Unit 08 Managing And Running A Sbe (Level 5) ICOn College

Task 1

P1 Discuss the main considerations a small business or social enterprise needs to address when planning and allocating resources to achieve business objectives.

For a business organisation, it is required to analyse organisation's need and requirement to achieve their future aims and objectives in appropriate manner. In this process manager of organisation requires to conduct different monitoring procedure to analyse each and every term in appropriator manner. Ashtons is a small scale organisation and for them it is required to identify their need while planning and allocating different kind of resources to achieve their organisation's goals properly. However, company is a very small but still engaged in developing the society also by constructing beautiful buildings. There are different requirement of organisation is given below as -

Goals, objectives and vision- For Ashtons, it is require to identify their future goals and objective that they want to achieve in future (Bridge and O'Neill, 2012). In this process they require to analyse their working areas and number of candidate who can easily get their services at a specific time period. These activities help them to identify their working procedure to making future vision properly. For a business organisation it is require to create their future objectives and goals to motivate their employees toward this. Through this, management of firm can easily create effectiveness in their organisation to achieve them properly.

Financial resources – For a business organisation, it is require to collect appropriate funds that help them to implement operational and functional activities in appropriate manner. These resources require to carry out in firm to attain their future objectives properly. These financial sources are used as a assets of firm that can be capital, funds, bank loans and others services that organisation can borrow from different financial institutions. Through this Ashtons can easily implement effective activities in their business to achieve future objectives.

Staff members and their skills – Management of Ashtons requires to analyse skills and working approaches of their staff member to provide them appropriate responsibilities and tasks as well. Through this they easily provide effective services to their clients as per their requirement and need (Burns, 2016). For a business organisation it is require to examine their staff members strength that help them to grab different challenges from target market. All these activities would be beneficial for Ashtons to achieve their future objectives in exact manner.

Apart from this, some of the major factors which needs to be consider while planning and allocating resources for an organisation is discussed as follows-

• Funds- Finance is a most indispensable aspect for small business and social enterprises because all the activities are depend upon sufficient capital. Along with this, company can easily attained their goals and objectives in a defined time frame by allocating all the resources. Capital is necessary for Ashstons because it helps in constructing beautiful interior and exterior of houses by affording expensive raw materials.
• Workforce- Human resource are responsible for accomplishing business activities and managing all the operations. Thus, management of labours is also requisite for Ashtons for encouraging social services which is provided by selected firm. For example; designing of impressive business proposal is done by staff members only or skilled manager.

M1 Tools and techniques in a structured and analytical way

In a business firm, it is require to analyse effectiveness of different tools and techniques that helps to allocate different resources in their organisation. Through this management of firm can easily analyse firm's productivity that helps to achieve their future objectives and goals as well. For a analytical analysis, Ashtons can use Gantt chart and work break down activities to examine different kind of organisational activities in a graphical representation. Through this, management of organisation can analyse different task to manage them in appropriate manner. It can be uses as blueprint of firm. Basically, company needs to follow suitable method for overcoming distinct issues such as; forecasting of future requirement of funds, comparison of actual performance and project one, proper management, proper utilization of resources and so on. Along with this, distribution of work load between several employees supports in reducing the stress level as well as aids in maximizing the productivity. However, Ashtons is really small business who is engaged in constructing qualitative buildings with the help of various modern tools and techniques. Thus, it is essential to focus on major resources for managing business operations in much better manner.

M2 Importance of planning and allocating resources

In a firm it is require to allocate different resources properly that helps to achieve their future objectives in appropriate manner (Chauma, 2017). These resources require to utilise in exact manner. For this management of Ashtons have to build a impactful strategy analyse working approaches of their worker to allocate different task to them as per their working skills and capacity. Through this they can easily provide their exact and quality services to different clients as per their requirement and need. All these things are very beneficial that implement effectiveness in business procedure and operational approaches as well.

Some of the major benefits and factors which shows that planning is really significant for Ashtons company are discussed as follows:-

• Planning gives proper direction and path to the employees and employer in an organisation. Planning in advance will provide unity in direction and goals of an individual and the organisation as whole.
• Advancement planning will provide coordination amongst the staff and their work. Along with this, it helps selected firm to clear the thought and maintains the smooth working environment.
• With better and well executed planning the organisation can keep good control over the use of resources like human resources, raw material, time and other resources.
• Planning depicts the deviation between the actual and standard work done which helps in taking measurable actions and more efficient planning. It also helps in achieving desired results.

D1 Critically analyse the application of appropriate resources to demonstrate

According to Cojoacă, (2017) a business organisation require to make efficient planning and strategy for allocating different resources in appropriate manner. These activities helps to utilise manpower and resources in exact manner. Through this employee of firm can easily provide appropriate household services to their target customers. Main objective of Ashtons is to provide effective services to individuals as per their requirement these activities helps to provide them higher satisfaction. Through this they can easily achieve organisation's future objective and goal as well. So the strategy of resources allocation is provide effective achievement in future to a firm.

Ashton firm required to manage its available resources and appropriate utilisation of that resources so that maximum outcomes can be get. Manager always ensured about their required resources, tools and equipments and allocate them with more effective manner so that company can achieve sustainability. In this consider proper use of construction methods and procedures which support in creating strong buildings as well as complete projects with well manner. There are defined some necessary resources such as adequate finance, human resource, suppliers for procurements, materials, tools and many more equipments as well. These are essential in completing any contracts or project with quality manner that facilitates in creating good image of organisation among competitors in better ways.

Task 2

P2 Explain and evaluate different processes of customer relationship management for a small business or social enterprise.

It is require to build strong relation with their target customers to getting higher growth and income as well. In this procedure firm analyse different kind of aspects about their customers to provide the higher satisfaction through effective services. These kind of activities helps to build long term relations with target audience to getting higher benefits easily. There is a appropriate process of customer relationship management are given below as -

Analyse customers value – For Ashtons, it is require to analyse values of customers in their firm. Through this they can easily implement appropriate planning and strategic process in organisational activities. Main objective of this procedure is to analyse client's demand and their requirement need to provide them effective and desired services. For this management of Ashtons require to build strong planning to achieve their future objectives (Drucker, 2012).

Execution of effective communication channels – To build a strong customers relation, Ashtons require top use effective communication channel that help to transfer information and messages in exact manner. In this procedure, management of firm require to analyse their employees communication skill to enhance them in properly. A impactful strategy always helps to achieve future objectives of firm. As this a impactful communication helps to build strong relation with target audience to getting long term benefits on the behalf of quality services.

Build long term relations - Ashtons is a consultancy firm that provide appropriate direction and suggestion to their clients as per their requirement. For them, it is require to use different kind of strategy that helps to solve clients issues and problems. Through this services they can easily build long term relation with them. These activities provide effectiveness to achieve future goals and objectives easily.

Customers life cycle management – This process is based on customer's potential toward organisation's services. It is based on customer's relationship and loyalty toward the firm. This managing cycle require a effective planning and strategy to manage long term relations with company. For a small scale organisation as Ashtons, it is require to to create customer life cycle to attain their vision and long term goals as well (Durst and Runar Edvardsson, 2012).

Customers are really indispensable for company success because products are finally consumed by them only. Thus, it is essential to focus on their management by implementing various strategies and policies. For example; prepare complaints box for understanding their problems, to maintain positive relations with clients and so on. All this happen by using modern tools like; online connection is useful for Ashtons organization because it helps in creating long term relations with consumers. Basically, today's generation is only connected with internet things which shows an appropriate path for grabbing attention of clients.

P3 Explain and evaluate different processes of customer relationship management for a small business or social enterprise

For a small business organisation, it will be beneficial that they increase business structure in several countries to getting higher benefits. These activities can be beneficial if they serve their quality services in several countries. Ashtons is a services organisation that provide services to their clients as per their requirement. For them it will be beneficial is they implement transnational business activity to expend their business structure. All these activities will helping to maximise firm's profit and future growth as well. Main objective of these activities is to reaching beyond the national boundaries through effective services. There can be different benefits and drawbacks of theses activities such as -

Benefits-

• Lifestyle – These kind of activities help to increase lifestyle of individual's who uses different kind of elements. Transnationally is positively impacts on lifestyle of employees who working under theses organisations. Theses business activities are not only beneficial for employees but also for individual who are the service users of firm.
• Efficiency- Through this procedure, employees of Ashtons can easily build efficiency in their business procedure to getting long term benefits and effectiveness. Through this employees can easily increase their productivity that helps to achieve future target of firm (Durst and Wilhelm, 2012).
• Independence- These kind of procedure helps to build in-dependency for firm who takes help of several organisation to apply different activities in target market. In this process, manager of Ashtons requires to take independent decision for different organisational approaches. Theses activities increase organisational structure and its future growth as well.

Drawbacks

• Financial risk- These kind of activities can make financial risk for organisation which is working on a small level. For Ashtons, it is require to make effective strategy to effectively implement organisational activities in their business procedure. For this manager of firm requires to analyse each and every factor that can affect negatively in business procedure.
• Lengthy- This is a long process for small scale organisation, so for them it is required to make appropriate plan that help to increase business structure in several countries. This is a negative approach of this procedure that it consider a lengthy process in each activity.

M3 Elements of the customer relationship management process

For a small business organisation, it is require to manage customer relationship management process in their organisational approaches. Through this they can easily get long term benefits. Main motive of this process is to build customers loyalty for a particular organisation (Hammer, 2015). These activities would be beneficial for Ashtons while they provide consultancy services to them. For a small scale organisation, it is require to build a strong customers relation chain to getting higher growth and achieve their future objectives as well. Some elements of customer relationship management process can be -

• Analysis of customers values and their demand
• Build strong communication with them
• Resolve issues and problems
• Customers life cycle management

Customer relationship is a crucial concept in a business organisation for the terms of marketing strategy. For this, different division of firm provides their effective contribution in order to create positive relation with target audience. Main objective of this procedure is to earn long term benefits and growth. Therefore, organisation needs to provide effective services to their customers on the basis of their requirement and desire that assist to render higher satisfaction to them easily. The major element of customers relationship management procedure are -

• Social media management
• Call centre servicing
• Market reporting

On the basis of these techniques, a business organisation can identify market and customer's demand to fulfil them effectively.

M4 Potential to develop transnational operations

For Potentially develop transnational operations in organisation, manager of Ashtons require to analyse each and every element effectively to getting positive outcomes of its decisions (Harmon, 2015). In this process management requires to take appropriate decision in the favour of their firm to expend several activities on the bases of transnational operations. Through this they can potentially implement such approaches in their firm. For this firm require to -

• Identify several opportunities
• Customers relationship
• Organisation's position
• Employees performance

Through this they can easily serve quality services to their target customers as per their requirement and need. After implementing them in business, Ashtons can easily rise their business structure properly. Transnational corporations are integrated or unorganized organisation which consist with parent firm and their international affairs. This will help in developing and controlling assets of another company that is generally owned some equity capital share. In Ashton firm, it will play an important role in develop potential global economy with the help of sharing research. By this, firm can easily operate and manage its business functions in the market place. With the assistance of transnational operation, company can gain higher income and profitability in better manner. This will support company in providing work in another country and they are not exploit their workers while doing work.

D2 Process of customer relationship management

As per the words of Jasra and et. al., (2012) customer relation is effective process that use to learn more about customer's, their demand, expectation and need to provide quality services to them. It include appropriate process in which a firm build long term relation with their target customers. Process of customer relationship management can be -

• Portfolio analysis
• Long term relation with target customers
• Networking development
• Values management
• Customers life cycle management

These kind of activities are very beneficial that provide effective customer relation and loyalty to getting long term benefits easily. Ashtons can easily serve their quality services to target audience by such effective process. The procedure of customer relationship management is the activity which involves the use of company to manage and maintain their interaction with existing and new customers in proper manner. Ashton company require to develop various strategies and policies which help them in developing appropriate relation with their buyers by providing goods and services. It is the method which can be used for managing firm relationship with their desired buyers in the market. It will support in making connection with their customers and delivering best quality based products which satisfying their needs or wants.

Task 3

P4 Produce an annual itemised monthly cash flow forecast showing fixed and variable costs set against income for a specific organisation

Balance Sheet, P&L and cash flow statement of Ashtons organisations:

Profit and Loss Account at the year ended

Cash flow Statement

P5 Explain how break- even analysis could be applied to an organisational situation

This is a process of organisation in which calculation is used to analyse appropriate point on which expenses should have to be equal to revenue of firm. This is a financial term of a company that used to identify profitability ratio (Jenkins and et. al., 2013). Through this manager of Ashtons can easily examine appropriate point of firm on which they can not bear any loss. Theses kind of methods are beneficial for services organisations. Break even analysis can be calculate for a tourist sector organisation as -

(Source:- Break Even Analysis, 2018)

P6 Explain how break- even analysis could be applied to an organisational situation.

For a business organisation, it is require to use effective strategy to manage their financial statement in effective manner. This is a large procedure of firm in which they require to hire skilled candidate who manage financial services and sources of firm in appropriate manner. Through this firm can easily analyse all the managing resources of firm such as -

• Profit and loss account – In this statement organisation analyse different profit and loss related terms of organisation. It include organisations income and sales in effective manner. This is provide effectiveness of organisation's financial statements. Through this Ashtons requires to use effective activities to maximise their profit.
• Cash flow statement – This is a financial statement of firm that consider cash flow transaction of firm. It determine cash inflow and outflow transaction of firm that requires to analyse by financial manager of Theses activities helps to maximise organisation's income and revenue as well (Schaper and et. al., 2014).
• Balance sheet – This is final statement of firm in which organisation analyse valuation of their assets and liabilities in the financial month of firm. is is based on final valuation of equality of assets and liabilities as per the final transaction. This is required to mange in appropriate manner to getting desired outcomes of financial statements. Balance sheet is based on final decision of manager and auditor of organisation.

Balance sheet for Ashtons -

Income statement of Ashtons:-

M5 Quantitative and analytical techniques

Quantitative and analytical techniques are very beneficial for a business organisation that helps to provide appropriate information regarding several financial approaches of a firm. In Quantitative technique, Ashtons can use several methods to analyse exact amount of cash transactions. In analytical analysis firm requires to examine past and current data of organisation to make future strategy properly. Through this organisation can easily manage their sources and assets that helps to maximise organisation's profit and growth as well. In ASHTON company, the quantitative method can be used for providing opportunities with the help of mathematical techniques in resolving major issues or problems that occurs in the company. This will help in measuring all employees performance within an organization in better manner. The analytical method can be used for ascertaining the focus on equipment and techniques which assist in analyzing company growth and success.

D3 Break even analysis and cash flow statement

As per the views of Schaper and et. al., (2014) for a business organisation, it is require to manage financial source and statement in appropriate manner to getting effective outcome. Break even analysis and cash flow statement are two different terms of organisation that use to analyse different aspects of firm. Break even analysis is used to analyse a proper point of firm in which they analyse expenses of firm that should have to be equal to organisational revenue. In cash flow statement, firm analyse all the resources that provide transactional cash income to firm. It helps an organization is determining their actual position by analysing total revenue and costs. Basically, Ashtons company is trying to enhance their business operations by gaining maximum competitive advantage. However, Break-even analysis is helping in controlling losses of an organization with the help of various facts or figures.

Task 4

P7 Discuss key legislation and regulations that have implications on small businesses or social enterprises

In every country, the government will develop and make various laws and rules to manage and control all business operations and functions of an organisation. For every company, they are responsible for follow to adhere t such legislation and norms for save the firm from certain legal actions and penalty. The main rules and regulation which directly impact on commercial operation of the company which are described as follows:

• Health and safety act – It is one the major act which directly affect on company functions. Also this act is summarised with health and safety working situations and conditions that should offer to their employees in better manner (Durst and Wilhelm, 2012). It will increasing their motivation and encourage them at the time of performing various activities and functions within an organisation. For doing effective work, risky techniques and methods should be serve and offer to their employee and staff members. It is that act of the Parliament of the united kingdom which define the fundamental structure government for the encouragement, rules and regulations at workplace. The act will define the common responsibility and duty on employees, employers, contractors for used at work place and individual control at work which are managing and controlling different functions in proper manner.
• Data protection act – It is that act which state that organisation remain responsible and liable for save their personal data and information of workers in confidential and private term and does not reveal it before third party. This will reduces the turnover of employees and provides competing benefit to the company in proper manner. This will help in designing to protect and prevent data and collection on computers and conduct paper filing system. This will help in protecting, processing and movement of data and information in better manner. Along with this, a person have some legal rights to control and manage all facts and figures which are used in managing all features of organisation. This act will define the data protection principles which make sure that all related information can be processed and procedures (Drucker, 2012).
• Employment and tax act – It is the act which define that each business operations and functions are liable for paying tax to authorities. An organisation does not pay tax on given time period which are face legal penalty and tough actions in appropriate manner. This will hamper the brand image of company and reducing the products sale. The timing payment of tax help in developing and maintaining the positive brand image in correct manner.

M6 Implications of key legislation and regulations in an organisation

For a business organisation, it is require to implement effective legislation and regulation in their business process that regulated by government of the country. These are based on employment law, equality law, health and safety law as well as labour law that provide effectiveness to small scale organisation. Main objective of theses law is to implement effectiveness in organisation by several law and legislations (Hammer, 2015). There are various kinds of legal rules or regulations which are mandatory for overall organisations to follow in an appropriate manner. It basically include employment laws, equity legislation, health & safety rule and many more. Moreover, these legislations impacts both in positive as well as negative manner on business. In context to Ashtons, they can adopt correct criteria of carrying out various operational activities to run a business which facilitates to avoid legal issues in future and help to improve brand image among people and government authorities. At the other hand, several rules of country do not provide permission to grab certain opportunities which may results into better growth of company.

D4 Regulations and legislations that impact on small business

For a small scale organisation, it is required to implement effective legislation to build positiveness in their organisational procedure. Through this firm get effectiveness in their several treading services. Main motive of these things is to expend several business approachers and treading process by Potential to develop transnational operations (Jasra and et. al., 2012).

• Business licensing- To maintain the fluency of work and smooth working environment it is really necessary to register and get licensed business for a small organisation. This registration allow the organisation to create and use the name for branding they want. This registration also helps to inform the government about your business you are running under them.
• Fair and equal labour laws- This allow all the employees of same level and position to get equal rights and remuneration despite of their caste colour nationality and community.
• Privacy and data security- After 2014, it becomes more important for every business to protect and safeguard their data. Before this it was never too important to safeguard the data but because of increasing cyber crime and frauds and also misuse of technology it is important to protect the needful data and information for any company.

Conclusion

As per the above assignment report it has been summarised that for small scale organisation requires to use effective and impactful strategy in their business process to getting long term benefits easily. Through this they can easily create their own market image and share at a target location. This project report is based on Ashtons which is a small scale organisation which was founded in the year of 2007. This organisation provides consultancy and recruitment services to several candidates. This project represent different financial statement of firm and some further analysis as well.

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