Small Business Management and Resource Allocation Report: DCS Group

This report analyzes the management and operations of a small business, specifically focusing on DCS Group, a wholesale store in the UK. The report delves into key considerations for planning and allocating resources, including financial and human resources, goals, and the use of tools like Gantt charts and critical path analysis. It explores customer relationship management processes, including customer portfolio analysis, customer intimacy, and customer lifecycle management. The report also examines transnational business development, including its benefits and drawbacks. Furthermore, it includes an annual itemized monthly cash flow forecast, break-even analysis, and an interpretation of key financial statements. Finally, it addresses relevant legislation and regulations impacting small businesses. The assignment covers financial resources, human resources, goals, and the use of tools like Gantt charts and critical path analysis. The report analyzes the management and operations of a small business, specifically focusing on DCS Group, a wholesale store in the UK.

Managing and Running a
Small Business

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Main considerations a small business or social enterprise needs when planning and
allocating resources......................................................................................................................3
TASK 2............................................................................................................................................5
P2 Different processes of customer relationship management for small business organisation. 5
P3 Way of small business can develop transnationally benefits and drawbacks.........................7
TASK 3............................................................................................................................................8
P4 An annual itemised monthly cash flow forecast showing fixed and variable costs...............8
P5 Way of break-even analysis applied in an organisational situations....................................11
P6 Interpretation on key financial statements for an organisation for contribution in successful
management...............................................................................................................................11
TASK 4..........................................................................................................................................12
P7 Key legislation and regulations which have major implications on small business
companies..................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In this fast changing world small business entrepreneurs are put a great impact on the
worldwide economy. These ventures are not only increasing the economy but they are providing
employment opportunities as well. This aid companies in hiring eligible candidates who are
skilled enough in performing their task in an effective manner (Bridge and O'Neill, 2012). Along
with this, it is crucial that firms implement new and innovative ideas so that their business can
foster and provides benefits in order to sustain in the market for a longer period of time.
Company which is taken in this assignment is DCS Group which is a wholesale stores in United
Kingdom and provides with necessary grocery items to its customers. This report will include
how a small business make plans and allocate resources so as to achieve targets and objectives in
a speculated time frame. With the help of this assignment the process of customer relationship
management will be evaluated for all business or social enterprise including the benefits and
challenges of transnational operations. Along with this, cash flow, budget and break even
analysis is involved in this assignment. Lastly, implication of regulations and legislations on a
small business or social enterprise is included in this report.
TASK 1
P1 Main considerations a small business or social enterprise needs when planning and allocating
resources
After the action of BREXIT, government of United Kingdom gave opportunities to small
business enterprise for coming up with new and innovative ideas and establish its business for
gaining maximum benefits. As a result, this will ultimately increase revenue for the economy of
the nation. Therefore, in terms of positive impact of BREXIT, an individual can now start its
own business in the open market. But this can be possible if new ideas are applied in an effective
manner so that products and services can be delivered according to the need and requirements of
customers. Therefore, in order to run a business successfully it is crucial that proper planning is
being done along with allocation of resources (Burns, 2016). Apart from this, other factors that
are also required to be considered are forecasting and budgeting, financial statements,
recruitment and selection etc., on a continuous basis. As a result, it will enable small business in
delivering effective services to its customers. Thus, in relation with DCS Group, as company is
dealing in retail sector and operating in small scale so for providing effective services and
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facilities firm is first analysing the needs and requirement of customers who are living in that
particular areas so as to sustain its loyal consumers for a longer period of time. Along with this,
company is providing effective working environment to its employees so that better services and
facilities can be provided for attaining success in business (Congregado, Golpe and van Stel,
2014).
When it comes to increasing business activities it is crucial that Company makes
appropriate strategies and plan of action which can further be implemented for attaining success.
In relation with DCS Group, company is using its available resources like skilled technicians,
members of research and development etc., who are playing their crucial role for attaining their
set goals and targets. Apart form this, some of the other factors that can have an impact on
functions of a company are mentioned below for better understanding:
Financial resources: This is one of the important factors that are required by company
so that all the activities can be executed in an effective manner. Because without having
appropriate funds company cannot perform its different actions such as purchasing of raw
materials, allocation of resources etc., In terms of DCS Group, company also needs adequate
funds for operating its business activities and in order to do the same they are taking help from
banks and other financial institutions. Along with this, company has to think of saving more and
more funds from their business as they are running at small level (Crane and Matten, 2016).
Human resource and their skills and qualities: This is one of the crucial element that
monitor all the function of a company from recruitment to providing salary, compensation,
giving resources etc., Other than this, HR department can aid company in executing their plan in
appropriate manner. In relation with DCS Group, human resource department are making
effective policies and strategies for their business activities. Along with this, HR department is
aiding company with resources and they are providing requirements of other firms who have
hired DCS Group for providing eligible candidates for their organisation. In addition to make a
proper balance between activities Human resources department is giving appropriate training and
development skills so that employees can perform their task in a proper manner.
Goals vision and targets: Every company has its vision according to which gaols and
targets are achieved. Thus, in case of DCS Group their vision is to increase the market share upto
12% under the duration of six months so that profitable and manageable growth can be attained
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by the company. Along with this, DCS Group has a vision of providing best quality services and
facilities to its customers so as to meet the expectations of the same.
In addition to this, DCS Group while providing training and development programmes
they are using effective tools and techniques specially to the candidates who are skilled in
technical knowledge. Other than this, with the help of critical path analysis company can perform
all the activities in a systematic manner (Drucker, 2012). Further to know more about this, both
the tools are explained below for better understanding:
Gantt Chart: This is considered as an effective tool as through this, company can get
proper information related to the process of doing the task under speculated time frame. Gantt
Chart is represented in two bars one is horizontal axis that shows the total time span and other
one is vertical axis that shows project make up like resources that are required in order to
perform the task in an effective manner. Therefore, DCS Group with the help of Gantt Chart they
are identifying the task that are to be performed on prior basis so that it can be accomplished in
an effective manner.
Critical path analysis: This is a tool that is used for managing budget and overall
activities of the project. Critical path analysis tool can be used by any company whether it is a
small, medium or large firms. Therefore, with the help of this tool managers of the company can
ascertain the task under what duration it has to be completed (Durst and Wilhelm, 2012).
TASK 2
P2 Different processes of customer relationship management for small business organisation
Customer relationship management is an approach which helps an organisation in
communicating with potential customers of an organisation (Customer relationship management,
2018). In this company basically analyse the history of customers regarding their company which
helps firm in improving business relationship. This will not only enable company in providing
better services to its customers but will also enable firm in retaining its valuable customers for a
longer period of time. DCS Group is using numerous approaches and strategies like taking
feedbacks and reviews for the products and services they are giving to its customer. As a result,
it will aid company in providing effective services in order to serve customers with best
facilities. Therefore, with the help of better customer relationship management firm can enhance
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its sales and profitability which will ultimately provides growth in business activities (Hammer,
2015).
In addition to this, by doing right investigation company can understand about the
choices and preferences of customers so as to fulfil the needs and demands of consumers in a
speculated time period. In relation with DCS Group, they have focussed on two approaches and
they are Customer Relationship Management (CRM) and Corporate Social Responsibility
(CSR).
Therefore, for a company Customer Relationship Management works as a tool which
assist firm in analysing and interacting with its customers for in accordance to know about the
needs and wants of consumers (Harmon, 2015). Company has flexible strategies which can
further be changed according to choices and preferences of customers. Along with this, in
relation with Corporate Social Responsibility, every company has its responsibility towards the
employees who are working and society as well such as providing appropriate working
environment to workers so that effective outcomes can be gained. Furthermore, Customer
Relationship Management includes certain techniques and these are explained below for better
understanding:
Customer Portfolio Analysis: This is one of the effective analytical tool which is
basically used by a company in order to have a better understanding of the standards and
behaviour of customers so as to provide services and facilities accordingly. As a result, by
having appropriate knowledge company can identify the purchasing power of consumers,
people's lifestyles etc., Therefore, with the help of customer portfolio analysis employees can
easily make judgements about the needs and wants of customers regarding what kind of services
and facilities they want from the organisation (Jasra and et. al., 2012).
Customer intimacy: Company establishes business and provides services and facilities
in order to gain maximum benefits and for this firms tend to maintain better relationship with its
customers. Thus, customer intimacy is one of the effective tool through which company can
easily establish better relationship because with the help of feedbacks and reviews DCS Group
can attain better position at market area and sustain in the same for a longer period of time. Apart
from this, if any issues and problem are being faced by customers than this can be resolved
through proper customer intimacy tool.
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Customer life cycle management: According to this process company’s entire journey of
identifying potential customers and then establishing better relation and till maintaining the same
is taken place. Thus, this cycle is crucial with firm’s point of view in order to have increased
customer base (Jenkins and et. al., 2013).
P3 Way of small business can develop transnationally benefits and drawbacks
Transactional sale is determined as a tool which is being used by firm so as to sell
products in foreign market place in order to get maximum benefits in speculated time frame. In
relation with DCS Group, benefits that is gained by the firm is that it is helping firm in analysing
current position so that better understanding can be developed in order to increase performance
level of the firm. Therefore, this tool can be used for making a comparison between the actual
sales and the sales which is there as per the current market situation. Thus, it will ultimately
improves the productivity level of the company in a speculated time period.
In addition to this, for gaining benefits DCS Group is developing effective business plan
under which company is formulating strategies and action plan for their business operations.
Therefore, according to the present scenario, company with the help of translational sales they
are identify the opportunities at international market so that DCS Group can provide services and
facilities to the targeted customers. Thus, it can be said that transactional tool is very effective in
analysing the needs and demands of customers living in a particular area (Olusegun, 2012).
Transnationally strategy process helps company in gaining maximum benefits by
increasing its performance level. Therefore, the process of transnationally can be done by
through exporting large number of goods and products to other countries. This will assist
company in increasing its customer base and more and more money as well.
Henceforth, considering this approach advantages and disadvantages are given below for
better understanding:
Advantages:
 This is a kind of tool which is being used by DCS Group for improving its sales and
profitability in a speculated time frame. As a result, it will improve company's profit
margins.
In addition to this, transactional sales will be very effective in delivering right kind of
opportunities for making appropriate decisions so that issues and complications can be resolves
in quick time (Pinho and Thompson, 2017).
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 Along with this, transactional sales strategy is very helpful in merchandising goods and
services into a new and fresh market. Therefore, this will aid company in having a
positive impact on the sales and profitability of DCS Group.
Disadvantages:
 If there are pros for anything than there can be limitations as well, for instance: for
establishing business in different areas of the world it is a requirement of developing
plans and business strategies but for this, company may require large amount of
investment and this can create a problem as DSC Group is a small business because there
can be a possibility that company might not afford in buying goods and raw materials.
Companies along with following norms and ethical policies of different countries can be quite
difficult as a result, it can work as a disadvantage for business companies. But firms have to
follow all these laws as it further assist firm in making appropriate budget so that resource can be
utilised in an effective manner (Sampaio, Thomas and Font, 2012).
TASK 3
P4 An annual itemised monthly cash flow forecast showing fixed and variable costs
Cash Flow Forecast is an effective tool that plays a crucial role in developing effective
strategies so that it can be implemented for attaining growth in business activities. Apart from
this, Cash Flow Forecast can be used by DCS Group for controlling its expenses so as to invest
the same for getting better results and outcomes. Therefore, there are some factors that can be
undertaken by the company are mentioned below for better understanding:
Equity Finance: This is a typical financing tool which is further used for raising funds
by increasing sales and market share. In context with DCS Group, as they are dealing in small
sector thus, they cannot sell their shares due to low market value. Thus, company for having
appropriate funds they are considering different financial institutions in order to generate funds
for their working (Schaper and et. al., 2 014).
Bank Loan: This is a kind of institution that lend some amount of money to companies
for performing their activities but they have keep collateral security. Furthermore, in relation
with the firm DCS Group, for having funds company can take loans at simple interest.
Budgeting, planning and forecasting: Company's performance rely on these three
pillars as if firm have appropriate funds than they can make proper budget plan which will
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further assist DCS Group, in making effective planning so as to achieve set goals and targets in a
speculated time frame. As a result, if the process will be done effectively than it can assist firm in
forecasting future activities in order to have better growth in business operations (Smit and
Watkins, 2012). Therefore, DCS Group below mentioned tools and techniques which can be
used by company for budgeting, planning and forecasting their activities:
Measure moving average: This can be used by DCS Group in order to gather
information and data so as to attain goals and objectives in a limited time frame. Along with this,
it is applicable in knowing current market position of the company.
Time series data or information: It is effective in developing new and different
applications so that it can be further use in order to streamline production schedule. Thus, with
the help of this, DCS Group can execute the estimated budget that will be required for executing
the plan in an effective manner.
Balance Sheet, cash flow statement, profit and loss account of DCS Group Company:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 120 220
Stock 30 45
Debtors 80 65
Bank 30 35
Total 230 340
Creditors 130 150
Bank overdraft 80 50
Total 670 905
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Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 40 60
Cost of sales 20 17
Gross profit 20 43
Overheads 8 9
Net. Profit 12 34
Cash flow Statement
Cash budget
for the year
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 28000 30250 31550 29650 28750
Budgeted cash receipts 13400 37550 64690 92370 118170
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Total cash available 41400 67800 96240 122020 146920
Cash distributed
Direct material 1500 1050 1650 1500 1550
Direct labour 1300 660 850 850 680
Overhead 500 650 630 700 670
Selling and distribution 550 750 740 800 760
Total cost use 3850 3110 3870 3850 3660
Cash surplus/ deficit 37550 64690 92370 118170 143260
Now it has been concluded that Cash flow forecast quarterly when the criteria about
monthly, so that DCS group can work effectively with the help of actual cash flow in an effective
manner. On the other hand Break even analysis is always applicable for situation of an
organisation in order to fixed cost as well as price of selling in an appropriate manner. Therefore,
cash flow statement always shows the profit and revenue of the firm. Wherein, loss and profits
account including in the some details in order to maintain records of an organisation. Apart from
this, employment law, healthy and safety as well as protection of data is also useful in order to
make good profit from the company. Therefore, DCS follows different kind of rules and
regulations in order to develop good environment within the organisation in an appropriate
manner.
P5 Way of break-even analysis applied in an organisational situations
Business organisation for evaluating relationship between profits, cost, expenses and profit
use effective tools such as Work Break analysis so that different levels of output can be gained.
This assist company in analysing the stages where level of revenues and cost of production are
equal (Trevino and Nelson, 2016). Another name of break even analysis is profit contribution
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analysis which can be used as per two conditions like linear cost and revenue relationship & non-
linear cost and revenue relationship. Moreover, DCS Group can use this methodology and apply
this through graphical method, algebraic method, contribution analysis and profit volume ration.
But company has adopted Algebraic method which is assisting in making appropriate decisions
in difficult circumstances and situations. In order to evaluate the break even quantity it can be
done with the help of method mentioned below:
TFC= Total Fixed Cost
P= Price
AVC= Variable cost per unit of outcome.
QB= TFC/ P-AVC)
Therefore, in order to understand the same it can be done with the help of an example:
suppose 9 per unit is our variable cost whereas 40,000 is taken as fixed cost and selling price is
18. Thus, here Break-even point will be = 40,000/(18-9) = 4444.45.
P6 Interpretation on key financial statements for an organisation for contribution in successful
management
In today’s scenario, small businesses are playing a crucial role in enhancing the economy
level of a nation but to operate its business it is important that company evaluate their
performance and financial statements on a regular level so that better outcomes can be gained
(Weske, 2012). While doing their business activities there can be a possibility that firm had to
make various transaction online as well as offline. Therefore, it is essential that managers of the
company have a proper record of the same so as to have appropriate information regarding funds.
Small business like DCS Group, they have a excellent finance department which is assisting
company in examining all their cash transaction as a result, it is influencing their investors so
that they can invest some amount of money in order to have growth in business operations. Other
than this financial statement also provides a better understanding of sales and productivity
company has gained. Thus, on the basis of this, proper evaluation of pricing strategies can be
made. Some of the financial statement that can be adopted by DCS Group is mentioned below
for better understanding.
Cash Flow statement: It is determined as detailed information about the amount of that
cash company that is received by company from external and internal sources or activities
(Williams, 2012). In addition to this, investment which is done through outflow cash activities
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under the fixed period of time is mentioned than it is called as Cash Flow Statement. Therefore,
in terms of DCS Groups with the help of cash flow statement company can cover its entire
payroll areas and other factors.
Profit and loss statement: Every company has some kinds of profit and loss that helps firm
in determining the current position of organisation at market environment. Profit and loss
statement majorly includes factors such as cost, revenues and expenses done under speculated
time period etc., Therefore, in relation with DCS Group, with the help of profit and loss
statement, company can lookout for places where they can maximise their profits so as to
generate more and more revenues. As a result, firm will be able to attain its goals and objectives
in a speculated time period without any kind of issues or complications.
Balance Sheet: This can be used by company in order to know about the financial statement
because this includes two basic but major elements i.e. assets and liabilities. Thus, it can be said
that balance sheet assist company in keeping all the records related to profit and loss and other
factors as well (Wynarczyk, Piperopoulos and McAdam, 2013).
TASK 4
P7 Key legislation and regulations which have major implications on small business companies
In order to operate to operate a business in an effective manner there are certain rules and
regulations that are formulated by regulatory bodies of a country and these are to be followed by
the firm so that they doesn’t face any kinds of issues and problems. Therefore, some of the laws
that are formulated by regulatory bodies of United Kingdom has mentioned below:
Consumer Law: This law was formed with the purpose of protecting an individual from getting
trapped in unfair business practices. Consumer laws some of the rights such as Sales of Goods
and Service Act, this make sure whatever goods are provided are of best quality so that needs
and requirements of consumers cannot be compromised (Bridge and O'Neill, 2012).
Employment Law: Workers are considered as valuable assets for the organisation as they
are the one who perform their task in order to provide better outcomes to the company. So, it is
crucial that values of employees are protected. In relation with DCS Group, company is making
sure that nobody is being discriminated at workplace and they are treated equally.
Data Protection: According to this, it is prime role of companies to protect the valuable
information of employees who are working within the organisation and its customers. Therefore,
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no organisation without any personal consent can provide personal information to anybody and if
it is done so than it will be considered as an offence.
Health and safety act: In every organisation it is crucial that employees are provided with
effective working environment which is give safe and healthy workplace for executing the work
in an effective manner. For example: tools and equipments of safety, compensation for any loss
or injury etc., this will create a sense of belongingness in the minds of employees and they will
perform their best for providing benefits to the organisation (Burns, 2016).
CONCLUSION
From the above report it has been concluded that companies who are operating its business
at small level plays a crucial role in the economy of the nation. With the help of this report, it has
been analysed that while running a business a proper planning is required which can further be
implemented in order to get effective results. Furthermore, for having improved sales and
profitability it is required that better customer relationship is maintained as it will not only
increase growth rate but will aid company in sustaining their valuable customers for longer
period of time. Thus, this are some points that was being cleared by above mentioned report.
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REFERENCES
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Online
Customer relationship management. 2018. [Online]. Available Through:
<https://www.salesforce.com/in/learning-centre/crm/what-is-crm/>.
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