Comprehensive Analysis of JS Supermarket: A Small Business Report

This report analyzes the management and operation of JS Supermarket, a small-scale retail business in London, UK. It covers crucial aspects such as financial planning, resource allocation, and the importance of financial resources, human resources, and clearly defined goals. The report evaluates various Customer Relationship Management (CRM) processes, including customer portfolio analysis, customer intimacy, and operational, analytical, and collaborative CRMs. Furthermore, it explores the development of small businesses transnationally, highlighting both the benefits and drawbacks of this approach. The report includes a detailed cash flow forecast, break-even analysis, and interpretation of key financial statements. Finally, it discusses key legislation and regulations impacting small businesses in the UK. The report provides a comprehensive overview of the challenges and opportunities faced by small businesses and offers insights into effective management strategies.

Managing and running
a small business
Table of Contents
INTRODUCTION...........................................................................................................................1

TASK 1............................................................................................................................................1
P1. Main considerations every small business concern needs while planning and allocating
resources for achievement of business objectives..................................................................1
TASK 2............................................................................................................................................3
P2. Evaluation of various CRM processes for small business concerns...............................3
P3. Development of small businesses transnationally with its benefits as well as drawbacks.. .4
TASK 3............................................................................................................................................5
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................5
Cash flow statement ..........................................................................................7
P5. Way of break-even analysis applied in an organisational situations................................7
P6. Interpretation on key financial statements for an organisation for contribution in
successful management..........................................................................................................8
TASK 4..........................................................................................................................................12
P7. Key legislation and regulations which have major implications on small business
companies.............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Small business enterprises are an essential part of today's fast growing business economy.
They are even expected to impact global economy and its growth by a great extent. So, to benefit
from this opportunity, entrepreneurs implement strategies which help them in earning good
amount profits and revenues that further leading to growth. Entrepreneurs today believe in
developing new and innovative ideas that will help them in providing a competitive edge in
market and also lead to enhancement in their market sustainability. In this report, JS Supermarket
has been chosen for further study (Chauma, 2017). JS Supermarket is a small scale business
concern which is situated in London, UK. This report focusses on main key considerations that a
firm needs to consider while forming business plans. Various process of customer relationship
management and break even analysis have also been mentioned here. In addition to this, the
report studies various rules and regulations which affect functioning of businesses in UK.
TASK 1
P1. Main considerations every small business concern needs while planning and allocating
resources for achievement of business objectives
JS Supermarket Limited is a small scale retail sector firm that is situated in London, UK.
This business entity was founded in the year 2014 by Ramchandran Jalatheepan. JS Supermarket
is a retail sector firm whose main area of business is food and beverages sector. In present day
scenario, customers market of JS Supermarket Ltd. is decreasing and it leads to negative impact
of overall working of business. Hence, managers of JS Supermarket have decided about
initiating a plan or strategy that looks after needs of customers further leading to enhancement of
its position in market.
In today's fast growing economy, business sector of UK provides ample of opportunities
to people who are interested in earning monetary funds. This happens due to Brexit of UK from
European union (Ali and Babiker, 2017). Further, it also helps entrepreneurs in initiating a new
business venture at small scale in competitive market. By this approach, people were able to
focus on extremely populated areas where they could open new retail outlets and supply various
services which helped in revenue generation. This growth is only possible when entrepreneurs
entered market with correct approach and new innovative ideas. Major activities that are to be
performed on a daily basis include planning and allocation of operational resources, forecasting
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and budgeting, recruitment and selection of employees and so on. Also, it is required that
entrepreneurs should make optimum utilisation of resources.
In context of JS Supermarket, it is necessary that managers to prepare an appropriate plan
that fits its organisation structure and working. This is only possible when managers undertake
optimum utilisation of resources. Furthermore, many resources or key consideration that needs to
be consider by manager while planning and allocating resources are mentioned as under:
Financial resources: Financial resources is a key factor that helps in effective planning
and development of a plan. Funds are lifeblood in every business and used in every activity
whether it be purchasing raw materials, developing infrastructure or any other activity. Hence, in
context of JS Supermarket, finance also plays an important role which will be raised through
loans taken from friends or family (Cojoacă, 2017). Managers of JS Supermarket should follow
a saving approach which leads to reduction of expenses.
Human resource and their skills and qualities: Human resource is another essential
factor which helps a business concern for executing their plans and strategies in an effective
manner. In case of JS Supermarket, managers have implemented a number of rules and policies
which helps them in enhancing their profit margins. Recruiting well developed and skilled
candidates helps a business concern in achieving competitive advantages . In JS Supermarket, if
managers fail to execute this recruitment policy, it may lead to creating issues such as delay in
execution of plans and also not able to achieve plans and policies in a specified time frame. Also,
it has been suggested that JS Supermarket should develop effective policies for training,
compensation etc for enhancement of employees and their skills.
Goals, vision and targets: In present day situation, goal of JS Supermarket is enhancing
customer base and also retaining a stable market position. Vision of JS Supermarket is becoming
a leading brand in retail sector. On the other side, JS Supermarket targets audience between 20
to 50 years( women). Moreover JS Supermarket has also developed some values for itself such
as being smart and real while taking ownerships (Durst,Yip and Lee, 2015).
These values play a key role while achieving targets and human resource management of
this business concern uses a couple of essential tools that help in planning as well as allocating
resources. Managers of JS Supermarket choose critical path method and gantt chart for
evaluating day to day activities of business._1550236189_1550660548
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Gantt chart: Gantt chart refers to a chart which exhibits each and every activity of
business and its time framer as well. This is an appropriate bar chart which shows exact schedule
that managers and employees have to follow for timely completion of projects. This approach is
used by managers of JS Supermarket for examination of activities and their schedule.
Critical path analysis: This tool is used by all business organisations for following a
correct path considering budget and time of a project. With this technique, managers will be able
to easily achieve its tasks in a specified time frame (Durst, Yip and Lee, 2015). This technique is
used by managers of JS Supermarket for timely completion of activities.
A combination of all these tools and techniques help managers of JS Supermarket in
timely completion of tasks and activities.
TASK 2
P2. Evaluation of various CRM processes for small business concerns.
In today's scenario, it has been assessed that customer relationship management plays a
quite crucial role in improving performance of every business entity in competitive market.
There are various key approaches which can be chosen by companies while serving their
customers. These approaches play a quite significant role in establishing relationships with
customers which further leads to attainment of growth and success both in a specified time
frame. Apart form this, right investigation or examination can only be done by using unique and
innovative trends in combination with customer's demand. In case of JS Supermarket, managers
focus on two different approaches which are CRM (Customer Relationship Management) and
CSR ( Corporate Social Responsibility).
Customer relationship management is considered as an effective tool which helps in
developing effective communication with customers. Also through this, their wants and desires
can be easily fulfilled by company. Using this approach, managers of JS Supermarket can
modify rules and policies as per demands of customers. Apart from this, activities under
Corporate social responsibility also comprises of processes that help in effective decision making
by taking ethical needs into consideration (Javaid and Iqbal, 2017). This also involves area in
which an organisation is performing its business operations. Managers of JS Supermarket
consider both these approaches for enhancing its values as well market image in front of
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customers and society. Furthermore, CRM techniques include various procedures which have
been explained as under:
Customer portfolio analysis: Customer portfolio analysis is an effective tool which aids
managers of JS Supermarket in constructing evaluations between standards as well as behaviours
of customers. By undertaking this approach, managers of JS Supermarket will be able to gain
knowledge about purchasing power, people's lifestyle and as well as their statuses. By using this
approach, employers can make effective judgements as to when they need to make modifications
and changes in grocery, food and beverages and other related products which are being offered to
customers (Ludmila and Stanislava, 2015). By doing so, market position of JS Supermarket will
be enhanced and also they will be able to attract more and more customers leading to growth.
Customer intimacy: Customer intimacy refers to an approach which employers use for
developing effective relations with its customers. With the help of this approach an employer can
easily understand their customers' point of view and requirements. In present context, feedbacks
from customers regarding services provided by JS Supermarket is considered as an effective
approach. This many a times even creates issues for them. It further helps business entities such
as JS Supermarket in retaining loyal customers by resolving their issues in an effective manner.
Different processes associated with CRM in respect with JS supermarket are mentioned
below:
 Operational CRMs: This CRM process help business owners to appropriately manage
their daily marketing, customer service and sales. It is most popular type of customer
relation management process. It will help JS supermarket to automate marketing aspects
through which targeting customers will become an easy process. Sales force automation
will assists the concerned company in acquiring new clients where as Service automation
will benefit company in providing high level of service to customers.
 Analytical CRMs: This process will help JS supermarket in managing processes of
costumer retention, customer detail and acquisition in a desired manner. Analytical CRM
will benefit the firm in collecting and analysing large number of data in a simplified way.
This will allow the company to acknowledge regarding their loyal customer and potential
customers in an organised manner.
 Collaborative CRMs: This process of CRM aims to enhance the experience of
customers while using services and products offered by company. In case of JS
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supermarket, this process will enhance the relation between customers and companies
due to which satisfying their need will become an easy process.
P3. Development of small businesses transnationally with its benefits as well as drawbacks.
Transnational operations are most widely discussed in present day scenario. It refers to a
strategy which is undertaken by companies for incorporating global business processes with the
help of cooperation between headquarters as well as international business operations. So, it can
also be said that it helps in assessing current market position of a firm which will lead to
formation of determinations on basis of performance level. Major key benefits of involving this
approach is that it helps in assessing current market position of business and also sales
performance of small business owners.
Transnational approach is used by managers for enhancing productivity level of business
concerns so that results can be achieved right on time. They also consider right business plans for
effective development of strategies and policies based on various activities (Nowotarski and
Paslawski, 2015). In context of JS Supermarket, transnational sales are used for coordinating and
assessing opportunities that are somehow related to international marketplace. This further helps
managers of JS Supermarket in attracting people towards their brand by launching innovative
products and services. This also leads to effective analysis of demands of customers who have
different culture or reside in different areas. Transnational approach comprises of certain
advantages and disadvantages which have been mentioned as under:
Advantages:
 Transnational approach is used by JS Supermarket for bringing about innovations in its
business operations and also attract customers from worldwide. Apart from this, it can
can also be seen that transnational operations helps in providing appropriate opportunities
to managers of small business concerns. Further, it helps in promotion of products at an
international level.
 Managers of JS Supermarket can even use transnational approach for merchandising its
products and services all around the globe. This further leads to generating a positive
impact on sales performance as well (Parkin, Fielder and Ashby, 2016).
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Disadvantages:_
 One major disadvantage of transnational approach while globally expanding in market is
that it requires excessive amount of investments and business concerns like JS
Supermarket will not be able to afford it as it is a small scale business concern. Also
while expansion, managers will have to implement proper plans strategies and
documentation etc. Therefore, it becomes a disadvantage as managers may not prefer this
approach due to less number of resources and also less budget as well.
 By choosing transnational approach, managers of JS Supermarket will also have to
follow certain policies and procedures based on ethics. These are usually policies that
have been followed by countries in which businesses wish to expand. This is a quite time
consuming process and business concerns may even face issues relating to finance as
well. blue colour
To became a transnational company, JS supermarket can adopt following ways. These
strategies will help the company in becoming transnational.
 Branches: To be a transnational company, JS supermarket can inaugurate their branches
in different nations. By this their business will expand and popularity of company will
achieve new heights. Opening branches in prime cities will help the company in
becoming a successful transnational company.
 Subsidiaries: Another way to be a transnational company is to acquire companies in
other region. But for this JS supermarket will require more capital and funds. Acquiring
other organisations will benefits JS supermarket in instant localisation, good
opportunities and name recognition.
 Joint venture: This is also a good way by which JS supermarket can transform itself into
a transnational company. Venturing with other companies will benefits JS supermarket to
access new resources, technology and increased capital. This will help them to sustain a
firm position within international market.
These are the some way by which JS supermarket can transform itself into a
transnational company.
blue colour
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TASK 3
P4. Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation.
Cash flow forecast or cash flow plan helps in assessing income status of a business
concern in a specified time period (Skolud and et. al., 2016). This forecasting plan is also used
by managers of JS Supermarket for analysing their income position. In addition to this, cash
flow forecast is helpful in controlling expenses that are to made in near future. Various sources
of cash flow forecast have been mentioned as under:
Bank Loan: Bank loans are safest and easiest way of raising funds which can used by JS
Supermarket . In case of bank loans, p blue colourrivate banks set a fixed interest rate. In case of
bank loans, banks mainly desire for interests on loan amount which they provide to customers
(Stanciu, 2015).
Equity finance: Equity finance refers to a way of raising funds by selling shares. This is
an important tool which is used by various business concerns. In case of JS Supermarket, it has
been found that it is operating on a small level hence it it is not possible for JS Supermarket to
use this option. For raising funds, JS Supermarket raise funds by taking loans through friends,
family or relatives.
Budgeting, planning and forecasting: These are three key pillars which are chosen by
managers of JS Supermarket Ltd. For identifying market trends as per future conditions. This
process is used by business firms for determining long-term plans, mid-term budgets and short
term forecasts. In this process, managers of JS Supermarket Ltd. has used following techniques
for forecasting, planning as well as budgeting:-
Measure moving average: Measure moving average is a process used by managers of JS
Supermarket for collecting data which helps in setting objectives. This process is greatly useful
when managers wish to assess current position of business.
Time series data or information: This has helped in developing various applications for
manufacturing enterprises to set up and streamlining of production schedules. This would help
in executing a plan at an estimated budget (Scheers, Botha, and Scheers, 2018 ).
Balance Sheet, cash flow statement, profit and loss account statements of JS Supermarket
Ltd. Company are as follows:
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Interpretation – By analysing above given cash flow statement which is from January to
December is that there is continue increase in profit due to increase in sales. By this company
able to identify total in flow of cash and total out flow of cash. This help company in making
decision and strategies in appropriate manner.
P5. Way of break-even analysis applied in an organisational situations.
Break even analysis is an effective tool which helps in assessing relationship between
profits, costs, expenses at various levels of output as well. This strategy is used by various
business concerns. Break even analysis is also taken into consideration by entrepreneurs for
examining that at which level will revenue or profit will be same as cost of production. Break-
even analysis is used by management accountants and production management. It is basically a
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process of categorisation of production cost between fixed (cost which is directly not linked with
production volume) and variable (when production output is changed than cost is changed).
Fixed costs and total variable are correlated with sales revenue to identify sales value, level of
sales volume at which neither profit nor loss is made by business.
This analysis or evaluation is also known as profit contribution analysis which can easily
be applied in two situations that is revenue relationship and linear cost as well and revenue
relationship and non linear cost (Break Even Analysis. 2018.). It has been assessed that every
business concern that adopt these methods and apply them in algebraic methods, contribution
analysis, graphical as well as profit volume ratios. Further, in present day scenario, managers of
JS Supermarket have chosen algebraic methods for effective decision making in complicated
situations. In present scenario, break even analysis is calculated as:
TFC = Total fixed cost
P = Price
AVC = Variable cost per unit of outcome
Qb= TFC/ (P-AVC)
In this case,
TFC= 40000
PRICE= 18
AVC= 9
=40000/(18-9)= 4444.45
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