Managing And Running A SBE Paper Level 7

Task 1

P1 Main considerations a small business or social enterprise

Under this, there are several factors which are available in this business environment and affects functions of small firms. Generally these types of factor are come under macro environment and management has no control over them. On the other hand, firm can control all internal or micro factors because they affect on business activities from outside of firm. At the time of developing a better plan, it is essential for firm to consider all these two factors. It will be helpful in attaining the targets or objectives of firm with in specific period of time. Paramount is a small firm and it provides grocery items to consumers in exchange of money. Main objective of this business firm is to offer better quality of grocery products which can satisfy needs of consumers and develop healthy relationship with them (Bridge and O'Neill, 2012). With the help of using effective resources such as staff members, finance, this organisation can achieve its objectives in better manner. In context to this, Paramount requires top be address several factors before allocating effective resources:

Human Resource - It is an integral part of firm and also helpful in finishing every activities with in set time period. The main motive of this department is to develop better policies or strategies and implement them at workplace. Lack of planning affect on products of business sand products are not sell in effective way. This department provides training and development to staff members in addition to increasing their abilities and core competencies. Through this they can perform well and try to achieve organisational objectives in better manner.

Funds Necessity - It is one of the most necessary resources to doing all business activities in a systematic manner. In context to this, it is a responsibility of manager to determine requirements of finance through each department for carrying all activities in systematic manner. If funds will not be arranged in proper manner then in this case all departments of Paramount firm will not able to perform all activities in better manner (Burns, 2016). As Paramount organisation is small size firm and it does not have sufficient funds for perform all activities so there is a requirement to this organisation to arrange and manage funds on the basis of activities. There is a requirement to this firm to interpret financial statements in order to understand regarding income, outflow, inflow, expenses etc. It gives better opportunities by developing policies to remove an unnecessary expenses.

Vision, Mission And Objectives - Under this, there is more affect of vision, objectives and mission of firm related to develop various plans regarding various aspects as well as allocation of different resources on the basis of requirements of consumers. In context to Paramount firm, its main focus on make improvement in quality of goods as well as modern marketing related application techniques for improving sales.

M1 Tools and techniques in a structured and analytical way

There are several tools as well as techniques which aids in allocation of various resources of firm according to actual needs (Chauma, 2017). Some tools which are used through Paramount organisation given below:

Gantt Chart - It is a graphical presentation related to project schedule. This type of bar chart shows begin and complete sated of many components of project which consists milestones, resources and tasks.

Critical Path Analysis - It gives information regarding various paths which are required to finish specific project in specific time period. It assess management of firm to allocate resources whose path takes longest duration.

M2 Importance of planning and allocating resources

Significance of planning is related with resource allocation or effective planning. It is helpful for Paramount organisation to chive its objectives. There are some importance of planning and allocating resources mention below:

• It is helpful in increase growth rate and achieve large market.
• With the help of this, more consumers will be attracted towards Paramount organisation which assess in improving sales as well as profit level (Cojoacă, 2017).
• Provide effective opportunities to business.
• Proper utilisation of resources.

D1 Application of appropriate resources

In this, there is a relation between achieving objectives and resources allocation. In addition to this, lack resources impacts on the working ability as well as more issues which are faced at the time of reaching to set objectives. If in case all necessary resources such as objectives, employees, funds will be management in proper way then it will be easier for firm to attain decided goals of firm.

Task 2

P2 Different processes of customer relationship management

The customer relationship management is helpful for companies to develop the better relatio0nship with consumers and the streamline procedure s that the sales can be enhanced, maximise profitability and improvement in customer service. To achieve success and also develop positive reputation at market place, there is a requirement to develop the healthy or harmonious relationship with consumers by satisfying their demands. It is helpful in gaining competitive advantages at market place in better manner. In addition to this, it is necessary for manager of Paramount organisation to determine all preferences as well as mistakes of consumers by interpret data of last years (Drucker, 2012). It is essential that firm should know about the purchasing behaviour of consumers regarding grocery products regarding cost and quality. At marketplace, there are various methods through which organisation can interact with people and these are newspapers, social media and many others.

Customer relationship management refers to an approach to manage interact of firm with existing consumers. The process of RM includes stratifies or activities which Paramount firm use in order to manage communication with the potential or new customers. The CRM process given below as above:

Consumer Portfolio Analysis - It is a first stages and under this there is a need to analyse consumer base of an organisation and identify types of consumers which can give more profit to firm. It is helpful in defining consumer base.

Customer Intimacy - It refers to procedure of getting the familiar with consumers with company in order to target the consumer base. It is necessary that organisation should interact with consumers in better manner and develop with them a healthy relation. Communication with consumers is effective opportunity to make improvement in an intimacy of consumers and also learn more regarding the target market.

Network Development - IT is determination as well as develop better relationship with firm, people and networks which help in give success to consumers. These types of relationship will consist external partners like for an instance investors and suppliers and on the other hand in internal includes staff members (Durst and Runar Edvardsson, 2012).

Value Proposition Development - Under this stage, firm needs to collect information at the time of working on consumer intimacy. After determine target consumers then there is a requirement to develop value proposition fort them. It will be helpful in creating effective value for firm.

Consumer Life Cycle Management - It refers to ideal journey of consumers from existing to services or product advocate. It is concerned with continuing relationship to maintain better relationship with consumers. Managing cycle needs attention as well as structure to process.

P3 Small business can develop transnationally and determine benefits and drawbacks

Transactional Sales - It consists regarding capacity of the small firm to sell its goods in to the new country as well as cities in order to capture more market share. It is helpful in giving more opportunities related to achieving aims of firm and enhance sales. Under this, there is a requirement to management to adopt various techniques which assess in expand its activities in to the new market place. It gives better opportunities to Paramount business firms to develop strong brand image at competitive market.

In order to attract consumers, there is a requirement to Paramount organisation to focus on cost as well as quality of products (Hammer, 2015). Price and quality both are the necessary factors which help in achieve competitive benefits in business as well as its functions. Some advantages and drawbacks related to business expansion.

Benefits

Independence - There is a right to management of Paramount organisation to take effective decisions concerned with development of business related operations in other countries without consultation.

Efficiency - Under this, small business should follow p[roper working framework for increasing effectiveness of process of business. It provides many benefits to firm.

Drawbacks

Time Period - This factor affects on expansion of plan in limited period of time. Under this, there is a need of more time I n order to settle business which is more complex.

Minimum Finance - In order to carrying out all necessary activities, there is a requirement to Paramount firm to arrange funds (Wynarczyk, Piperopoulos and McAdam, 2013). If it will nor be proper then in this case firm will unable to expand its business operations.

The transactional operations is related to conduct the business across boundaries of country. Under this, firm perform its activities at global level by using the different strategies.

There are different transactional expansion strategies with their advantages and disadvantages mention below:

Merger - It is a combination of the two firms which will work together for attaining the specific goal. It is an agreement that unite the two existing companies into one.

Benefits

• Economies of scale is developed through shaping resources.
• Reduce risk of using the innovative techniques for managing the financial risks.

Challenges

• Loss of the experienced employees aside from employees in leadership positions.
• Enhance cost of operations

Strategic Alliance - It is an agreement among two or more than two different parties to pursue set of the agreed on objectives required while remaining the independent firms.

Benefits

• It helps business to take competitive benefits.
• It reduce manufacturing costs and developing new technology

Challenges

• One partner that handle risk must now depend on second partner.
• There is a risk to clash of corporate culture

M3 & D2 Elements of customer relationship management process

Under this, there are several elements which contribute for develop relation which consumers and attaining organisational objectives. Some elements are given below:

Identification Of Existing Market Needs - It is necessary for Paramount organisation to determine the current market needs which will help in produce goods on the basis of needs of consumers. It gives better opportunities to satisfying preferences of consumers.

Modifications In Current Products - Innovation is helpful in making product unique and helpful in attract large number of consumers. It aids in achieving better quality.

Gaining Consumer's Trust - If firm will provide goods according to consumers needs then people will be attracted towards firm. Through this company can develop harmonious relation with consumers by gaining their trust.

M4 Potential to develop transnational operations

An internationalisation model develop its contribution for make improvement in business operations to achieving organisational aims. Four necessary parts are given below:

Abilities To Grab Better Opportunities - Paramount organisation has an ability to use abilities for determination as well as achievement of the future related opportunities (Harmon, 2015).

Network Positioning - There is a need to develop better networks with utilize various advertisement tool.

Relationship Commitment Decision - It offers timely availability of goofs to suppliers as well as consumers for fulfil their needs in effective manner.

Learning Curve - Under this includes new methods related application for make improvement in current specification of goods.

Task 3

P4 Annual itemised monthly cash flow forecast showing fixed and variable costs

Income Sources - Under this, there are several sources which are present for small firm in order to increase funds to make improvement in performance level of organisation. In addition to thus, money is necessary for raising working efficiency or effectiveness by adopting the innovative techniques (Jenkins and et. al., 2013). Basic needs behind having proper amount of money involve debts clearance, working capital, continuity in functions of business etc. External and internal are the two main sources of cash management which are given below:

Internal

Sale of fixed assets: IT consists procedure of increasing funds by selling of current assets for an objective of resolve requirement of finance. This type of sources is called as divestment.

External

IT is classified in to the short term and long term.

Short Terms

Bank loans - It is regarded as an agreement among the bank as well as borrower which requires to be repayment in certain time period in the basis of instalment. This kind of loan carries the interest at fixed amount on annual basis.

Leasing - It is an agreement where the external parties use place in exchange of cost as lease.

Facilities of overdraft - This type of facility is gives through bank and it gives an option to firm top overdrawn money from bank on the basis of requirement.

Long Term

Mortgages and bank loans - It consists procedure of increasing money from the private banks where amount of mortgages as well as assets for particular time period (Jasra and et. al., 2012).

Budgeting And Forecasting

Forecasting is planning regarding future actions which aids to direct staff members for performance of various actions. This planning tool aids management under its attempts in order to cope up with future uncertainty, relying on data from current and past trends. On the other hand, budgeting is procedure of prepare financial statements in detailed manner which cover in set period of time in future. It consists procedure of developing various budgets to set some standards and analyse actual performance. In addition to this, there are several techniques which aid in forecasting as well as planning given below as above:

Identify Moving Average - It gives a better opportunity to understand regarding present changes and trends which are required in potential goods. It aid in fulfil needs of consumers.

Data Of Time Series - It is used for ascertain an information related to time to complete new project (Schaper and et. al., 2014). According to this, firm prepare a budget as well as set some standards for staff members.

Balance sheet, P&L and Cash flow statement of Paramount Business Firm

Balance sheet at the year ended

Profit and Loss Account at the year ended

Cash flow Statement

P5 Break- even analysis could be applied

Break-Even Analysis: It is a necessary tool which aids an organisation to understand about the fact that require to sell large number of units on annually or monthly basis in order to cover cost which are occurred in the actual (Smit and Watkins, 2012). It is helpful in identification margin point of the safety according to cost incurred and also revenue gathered. This tool is adopted or use through Paramount organisation to identify manufactured as well as sales at less to assure that project does not use the minimum money (Weske, 2012). It is calculated in the terms of Net Present Value (NPV). It gives an opportunity to develop policies in order to improve sales and also earn more profit. It is a situation of no profit and no loss.

For achieve success, Paramount organisation requires to make plan regarding sales or costs. Break-even analysis gives an information regarding sales level to cover the costs as well as generate more revenue by minimising waste amount.

For an example - Fixed cost is 18000 and variable cost is 10 per unit and selling price 12 per unit. Then BEP will be:

BEP= Fixed cost/construction margin per unit or product= 18000/(12-10)=9000.

P6 Financial statements for an organisation

Financial statement of firm consists cash flow statement, profit and loss account and also balance sheet (Williams, 2012). All these accounts give various information in context to firm. It will be helpful in give more importance to small firms to ascertain necessary information regarding income, liabilities, expenditure and assets. It is helpful in making the business operations more successful. Information which is collected by an interpretation of all financial statement below as above:

Balance Sheet: It is regarded as statement that gives information about liabilities, shareholders and assets at the time of developing plan (Wynarczyk, Piperopoulos and McAdam, 2013). It is used through an investor to understand related its position as well as reputation of company. Under this, three various segments are mentions which contribute towards understand regarding organisation owns and investment through shareholders.

Cash Flow Statements: Under this, it is segmented in to three different parts such as financing activities, investing activities and cash flow from the operating activities. It gives information related to cash equivalents those are enter and also leave company. It will assess management of Paramount to manage position of cash as well as generate funds to pay liabilities.

Profit And Loss Account: Under this involves summarised information regarding transactions of firm about costs, expenses and revenues which are obtain in financial year. Through an interpretation, firm can generate more profit and minimize unnecessary expenses.

M5 Quantitative and analytical techniques

Under this, there are two kinds of techniques which available to determine Break even analysis. By this method application, firm can attain main advantages by make improvement in financial performance as well as strengths of Paramount organisation. It will be helpful in accomplish objectives or aims with in particular period of time. Break even analysis is calculation of point at which expenses as well as revenues (Ali and Babiker, 2017). It is a useful tool to identifying equal point of firm. It aids in understand regarding sales level which cover fixed cost in better manner.

D3 Cash flow forecast and break-even analysis

Financial statement is very broad term which consists balance-sheet, cash flow statement and profit and loss account. All statement gives information related to various aspects of company in order to gain competitive advantage in activities of business.

Profit And Loss Account - It consist information regarding transaction of firm. It depicts information about actual income as well as expenditure.

Balance-Sheet - It gives an information related to current liabilities and assets. It analyse identification of position.

Cash-Flows Statement - It provides relevant information regarding outflow and inflow of cash. With the help of this, firm can manage cash effectively.

Task 4

P7 Legislation and regulations that have implications on small businesses

Regulations as well as legislations are set through government and these can develop negative as well as positive affect on small organisations. Regulations are helpful in bring effectiveness over business operations (Bridge and O'Neill, 2012). Government developed some rules and different legislation which require to follow through social and small business enterprise. It will help in conducting the business in a legal manner and firm will not face ANY kind of issues. There are different legislation developed through government and company should be apply them in its business. Here are some legislations given which are followed through Paramount firm:

Tax And Employment Act: It brings an obligation on management in context to pay tax on proper time period. It also gives better opportunity to take government support to perform various activities in an effective or significant manner. With the help of this, image of an organisation will be improved.

Health And Safety Act 1974: This act is helpful in protect health of staff members in an organisation. It is a primary responsibility of any firm to secure health of employees. Firm should adopt as well as implement all necessary safety measures. Regarding machineries, manager of Paramount organisation provides t6raining to employees because the chances of accidents will be minimized.

Data Protection Act: On the basis of this act, it is a primary responsibility of firm to protect right, data or necessary information of consumers or staff members secure. In addition to this, Paramount organisation does not give permission to employees to take any information without the permission of manager (Drucker, 2012). It is helpful in gaining trust of employees along with conusmers.

M6 Implications of key legislation and regulations

Under this, there is more implications of regulations or rules of firm given below as above:

Positive Impact - If all rules are followed through organisation then it will gives an effective opportunities for management in order to gain trust of society as well as staff members. It will be helpful in improving working efficiency and also develop better brand image.

Negative Impact - IF in case all regulations are not followed in proper manner then in this case it will develop negative affect on profit level as well as sales of Paramount firm.

D4 Key legislation and regulations that affect small businesses

It is necessary for every business firm is to follow all the regulations as well as legal system which are developed through government of country (Wynarczyk, Piperopoulos and McAdam, 2013). It is helpful in increasing effectiveness of operations and achieving aims of firm with in specific period of time.

Conclusion

From above given report it has been concluded that Paramount is small size organisation and its main focus on using necessary resources at the time of conducting activities. It will be helpful in achieving more advantages in an effective way. Under given report studied about break even analysis which can be applied to situation of firm. Customer relationship management is necessary for firm to gain competitive advantage. In mention assignment studied about process of Customer Relationship Management for social or small enterprise.

References

• 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).

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