Managing and Running a Carter Lane Coffee House

TASK 1

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 business.

TASK 2

P2) Various processes of customer relationship management

As relationship with customers affects business of a company more then it is necessary for management of Carter Lane Coffee House also to concern more on the same. By developing strategies and process help managers in interacting with consumers in a proper way (Harmon, 2015). The concept of customer relationship management assists a firm in keeping strong and healthy relations with target customers. This would help in gaining loyalty of clients as well as their retention for longer profitability high competitive edge can be obtained. In small cafes like Cater Lane, main objective of them is to increase foot of guest in their premises on regular basis. This would help in generating high revenues through which business can be developed in efficient manner. CRM technique aids a firm in judging behaviour of targeted audience which aid help in dealing with them more easily and completing their demand on time. Some major procedures of customer relationship management can be described in the following manner:-

• Customer portfolio analysis – This is known as first stage of CRM process which helps in make proper classification of customers into different groups on the basis of similar characteristics i.e. age, sex, gender, buying power, status and more. This would aids a firm in analysing which group they need to be targeted so that strategies can be made according to meet their demand (Stanciu, 2015).
• Customer intimacy - It is the second stage which encompasses with how to get familiar with each customer of targeted group. Generally effectiveness of strategies built by management of a company depend upon the way they understand need of customers as well as deliver services to them. It includes how much customers can pay for a commodity in satisfying needs also. In addition to this, the concept of customers intimacy relates to closeness of customers with commodity of a firm (Hammer, 2015). Therefore, by interacting with clients in high efficient manner a company gains opportunity to know more about taste and preference of customers.
• Develop the Network - This stage shows connectedness of an association with other stakeholders who will cooperate management to deliver services to target customers. Therefore, it is compulsory to manage relationship with customers and create value for them on each stage of delivering or selling products. In addition to this, for increasing brand value of business, managers of Carter Lane Coffee House are required to develop relationship with all people associated with company so that co-operation of them help in completing each and every demand of customers.
• Value proposition development - It is the last step under which management is needed to develop strategies by gathering complete information acquired in above phases. As through customer intimacy, they can identify targeted audience as well as their needs. So, need to make action plan related to value proposition so that demands of customers can be completed on time.

Process of CRM activities includes various kinds of components which help in maintaining healthy and positive relationship with consumers. In this regard, managers are needed to identify demands and needs of customers as well as current trends of existing market area. In addition to this, they should use effective measures through which loyalty of customers can be earned for long term profitability in business (Durst and Wilhelm, 2012). It is main responsibility of management of companies to make an appropriate plan through which operations of business can be conducted in proper way. For developing translational operations management of enterprises are required to gain opportunity available at marketplace through which achievement of set objectives cab be completed on time.

In the procedure of customer relationship management, managers are needed to concern on some major steps as stated below:-

• Correlate - This step includes a sequence of communication and transaction process through which better customer relationship can be implemented.
• Combine - It entails managers to implement a healthy and effective conversation with customers through strong communication skills.
• Cognize - It refers to collect information related to different kinds of products or services as current market scenario.
• Connect - It assists management to interact with channels of media, clients, suppliers and investors.

P3) Small business can develop transnationally and benefits and drawbacks

Transactional sales– 

Its a most valuable aspect of business entities through which management can evaluate profits and revenues earned by business in future (Durst and Runar Edvardsson, 2012). This kind of sales is directly linked with process of delivering services to customers as per requirement of customers. In this regard, management of Carter Lane Coffee House requires to conduct proper market research in order to evaluate latest trend of marketplace and demand of customers. After then develop strategies and tactics through which minds of customers can be attracted. It would help in earning high profitability. As products of this cafe like Macchiato, Italian style of coffee as well as way of delivering i.e. not too hot not cold with lovable services on reasonable price shows effective quality. As in London Street many new cafes are opening at rapid having intellectual ideas create threats on business of this firm. Therefore, to maintain reputation of business and expand it in other locations, management of this cafe requires to make proper action plan.

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Transactional sales is a kind of strategy used to accomplish short term goals of a company in quick manner. As Carter Lane Coffee House currently wants to increase sales performance with at least 2% within two months. So, this strategy helps in planning and allocating resources through which such kind of objective can be accomplished within set period of time. In this process, it is necessary for this cafe to provide coffee and other bakery items enrich with high quality to customers on affordable price rates (Drucker, 2012). Some major benefits and limitations of translational sales are explaining as below:-

Benefits -

• Lifestyle - Companies under small sectors have definite business structure which is helpful in maintaining a healthy and positive working environment through which new strategies can be implemented at the workplace easily.
• Independence - Management of SME are free to make decisions regarding to make strategies, implementation of the same and run business in own manner. They just required to consider internal and external environment through opportunities available ar marketplace can be acquired.

Drawbacks

• Lengthy - Developing new strategies and providing innovation in products or services consume much time as well as a lengthy process too for small firms.
• Financial risks - Implementation of new techniques in workplace and adoption of new technologies coversseveral risks and uncertainties (Weske, 2012). It will majorly impact on working capabilities of employees and on performance of business also. Thus, this procedure seems to be unhealthy in terms of finance.

TASK 3

P4) Annual itemised monthly cash flow forecast showing fixed and variable costs

In order to raise finance from different source, small firms are required to generate unique and innovative ideas. They should make proper action and budget plan which includes entire activities as well as capital required to run the same (Cojoacă, 2017). This would help management in analysing requirement of funds. Some sources available for small companies are:-

• Bank loan - In every nation, there are number of public and private banks available which provides loan and credit facilities to all kind of businesses on easy terms and conditions.
• Hire purchase - It is considered as the best source used by managers of small firms to drive capital in business. In this process, they can acquire finance on giving some assets of company on rent.

Forecasting and budgeting

• Time series data - This technique help a firm in setting up schedule of entire activities of plan so that such kind of project can be executed on time within an estimated budget.
• Dealing with seasonality developing budget - In this phase, management of company are required to make some essential changes in existing budget plan. This would help in dealing with current and future trends of market place in appropriate manner.

P5) Break- even analysis

Break even analysis is considered as most useful technique for production management and accountants of a company (Winarno and Wijijayanti, 2018). This technique is used to categorise costs of operational activities of a firm into two major parts that are variable and fixed costs. It is also used to determine relationship among three major aspects of business i.e. revenue, costs and profits at different level of outcomes.

Through this graphical representation, costs at diverse level of activity has shown that management of Carter Lane Coffee requires to predicates sales and output level of business in context with future (Chauma, 2017). This, this kind of analysis is considered as an important tool in reducing expenses and wastages as well as create modifications accordingly.

Break-even point:Fixed costs/ construction margin per unit or product = 18000/(8-5)= 6000 ans.

P6) Financial statements for an organisation

Financial statements is prepared by management to track the current financial position & performance in a specific period of time. Financial statements generally includes cash flow, income statement, trading account and balance sheet. Management team of Carter Lane Coffee Houseis providing their internal details to outsiders of the company such as creditors & investors to let them know about organisational financial position. Choose the best assignment help from experts.

Four types of financial statement are as follows:

Balance sheet:

It represents current assets, current liabilities and Equity share holders. Its general principle states that assets should be equal to the sum of amount of liabilities and equity. Cash mention in the asset side should match to cash flow at the end (Burns, 2016). In context to Cater Lane Coffee House, the main purpose of preparing balance sheet is to show exact details of assets & liabilities available in the company. This also represents the financial status of the company.

Profit & loss account:

This account is prepared after preparing the trading account. P&L account shows net profit & net loss obtained because of operational activities in accounting period. This account reflects the summary of revenues, cost and expenses of specific time duration. Every business is started with the motive of earning profit which can be measured or checked with the help of this account.

Cash flows-

This kind of statement shows cash inflows and outflows obtain in business on annual basis. It is used to create an equivalence among income statement when P&L A/C of business doesn't match with report of cash flow. It includes sales, loans, receivable and payable cash as well as other investments made by employers.

TASK 4

P7) Legislation and regulations that have implications on small businessesD4 Regulations and legislations that impact on small business

Government of every nation has established several laws and legislations for companies lie within territorial region. It includes health and safety law, employment law, data protection act, consumer rights and more. All such laws are necessary for small and big organisations to be followed so that business can be run in effective manner (Bridge and O'Neill, 2012). In addition to this, such kind of rules are also assisted management to ensure some legal formalities like keep record of buisness activities, insurance, protects data, provide insurance to employees, pay tax on time and so on. As Carter Lane Cafe House deals in food industry so, it needs to concern more on ingredients use in products as well as quality and hygiene factor of the same also. It should keep premises and kitchen area insect free and measures cleanliness of outlets so that health of people cannot be affected. Some other laws where management are required to concern more on are given as below:-

Employment Law:

It refers the laws made for the welfare of the employees to protect them from discrimination during their working hours (Williams, 2012). It also includes the different types of benefits which made for them by the government that needs to be followed by each & every organisation. Carter Lanes Coffee House specially cares about their employees by providing them all the mandatory benefits like insurance, medical benefits, pension schemes, leaves etc. This company also gives wages to its employees timely without any delay.

Consumer Laws:

This law is made by the government for long run benefit of the consumers. Consumer law includes rights of quality products (Ali and Babiker, 2017). Carter lane Coffee House provides quality product to its consumers by maintaining Hygiene Level with the inclusion of information mentioned in description are prices, delivery details, cancellation policies etc. All these details helps the consumer to place their order.

Menu Labelling:

This law has enacted in 2010 by Food and Drug Administration according to which it is necessary for companies having same brand name to label complete information on products. It includes calorie, ingredients and nutritional information on menu card so that guests can read before make an order.

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CONCLUSION

From this presented assignment, it has concluded that if small company have effective management then it will aid them in running business smoothly. Managers of such firms are required to consider some major concepts of business while planning and allocating resources. It includes requirement of funds, availability of man power, setting of goals and objectives etc. In addition to this, for enhancing image of business they should concern more on developing strategies and include CRM activities in business.

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