Managing and Running a Small Business Report - Analysis of Ashtons

This report provides a comprehensive analysis of small business management, using Ashtons Estate as a case study. It explores key aspects such as resource allocation, including the use of Gantt charts and critical path analysis, and the importance of employee skills and financial resources. The report delves into client relationship management processes, evaluating customer value, communication channels, and digital marketing strategies. It also examines transnational business development, outlining the benefits and drawbacks of international expansion through methods like importing/exporting and strategic alliances. Furthermore, the report covers financial planning, including cash flow forecasting, break-even analysis, and key financial statements. Finally, it addresses relevant legislation and regulations impacting small businesses, providing a critical evaluation of these factors. The report aims to provide insights into the effective management and operation of small businesses, offering practical strategies and analytical evaluations.

Managing and
Running a Small
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Consideration of small and social business to achieve objectives.........................................1
M1 Several tools and techniques in structured ways to plan resources......................................2
M2 Importance of allocating and planning resources.................................................................2
D1 Critical analysis the application of appropriate resources.....................................................2
TASK 2............................................................................................................................................3
P2 Several process of clients relationship management.............................................................3
P3 Small enterprise can develop transnational and identify benefits as well as drawback.........4
M3 Factor of customer relationship management process..........................................................5
M4 Transnational operations activities that are used in internationalisation model...................5
D2 Evaluating buyers relationship management process in all stage.........................................6
TASK3.............................................................................................................................................6
P4 Annual itemised monthly cash flow forecasting which are shows fixed and variable cost...6
P5 Break-even analysis has apply in an organisation.................................................................9
P6 Key financial statements......................................................................................................10
M5 Quantitative as well as Analytical techniques to provide detail about break-even and cash
flow...........................................................................................................................................11
D3 Critical evaluation of key financial statement.....................................................................11
TASK 4..........................................................................................................................................11
P7 Important legislation and regulation implemented in small scale organisation...................11
M6 Implications of key legislation...........................................................................................12
D4 Key regulations affected on small business .......................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Management can be define as a process of controlling all business activities as well as
people with in an organisation in an effective manner. Through this, company are capable to
achieve goals and objectives in limited period of time appropriate ways thus help to gain long
run sustainability at market place. In this report select Ashtons in order to analysis small business
management effectively. It was established in the year of 2005 by Steve, Kristian, Sam and Ben.
Ashtons is a estate company which are provide facilities related to house rent, buy, sell and many
more other services (Burns, 2016). Through this, they are provide high class services with
innovative ideas which help to build positive brand image in client's mind appropriately. In this
assignment covers main consideration of small enterprise need to address allocating and planning
resources and evaluate different process of buyers relationship management. It also includes
small business develop transactionally benefits and drawbacks.
TASK 1
P1 Consideration of small and social business to achieve objectives
Ashtons is a estate organisation which are completing around 1000 transaction its
includes residential sales as well as letting, land acquisitions and new houses. Management of the
company has develop strategies related to training program which enhance workers professional
skills and experience as well as offer them financial help when employees needed. Through this,
organisation are able to manage, control all staff members that help to achieve goals and long
term sustainability (Crane and Matten, 2016). Administration of the company has implemented
innovative ideas at work place to produce high quality differentiated goods and services thus
provide competitive benefits as compare to their competitors in the same industry. There are few
assessments which are defined as follows:
Assessment of planning resources
As an employer, it is a responsibility to deliver the desired work to assessing the task
requirement and projects deadlines. Few assessments are required to manage and organise
functions operations of small scale businesses.
Employees and skills: Within organisations, satisfied and skilled employee is very
important to run enterprise activities effectively in long run. So that, management has develop
action plan to enhance workers performance, productivity and achieve their target in limited
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period of time. It is one of the most important resources for any firm which are divided according
to role, responsibilities at work place.
Assessing the business plans
Evaluation of objectives and key requirements of business helps to set the aim and
objectives of business. It can be determined as follows;
Vision, mission, goals and objectives: Owner of the company has set vision, mission and
management has develop short or long term goals as well as objectives. Through this activities,
they know the path through which whole business activities should be done effectively and
organisation can achieve their mission appropriately. Enterprise development and success are
highly depend on these things for working hard to achieve them in given time frame.
Assessment of financial requirement
Financial resources: In current market environment, there are several kind of financial
resources which are available according to the need of company. Companies needs to select most
appropriate method to arrange fund that help to run entire enterprise activities significantly
(Donnelly and et. al., 2015). Some important sources of fund are banks loan, angel investors,
financial institutions, over draft and many more.
M1 Several tools and techniques in structured ways to plan resources
Management of Ashtons has used two method Gantt charts and Critical path analysis of
project management techniques in order to allocating resources in appropriate ways which help
to run business activities effectively. These both tools are explain as follows:
Gantt Chart: In this process firm are analysis time period of completion of project
activities. Each task has assigned with time according to requirement of work and make full
project plan to run entire program effectively. Through this firm are able to achieve goals in
limited period of time thus help to build strong brand image at market place.
Critical path analysis: Project manager has used critical path technique to find out most
best suitable path for completing program. In this, they analyse shortest path to completing each
task in given time frame appropriately, by which organisation are capable to complete work on
time and take advantage of save time, money, efforts and other resources (Frese, Hass and
Friedrich, 2016). By implementing this strategies enterprise are optimum utilise available
resources that help to gain economic of scale.
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M2 Importance of allocating and planning resources
It is a very important process in which management of the company has allocating
resources to each one department, division, employees, manager and many more according to
their role, responsibilities, capabilities, skills etc. Through this, they are able provide motivation,
increase self confidence, enhance moral, empower etc. to their employees that help to achieve
goals and objectives in limited period of time.
D1 Critical analysis the application of appropriate resources
According to Glover and Kustere, within an organisation several department has work
and management has allocating resources to them according to their requirement. Each one
division has own role and responsibilities thus help to objectives effectively. Finance and human
resources department both are work in resources allocation activities, fund manager provide
money to each one section and HR executive has hire talented candidates for different division
(Glover and Kusterer, 2016).
TASK 2
P2 Several process of clients relationship management
Customer relationship management: It can be define strategies, practices and
technologies that are used by firm to evaluate and handle buyer interaction as well as information
in long period of time. It is a administration of Ashtons responsibilities to develop action of plan
in order to build strong positive brand image in customer's mind by which they are capable to
enhance buyer satisfaction in long run.
Assessment of consumer value: Marketing manager of the company has conducting
research program to know needs and wants of consumers according they are develop goods and
services in order to full fill their demand effectively. Through this, they are build strong positive
brand image in purchaser mind as well as satisfaction (Hodges and et. al., 2015). By this, firm
are gain higher market position as compare to their competitors and build healthy relationship
with consumers in the same industry.
Develop effective channel of communication: Management of Ashtons has develop
strong communication channel by which they are able to connect with large number of clients at
market place through this they achieve goals in limited period of time. There are two method of
making channel vertical and horizontal, firm are used this mode according to their requirement
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by which make high market segmentation. Ashtons has used vertical mode of communication
network to connect with large number of buyers with strong relationship.
Digital marketing and E- mail: In modern era, Technology and digitalisation has help to
boost performance effectively resulted firm are able to achieve competitive benefits. Through
this, they are confident to attract large number of buyers toward their goods and services. By
digital marketing, enterprise are share information about commodities with large users and make
positive relationship with them thus help to achieve customers satisfaction in long period of time
(Kitching, Hart and Wilson, 2015). Asthons has mailing massage on continues basis to keep
touch with their buyers resulted clients feel connected and develop strong relationship.
Apart from this, there are several other method are exist into market like special offer for
particular purchaser, provide discount, gift vouchers, personal feedback and many more.
Management has also make innovative ideas in order to develop healthy, strong relationship with
all people thus help to enhance satisfaction and sales volume.
P3 Small enterprise can develop transnational and identify benefits as well as drawback
Transnational sales: Company has develop goods and services for different nation. For
this, they are identify needs of target clients and produce commodities accordingly in order to
full fill their demand effectively (Laukkanen and et. al., 2016). Through this, firm are produce
goods to sell them in target nation industry by this they are able to achieve goals and objectives
in limited period of time effectively.
Small business can develop transnationally through internationalisation including various
ways:
Importing and exporting: The management of can bring its business named as Ashtons
into international level by exporting and importing of its products and services for its targeted
customers living across worldwide. For example, Ashtons is providing building on rent either for
residential and official purpose. Thus, investing money in constructing buildings in other nations
help them in achieving huge customer base. Whereas importing raw materials from other nations
due to having low cost increases the revenue of company and decrease cost of business.
Agents: Hiring Agents in other nations help Ashtons in reaching their business across
worldwide. As the company engaged in providing house on rent thus hiring agents with an
objective of influencing others and brings clients for them increases their customer base and
revenue. The main role of agents is to communicate with the customers and influencing them to
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buy company's products according to their needs and requirements. This will increases market
reach of Ashtons at global level.
Strategic alliance: Making joint venture with small organisations operating in similar
sector in nation where Ashtons wants to locate their business help them in their expansion
within shorter time period. For example, expansion of business in India requires Ashtons to deal
with local businesses operating in hosted nation so that the customers can be easily get and took
interest in dealing with company in terms of buying their products and services.
For example, Apple has manufacturing their some product components from China
because of cheep manufacturing process thus help them to sell product at lower cost in
developing nations and get higher profitability as well as market position. Transnational sales
have their own advantage and disadvantage that has explain as follows:
Benefits of small business activities:-
Independence: Independence has develop power of taking decision with out asking
others that called centralise decision making process. By this, they are able to increase sales and
profitability in long period of time effectively. Management of the company has used
transnational activities with independent decision power thus help to run business task in another
nation effectively to achieve goals in limited period .
Lifestyles: Owning small business as well as social enterprise has provide several
lifestyles benefits like increase per person income, enhance living standard, offer economical
product and many others. In this, management of firm has decide when and where they are target
clients to work effectively (Osiyevskyy and Dewald, 2015). It is very important to understand
and analyse consumers lifestyles and manufacturing commodities accordingly.
Drawback of Transnational activities:-
Financial risk: When firm are develop strategies for expending market then they want
financial resources thus help them to run business activities in another nation effectively. It
create neutral impact on company performance because some time management can not receive
sufficient return on investment so that investor loss their fund that create negative impact on
organisation image at market place.
Time commitment: Some time expansion strategies can not work properly resulted it
waste time and other resources of the company. So that it is a another one of the most important
drawback of small business work.
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In customer relationship management process have four elements that are determine as
follows:
Understand market and consumers: Marketing manager of Asthons has conducting
research to identify consumers needs and wants accordingly produce commodities as well as
services in order to satisfied clients effectively (Ramalho, de Moura, A. P. and Cunha, 2015).
Develop offers: They are develop offers to attract large number of individuals toward
company goods which help to achieve target in limited period of time appropriately.
Acquire audience: In order to get attention of large audience, Asthons has organising
campaigning to create attraction through this they are able to build brand value at market place.
Retain clients: Management has develop strategies to retain consumers with them which
help to approaches them for repurchasing by providing strong after sales services.
Buyers relationship management process in all stage
According to Frese, Hass and Friedrich, firm are using four C's of customer relationship
process in order to manage healthy relation with clients, 4C's are explain as follows:
Cognize: Manager of firm has spread all information related to goods and services among
consumers. Through this, Asthons has develop positive image in buyers mind resulted they are
achieve target in limited period of time.
Combine: In this, administration identify interaction between a clients, channel and user
which help to build positive relation effectively (Spence, 2016).
Connect: In this, factors utilization of sensibility to create appropriate interaction
between suppliers, channels, customers, consumers, partners and many others to build healthy as
well as strong relationship.
Correlate: Correlate can be define as a series of transaction as well as interaction with
buyers in order to create a healthy relationship between customers, user and channel etc.
M4 Transnational operations activities that are used in internationalisation model
Asthons has develop model of internationalisation to run business activities out site the
home country or international level. It divided into four parts that are explain as follows:
Knowledge opportunities: In transnational sales, manufacturing goods for particular
market and that same product can not sell in another location due to specialisation. So that, firm
have opportunities to fully utilisation of available opportunities to expend their market.
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Relationship commitment decision: By transnational activities, Asthons has develop
policies in this includes their all commitment toward clients as well as employees. It help to
build positive relationship among firm and consumers (Senderovitz, Klyver and Steffens, 2016).
Network position: An organisation may expend their market segment in specific country
thus help them to get sustainability in long period of time. In order to gain high network position
in industry, they are develop product at economical cost so that attract large number of clients.
Learning creating: In order to expend enterprise, organisation are are learn new things
and implemented it at work place thus help to produce higher quality goods and services to
buyers. It build positive image of the company in industry.
TASK3
P4 Annual itemised monthly cash flow forecasting which are shows fixed and variable cost
When people or entrepreneur are open new business then they want money to run it
activities effectively. In current market environment, small enterprise has start very fast and end
with in a year due to lack of fund. So that, there are several financial sources are available, some
are explain as follows:
Bank loan: Government of United Kingdom has make special interest rate charges for
small business so that through this enterprise are easily take loan from bank with low rates thus
help them to run enterprise activities effectively in long period of time.
Angel investor: Owner of small firm has find out investors those want to invest fund into
new venture and make money. By this, they get money with less documentation that help to
operate task and gain sustainability (Steingold, 2017).
Leasing and hire purchase: Company has lease their capital asset and earn wealth in
order to established their new venture effectively.
Financial institutions: In UK, number of investor are available those are invest money
on the behalf of others people in new venture. So that, small business unit has want to take loan
form financial institutions and run firm appropriately.
Budgeting and Forecasting: With in an organisation, there are several method of forecasting as
well as budgeting and management select best one according to their needs, wants. Some of
method are explain as follows:
Forecasting method:
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 Qualitative and Quantitative method: In this method, marketing manager has gather
information related to sales, profits, production, market trends etc. forecasting. It based
on numerical data and predict future trends (Trevino, and Nelson, 2016). Through this,
they are capable to identify future opportunities and develop strategies accordingly to get
success in long period of time effectively. Judgement forecasting method: Management has make specialist panel and provide
them full information to make effective judgement. Thus help organisation to take right
decision in order to identify upcoming direction to operate business.
 Time series forecasting method: It includes smoothing, trend analysis, moving average
and employ historical data etc. has time series forecasting by which firm are capable to
achieve target in limited period of time.
Budgeting method: Activity based budgeting: Manager has divided all task into manageable activity
accordingly assign budget to each one work. Through this they are completing all action
effectively (Villamizar and et. al., 2016).
 Zero based budgeting: It is opposite from traditional based budgeting. In this, manager
identify all income and expenditure of future are assign fund accordingly.
Profits & loss account, balance sheet and cash flow statement of the Ashtons:
Cash
distributed Jan Feb
Marc
h April May June July
Augu
st
Septe
mber Oct. Nov. Dec
Total
(£)
Total
revenues 8000 6500 5500 5000 8500 9000 9200 8750 8250 8000 8520 8925
9414
5
Direct
material 1500 1250 1250 1300 1450 1580 1650 1458 1589 1685 1985 1785
1848
2
Direct labour 1250 750 500 500 1350 1400 1435 1445 1474 1458 1568 1589
1471
9
Overhead 1000 500 500 700 2700 2850 2950 2987 2250 1850 1650 1250
2118
7
Selling and
distribution 750 750 750 800 850 950 850 650 720 715 785 795 9365
8

Total
variable
expenses 4500 3250 3000 3300 6350 6780 6885 6540 6033 5708 5988 5419
6375
3
Fixed
expenses 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
2400
0
Total cost
use 6500 5250 5000 5300 8350 8780 8885 8540 8033 7708 7988 7419
8775
3
Surplus/
Deficit 1500 1250 500 -300 150 220 315 210 217 292 532 1506 6392
It is concluded from the above data that the Ashtons is having a surplus amount of 6392 £
in the future time, also company has total variable expenses of 63753 £ along with the total fixed
cost is 24000 £. The total estimated revenue of the company is 94145 £.
P5 Break-even analysis has apply in an organisation
Break-even analysis: Break- even level has provide point where sales amount has equal
to total cost both fixed and variable. In this point overall profitability should be zero and
companies have in no profit and not loss situation. Management of Ashtons has used break-even
technique to find out their profits level. Through this, they are able to implemented lean
production techniques to get higher profits in long period of time.
Illustration 1: Break even analysis
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(Sources: Break even point, 2015)
Administration of firm has faced several issues in running business activities like
manufacturing work, forecasting, budgeting, customers retention and many more. So that, it
reduce enterprise sustainability as well as quality of product by which they are able to run
business activities appropriately (Winterhalter, Zeschky and Gassmann, 2016). By executing
break-even model at work place, organisation are capable to manage wastage and get positive
outcome to draw a valid result in an appropriate ways. For example, variable cost is £ 2 and fixed
cost is £ 1500 selling price is 5 per unit so that break-even point is:
Break -even point:- Fixed cost cost / selling cost – variable cost = 1500/ 5-2= 500 £.
P6 Key financial statements
In United Kingdom, it is compulsory for all organisation to prepare financial report in
which they are includes several kind of financial statements like profits and loss account, trading
account, balance sheet, cash flow statements, income statement.
Financial statements: Management of the company has make annual report in which
they are includes financial statements. Through this report enterprise are share information
related to profits, expenses, income, loss, cash inflow and out flow etc. It help several individuals
like investors, buyers, suppliers, government, banks etc. to take decision related to company. Profits and loss account: In this account, firm share information related to their profits
and loss of entire business activities. By which they are able to take future decision
effectively. Important element of this statement are Sales, Cost of sales, Gross profit,
Overheads, Net Profit etc. Balance sheet: It is shows comparison between total liability and asset. Balance sheet
help to identify firm outstanding liabilities and abilities to full fill that possession
effectively. Through this, individual are analyse wealth of enterprise. For example a
balance sheet of amazon company show below;
Balance sheet:
ASSETS Amount (£)
Cash/Banks 8000
Inventory 1500
Acc Receivable 17500
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