The scenario in this report is emphasised on running a small business and understand various concepts associated with team building.
- Understanding regarding fund allocation of Unicorn Grocery in order to achieve overall objectives.
- Evaluation of process of customer relationship management so as to understand benefits and challenges of international aspect.
- Development of cash flow and break even analysis in order to interpret final results for Unicorn Grocery.
- Analysis of regulations for Unicorn Grocery.
Small business firms forms the integral part of any economy as they are the major sources of employment generation to a large percentage of population in a country. Small business refers to those which are owned and operated independently with competitively less investment involved, low risk, less market share and are managed by owners in personalized manner rather than a formalized management structure (Tricker, 2012).
Unicorn Grocery is a grocery store established in Manchester, UK. It was established in 1996 and has set up as one of the leading independent wholefood groceries in the UK with an annual turnover of around £7 million.
This assignment will be explain how small business plans out its resource allocation along with managing its customer relationship management to satisfy the needs and wants of its customers so as to generate higher profits. Further the cash flow statement, budget and break even will be prepared and analysed to evaluate their contribution in successful management of the firm.
TASK 1 P1 Main considerations a small business or social enterprise
For a business to be successful and to commence its operations successfully in long term it requires to adopt a systematic planning approach which involves examining the future business scenario, anticipating future profitability, determining and setting up of objectives and making assessment of financial implication of these activities (Cragg, Caldeira and Ward, 2011). As the availability of resources with small business is limited therefore to generate maximum output and attain higher profits in long term a company has to carefully plan out its allocation.
Unicorn Grocery is a small co- operative grocery store dealing in providing fresh, dried and processed food, beverages and other household, body care and general grocery items. Being a small firm , they have limited financial, Hr and other resources the only scope for the firm to attract customers and capture market share is by providing products and services which fulfil the needs and aspirations of its clients (Yildirim and et al, 2011). The other factors that need to be addressed for planning out the future course of firm's actions are :-
Financial resources – Finance forms the basic and foremost requirement for any business as it needed to carry out each and every activity of an organization so that it can manufacture products and offer services to attain its objectives. The major advantage of operating a small business is that it requires competitively less capital investment making its easy for owner to manage day to day activities of the business smoothly with any interruption or stoppage due to insufficient funds (Winterhalter, Zeschky and Gassmann, 2016). Unicorn Grocery being a co-operative organization manges and arranges its funds by their own and self manages their financial resources i.e. Balance sheet, cash flow statement, Profit and loss account and others which help them to keep a track of funds requirement and to evaluate whether firm is earning profits or losses. There is requirement of £550 in order to make successful expansion of business. Financial resources are required to collect raw material, technology, etc. In current market, technological changes are taking place with rapid speed so it is important for Unicorn grocery to undertake it in order to become competent in industry.
Skills and capabilities of team members – The Employees are considered as the backbone of any organisation as they are they serves as a source of creative and innovative ideas and by utilizing their capabilities a firm is able to achieve its objectives and earn profits. Thus, it is of critical importance for a firm to have an efficient, proficient and dedicated workforce who are committed to give their best efforts for attaining firms goals. Unicorn Grocery being a small business firm needs to hire candidates that proficient in their work so that they can assist the firm to provide customer satisfaction by providing quality products and services, efficiently handling their queries and providing them with viable solutions. For starting new business, there is requirement some technical knowledge, skills, etc. so it is easy to make new and innovative approaches to attract consumers. So there is requirement of legal advisor. HR manager of Unicorn grocery has to maintain dynamic environment at organisation. While framing team, roles and responsibilities are assigned according to their skills and competencies.
Formulating an effective Business Plan:- An efficient business plan helps an organization to ensure that the operations are conducting as per the set guidelines and that everyone in working in same direction for attaining company's goals. As a management tool it also alerts a manager about any deviations or lacking in firm's performance. With the help of business plan it is easy for managers of Unicorn to understand what has to be done and in what time. This makes clear understanding about setting aims and objectives in order to achieve business objectives. Unicorn wants to expand business in Nigeria where scope of grocery store is increasing in current market.
TASK 2 P2 Various processes of customer relationship management
Customer relationship management can be describes as approach by which a company maintains relationship with its present and potential consumers. It includes analysis data information related to the taste, preferences and requirements of customers and then utilizing it while formulating various schemes and offers for consumers and preparing practises, policies, guidelines for organization to deal with them (Brown, 2013). CRM plays a critical role in firm's success and profitability as it serves as an golden opportunity for a firm to attain customer satisfaction, thereby capturing market share.
It is the function of HR department who are responsible for implementing this technique so that a company can retain its present customers and can attract new ones. Unicorn Grocery being a co operative firm their tries to maintain a healthy and cordial relationship with its customers by by providing them with as store providing products of best quality at affordable prices and offering a shopping experience which satisfies customers.
Customer relationship management process:
Assessment of customer value – It involves identifying what are the requirements of a customer by taking feedbacks, asking for suggestions etc. so that company can provide products and services as desired by its clients (Cartwright and Cooper, 2012). This serves as an effective way to retain as well as attracting new consumers by maintaining and enhancing better relationship with them. Unicorn Grocery to maintain its CRM and to assess what the customers thinks and aspires for conducts talks and presentations for people wherein they spread word and awareness about cooperative ownership and alternative business models and to take people reviews, suggestions to know lacking areas of organization and also asking them to join them or give their contribution.
Execution of effective communication channels- To maintain a close relations with its consumers Unicorn Grocery uses various channels of communication from electronic medians like social media, website promotions to physical promotional activities like schools visits where in pupils from local school are invited to visit their shops and attend their tasting session of fresh and organic food items and conduct various activities and discussion focusing on increasing their awareness bout growing plants, eating healthy food and so on.
There are five steps through which customer relationship management can be done in better and effective manner. These steps are discussed as under-
Customer portfolio analysis- This is the first step in which information is collected about consumers. As there is difference in demand of consumers, so it is easy to provide good product and services to consumers.
Customer intimacy- In this step, policies are framed through which consumer get familiar environment and they perform activities in better and relevant manner. This is the step in which information about consumer are collected for providing them satisfied services.
Network development- After collecting information about targeted consumers, there is requirement of strong bond with consumers. When good relations are fared with people, then they are ready to avail services from this Unicorn grocery. While expanding at Nigeria with building relations, it is easy for Unicorn to expand business.
Value proposition development- After analysing customer demand, it is easy for consumers, to understand changes which are taking place in external market. When goods and services are offered according to targeted consumers, then it adds value for growth and development of Unicorn.
Customer life cycle management- At last strategies are framed through which potential consumer will become consumer. This can be done with regular market analysis and making new and innovations in services.
P3 Small business can develop transnationally and benefits and drawbacks
With the faster pace of economic globalization, small business no longer can no longer afford to ignore challenges of international business. Small business been key factor in the development of economy of a nation needs to develop a transnational approach for commencing its business operations worldwide (Olszak and Ziemba, 2012). As small scale business are tend to gaining popularity in global market as they having immense opportunity to grow and develop by amalgamating its managerial skills with latest market trends and technologies. In this aspect, it becomes critically essential for management of these small business units to gather and analyse knowledge about international market scenario, various formalities and legal obligations related and effective ways for global interaction, so as to attract and cater the needs of consumers worldwide.
Licensing – It is a business process in which one company grants permission to the other company to produce its products against fixed payment. If Unicorn grocery uses licensing than they have to give authority to other individuals to manufacture goods on their behalf.
Benefits – If the firm uses licensing than they can make entry into the foreign market easily and can earn large return on investment.
Drawbacks – If Unicorn grocery facilitates licensing than their licensee can be a competitor in future.
Franchising – It is a business arrangement where the franchiser gives right to use its trademark to the franchisee. If Unicorn grocery uses franchising than they can gain brand loyalty.
Benefits – If the organisation uses franchising than they can carry exclusive rights.
Drawbacks – All the profits will be required to be shared on percentage basis with the other party which will reduce the profitability of Unicorn grocery.
Strategic Alliances – It is an agreement where two companies will mutually agrees to share the available resources to achieve a specific goal. If Unicorn grocery uses strategic alliances than they can grow into a new market.
Benefits – If the firm uses strategic alliances than they can provide both short term as well as long term benefits.