Rowlinson Knitwear: Management and Running of a SME Report

This report analyzes the management and operation of a Small and Medium Enterprise (SME), using Rowlinson Knitwear as a case study. It explores resource planning techniques like Gantt charts and critical path analysis, emphasizing the importance of human and financial resources. The report delves into customer relationship management (CRM), covering customer value assessment, communication channels, and the impact of digital marketing. It examines the benefits and drawbacks of transnational business, including strategies like mergers, acquisitions, and exporting. Furthermore, the report includes financial aspects such as cash flow forecasting, break-even analysis, and key financial statements. Finally, it discusses key regulations and legislation affecting SMEs, offering a comprehensive overview of essential management practices.

Management and Running
SME

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Considerations a small business to achieve business objectives......................................1
M1: Different techniques and tools in a analytical and structures way to plan resources......2
M2: Importance of planning and allocating resources...........................................................2
D1: Critical analysis the application of appropriate resources...............................................3
TASK 2............................................................................................................................................3
P2: Different process of customers relationship management...............................................3
P3 Small business can create transnationally and identify the drawbacks and benefits .......4
M3 Elements of customer relationship management process ...............................................5
M4 Develop transnational operations with the use of internationalisation model ................5
D2 Critical evaluation of customer relationship management process at entire stage...........5
TASK 3............................................................................................................................................6
P4: Annual itemised monthly cash flow forecast showing variable and fixed cost...............6
P5: Break-event analysis applied to an enterprise..................................................................9
P6 Key financial statements for an enterprise......................................................................10
M5: Analytical and Quantitative techniques to give proper detained break-even and cash flow
..............................................................................................................................................12
D3: Critical evaluation of key financial statement ..............................................................12
TASK 4..........................................................................................................................................13
P7 Key regulations and legislation that have implications on social enterprise...................13
M6 Implications of key legislation.......................................................................................14
D4 Key regulations affected on small business ...................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Management includes the activities of formulating strategies and plans for an
organisation and coordinating the employees in order to accomplish desired goals and objectives.
SME is a small and medium organisations which are looking for growth and success in market
within limited period of time. According to the international reports, there are large number of
small business organisation in UK which gives tough competition to bug companies. Rowlinson
Knitwear, a UK company which deals in providing clothing products to school and corporate
people is taken for the purpose of preparing this report. The project covers the different
technique and tools which help them in planning and allocating resources. Benefits of Planning
and allocating resources are also discussed under this report. Different process of customers
relationship management is also properly examined under this report. The project also describes
Cash flow statement, Break Even analysis and financial statement of an enterprise (Ali and
Babiker, 2017).
TASK 1
P1:
Rowlinson Knitwear, a UK based company which deals in providing the clothing
products especially for school children and corporate people. They generally do not supply
directly their products to their target customer. For this, they need to support specialist retailer in
order to provide their clothing products to the targeted customers. They need to focus on
improving quality at an affordable price.
People and skills: Human resource play an important role in achieving growth and
success of an organisation. The only requirement is to identify their skills and capabilities so that
suitable roles and responsibilities has been allotted to them in order to achieve best possible
outcome. Thus, management is held responsible to conducts training and development programs
for their employees so as to maximise their skills and knowledge which help them in
contributing more efforts in achieving desired goals and objectives of an organisation.
Vision, goals and objectives: Before introducing new business into market, every
business should required to first set their vision, gaols and objectives. All business activities are
performed to achieve these within limited period of time (Chauma, 2017). The growth and
success of enterprise can be judged through identifying the possibilities of achieving vision,
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goals and objectives. Therefore it is important for en enterprise to make an effective plans and
strategies for their employees so that they are more focused to achieve desired goals and
objectives. Rowlinson Knitwear need to give proper support to their employees through
providing training programs, advanced technology etc. so as to perform allotted roles and
responsibilities in more effective and efficient manner.
Financial resources: Financial resources is considered as backbone of every enterprise.
Without having adequate funds, an entrepreneur even can't think of introducing and running
small business in market. Therefore the management need to maintain their financial position in
market through maintaining financial accounts such as P&L a/c, Balance sheet, Cash flow
statement etc. This help managers to implement corrective actions and measures in order to
maintain their financial position with a motive of attracting investors to show their interest in
investing in their business (Cojoacă, 2017).
M1:
Rowlinson Knitwear need to adopt two types of project management techniques with the
purpose of making an effective planning and allocating resources. Such project management
techniques are defined as below:
Gantt chart: This tool shows the amount of production are required to produced and time
period work has to be completed. This will help management to make an effective decision
regarding allocation of roles and responsibilities to the employees on the basis of their skills and
capabilities along with the deadline so that they are motivated and focused on achieving desired
target. Implementation of appropriate structure to execute future business activities in more
effective and efficient manner.
Critical path analysis: It is considered an an effective technique which help management
to make an effective plan regarding allocation of resources to different business activities on the
basis of outcomes that may received in future. Through this tool, the business can easily find out
whether business activities will achieve success in near future and if not, then the reasons of
occurring deviation so that they can put their maximum efforts in eradication such deviations.
M2:
Every business has some plans and strategies to perform all business activities in such an
effective manner that will help in achieve profitable outcomes to company in near future. It
requires maximum support from the employees having good skills and capabilities (Durst, Yip
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and Lee, 2015). The only need to motivate them and allotted available resources in execution of
business activities on the basis of future result.
D1:
According to the....there are different resources with the help of which an enterprise can
able to achieve its desired goals and objectives. Such resources includes Finance and human
resources which provides required support to an enterprise to compete with their rivals in more
effective and efficient manner.
TASK 2
P2:
Customer relationship management: It is essentially required to an enterprise to
maintain healthy relation with their customers if they want to survive in competitive market
world for longer period of time. For this, the company need to delegate roles and responsibilities
with a motive of interacting and attracting customers towards the product of company.
Identifying needs and demands of customers and getting perception of customers toward their
product will help an enterprise to maintain good relation with them and thus can able to retain
them for longer duration.
Assessment of customer value: It is essentially important for an enterprise to identify the
needs and requirements of customers and what are their perception towards the price of product
at the time of purchase. For this, the management need to conduct research and survey in order to
collect feedbacks and suggestion from the customers related with their product. Thus, to consider
all such aspects the management need to implement corrective steps to maximise their level of
satisfaction of target customers with a motive of improving relationship with them which will
directly brings profitable result to an enterprise (El-Rafei and et. al., 2017.).
Developing effective channels for customer communications: It is important for an
enterprise to keep in touch with their customers so as to identify latest trends occurred in market.
For this, the management need to focus on using different communication channels in order to
make interaction with them on regular basis. Such channels includes Multichannel, IVR, Voice,
Mobile, Social networks, Web self-service, Email and many more options through which an
enterprise can easily reach to their targeted customers.
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E-mail and digital marketing keeps strong relationship: It is a process through which an
enterprise can provide sufficient information about their products to the customers for the
purpose of attracting and influencing their interest and buying behaviour towards purchasing
their product. Sending e-mails and adopting digital marketing helps management in
communicating to their customers and inform them about the quality of products. This will help
in attaining large number of customers (Javaid and Iqbal, 2017).
P3:
Transnational sales: It is most important part of organisation in order to evaluate the
profit and revenues . With this organisation needs to supply of different type of products and
services at international level according to demand made by the customer in the marketplace.
Organisation decided to explore its different types of operation in certain specific nation in order
to generate large number of revenue and establishes a sustainable brand in the marketplace of
that specific place. It provide various types of facilities to their customer in order to maximise
the level of profit of company.
Organisation put their effort in order to explore different types of operations and
functions at international level. The management of organisation put their effort in delivering
various products and services at reasonable cost. There are various advantages and
disadvantages of expansion of business. There are various benefits which are describe below:
Independence: the employer is independent to take various types of decision in order to
expand and growth of organisation. At regular interval of time employer take various effective
decision which aids to proper running of business in effective manner.
Lifestyle: in order to perform various types of work in organisation in effective manner
these small business give a definite lifestyle which benefit the employee working in the
organisation. It is very essential to organisation to determine the lifestyle and also help in
building structure.
Drawbacks of small business ownership: There are various disadvantages which are describe
below:
Financial risk: it is related to launch and develop the organisation at international level.
Small business have not adequate funds in order to enhance the various operations globally in
effective manner.
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Time commitment: owner of the organisations needs to implement new and innovative
methods of operation for long time period and that funds is provided to the family members. The
disadvantages which is determine by the organisation in order to expand its idea at international
level.
Transactional business activities: Transactional organisations carry out business activities at
international level. These type of enterprises identify and examine the market conditions of
various areas before carry out business expansion in that area. This provide new market to
company which help in sustain in market for long time period. Rowlinson Knitwear can expand
its commercial activities in various parts of country to increase its profitability and customer
base. So many strategies or ways are there through which company can internationalise its
activities. These can be understood by following points:
Mergers and acquisitions: This is one of the most popular strategy which can be opt by
organisation for enter in foreign markets. In this company merge its activities with other
enterprise and start a new venture.
Joint venture: This is another strategy in which two or more enterprise combine and start their
commercial activities. In this, every enterprise enjoys a separate legal entity but use all resources
collaboratively to achieve set business objectives.
Exporting: Under this company sale its products to different countries and make a profit. This is
one of the easiest strategy.
Benefits of transactional business development:
Brans recognition: When company carry out its business activities in various countries then it
improves brand recognition of enterprise as more number of customers become aware about
products and services of company. It is very essential for enterprise to maintain quality of its
products so it can fulfil the requirements of customers and can generate a large number of profit.
Broader market share: Operating in different parts of country provide more customers to
company. All this directly improve market share and customer base of entity.
Drawbacks of transactional business development:
Expensive: Expand business activities in different areas of country is not an easy task for an
enterprise. This require huge funds, resources and man power to offer products to new
customers.
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Risk of failure: Another risk related with expansion of business activities in new areas is failure
of brand in new market. Company require to do so many efforts to attract more number of
customers and to maintain a brand image in market.
M3:
There are basically four factor of the customer relationship management process which
are mentioned below:
Understanding market and customers: It is starting phase which is very essential for the
organisation tom get aware about the taste and desire of customers in effective manner.
Develop the offer: in this phase organisation offers different types of offers in order to
attract large number of customer (Winarno and Wijijayanti, 2018).
Acquire the audience: it is responsibility of the manager to search new consumer in
order to maximise the profit of organisation.
Retain the customer: this is the last phase organisation needs to give loyalty points and
different reward system in order to retain its customer for the long time.
M4:
Management needs to develop the various operation and activities in stipulated time
period in order to perform various function in effective manner. It is divided into four parts:
Knowledge opportunity: it is most essential part of this model which is consider by the
organisation in order to determine the various opportunity to attain goals and objectives of
organisation.
Relationship commitment decision: it is very essential for organisation to provide
various product and service on the commitment and also expand its different functions of
business in effective manner.
Networking Position: this is concerned on to make effective positioning of products
with help of advertisement and promotion.
Learning curve: Organisation implement different programme in order to introduce their
product.
D2:
Organisation implement 4C's of CRM process which are discussed below:
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Correlate:it is related with chain of interaction and transaction in order to establish better
relationship
Combine : it is related with establish interaction between client and user.
Cognize:it helps to collect information about the various business products.
Connect: it is related to interact with channels, consumers, suppliers, and consumer
TASK 3
P4:
There are different options available to company from which they can able to raise funds
and making strong their financial position in market. Such sources of raising funds includes
Equity finance, bank loans, leasing and hire purchase and many more. These are described as
below:
Equity finance: An enterprise can able to raise funds through selling some shares to
financial institutions, investors and public. It is an effective tool as they get financial support
from shareholders s well as getting help in making an effective decision for the success of an
enterprise.
Bank loan: It is another types of sources of funds the company should raise its financial
resources. But before this, they need to first consider the interest rate that has been charged on
principle amount and accordingly select band who agreed to give funds on minimum rate of
interest as compared to other banks.
Leasing and hire purchase: This is also of the source of raising funds the company may
select in which they need to give some kind of asset to others on rental basis. This will help
company in getting rental amount on monthly, quarterly or yearly basis (Ludmila and
Stanislava, 2015).
Forecasting and budgeting: There are some tools and techniques of budgeting and
forecasting resources which are listed below:
Time series data: In this, business entity need to focus on identifying the time which are
required to perform specific project activities. It binds employees to complete allotted task within
given time frame so as to grab competitive opportunity.
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Calculating a moving average: Through using such tool, an enterprise can able to
calculate customer needs and wants after identifying the current trends arises in market which
will help in gaining loyal customers (Nowotarski and Paslawski, 2015).
Dealing with seasonality developing budget: In this process, an enterprise need to make
changes in their budget in order to deals with future trends.
Balance Sheet, P&L and cash flow statement of the Rowlinson Knitwear:
From the above forecasted cash flow it has been identified that organisation can receive a
surplus of 6392 in upcoming period, total variable expenses are 63753 and total fixed cost is
24000. Total estimated revenues of the company are 94145.
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P5:
Break-even analysis: It is considered as best tool which need to be adopted by company
in order to identify their sales requirements monthly and annually. Break point of the average is
depend of variable and fixed cost per unit of sales. It is adopted by every company in order to
determine their profitability level. It provides an opportunity to prepare plans and strategies to
achieve business target with minimum cost of production which in turns brings huge profits
(O’Connor and Kelly, 2017).
In the business enterprise, there are various situation occurred which need to be faced by
company such as production, sales forecasting and many other. In order to sort out production
and other wastage issues essential enterprise should require to use Break-even analysis which is
essential for them. For example: Fixed cost of Rowlinosn Knitwear is 15000 and variable cost is
5 rupees per unit. Selling price is 7 per unit. BEP for this is:
Break-even point: Fixed costs/ construction margin per unit or product = 15000/(7-5)= 7500 ans.
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P6:
Financial statement: It is most essential part of the organisation which helps to
determine overall information which are related to cash flow, balance sheet, and profit and loss
account. Many other information which are provided by the financial information which helps to
determine the different values of account. The various element of account are describe below:
Balance sheet: This is the first statement of the organisation which evaluate the
different types of assets and liabilities which are mentioned in the account. This is the most
important element of account of organisation (Parkin, Fielder and Ashby, 2016). Balance sheet
shows the various assets which are used in organisation in order to perform the various functions
of the organisation and costs involve in performing different types of function in effective
manner. It also determine the assets which are involve in maintaining the performance of
organisation.
Profit and loss account: this element is related to determine the financial condition of
organisation. It is prepare by the company to determine the profit and loss of the organisation it
is prepared on basis of month and on yearly basis. It aids to take proper initiative steps in order
to show the proper initiative steps in order to determine the performance of the organisation.
Cash flow statement : It is important for the Rowlinson knitwear organisation to prepare
the cash flow of organisation in order to determine the distribution of funds in different area of
the organisation in effective manner. It is very important to control the flow of cash in different
area of the organisation in order to control over the unwanted expenses during the performing
various operations of thee business in effective manner. It help to determine the financial
condition of the organisation in order to maintain the proper distribution of funds in effective
manner.
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