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Introduction

Small business or enterprise refers to a company which have approx 300 employees. It is very difficult for a owner to run business in effective manner because they have to consider various things. Such as resources, strategies, plans, funds and many others things which is required to managing and running a small business in effective and efficient manner. Organisation taken for this assignment is Rowlinson Knitwear which is incorporated in 1972 and it is a private limited company. They are manufacturer of knitwear and school wear for school going students (Adisa, Abdulraheem and Mordi, 2014). They basically operate there business functions in market of United Kingdom. Topics covered in this assignment are how small business allocate resources and plan things and effectiveness of customers relation. Along with this it explain how small enterprise develop transactionally and cash flow, budget and break-even analysis. It also include some major legislation and regulation which a small business has to follow.

TASK 1

P1. Major considerations a small business needs to address when planning and allocating resources to achieve business objectives

Overview of the Company

Rowlinson Knitwear is a manufacturing cloth manufacture company which is establish in 1972 and they conduct there business operations and function in market of United Kingdom.They generally dealing in apparel and textile production industry in which they manufacture quality school wear and corporate wear (Rowlinson, 2019). There are various planning strategies and allocation of resources which is consider by respective company in order to achieve goal and objectives in effective manner, some major of them are describe below:-

Research: When a company wants to conduct or start there business or enterprise company must conduct research to identify appropriate plans and resources which they will required to full fill objectives and goal in effective manner (Bridge and O'Neill, 2012). So when Rowlinson Knitwear start there operation in manufacturing cloth for kids and corporate peoples. They will conduct research so that they know what is resent trends and requirement of market. By this they able to understand approaches need and demand of customers and according to that they can plan and allocate their resources for achieving goal and objectives.

Determine the purpose of plan: Before starting a business or enterprise it is essential for owner to identify and determine purpose why they want to establish and run business. When a person clear with there purpose they able to plan strategies in effective and appropriate manner. That directly and indirectly help them in managing and running there business in effective manner. When a person is having clear purpose they able to make strategies in appropriate manner according to need and demand of customers.

Identify the resources: When Rowlinson Knitwear is clear with there purpose they able to decide resources and plans in appropriate manner which help them in conducting there operations and functions in appropriate ways (Burns, 2016). So management of respective company identify resources which they are required to manufacture kids school wear and corporate wear. When a company identify there resource requirement they conduct their operations and function is effective and appropriate ways.

Evaluate the human resources: In this management of Rowlinson Knitwear analysis and determine human resources which they required achieve their target and goal in appropriate and effective manner. Such as according to requirement respective company hire and train employees so that they conduct work in effective and quality manner. When employees get train they can do there work or task in quality manner and in effective time.

Promotional activities: When a company decide to start a business they have to do promotional and advertisement so that target market know about product and services. So management of Rowlinson Knitwear promote there products and services so that customers know about them and purchase there products in high quantity.

By conducting all these Rowlinson Knitwear able to operate and function there plans and resources in effective manner and by this they also able to achieve goal and objectives in appropriate and effective manner.

TASK 2

P2. Explain and evaluate different processes of customer relationship management

Customers relationship management is refers to practices, technology and strategies which organization conduct and operate in order to maintain and establish relationship with customers or clients (Chiliya and Roberts-Lombard, 2012). By this company can maintain and retain customers in appropriate and effective manner. For this Rowlinson Knitwear develop and adopt various process or techniques for keeping effective customers relationship which help in maximising profit in appropriate manner. When respective company maintain and establish effective reslation there customers get loyal and purchase there products for fulfilling there needs and demand. For evaluation of this Rowlinson Knitwear adopt techniques which is mentioned below:-

Customer portfolio analysis- By this respective company can able to analysis appropriate group of customers for there business by which they gain maximum profit. Along with this according to this company can decide there target customers (Crane and Matten, 2016). It is important for Rowlinson Knitwear to develop customers portfolio so that they can evaluate and identify customers need and demand. Moreover by it respective company able to design products according to need and current trends.

Customer intimacy- It is knows as process of Customers relationship management by which Rowlinson Knitwear get familiar with their individual customer on which organisation is targeting. In this it is based on how effective company know and understand there customers, habits and other related things like birthday etc. For this respective company take feedback and suggestion with there customers and when they again develop strategies and plans they consider those feedbacks and suggestions to make effective products which attract customers in high rate or ratio.

Value proposition development- In this process company collect information or data related to there target customers. Which help company in creating value proposition for customers. When a company create value for customer it is necessary to also create value for company by which they able to get benefits for business. Such as Rowlinson Knitwear develop proposition values according to there target customers which help them in attaining success and growth in effective and appropriate manner.

Customer life cycle management- It refers to process of continuous journey of customers which include all steps starting from identifying potential customers and end at providing products and services to them in appropriate manner (Fayol, 2016). For conducting this process in effective and appropriate manner human resource manager of Rowlinson Knitwear give there full efforts and attentions. They also develop effective strategies and plans by which it can be done in appropriate and proper manner. Along with this by it company able to handle their customers in appropriate manner and also develop products accordingly. In respective company they develop appropriate strategies by using CRM system and strategy.

P3. Explain how a small business can develop transnationally and determine the benefits and drawbacks

Transnational business refers to activities or business operation which help an other company in carry out there business in international market. By which a company can enhance there sales, profit and customers base which help them in obtaining goal and objectives in effective manner (Hatten, 2015). Through this Rowlinson Knitwear company able to carry out there business operations and function in global and international market. In this management of company invest there assets or funds in international countries and then conduct operations in international marketplace. In this company try to make effective tied with other countries so that they can operate there business in effective manner and make proper profit. A small business or enterprise can adopt traditionally but during this they may face various benefits and drawbacks. Some major of them which is face by respective company is explain below:-

Benefits:

Expansion of business: One of the major advantage of transactional business strategy is that it help in expanding business operations and functions of a company in international market. In other word company able to sell their products and services in world wide market by which they can enhance there profitability ratio and customers bases. By this company can also able to understand different or diverse country culture which help them in design products and services according to there need and demand. In context of respective company by adopting transactional strategy they able to enhance there business in international market in effective and efficient manner.

Adopting innovation: When a company expand their business in international market they able to expand their business by adopting innovative and creative techniques (Herbane, 2013). In this company can adopt innovation and new techniques according to need and demand of customers or public. When Rowlinson Knitwear adopt transactional business strategy they able to adopt new and innovative strategy according to need and demand of customers and population. By adopting new innovation company also able to conduct there operations and function in effective manner.

Deep understanding of culture: When a company expand there business in international market they they able to understand and analysis other country culture in effective and appropriate manner. Which help them in designing products and services according to need, demand and culture that leads to enhancement in profit and customers base. So when respective company adopt traditional business strategies they understand culture of different countries and then they design product and services accordingly. By which they able to design product accordingly which leads to increase in sells and profitability ratio.

Drawbacks:

Complex to implement: When a company decide to implement transactional business strategy they may face various difficulties and problems. This is so because it is complex and difficult to implement in business or company (Karadag, 2015). Due to which manager and leader has to make creative and innovative ideas in order to overcome this.

Implementation is Costly: When a company want to expand there business they have to arrange funds from various resources like bank loan, investments, financial institutes and many more. This is so because for implementation or expanding business in international market required huge funds. So when respective company want to expand in world wide market first they analysis there financial status and if required then they arrange according to requirement. So that they conduct business operations and function in effective and appropriate manner.

When Rowlinson Knitwear decide to adopt transactional business strategy or expand there business they must conduct analysis and evaluation of respective things so that they must develop strategies and plans accordingly. This will help them in operating business operations and functions in effective and efficient form.

TASK 3

P4.An annual itemised monthly cash flow forecast showing fixed and variable costs set against income

Cash flow refer to net amount of cash equivalents and cash which is transfer inside or outside of business operations. It is prepare by a company in order to identify there financial position in market place (R.A and Ullah, 2014). Every organisation estimate and try to enhance there profit as compare to there part year profit. Cash flow statement of Rowlinson Knitwear is given below:-

(Amount in £)

Particulars

January

February

March

April

May

June

Sales

3500

4600

4700

5200

6200

6500

Other income

1500

2500

2600

2650

2000

2200

Total inflows

5000

7100

7300

7850

8200

8700

Cash Outflows

 

 

 

 

 

 

Variable cost:

 

 

 

 

 

 

  Materials

450

500

530

650

740

830

  labour

490

540

580

750

820

940

  Other variable cost

200

250

260

340

420

520

Fixed cost:

 

 

 

 

 

 

  Rent

1000

1000

1000

1000

1000

1000

  Salaries

800

800

800

800

800

800

  Other fixed cost

200

250

250

360

320

320

Net cash flow

1860

3760

3880

3950

4100

4290

Particulars

July

August

September

October

November

December

Total

Sales

8900

14000

18500

20000

21500

24500

138100

Other income

2250

2050

1300

2600

2750

2850

27250

Total inflows

11150

16050

19800

22600

24250

27350

165350

Cash Outflows

 

 

 

 

 

 

 

Variable cost:

 

 

 

 

 

 

 

  Materials

960

1010

1090

1150

1200

1260

10370

  labour

1000

1030

2030

2150

2300

2450

15080

  Other variable cost

550

600

650

700

760

840

6090

Fixed cost:

 

 

 

 

 

 

 

  Rent

1000

1000

1000

1000

1000

1000

12000

  Salaries

800

800

800

800

800

800

9600

  Other fixed cost

320

350

350

350

350

350

3770

Net cash flow

6520

11260

13880

16450

17840

20650

108440

Interpretation- Above given cash flow is from January to December which shows continuous enhancement in profit due to increase in sales. For getting total net cash flow respective company deduct total outflow amount from total inflow amount.

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

  break- even analysis

( Source: BEP Analysis, 2019)

Break even analysis is refers to techniques which is use by production, accountant and management sections. In it total cost of variables and fixed cost are compare with whole revenue of sales through which company can determine volume of sales or production at which point business it where there is no profit and no loss situation arise (Sampaio, Thomas and Font, 2012). By this respective company can identify and analyse quality or number of products and services which a company they have to sell for achieving break even point. Break even analysis which is done by Rowlinson Knitwear are mention

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