Analysis of Business Resources and Planning

The assignment discusses the significance of business resources in ensuring the smooth operation and growth of a company like ASDA. It emphasizes the importance of physical, technological, external, and internal financial resources in achieving business success. The analysis also touches upon the role of institutional context and individual-level resources in promoting new business activity. A review of relevant literature is included to provide a comprehensive understanding of the topic.

Business Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Documentation and recruitment used in ASDA................................................................3
P2 Employability, communication and personal skills required for a job.............................4
TASK 2............................................................................................................................................5
P3 Technological and physical resources required for ASDA' s operations.........................5
TASK 3............................................................................................................................................5
P4 Sources of external and internal finance for ASDA..........................................................5
P5 Contents of profit and loss account & trading and balance sheet of ASDA.....................6
P6 Use of budget for exercising financial control in ASDA................................................11
P7 Financial state of ASDA company..................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................15

INTRODUCTION
Business resources can be defined as the total sum of such elements which are necessary
for the process of production. These elements are known as financial resources, business
knowledge, HRM etc. (Chaffey and White, 2010). In order to fulfil the requirement of the
report, ASDA is being chosen as the organisation for the proper analysis. The main aim of the
assignment is to increase the knowledge development regarding the HRM, organisational
resources etc. Impact of these resources on business is the main view point of the report. Process
of human resource management, purpose for managing technological and physical resource will
be analysed in this report. Different financial sources and interpretation of the financial
statements will also be discussed in this report.
TASK 1
P1 Documentation and recruitment used in ASDA
Recruitment can be defined as the process where desired employees are selected for the
particular post as per the requirement of ASDA. There are two sources of recruitment, which are
internal and external sources. Internal process is done when as per the performance of the current
employee, he/she is promoted or transferred to fill vacancy. But there is difference in external
recruitment in ASDA. HR department of the mentioned company shortlist various candidates
who are eligible for selection. Online recruitment system is being followed in a company. There
are two main documents which are necessary for the process of recruitment i.e. job description
and personal specification. Job description is defined as the document give necessary details
about the particular job (Strategic Resources of a Business. 2015). Personal specification is
the description which describes the skills which are required in the candidate for the job. For
example, company is looking for Business Development manager and has prepared a job
description.
Job Description
Title: Business Development Manager
Reporting to: Sales manager
Purpose of the job: The position will be responsible to provide support in order to launch and

set up dealership in different areas.
Duties and responsibilities
 To generate leads and to convert them into sales.
 Provide full time support at different dealerships.
 Contact 10-12 dealerships in different areas who are working with dealer management
and principles in order to develop business case for the dealerships of business
development centres.
Education and Requirement
 Bachelor degree in marketing/sales.
 A minimum of 2 year experience.
 Excellent understanding and knowledge of dealership operations.
 Strong software and computer skills.
 Ability to work independently, must be multi task-er and self starter.
P2 Employability, communication and personal skills required for a job
Employability can be defined as the individual's capacity which is required for the
effective completion of the job. Employability skills are referred as personal attributes,
understandings and achievements that helps individuals to be successful and to gain employment
in an organisation. There are different types of employability skills which will be needed for the
position of business development manager and for other positions also. These are
communication and interpersonal skills for the clear and concise conversation (De Clercq,
Lim and Oh, 2013). Problem solving skills, initiatives which are necessary for self motivation,
organisational skills, team working skills and ability to work under pressure.
In every job, good communication skill is required. An individual should be capable to
have appropriate discussion with staff so as to work effectively, this also involves incorporation
of organisation and individuals required for the efficient communication. If there will be proper
communication person will be able to perform better in their job by having appropriate
conversation with managers and subordinates.
Personal skills are the important variable which are used to find out whether business
initiates an individual or not. For example, an employee should be mindful, should have positive

attitude towards work and should not panic in the case of emergency. Personal skills also help in
the overall growth and development of the individual (Zott, Amit and Massa, 2011).
Importance of employability is in direct relation with the ability of the candidate which is
used for maintaining and attaining employment. For different job descriptions, there is a
requirement of different skills and qualifications (Ehnert, Harry and Zink, 2013). It is
necessary for the candidate to show their capabilities, qualifications, experience and skills to the
employer during recruitment. Proper use of such qualities in an appropriate manner is also
necessary for employees in order to retain themselves in organisation and to have high rank.
TASK 2
P3 Technological and physical resources required for ASDA' s operations
Physical Resources
These are such kind of resources which are needed by business in order to perform its different
operations. These include various things like apparatus, offices and structures. Such resources
are required for the day to day operations of the business. ASDA has various physical resources
like structures, CCTV and sanitation facilities. Insurance is the type of physical resource, which
helps to save company from any misfortune. There are also different protections that are inside
the business. These protections help in saving property from any harm, protect from various
obligations and give protection against dangers. Security is another physical resource for ASDA.
It includes cameras which are fitted in an organisation. It permits entry of an unknown individual
inside the organisation (Grönroos, 2011).
Technological Resources
Scholarly properties are the type of technological resources. It provides privilege to the
organisation in order to claim their business thoughts and gives them permit to give permission
to other organisation for using their thoughts. This is the case of patent. Copyright is the another
technological resource. It used to protect rights that organisation have for their thoughts and
work. Copyright secure PC programs, database etc. Programming permit is also the
technological resource , it is the authorization given to use programmes of PC. These resources
will help to increase the profitability of an organisation (Korunka and et.al., 2010).

TASK 3
P4 Sources of external and internal finance for ASDA
Financial sources are very helpful for the business as it helps to provide funds which are
necessary for daily operations. There are two sources of finance which are known as internal and
external sources. ASDA make use of these sources for the investments in buying equipment and
making buildings. For the daily activities of the business, cash is being required and that need is
fulfilled by financial sources. These two sources has been described as follows:
Internal sources:
Personal savings: These savings are helpful when ASDA start its business for the first
time.
Retained profit: Personal saving doesn't fulfil all the requirements, so company reserves
or retain some money from its profits (McGrath, 2010).
Working capital: It is the transient cash, used to satisfy everyday cost like bills, lease,
stationery etc.
External sources:
Shares: ASDA sells debaucher and shear in the market and and makes
management of finance from external sources.
Loans: By taking loans from various financial institutions, company can fulfil its
requirements regarding various operations.
Overdrafts: It occurs when company withdraw money from bank account and the there is
zero available balance.
Credit from suppliers: An organisation take money from suppliers who supply raw
materials to them and that money help company for further operations.
Venture capital: This source is used as the main source which is used to build another
business. It is the kind of private equity which provide funds to business (Sharma and et.al.,
2010).
P5 Contents of profit and loss account & trading and balance sheet of ASDA

Profit and loss account is the account through which gains and incomes are credited and
losses and expense are debited, in order to show loss or net profit. Whereas balance sheet is the
statement of business capital, liabilities and assets at a particular point of time which give details
about expenditure and income.
Financial statement
Income
Statement 2015 2016 2017
Revenue 62284 54433 55917
Cost of
Revenue 64396 51579 53015
Gross
Operating
Profit -2112 2854 2902
Operating expenses
Research
and
developmen
t - - -
Sales,
general and
administrat
ive 2695 1852 1734
Staff cost - - -
Depreciatio
n and
1552 1332 1297

amortizatio
n
Other
Operating
Expenses -567 -1376 -1146
Total
Operating
Expenses 3680 1808 1885
Operating
income
before
interest and
taxes -5792 1046 1017
Non-
operating
income -584 -884 -872
Income
before
income
taxes -6376 162 145
Provision
for income
taxes -657 -54 87
Net income
from
continuing
operations -5719 216 58
Net Income -5741 138 -40
Net income
available
for common -5741 138 -40

shareholder
s
Earnings per share
Basic -0.71 0.02 0
Diluted -0.71 0.02 0
Balance
Sheet 2015 2016 2017
Assets
Current Assets
Cash, cash equivalents, and short-term
investments
Cash and
cash
equivalents 2165 3082 3821
Short-term
investments 746 3639 3297
Total cash,
cash
equivalents,
and short-
term
investments 2911 6721 7118
Accounts
receivable - 496 1475
Inventory 2957 2430 2301
Other
Current
Assets 6090 5181 4523

Total
current
assets 11958 14828 15417
Non Current Assets
Not
property,
plant and
equipment 20440 17900 18108
Equity and
other
investments - - -
Intangibles 3771 2874 2717
Deferred
Income
Taxes 514 49 707
Other
Long-Term
Assets 7531 8253 8904
Total non-
current
assets 32256 29076 30436
Total Assets 44214 43904 45853
Liabilities and stockholders' equity
Liabilities
Current Liabilities
Accounts
Payable 5076 4545 8875
Taxes
Payable 461 807 613
Current
Debt 1998 2815 2549

Other
current
liabilities 12275 11547 7368
Total
current
liabilities 19810 19714 19405
Non-current liabilities
Deferred
taxes
liabilities 199 135 88
Long Term
Debt 10520 10623 9330
Other long-
term
liabilities 6614 4806 10592
Total non-
current
liabilities 17333 15564 20010
Total
Liabilities 37143 35278 39415
Stockholders' equity
Common
stock - - 409
Additional
paid-in
capital 5094 5095 5096
Other
reserves -414 -141 601
Retained
earnings 1985 3265 332
Minority 0 -10 -24

Interests
Total
stockholder
s' equity 7071 8626 6438
Total
liabilities
and
stockholder
s' equity 44214 43904 45853
This chart shows that sales revenue budget of ASDA was 160 but actual was 144 with
variance of 16. Budgeted cost for material was 40 but it exceeds the limitation by 2 give negative
effect by minimising profit. The other cost were 52 but it exceeds by 4, which shows
shortcoming of cost. The company's profit was assumed 8 but it exceeds expectations and it was
32.
P6 Use of budget for exercising financial control in ASDA
Budget can be defined as the estimation of the revenues, cost and resources in a specific
period, which reflects reading of the future financial goals and conditions. Budget shows the
amount the money which will be needed by the business in future. Cost should be controlled in
budget in order to maximise profit, which is also helpful to make survival in the market. Budget
gives its contribution in solving debt. In business where the cost of the budget is analysed, those
businesses tends to have success and growth (Ward, 2016). Budget gives the enormous picture
of the amount and cost, which company can spend for its operations. If cost will not get
controlled, rivals of the business will get clients. If the company will not be able to control its
monetary allowance then it will be difficult for the company to make several operations. Budget
represents the detailed analysis of the company regarding its expenses in future. It also helps in
limiting expenditure of the company, plan for future growth and creates financial roadmaps.
It is necessary for ASDA to take ideal opportunity in order to spend plan appropriately
with the goal. Budget helps company to make future planning regarding the various investments.

Budgeting helps to show the accurate amount of the stock which company can arrange with the
objectives and goals regarding financial plans. Company make review of the previous year
budget in order to know how well guideline is being followed and why there is the variance in
the budget. Every budget variance does not indicate that business situation is negative. If
variance is because of unexpected growth in the revenue of sales, budget amount should be
increased by company for the purpose of increase in future sales. By using accounting software
and business packages, company can automate their process regarding budget and can keep track
of all the expenses (Zikmund and et.al., 2013). These packages will collect and gather
information from the accounting department of the company to manage and create budgets.
Budgets make establishment of priorities and set targets, it provides coordination and
direction so that objectives of the business can be turned into reality. Budget is used to assign
responsibilities to managers and allocate resources. It improves efficiency , motivates staff and
monitor performance of the company.
P7 Financial state of ASDA company
ASDA is the second largest retailer whose sales have grown to 0.5% in last 10 weeks.
Company also make use of pricing strategy in order to have better performance. Basic supply of
home shopping develops with overall industry and it is now 18.4%. Collect and click drives e-
trade development and gives more than 20,000 client each week. The strategies of ASDA keeps
on proceeding and have a venture of £1 billion and is creating a good place in the market
form quite long time. ASDA kept up appropriate value service in existing as well as
in new market.
Company makes increment in its profit last year despite of downturn in sales.
Employment cost which includes pensions and wages, fell after ASDA makes
reduction in its workforce. Savings were also made by company, as they deal
directly with producers and make expansion of its business ( Zott and Amit, 2010).
CONCLUSION
Business resources are the vital part of an organisation in order to have
developed business in the market. It is concluded from the report that ASDA needs
to prepare proper budget for the management of the business activities, and for the
purpose of the future planning. Business resources helps in the effective sales and

operation of the business activities. Company also makes use of external and
internal financial resources with the help of which they get funds for further
working. Physical and technological resources are also very essential for the
operations as well as growth of the business. It is also analysed that for a effective
completion of the job communication and employability skills are very important.
REFERENCES
Books and Journals
Chaffey, D. and White, G., 2010. Business information management: improving
performance using information systems. Pearson Education.

De Clercq, D., Lim, D.S. and Oh, C.H., 2013. Individual‐level resources and new
business activity: The contingent role of institutional context.
Entrepreneurship Theory and Practice. 37(2). pp.303-330.
Ehnert, I., Harry, W. and Zink, K.J. eds., 2013. Sustainability and human resource
management: Developing sustainable business organizations. Springer
Science & Business Media.
Grönroos, C., 2011. A service perspective on business relationships: The value
creation, interaction and marketing interface. Industrial marketing
management. 40(2). pp.240-247.
Korunka, C. and et.al., 2010. Personal characteristics, resources, and environment
as predictors of business survival. Journal of Occupational and
Organizational Psychology. 83(4). pp.1025-1051.
McGrath, R.G., 2010. Business models: A discovery driven approach. Long range
planning. 43(2). pp.247-261.
Sharma, R. and et.al., 2010, January. Business Analytics and Competitive
Advantage: A Review and a Research Agenda. In DSS (pp. 187-198).
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing
growth, profitability, and family leadership. Springer.
Zikmund, W.G and et.al., 2013. Business research methods. Cengage Learning.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective.
Long range planning. 43(2). pp.216-226.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments
and future research. Journal of management. 37(4). pp.1019-1042.
Online
Strategic Resources of a Business. 2015. [Online]. Available
through:<https://www.tutor2u.net/business/reference/strategic-resources-of-
a-business>. [Accessed on 3rd June 2017].
APPENDIX
http://www.morningstar.co.uk/uk/
http://your.asda.com/press-centre/asda-s-second-quarter-financial-results-2015