Unicorn Grocery: Managing and Running a Small Medium Enterprise

This report provides a comprehensive analysis of Unicorn Grocery, a small to medium enterprise (SME) based in Manchester, England. The report delves into the critical aspects of managing and running a small business, starting with the main considerations for planning and allocating resources to achieve business objectives, including vision, mission, financial resources, and skilled human resources. It explores the application of relevant tools like critical path analysis and Gantt charts. The report then evaluates customer relationship management (CRM) processes, including client portfolio analysis, and the ways in which a small business can develop transnationally, along with its benefits and drawbacks. Furthermore, the report examines financial aspects by producing a cash flow forecast, applying break-even analysis, and interpreting financial statements. Finally, it discusses the implications of key regulations and legislation on small businesses. The analysis is structured to provide insights into the practical challenges and opportunities faced by SMEs, using Unicorn Grocery as a case study.

Managing and Running a
Small Medium Enterprise

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Main considerations a firm requires to address when planning & allocating resources to
attain business objectives............................................................................................................1
M1 Application of relevant tools and techniques to plan and allocate resource.........................2
M2 Significance of planning and allocating resources...............................................................2
D1 Application of appropriate resources to depict link between attainment of business
objectives and resource allocation..............................................................................................3
TASK 2............................................................................................................................................3
P2 Evaluation of various customer relationship management process.......................................3
P3 The way small business can develop transnationally & its benefits and drawbacks.............4
M3 Elements of customer relationship management process.....................................................5
M4 Evaluation of potential to develop transnational operations................................................5
D2 Critical evaluation of customer relationship management process.......................................6
TASK 3............................................................................................................................................6
P4 Produce cash flow forecast showing fixed & variable cost set against income.....................6
P5 The way break even analysis could be applied to organisational situation...........................9
P6 Interpretation of financial statement of firm........................................................................10
M5 Application of quantitative and analytical techniques........................................................11
D3 Contribution of key financial statements to successful business management...................11
TASK 4..........................................................................................................................................11
P7 & M6 Implication of key regulations and legislations on small business...........................11
D4 Critical evaluation of key legislation that affect business...................................................12
CONCLUSION .............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Small Medium Enterprises are defined as autonomous, non subsidiary firms which
employ less than 250 employees. These are independently owned & operated business concern
that is limited in terms of its revenue and size depending on the industry. Small grocery stores,
restaurants, bakeries, hairdressers, photographers, web design, electricians, carpenters,
accountants, convenience stores etc. are included in small businesses (Abduli, 2013). In the
present assignment, chosen organisation is Unicorn Grocery which is a co-operative retail store
of Manchester, England. The report includes the way in which social enterprise or small
businesses plan & allocate resources to attain objectives. Evaluation of customer relationship
management process for business including understanding of challenges and benefits of
transnational operations is also defined. Apart from this, examination and interpretation of cash
flow forecast, break even analysis, budget and key financial statements is done. At last,
legislations and regulations of small business or social enterprise and its implications are
discussed in this project.
TASK 1
P1 Main considerations a firm requires to address when planning & allocating resources to attain
business objectives
Small businesses are identified as privately owned sole proprietorship and partnership
firms which have less manpower and revenues in comparison to regular sized business or
corporations. In United Kingdom, Unicorn Grocery is a small retail business enterprise that
provides household goods to consumers at affordable price. Firm operates with the aim of
administering employment opportunities to local people of country so that their living standard
can be improved. At the time of planning and allocating resources, management needs to
consider several factors so that effective plans and strategies can be framed and business
objectives can be attained (Afrifa, 2013). Main considerations that management of firm needs to
address are defined below:
Vision, mission, gaols and objectives:
It is very crucial for every business entity to communicate its targets, mission, vision and
objectives clearly to their workforce. These all assist administrators of Unicorn Grocery to
formulate strategies and define activities and functions of company that are required to be
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perform by manpower. In order to attain set goals and objectives of company, manager ensures
to provide proper training to their workforce so that their performance can be enhanced and get
learning about how to use new technology effectively.
Availability of financial resources:
For smooth operations and functions of business, it is very essential that firm have
adequate amount of finance (Antoldi, Cerrato and Depperu, 2012). This will enables manager to
run day to day operations in an effective and efficient manner and also assist in completion of
work on time. All the financial statements such as balance sheet, cash flow, fund flow, profit and
loss accounts, trading account etc. should be managed in proper way as it assist in determining
financial position of company.
Skilled and competent human resource:
The contribution of employees in growth and success of firm is very high as without
them no operations and activities of company can be run in proper and systematic manner. So, it
is highly essential for Unicorn Grocery to have skilled and competent manpower as it helps in
improving productivity and profits of business and ensures successful attainment of set targets
and objectives of company.
M1 Application of relevant tools and techniques to plan and allocate resource
In order to plan and allocate resources, the relevant tools and techniques that are
implemented by manager of Unicorn Grocery in analytical and structured manner are as follows:
Critical path analysis: It is the approach that is utilized by company in order to
determine beginning and finishing time of an activity. It helps the company in increasing
effectiveness and enhancing performance of enterprise as well as its manpower.
Gantt chart: It refers as a visual view that illustrates about tasks scheduled over time. It
is used by company for planning projects and is useful way of demonstrating what work is to be
done or scheduled to do on a particular day (Assarlind, 2014). Application of this tool helps in
providing accurate information related to activities of project.
M2 Significance of planning and allocating resources
Effective planning as well as proper allocation of resources helps in attaining
predetermined objectives and targets of company. It is very essential in terms of high growth and
constant development of firm. Appropriate planning and resource allocation helps managers of
Unicorn Grocery in completion of tasks and activity on specified time and also increases the
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efficiency of operations. It also ensures proper utilization of resources in cost effective and
efficient way and maximizes productivity as well as profitability of company.
D1 Application of appropriate resources to depict link between attainment of business objectives
and resource allocation
As per the view point of Bouchard and Basso, 2011, application of appropriate resources
helps company in developing effective goods and services. Objectives of business enterprise and
allocation of resources are highly interlinked with each other as it will assist in enhancing
effectiveness of business operations. If resources are assigned in proper way for each activity
then it helps in completing tasks on time and attaining goals and objectives of company in
successful manner. In Unicorn Grocery, managers ensures to allocate appropriate resources for
particular task so that it can be performed in proper way and completed on time which in turn
results in increasing productivity (Calvo-Mora and et. al., 2016).
TASK 2
P2 Evaluation of various customer relationship management process
Customer relationship management refers to an approach in which interaction of firm
with its potential customers is manage. Utilization of this process helps management of company
in maintaining strong relationship with its target audience. In this, administrators have the
responsibility to give precise data or information to the clients about product process and
services of business and numerous other fundamental incline. All these are exceedingly support
them to boost dependability of customers towards organization. In this organization utilized
distinctive sort of correspondence channel for get-together pertinent data through email, social
locales and numerous other helpful procedures. Procedure of client relationship administration is
defined as follows:
Client portfolio investigation: It is a first stage, in this part of administrator is to
distinguish the sort of clients whose are most beneficial for them (Eppinger and Vladova, 2013).
Client closeness: It is a powerful procedure of gaining comfortable with the every single
purchasers inside the endeavour's intended interest group base. In this director are capable to
give successful administrations and items to their clients according to its needs and needs. In this
manner, it help the Unicorn Grocery to keep enduring connection with clients.
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Network development: It alludes to the assurance and usage of better and strong
association with business, system and people that are profitable to the advance in rendering
better administrations to clients. These kind of relationship will consider outside accomplices
specifically financial specialists and providers and inside accomplices likewise i.e. workers.
Value proposition development: In this, information gathered while working or working
on customer closeness (Fatoki, 2014). Chief part of the directors is to perceived target gathering
of people and turn forward and build up a specially designed offer for this crowd.
Client life cycle administration: It is last advance which alludes to the devoted customers
travel from likely client to administrations or item upheld. Overseeing client life cycle needs
structure and tending to process. Accordingly, it is vital for the organization to keep up solid and
powerful connection with clients effortlessly.
P3 The way small business can develop transnationally & its benefits and drawbacks
Transnational sales is determined as a critical perspectives which is fundamental to
Unicorn Grocery to assess profit level. It is the kind of business deals identified with items and
administrations over the world according to the request and needs of clients. Further, it is the part
and duty of Unicorn Grocery to take after various sort of devices on the fundamental of existing
circumstance which are existing in particular nation for increasing most extreme measure of
capital and make solid position at commercial centre. These sort of systems are connected by the
retail location keeping in mind the end goal to serve staple things. In case, if firm expand its
business activities & operations at new places, an effective plan needs to be prepare by company.
An appropriate plan provides directions to manager for their future course of action to
expand their business at global level (Guarda and et. al., 2013). It is basic that Unicorn Grocery
serve the items and administrations to clients at reasonable cost. A wide range of organization
identified with exercises and capacities is important in developing business activities adequately.
There are couple of downsides and points of interest which are seen through concern by
developing business tasks and capacities which are defined as follows:
Benefits Drawbacks
New customers: The major advantage of
expanding business transnationally is increase
in number of customers. In Unicorn Grocery,
Financial challenges: In expanding business
activities transnationally, huge investment is
required by company which is the biggest
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business expansion helps the company in
attracting and retaining new consumers. It
results in creation of large client base to attain
high profitability over time.
challenge for it.
Economies of scale: Business expansion often
leads to high risk and decline potential of poor
decision or product damaging business.
Operating in various markets allow firm to
spread cost of doing business activities across
more markets. It decreases cost of doing
business on per customer basis which results in
improving profits.
Employee turnover: As the business expand,
need of training and hiring is increase because
skills of manpower do not grow with company.
Failure in evaluating new hires appropriately
leads to increase in employee turnover.
M3 Elements of customer relationship management process
There are a few components of the client relationship administration process which are
defined as underneath:
1. Knowing the market & client needs: It is principle part of the supervisor to distinguish
requirements of the clients and market drifts about the business items and administrations
(Iatridis, Kuznetsov and Whyman, 2016).
2. Get customers loyalty: In this Unicorn Grocery give compelling and quality items and
administrations with thought process to gaining client trust and dedication.
3. Offer development: Under this procedure, administrator of the Unicorn basic supply change
their current merchandise and enterprises according to the necessity of customers which supports
the organization to accomplish long haul objectives and targets.
4. Sustain consumer: To keep up enduring association with clients, there is profoundly
prerequisite is to render diverse administrations including rebates like, buy 1 get one and
numerous other (Krau and et. al., 2013).
M4 Evaluation of potential to develop transnational operations
It alludes as a commitment on organization of Unicorn Grocery with a specific end goal
to outline a compelling arrangement about doing whole exercises and elements of organization at
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worldwide level. With a specific end goal to create exchange activities, there is exceedingly need
of four components which are clarify as underneath:
Information plausibility: It is basic that chairman ought to have precise learning in
regards to snatch appropriate shots which will aid accomplish long haul targets inside
foreordained time frame.
Decision regarding relationship commitment: It is the part of administrator is take a
powerful choice to give merchandise and ventures to the client with intend to extend their
business tasks.
Position of network: For the exact and productive promotion, Unicorn Grocery required
to actualize the significant system at advertise (Moloi, 2013).
Expectation to learn and adapt: It is profoundly expected to the organization to take
after extraordinary and different components for presentation of creative items or
administrations.
D2 Critical evaluation of customer relationship management process
Distinctive endeavours are done by a Unicorn Grocery to make and hold a superior
association with its customers. Certain stage are consider in this technique however mostly this
action is upheld on 4 Cs which is clarify as underneath:
Correlate: In this director arrange different projects or occasions to move and transmit
with group of onlookers. Right off the bat purchasers are welcomed with a specific end goal to
take mind the program.
Combine: It is recognize as a connection amongst clients and association that will
support to expand their business.
Cognize: In this executive apply diverse systems and apparatuses to assemble
information towards the distinctive exercises or elements of business.
Connect: Under this relationship or associated is shaped with supplier, specialists,
purchasers and outsiders (Okello-Obura, 2012).
TASK 3
P4 Produce cash flow forecast showing fixed & variable cost set against income
There are distinct sources of finance which give a superior opportunity to Unicorn
Grocery organization so as to amplify stream of cash for the viability of business tasks and
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exercises. Some sources of finance which are utilized by the organization are defined below:
Hire Purchase: It is fundamental approach which underpins the organization to
mastermind exact measure of the capital from renting property and diverse types of gear to
another individuals. There are sure wellsprings of contract buy to gather legitimate sum
including rent and intrigue.
Bank Loan: It is critical and outside wellsprings of back which help the organization to
assemble precise measure of reserve for their regular routine exercises and capacities. It is
important for the Unicorn Grocery to take whole business credits from indicated bank at settled
loan fee which business require to paid on the every year (Panigrahi and Kumar, 2012).
Equity Finance: It is recognize as an issue of value and inclination shared by means of
Unicorn Grocery to stock trade exchange. It is source that is beneficial of boosting store for long
span.
Planning and anticipating: It is a procedure of making any predications or resources of
future hand-off on the real and future data. It is connected by the undertaking to perceive whole
future patterns. Further, planning characterize as a procedure of actualizing a compelling
arrangement with a specific end goal to spend finance precisely. There are a few procedures
which are trailed by big business for rationale to anticipating and planning, these are defined as
underneath:
Measure moving average: This device is important in inclination of accessible
purchasers according to the real patterns which are existing at showcase.
Time series information or data: It is another strategies which is utilized by the
organization to centers around distinguishing proof of time frame which will expected to finish
indicated ventures (Seo and Chae, 2016).
Balance Sheet, profit and loss account and cash flow statement of Unicorn Grocery are defined
below:
Year 2017 (value in £) 2018 (value in £)
Fixed assets 120 220
Stock 30 45
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Debtors 80 65
Bank 30 35
Total 230 340
Creditors 130 150
Bank overdraft 80 50
Total 670 905
Working capital 30 80
Profit and Loss Account at the year ended
2017 2018
Sales 40 60
Cost of sales 20 17
Gross profit 20 43
Overheads 8 9
Net. profit 12 34
Cash flow Statement
Cash budget for the year
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Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Beginning cash balance 28000 30250 31550 29650 28750
Budgeted cash receipts 13400 37550 64690 92370 118170
Total cash available 41400 67800 96240 122020 146920
Cash distributed
Direct material 1500 1050 1650 1500 1550
Direct labour 1300 660 850 850 680
Overhead 500 650 630 700 670
Selling and distribution 550 750 740 800 760
Total cost use 3850 3110 3870 3850 3660
Cash surplus/ deficit 37550 64690 92370 118170 143260
P5 The way break even analysis could be applied to organisational situation
It is a successful and profitable apparatus which allude to the estimation of component on
which deals are adjusted to income. It is utilized by the association so as to perceive productivity
proportion and execution level. It is helpful and important approach which is connected by
business organization to discover benefit. It is strong in assurance of real deals which needs to
achieve organization through month to month, yearly, quarterly. It is significant when business
make no benefit and no misfortune condition (Zhang and Zhang, 2012).
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