Managing and Running a Small Business: Ashtons Case Study Report

This report provides a comprehensive analysis of Ashtons, a small-scale business operating in the household services and property sector. The report delves into key considerations for small businesses, including planning and resource allocation to achieve business objectives, emphasizing the importance of goals, financial resources, and staff skills. It evaluates various customer relationship management processes, highlighting strategies to build strong customer relationships, and discusses the application of tools like Gantt charts and work breakdown structures. The report also includes a detailed annual itemized monthly cash flow forecast, break-even analysis, and an examination of relevant legislation and regulations impacting small businesses. The analysis covers financial aspects, customer relations, and operational strategies, providing a practical overview of small business management.

MANAGING AND RUNNING A SBE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives. ..............................1
M1 Tools and techniques in a structured and analytical way.................................................2
M2 Importance of planning and allocating resources............................................................3
D1 Critically analyse the application of appropriate resources to demonstrate....................4
TASK 2............................................................................................................................................4
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise. .................................................................................................4
P3 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise...................................................................................................6
M3 Elements of the customer relationship management process.........................................7
M4 Potential to develop transnational operations..................................................................7
D2 Process of customer relationship management.................................................................8
TASK 3............................................................................................................................................9
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................9
P5 Explain how break- even analysis could be applied to an organisational situation........11
P6 Explain how break- even analysis could be applied to an organisational situation........12
M5 Quantitative and analytical techniques..........................................................................19
D3 Break even analysis and cash flow statement.................................................................20
TASK 4..........................................................................................................................................20
P7 Discuss key legislation and regulations that have implications on small businesses or social
enterprises.............................................................................................................................20
M6 Implications of key legislation and regulations in an organisation................................21
D4 Regulations and legislations that impact on small business...........................................22
CONCLUSION..............................................................................................................................22
REFERENCES .............................................................................................................................23

INTRODUCTION
Each business enterprise provide their own contribution in economy development and
growth. In this procedure small scale organisation's play a most important role by providing
quality services to their target customers. Running in a small business organisation require
appropriate strategy and planning process for build their own market share easily. In this
procedure, employees of small scale organisation requires to make impactful planning to achieve
organisation's goals and objectives in appropriate manner (Ali and Babiker, 2017). These
organisation have limited sources that requires to utilize properly to getting higher competitive
advantages easily. Managing and running in a small business can be a important task for
management staff of firm. This project report is based on Ashtons which is a small scale
organisation which was founded in around 1933. This organisation provides household services
and properties by constructing various homes in North of England. This report includes small
business or social enterprise needs, different processes of customer relationship management,
traditional terms to develop Small business, its benefits and drawbacks. It also includes monthly
cash flow forecast method, Break- even analysis and Financial statements for firm. At last it
includes Legislation and regulations that have implications in small businesses.
TASK 1
P1 Discuss the main considerations a small business or social enterprise needs to address
when planning and allocating resources to achieve business objectives.
For a business organisation, it is required to analyse organisation's need and requirement
to achieve their future aims and objectives in appropriate manner. In this process manager of
organisation requires to conduct different monitoring procedure to analyse each and every term
in appropriator manner. Ashtons is a small scale organisation and for them it is required to
identify their need while planning and allocating different kind of resources to achieve their
organisation's goals properly. However, company is a very small but still engaged in developing
the society also by constructing beautiful buildings. There are different requirement of
organisation is given below as -
Goals, objectives and vision- For Ashtons, it is require to identify their future goals and
objective that they want to achieve in future (Bridge and O'Neill, 2012). In this process they
require to analyse their working areas and number of candidate who can easily get their services
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at a specific time period. These activities help them to identify their working procedure to
making future vision properly. For a business organisation it is require to create their future
objectives and goals to motivate their employees toward this. Through this, management of firm
can easily create effectiveness in their organisation to achieve them properly.
Financial resources – For a business organisation, it is require to collect appropriate
funds that help them to implement operational and functional activities in appropriate manner.
These resources require to carry out in firm to attain their future objectives properly. These
financial sources are used as a assets of firm that can be capital, funds, bank loans and others
services that organisation can borrow from different financial institutions. Through this Ashtons
can easily implement effective activities in their business to achieve future objectives.
Staff members and their skills – Management of Ashtons requires to analyse skills and
working approaches of their staff member to provide them appropriate responsibilities and tasks
as well. Through this they easily provide effective services to their clients as per their
requirement and need (Burns, 2016). For a business organisation it is require to examine their
staff members strength that help them to grab different challenges from target market. All these
activities would be beneficial for Ashtons to achieve their future objectives in exact manner.
Apart from this, some of the major factors which needs to be consider while planning and
allocating resources for an organisation is discussed as follows-
 Funds- Finance is a most indispensable aspect for small business and social enterprises
because all the activities are depend upon sufficient capital. Along with this, company
can easily attained their goals and objectives in a defined time frame by allocating all the
resources. Capital is necessary for Ashstons because it helps in constructing beautiful
interior and exterior of houses by affording expensive raw materials.
 Workforce- Human resource are responsible for accomplishing business activities and
managing all the operations. Thus, management of labours is also requisite for Ashtons
for encouraging social services which is provided by selected firm. For example;
designing of impressive business proposal is done by staff members only or skilled
manager.
M1 Tools and techniques in a structured and analytical way
In a business firm, it is require to analyse effectiveness of different tools and techniques
that helps to allocate different resources in their organisation. Through this management of firm
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can easily analyse firm's productivity that helps to achieve their future objectives and goals as
well. For a analytical analysis, Ashtons can use Gantt chart and work break down activities to
examine different kind of organisational activities in a graphical representation. Through this,
management of organisation can analyse different task to manage them in appropriate manner. It
can be uses as blueprint of firm. Basically, company needs to follow suitable method for
overcoming distinct issues such as; forecasting of future requirement of funds, comparison of
actual performance and project one, proper management, proper utilization of resources and so
on. Along with this, distribution of work load between several employees supports in reducing
the stress level as well as aids in maximizing the productivity. However, Ashtons is really small
business who is engaged in constructing qualitative buildings with the help of various modern
tools and techniques. Thus, it is essential to focus on major resources for managing business
operations in much better manner.
M2 Importance of planning and allocating resources
In a firm it is require to allocate different resources properly that helps to achieve their
future objectives in appropriate manner (Chauma, 2017). These resources require to utilise in
exact manner. For this management of Ashtons have to build a impactful strategy analyse
working approaches of their worker to allocate different task to them as per their working skills
and capacity. Through this they can easily provide their exact and quality services to different
clients as per their requirement and need. All these things are very beneficial that implement
effectiveness in business procedure and operational approaches as well.
Some of the major benefits and factors which shows that planning is really significant for
Ashtons company are discussed as follows:-
 Planning gives proper direction and path to the employees and employer in an
organisation. Planning in advance will provide unity in direction and goals of an
individual and the organisation as whole.
 Advancement planning will provide coordination amongst the staff and their work. Along
with this, it helps selected firm to clear the thought and maintains the smooth working
environment.
 With better and well executed planning the organisation can keep good control over the
use of resources like human resources, raw material, time and other resources.
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 Planning depicts the deviation between the actual and standard work done which helps in
taking measurable actions and more efficient planning. It also helps in achieving desired
results.
D1 Critically analyse the application of appropriate resources to demonstrate
According to Cojoacă, (2017) a business organisation require to make efficient planning
and strategy for allocating different resources in appropriate manner. These activities helps to
utilise manpower and resources in exact manner. Through this employee of firm can easily
provide appropriate household services to their target customers. Main objective of Ashtons is to
provide effective services to individuals as per their requirement these activities helps to provide
them higher satisfaction. Through this they can easily achieve organisation's future objective and
goal as well. So the strategy of resources allocation is provide effective achievement in future to
a firm.
Ashton firm required to manage its available resources and appropriate utilisation of that
resources so that maximum outcomes can be get. Manager always ensured about their required
resources, tools and equipments and allocate them with more effective manner so that company
can achieve sustainability. In this consider proper use of construction methods and procedures
which support in creating strong buildings as well as complete projects with well manner. There
are defined some necessary resources such as adequate finance, human resource, suppliers for
procurements, materials, tools and many more equipments as well. These are essential in
completing any contracts or project with quality manner that facilitates in creating good image of
organisation among competitors in better ways.
TASK 2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise.
It is require to build strong relation with their target customers to getting higher growth
and income as well. In this procedure firm analyse different kind of aspects about their customers
to provide the higher satisfaction through effective services. These kind of activities helps to
build long term relations with target audience to getting higher benefits easily. There is a
appropriate process of customer relationship management are given below as -
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Analyse customers value – For Ashtons, it is require to analyse values of customers in
their firm. Through this they can easily implement appropriate planning and strategic process in
organisational activities. Main objective of this procedure is to analyse client's demand and their
requirement need to provide them effective and desired services. For this management of
Ashtons require to build strong planning to achieve their future objectives (Drucker, 2012).
Execution of effective communication channels – To build a strong customers relation,
Ashtons require top use effective communication channel that help to transfer information and
messages in exact manner. In this procedure, management of firm require to analyse their
employees communication skill to enhance them in properly. A impactful strategy always helps
to achieve future objectives of firm. As this a impactful communication helps to build strong
relation with target audience to getting long term benefits on the behalf of quality services.
Build long term relations - Ashtons is a consultancy firm that provide appropriate
direction and suggestion to their clients as per their requirement. For them, it is require to use
different kind of strategy that helps to solve clients issues and problems. Through this services
they can easily build long term relation with them. These activities provide effectiveness to
achieve future goals and objectives easily.
Customers life cycle management – This process is based on customer's potential
toward organisation's services. It is based on customer's relationship and loyalty toward the firm.
This managing cycle require a effective planning and strategy to manage long term relations with
company. For a small scale organisation as Ashtons, it is require to to create customer life cycle
to attain their vision and long term goals as well (Durst and Runar Edvardsson, 2012).
Customers are really indispensable for company success because products are finally
consumed by them only. Thus, it is essential to focus on their management by implementing
various strategies and policies. For example; prepare complaints box for understanding their
problems, to maintain positive relations with clients and so on. All this happen by using modern
tools like; online connection is useful for Ashtons organization because it helps in creating long
term relations with consumers. Basically, today's generation is only connected with internet
things which shows an appropriate path for grabbing attention of clients.
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P3 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise
For a small business organisation, it will be beneficial that they increase business
structure in several countries to getting higher benefits. These activities can be beneficial if they
serve their quality services in several countries. Ashtons is a services organisation that provide
services to their clients as per their requirement. For them it will be beneficial is they implement
transnational business activity to expend their business structure. All these activities will helping
to maximise firm's profit and future growth as well. Main objective of these activities is to
reaching beyond the national boundaries through effective services. There can be different
benefits and drawbacks of theses activities such as -
Benefits-
 Lifestyle – These kind of activities help to increase lifestyle of individual's who uses
different kind of elements. Transnationally is positively impacts on lifestyle of employees
who working under theses organisations. Theses business activities are not only
beneficial for employees but also for individual who are the service users of firm.
 Efficiency- Through this procedure, employees of Ashtons can easily build efficiency in
their business procedure to getting long term benefits and effectiveness. Through this
employees can easily increase their productivity that helps to achieve future target of firm
(Durst and Wilhelm, 2012).
 Independence- These kind of procedure helps to build in-dependency for firm who takes
help of several organisation to apply different activities in target market. In this process,
manager of Ashtons requires to take independent decision for different organisational
approaches. Theses activities increase organisational structure and its future growth as
well.
Drawbacks
 Financial risk- These kind of activities can make financial risk for organisation which is
working on a small level. For Ashtons, it is require to make effective strategy to
effectively implement organisational activities in their business procedure. For this
manager of firm requires to analyse each and every factor that can affect negatively in
business procedure.
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 Lengthy- This is a long process for small scale organisation, so for them it is required to
make appropriate plan that help to increase business structure in several countries. This is
a negative approach of this procedure that it consider a lengthy process in each activity.
M3 Elements of the customer relationship management process
For a small business organisation, it is require to manage customer relationship
management process in their organisational approaches. Through this they can easily get long
term benefits. Main motive of this process is to build customers loyalty for a particular
organisation (Hammer, 2015). These activities would be beneficial for Ashtons while they
provide consultancy services to them. For a small scale organisation, it is require to build a
strong customers relation chain to getting higher growth and achieve their future objectives as
well. Some elements of customer relationship management process can be -
 Analysis of customers values and their demand
 Build strong communication with them
 Resolve issues and problems
 Customers life cycle management
Customer relationship is a crucial concept in a business organisation for the terms of
marketing strategy. For this, different division of firm provides their effective contribution in
order to create positive relation with target audience. Main objective of this procedure is to earn
long term benefits and growth. Therefore, organisation needs to provide effective services to
their customers on the basis of their requirement and desire that assist to render higher
satisfaction to them easily. The major element of customers relationship management procedure
are -
 Social media management
 Call centre servicing
 Market reporting
On the basis of these techniques, a business organisation can identify market and
customer's demand to fulfil them effectively.
M4 Potential to develop transnational operations
For Potentially develop transnational operations in organisation, manager of Ashtons
require to analyse each and every element effectively to getting positive outcomes of its
decisions (Harmon, 2015). In this process management requires to take appropriate decision in
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the favour of their firm to expend several activities on the bases of transnational operations.
Through this they can potentially implement such approaches in their firm. For this firm require
to -
 Identify several opportunities
 Customers relationship
 Organisation's position
 Employees performance
Through this they can easily serve quality services to their target customers as per their
requirement and need. After implementing them in business, Ashtons can easily rise their
business structure properly. Transnational corporations are integrated or unorganized
organisation which consist with parent firm and their international affairs. This will help in
developing and controlling assets of another company that is generally owned some equity
capital share. In Ashton firm, it will play an important role in develop potential global economy
with the help of sharing research. By this, firm can easily operate and manage its business
functions in the market place. With the assistance of transnational operation, company can gain
higher income and profitability in better manner. This will support company in providing work
in another country and they are not exploit their workers while doing work.
D2 Process of customer relationship management
As per the words of Jasra and et. al., (2012) customer relation is effective process that use
to learn more about customer's, their demand, expectation and need to provide quality services to
them. It include appropriate process in which a firm build long term relation with their target
customers. Process of customer relationship management can be -
 Portfolio analysis
 Long term relation with target customers
 Networking development
 Values management
 Customers life cycle management
These kind of activities are very beneficial that provide effective customer relation and
loyalty to getting long term benefits easily. Ashtons can easily serve their quality services to
target audience by such effective process. The procedure of customer relationship management is
the activity which involves the use of company to manage and maintain their interaction with
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existing and new customers in proper manner. Ashton company require to develop various
strategies and policies which help them in developing appropriate relation with their buyers by
providing goods and services. It is the method which can be used for managing firm relationship
with their desired buyers in the market. It will support in making connection with their customers
and delivering best quality based products which satisfying their needs or wants.
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation
Balance Sheet, P&L and cash flow statement of Ashtons organisations:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 130 210
Stock 20 35
Debtors 70 55
Bank 20 30
Total 240 330
Creditors 120 180
Bank overdraft 90 70
Total 210 300
Working capital 30 80
Profit and Loss Account at the year ended
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