University Report: Managing and Running a Small-Medium Enterprise

This report provides a comprehensive analysis of managing and running a small-medium enterprise (SME). It begins by discussing resource planning and allocation, emphasizing the importance of expert judgment, alternative analysis, and project management software. The report then explores customer relationship management (CRM) processes, including customer service, sales force automation, and campaign management, highlighting their benefits for SMEs. Further, it examines transnational business development, outlining the advantages and disadvantages of global expansion. The report includes a detailed cash flow forecast and a break-even analysis, along with an interpretation of key financial statements. Finally, it addresses key legislation and regulations relevant to small businesses, using Badger Mining Corporation as a case study throughout. The report aims to provide practical insights into the challenges and opportunities faced by SMEs, offering valuable information for effective business management.

MANAGING
AND
RUNNING A
SMALL-MEDIUM
ENTERPRISE

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
TASK 2............................................................................................................................................2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise...................................................................................................2
P3 Development transnationally and its benefits...................................................................4
TASK 3............................................................................................................................................6
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs
set against income for a specific organisation........................................................................6
P5 Explain how break- even analysis could be applied to an organisational situation..........7
P6 Interpret key financial statements for successful management.......................................10
TASK 4..........................................................................................................................................11
P7 Discuss key legislation and regulations that have implications on small businesses or social
enterprises.............................................................................................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Small-medium enterprise can be defined as those enterprises which are depend on their
number of staff members, annual sales, assets or any combination of these. Their contribution to
economy or general large difficulty on obtaining financing and their fixed cost of taxation along
with regular compliance. This report is based on Badger Mining Corporation which deals in
manufacturing industrial silica sand and other aggregates. This firm is providing fine foundry
and hydraulic fracturing sands for metal casting, construction and recreational products (Baker,
2014). It has several distribution centres or warehouses in Houston, George West, San Angelo
and Saginaw, Texas, Evansville and Wamsutter. This assignment will discussed about important
components for preparing appropriate planning and allocation of resources. It will covers the
topic of customer relation management, cash flow statement and break even analysis along with
interpretation of financial statement for successful management. Key legislations and regulations
for small businesses will be highlighted below.
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
There are various kind of organisation want to conduct several activities along with
events. It can be done through allocating available resource and manpower to complete desirable
tasks and procedures properly to attain expected productivity as well as efficiently. It will helps
in maintaining certain factors to make more effective plans which are essential to organise
different processes to gain desired goals or objectives. Badger Mining Corporation nee to prepare
better planning to utilise available sources to achieve maximum outcomes from them.
Any enterprise has different types of resources such as staff members, money of
investment, equipments, area of performing and many other elements which are essential for
production process of goods or services (Dobra, 2012). It may also include various kind of
information which can be collected from previous data or record to enhance future productivity
of an organisation. Badger Mining Corporation required to measure several resources which are
needed to use are given below:
Expert judgement:- It is defined as that person who have expertise to make planning for
effective allocation of resources along with human resource of an organisation. The Badger
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Mining Corporation have to take suggestions from such experts who is able to reflect strengths
and weakness of that particular plan to be implemented. It will results in identify these factors to
grab opportunities and reduce impacts of threats easily.
Alternative analysis:- There are various alternative choices from which they have top
select the best one to apply. It is important to attaining better productivity as well as profitability.
Badger Mining Corporation have to evaluate and analyse both positive or negative impacts for
several alternative to choose the best one for implementation in company.
Publishes estimating data:- It can be described s record maintained in order to
information about available resources and manpower of an organisation (Doherty and Norton,
2013). This is necessary for project managers to prepare an effective as well as efficient planning
to conduct essential manufacturing activities to attain desired results. It may involves various
sources such a books, journals, articles, reports and periodicals.
Project management software:- In an organisation, it is necessary to utilise several
suitable soft-wares to organise regular based events or procedure for the purpose of production or
maintaining data for future requirements as well. Badger Mining Corporation can adopt any
specific project software which is designed to estimate needs of suitable resources in company
for particular condition. This criteria provide support identify better combination of certain
projects to gain outcomes successfully (Durst, Yip and Lee, 2015).
Bottom up estimating:- This term may described as to do break down of complex
processes into fragments to conduct them separately and effectively as well. It is also helpful in
correct allocation of resources to every small activity of single complex procedure. Badger
Mining Corporation have to apply appropriate time for estimating bottom-up allocation properly.
TASK 2
P2 Explain and evaluate different processes of customer relationship management for a small
business or social enterprise
Customer relation management refers to those techniques that are able to render help in
managing client relation in appropriate manner. It is broadly and widely accepted aspect which is
necessary to apply appropriate strategies or policies to interact effectively with clients. It is a
system having an essential aspect to compile data from range of various conversation channels
including firm's website, email, live chat, marketing factors and more recently used social media.
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It is helpful to render opportunity for business to learn more about targets audiences and ways to
convince them. Badger Mining Corporation have to apply different procedures for client
relationship management are given below:
Customer service:- It is an essential responsibilities to conduct various kind of events
which facilitate to establish an effective client relationship management. They have to interact
personally with each and every client t know about feedbacks and suggestions for specific
products or services. Badger Mining Corporation can establish an efficient call centre where
clients can easily get solved their issues regarding product or services. All these activities should
be recorded in CRM software for future purpose (Easterby-Smith, Thorpe and Jackson, 2012).
(Source: Benefits of CRM, 2018)
Sales force automation:- This term can be explained about several opportunities
provided to marketing team for establishing their one-to-one contact with clients. It will help
them to promote their brand more effectively as well as efficiently. This may facilitate to attract
new customers and retain the current ones by enhancing goodwill of brand in market area to grab
more shares of competitive market.
Campaign management:- This term can be described as such kind of events which are
conducting with purpose of winning new business. It is a type of method which is useful for
make segments of target customers settled on set of criteria.
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Illustration 1: Benefits of CRM

Purpose of CRM:- This ideas of customer relationship management render help to
Badger Mining Corporation to adopt various tools and staff members in better way to attain
efficient outcomes. This will facilitate to gain favourable response of clients along with
improving value of such people but those also who are for marketing, customer service and
technical help.
 It will provide product or services according to requirements and desired of people to
fulfil their expectations.
 This will support to content more efficient products.
 It is helpful or cross selling of services or goods on in appropriate manner (Eggers and et.
al., 2013).
 It is supportive for providing techniques to sales executives for close deals faster.
 This methods is helpful to facilitate in attracting new clients as well as retaining the
current one effectively.
 They have to prepare or establish several call centre for effective outcomes.
 It is useful to simplify promoting and sales procedures as well.
CRM involves for small business:
 It is an essential procedure which may identify desired customers, generate quality sales
leads, plan and implement promoting activities with particular targets.
 It will facilitate to make effective individualised relationships with clients and provide
greater level of products.
 The firm can easily identify exact needs and wants of people and try to fulfil it in
appropriate manner.
Transnational business refers to a multinational or international business. For example,
Badger Mining Corporation can operate its business transnationally by using various ways like
joints ventures, partnership, merger, acquisition and others. By using them the management of
this company can develop its business in various different nations.
Advantages- The biggest advantages of transnational business is that the company can
expand its business in the market of entire world and increase the customer base or sales of the
products. Another advantages is that since the firm has decentralized the business then it can
employ as well as using cheap manpower and raw material from the nation in which it is
running. Thus. The organisation able to save the money in term of production.
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Disadvantages- The major drawback of transnational business is that the organisation
does not have the overall information or understanding of the markets in which the firm trying to
running. Another disadvantage is that the firm is always exposed to political, legal and
operational risk which are associated with operating in various nations. There are various rules
and regulations that are followed by the organisation when it operate its business transnationally
and fluctuation in these legislations affect negatively to the business strategy of the firm.
P3 Development transnationally and its benefits
Every organisation want to expand its business at global as it provide opportunity to
attain better productivity as well as profitability. This will facilitate to enhance goodwill of brand
at global level to improve growth of business which may contribute to increase economic value.
Several steps for Badger Mining Corporation to expand it transnationally are as follows:
 It is important to fist know about the firm in detail and determine strengths and
opportunities which can contribute to expand business globally (El-Rafei and et. al.,
2017).
 They have to determine models of business which have ability to translate firms from
manufacturing domestic product to worldwide brand.
 It is necessary to know about trends of global market that product s are accepted there or
not.
 Analysing various kind of factors which may have positive or negative impacts in
enhancing business at global level.
Benefits and drawbacks of expanding business worldwide
Benefits Drawbacks
 It may improve sales and profits for
company.
 Al global market, there is likelihood
increasing sales along with clients all
over the world.
 It may helps to decrease dependence on
local as well as national economies.
 Potential for enhancing fir business
 At the time of new entry to global
market, the firms are only expect short
term gains.
 They have to hire more candidates by
investing money on recruitment.
 They have to apply some money to
modify packaging to suit local culture,
preferences etc.
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improvement as the y enter into global
markets.
 They have to apply foreign laws of
taxation and regulations.
Important facts of transnationally strategy – This can be described as an effective
approach which is helpful in selling and marketing of product to target audience. It include to
fulfil various laws or rules of particular nation where company going to sell its good to people
for earning profits. It is necessary to conduct proper research to evaluate scope of specific goods
in an area and define purpose of plan to make an appropriate planning in proper way. Moreover,
accurate documentation is required to be dome perfectly and make desired strategy of marketing
to grab target audience successfully. Additionally, several new techniques or features should be
adopted by company to fulfil actual desires of people to gain their satisfaction along with earning
profit.
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation
Profit and loss statement
Particular Amount
Sales 272000
Opening stock 36000
Variable manufacturing
cost
Direct material 47450
Direct labour : 36500
Variable overheads: 25550
109500
Less: Closing stock 49500
Contribution 96000
Less: Fixed costs 92000
Gross profit 84000
Less; Distribution expenses 24000
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Administrative expense 89000
Interest expenses 0
Profit before tax(PBT) -29000
Corporate tax 0
Net profit -29000
Balance sheet
Particulars Amount (Figures in £)
Current Assets
Inventory 101640
Prepaid advertisement expense 8470
Trade receivables 106960
Cash in hand 2440
Total current assets 219510
Free Hold Premises 270000
Equipment 67980
Vehicle 28000
Total non current assets 365980
Total assets 585490
Liabilities and equities:
Current liabilities
Trade payable 76910
Bank overdraft 11290
Out standing salary 1220
Accumulated depreciation
(42150+105000+16800) 163950
Total current liabilities 253370
Capital 332120
332120
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Total equities and liabilities 585490
P5 Explain how break- even analysis could be applied to an organisational situation
Break even analysis:- This can be defined as factor that can be defined as relation
between cost volume and profits at various stages of any business to determine break even point.
It can be referred to that level when an firm is facing neither profits nor loss at a particular time
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(Yin and et. al., 2011). It is ex-plained as that period of time when an organisation gain its total
capital invested at the beginning from sales.
(Source: Break Even Point Analysis, 2018)
Formula for break even :- It is necessary to measure break even point of any
organisation to know about that much time when they can receive total amount of capital
invested at the time of beginning of any business. Badger Mining Corporation have to calculate
this which reflects percentage of revenue that remains after several pays of expenses. Break even
point of firm is essential to measure due to location into regular income statement which is also
known as earning evidence of profit and loss.
Break even point = fixed cost/contribution
Contribution per unit = Selling price per unit- variable cost per unit
Break even point:- This term can be described as that point where sales of volume at
total revenue is equal to total cost. It is considered that level at which no loss and no profits will
received in Badger Mining Corporation with equal sales to profits.
Sales revenue of Break even point = fixed cost + variable cost
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Illustration 2: Break Even Point Analysis