UNIT 29 MSB (1)

1 Unit: 29 Managing & Running a Small Business

2 Contents Introduction: .............................................................................................................. 3 LO1 Explore how a small business or social enterprise plans and allocates resources to achieve objectives ................................................................................. 3 About Ella’s Kitchen: ................................................................................................. 3 Purpose: .................................................................................................................. 4 Mission: ................................................................................................................... 4 Vision: ..................................................................................................................... 4 Set a goal: ............................................................................................................... 4 Marketing mix of Ella’s kitchen: ................................................................................ 4 SWOT analysis of Ella’s kitchen: ............................................................................... 6 Competitor’s analysis: ................................................................................................ 7 Porter’s five key model: .......................................................................................... 7 Source for funding: .................................................................................................... 7 Develop plan for resources: .................................................................................... 7 Premises & equipment: .......................................................................................... 7 People & skills: ....................................................................................................... 8 Being an employer: ................................................................................................. 8 Media tools used by Ella’s kitchen for marketing campaign: ................................. 8 Organizational structure: ....................................................................................... 8 Organizational culture: ........................................................................................... 9 LO: 02: CRM: ............................................................................................................. 9 Consideration of HRM ............................................................................................... 9 Develop effective relations with customer: .............................................................. 10 Promotional activities: ............................................................................................. 11 Promotional activities utilizes by Ella’s kitchen: ............................................... 12 LO: 03: Financial statement: ................................................................................... 13 Break-even analysis facts: .................................................................................... 15 LO: 04: Regulation & legislation: ............................................................................. 15 Conclusion: .............................................................................................................. 16 References: .............................................................................................................. 16

4 Purpose: Ella's Kitchen has established its Brand Purpose and placed it at the center of its brand and business strategy with the goal of enhancing children's lives through healthy food interactions. Mission: Ella's Kitchen was founded with the intention of fostering healthy food relationships in the lives of children. Every member of our staff must be committed to achieving that goal in every daily activity. Vision: You and your team must define and agree on a clear set of values in order to comprehend what your brand stands for and how you will actually live it. Set a goal: The association will make the arrangement while considering its objective or objective. The organization's destination will be determined by the target or goal, and once it knows where it is going, it can make a plan to get there without getting stuck. Therefore, defining an objective is significant for Ella's Kitchen. The organization will be able to recognize the significance of a strategy and the resources Ella's Kitchen needs to successfully reach its goal thanks to the objective. Marketing mix of Ella’s kitchen: It has been determined that the marketing mix plays a significant role for SMEs. Identifying information requirements, gathering pertinent data, and utilizing that data to develop appropriate strategies are all components of the marketing mix strategy (Speece & Dimmitt, 2005: pp. 285–305). Little and medium-sized organizations (SMEs) benefit from expanded client base and productivity because of such sending. The company's main marketing mix strategies are as follows, based on an analysis of its customers and rivals: Promotion:

5 The business advances good food standards in the commercial center. The enterprise has different social groups, which supports spreading consciousness of the item's advantages among individuals from different societies. Product: The production of the product aims to provide nutritious food of high quality. Place: The organization operates in numerous other nations in addition to the United Kingdom. Its products can be found online or in publications all over the European and Asian regions, in addition to many other nations. Price: At the moment, the company uses a significant price differentiation strategy. People: Services in general are characterized by constant communication between the provider and the client. Think about the financial business, the movement and lodging areas, or the magnificence and taking care of oneself areas. They all require regular interactions between producers and clients. Process: The timely and high-quality delivery of services necessitates the creation of a solid procedure. Physical evidence: Physical documentation is essential for services because they are intangible. The client must receive some specific cues in order to purchase your services. Cleanliness, staff attire, wall color, website usability, packaging, and brochure designs are among the many factors that influence a customer's decision to purchase a service.

7 Competitor’s analysis: Porter’s five key model: In order to assist in integrating the AIDA theory and industrial importance, which stipulates that there ought to be four key pillars, Porter's five forces are put into practice. There should be awareness, interest, desire, and action that contributes to improved communication between the external environment and company operations, as ineffective operations of SME's are primarily caused by a communication gap. The Porter Five Forces study presented above indicates that the business faces a modest threat of being replaced by other businesses. Rivalry in the child food area is probable. In addition, new entrants face a threat because suppliers and customers have similar bargaining power and the industry is not particularly challenging for them. Three forces are proposed by Porter's five forces analysis: the level of competition, the buyers' ability to negotiate, and the possibility of new competitors. The company's strategies are being affected by these factors because it needs to boost productivity, initiative, and efficiency to stay competitive in the long run. Source for funding: Develop plan for resources: To achieve the organization's goal and reach its destination, a variety of resources are essential. According to Gallagher, Abikoff, and Spira (2014), the resources will enable the organization to successfully carry out the plan and achieve the goal. As a result, Ella's Kitchen must devise a strategy that will enable the organization to acquire the necessary resources and successfully achieve its goal. Premises & equipment: Structures are viewed as fundamental assets for the association. The organization also requires a variety of equipment to complete its numerous tasks. The achievement of many assignments is fundamental for Ella's Kitchen to arrive at its goal. Properties are viewed as vital assets for completing different hierarchical exercises. Additionally, the equipment will

8 be required to carry out the organization's responsibilities. In order for Ella's Kitchen to effectively acquire the necessary resources, the organization must develop a strategy. People & skills: The organization must carry out numerous activities and complete numerous tasks in order to achieve the goal it has set for itself. Ella's Kitchen's staff will play a role in running the business, and their expertise will help them do their jobs well. As a result, one of the company's most important requirements is personnel and their expertise. Before devising a strategy to fill in any gaps in its skill set, Ella's Kitchen must first identify the abilities required to carry out various tasks. The association should foster its preparation thusly to address the issue for assets. Being an employer: To do the arrangement for achieving the association's objective, Ella's Kitchen should be a business. The accompanying circumstances should be considered when Ella's Kitchen is going about as a business. Media tools used by Ella’s kitchen for marketing campaign: Organizational structure: Ella's Kitchen should make a useful hierarchical system. An efficient organizational structure will make it easier to run the business's administration. The plan for achieving the goals will be created by upper management. To guarantee that individuals perform well, mid-level administration will successfully lead them, and low-level administration will do likewise to assist the business with arriving at its targets (Caroselli, 2011). Ella's Kitchen will be able to successfully achieve the objective in this manner while taking into consideration an effective framework. Organizational culture: It is the responsibility of the organization's culture to promote a positive work environment. The staff members will be able to act positively and believe in the organization. The staff will be propelled to perform gainfully by sure way of behaving.

10 Develop effective relations with customer: The sale of a service or product to customers is a business organization's goal. An important factor in determining an organization's success is customer satisfaction. Along these lines, Ella's Kitchen's essential obligation is to construct solid associations with its clients. Ella's Kitchen will actually want to satisfy its clients on account of the successful relationship. The company will be able to increase sales and attract more customers in this way. Ella's Kitchen will successfully achieve its goal on account of the development in shoppers and deals. The accompanying activities will help Ella's Kitchen in making an effective connection with its clients (Mullins, 2017). Provide customer value: By providing value to its customers, Ella's Kitchen will be able to build a strong relationship with them. Customer value, as defined by Bratton and Gold (2017), is the process by which a business can satisfy its customers. Clients' cash is utilized to buy the association's merchandise in the interest of the clients. Along these lines, it's urgent to impart in clients the thought that they might get a satisfying decent from Ella's Kitchen in return for their cash. In this way, Ella's Kitchen will be able to provide value to customers. Using the customer value, the company can calculate the customer lifetime value. Additionally, Ella's Kitchen will be able to establish positive relationships with its customers. The company will be able to effectively increase both the number of customers it has and the amount of money it sells if this is done. Retaining customers: Through the process of keeping customers, Ella's Kitchen will be able to establish a successful relationship with them. Ella's Kitchen must be aware of customer demands and expectations. If a company is able to meet their expectations while charging a fair price, customers won't go elsewhere for the service. They will visit Ella's Kitchen over and over to get administrations from the business. This assumption will influence customers' perceptions of Ella's Kitchen's capacity to provide high-quality services at reasonable prices (Grayson, 2019). By doing this, Ella's Kitchen will actually want to keep its clients and make solid associations with clients. Existing clients will spread positive verbal exchange about Ella's Kitchen by means of their collaborations. Because of the enthusiastic

11 recommendations made by its current customers in this manner, Ella's Kitchen will be able to acquire new customers. Ella's Kitchen will be helped in reaching its goal by the company's ability to increase sales. Customer care: A customer service program needs to be developed by Ella's Kitchen. In the customer care program, Ella's Kitchen will consider customer suggestions for service enhancement. The company will be aware of Ella's Kitchen's service issues. Additionally, Ella's Kitchen will be able to offer care services to its customers. The business will be able to learn about the clients' expectations and areas in which the service falls short by using this strategy. Ella's Kitchen will be able to increase service efficiency as a result of this. Additionally, with the assistance of customer service, Ella's Kitchen will be able to satisfy customers. The clients will feel that Ella's Kitchen gives them top thought. This will make it simpler to keep good relationships with customers, which will help Ella's Kitchen run more smoothly. Promotional activities: A formidable obstacle is selecting the wrong customer relationship management system. Supplanting the ongoing framework with one that is certainly not a reasonable counterpart for the business could cause significant commotion. The system's capabilities must be evaluated to determine whether the business's current and future CRM requirements are met. It's also important to look at how well it integrates with the company's other software. The scope of the post-implementation service scenario should also be looked at. (O’Neill, 2021). i. Develop channels for customer communication: The company cannot maintain its relationship with its customers if it does not communicate effectively and consistently with them. Good communication makes it possible to understand the needs of customers and convey to them that the company places a high value on them. Ella's Kitchen will be able to satisfy its customers in this manner, and a satisfied customer will make it possible for Ella's Kitchen to maintain a successful client relationship. The organization will actually want to speak with its purchasers by considering the channels underneath.

13 LO: 03: Financial statement breakeven analysis 7 cashflow forecast: The enterprise should put resources into request to lead worldwide business. As part of its strategy to enter new countries, Ella's Kitchen needs to open a new location. The association should have the fundamental instruments and assets. To maintain the association's business, new recruits are required. In order for Ella's Kitchen to complete all of these tasks, it needs to invest. Ella's Kitchen should get financing from different hotspots for the speculation (Basavanthappa, 2014). Ella's Kitchen will actually want to fund-raise from different sources thanks to the association's monetary assets. Produce a cash flow forecast and break-even analysis for a small business or social enterprise, covering projected income and expenses. Ella's Kitchen will actually want to acquire the assets from a few monetary sources. Following that, the organization will develop a budget plan that, if taken into consideration, would enable the organization to launch a global business (Scott, 2004). The company should ensure that the spending arrangement will be stuck to appropriately and that starting the overall business inside the limits of the budget will be conceivable. Consequently, the budget plan must be followed and properly monitored. Break-even analysis will be used by Ella's Kitchen to keep track of its financial plan and launch its international operations on time. Break even analysis

14 Each partner receive £1000 as a salary per month. Nonetheless, the break-even analysis indicates that Ella's Kitchen will be able to control the budget. It will be possible for the business to launch its international operations on time. In this strategy, equal the initial investment examination will help Ella's Kitchen in deciding viability and sending off its global organization in an arranged way. Break-even analysis facts: In equal the initial investment examination, different realities are given. The following section focuses on these.  The expression will stress the speculation that is important to recover the underlying spend.

16 Income statement: An income statement is a type of financial statement that evaluates the success of a company's activities over a specific time frame. The revenue and spending breakdown of the business organisation is included in the income statement, which also aids in calculating various profits for the company. Cash-flow statement: One of the important financial statements that offers a summary of the cash flow in the company organisation for the fiscal period is a cash flow projection. The business's cash and cash equivalent transactions are compiled in the cash flow statement. Balance sheet: The entire assets, liabilities, and shareholders' equity of a given financial period are simply listed on a balance sheet. As a result, the balance is a financial statement that aids in downplaying the company organization's current financial situation. LO: 04: Regulation & legislation: In order to operate legally, Ella's Kitchen must adhere to a number of important regulations, which are highlighted and described below. i. Keeper of Records: Ella's Kitchen must comply with the law regarding record keeping. As a consequence of this, the organization will be able to monitor commercial transactions (Blau and Scott, 2004). The organization can learn about its financial development by carefully considering the record-keeping procedure. ii. Workplace Law: When hiring new employees, Ella's Kitchen must take employment law into account. During the hiring process, the organization is required by law to ensure equity. The law will likewise help with safeguarding both representative and boss privileges. iii. Workers of the association give their own data to the association as per the Information Insurance Act. Several candidates provide the organization with information during the hiring process. Additionally, the business's data was once accessible to the organization. Ella's Kitchen will profit from the information

17 security act's powerful information assurance measures. Because of this, Ella's Kitchen must take the act into account in order to run its business. iv. Act on Equality: Ella's Kitchen is required to treat all of its employees fairly in accordance with the law. Employees at Ella's Kitchen cannot be treated differently due to any differences they may have. The equality act will ensure that all employees are treated equally. Because of this, the act needs to be taken into consideration by Ella's Kitchen. v. Representatives reserve the privilege to a protected and sound work environment under the Wellbeing and Security Act. The work force will actually want to get security in a legitimate strategy and will be remained careful from different risks. According to Bluu and Scott (2004), Ella's Kitchen will be able to provide its employees with a safe workplace thanks to the Health and Safety Act. Because of this, Ella's Kitchen must take into account the Health and Safety Act. Conclusion: Viable arranging is important to oversee and lead the association's business, as per the specialist's discussion in the part above. The assets that could help the association in making a fruitful arrangement are featured and tended to. While leading global business, the organization should consider various issues. The scientist discussed the components that can uphold an association's adequacy while leading worldwide business. During its operations, the corporation may encounter a number of legal obstacles. The researcher discusses the legal requirements that must be met for the organization to function effectively and achieve its objective. References: Mullins, J. (2017). The New Business Road Test: What entrepreneurs and investors should do before launching a lean start-up. Pearson UK.