OFFERS Buy 4 assignments and get 1 absolutely FREE!
Search

Various Kinds of Resources of LIDL

University : Regent College London

  • Unit No : 2
  • Level : Undergraduate/College
  • Pages 9 / Words 2000
  • Paper Type : Assignment
  • Course Code : D/502/5409
  • Downloads : 371
Organization Selected : LIDL

INTRODUCTION

In an organisation, there are various kinds of resources available like human, physical, financial, technological and more. Among these, human resource play a crucial role in accomplishing targeted goals and objectives in set period of time while other materials enable them to do function in appropriate manner (Hai-xia, 2011). This project entails the importance and purpose of managing such kind of resources in an enterprise. It also describes way to manage human resource, raise funds from different source as well as an interpretation on key financial statements is also given. For this context, a large company of UK named by LIDL has been taken which deals in supermarket business.TA

TASK 3

P4 Sources of internal and external finance

In order to run a business properly, a company requires money in sufficient manner. By the term finance, it entails the management of desired amount of money and allocate from different sources (LIU and YAN, 2015). For an instance- If an organisation sells its products or services to people then they are considered as source of obtaining finance. It can be distinguished in two broad terms that are:-

Internal Source of finance: Rather than to induce loan from banks and investors, a company can get necessary funds from internal source i.e. use own money for financing in operations. In context with LIDL, this kind of finance helps in saving money on payments of interest or getting free from being accountable to investors. It uses following source to generate finance in business-

  • Retained Profits: This source is used by such companies that operate business on large level with shareholders and stock. They used to recycle profit as working capital instead of using the same for paying it as dividends.
  • Sale of Assets: In this context, management of LIDL can sale such assets to other companies like machineries, equipments, transport and more which have no use in business. It will help to cover a cash-flow emergency in quick manner.
  • Reducing working capital:It is a type of strategy used to manage available cash in adequate manner. Under this context, employers used to concern more on longer payment terms rather than shorter billing items so that funds can be received faster.

External Source of finance: It states process of arranging funds from outsiders rather than retained earning from internal activity of business (Xie-kui and Dan, 2015). This source of financing can be segregated on the basis of long-term and short-term purpose that are-

  • Long-term source: It includes equity shares, debentures, term loan, preferred stock, venture capital, leasing and hire purchasing. For big enterprises like LIDL, equity shares and debentures are considered as common source but costly as compared to finance on debt. While hire purchase is normally provided by suppliers to buyers with an alternative to buy assets of company at the end of its term.
  • Short-term source:Bank overdraft, trade credit, factoring in debt etc. are defined as short-term source of finance. As companies are required money for day-to-day operations in which requirement of cash is generated due to a gap between collection and payments. Therefore, to fulfil this gap, management of LIDL used to take bank overdraft. While trade credit is given by suppliers or creditors which allows a firm in delaying its payment for certain period of time (LIU, SU and QI, 2012).

P5 Interpretation on contents of a balance sheet, trading and P&L account

Income statement of LIDL

Currency in GBP. All numbers in thousands

Revenue

31/01/18

31/01/17

Total revenue

8267

8212

Cost of revenue

2999

2612

Gross profit

5268

5600

Operating expenses

Selling general and administrative

7380

5543

Total operating expenses

10488

8114

Operating income or loss

-2221

98

Income from continuing operations

Total other income/expenses net

3

4

Earnings before interest and taxes

-2221

98

Interest expense

-

-2

Income before tax

-2218

102

Income tax expense

-125

-85

Net income from continuing ops

-2093

187

Non-recurring events

Net income

Net income

-2093

187

Net income applicable to common shares

-2093

187

Income statement

Revenue (ttm)

8.27M

Revenue per share (ttm)

0.03

Quarterly revenue growth (yoy)

-2.50%

Gross profit (ttm)

5.27M

EBITDA

-1.84M

Net income avi to common (ttm)

-2.09M

Diluted EPS (ttm)

-0.9

Balance sheet

Total cash (mrq)

3.23M

Total cash per share (mrq)

0.01

Current ratio (mrq)

3.2

Book value per share (mrq)

0.03

Cash flow statement

Operating cash flow (ttm)

-720k

Levered free cash flow (ttm)

-969.12k

Trading information

Stock price history

Beta

0.14

52-week change 3

-28.75%

S&P500 52-week change 3

14.79%

52-week high 3

10.45

52-week low 3

5.999

50-day moving average 3

7.535

200-day moving average 3

6.95

Share statistics

Avg vol (3-month) 3

50.81k

Avg vol (10-day) 3

32.5k

Shares outstanding 5

244.18M

Float

146.08M

Interpretation: From this financial statement, it has interpreted that LIDL Company as compares to last year, it has not achieved much success in terms of sales performance ans revenue.

TASK 4

P6 Use of budget for financial control

A budget in a firm provides a road map which describes entire detail about estimated outcomes through which manager of a firm can make decisions as per set goals (Junyi, 2014). It helps in three main aspects of business that are:

Planning: When a budget reflects expected sales in a certain period then manager can analyse costs of the same and determine resources or raw materials need for that. For an instance- if sales of a business is increasing 4% over budget for specific time then management can add this in further calculation.

Forecasting: Budget of previous financial year helps managers in preparing budget for following year by applying strategies that are helpful in last year for gaining profitability.

Continuous improvement: With weekly performance of business in terms of sales, managers can evaluate ways through which improvement may be done (Chen, Nasongkhla and Donaldson, 2015). Budget helps them in providing clues as where they need to concentrate more for improving financial performance.

P7 Financial State of LIDL

This statistic reveals profit gained by LIDL from 2014 to 2017. It shows that operating profit of this company dropped continuously i.e. amounting 68 million euros in 2017 which was near about 2 million euros less as compared to 2016.

CONCLUSION

It has been concluded from this report that behind success of every organisation, management play an important role who helps in allocating different resources as well as manage them in proper way. It includes human, physical, technological and other non-financial resources which have played different-different role in operating functions of business. Along with this, financial resources are considered as most essential initiatives without which entire functions of a company cannot operate. So, various kinds of financial sources are also described in this assignment.

Download Full Sample
Cite This Work To export references to this sample, select the desired referencing style below:
Copy to Clipboard
Copy to Clipboard
Assignment desk (2020) D/502/5409 [Online]. Retrieved from: https://www.assignmentdesk.co.uk/free-samples/d5025409-various-kinds-of-resources-of-lidl
Copy to Clipboard
Copy to Clipboard
Assignment desk. D/502/5409 [Internet]. Assignment desk.(2020), Retrieved from: https://www.assignmentdesk.co.uk/free-samples/d5025409-various-kinds-of-resources-of-lidl
Copy to Clipboard
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 7.03

Delivered on-time or your money back

100+ Qualified Writers

For Best Business Assignment Help

View All Writers
FREE Tools

To Make Your Work Original

  • Plagiarism Checker

    Check your work against plagiarism & get a free Turnitin report!

    Check Plagiarism
  • Reference Generator

    Get citations & references in your document in the desired style!

    Generate References