Marshfield Bakery Ltd: Resource Management and CRM Analysis

This report analyzes key factors small businesses consider when choosing resources, focusing on Marshfield Bakery Limited as a case study. It discusses the importance of financial position, marketing issues, leadership traits, technological changes, and legal and environmental considerations in resource selection. The report also explores Customer Relationship Management (CRM), detailing collaborative, operational, and analytical CRM systems, including their advantages and disadvantages. Furthermore, it examines transnational development strategies such as internet use, joint ventures, and franchising, highlighting their benefits and drawbacks for international expansion. The report touches upon break-even analysis and financial statements, concluding with a brief overview of relevant legislation. Desklib provides access to similar assignments and study tools for students.

Unit 29- Questions
Table of Contents

INTRODUCTION...........................................................................................................................1
1. Factors that a small business needs to consider when choosing the right resources to
complete their objectives/goals..............................................................................................1
2. The term Customer relationship management and its main areas......................................2
3. Transnational Development................................................................................................4
4. Break even analysis............................................................................................................6
5. Financial Statements...........................................................................................................7
6. Legislation..........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Small businesses tend to comprise of the some privately owned corporation, partnership or
sole proprietorship that tend to have a limited amount of resources and fewer employees as
compared with regular or large sized organisation (Adhikari, Alm and Harris, 2021). The small
size business selected for current report is Marshfield bakery limited which is family founded
bakery distribute of handmade goods across the UK and Europe.
1. Factors that a small business needs to consider when choosing the right resources to complete
their objectives/goals
It has become much more important and vital for the small business to consider some factors
while choosing the right resources to complete and effectively achieve their goals and objectives.
The main factors that are being consider by the Marshfield bakery limited when choosing the
right resources to complete their objectives/goals are listed and discussed as below:
 Financial position- A small business organisation need to effectively analysis and
evaluate its financial position and availability of funds when the choosing the resources
to complete their set goals. It has been seen that the small business like Marshfield bakery
limited tend to have a limited access to monetary funds and investment. Thus, it become
essential to set out proper budgeting and their financial position to chose the appropriate
resources based on ability of funds to have better achievement and accomplishment of the
objectives. Analysis of financial position is important as it supports better selection and
choice of resources to meet set objectives in most cost effective manner (Baker, Kumar
and Pandey, 2021).
 Marketing issues- It has been seen that the lack of marketing analysis and the prevailing
issues are the biggest limitation of a small business organisation. Thus, Marshfield bakery
limited must effectively review and analysis the set marketing issues before choosing the
resources to ensure and have better connection and interaction with the customers to
effectively achieve and meet the set objectives. Considering marketing issues is a vital
and important factor while selecting and choosing the resources to meet set goals as it
supports better underdoing about the prevailing needed and expectation of customers
based on effective communication and interaction that supports higher success and
productivity level.
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 Leadership traits- Considering effective leadership while selecting and choosing the
resources are vital and important to achieve the set objectives as it tend to provide
guidance and coordination between all the applied resources to effectively achieve the set
objective. Leadership trait are important factor during the selection of resources as it
helps in setting out an entire base and supports effective planning to ensure proper
selection and vital use of the resources to effectively achieve and accomplish the set
objective (McKenzie, 2021).
 Technological change- The technical environment is hugely dynamic and directly impact
the overall efficiency and productivity level of a firm. Thus, it is important and vital for a
small business to evaluate the technical factor while choosing the resources to ensure the
use of most updated and latest techniques which plays a vital role in effectively achieving
the set goals and targets.
 Legal and environmental change- The legal and environmental change are also vital
factor while selecting the resources as various laws are made to ensure the use of quality
products and provide a safe and quality services and products to customers. Further, the
environment changes also influence the selection of the resources as with respect to
current scenario all business organisation especially the small enterprise are planning and
tending to support the eco-friendly products to effectively meet and achieve its set
objective (Anderson, Lazicky and Zia, 2021).
2. The term Customer relationship management and its main areas
The term customer relationship management tend to comprises of the technology that helps
in managing the company's relationships and interactions with customers and potential
customers. The main goal of making use of the customer relationship management within a small
enterprise is to have improvement in its business relationship along with staying connected with
the customers and it also properly streamline the processes and improve the overall profitability
level. Along with this, the CRM also helps a business to gain and have a better insight into the
behaviour and expectation level of their customers so that proper modification can be in their
business operations to ensure that customers are served in the best possible way (Chen and Liu,
2021). The main arears and key components of the CRM are discussed and provided as below
along with its advantages and disadvantages:
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 Collaborative CRM systems- The collaborative CRM system comprises of the integration
between departments and channels that are vital and effective in saving the customers
from the dreaded experience of repeating themselves each time they talk to a new
contact. The main advantage of the collaborative CRM system comprises of the fact that
Cuts down customer service costs and also increases the value-add of the products along
with providing for better up-selling to existing clients. Along with this, the collaborative
CRM also tend to increases customer retention rates and loyalty by the way improved
communication to retain and serve more customers with fewer resources. Higher cost and
enhanced level of the complicity are due to collaboration of major task and resources is
the main drawback of the collaborative area of CRM (Gambirage and et. al., 2021).
 Operational CRM system- This area of the CRM system tend to help to streamline the
company’s process and also provide a better tool to visualize and more effectively handle
the full customers journey and pathway that tends to high the number of touchpoints. The
use of the operational arear of CRM tends to provide the automation feature and also
supports better storage of the customer information and effectively deals, and leads in a
unified repository. Along with this the use of operation CRM also boosts efficiency with
the help of service automation and also allowing the businesses to make the most out of
limited resources. Lack of commitment and ineffective business culture are taken as the
main drawback of the operational CRM.
 Analytical CRM- This area of the CRM tends to manage and associated with the system
that manages the back-office operations of a firm with a great ease. The use of the
analytical CRM enables businesses to take data-supplemented decisions by evaluating
customer behaviour and forecasting purchase intention along with this it also empowers
businesses to effectively collate customer information and organize it into a repository.
The main drawback of the analytical CRM comprises of the burdensome of the data entry
along with dependent in proper set up and high cost (Chatterjee and et. al., 2021). The
main benefits and advantages of the analytical are of CRM comprises of the collate of the
customer information along with effectively organizing it into a repository. Along with
this, the analytical CRM also offer personalized interactions to improve the relationship
with customers and prospects.
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3. Transnational Development
The term transnational development is basically associated and related with the
international expansion of a firm which comprises of the various action that take to lend aid and
support development of firm around the world. Thus, the term transnational development is
tending to associated with the global network that bringing development and postcolonial
approaches to ensure expansion at global level (Alam, Al Karim and Habiba, 2021). The various
ways through which a business can effectively expand and develop at international level are
discussed below along with analysing their key benefits and drawbacks:
Internet
It basically comprises of and present the vast network that tend to connects the
computers and users all over the world. Through making the use of the internet, a Business can
effectively expand at global level as it supports and leads to effective and continuous sharing of
the information with the people across the world and also set out improved communication and
interaction. The main advantages and disadvantages of making use of the internet to expand at
international level are provided below:
Advantages Disadvantages
 Most easy and potential access to
global market along with reduce
building overhead at various location
across world.
 Reduce Marketing cost and provides
most continuous and efficient
communication and interaction with
customers across the globe.
 Allows automated systems and
resources sharing for companies to
easily communicate with their shipping
provider and other parties to eliminate
the issue of delays and also ensures
streamlined and timely process.
 Reduced physical interaction that limit
the scope of global expansion.
 Potentially lower profit margin due to
lack of personal touch and direct
interaction (Dalimunthe and Pane,
2021).
 Chances of negative reviews are high
over the internet that effects the image
and brand position while international
development.
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Joint Venture
It basically comprises of and present the business arrangement in which two or more than
two parties are working together and agree to pool and make parallel use of the resources with
the main purpose of accomplishing and achieving some specific task. The joint venture provides
an effective way that can be adopted by a business to have improved expansion at international
level as it supports sharing of complementary strengths of two or more organisations at global
level that enhance the overall technological and capability level through brining innovative
product and services at global level (Smith and Welch, 2021). The key advantages and drawback
of joint venture as a way in which a business can expands international are listed and provided as
below:
Advantages Disadvantages
 Provides an opportunity to gain
improved insights and better expertise
which supports effective expansion and
development at global level.
 Get access to better resources
comprises of larger specialised staff
and improved technology along with
higher capital to expand at global level.
 Higher level of flexibility is provided
along with better sharing of risk and
costs (Cochran, Robertson and Hoek,
2021).
 Objective of the Joint venture are not
clearly and tend to rarely communicate.
 In joint venture, different companies
are working together so a higher risk of
imbalance is there.
 Chances of the culture clashes are also
high in joint venture due to poor co-
operation level.
Franchise
This way of international expansion of the business comprises of the method of
distributing the products and services at global level through involving some franchisor who
helps in establishing the better brand image along with improved business system. The main
advantages and drawback of Franchise as a way to international expansion are listed and
provided as below:
Advantages Disadvantages
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 Lower risk is involved in franchise as a
more secure investment and backing
support is offered.
 Provides collective buying power to
attract and cater larger number of
customers
 Supports re-opening assistance with
operations like site selection, design,
construction, financing, training, and
grand-opening programs.
 The initial investment of franchise is
quite high.
 franchise leads to a limit in the own
creativity and innovation level of the
business organisation.
 Financial information of being get
shared with the other cooperates and
franchisers (Elvan and Birben, 2021).
4. Break even analysis
It tells about the number of units of a product that must be sold by an organisation to the
cover the total fixed and variable costs of the production. Thus, the break-even point reflects
about the margin of the safety through determining the level of the production or a targeted
desired sale to cover the cost (Adhikari, Alm and Harris, 2021). Further, the break-even point
tends to looks at the level of the fixed costs in relative to the profit earned through each
additional unit that has been produced and sold. To calculate the break-even point in units, use of
the following formula is made:
Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
The Break-even analysis of the Marshfield bakery limited is provided below:
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Thus, the Marshfield bakery limited needs to produce and sell at least 1000 units of
product to work at breakeven point where no profit or loss is made (Baker, Kumar and Pandey,
2021).
5. Financial Statements
The Financial statement basically comprises of the formal records of a business
organisation that tend to reflects about the actual financial activity and business position of a
firm for a specific period of time. The four main documents comprise within the financial stamen
of a firm includes its balance sheet, income statement, cash flow stamen and stamen of the
shareholder’s equity (McKenzie, 2021). Balance sheet forms out the main financial statement
that reflects the financial position of a firm along with assets, liability and owners equity of a
company at a given point of time. The Financial statement and balance sheet of the Marshfield
bakery limited has been provide as below:
Figure 1: Financial statement of Marshfield bakery limited, 2020.
The financial report of Marshfield bakery limited presenting that this small business
organisation is having a Turnover £7M, Gross Profit £1M and the Cash of £277,682.00. Further,
the Marshfield bakery limited is having the Total Assets of £2M, Working Capital of
£873,076.00 while the EBITDA of £761,636.00 (MARSHFIELD BAKERY LIMITED, 2020).
Thus, on the basis of the analysis of the financial statement of the Marshfield bakery limited for
last some years it has been observed that it having an improving performance every years as its
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profits and sales are tend to increase. Further, it has been analysed that financial statements are
used to improve the running of the business as it provides enormous information about the
overall revenues, expenses, profitability and other vital information thus supports better check
and control over short and long term performance. Along with this, financial statement also
supports better decision making and improved strategy formulation based on statistical facts that
supports improved business running (Anderson, Lazicky and Zia, 2021).
6. Legislation
The term legislation can be defining as a preparing and enacting the laws and provisions by
some authorised legal state or national legislature for protection of rights of the individuals.
There are many legislations that are made to protect the rights of worker and other associated
parties within a firm that are discussed below in context of Marshfield bakery limited.
Employment act, 1996- This act as been passed by the conservative government of the UK
to codify and support the exiting law on individual’s rights in UK based on labour law. The
Employment act, 1996 is used and applied within the Marshfield bakery limited as it reduces the
chances of unfair dismissal of employee along with protection of their wages and zero hour
contracts along with flexible working to support better working conditions within a firm (Chen
and Liu, 2021).
Data protection act, 1998- This act is passed and implicated to support the individual’s
right of access to information about themselves which is held by an organisation, and sets out
how personal information should be collected, stored and processed. The use of the data
protection act has become vital and essential with the firm such as Marshfield bakery limited to
ensure that none of the personal and confidential information of the workers would not be share
with any third party and all the organisation would maintain the confidentiality of facts.
Company Law, 2006- This is an act of the Parliament of the United Kingdom which forms
the primary source of UK company law. The main use and purpose of the Company act 2006
comprises of the modernise and simplification of the company law. Further, the company law
2006 are adopted and use within the Marshfield bakery limited to effectively codify the
director’s duties along with granting improved and equal rights to all stakeholders and
employees together with simplified administrative (Gambirage and et. al., 2021).
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CONCLUSION
Based on current report, a conclusion can be made that the marketing issues, financial
position, technological change, etc. are some main factors that a small business needs to consider
when choosing the right resources to complete their objectives/goals. Further, internet, joint
venture and franchise are main ways to support expansion of a business at global level. Balance
sheet is a vital financial statement that reflects business position for a specific period of time.
Finally, it has been summarised that Employment act, data protection act and company act are
used within the firm to support a better and positive working environment through protecting
rights of workers.
REFERENCES
Books and journal
Adhikari, B., Alm, J. and Harris, T.F., 2021. Small business tax compliance under third-party
reporting. Journal of Public Economics, 203, p.104514.
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Alam, M.M.D., Al Karim, R. and Habiba, W., 2021. The relationship between CRM and
customer loyalty: the moderating role of customer trust. International Journal of Bank
Marketing.
Anderson, S.J., Lazicky, C. and Zia, B., 2021. Measuring the unmeasured: Aggregating,
anchoring, and adjusting to estimate small business performance. Journal of Development
Economics, 151, p.102655.
Baker, H.K., Kumar, S. and Pandey, N., 2021. Thirty years of Small Business Economics: A
bibliometric overview. Small Business Economics, 56(1), pp.487-517.
Chatterjee, S. and et. al., 2021. The effect of AI-based CRM on organization performance and
competitive advantage: An empirical analysis in the B2B context. Industrial Marketing
Management, 97, pp.205-219.
Chen, W.H. and Liu, Y.Y., 2021. Configurations of home-country experience, leapfrog strategy,
and management team composition for acceleration of international expansion: Evidence
from Asian multinational enterprises. Asia Pacific Journal of Management, 38(2),
pp.709-733.
Cochran, C., Robertson, L. and Hoek, J., 2021. Online marketing activity following New
Zealand’s vaping legislation. Tobacco Control.
Dalimunthe, H. and Pane, A.A., 2021. The Effect of Internal Control and Compliance with
Accounting Rules on the Quality of Financial Statements at PT. Bank of North Sumatra
Medan. Budapest International Research and Critics Institute (BIRCI-Journal):
Humanities and Social Sciences, 4(1), pp.966-975.
Elvan, O.D. and Birben, Ü., 2021. Analysis of the Ramsar Convention’s effectiveness on the
Turkish legislation and judicial decisions. Wetlands, 41(3), pp.1-11.
Gambirage, C. and et. al., 2021. EMNEs international expansion: home country institutional
voids and nonmarket strategy effects. In Academy of Management Proceedings (Vol.
2021, No. 1, p. 14961). Briarcliff Manor, NY 10510: Academy of Management.
McKenzie, D., 2021. Small business training to improve management practices in developing
countries: re-assessing the evidence for ‘training doesn’t work’. Oxford Review of
Economic Policy, 37(2), pp.276-301.
Smith, T.B. and Welch, T.D., 2021. Interpreting Organizational-Level Financial
Statements. Nursing Administration Quarterly, 45(4), pp.353-359.
Online:
MARSHFIELD BAKERY LIMITED. 2020. [Online] Available Through:<
https://uk.globaldatabase.com/company/marshfield-bakery-limited >.
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