Resource Allocation and Financial Analysis for Green Man Gaming

This report provides a comprehensive analysis of Green Man Gaming, a small online gaming business. It begins with an overview of the company and its challenges, particularly in relation to resource allocation and customer base management. The report then delves into key aspects of running a small business, including the main considerations for planning and allocating resources, various customer relationship management (CRM) processes, and important tools for business growth. A significant portion of the report is dedicated to financial analysis, including the development of an annual itemized monthly cash flow projection, the application of break-even analysis, and the interpretation of financial statements. Finally, the report examines the main legislation and regulations impacting business enterprises. The report aims to provide a holistic understanding of the challenges and strategies involved in managing and running a small business like Green Man Gaming.

MANAGING AND
RUNNING A LESSER
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Overview of company............................................................................................................1
P1. Main considerations that must be considered when planning and allocating resources. .1
TASK 2............................................................................................................................................3
P2. Various different processes of (CRM) Customer relationship management to enhance the
small business.........................................................................................................................3
P3. Important tools to small ventures in order to grow the working standards along with
benefits and drawbacks...........................................................................................................4
TASK 3............................................................................................................................................5
P4 Development of an annual itemised monthly cash flow projection presenting variable and
fixed costs set in contradiction of income for a particular organisation.................................5
P5. The way break-even analysis can be implemented to an organisational circumstance. . .6
P6 Interpretation of financial statements of company in relation to the way they contribute to
successful administration of company....................................................................................8
Income Statement............................................................................................................11
TASK 4..........................................................................................................................................13
P7. Main legislation and regulations which have major implications on business enterprises13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
SMEs play an important role in contributing towards the economic development of a
country as they help in generating employment, effective use of available resources, meeting the
needs of a large number of customers etc. In order to run a small business effectively it is
important that the resources of company are utilised efficiently by taking into consideration the
capacities of company so that requirement of customers can be met effectively (Long, Indigo and
Blok, 2020). In this report Green Man Gaming is taken which is a small business based in
London that deals in online gaming so that the way in which resources can be used in achieving
goals and objectives of company can be understood. Also the analysis of cash flow forecast,
budget, break-even point, interpretation of financial statements, implications of regulations and
legations etc. will also be covered in this assignment so that overall knowledge on running a
small business can be developed.
TASK 1
Overview of company
Green Man Gaming Plc is a newly started venture established in 2009 and deals in
various types of goods and services like food, beverages, retailing etc. Currently the business is
facing an issue related with decreased customer base which is affecting its profitability in
market. The company is therefore considering upon improving its plan in meeting the needs and
wants of its customers so that it can remain competitive in market (Kurpjuweit and Wagner,
2020).
P1. Main considerations that must be considered when planning and allocating resources
In order to effectively run a business, it is important that the resources in company are
utilised in an efficient manner and allocated in various departments so that organisational
objectives can be achieved. Green Man Gaming Plc needs to utilise its resources in an optimum
manner so that they can be directed in fulfilling the needs and wants of its customers which can
help it in building its brand image thereby improving its profitability in market. In order to
achieve business objectives, it is important that resources are well planned and allocated as per
the requirement of each department so that employees can utilise them and complete the work
given to them on time. Following are the factors that must be considered while allocating and
planning resources in Green Man Gaming Plc:
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 Staff members and skills: Employees in an organisation plays an important role in
achieving its goals and visions on time and within budget. It is important that the number
of employees and their skills regarding using resources must be analysed so that they can
be allocated resources as per the work given to them. This can help the employees of
Green Man Gaming Plc in effectively utilising the available resources so that highly
effective results can be generated (Esmerova, 2020).
 Vision, mission and objectives of company: Depending on the mission, vision and
objectives of company the resources must be acquired so that they can be allocated in
various activities of business. In order to achieve high quality results and to emphasize
on customer demands it is important that resources are planned and organised in such a
manner which can help in improving the confidence of employees and enhance their
productivity. Also this can help in improving the efficiency with which customers are
satisfied with the goods and services provided by Green Man Gaming Plc.
 Monetary resources: Financial availability determine the quantity and quality of
resources that can be acquired by a company and the way in which these resources can
be utilised in operational activities so that high profits can be achieved. Various financial
statements like balance sheet, income statements etc. can be analysed so as to determine
the financial capacity of a business which can be helpful in planning and organising
resources.
Various types of tools and techniques can be used by Green Man Gaming Plc so that the
resources can be used in an efficient manner so that its customer base can be increased by using
the resources:
 Gantt Chart: This is a tool that can be used in allocating time with respective yo various
activities so that an interrelation among various activities and time required in completing
the activities can be determined. With the help of this tool resources can be allocated
among activities so that they can be completed within the time associated with them so
that high quality of results can be achieved. Green Man Gaming Plc can use this tool so
that resources can be utilised in an efficient manner which can help in meeting the needs
and wants of customers (Russell, Westby, and Watt, 2020).
 Critical Path Analysis: This is another tool that can help in finding shortest possible path
that can be followed in achieving desired goal and objectives in an organisation. Green
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Man Gaming Plc can use this tool so that funds can be used in an optimum manner by
using funds and acquiring sufficient amount of resources so that results can be achieved
in high quality.
For all the businesses it is essential that resources are appropriately planned as per funds
available with company so that operations can be performed in Green Man Gaming Plc in an
efficient manner. With proper allocation of resources the ability of employees in using their
skills and capabilities can increase and also they can effectively contribute towards growth and
development of company in market. Also this help in improving the optimum utilisation of
resources which is important in gaining maximum benefits from the use of available resources in
company (Onyusheva, Thammashote and Thongaim, 2020).
TASK 2
P2. Various different processes of (CRM) Customer relationship management to enhance the
small business
Customer relationship management: It is considered as a process with the help of the
customers services can be improved and they can be retained for a longer period of time with the
organisation. For the organisation it is crucial that they have better relations with their customers
so that they can maintain their profitability. Green Man Gaming uses this concept with the help
of which they ensure that their customers are satisfied. All the processes are as follows:
Analytical process: This is the process in which the data of the customers that includes
their taste, preferences, demands and needs are analysed. On the basis of such information
marketing campaign are developed that enables them in ensuring the customer are aware of their
offerings of the Green Man Gaming. In addition to this the pricing of the products, their
development and target market are related to this process are also identified with this (Mourik,
and et. al., 2020).
Operational process: With the help of this process the organisation can perform functions
like marketing , sales etc. It provides guidance to the managers of Green Man Gaming that can
enables them, in resolving the issues of the customers which can attract large number of
customers for them . The main objectives of this process is to generate leads for the company
form the external market and then further convert them into business contacts in order to capture
larger market share.
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Collaborative process: With the help of this process Green Man Gaming can ensure that
the communication process can be established with the customers by ensuring effective
interaction. It includes collection of the feedbacks, reporting of the queries and the issues faced
by the customers. The main purpose of the voice mails websites and iteration emails is to
improve the communication process. With this the delivering process can be improved.
With the help of above mentioned process the managers within the Green Man Gaming can
manage their relations with the customers efficiently (Shafigullina and et. al., 2020).
P3. Important tools to small ventures in order to grow the working standards along with benefits
and drawbacks
As per the current market scenario it can be analysed that transnational operation are
treated as a strategy with the help of which the organisation can efficiently operate at the global
level. This enables them in analysing the business environment through cooperation of the
headquarters as well as the international business situations. At the time of expanding the
business in another nation it is crucial for them to ensure that they have efficiently analysed
external market conditions as well as other factors which directly has influence on the products
and services offered by the Green Man Gaming. This facilitate in ensuring the expansion of the
business with the help of which they can increase their profits and sales as people can easily be
attracted towards their offering if their needs and level of expectation is analysed. At the time of
planning various actions by the managers of Green Man Gaming it is crucial that they put extra
efforts for managing the business by identifying the opportunities for the business to grow as
well as to develop (Kijanka, and Lipska, 2020). Various benefits and drawbacks for launching
the business transnationally are given below:
Benefits:
 Foreign trade: By introducing the business transnationally the foreign transactions of the
Green Man Gaming will increase and this will enables the company to directly improve
their sales as well as it will ensure that they have sufficient amount of funds for meeting
their daily operational requirements. If the supply of the offerings of Green Man Gaming
will increasing throughout then it will ensure better liquidity of the company due to
which they can make their payments on time and thus this will gradually ensure their
success.
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 Independence: All the person within the organisation that have responsibilities such as
the owners, board members etc. can make decisions for the growth and development. The
managers within Green Man Gaming are free to make decisions for them like expanding
business transnationally so that the profit can be enhanced (Genennig, 2020).
Drawbacks:
 Risk in terms of finance: The risk which is associated with the expansion of the business
transnationally by Green Man Gaming is financial risk because it is not possible for a
small organisation to directly expand their business. Also for ensuring their success they
have to expand a lot of funds on their promotional activities to create awareness due to
which their requirement of funds will gradually increase.
Long time period: It takes a long time to establish a business in different countries and Green
Man Gaming has to put efforts to ensure that their business run efficiently on transnational level.
TASK 3
P4 Development of an annual itemised monthly cash flow projection presenting variable and
fixed costs set in contradiction of income for a particular organisation
Cash flow statement is referred as the financial statement which summarise cash and cash
equivalents amount that inflow and outflow within a company. It helps in measuring the way
firm manage its cash position. It helps in determining how well an organisation generate cash in
order to pay its debt obligations as well as fund operating expenses. This statement complements
income statement and balance sheet and is very crucial part of financial reports of the
organisation. The main components of the statement include cash from investing activities, cash
from financing activities and cash from operating activities (Ludmila, and Stanislava, 2015).
Cash flow can be calculated by two methods, that are direct and indirect method. Apart from
this, cash flow statement of an organisation allowed the investors to understand the way firm
perform its operations, the way money is being spent and from where it comes from. It helps
them in determining the position of company in the market and taking investment decisions.
The Balance Sheet, profit and loss account and cash flow statement in relation to Green
Man Gaming are provided below:
Balance Sheet:
Year 2017 (value in £) 2018 (value in £)
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Fixed assets 130 210
Stock 20 35
Bank 20 30
Debtors 70 55
Total 240 330
Bank overdraft 90 70
Creditors 120 180
Total 210 300
Working capital 30 80
Profit and Loss Account at the year ended
2018 (value in £) 2019 (value in £)
Sales 20 30
Cost of sales 10 15
Gross profit 30 45
Overheads 6 7
Net. profit 24 38
Cash flow Statement
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P5. The way break-even analysis can be implemented to an organisational circumstance
Break even analysis can be stated as the approach which is used by managers widely in
production management and accounting management. By the help of this tool the company can
be able to analyses the point at which new product or service of an organisation will be
profitable. In order to determine the stage at which business accomplish the stage where no profit
and loss is occurring, the variable cost and total fixed cost is compared with sales revenue so that
adequate sales volume level can be determined (Nowotarski, and Paslawski, 2015). Green Man
Gaming use break even analysis for evaluating the price levels related to demand and the volume
of sales which is required to generate that covers the total fixed cost of company. This point
shows that Green Man Gaming attain the stage of no profit and no loss. Here, in this situation the
total cost and the revenue of company are equal which means a balanced state is attained by
company where all the costs are covered and no loss is incurred by it.
For calculating the point at which the revenues of company begin to exceed cost, break
even analysis tool is used by manager of Green Man Gaming. This assist them to determine
when they initiate to convert profit as well as also aid in setting appropriate price of their
product. The analysis renders dynamic overview of link among profits, costs and revenues.
Identification of the break-even point assist company in taking numerous decisions about
enhancing its financial performance. Apart from this, sales put direct influence on business
operations and activities as high sales shows the state of profitability. On the other hand, lower
sales of company depict condition of loss. Attaining high growth, sustainability and success for
long term in the market is the main emphasis of company and it is done through enhancing
operations and activities of firm in an effective and appropriate way (O’Connor, and Kelly,
2017).
Green Man Gaming is an online video game retailer of United Kingdom and has multi-
platform catalogue of more than 6600 games from over 660 publishers and selling its game in
195 Nations. The company is concerned about enhancing its profitability and sales by developing
high quality games which satisfy the needs of gamers. Numerous efforts are done by the
management to enhance sales of organisation so that more benefit can be gained and good
position and long-term sustainability can be attaining in the market. Analyzing the financial data
is the main responsibility of Management of company which is collected through distant sources
in order to anticipate the demand of the product. For crossing the break even point and attain
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high profits, various efforts have been made by the company as these assure its survival in
market place for the long term (Parkin, Fielder, and Ashby, 2016). The manager of Green Man
Gaming get assistance by this analysis in minimizing waste as well as reducing cost which
ultimately help in improving the productivity of company and also bring efficiency in its
operations and activities. The calculation of break even point is provided below:
Sales of firm 34 * 30 1020
Variable Cost 34 * 15 510
Contribution 34 * 15 510
Fixed Cost 34 * 15 510
Profit / loss - NIL
P6 Interpretation of financial statements of company in relation to the way they contribute to
successful administration of company
Financial statements can be stated as written records about business activities and financial
position of organisation. These statements help the business manager in developing appropriate
strategies and executing them in order to enhance the business operations. The financial reports
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are also utilized to ascertain financial performance and liquidity of company (Skolud and et. al.,
2016). Some of the financial statement of Green Man Gaming are provided below:
Balance sheet: it is defined as the statement which help company in ascertaining its
financial position by representing assets, equity and liabilities over the specific time period.
Balance sheet depicts the income and expenses of organisation in the entire financial year. It is
the crucial document which keep inform the stakeholders, owner and other investors of business
regarding financial position of company. It also assists the potential investors along with current
investors to take decision regarding whether to invest or not in the business. By preparing the
balance sheet, Green Man Gaming can ascertain its financial position and attract investors with
the help of it to invest in the organisation (Stanciu, 2015).
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10

Income Statement
A firm emphasises over three main cost that is related to operating cost, cost of investing
as well as financial cost. According to the above provided statement, the operating cost is
961500. Apart from this, the cost of investing depicts in negative, i.e., (646300).
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Interpretation: as per the above provided cash flow statement, it can be said the total cash
flow in the Green Man Gaming from operating activities is 961500. However, some of the
components like finance and investment depicts negative balance, i.e., around -329300 and
646300 respectively.
TASK 4
P7. Main legislation and regulations which have major implications on business enterprises
In current competitive business environment, the contribution of small businesses is high
in development and growth of economy. Small firms are considered as change agent in the
economy which brings innovative products and services in the market. Government also provide
support to small businesses which helps them in running their business operations smoothly and
effectively. However, there are some laws and regulations which are made by government and
all the organisation needs to compliance with those laws and legislation for running their
business operations appropriately (Van Scheers, Botha, and van Scheers, 2018). Compliance
with all the laws and regulations impact positively on business operations while noncompliance
may create several issues for the business in running its operations. So, there are some
legislations which need to be followed by Green Man Gaming which are discussed below:
Employment law: it is the law which regulate relationship between employees and
employer. It defines the roles and responsibilities of employer towards an employee. According
to this law, it is the responsibility of employer to provide its employees with safe and healthy
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workplace environment and treat each individual fairly with equal respect and dignity. It
involves several regulations associated with health and safety of workers, their rights, fair
compensation and working conditions. It is necessary for the Green Man Gaming to execute the
law at workplace and run its operations accordingly in order to eliminate any kind of legal
actions.
Health and safety law: this legislation states that it is necessary for the employer to provide
its employees with healthy workplace environment so that the chances of occurring accidents can
be reduced and all the employees work effectively without any fear. The employer must provide
its employees with safety measures along with proper training to handle machineries and
equipment in an appropriate way (Winarno, and Wijijayanti, 2018). This will help company in
ensuring healthy and safe workplace environment which in turn improves the productivity and
performance of employees.
CONCLUSION
As per the given information in the report, it can be said that small businesses play an
identically significant role in enhancing the economy along with strongly influences over
economic conditions all over the world. Emphasising over laws such as health and safety law and
Employment Law, 1996 while running business operations will assist firm in accomplishing its
goals and objectives in an effective manner. On the other hand, a perfect budget might support a
plan to get implemented in proper way. Business owners are elementarily to improve the
emphasise over customer needs so that the products could be sell out to them correct and on the
time as per the desired supply.
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