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Business Resources of a Company

University : REGENT COLLEGE LONDON

  • Unit No : 2
  • Level : Diploma
  • Pages 19 / Words 2000
  • Paper Type : Assignment
  • Course Code : D/502/5409
  • Downloads : 434
Organization Selected : Blue Inc

INTRODUCTION

Business resources are very crucial in every company. A company requires resources such as financial, human, technological resources. Thus as a result they can easily manage these resources and can increase the efficiency level of company (Wahl and Prause, 2013). As a result they can easily earn more revenues. Hence it can easily increase the market share. Report explains about Blue Inc which is a retail firm which is located in United Kingdom. Assignment describes about the methods through which resources are managed and the purpose of managing physical and technological resources. It also explains about the sources of funds and interpretation

TASK 1

P1 Recruitment documentation used within organizations

Blue Inc is one of the leading and fastest growing clothing retail chain of United Kingdom. At present, around 250 stores of company are operated in all across the across the country and is growing speedily in young fashion market. In every business concern, one of the essential part is its human resource which should be skilled and knowledgable enough to carry out operations and activities of business in an effective and efficient manner. This will help firm in attaining its business objectives and leads it towards high growth and success. So, manager of Blue Inc. requires to hire skilled and competent workforce (Obschonka, Silbereisen and Schmitt‐Rodermund, 2012). For this, some documentations are required which are as follows:

Job Description

Job Title: Store managerStore Name:Blue Inc.

Type of Role:Permanent Hours: Full Time

Salary: Up to £27000 p.a. Last Date: 12/07/2018

Working with Blue Inc.

Blue Inc is the company that deals in clothing and is a rapidly growing fashion retail chain of United Kingdom. The firm is performing its business operations and activities by internet path as well. Thus, there is a good and proper management of work therefore, several opportunities are given by enterprise to its manpower in terms of providing them growth and development along with enhancing their skills and abilities. For attaining operational goals, Store manager are require to work with manager of Blue Inc in proper way.

Competencies:

  • Decision-making & judgment
  • Good communication
  • Team work
  • Highly skilled and knowledgable
  • Customer focus

Job Duties:

  • Communicate clearly all the information with staff members.
  • Store firm's resources in systematic and proper way so that it can be used later.
  • Conduct sessions with sales representatives to convey product knowledge to employees.
  • Address customer's issues in proper way and on time.

Requirements :

  • MBA(Marketing)
  • 4+ Years of experience in retail marketing area

Note: Interested prospectcan drop their CV to official website of organisation.

PERSON SPECIFICATION

Organisation: Blue Inc.

Job profile– Store Manager

Qualification – MBA or PGDM (in Marketing)

Essential Criteria:

  • Keen knowledge of tools and skills related to management.
  • Being able to identify potential customers and have skills to made sales effective.
  • Strong leadership skills is required.
  • Some additional skills like strong interpersonal, communication and motivational skills

Desirable criteria:

  • 4+ years’ experience
  • Excellent knowledge related to procedures and policies of retail market.
  • Good personality

P2 Communication, employability and personal skills required by individual when applying for specific job role

Performing tasks in proper manner requires some skills which are very essential for an individual. These skills assists in their growth and development as well as allow them to do their work properly. Skilled manpower helps in accomplishing targets and objectives of company. Several skills require by candidate to apply for particular job are mentioned as follows:

Employability skills: These are the skills that are very essential for workforce as it assists them in performing their job duties in proper way (Hahn and Gold, 2014). These skills also helps in maintaining good relations with staff members as well as customers. By these skills, individual is enable to do their work on time and attain targets of company in proper manner. These skills includes:

  • Suitable qualifications
  • Efficiency to meet targets
  • Knowledge of products & services
  • Preferred experiences

Personal skills: This kind of skill enables individual to express themselves in front of others in effective way. For performing duties appropriately, with professional skills, personal skills are required as well. Some of these are as follows:

  • Patience & Hard Working
  • Interview Skills
  • Negotiation skills
  • Team Working skills

Communication skills: These skills are necessary for communicating message in proper way so that others can understand it clearly (Zachary, 2011). It assists in maintaining strong relationship with others within firm.

For performing duties of store manager in proper way, it is essential for an individual to have all the skills that are mentioned above.

P3 Technological and physical resources required in operations of firm

Blue Inc. is one of the largest Fashion retail store based in UK and has around 250 stores in UK. It offers product from casual to formal wears.

Physical Resources:-

Physical resources includes tangible items that help organisation to carry out its operations in an efficient manner (Laumer, Eckhardt and Weitzel, 2010). Blue Inc. uses physical resources to increase sales and to improve service delivery. Physical resources of company

  • Building :-

Businesses need a place to operated their operations . Blue Inc require buildings so that they can fulfil their business requirement and excess supplies can find place in warehouses.

  • Facilities:-

Facilities refers to arrangement at stores of Blue Inc. that is maintained so that customer get product for what he is searching for. As company also operate its operation online so it must arrange its product in a manner so that customers can find product of his choice.

Technological resources:-

Technical resources are intangibles that help organisation to perform its operations more effectively. Every technological system includes seven resources such as information,machine and tools, material, people, energy, capital and time (Grönroos, 2011). Technological resources are

  • Point of sale:-

Point of sale is an software that manages the transactions for Blue Inc. which includes credit card processing and sales transactions. It help in reducing errors and speed up transactional process.

  • Customer relationship manager(CRM):-

CRM help Blue Inc. to track their customers and maintain their details that is used to interact with customers. It record and analysis customer data to retain customers and to increase sales.

P4 Internal and external sources of finance for raising funds for business

Sources of finance are debt, debenture, retained earnings, term loans, working capital loans, letter of credit, venture funding etc. these source of funds used in different situations. Organisation categories on the ownership, time period and source generation. But in this question the organisation option source generation method. In which includes internal and external sources of finance (Wu, 2010).

Internal sources of finance:

Means the wealth generated from within the organisation. For example, by sale the assets which is not required for the organisation, cash in hand of the firm, deferred taxation, retained earnings etc.

  1. Retained equity earnings:This is the internal retained money of the shareholders to reinvest in the business. It is done by the manager to safeguard the interest of the shareholders.
  2. Depreciation provisions:It is made to repair or renew the machinery of the organisation. In which organisation make an account for provision of depreciation and then putting the money into it so organisation can use in case of uncertainty.
  3. Deferred taxation: means there is a time gap between earnings and taxation. So firm create a provision for it so company can use that money for delay payment.
  4. Personal fund savings:It is the owners fund, in which they includes the individuals savings.

External sources of finance:

means the fund raised from outside the organisation. Like fund from equity capital, preference capital, debentures, term loan, venture capital leasing etc.

  • Saving: what ever the saved by people use to invest in the different sources like equity, debentures , bond, stocks, futures and option etc. and from all that company generate income.
  • Loan: fund can be raised through borrowings and which can be done from different sources like: friends and relatives, money leading institution, commercial and other banks (Zott, Amit and Massa, 2011).
  • Shares: Money raised by issuing the shares to the public. Company can raise through initial public offer and further public offer. In which number of authorised shares can be issued and the value of each shares is specified and after that the capital collect out from the public.

TASK 2

P5 Interpretation of profit and loss, balance sheet and trading account of company

Gross profit:

Formula for computing:

Gross profit: Total sales- COGS (Cost of good sales)

: 87912-38481=49431

Gross profit margin:

Gross profit margin: Gross profit /Total revenue *100

: 49431/87912*100=56.22%

Net profit:

Income statement

Particular

Amount

Sales

87912

Less: COGS

38481

Gross profit

49431

Less: Overhead expense

Wages

28566

Carriage outwards

139

Rent

4400

Rates and insurance

3561

Advertising

1369

bad debts

879

Fixed expenses as depreciation

120

Van

2500

Total overhead exp,

41534

Net profit

7897

Net profit margin:

Net profit margin:Net income / Total sales *100

: 7897/87912*100= 8.98%

Current ratio:

Current ratio:Current assets/Current liabilities

: 72000/50000=1.44

Return on capital employed:

ROCE:EBIT/ capital employed *100

: 7897/130000+75000*100

: 3.85%

a):

Fixed assets:

Land and building

150000

Machinery

180000

Vehicles

90000

Total fixed assets

420000

b):

Current assets

Stock

34000

Debtors

26000

Bank

12000

Total current assets

72000

c)

Current liability

Trade creditor

18000

Taxation

19500

Dividends

12500

Current liability

50000

d):

Particular

Amount

Fixed assets:

Land and building

150000

Machinery

180000

Vehicles

90000

Total fixed assets

420000

Current assets

Stock

34000

Debtors

26000

Bank

12000

Total current assets

72000

Total Assets

492000

e):

long term liability

Long term loans

75000

Capital

130000

Net assets employed

205000

P6 Use of budget for exercising financial control of firm

Calculation of contribution

Selling price

15.00

Less: various costs

Direct materials

2.50

Direct labour

5.50

Variable overhead

1.00

Contribution

6

Break-even point: FC/contribution

10000/6= 1666 units.

(a): In case there is increase in Direct material costs

An increase in direct material costs to ₤3.00 per product

Selling price

15

Less: various costs

Direct materials

3

Direct labour

5.5

Variable overhead

1

Contribution

5.5

Break-even point= 10000/5.5=1818 units

(b): Reduction in selling price:

Calculation of contribution

Selling price

14

Less: various costs

Direct materials

2.5

Direct labour

5.5

Variable overhead

1

Contribution

5

Break-even Point: 10000/5=2000 units

(c): An increase in fixed cost:

Calculation of contribution

Selling price

₤15.00

Less: various costs

Direct materials

₤2.50

Direct labour

₤5.50

Variable overhead

₤1.00

Contribution

6

BEP: 11000/6=1833 units

(d): A decrease in variable overhead

Calculation of contribution

Selling price

15

Less: various costs

Direct materials

2.5

Direct labour

5.5

Variable overhead

0.75

Contribution

6.25

BEP: 10000/6.25=1600 units.

Unit sold

Total cost

Total revenue

1666

14994

24990

1818

17271

27270

2000

18000

28000

1833

16497

27495

1600

14000

24000

P7 Analysis of financial position of business

a) Identification of problems:

After proper evaluation of cash flow, the main problem observed is lack of adequate funds to pay its liabilities. The issues face by firm are:

  • Increase in total expenses.
  • Purchases are more than sales.
  • Non payment or late payment to suppliers.

b) Main causes of problem:

Inefficiency of manpower along with high expenses of firm are seen as the main cause of arising problem (Hart and Dowell, 2011). This will results in increasing total flows of cash. High purchases is the other cause which results in cash deficit.

c) Suggested ways of enhancing cash flows:

For improving cash flows and minimise cash deficit, some suggested ways are defined below:

  • Increase in total cash receipts.
  • Eliminate unnecessary expenses.
  • Monitor cash flow on constant basis.

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CONCLUSION

It has been concluded from above report that business resources are very crucial in every firm. Through proper managing all business resources company can easily handle all operations effectively and efficiently. Thus as a result company can maintain positive image in market. Hence it performs various methods to manage all human resources in organization. Various objectives are there for managing physical and technological resources. Various sources of finance are used so that they can be invested in a useful purpose. Financial statements are interpreted so that firm can find the profits or losses in the firm. Thus they can take corrective steps if company faces losses.

You may also like: Business Risk Originates From Different Areas

REFERENCES

  • Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A review of concepts, research and practice.International journal of management reviews. 12(1). pp.85-105.
  • Grönroos, C., 2011. A service perspective on business relationships: The value creation, interaction and marketing interface.Industrial marketing management. 40(2). pp.240-247.
  • Hahn, R. and Gold, S., 2014. Resources and governance in “base of the pyramid”-partnerships: Assessing collaborations between businesses and non-business actors.Journal of Business Research. 67(7). pp.1321-1333.
  • Hart, S.L. and Dowell, G., 2011. Invited editorial: A natural-resource-based view of the firm: Fifteen years after.Journal of management. 37(5). pp.1464-1479.
  • Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in an e-business environment.Journal of Electronic Commerce Research. 11(4). p.240.
  • Mallah, S. and Bansal, N.K., 2010. Allocation of energy resources for power generation in India: business as usual and energy efficiency. Energy Policy. 38(2). pp.1059-1066.
  • Obschonka, M., Silbereisen, R. K. and Schmitt‐Rodermund, E., 2012. Explaining entrepreneurial behavior: Dispositional personality traits, growth of personal entrepreneurial resources, and business idea generation.The Career Development Quarterly. 60(2). pp.178-190.
  • Singh, P. K., 2012. Management of business processes can help an organization achieve competitive advantage.International Management Review. 8(2). p.19.
  • Wahl, M. and Prause, G., 2013. Toward understanding resources, competencies, and capabilities: business model generation approach.Entrepreneurship and Sustainability Issues. 1(2). pp.67-80.
  • Wu, L. Y., 2010. Applicability of the resource-based and dynamic-capability views under environmental volatility.Journal of Business Research. 63(1). pp.27-31.
  • Zachary, R. K., 2011. The importance of the family system in family business.Journal of Family Business Management. 1(1). pp.26-36.
  • Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future research.Journal of management. 37(4). pp.1019-1042.
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