Analyzing Resource Selection, CRM, and Financials for Business

This report provides a comprehensive analysis of key factors for small businesses in resource selection, including competition, market growth, consumer analysis, demography, and capital. It defines Customer Relationship Management (CRM) and discusses its advantages and disadvantages across technology, strategies, people, and processes. The report also explores transnational development and various ways for businesses to enter the global market, such as internet, joint ventures, and franchising, highlighting their benefits and drawbacks. Furthermore, it explains break-even analysis and its application in determining profitability, along with defining financial statements and their interpretation in assessing a company's performance. Finally, the report touches upon business legislation affecting small businesses like Oak Cash & Carry. Desklib offers this and other solved assignments to aid students in their studies.

Unit 29

Table of Contents
INTRODUCTION...........................................................................................................................3
Questions..........................................................................................................................................3
1 What factors required for small business choosing right resources .........................................3
2 Defining Customer relationship management and advantages and disadvantages..................4
3 Defining Transnational Development along with ways of entering in global business...........6
4 Explaining Break-Even analysis and its application.................................................................8
5- Defining financial statement of company, their interpretation, and how company perform...9
6- Defining term such as legislations that affect and are used by Oak Cash & Carry...............10
REFERENCES................................................................................................................................1

INTRODUCTION
Businesses Environment comprises different issues that delivers an impact on business
workings. An important term used by various businesses for providing action plan or strategies
to expand itself and gain a competitive advantage over others. The current report will be base on
various factors small businesses require to follow while selecting correct resources. It also
delivers knowledge about Customer relationship management with its advantages and
disadvantages. More about various areas to expand in international marketplace. Report also
delivers about Break even Analysis and its effective application, also covers the topic of
financial statements required by an organization. Lastly, report covers various business
legislation affecting small businesses.
Questions
1 What factors required for small business choosing right resources
Small business required to consider various factors for their goal achievement
(Akhmetshin, and et.al., 2017). With the usage of right resources organization may able to
achieve full efficiency and goals with very few hindrances.
Competition: One of the important factor to consider, with the proper knowledge about
various competition company may easily evaluate various strategies to over-come them. With
the analysis of in-present and future competitions company may covert their weakness into
opportunities and work with more efficiency.
Market Growth: This factor includes about potential market growth that need to
consider (Khan, and et.al., 2017). If a small business is operating in a particular market and there
are less to none market growth or opportunities firm may not able to sustain. Decision-making is
required before entering, to acquire knowledge about choosing a short-term location with more
growth or long term location with very less growth. This factor is important for organization goal
achievement and staying in the long run.
Consumer's Analysis: Factor required for any small business before choosing right
resources to have proper understanding about customers. To have better analysis of what
customer's want, what are their taste and preferences also about what kind of products consumers
choose. This factor is quite important for any business to acquire some competitive advantage
over other companies. Also if done correctly company may change its market into monopoly.

Demography: Under this factor needs to consider choosing the right geographical area
for business to take place (Contractor, 2021). Businesses need to identify and analyse the
demography regarding choosing, as to select the right market for right type of business.
Choosing the area having high amount of availability of resources for continuous production to
happen. This factor is important for any business to have issues free working for organization to
achieve full efficiency and goals.
Capital: The factor includes about the capital required and investment to choose, as
every business main objective is to have high profit ratio (Vasilev, and et.al. 2017). Before
entering into market company requires managing huge capital for initiating any process as
capital is required at all the levels. Also, business required to have high investments for non stop
working. The capital plays an important factor for business achieving high operations with
regular availability of resources.
2 Defining Customer relationship management and advantages and disadvantages
Customer relationship management is defined as analysis or strategy used by any
organization for improving and maintaining company's relation with current and future
customers (Harrison and Ajjan, 2019). The CRM aids business to analyse customers
requirements and staying connected with them. The analysis aids in business to understand about
customers and increasing reach within them. Strategy also helps in increase in productivity with
an effect cost reduction. The main key areas are
1.Technology: when people usually talks about CRM about system, used for the
management of digital interactions of company with its current and potential customers. This
includes infrastructure and applications used by company for the data collection about customer's
life-cycle (Kantorová and Bachmann, 2018.). Also includes about data regarding various sales
achievement, customer service interactions and many more.
 Advantages:
 Providing company with proper records of customers wants and needs.
 Recording sales platforms and achievement by firm.
 Comparing old records with new one for finding issues.
Disadvantages:
 The provided records may not be accurate.
 Results occurring may vary.

2. Strategies: CRM focus on key area of strategies for business goals and objectives. The
strategy needs to be based about the objectives and goals of company. Analysis required to
strategies company's cultures, visions and values. Strategies needs to be formulated in regarding
of analysing and adapting new ways for enhancing experiences.
Advantages:
 Aids in formulation of new strategies.
 Provides focuses on Company vision, culture and ethics.
Disadvantages:
 Formulated strategies may require high costs of processing.
 Does not guarantee success of applied analysis.
3. People: CRM also aims to focus on people for any core strategy of engaging. This
deals with employees focus towards their customer engagement. Keeping and analysing about
the customers wants and needs with the help of strategy. The working may provide customers
with services regarding their issues providing them with proper aid.
Advantages:
 Provides proper services towards customers.
 Acquisition of proper knowledge about customers requirements.
Disadvantages:
 Employees tends to neglect some customers of firm.
 Customers may provide organization with wrong information about satisfaction.
4. Process: This key factor focus on processes firm chooses to maintain proper
relationship with clients with proper business rules and procedures. The company aims to
formulate various customer centric process, and how can even make it more effective for firm
long run in market.
Advantages:
 Formulating and providing more benefits towards customer.
 Never ending process for regular improvement of firm.
Disadvantages:
 Regular checking is required.
 Customers may not like some of the processes.

3 Defining Transnational Development along with ways of entering in global business
Transnational Development is termed as the business strategy required by firms to carry
out commerce transaction across the world (Khurram, Dikilitaş and Zafar, 2021). This model
usually works on operations and foreign assets of companies. The model is being performed by
the market analyst experts of organization to analyse and search about the different opportunities
businesses may take to adapt and expand its commerce to some other nations. Ways in which
company expand intentionally consists of
Internet: One of the ways to expand company into international markets as with the
usage of internet. The internet made world smaller and more efficient in the business sense. With
the aid of internet company can expand itself into international market by providing customers
with products an services online. Company may increase its customer growth with acquiring
more consumers internationally by providing them about what they want.
Benefits:
 International business through internet, provides companies to have low costs
consumption of initiating business.
 With the internet firm have access to all the transaction 24/7 and may even check
about product or service in-going.
 Providing more of sustainability in the global businesses to increase brand value
in global business market.
Drawbacks:
 One of the drawbacks is internet does not provides with security as firms data
may be theft.
 The customers may not be provided with firms and products physically before
purchasing.
 Customers may find very hard for trusting in any organization.
Joint Venture: A strategy implemented by two or more companies to expand into
international market by sharing risks and development (Chu and Yoon , 2021). Business may
gets strong potential for more expansion and growth. With the help of joint venture firms may
even expand into business market of nation having difficulties to get in.
Benefits:
 More resources acquisition with the aid of partnering firm

 Joint venture provides an enhancement or increased technical expertise.
 Provides firms with new ideas and opportunities to grab and maintain
market brand value.
Drawbacks:
 Conflicts may occur in between partners regarding profits consumption,
costs individuation etc.
 Different partners expect different results in the end, causing differences
and various ways of operating business.
 Restricted flexibility, as partners need to get agree on same terms before
executing.
Franchising: It is way or method of entering into global business under which the
franchisor or owner of business lends or grants permission to an individual or group franchisee to
does the business using franchisor's branding, trade mark, products etc (Calderon-Monge,
Pastor-Sanz and Huerta-Zavala, 2017). Franchising is an effective way for expanding into global
business as, the franchisor will be one who bear all profits and losses. This method provides
individuals for growing more into global expansion with usage of low capital.
Benefits:
 Brand recognition aids new business in not to start from start, as the
franchisor brand already have value in the market.
 Low failure rate also benefits new business to expand, because company
already have value in the market and all the expenses occurs on the
franchisor.
 Increasing market capture as old customers no need to introduction and
already have market space, so it became less effortful to capture more
market.
Drawbacks:
 Restricted regulations leads to follow the given set of rules and
regulations.
 Conflicts in franchisee and franchisor results in bad product and
services and sometimes even in broken of contract.

 Possession of brand control is not applicable, as firm acquires
company's franchising to expand itself.
4 Explaining Break-Even analysis and its application
The Break-Even analysis is a financial tool which is attained at the level when company
faces no profit and no loss situation (Hatch and et.al., 2017). Or its a strategy that aims to aid
company in determining about the stage new product or service going to achieve no loss or
profitability. This tool is applied to a business with
Selling price: As companies sets predetermined s.p. for product to attain the point where
it may achieve no loss no profit situation. This aids company in getting knowledge about at what
point 'Oak-cash & carry' products get to realize at point after which firm gonna attain profits.
Cost: Another way organisation is able to achieve BEP when enterprise sets the cost of
the product in such a way, through which able to recognise the product is achieving a state
where, after which company may be able to get profits for the longer run. And also can cover
fixed costs for the unit production.'
Setting revenue targets: By pre setting of revenue targets it became quite easy for any
firm, get to know about the point where company is going to achieve BEP. With this factor
considering firm is able to set priorities regarding the revenue may achieve by firm.
Break-Even analysis
Particulars Formula Figures
Selling price per unit 50
Variable cost per unit 11
Contribution per unit Selling price per unit- variable cost per unit 39
Fixed cost 1500

BEP (in units) Fixed cost/ Contribution per unit 120
BEP (in monetary terms) BEP (in units)* selling price per unit 50000

5- Defining financial statement of company, their interpretation, and how company perform
Financial statement is defined as one of those written records that convey a company or
business activity as well as financial performance appropriately. This record help in varied
manners for example in term of defining financial stability and strength of an organization. It
includes balance sheet, income and cash flow statement that provide appropriate understanding
about organizational effectiveness and efficiency to run business in the market or world of
business under specific sector.
Oak Cash & Carry falls under the category of small businesses in the UK, that has been
established its venture into retail industry and provide quality products to consumers on the basis
of their needs and according to the requirement.
According to above illustration, it has been identified that chosen small company is not
performing well as it face challenges in term of sales decline due to certain operational issues as
well as pandemic. It becomes the reason of this situation as it put negative impact on success and
growth of organization. In 2011, firm earn a lot of money as it turnover ration is high approx
8,405,295, which is quite enough for a growth of business in the world of business. From this
year to 2014, sales of its venture is decline that affect progress of company and lead to decrease
consumer base.
Particulars Formula Figures
Gross profit 11100 33.00%
Operating profit 3750 11.00%
Net profit 3850 11.00%
Sales 33600 11.00%

GP ratio Gross profit / sales * 100 33%
Operating profit ratio Operating profit / sales * 100 11.2%
Net profit ratio Net profit / sales * 100 11.5%
The above statement or financial record of chosen company can be utilized to improve to
run business in term of clarifying the room for further improvements, which is quite essential and
beneficial for management to do that. It is important and helpful for company to begin their
online services, according to that it may take approach to sell products and take orders of that via
using digital technologies. In this term, firm and its management or stakeholder may improve
financial performance and also gain chance to enter into new market place where success and
business growth chances are accessible in bulk. In order to improve or increase income level,
they may take initiative to ordinate and collaborate with those suppliers who are trustworthy and
have wide sphere of branches that may help to supply goods on time across national boundaries.
Furthermore, they may take more actions according to the performance and growth level of
company.
6- Defining term such as legislations that affect and are used by Oak Cash & Carry
Legislation is described as set of laws and regulatory concepts that passed by the
governmental bodies and utilized worldwide in the context of different aspects such as business,
economy, environment, etc. There are varied forms of laws and regulations has been governed
and passed by the parliament, which is quite essential and helpful for the companies whether it is
large or small, private or public to take into their consideration. For example, Employment Act
1996, is one of those legislations that may put positive impact on small companies in term of
retaining skilled and talented employees who are capable and effective. They are able to achieve
strategic goals and objectives of organizations such as SMEs, which in return provide benefit of
increasing profitability and productivity as well as performance level. It may drive the attention
of management toward taking decision and conducting activities to provide fair and equal growth
opportunities to each candidate even they are male or female. It is important in form of creating
positive and productive working environment at workplace where people are motivated and feel
the same from other stakeholders side. This act covers varied essential areas such as redundancy
payment, unfair dismissal, zero hour contracts, suspension from work, protection of wages, and

termination of employment. According to these areas, small companies may follow employment
contract and terms as well as conditions.
Data protection Act 1998 and Company Law 2006 are also included in category of key
legislations that may affect small businesses positively in term of enhancing brand image and
reducing risk of legal issues that put negative effect success of ventures. A business may utilize
each above legislation in effective and appropriate manner by following the terms and other
statements or strategic directions that they encompass (What is the Companies Act 2006, 2020).
For instance, according to Company Act 2006, organizations may effort to conduct legal
practices instead of breaking contract and agreements with third party who willing to work with
that and gain profit by doing so. The main objective or mission of this act is to modernize
company law and effectively codify directors duties.
CONCLUSION
From the above study it has been concluded that for a business to achieve it's goal
company requires to emerge into new markets. The report delivers factors required to enter into
global markets also its importance. Further it describes about the CRM and main areas of
working. Also provides the knowledge about transnational development and the ways firms
plans to expand in international markets. Report also give details regarding break even analysis
its applications, financial statements of Oak cash & Curry and usage for improvement of running
business. Lastly the study describes legislations, its types and affects on small scale businesses.