Softwire's Success: Factors, CRM, Financials & Legal Analysis

This report provides an analysis of Softwire, a small-scale software development organization, focusing on various factors crucial for business success. It covers five key factors for achieving business objectives, including employee goal setting, actionable feedback, investment management tools, financial efficiency through technology, and KPIs. The report defines Customer Relationship Management (CRM) and its benefits, alongside an exploration of transnational development strategies for international expansion. It further includes a break-even analysis and a review of financial statements, highlighting the company's financial status and calculations. Finally, the assessment discusses the legislative framework relevant to Softwire's operations.

Unit 29 Questions

Table of Contents
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
1. 5 factors that the business will need to consider, then explain the importance of each factor..............3
5 Factors which are helpful to complete the objectives & goals..............................................................3
2. Define the term Customer relationship management...........................................................................4
3. Transnational Development.................................................................................................................6
4. Break-Even Analysis...........................................................................................................................7
5. Financial Statement.............................................................................................................................8
6. Legislation. Discuss all the different legislations (laws)....................................................................12
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
Introduction

Small scale business are considered baseline of the development which can lead the growth
of the country people and also improve the economical growth level. The main motive behind
the establishment of the small businesses are to improve the living standard of the local areas &
communities people so that they can get all the goods, services & also all essential resources
easily with the help of the companies. This assessment is all about conduct discussion about the
small businesses and organisation is selected for this assessment in Softwire which is small scale
software development organization established in 2000 and running their business in various
areas of United Kingdom like London, Manchester, Milton and many others. This assessment
will based on some specific questions which are related with the factors for the successful
accomplishment of business objectives, customers relationship management, areas of customers
research management, transnational development. Moreover, this project will highlight the
financial status and calculation of the company like break even analysis, financial statements.
Lastly, this assessment will discuss about the legislative framework like specific acts and
policies.
Main Body
1. 5 factors that the business will need to consider, then explain the
importance of each factor.
5 Factors which are helpful to complete the objectives & goals
There are various factors are involved which are considering as a right resource which can
helpful to compete the business objectives and goals. The explanation of all these factors which
can useful to improve the effectiveness of small businesses so that they small firms can
appropriately achieve the goals in order to maintain their market growth (Adhikari , Alm and
Harris, 2021). Set the employees goals and Traning management - This is considered as the most
appropriate factor which can useful to to achieve the business objectives and also goals so

that a small-scale organization can effectively improve their market growth rate. In
context of the Softwire company, the main motive of the company is to provide high
quality of software development facilities and services to their potential customers so that
company can effectively improve their market in various location. Softwire set their
employees goals and provide specific clarity in their roles and responsibilities & also
arrange advanced level of training management sessions which can useful to to obtain the
business objective and goals easily (Anderson, Lazicky and Zia, 2021). Provide actionable feedback - feedback system is also containing as a most demanding
factor which is playing important role in order to improve the productivity and
performance level of the staff members of these small organizations. Softwire is a small
corporation which mainly targeting some specific locations of United Kingdom like
London and Manchester show the main concern of the company is to to improve their
employees effectiveness with the help of actionable feedback so that all the employees
can effectively provide their basic contribution to achieve business goals. Use investment management tools - Company needs to engage with the right finance
partner so that company can effectively use investment management tools in an
appropriate way. Softwire is properly maintaining their small businesses and provide high
quality of services to their customers. With the help of investment management tools like
right financial partner, stock, bonds, certificate of deposits and many otehrs are helpful to
accomplish the business objectives (Chatterjee and et. al., 2021). Financial efficiency via technologies - This factor is helpful to enhance the financial
efficiency with the help of high level of technological changes so that is small scale
organisations can maintain their financial structure and improve their financial position.
Softwire is a technological based company and providing software development related
technologies to their customers so company e always connected with high-level of
technologies which can help to improve their financial efficiency level so that company
appropriately achieve their day-to-day business objectives.
 KPIs to monitor the business objectives - To attain business objectives, it is necessary
for the small businesses to utilise the specific Matrix and tools and techniques like key
performance indicator (KPIs) so that company can effectively identify their current
market situation and analyse their performance level. Softwire utilise specific key

performance indicators in order to generalize their performance level so that company
can make a proper strategy to achieve the business objectives (Cochran, Robertson and
Hoek, 2021).
2. Define the term Customer relationship management
Customers lationship Management
Customer relationship management (CRM) is a term that refers to technology that aids in the
management of a company's interconnections with current and potential customers. The major
purpose of implementing customer relationship management in a small business is to improve its
business relationships while maintaining in touch with clients, as well as to correctly streamline
procedures and increase overall profitability. Through this, CRM aids a firm in gaining a better
understanding of their customers' behaviour and expectations so that appropriate changes may be
made in their business process to ensure that consumers are satisfied. Softwire is considering this
technique in order to improve their market growth and get various benefits which are given
below -
Benefits of customers relationship management for small business
 Enhance customers services - CRM keeps track of all of business connections and
gathers lead and customer data to create profiles of everyone you deal with. This allows
users to quickly access critical information about client behaviour, such as transaction
records and previous discussions with contacts via various channels (social media, chat,
email, etc.). Clients won't have to tell person their experiences over and over, and you'll
be able to address concerns more efficiently and effectively, resulting in increased
customer satisfaction (Elvan and Birben, 2021).
 Retain more customers - This is also considered as the most specific benefits of
customer relationship management so that Softwire can effectively improve their
customer relationship and increase their customer base in order to to maintain the the
marketing and selling process of the business.
 More transparency - customer relationship management improve bi more
transparency& allows the company to encourage greater transparency in business. If sales
are companies’ primary priority, company can employ performance tracking for

individual sales representatives. CRM gives everyone in company visibility into business
operations, enabling better communication and collaboration ( McKenzie, 2021).
There are various areas are available in context of CRM which can provide various
advantages & disadvantages to the organisation. The explanation about the all these specific
areas in term of Softwire organisation are given below -
 Customer relationship management system - The interactive CRM system includes
department and multichannel integration, which is critical and efficient in freeing clients
from the terrible experience of having to repeat oneself each time they speak with a new
contact. The key benefit of a collaborative CRM system is that it reduces customer care
expenses while also increasing the valuation of goods and allowing for better right to
existing customers. In addition, customer Engagement tends to increase customer
retention and loyalty through enhanced transparency, allowing businesses to retain and
attract more consumers with fewer resources. The expense is higher, and the level of
complicity is higher.
 Strategic operations & colleboration - This is containing as the most appropriate key
areas of customer research Management which can help to improve the customer
relationship management considerations. Softwire can effectively maintain their strategic
operations and improve their collaboration with their staff members and also clients and
customers so that company can improve their market position. The main advantage of
this factor is to improve the effectiveness of the operations & drawback is that it
consumes more time.
 Personalized customes interaction - This is also considered as the main area of the
customer relationship management which can help full to improve the customer
interaction so that Softwire improve their business operations and gain more profitability
rate. The main advantage of this to improve the participation of the individuals whether
they are employees and customers and main drawback is to enhance the miss
communication sometimes (Merrin, 2021).
 Analytics & sales optimizations - This is containing as the area related with the
customer relationship management which can help full to to lead the sales optimisation &

improve the involvement of analytics. Main advantage of this factor is to lead the sales of
the Softwire and drawback is declining the usages of the traditional methods.
3. Transnational Development.
The concept "transnational development" is mostly related with and linked to a company's
international expansion, which includes a variety of actions taken to assist a company's growth in
many countries. As a result, the term transnational development is increasingly being associated
with a worldwide network that brings together development and postcolonial ideas in order to
assure global expansion. The following are the numerous ways during which a firm can
efficiently expand and develop at an international level, as well as an analysis of their primary
advantages and disadvantages. Softwire small scale firm is running their business in specific
areas of United Kingdom. In order to improve their market growth, adopt transnational
development concept so that company can effectively improve their business operations in other
locations effectively.
International Business Expension Factors
There are factors are involved in the business expansion process of of organisation
internationally which are considered by the Softwire organisation with their benefits and
drawbacks which are as follows -
Internet
This is most common and demanding factors which can help full in business expansion
internationally. Internet is considered as the the largest network which connected with the help of
computers all around the world. With the help of internet, every organisation can easily transfer
their data han and also communicate with the people across the whole globe and improve their
strong network. Softwire is a technological based company with use internet to connect with
their customers and employees there are specific benefits and drawbacks of the factor which are
given below - Benefits - First most convenient and prospective accessibility to the international market,
as well as lower production overhead at numerous locations throughout the world.

Minimize marketing costs while maintaining the most constant and productive interaction
and communication with customers worldwide. Enables enterprises to quickly connect
with their shipping supplier and other stakeholders through automation machines and
resource sharing, eliminating bottlenecks and ensuring a simplified and efficient
procedure ( Shepherd, 2019).
 Drawback - It decline the direct interaction and limiting the scope of global expansion.
Due of the lack of a direct human interaction & direct engagement, there may be a
decreased profit margin. Critical comments are common on the internet, which can harm
a company's brand equity and brand position as it expands internationally.
Joint ventures
This is also considered as the main source which can helpful to improve the business
operations in another country. Joint venture is useful to improve the business arrangement and
collaboration in which at least two or more parties and provide their acceptance to pool specific
resources in order to obtain the specific task. Joint venture can helpful to improve the
participation of the organisation so that they can effectively improve their profile, costs and
profit.
 Benefits - New trade agreements and logistics provider capacity expansion. Costs and
risks are shared with a partner. exposure to new information and skills, as well as
specialised personnel improved access to productive resources, such as innovation and
funding.
 Drawback - The venture's goals aren't entirely apparent. The channel of interaction
between couples is poor. The joint venture's partners have different expectations. There is
a disparity in terms of competence and expenditure. Work and materials are not evenly
allocated.
4. Break-Even Analysis
It specifies the number of units of a production that must be sold by an enterprise to cover
its total fixed and variable manufacturing expenses. As a result, the break-even point indicates

the safety margin by calculating the quantity of output or a targeted desired sale to pay the cost.
Furthermore, the break-even threshold is determined by comparing the amount of fixed costs to
the profit made from each extra unit produced and sold. The following formula related with the
Break-even point is used to compute the break-even point in units -
Break-Even point = Fixed Costs / (Sales price per unit Variable costs per unit)
Calculation of Break-even analysis
Break even point analysis about the Softwire organisation are discussed below -
Softwire organisation required to produce the specific sell unit at least 1000 units related with the
company no profit and no loss situation (Smith and Welch , 2021).
5. Financial Statement
The statement of financial position is a set of formal records kept by a business organisation
that show the firm's real financial activities and financial position over a given timeframe. The
financial statement, income statement, cash flow stamen, and shareholder's equity stamen are the

four key records that make up a company's financial stem. The balance sheet is the primary
financial statement that depicts a company's financial position, including assets, liabilities, and
equity at a specific point in time. The explanation related with the Softwire organisation and it's
financial statements including the income statement, cash flow statement and balance sheet are
discussed below -
The revenue of the Softwire organisation is considered as per the last 8 years financial years
determine the profit rate so that it will make easy to understand the achieve revenue as per the
2000 to 2008. Through this graph, it can be determined that revenue rate is achieved the 20% of
the revenue rate and improve the gross profit margin.

As per this calculation, it can be determined that there are various factors involved which
can provide best contribution in order frame the income statement of the company. As per the
2018 financial year, the cost of goods sold 11.5 m, gross profit 3.2 m, EBIT is considered as the
1.5 m, interest income, 26.5 K, net income is considered as 1.4m.

On the basis of cash flow analysis, it is measured that net income is considered as per the 2017 financial
year 2.1 m and net change in cash in determeind 2.3m.