As the backbone of an economy, sentiment of small businesses is an important barometer of wider feelings between British firms. SME accounted for 99% of overall private sector businesses in 2017 and total employment of these firms was 16.1 million. Small business entrepreneurs has a positive outlook for future business growth in UK economy cause of changing global landscape. In order to ensure forthcoming success, it is essential for administration of SMEs to manage their working activities and tasks in a systematic manner; for this there is required proper strategies and policies (Smit and Watkins, 2012). The present assignment is based upon Carter Lane Coffee House; its a small coffee shop in London which serves a wide variety of eatable products in UK having rich and creamy taste. Present report will make a discussion on the way SME's like this cafe develop transnationally. Through this, readers can understand some implications of break-even analysis in context with small business.
P1) Main considerations a small business or social enterprise needs to run business
Carter Lane Coffee Houseis considered as a small business organisation which serves a wide range of coffee products as well as some varieties of bakery items also. From customer point of view, this is the only cafe in London Street which specialises in making a fabulous Macchiato and home made cakes. Although it is a tiny shop but in terms of service, this firm has delivered a excellent service. It has a lovely and friendly staff who understand easily what a customer needs from them and deliver the same within a little time (Skolud and et. al., 2016). With growing business in UK market, this cafe shop generates numerous job opportunities to those people who are specialised in providing better services to guest. In addition to this, it also give chance to freshers also who cook very well. In order to run business in efficient way, its management is needed to consider on some main factors which help in planning and allocating available resources. These factors are given below: -
- Planning of financial resources – For operating functions of business operations in a smooth manner, it is recommended to employers of Carter Lane Coffee House to ensure about funds or finance available. As for both small and large companies, finance is considered as the main backbone without which they cannot run functions in desired manner. Therefore, management is required to evaluate actual position of business in terms of finance through which appropriate decision can be taken.
- Planning of human resources – While planning and managing resources, manpower in a firm is also taken as main part without which functions cannot be operated (Schaper and et. al., 2014). In this manner, it is essential duty of HR managers of an enterprise to hire proper employees in workplace. For this process, they need to take appropriate methods for judging skills and abilities of staff members so that task of business can be completed in high efficient manner. As taste of customers are changing at rapid rate, so, this firm used to recruit such people who have capabilities to prepare coffee and other products as per taste of them. In this regard, managers used to provide essential training to workers on regular basis to increase skills and abilities of staff.
- Identification of goals and objectives of the firm - Every business owners are needed to set goals and objectives first before opening their outlet. They should set target in such a way that it acquires high demand of customers easily and achievable for employees. In this regard, managers should provide a clear information about vision and mission of company to staff members also (Jenkins and et. al., 2013). This will aid in operating all activities in appropriate manner as well as winning competitive advantage also.
Management of Carter Lane Coffee House used two methods for planning and allocating resources in an appropriate manner. These methods are:-
- Critical path analysis – The method is used to plan entire activities of business in a sequential manner which must be completed on time for achieving desired outcomes in context with future. By analysing each and every step of entire tasks, management can ensure if operations carried out will help in bringing success of company in future. If any kind of issues find out then they can take necessary steps to resolve the same.
- Gantt chart – This is another tool used by managers of small firms to allocate resources. As this kind of chart describes time period of taken by each activity as well as requirement of capital for completing it. Thus, it would help management in taking proper decisions regarding with arrangement of sufficient resources and allocate the same.
In Small business organisations, it is necessary for management to plan available resources and allocate them in a proper manner. It will be helpful in managing resources as well as gaining profitability in a predetermined period of time (Jasra and et. al., 2012). In addition to this, it will also useful in taking appropriate decisions also through which they can support employers in accomplishing set goals and objectives in desired manner. As managers of small firms is tightly fixed with limited period and low budgets, so this allocating resources properly is like completing half part of project in efficient way.
An organisation has operated with different kinds of resources such as capital, manpower, machinery equipments and other. All of such resources have equal importance in terms of obtaining desired outcomes of business. So, it is necessary for management to concern more on way of using elements so that they can be utilised in proper manner as well as meet requirement of