This assessment will cover questions which are mentioned thereunder:
- Investigate a range of resources required to launch a new venture in Jack's.
- Assess the skills and capabilities required in Jack's and how these might be acquired or developed.
- Explain and justify appropriate promotional activities to support Jack's
- suggest an appropriate legal form for Jack's and compile a budget for launch.
In the marketplace, there are many firms who wants to earn huge customer base through providing them best services. There are various activities such as innovating new products, implementing a good culture in the workplace etc. With the help of this, owner can manage and run their business activities in effective manner. Small organisations are operating their business at small scale so that, they have to face various challenges from factors of business environment. The chosen organisation for this report is Jack's that is a supermarket and based in London. It is providing services to the people of UK with its 8 stores. This assignment will discuss about the resources and customer relationship management which are needed for firm in achieving the business objectives. Merits and demerits of transnational business will also cover in this report. A cash flow statement with fixed and variable cost, Break-even analysis and budget for the current financial year will also create in this report.
P1 The main consideration to a small business needs to address when planning and allocating resources to achieve objectives.
Introduction of company - The jack's supermarket was founded in 2017. The founder of the company, Jack Cohen opens their first store in Chatteris on 20 September 2017 and now they are operating 8 stores in UK. They are providing 1800 products in their stores such as cad bury, Marmite etc.
Resource allocation is defined as a process in which an organisation manages are allocate their assets according to the needs and requisitions of their departments. It also includes management of tangible assets such as equipments so that, organisation can better use of assets with proper capital (Argaiz, 2011). It is very essential to every organisation to allocating resources so that, they can make suitable strategies for managing their assets and liabilities in a given time period. There are some elements which are needed to be addressed by managers of Jack's supermarket at the time of their planning and allocating resources. The elements are explained as under:
Employees and skills - Employees are valuable assets of a firm. Therefore, HR manager have a responsibility to provide effective training to them so that, essential skills will be developed in them. Therefore, HR department is the essential part of organisation which provides the duties to employees as per their abilities. It also provide support to firm in achieving their objectives in allotted time period (Barth, Dvorak and et. al., 2013).
Vision,goals and objectives- It is an essential part of an organisation which is important to define all the employees due to which they understand their responsibilities and perform effectively on the business activities. It gave an opportunity to the manager of Jack's supermarket so that, they can get effective outcomes from their employees. Through this, employees will be perform on the given task in better way due to which, organisation can achieve competitive advantage in marketplace. In the context of Jack's supermarket, they have to provide training programmes for their employees so that, they will able in effectively use advance techniques which will helpful for employees in improving their efficiency in small time period.
Financial resources- Without this element any organisation can't perform their functional activities. So that, it is considered as the backbone of the firm. Inappropriate funds gave negative impact on the operational activities of firm. As it is a new player, so management of Jack's supermarket have to manage funds in effective manner. For this, they have to manage their income and expenditure and also oversee the financial accounts of firm such as P&L, cash flow etc. with the help of these accounts, management can take effective decisions and improves their financial performance for future period (Bergh, Thorgren and Wincent, 2011).
M1 Different techniques and tools in a analytical and structure way to plan resources
There are two techniques which can be adopted by the managers of Jack's supermarket in order to make effective plans and allocating resources, They are given as under:
- Gantt chart – This is similar to a bar chart, it provides information which is essential for the project schedule. It assists managers in estimating time period in which they can complete the project. It also improves the ability and skills of employees so that, they can better perform and complete their assigned tasks in given time period. It helps organisation in making an impressive business structure due to which the internal strength of organisation is increased.
- Critical path analysis – it is also an effective tool which can be used by the management of Jack's supermarket. It helps organisation in determination of various paths which are required to be achieved for completing the project. In this, management have to take longest path with a long time structure so that, they can take better results from their employees for a long time in future (Bititci, 2016).
M2 Importance of planning and allocating resources
Management of Jack's supermarket has collecting various benefits which are given as under:
It helps them in taking profitable results in more impressive manner.
- Through this, organisation maximises their internal strength due to which, they are performing their operational activities in systematic way.
- Skills of employees are increased
- With the help of this, management is more able to utilise resources in optimum manner.
D1 critical analysis the application of appropriate resources
Different type of resources are needed by the organisation at the time of performing business activities (Bobillo, Rodríguez-Sanz and Tejerina-Gaite, 2014). The names of resources are material, labour, financial resources etc. These resources help organisation in competing with their rivals at marketplace and attaining business objectives successfully.
P2 Different process of customer relationship management for small business
Customer relationship management – It is an effective system of management that includes ability of organisation for making interaction with old and new customers. For making better relations with customers, Management of Jack's supermarket can use the history of data analysis regarding customers through focusing on their behaviour and preferences. It helps them in fulfilling the needs of customer due to which, organisation can able in generating more profitability in near future (Boni, Weingart and Todorova, 2014). It also assists the managers in knowing the needs of different customers and providing products as per their requirements it will help them in making a good image of firm in the mind of customers. Under this system, data is gathered through various communication channels such as telephone, email, message, chats etc.
Process of customer relationship management (CRM)
Assessment of customer value- It is the major part of the process in which, management maintains better relations with their customers. It gave the duty to managers for determining the needs and requirements of customers along with their preferences. It is the best way of collecting information from the customers about the offerings of organisation. It also provides helps to management in analysing the present market trends. Through it, managers can effectively take feedbacks and reviews of their customers about the services of organisation. With the help of this, managers can know about the weak areas of firm and they can take effective decisions for improving it. All these activities assist organisation in implementing best practices through which, customers will satisfies with offerings of organisation and their trust and loyalty will be build towards the firm (Durst and Wilhelm, 2012).
Implementation of effective communication channels – In order to create better relations with customers, It is very essential for the Jack's supermarket to adopt impressive communication channels. It will helpful in grabbing latest information of market trends and they will able in competing their rivals at marketplace. There are various channels of communication such as social media, website of organisation, voicemail etc. which can help them in taking competitive advantage in the market.
Role of Email and digital marketing for effective relation- It is also an effective way which gave current information to the managers of organisation. Through this, management can evaluate their position at marketplace and adopts different type of programmes which will help them in attracting large number of customers at their stores. With adoption of digital marketing, employees of Jack's supermarket can provide better facilities to their customers. This method helps in spreading awareness in the customers due to which, organisation will attain large number of customers at their stores.
P3 Development of small business as transnationally and its benefits and drawbacks
Transnational sales – this is an essential method which assists the management of organisation in analysing the profitability. It is related with the sale of products and services of the firm across the world. It is a responsibility of organisation to adopting various type of tools as per the situation of marketplace therefore, they can earn profit in different areas and develop their brand image in new locations. For attracting a large number of customers in a new market, organisation have to provide benefits to them so that, they will build relations with new customers for a long time.
For this, employees have to provide their maximum contributions due to which, organisation get opportunities for expanding their business at international level. Now, Managers are focuses on providing products at low prices to their customers. All these functions can help organisation in expansion of the business activities (Hisrich, 2012). There are various merits and demerits of expanding business which are explained as follows:
- Independence- In the decision making process, Owners have all rights for taking decisions which are related with the expansion of operational activities of a firm. They have to measure their decisions on the regular basis due to which, they can evaluate the performance level of employees and perform their business activities in effective manner.
- Lifestyle – In a small organisation such as Jack's supermarket, its employees are following a regular working culture due to which, they are aware about errors in the workplace. Therefore, it also gives a huge benefit to management.
- Financial risk – it is an important challenge which is faced by every organisation at the time of expansion (Hopkins, 2011). As Jack's supermarket is a small organisation so, they have not enough funds for expanding their business in other countries.
- Large time period – For taking growth in other countries, organisation have to implement innovations in their products or introducing new services in other markets. It takes a long time period for providing effective outcomes to the firm.
M3 Elements of CRM process
There are some elements of CRM which helps the organisation in creating huge customer base they are as follows:
- Understanding market and customers – For building a huge customer base, organisation have to analyse the market trends and requirements of customers.
- Development of offer- Innovating new products and make changes in current products due to which, organisation can deliver better products at the marketplace.
- Acquire the trust of customers- In order to making effective relations with the customers, organisation have to make trust of their customers towards offerings of the organisation.
- Retain the customers- As Jack's supermarket is a new player so that, they have to provide discounts to their regular customers due to which, they will better retain their customers.
M4 Develop transnational operations with the use of internationalisation model.
Management of Jack's supermarket has some responsibilities to formulating their policies as per the model of internationalisation. This model is divided in four parts which are described as under:
- Knowledge opportunities- Managers have to grab the opportunities in the marketplace due to which, they will achieve their goals in limited time period.
- Relationship commitment decision – In order to expansion of business, management have to provide products and services to their customers on time due to which, they will be able in making good image in the mind-set of customers
- Network positioning- Through establishing good networks at marketplace managers can better positioning their firm in market.
- Learning curve- Managers have to adopting new programmes in order to provide better training to their employees so that, they will better introduce the product in the market (Ludmila and Stanislava, 2015).
D2 Critical evaluation of CRM process at entire stage
The CRM process includes 4Cs which are given as under:
- Correlate- In this, organisation have to make better interaction with other departments due to which, they can better establish relations between different segments.
- Combine- it defines the connection between organisation and their customers.
- Cognize- It is a collection of various information of different activities.
- Connect- Under this, management have to create relations with their suppliers and consumers.
Recommendations: It is important for management to understand the market so, before diving into foreign market, management of Jack's supermarket should conduct market research which assist them in understanding market trends, trade agreements and policies, consumer behaviour and economy of country. They should initially focus on providing products at low prices to their customers so that large market can be captured and long term profitability can be attained.
P4 production of monthly cash flow forecast which is showing fixed and variable cost
Sources of finance
Management of Jack's supermarket can use various sources for raising funds in order to performing their business functions in effective manner. It provides helps to organisation in improving their financial condition some sources of collecting funds are explained as under:
Bank Loan- It is the most important source of finance for the firm. There are various banks which are present in the marketplace and they can provide loan to the Jack's supermarket at low rate of interest which will paid by organisation at annually basis. Such kind of source will be helpful for the organisation to maintain their financial position (Parkin, Fielder and Ashby, 2016).
Equity finance – As the cited organisation has a low experience so they can also take authority from London Stock exchange in order to issuing their shares. It will help organisation in earning capital for a long time period.
Leasing and hire purchase- it is also an important method through which, organisation can increase their funds. In this, they have to provide their unusable property to the required person in terms of rent. Due to which, the financial position of organisation will be improved in the marketplace.
Forecasting and budgeting
Forecasting is an important task which assists finance department of the organisation in making budgets. It provides actual position of the company due to which, management can identify the errors that requires improvement. There are some tools which can be used by the management of Jack's supermarket in order to budgeting and forecasting which are explained as under:
Time series data- this tool is connected with time management it assists management in completing the desired project in effective manner with proper time. It also helps managers in determination of time which is required by them in completing the particular project. Through this, managers of Jack's supermarket focusing on the performance level of their employees due to which, they will achieve their preset objectives in allotted time period.
Calculating a moving average – It is an also effective tool which helps the managers in evaluating brand image of firm at market (Prats, Sosna and Velamuri, 2012). In addition to this, It is used for understanding the current trends of market along with preference of customers. Due to which they can provide better products to their customers in near future.
P5 Application of the concept of break even analysis
Break-even analysis – It is an important tool which can be used by the managers of Jack's supermarket in identification their profitability at marketplace. It also assists management in determining their sales figures on the basis of annual or month. Break even point is a tool that defines the situation in which company have no loss and no profit means a point at which revenue is equal to expenses. It helps managers in creating effective plans and policies due to which, they can sale their product at low prices along with generating huge profit.
In the context of Jack's supermarket, they can use this tool for reducing their wastage and improving performance level of their employees. For calculating BEP there is an example through which, it can have understood in effective manner:
Eg. - Fixed cost of a product is 15000 and variable cost is 5 pound per unit. Selling price of product is 10 pound per unit. BEP can be calculated as
Break Even Point (in units) = Fixed Cost / Contribution per unit
= 15000/ (10-5) = 3000.
Application of break even point on distinctive organisational situation:
To determine point of profitability: If an enterprise is not able to gain revenues then, it is difficult for them survive at marketplace. Therefore, it is must for them to concentrate on revenues so entire expenditures which is done by them will covered. If it is accomplished then, they will be at the stage of no profit no loss.
To price a product or service: It is require for an organisation to have proper understanding regarding break even point.
M5: Quantitative techniques to provide detail of break even and cash flow
Different analytical and quantitative techniques can be used by company to analyse break even points and cash flow statement (Simpson, Padmore and Newman, 2012). It helps company to monitor their spending so that unnecessary part would be eliminated in the next time so to maintain proper working capital. On the other hand break-even assist company to find out the point where organisation would attain no profit and no loss. So that company would modify their strategies so to surpass the break-even point.
D3: Evaluation of financial statement
Financial statement is the important term of finance department which includes various kinds of accounts such as P&L, Balance sheet, cash flow statement etc. all these statements gave different kind of income and expenses of various areas in the organisation. Balance sheet provides information about the financial position of company. As per the balance sheet of Jack's supermarket, it can be said that management of Jack's supermarket have to measure their liabilities in order to taking growth. Profit and loss provide details of profitability of firm. From the given P&L statement in upcoming task, it can be said that organisation is in profitable condition but they have also measure their expenses.
P6: Interpretation of financial statements and contribution in successful management
Financial statement is an essential part of company as it helps them to identify their current status and they can improve their spending so to gain maximum utilisation of resources. Different statements are explained below,
Interpretation – From the Income statement, the net profit of organisation is £64,800 which is good for a new business, it can be said that jack's supermarket is in profitable condition and also utilising their resources in optimum manner. As the organisation is a new player in the marketplace so the management have to consider the challenges of market and use their resources in effective manner.
Interpretation – from the above balance sheet of Jack's supermarket, it has been identified that they have huge liabilities such as 2,28,200 which can be harmful for the organisation in future Their asset condition is good (2,93,000) than their liabilities so that, management of Jack's supermarket have to focus on their liabilities.
P7 Key legislations and regulations which have impact on the small business activities
There are a large number of rules and regulations which are created by government of UK and they have essentially followed by all organisations. Therefore, management of Jack's supermarket have to follow some rules and regulations due to which, they can run their business activities in effective manner (Soriano and Castrogiovanni, 2012). Some of the legislations are briefly explained along with their affect on the activities of Jack's supermarket as follows:
Record keeping act 2006– Through this act, organisation has to maintain proper record of their working employees due to which, manager can better identify the performance level of their employees and organise training programmes for them.
Health and safety act 1974- This act is related with the health and safety of employees at workplace. It gave obligation to the manager of Jack's supermarket to adopt all safety measures in their workplace due to which, they gave an ethical working environment to their employees. With the help of this, employees will perform better on their assigned task.
Tax and employment act 1976– It gave an essential duty to the managers for paying different type of taxes which are existing in the UK. If they will not pay the taxes on time, it will impact negatively on their brand image due to which their profitability and market share will also decreases.
M6 Implications of Key legislations
There are a number of legislations which gave a huge impact on the organisational functions (Watkin and et. al., 2012). It provide opportunities for the management of a firm to consider essential issues such as health and safety of workers, important information of firm. It helps them in providing support to the nation's government and society and also assists in running business operations smoothly.
D4 Key regulations affected on small business
Organisation has to follow different kind of regulations at the time of performing business activities. The health and safety rules are providing helps to management in supporting organisation to achieve future growth and success in competitive market. at doing different kind of functions at the workplace. It also provide support to employees due to which, they gave maximum contribution towards achievement of organisational goals and objectives within pre-determined time period.
It can be concluded from the above report that CRM is an important part of the small organisation such as Jack's supermarket for increasing their customer base in the marketplace. It also helps them in giving tough competition to their rivals. Effective planning is very essential because through it organisation can easily identify their resources. There are many legislations which are created by the government of UK it is an obligation for managers to follow such rules due to which they can run their business activities in effective manner. Are you required assignment writing service in the UK? Contact our experts.
Managing A Successful Business Project - British Telecoms
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