Small Business Management: Resource Allocation, CRM, and Growth

This report provides a comprehensive analysis of managing a small business, focusing on various critical aspects. It begins with an introduction to small businesses, emphasizing resource allocation considerations, including financial and administrative resources, and the application of tools like critical path analysis. The report then delves into customer relationship management (CRM), explaining different processes and evaluating their elements in achieving business objectives, with a focus on tools like customer portfolio analysis and privacy. Furthermore, it explores transnational business development, outlining the benefits and drawbacks of this approach and evaluating the potential using the stage model of internationalization. The report also covers financial planning, including cash flow forecasting, break-even analysis, and the analysis of key financial statements. Finally, it discusses key legislation and regulations impacting small businesses, providing a holistic view of the challenges and opportunities in small business management.

Managing Small
Business Running

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Task 1...............................................................................................................................................1
P1. Discuss the main consideration a small business or social enterprise needs to address
when planning and allocating resources.....................................................................................1
M1. Apply relevant tools and techniques in structured to analytical tools to allocate resources
in organisational perspective. .....................................................................................................2
M2. Assess the importance of planning and allocating resources to achieve the business
related accomplishment. ............................................................................................................3
Task 2...............................................................................................................................................3
P2. Explain and evaluate different process that customer relationship management for small
business or social enterprise. ......................................................................................................3
M3. Analyse and evaluate the elements of customer relationship management process in
relation to accomplish business objectives.................................................................................4
P3. How a small business can develop transnationally and determine the benefits and
drawbacks....................................................................................................................................5
M4. Evaluate the potential to develop transnational operations using the stage model of ........6
internationalisation, assessing both benefits and challenges. ....................................................6
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs.6
P5. How break even analysis could be applied to an organisational situation............................8
P6. Analyse key financial statements for an organisation in relation to how they contribute to
the successful management of the organisation. ........................................................................8
M5. Apply appropriate quantitative and analytical techniques to provide an appropriately
detailed cash flow forecast and break-even analysis. ...............................................................11
Task 4.............................................................................................................................................12

P7. Discuss key legislation and regulations that have implications on small businesses or
social enterprises. .....................................................................................................................12
M6. Implications of key legislation and regulations in an organisational context. .................13
CONCLUSION..............................................................................................................................13

INTRODUCTION
Small business which is function on small scale increase the level of less capitalism
invested, number of employees are limited even resources are not appropriate usage where type
of goods and services. The only motive is to attain better stability for daily basis by accomplish
target on a small scale basis. Their revenue is expected in small number in which they tend to be
sustain for long term aspects.
As in this report, the organisation is relate with new small business venture Let's Eat
restaurant which planning to establish in United Kingdom location., it is people to people
lending food and beverages that major allows where public are directly attain their expectancy
healthy and natural food (Aladejebi., 2018). In this report small business and social enterprise to
better address planning to allot resources, different purpose of customer relationship
management for a small business, customer relationship management small business on social
enterprise. By developing transnationally and determine the better benefits and draw backs. To
analyse cash flow forecast, budget and break even point and interpret for detail analysis towards
financial statement, breakdown analysis applied on better organisational structure., discuss
effective analysis on organisational situation applied. To effective for better contribute to be
successful management of organisation. Different key legislative and regulation and having
implication on small business on social enterprise.
MAIN BODY.
Task 1.
P1. Discuss the main consideration a small business or social enterprise needs to address when
planning and allocating resources.
In every small and medium type of business their working team such as marketing,
operation and administrative plan to conduct activities along to acquire better and economic
resources that help to accomplish goals (ANGGRAENI., 2019). As per situation of small
business in United Kingdom it support to grow to increase the economy by intending for
effective increase. There is major reason in which Brexit market is enhance to not allows small
and medium enterprise that not commence for trade in European trade that prominent manner.
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By acquiring prominent resources in Lets Eatcompany which tend to bring effective innovation
for prominent accomplish objectives towards business.:
 Financial Resources: It is a factor which is known towards business maintain resources
that initiate to help in business for attaining prominent efficiency. Many resources
financial in Lets Eat business support to reduces the liquidity crises as well as in
manufacturing resources. There is less interaction of clients in small business, similarly
Lets Eat business is also faces this issue that enhance to derives lesser growth in small
business marketplace. As investors are not shows much interest that helps to gain better
business growth which controlled by them.
 Administrative resources. This is one of most important resource that tend to order
maintaining resources in terms of handling employees, assigning them roles and
responsibilities as employees job role and capabilities which efficiently and effectively
enhance by workforce (Attaran and Wood., 2019). As Human resource department is the
part of administration where in small business HR mainly helps to hire effective
employees. Therefore, in Lets Eat also having Human resource system where it support
to handling internal activities as well as better handling of employee related work in
terms of training and development strategy.
 Critical path analysis: To assorting effective tools where business entities that takes care
which undertaking requires by designing budget. By implies this tools through manager
of Lets Eat creates their planning to reaching towards their objective in effective and
efficient manner.
M1. Apply relevant tools and techniques in structured to analytical tools to allocate resources in
organisational perspective.
There are some essential tool which helps to Lets Eat business plan and acquire for
further and long term usage such as Customer relationship management where it helps to keeping
and maintain record of customer that enhance for long term business relationship. Classic
Technique is having sometimes which one of most appropriate for presuming running project. It
involves preparing plan of upcoming work attainment target which involves optimum usage of
resources perform by employees in organisation and better monitor by leader as well as provide
effective feedback. Better internet facilities provide through getting work accomplish easily.
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M2. Assess the importance of planning and allocating resources to achieve the business related
accomplishment.
For having better resource allocation in Lets Eat business is tend to be essential because it
helps to systematically enhance work in effective manner where strategic planning is require
procuring fund in better manner which behind the common goal accomplish. Some of the
resources which is highly essentials for Lets Eat Restaurant like customer satisfaction, employee
retention, effective decision making aspect that arrives to settle down better relationship with
customer for longer period of time (Bone and et. al., 2019). This also helps to increase the
profitability by delivering better quality of food and services.
Task 2.
P2. Explain and evaluate different process that customer relationship management for small
business or social enterprise.
The maintaining of customer relationship management that enhance better small business
which elaborates in crucial term which helpful in accomplish growth and success. As per the
factor of Customer relationship management where it tend to approaches for long term customer
relationship in small business. By acquiring customer relationship practise in Lets Eat small
business which need to maintain their better customer bonding as well as initiate to access more
business term. Customer is the most important key feature which enhance better long term time
customer stronger for better enhance sales.
By approaching of CRM which is assort in order to understand emerging need from
customer which prominent manner that enhance product offering. For applying change
management in Lets Eat where they usually offer quality of economic range food product and
services and manager would implies better infrastructure towards better relationship
management. By applying effective decision making through stakeholder which helps to attain
better competitive edge within better market and customer base. Some of techniques whuich is
tend to assort by Lets Eat Restaurant for systematic approach of Customer relationship manager :
 Customer portfolio analysis: Customer portfolio analysis helps to generates better
standard for highly interpret about customer behaviour as it meeting up to standards.
This approach helps to initiate towards the manager in understanding buying behaviour
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of customer as to modify product offering in productive manner (Crane and et. al,
2019). According to this tools is most proven where it most advantages method of
attaining optimum knowledge in Lets Eat restaurant to evaluate individual customer
nature and behaviour. Along with helps to sharing judgement that increase the growth
of Lets Eat company in better manner.
 Customer Privacy: This plays an important as well as Lets Eat is small restaurant
business which allows better and proper hospitality infrastructure that provide
satisfaction to customer as well as employee behaviour enhance customer basis needs
(EXPANDED, 2020). The Lets Eat has making ensure about customer privacy where
they initiate to mange effective manner for balancing clients and provide and fulfil all
requirement which is needful to effectively accomplish to attain positive outcomes.
M3. Analyse and evaluate the elements of customer relationship management process in relation
to accomplish business objectives.
The elements which is essential for establishing customer relationship management in
Lets Eats business. As the small business could follow the important process are:
 Human Resource Management: This help to company by providing efficient and high
competency of workforce that helps to attain more manpower that support with their
skills and knowledge initiates towards their workforce stability in long term.
 Customer Service: As Lets Eat is consider to be hospitality small restaurant where they
main focus towards proficient services which they need to provide by employees
efficiency as well as analysing their strategy to growth development.
 Sales Force Automation: It is one of essential part that describes on the basis of sales
forecasting as Lets Eat would acquire more customer invites by promoting their service
in marketplace which enhance better revenue generates through their effective
contribution.
 Marketing: The productive sales forecasting of Lets Eat is totally depend upon
marketing activities where it helps to accommodate through better procuring as
distributing, manufacturing and strategic marketing promotion to reach better resource in
marketplace along with better growth.
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P3. How a small business can develop transnationally and determine the benefits and drawbacks.
Transnational Approach: This is directs connection of better enhance operation which
involve development in business as major concern of maintaining and better relation of global
level. This is one of the process that helpful in analysing through examining towards existing
situation related with specific that having impact on business performance.
Within this concept as it has been examined with help of enhancing critical decision
making which improves employee performance to produce that improvised. As Lets Eat
transitional of sales productive which better utilisation to effective coordinate as well as
recognise market opportunities as well. Manager and Executive in Lets Eat where they tend to
target only those customer who can afford service in desire manner. By assorting of this method
it enhance demand from people to better recognise services and quality of food where they
belong towards culture and norms.
In following there is advantage and disadvantage of transnational approach:
Advantages of Transactional approach.
 According to this approach is highly useful for Lets Eat Restaurant which customised
their production process which involve may high add of value in business. The major
objective of this approach is to attract high capability of consumer which overseas of
market (Kalos, Nielsen. and Stelmach.,). Transactional approach is having prominent
which recognise market opportunities for small scale business within marketplace to
better appraise by customer in global platform.
 For Lets Eat this tool is one of effective aspect where they have ability to sell their goods
and service in global platform presence which effectively enhance profitability and
increase performance in productive manner.
Disadvantages of transnational approach:
 It is approach which defines the immense benefits which over to growth of benefits and
having business expansion where Lets Eat in similar where it requires where highly
systematic planning which majorly form policies as well as leads the business related
development stage. This procedure having need to invest high amount of capital along
with various resources in order to systematic plan to expand business expansion process.
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 To undertakes high business standard in order to accomplish goals and accomplish
objectives. By includes important rules and regulation towards society country to better
business operates for high investment purpose by attain returns.
M4. Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges.
To better develop transnational approach model of internationalisation is part of
behavioural theory. The main process model having between the knowledge of the decision
making in company where the level of work commitment in foreign market. The major core
assumption is having companies where low market knowledge towards low commitment in
market. In perspective of Lets Eat, in market this small business major accumulates within
experimental knowledge that enhance for leading with having willingness for additional
resources.
Task 3.
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs.
Cash flow forecast is can be utilised as in prominent that enhance better strategies as per
current case. It is most effective strategy which can be utilised through Lets Eats for better
evaluate their income. It is useful tool for business by having monitor and control of unnecessary
errors. Meanwhile, it have certain sources which having cash flow calculated that elaborated as
follows:
Equity Finance: This is an activity which intend to business where they intend to
allocate get funds from investors. Along with investors provides sign as per deal in order to share
profit and losses from the lend money (Kgoroeadira, Burke and van Stel., 2019). Lets Eat
restaurant is small hospitality and food service they can borrow or lend money from local
business market.
Bank Loan: By acquire to a common borrowing method which is assort through Lets Eat
where entire business overall activities is wiling to expand their business venture. In the context
of Lets Eat can be helpful that helps to raising fund by putting mortgage in behalf of loan.
Planning of budgeting: This is a important factor which enhance before implementing
money or investing capital there is must to design effective busienss related plan that provide
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authentic alternatives with different implication and opportunities . Similarly, Lets Eat marketer s
can also propounded to design marketing plan which allows to trade in different business
platform to gaining more profits.
Balance Sheet
Year 2017 (value in £) 2018 (value in £)
Fixed assets 150 200
Stock 25 30
Debtors 60 45
Bank 15 25
Total 250 300
Creditors 150 200
Bank overdraft 100 100
Total 250 300
Profit and Loss Account
2017 2018
Sales 15 25
Cost of sales 20 15
Gross profit 35 40
Overheads 5 5
Net. profit 30 35
Cash flow Statement
Cash
distributed
Jan Feb March April May June July August September Oct. Nov. Dec Cash distributed
Variable cost
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785 1500
Direct labour 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589 1250
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Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250 1000
Fixed cost
Selling and
distribution 750 750 750 800 850 950 850 650 720 715 785 795 750
Total cost
use 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419 4500
Cash
surplus/
deficit
28000 2625
0 24250 21950 1802
0 13190 8355 3915 32 -3426 -7114 -10580
28000
P5. How break even analysis could be applied to an organisational situation.
Break Even point is describes for providing with facts about mots effective tool that
enhance for order to relate through profit generates, cost and business expenses various kind of
outputs evaluated. It is having more advantages way to determine effective profit and maintain
the sales acquired in time period. This process is tend to helpful in aspect of manager where they
can understand about revenue raises in different part (Kremer, Rizzuto and Case., 2019). As Lets
Eat is calculates their revenue ratio through mapping performance and outcomes which they
generates from profit volume analysis. According to this method is having numeric format to
reflects break even analysis are as elaborated in below:
Break even analysis can be calculated as under:
TFC = Total fixed cost(Edwards, 2016)
P= Price
AVC = Average variable cost
Break-even point = TFC/ (P- AVC)
Furthermore, for a detailed understanding, it can be understood with an example:
AVC= 8
TFC= 50000
P= 20
Hence, Break-even point in this situation,
= 50000/ (20-8)
=2777.78
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P6. Analyse key financial statements for an organisation in relation to how they contribute to the
successful management of the organisation.
Balance sheet 2018-19
All numbers in thousands
Period ending 8778500
Current assets 725400
Cash and cash equivalents 7100
Net receivables 531300
Other current assets 43069
Total current assets 4188300
Property plant and equipment 34200
Goodwill 155800
Intangible assets 133800
Other assets 1015000
Deferred long-term asset charges
Total assets 14554400
Current liabilities
Accounts payable 869800
Short/current long-term debt 790800
Other current liabilities 576000
Total current liabilities 539300
Long-term debt 3617300
Other liabilities 1906100
Deferred long-term liability
charges 137700
Total liabilities 6530900
Stockholders' equity
Misc. Stock options warrants 8004400
Common stock 7612100
Retained earnings 4700
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