Managing And Running A Small Business Roehampton University
Managing And Running A Small Business Roehampton University
21 Pages 5212 Words459 Downloads
In an economy, each and every business organisation provide their contribution in development procedure. Small scale enterprises use different kind of strategy for managing their business activities in effective manner (Ali and Babiker, 2017). For this, they are required to analyse their employee's skills and working capacity so as to allocate different responsibilities to them properly. Managing and running in a small business is not an easy task because for this higher authority needs to use impactful strategy to build their own marketing share easily. Management of these organisations requires to study their employee performance on timely bases to maximise firm's productivity easily. This report is based on Ensoft Ltd. which is a small scale business organisation. This firm was established in the year of 1997 and provides their effective services in networking and software technologies. This project represents small business or social enterprise needs, processes of customer relationship management as well as benefits and drawbacks of small business development. At last, it will also determine monthly cash flow forecast showing fixed and variable costs, Break- even analysis, financial statements for an organisation and legislation and regulations that have implications on small businesses.
P1 Main considerations a small business or social enterprise needs
For a business organisation, it is necessary to examine different kind of elements that influence in future growth. Small scale organisations have limited resources that are requires to utilize properly to getting maximum profitability. Ensoft limited is a small scale enterprise that provide networking and technological services to their customers (Bridge and O'Neill, 2012). For them, it is requiring to manage their operational and functional activity properly to getting desired outcomes. These business firms require to analyse their future need as -
Create Goals and objectives – Manager of Ensoft Ltd. Require to create organisational goals and objective effectively that helps to provide desired success easily. This is a one most important procedure in which higher authorities analyse their funds and resources that to maximise organisational share in target market. These business activities and approaches helps to motivate employees toward future targets to achieve them in exact manner. Introducing organisation's goals and objective is most important procedure in a firm.
Managing Financial resources – These kind of activities help to manage organisation's capital and fund properly so as to utilize them in appropriate manner. These approaches has a major impact on small scale organisation because they require to analyse several sources for getting appropriate fund to managing business activities in effective manner. In this process banks, financial institutions and stakeholder provide their own contribution for managing appropriate fund for organisation.
Analyse Staff members and their skills – Management of Ensoft requires to analyse their employee’s skills and their working performance to allocate appropriate responsibilities to them. Through this, they can easily maximise organisation's productivity and future growth as well. After analysing these skill, they can provide proper and impactful training to them as per the basis of organisation's requirement and need (Burns, 2016). Through this, manager of Ensoft can easily enhance interpersonal skills of their employees and their working capacity also.
Analyse resources and funds – In a small scale organisation, numbers of resources and funds can be consistently low so for this; employee of organisation is required to utilize them in appropriate manner to getting maximum satisfaction. Through this, they can easily maximise organisation's marketing values and goodwill.
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M1 Apply relevant tools and techniques in a structured and analytical way to plan and allocate resources in an organisational context
For a small scale organisation, it is required to manage tool and resources in appropriate way to getting desired outcomes easily. All these business approaches aid to provide higher success and growth. In this procedure, management of Ensoft require to manage their operational and functional activities properly to enhance firms marketing values. For this, firm requires to use work break down structure to divide several task to their employees as per the bases of their skills and capacity. Person oriented training techniques of Ensoft Ltd can also maximise their employee’s productivity and interpersonal skill to face several challenges easily.
M2 Assess the importance of planning and allocating resources to achieve the business objectives
Ensoft Ltd is small scale enterprise in which management staff and manager require to create impactful strategy that helps to allocating resources properly. All these activities help to maximise firm's growth and income (Chauma, 2017). For a small scale organisation, it is important to utilize their resources and funds properly to create positive image in front of target audience. For this they can use appropriate planning process for implementing effectiveness in business approaches. Before allocating resources and responsibilities to employees, firm requires to analyse their skills and ability to perform effectively in each situation. Through this firm can easily face different challenges that provide several opportunities to them.
D1 Critically analyse the application of appropriate resources to demonstrate links between resource allocation and achievement of business objectives
According to Cojoacă, (2017) availability of resources include three different steps as what are the available resources, when they can available for firm and different condition of availability. For this firm require to analyse it utilization process that should have to be impactful and strategic. Ensoft Ltd is a small scale organisation and for them it is require to analyse strength of their employees to allocate appropriate resources to them. For this firm can use several elements as financial planning, forecasting method, external orientation planning and strategic management procedure that helps to maximise firm's growth and income as well.
P2 Various processes of customer relationship management
In a business organisation, customers are play a most important role who are known as their key strength. For this employee of organisation requires to build effective and positive relation with them to getting long term benefits easily. Customers relation management is an organisational process that drives to earn maximum profitability on the bases of their demand and need as well. For this employees of Ensoft requires to understand their expectation to provide them quality services appropriately. There is process of customer’s relationship management is given below -
Analyse customers value – For employees of Ensoft Ltd, it is requiring to understand values of customers and their requirement to provide effective and quality services to them easily. Customers are the last buyer of products who helps to maximise firm's growth and sale through their purchasing skill (Drucker, 2012). This procedure helps to attain future objectives and targets for CRM procedure. Ensoft Ltd is small scale organisation and for them it is require to analyse values and effectiveness of their customers to maximise their sales and revenues as well.
Execution of effective communication channels – In a business organisation effective and impactful communication play most important role to build strong relationship with target customers easily. Through this employee can also understand issues and problems of customers and provide them appropriate solution. For this management of Ensoft Ltd requires to analyse their employee’s communication skill to enhance them through effective method and strategy. These kind of organisational approaches aid to maximise sales, customer's and brand loyalty to getting long term benefits.
Build long term relations – For a small scale organisation, it can be beneficial if they focusing to build long term relation with target customers. These kind of strategy can be beneficial for them to getting higher benefits through effective relationship with target audience. For this they require to use appropriate cost effective methods and approaches to capture customers eye positively toward their services (Durst and Runar Edvardsson, 2012). All these activities maximise customer’s values Ensoft Ltd to maximise their growth and sales as well. For create long term relation with audience, organisation required to provide them quality products and services as per the bases of their demand and need as well.
Customers life cycle management – This process helps to analyse firm's potential customers who believe in their products and services. Through this firm can easily maximise firm's marketing structure by providing quality services to other and new customer to build effective and impactful relation with them. In this process small scale organisation as Ensoft Ltd requires to analyse market and customer's demand to provide them exact services. All these business activities help to provide long term benefits to business through effective and managing strategy.
(Source:- MARTIN, 2015)
From the above diagram, it has been analysed that CRM model is surrounded by various elements such as; customer care, documentation, public relations, effective communication, maintain consumer loyalty and so on. It shows that, this framework is highly effective for company success and aids in creating long term relations with entire society. As a result, company get succeeded in establishing their positive goodwill at marketplace by maintaining positive relations with consumers.
P3 Small business can develop transnationally and benefits and drawbacks
This process basically uses to analyse firm’s potential growth to expend their business structure in different country. Transnationally term basically uses when a firm starts their business activities in other country to maximise their sales and growth as well. Ensoft Ltd is a small business organisation and for them it can be beneficial if they start dealing in other countries (Durst and Wilhelm, 2012). For this firm requires to make impactful strategy to implement such process in their business process positively. This process basically uses to move beyond the national boundaries to maximise firms’ growth and income effectively. This process considers different benefits and drawbacks as -
Efficiency- This procedure helps to increase efficiency of employee to dealing in other countries with impactful strategy. These kind of business procedure helps to maximise organisation's effectiveness through several business procedures. To implement these activities in business, management of Ensoft requires to provide effective training to their employees for enhance their efficiency level easily.
Independence- A small scale organisation always being depends on further financial institutions and their stakeholder. Through transnationally process, a firm can provide their effective services independently in further countries. These kind of business approaches helps to maximise their profit level and growth as well.
Lifestyle – All these business activities maximise lifestyle of customers by providing effective and quality services to them as per the bases of their demand and need as well. This is not only beneficial for customer but also for employee of organisation who wants to enhance their skills and lifestyle as well (Hammer, 2015). Ensoft Ltd is is a small scale business organisation that provides their effective services in networking and software technologies. Through this process they can easily expand organisational approach by providing satisfy services to their target customers.
Long process – Transnationally is a long process that include several type of business approaches. For this, Ensoft requires to analyse their target market where they want to provider their effective services. After analysing target market, they need to examine customers demand and requirement for their own services. In this process they require to build strong strategy and plans to implement their business procedure in those places easily. After all these process they require to analyse business activities and customer’s satisfaction level. So this a long process in which Ensoft requires to spend appropriate fund, time or employee services.
Financial risk- For this process, a small scale organisation requires to collect appropriate fund and capital to spend their effective services easily. This business approach does not provide surety to cover all these funds back in future (Harmon, 2015). So it can consider financial risk for Ensoft Ltd.
M3 Apply and evaluate the elements of the customer relationship management process in relation to achieving business objectives
For a business organisation, it is requiring to use customer’s relationship management process to getting higher benefits. In this process employees of organisation require to understand customers demand and need to provide them quality services easily. Ensoft Ltd is a small scale organisation and for them it is require to build strong relation with their service user to getting long terms benefits easily. This is a large process that include -
Analyse customers demand and requirement
Build effective communication with them
Understand their issues and problems
Customers life cycle management
Getting long term benefits
M4 Evaluate the potential to develop transnational operations using the stage model of internationalisation, assessing both benefits and challenges
In a business organisation, it is requiring to analyse their future objectives and goals that are requires to achieve on exact time period. For this management of Ensoft requires to analyse their customer’s skills and working approaches to provide exact responsibilities to them easily. Transactional operation is a business approach in which an organisation starts their working approach by move beyond the national boundaries to maximise firm’s growth and income effectively. Through this they can easily operate their international services for target customers and services users as well. For this firm require to make effective strategy and plans to implement these kind of approaches in their organisational activities as well.
D2 Critically evaluate the customer relationship management process at all stages and provide recommendations for overcoming challenges of developing transnational operations.
As per the words of Jasra and et. al., (2012) Customers are the last buyer of products and services. For them firm requires to build effective and impactful strategy to getting proper information about their demand and need as well. For this employees of Ensoft requires to understand customer’s issues and problems to resolve them through their effective services. This is an appropriate process that include several elements as -
Examine consumer’s values
Uses proper communication channel
Create appropriate relation
Understand customer’s issues
Provide them effective services and solutions
All these process of customer relationship management helps to maximise organisation's growth for getting long term benefits easily.
Break even analysis is an effective method that uses for production management activities. This is determining an exact point on which total cost and revenues should have to be equal. Through this process, an organisation easily recovers their capital and easily grab lots of opportunities from target market (Jenkins and et. al., 2013). These kind of analysis process are uses to examine total loss and profit in appropriate manner. Break even analysis is most common method which is uses in financial terms of organisation. In small business organisation it can be higher or lower but it is requiring to maintain in effective manner.
sale prices per tourist
Less: Meal charges
Total number of tourist
Total number of profit
(Source- Break Even Analysis, 2018)
From the above diagrammatic representation, it is analysed that situation where company is not losing anything neither gaining then it is said to be break-even point. It means, this position shows the neutral state of an organization. In simple words, fixed and variable cost is equals to each other.
P6 Financial statements for an organisation
For a business organisation, it is require to manage their financial statement in appropriate manner (Schaper and et. al., 2014). Through this they can easily manage all business activities such as profit and losses, income and expenses, cash and fund flow analysis as well as capital and reserve management activities.
Profit and loss account – In this statement organisation manage their all income, expenses, profit and loss related terms. All these terms are helps to manage financial condition of firm in effective manner.
Balance sheet – This is a summary of financial balance of organisation which is used to analyse valuation of assets and liabilities in the year ending. This is known as final statement of firm that describe financial condition of firm.
30 Apr 2013 £
30 Apr 2014 £
30 Apr 2015 £
30 Apr 2016 £
30 Apr 2017 £
Net Current Assets
Net Current Liabilities
Profit & Loss Reserve
From the above financial data, current condition of an organization is fully determined by showing their current assets, liabilities and final profit which is earned by Ensoft Ltd. At the end of the year. Basically, comparison of five year data was explained in the above figures which is showing the change which is identified in the company from 2013 to 2017 data.
M5 Apply appropriate quantitative and analytical techniques to provide an appropriately detailed cash flow forecast and break-even analysis
This is an effective management technique in which firm require to manage their cash flow statement through different business approaches (Schaper and et. al., 2014). Quantitative techniques is uses to provide appropriate information related to financial statement and organisational growth as well. In analytical approach, a business organisation can easily analyse different business tools that helps to manage funds and income properly. In Quantitative approach, Ensoft can easily analyse exact values of cash transaction or in analytical format they examine several data on the bases of past and present states. Through this firm can easily manage cash flow forecast and break-even analysis.
D3 Produce an accurate cash flow forecast and break-even analysis with a critical evaluation of how key financial statements contribute to the successful management of the business.
This is an appropriate procedure in which Ensoft can easily analyse exact point that consider no profit no loss situation for firm. This management process is known as break even analysis. Through this Ensoft can easily manage their resources and funds in exact manner. In cash flow statement, a firm manage their cash transaction that can be outward and inward as well. Through this Ensoft can easily manage rate of their expenses and income related transactions as well. All these business activities help to manage their valuation of assets and liabilities to getting maximum profits and growth as well (Durst and Wilhelm, 2012).
P7 Legislation and regulations that have implications on small businesses
For a small scale organisation, it is requiring to implement different regulation and legislation in their business approaches to crate effectiveness easily. These kind of factors are introducing by government of a country to develop legality in organisational approaches. Main objective of these legislation is to protect a firm from inappropriate legal actions and further punishment. Large number of law affects a business to protect them from illegality and inappropriate optional approaches. There are different rule and regulations are describing that has direct impact on micro business organisations such as -
Minimum wages act – For Ensoft Ltd it is require to provide effective salary and wages to their employee as per the bases of their services and contribution. This is also including some other legislations such as child labour protection and employee’s insurance as well as protection act. As per this law, an organisation should have to pay exact amount and minimum wages to their employees.
Mandatory paid sick leave – For a business organisation, it is requiring to provide appropriate leaves to their labour for their personal issues. These are the right of employee to get sick leaves in their working duration. These kind of organisational activities helps to manage effectiveness in business (Drucker, 2012).
Health and safety act – This is responsibility of higher authority to consider their employees’ health and safety in appropriate manner to provide them several facilities. For this they require to consider different insurance policies for them to consider safety in working duration.
M6 Evaluate the implications of key legislation and regulations in an organisational context
For a business organisation, it is requiring to implement key legislation and regulation to create positivizes easily. These types of terms represent huge challenge in front of target organisation. For this employee of firm requires to understand concept of these laws, its structure and what can be its impact on business. After analysing all those factors, they require to implement these legislations in appropriate manner. Main objective behind these factors is to create legal terms in firm for a country, employees and owner as well. Through this an organisation can easily expand their business structure in several countries.
D4 Critically evaluate key legislation and regulations that affect small businesses or social enterprise organisations, taking future developments and changes into account.
As per the views of Hammer, (2015) legislation and regulation has a major impact on business organisation on direct or indirect way. These laws are used to address civil and human right in a firm. Main objective and motive behind these regulations is to maximise values and effectiveness for a business firm. Regulations and legislations has major impact on small business and these can be -
Minimum wages act
Mandatory paid sick leave
Health and safety act
All these factors and laws are requiring to implement in business process to getting higher benefits and effectiveness as well (Jasra and et. al., 2012).
From the above report it has been summarised that a small; scale organisation requires to use effective methods and strategies to getting desired outcomes of their business approaches. For this they require to analyse several marketing elements to properly understand their customer’s requirement and demand as well. This project is based on Ensoft Ltd. which is a small scale business organisation. This report represents small business or social enterprise needs, processes of customer relationship management, cash flow forecast showing fixed and variable costs, Break- even analysis, Financial statements for an organisation as well as Legislation and regulations that have implications on small businesses.
Ali, N. S. H. M. and Babiker, S. M. E., 2017. Performance Evaluation of Multi-Core Systems using SPEC CPU2006 Benchmark.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small business. Palgrave Macmillan.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chauma, C. N., 2017.The application of project management tools and techniques in ICT SME projects in Western Cape (Doctoral dissertation, Cape Peninsula University of Technology).
Cojoacă, E. Ş. D., 2017. Interoperability of SME Databases from the Project Management Point of View. Informatica Economica. 21(4). pp.15-28.
Drucker, P., 2012. The frontiers of management. Routledge.
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