Resource Management and Customer Relations Report for a SME Business

This report provides a comprehensive analysis of resource allocation, customer relationship management (CRM), and financial planning within the context of a Small and Medium-sized Enterprise (SME), specifically using Ashtons, an estate agency, as a case study. The report delves into the main considerations for resource planning, including people and skills, vision and goals, and financial resources. It applies tools such as Gantt charts and critical path analysis for effective resource allocation. The report then explores CRM processes, including aligning systems with goals, consolidating customer data, and personalizing interactions, along with strategies for transnational business development, including benefits and drawbacks. Furthermore, the report covers financial aspects like cash flow forecasting, break-even analysis, and the interpretation of key financial statements. It also examines the impact of key legislation and regulations on SMEs. The report aims to provide a structured and analytical approach to understanding the critical elements for managing and running a successful SME, offering insights into resource management, customer relations, and financial strategies.

MANAGING AND
RUNNING A SME

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. Apply relevant tools and techniques in a structured and analytical way to plan and
allocate resources in a organisational context........................................................................2
M2. Assess the importance of planning and allocating resources to achieve the business
objectives ...............................................................................................................................2
D1. Critically analysis the application of appropriate resources to demonstrate links between
resources allocation and achievement of business objectives................................................2
TASK 2............................................................................................................................................3
P2. Explain and evaluate different processes of customer relationship management for a small
business or social enterprise ..................................................................................................3
P3 Explain how a small business can develop transnationally and determine the benefits and
drawbacks...............................................................................................................................3
M3 Apply and evaluate the elements of customer relationship management process in relation
to achieving business objectives ............................................................................................4
M4 Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges .................................................5
D2 Critically evaluate of customer relationship management process at all stages and provide
recommendations for overcoming challenges of developing transnational operations .........5
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 ..........8
P6 Interpret key financial statements for an organisations in relation to how they contribute to
the successful management of the organisation.....................................................................9
M5 Apply appropriate quantitative and analytical techniques to provide an appropriately
detailed cash flow forecast and break-even analysis ...........................................................10

D3 Produce an accurate cash flow forecast and break-even analysis with a critical evaluation
of how key financial statements contributes to the successful management of the business 10
TASK 4..........................................................................................................................................10
P7 Discuss key legislation and regulations that have implications on small businesses or
social enterprise....................................................................................................................10
M6 Evaluate the implications of key legislation and regulations in an organisational context
..............................................................................................................................................11
D4 Critically evaluate key legislation and regulations that effect small businesses or social
enterprise organisations, taking future developments and changes into account.................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Management is defined as the coordination and organisation of business activities in
order to accomplish defined objectives. SME is a small and medium sized organisation which
requires high grade information and internet solutions for their enterprise (Ali and Babiker,
2017). According to European Union, the headcount number for small business is less than 50
and greater than 250. Main aim of small business is to provide various opportunities to
unemployed persons. This report is based on Ashtons which is a SME or social enterprise in the
UK. Small business plans allocates resources to accomplish objectives which is shown in this
study. Process of customer relationship management is also determined in this project. Break-
even, budget and cash flow forecast tools are used by company to identify their financial
statement which are also described in this report. Implications of legislation and regulations on
social enterprise are determined in this project as well.
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
Ashtons is an estate agency that organises over 1000 transactions including land
acquisitions, residential sales, investment transactions, residential letting and new homes.
Company supports their workers to attain professional qualifications and gives financial help
which is needed. There are different elements which are required by social enterprises when
allocating and planning resources in order to achieve long term goals and objectives of company.
These are determined as below:
People and Skills: It is one of the main resources which is highly needed by company for
achievement of predetermined targets. In this, role of manager is to classify employee’s duties as
per their skills and abilities (Chauma, 2017). Further, duty of human resource management is to
provide accurate training and development to unskilled persons. Thus, they have some
knowledge and work with full efforts for the accomplishment of desired objectives.
Vision, goals and objectives: These are three important things of each and every
business. Entire success and development of the enterprise highly depends on its vision, goals
and objectives. It also affects the business during planning process. In this, manager of Ashtons
1

fixes their long and short term goals which support employee to do all their activities in a proper
manner.
Financial resources: It is also essential and necessary aspect which is needed by each
and every business to plan and allocate important resources with an aim of achieving objectives.
In this, role of manager is to identify effective components of finance such as bank loan,
overdraft and many others.
M1. Apply relevant tools and techniques in a structured and analytical way to plan and allocate
resources in a organisational context
There are mainly two types of project management techniques which are used by Ashtons
in order to plan and allocate resources (Ali and Babiker, 2017). These are Gantt chart and
Critical path analysis; both are determined as below:
Gantt chart: This tool shows the amount of production completed and work done in
certain time period. In this, business entity divides all their activities and functions as per the
time duration. It is a planned structure which is beneficial for the organisation to attain their
desired objectives. This is an effective tool this stay in the way of bar chart and provide
information that bring out the time period of every activity of project. With assist of this,
business manager can easily collect information regarding the need of resources to accomplish
end objectives and goals. Effective channels of communication should be apply by an
organisation as this aid in bring coordination among different business operations.
Critical path analysis: It is an effective technique for company to plan the resources.
With the help of this tool, business easily understands the time duration of project completed.
This tool assist in determining the different ways addressable to done the project within specific
time period. With this, company administrator can find out the longest way accessible to achieve
set objectives and targets in given time duration.
M2. Assess the importance of planning and allocating resources to achieve the business
objectives
Planning is important for each and every company to do all their activities in a proper
manner. It also supports in planning and allocating resources to the employees as per their skills.
With the assistance of accurate planning, Ashtons easily analyses different resources of fund as
well as achieve predetermined objectives in allotted time period. In addition, planning is an
2

important function and activity of every organisation, without they cannot accomplish its set
goals and objectives. With assist of this, administrator can apply all acquirable resources at a best
level and company can yield maximum number of profits. Thus it is very essential and
significance as with this company provide featured products and services to its clients at
reasonable prices.
D1. Critically analysis the application of appropriate resources to demonstrate links between
resources allocation and achievement of business objectives
According to the Cojoacă, 2017 there are different resources in order to attain long term
objectives. Finance and human resource management are one of the necessary factor to arrange
sufficient fund and recruit talented candidates. Further, sufficient fund help business to do their
operations and activities in given time period (Chauma, 2017). Along with that, goals, aim and
objectives of organisation are also essential for the enterprise to increase their sales or revenues.
As per the point of view of Stanciu, (2015) Different number of resources or aspects are
there that are follow by company to give featured products or services to its clients and to
accomplish business objective and goal within pre set time duration. When an enterprise have
each and every resources that necessitate to carry out business operations smoothly and
effectively (Burns, 2016). in case of sufficient resources that create hindrance and unneeded
delays in order to satisfy customers need. It is significance for administrator to develop a plan
and policy that include data regarding the resources need to run business operations in effective
way.
TASK 2
P2. Explain and evaluate different processes of customer relationship management for a small
business or social enterprise
Customer relationship management: It is an effective term that refers to technologies,
strategies and practices that business applies to handle and evaluate client’s interaction and
information throughout its lifecycle. The focus on CRM has become progressively core to entire
business entity. In order to build an effective and long-lasting relationship with customers,
company applies accurate process which are determined as below:
3

(Source: Customer Relationship Management, 2018)
Align systems with goals and strategy: It is a first step which is is needed to set the goals
and strategy in related the different number of customers. After setting up the goals to be
accomplish next phase is to develop an action plan in order to accomplish set targets within
predetermine time duration. This action plan will determine all the activities and task to be
executed during the performance of its customer relationship management program.
Consolidate customer data: Under this phase, the information gathered from target
audience is analysed in order to determine the customers' expectation toward business entity.
This assessment also supports in determining the factors that must be includes by an enterprise
while serving its clients to enhance relationship.
Segment customers: In this stage, Ashtons must select its target audience as per their
attribute, sop that all the customer relationship management try can be emphasised over them to
4
Illustration 1: Customer Relationship Management. 2018.

create a strong and long lasting relationship. It is the best activity for the company to give entire
data related to innovative sources, products and many others.
Personalise customer interactions: In this phase, main focus of organisation is to
communicate different offers. It is identified as an important phase for organisation to analysis
basic needs and wants of customers. This phase give entire data about business value towards
their products or services. In order to maintain a strong relationship, business entity provides
better commodity and collects feedback from customers. Further, role of the manager is to fulfil
all queries of clients in a proper manner. In order to maintain long-lasting and better connections
with clients, Ashtons applies Multichannel, IVR, Voice, Mobile, Social Networks, Web self-
service, Email, Knowledge base and many other.
Re-evaluate and recalibrate CRM Strategy: It is the last process which is essential and
beneficial for each and every enterprise to keep better relationship with customers in limited time
period. It is the role of manager is to re-evaluate their customer relationship management
strategy which help them to maintain better relationship with the customer. In this, organisation
uses different tools of digital marketing which attract a large number of customers to purchase
the products. Further, business organisation gives different facilities to the customers which is
essential for them to improve their connection with customers.
P3 Explain how a small business can develop transnationally and determine the benefits and
drawbacks
Transnational sales: It is a part of business profit and revenues. In this company provide
their all products and services internationally as per the demand of market. Company expand
their business operation in specific country which is essential for them to retain a higher degree
of sensibility to the national markets where they keep facilities.
In order to expand their business operations and functions at global level, they try to
produce quality product at affordable cost. There are different advantages and disadvantages to
enlarge business activities worldly (Javaid and Iqbal, 2017). There are some benefits which are
determined as below:
Independence: In this business owner is independent to create an effective decision
regarding development and growth of organisation.
5

Lifestyle: Owning a social enterprise and small business that provides few lifestyle
benefits. In this manager decide where and when they want to work effectively. It is essential for
the organisation to understand customers lifestyles and its choice related to building structure.
Drawbacks of small business ownership: There are some disadvantages of these which are
determined as below:
Financial risk: It is mainly required to launch and develop a business globally. Small
business has sufficient fund so they can not increase their operations at international and national
level easily.
Time commitment: Entrepreneurs often launch business operations so that they have
maximum time period to pay with their family members. It is a main disadvantages which is face
by the company owner during expanding their business operations.
Transnational expansion strategies: There are different types of transnational strategies should
be used by an organisation to deal in international market. Some important strategies will be
determined as under:
Exporting: It introduces as an effective process of selling services and products produced
in specific country to other nation. This expansion strategy has different advantages for Ashtons
such as; it assist in distribution of surplus, less costly and risky, and also supports in fast market
access.
Franchising: It refers as an useful method in which semi-interdependent owners of an
organisation pay royalty and fees to a parent organisation in return for the accurate right to be
determined by its trademark to sell their services or product. It is also essential for an
organisation because it highly motivated an employees to work on time to time.
Merger: It is introduces as a combination of two or more region entities into one, the
wanted effect being accretion of liabilities and assets of distinct entities.
Strategic Alliance: It refers as a voluntary formal agreement between two organisation to
pool their main resources to accomplish a common set of goals while remaining independent
entities.
Therefore all these type of entry modes will be essential but according to Ashtons,
merger is best option. As it has different advantages for an organisation such as tax benefits,
financial advantages, increased monetary leverage and provide proper benefits within given time
duration.
6

M3 Apply and evaluate the elements of customer relationship management process in relation to
achieving business objectives
There are mainly four elements of customer relationship management process which are
determined as below:
Understand market and customers: It is first process which is essential for the business
entity to know customers and marketplace where they can establish their products.
Develop the offer: In this stage, Ashtons provides different offers to the target customers
at affordable price. It is important process fir the company to increase their sales or revenues in
limited time period.
Acquire the audience: In this stage, Role of the manger is to target new audience in a
systematic manner (El-Rafei and et. Al, 2017). In this business consider acquisition cost which is
essential to calculate and evaluate customer value. In this clients loyalty program and referrals,
these are acquisition strategies which is important for the business success.
Change take place in product and service: Whenever an organisation inform a
modification in its serving then it either impact the relationship of customer in negative and
positive manner. Changes in product or service effect on business operations and productivity.
Difference take place in preferences and tastes of customers: It is another essential
component, whenever a alteration take place on requirements and demands of customers then it
also effect on customer relationship management. Ineffective relation with customers is not
beneficial for the success and growth of company. It will also effect on company while achieving
long term goals and objectives within predetermined time period.
M4 Evaluate the potential to develop transnational operations using the stage model of
internationalisation, assessing both benefits and challenges
In order to develop their business operations and activities at international level. Ashtons
apply Internationalisation model, it includes four parts which are determined as below:
Knowledge opportunities: It is important part of such model which is used by the
company to know different opportunities in order to achieve long term goals and objectives.
Therefore, accurate research activity should be executed so that administrator can gather data
regarding the chance subsist in marketplace and company can acquire a competitive and strong
position in market.
7

Relationship commitment decision: It is important for the organisation to create an
effective judgement about enlarging business activities and operations in national and
international level. This aspect show that quality in products or service should be serve to all
clients in actual time period as this assist in carry them for a long duration.
Network position: In this position of the companies channels such as advertisement,
promotions with the use of print and social media (Ludmila and Stanislava, 2015). All these are
highly important for the enterprise to introduced their innovative products and services in
marketplace. Various promotional and marketing techniques are apply by an organisation to
easily convey with clients and maintain a strong relationship with them. This it is essential for
the company to gain competitive advantages and achieve better results.
Learning creating: In this business entity organise different programs and events to
introduced their services and products information to the customer's and in the marketplace. In
this manager determine and highlight the areas, it is require to expand business operations at
international level.
Benefits Drawbacks
Brand recognition:
High brand acknowledgement can be
accomplish by Ashtons via performing their
business operations and activities across the
country. It assist business in increasing
development prospectives in various
marketplace and return maximum revenues
Expensive:
Expensive is identify as main
drawbacks of ruining business operations and
activities at global level. It involves many costs
such as acquiring facilities, getting permit and
many other. These are on the far side of small
enterprise
D2 Critically evaluate of customer relationship management process at all stages and provide
recommendations for overcoming challenges of developing transnational operations
According to the Ludmila and Stanislava, 2015 Company apply 4C's of customer
relationship process which are determined as below:
Correlate: It is refers a a series of interaction and transaction that create a better
relationship between user, channel and customers. In this, business manager organise an
8

effective program and influence employees running in different departments of company for
make and keep a strong relation with target customers.
Combine: In this management and mapping of interaction link between a clients, user
and channel. In this, an effective relation is create by organisation with customers. It is essential
for the company to overcome their challenges and attain better results easily.
Cognize: In this business entity know and capture the entire information regarding
business products and services. For this, administrator gather and evaluate data related with
various function of company. Accurate information assist an organisation to expand their
business activities and operation worldwide.
Connect: In this element utilization of insight in order to develop accurate interaction
with channels, consumers, suppliers, partners and customers that make strong relationship. It is
last process in which relation is implement with customers and suppliers. Therefore, it help in
achievement of better outputs within pre set time duration.
TASK 3
P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set
against income for a specific organisation
There are different sources of finance for small business such as equity finance, bank
loans, leasing and hire purchase and may other. These are determined as below:
Equity finance: In order to expand their business in future, equity finance is main source
which is beneficial for them (Nowotarski and Paslawski, 2015). It is a best tool of raising assets
by selling business shares to financial institution, investors and public.
Bank loan: It is also a main sources of finance which is apply by each and every
enterprise. It is a suitable and useful part of the financial structure.
Leasing and hire purchase: It is a kind of asset finance that use business or persons to
take and monitor capital during the process of agreement.
Forecasting and budgeting: There are some techniques of budgeting and forecasting resources
which are determined as below:
Time series data: In this business entity identify time duration of completing their
projects effectively. It is mainly depends on future time period which is beneficial for the
development of company.
9

Calculating a moving average: With the use of this tool, business entity calculate
customers needs and wants. It is an effective tool to acquire entire trends in a setting of data. It is
extremely valuable for forecasting future and long term trends.
Finding a trend: It is also essential technique which is used by the Ashtons in order to
finding latest trend effectively (O’Connor and Kelly, 2017). Further indicator's highest value is
in supporting investors and traders to differentiating whether a future trend is closing.
Dealing with seasonality developing budget: In this process business entity develop their
budget systematically. It is important for the company to forecast their future trends easily.
Balance Sheet, trading and P&L and cash flow statement of the Ashtons:
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
Trading and Profit & Loss Account at the year ended
10

2017 2018
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
Cash flow Statement
Pre launch cash
budget
Cash Flow
budget
Particulars Jan Feb
Ma
r
Ap
r
Ma
y
Jun
e
Jul
y
Aug
ust
Septem
ber
Octob
er
Novem
ber December
Cash inflows
Investment
800
0
Credit sales
200
0 3000
30
00
45
00
150
0
350
0
42
00
100
0 2000 800 1200 1500
Total inflows
100
00
300
0
30
00
45
00
150
0
350
0
42
00
100
0 2000 800 1200 1500
Cash outflows
Fixed :
Equipment’s
200
0 2500
15
00
20
00
120
0
150
0
80
0 200 300 100 600 300
Variable : Direct
material 300 300
20
0
30
0 150 500
30
0 400 500 100 100 400
Total outflows
230
0
280
0
17
00
23
00
135
0
200
0
11
00 600 800 200 700 700
Net cash flow
770
0 200
13
00
22
00 150
150
0
31
00 400 1200 600 500 800
Opening balance 0 7700
79
00
92
00
114
00
115
00
##
##
161
00 16500
1770
0 18300 18800
closing balance
770
0 7900
92
00
11
40
0
115
50
130
00
#
#
#
#
165
00 17700
1830
0 18800 19600
Post launch cash
11

budget
Particulars Jan Feb
Ma
r
Ap
r
Ma
y
Jun
e
Jul
y
Aug
ust
Septem
ber
Octob
er
Novem
ber December
Cash inflows
Investment
800
0
Credit sales
120
0 2000
75
00
30
00
500
0
650
0
12
00
320
0 1500 8200 1250 3210
Total inflows
920
0
200
0
75
00
30
00
500
0
650
0
12
00
320
0 1500
820
0 1250 3210
Cash outflows
Fixed :
Equipment’s
250
0 1200
15
00
25
00
110
0
150
0
12
00 600 500 500 1200 700
Variable : Direct
material 350 300
25
0
15
0 100 500
50
0 250 450 250 1300 500
Total outflows
285
0
150
0
17
50
26
50
120
0
200
0
17
00 850 950 750 2500 1200
Opening balance 0 6350
58
50
11
60
0
119
50
157
50
##
##
197
50 22100
2265
0 30100 28850
closing balance
635
0 5850
11
60
0
11
95
0
157
50
202
50
#
#
#
#
221
00 22650
3010
0 28850 30860
P5 Explain how break-even analysis could be applied to an organisational situation
Break-even analysis: It is a best tool which is apply by the company to identify their sells
requirement annually and monthly. Break point of the average is based on variable and fixed cost
per unit of sales (Cojoacă, 2017). It is very beneficial and popular techniques which is used by
Ashtons to identifies the profitability level. It gives business with targets in order to cover
production cost and create long term profit.
12

(Source: Break Even Analysis , 2018)
In the organisation there are some situation which is faced by the company like
production, sales forecasting and many other. In order to sort out production and other wastage
issues essential company use Break-even analysis which is essential for them. For example:
Fixed cost is 15000 and variable cost is 5 rupees per unit. Selling price is 7 per unit. BEP for this
is:
Break-even point: Fixed costs/ construction margin per unit or product = 15000/(7-5)= 7500 ans.
P6 Interpret key financial statements for an organisations in relation to how they contribute to the
successful management of the organisation
Financial statement: It is important part of the company which determined overall
information related to cash flow, Balance sheet and profit and loss account. These are determined
as below:
Balance sheet: It is main statement of the company which show assets and liabilities
(Durst, Yip and Lee, 2015). It is important and valuable for the organisation to maintain balance
between liabilities and assets of enterprise. In addition, it is the main statement that support in
determining the financial position of enterprise by representing the assets, liabilities and owner's
13
Illustration 2: Break Even Analysis

equity over a specific time duration. It is an important document that informed the organisation
owner regarding financial position of firm. It assist potential as well as current investors in
acquiring clear knowingness about where they should capitalise their fund and how much
acquire they can require in future. Ashtons can identify their financial position and statement by
arranging balance sheet. Due to this they can attract large number of capitalist to invest their
fund in it.
Trading and Profit & loss account: Trading can be refer as an investment account
containing cash, securities or other holdings. Most usually, trading account bring up to a day
trader's primary account. Beside this investors tend to sell or purchase assets frequently. It is also
essential and foremost part of the organisation which is show income and expenditure of the
enterprise. It is prepared by the company in monthly and yearly. Performance of the company is
assessed by giving a detail regarding revenue and expenses in its non-operating and operating
functions. P&L account assist in analysing net loss and profit that is created by business entity
over a financial period. Examination of this statement essential for Ashtons in the decision
making process about some areas of company. By evaluate the P&L account, assets value can be
measured by company that they currently have and assist in determining whether they are able to
buy more or not. Opinion about investments is also create by business with the assist of P&L
account that gives future advantages to firm.
Cash flow statement: It is necessary for the Ashtons to prepared their cash flow statement
quarterly basis. It is important and essential for the all enterprise to maintain their cash inflow
and outflow. In addition, it refers as the aggregate data about cash inflows the company collect
by its business operations and investment. On the other hand, cash outflow, it is paid by an
organisation at the period of executing its operations and activities in specific time duration. This
statement support the Ashtons in understanding that whether they are capable to recover their
expenses.
M5 Apply appropriate quantitative and analytical techniques to provide an appropriately detailed
cash flow forecast and break-even analysis
Quantitative techniques is very essential for the company to analysis their cash flow and
break-even point (BEP) in an accurate manner (Javaid and Iqbal, 2017). This tool assist the
business entity to do their all activities in proper manner. With the help of this technique
company easily analysis their performance and productivity level without any difficulty. Various
14

tools are there that can be apply by an organisation to determine the break even point. This is
essential and beneficial for administrator of Ashtons to evaluate all acquirable techniques before
select a final one. It is significant for company to analysis break even point as it support in
identify the fiscal performance of company. BEP highlight the accurate point where company not
gain profit and sustain no loss. Each decisions and activities are taken by company and emphasis
to achieve BEP as company do not face any type of loss.
D3 Produce an accurate cash flow forecast and break-even analysis with a critical evaluation of
how key financial statements contributes to the successful management of the business
According to the El-Rafei and et. al, 2017 Key financial statement mainly includes
balance sheet, cash flow and profit and loss account. All these are highly essential and necessary
for the enterprise to maintain their performance and productivity in quarterly, weekly, monthly
and yearly basis. Above three statements are show the business assets, liabilities, income and
expenditure systematically. Different financial statements are implement by company including
cash flow statement, income statement and balance sheet. This support in determine the fiscal
performance of company and also lead administrator to take an effective and accurate decision.
Profit and loss account is refer as important part of financial statement that show the new profits
and loss of company and. Balance sheet cover total liabilities and asset of company. Another
cash flow statement bring out cash inflow and outflow in business entity in particular time
period.
TASK 4
P7 Discuss key legislation and regulations that have implications on small businesses or social
enterprise
There are some rules and legislation which are highly impact on Ashtons performance
and its productivity level. These are determined as below:
Tax and Employment (1976): As per this act, that gives for the collection and levy of tax and
employment on professionals in the state (Parkin, Fielder and Ashby, 2016). This legislation
highly effects on the company performance and effectiveness in a direct and indirect way.
Health and safety act (1974): Under this act, company mainly emphases on employees health
and safety which is important for the organisation to maintain long lasting relationship with
them. Good health is essential for the Ashtons to achieve desired objectives effectively.
15

Data protection act (1998): As per this legislation, workers of the Ashtons is liable to provide all
information systematically to their juniors. This act support the employees to increase their
performance and productivity in the organisation (Skolud and et. al., 2016). In this main role of
the employees is to exchange entire data about personal problem, opinion, product quality and
many other.
Record keeping act (2006): Under this legislation, company keep all records of their employees
regarding its performance, work and activities in the business. So it is important act which
effects on business performance and its profitability level.
M6 Evaluate the implications of key legislation and regulations in an organisational context
Above all acts are important and necessary for the business success and development. In
the company, there are different issues regarding employees health and safety, record keeping,
data protection and tax & employment (Winarno and Wijijayanti, 2018). All these are
implemented in the organisation during providing roles and responsibility, maintaining workers
health, understanding of employees performance and work. Every company remain accountable
to apply different legislation regulated by legal authority while execute business activities and
functions in proper manner. It is more effective and essential for administrator to apply all acts
while develop policies in respect with business. With this, Ashtons can give healthy and safe
working atmosphere to its workers and this raise their creativity. It is essential for the company
to maintain better relation with customers for long duration.
D4 Critically evaluate key legislation and regulations that effect small businesses or social
enterprise organisations, taking future developments and changes into account
In the organisation, there are different key regulations and legislation which is highly
effected business performance and effectiveness (Stanciu, 2015). Health is one of the main part
of the company success so in this business should try to provide effective and durable goods at
affordable cost. In small business, there are few number of workers which are work with
achieving long term goals and objectives. Different regulations and acts are there which impact
the operations and judgement of small business. It is beneficial for administrator to follow all
regulations regulated by authorities and the alteration made in it for make effective and accurate
decisions as per this. For the, Ashtons can execute its business operations and functions
effectively and systematically.
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CONCLUSION
From the above mentioned report, it can be determined the importance of SME for the
unemployed person. There are different resources which are important for the organisation to
plan and allocate business plan as well as predetermined objectives in limited time period.
Customers relationship management process is very important for the company to maintaining
long lasting and strong connection with customers. Good relation assist an enterprise to increase
their sales and revenues. Financial statement is also essential part that show business assets,
liabilities, income, expenditure, cash inflow and outflow. In order to maintain all records
systematically break-even analysis is necessary. Different types of regulations and legislation
also impact on the company performance and profitability level in a direct and indirect way.
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