to manufacture
products or items for sale.