Business Analysis and Ratios at Asda

This assignment tasks you with analyzing the business operations of Asda, focusing on several aspects. It requires examining potential health hazards associated with equipment and machinery, considering the ergonomic challenges posed by close workstations. The role of IT in advancing billing services is also a point of analysis. Furthermore, the assignment delves into the financial side by exploring various business ratios relevant to Asda's performance and competitiveness.

Business Resource

Table of Contents
INTRODUCTION.....................................................................................................................................3
P1. RECRUITMENT DOCUMENTATION FOR SELECTED ORGANISATION............................3
P2. DESCRIBE THE MAIN EMPLOYABILITY, PERSONAL AND COMMUNICATION
SKILLS REQUIRED WHEN APPLYING FOR A SPECIFIC JOB ROLE........................................4
P3: DESCRIBE THE MAIN PHYSICAL AND TECHNOLOGICAL RESOURCES REQUIRED
IN THE OPERATION OF A SELECTED ORGANISATION..............................................................4
P4. DESCRIBE SOURCES OF INTERNAL AND EXTERNAL FINANCE FOR SELECTED
BUSINESS.................................................................................................................................................5
P5 INTERPRET THE CONTENTS OF A TRADING AND PROFIT AND LOSS ACCOUNT AND
BALANCE SHEET.....................................................................................................................................5
P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF EXERCISING BREAK EVEN......6
P7- ILLUSTRATE THE FINANCIAL STATE OF A GIVEN BUSINESS..........................................7
CONCLUSION..........................................................................................................................................7
REFERENCES..........................................................................................................................................9

INTRODUCTION
The report is undertaken in order to make emphasis on the resources which is needed by
businesses in order to effectively and efficiently undertake the operations further which it is
essential to manage the role of all the resources into the organization. Thus for this purpose the
organization taken into account is Asda.
P1. RECRUITMENT DOCUMENTATION FOR SELECTED
ORGANISATION
A job description sets out the purpose of a job, where the job fits into the organisation
structure, the main responsibilities of the job and the key tasks to be performed. A job
description will set out how a particular employee will fit into the organization. Diverse factors
are there which need to be referred effectively such as job title, responsibilities, role and duties.
A job description could be used as a job indicator for applicants for a job (Brooks, Heffner and
Henderson, 2014). Alternatively, it could be used as a guideline for an employee and/or his or
her line manager as to his or her role and responsibility within the organization.
If Asda decides on hiring employees for their many departmental stores situated across
various branches. There can be a number of ways to advertise this vacancy out of the many a few may
be classified as newspaper, posters, website adverts. Advertisement should state the job
description and should specify the duties the position holds. It should also state the educational
qualification which is essential for the applicant. After the vacancy has been advertised,
interested applicants will send their CV to the given address which will state their name,
educational qualification, work experience, career objective and expectation (Chuang and
Huang, 2015). On the basis of approval the further requirements are being taken into account.
Before the interviews take place the interviewees will have to decide what questions they will
ask, these will be found by HR from looking at previous interview questions for similar roles or
the line manager will produce specific questions. All questions will be agreed on before the
interview in order to prevent similar questions being repeatedly asked. The same questions will
be asked to all candidates internal or external; this helps to keep it fair and will make it easier to
find the best candidate for the job. The responses to the questions are recorded and scored from
1-4 by each interviewee and then added up and compared for all candidates. Once the interviews
have been completed the chairperson from the interview panel summarises the scores of the
candidates on the candidate grading forms and a decision is then made based on the scores
(Eriksson and Kovalainen, 2015). After the offer letter has been accepted by the new employee, a

contract of employment will be drawn up by Asda, describing what is expected of the new
recruit. The contract of employment shall be a legally binding agreement between google and the
new employee.
P2. DESCRIBE THE MAIN EMPLOYABILITY, PERSONAL AND
COMMUNICATION SKILLS REQUIRED WHEN APPLYING FOR A
SPECIFIC JOB ROLE
Initially an employer will look at qualifications a candidate has and whether it is
suitable and fitting to the vacant job position. Even though education qualification is only a part
of the requirement an employee looks at while hiring but it is a vital part. Having educational
values shows that one has placed in an enormous amount of effort and is concerned for a
prosperous future. But sometimes the qualifications don’t matter depending on the particular
objective considering this case Ada require too much educational qualified with an advanced
personal skills among candidates (Eriksson and Kovalainen, 2015). Another vital and effective
quality an employer loo's for in a candidate is their experience in the relevant field. In-fact
to some employers this is the sole requirement to employ a candidate and ignores the fact
whether they have advanced education. However, minimal standard has been set out to have
better hiring and improving the overall outcome.
P3: DESCRIBE THE MAIN PHYSICAL AND TECHNOLOGICAL
RESOURCES REQUIRED IN THE OPERATION OF A SELECTED
ORGANISATION.
As Ada is a retail company have a lot of distribution all around the stores. Machinery and
equipment help in delivery of products that they create. There would be equipment to help get
the products from storage. Along with this, machinery is used to help have better transfer of
goods within store. Asda will need to make sure that they abide by the health and safety laws and
provide their employees with safety equipment as some of the equipment and machinery may be
hazardous to health (Eriksson and Kovalainen, 2015). Ergonomics also comes into action at
Asda because all of the work stations being close together and the employees being able to
access what they need in a little area. Moreover, IT equipment are also essential as it assist in
advancing the billing services.
At Asda, there buildings are all in a small area so that it is easy to transport the cars that
they are building around the stores. A lot of the buildings have been there for a long time. They
have maintained the building well due to the amount of people that work there compared to other

stores which are mainly populated by unnecessary aspects. Asda also make sure that they secure
the business well by placing alarms around the building, they would also lock up the stores at
night so no one could get in and take anything (Visnjic, Wiengarten and Neely, 2016). Asda need
to make sure that they manage their waste properly making sure they recycle as many unused
materials as they can as they will have a lot of spare goods. To make sure that manage their
waste in the best way possible, they place recycle bins in the areas of the stores.
P4. DESCRIBE SOURCES OF INTERNAL AND EXTERNAL FINANCE
FOR SELECTED BUSINESS.
Some sources of finance are short term and must be paid back within a year. Other
sources of finance are long term and can be paid back over many years. Internal sources of
finance are funds found inside the business. For example, profits can be kept back to finance
expansion. External sources of finance are funds found outside of the business. In addition to
this, it can be said that bank loan can be concerned as source (Visnjic, Wiengarten and Neely,
2016). Personal saving is most often an option for small businesses where the owner has some
savings available to use as they wish. Along with this, work capital is short-term money that is
reserved for day-to-day expenses such as stationery, salaries, rent, bills and invoice payments.
Limited companies could look to sell additional shares, to new or existing shareholders, in
exchange for a return on their investment (Eriksson and Kovalainen, 2015). Debenture loans,
with fixed or variable interest, which are usually secured against the asset being invested in, so
the loan company will have a legal shared interest in the investment. Trade credit is a way of
short borrowing and or delaying payments to suppliers so that the business cycle for Asda can run
smoothly. Delaying payments for as long as possible can ruin the relationship between the supplier
and the business. This may also affect the sales and discounts that the supplier may offer in the
future.
P5 INTERPRET THE CONTENTS OF A TRADING AND PROFIT AND LOSS
ACCOUNT AND BALANCE SHEET
Budget is a summary of likely income and expenses for a given period. It helps
company determine whether management can grab that bite to eat or should head home for a
bowl of soup. It is typically created using a spreadsheet, and it provides a concrete, organized,
and easily understood breakdown of how much money you have coming in and how much you
are letting go. It’s an invaluable tool to help you prioritize your spending and manage money—
no matter how much or how little company have (Visnjic, Wiengarten and Neely, 2016).

Budgets are used so people can give themselves a spending limit whether this to save up some
money for something in the future or they are splashing out on something like a new mobile
phone or a car – then they will give themselves a limit so they don’t spend too much money.
Business Ratios includes dozens of standard business ratios calculated from business plan
financials, and used and expected by bankers, financial analysts, and investors. It also includes a
column of statistical indicators for the specific type of business. This industry information is
classified and categorized by Standard Industrial Classification (SIC) codes. The data involved
comes from the database of Integra Information System, a leading provider of industry-specific
economic information. A ratio is used to determine a lot of different things in a business from
how much they spend to how much income that they are receiving. One of the main aims of
operating a business is to make profit (Barkemeyer and et.al, 2014). Profit is calculated in a
Trading and Profit and Loss Account. This is divided in a Trading Account which calculates the
Gross Profit for the period, and a Profit and Loss Account which calculates Net profit for the
period.
The Trading Account ─ calculates the profit made strictly from trading activities. Trading
involves buying and selling. In the trading account the cost of goods sold is subtracted from Net
Sales for the period to calculate Gross Profit.
P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF
EXERCISING BREAK EVEN
Number of customers in the ratio of Sales Revenue and Total Cost.
50 x £25,000 = £1,250,000
100 x £25,000 = £2,500,000
150 x £25,000 = £3,750,000
200 x £25,000 = £5,000,000
250 x £25,000 = £6,250,000
300 x £25,000 = £7,500,000
350 x £25,000 = £8,750,000
400 x £25,000 = £10,000,000
450 x £25,000 = £11,250,000

As you can see from these results, Asda only need 350 customers to break even seeing as
the total costs of the store are £8,000,000. Budget at Asda, like all businesses/charities etc. have
budgets. These budgets are made by looking at how much profit the company makes each year.
If the store had 400 customers then they would make an extra £2,000,000 a year. This would
mean that their budget would be a lot higher than if they had 350 customers and made £750,000
a year.
P7- ILLUSTRATE THE FINANCIAL STATE OF A GIVEN BUSINESS
Current liabilities
£1,685,838
£7,577 = £222.4
£561,394
£8,968,431 x 10 = 6.25%
Above statement shows the gross profit as a percentage in relation to turnover.
Performance
Sales - £561,394
Total assets - £11,685,838 = £0.05
The solvency ratio indicates whether a company's cash flow is sufficient to meet its short-
term and long-term liabilities. The accomplishment of a given task measured against present
known standards of accuracy, completeness, cost, and speed. In a contract, performance is
deemed to be the fulfilment of an obligation, in a manner that releases the performer from all
liabilities under the contract.
CONCLUSION
According to analysis, it can be concluded that job description sets out the purpose of a
job, where the job fits into the organisation structure, the main responsibilities of the job and the
key tasks to be performed. Asda is a retail company have a lot of distribution all around the
stores. Machinery and equipment help in delivery of services. Personal saving is most often an
option for small businesses where the owner has some savings available to use as they wish.
Along with this, work capital is short-term money that is reserved for day-to-day expenses such

as stationery, salaries, rent, bills and invoice payments. Limited companies could look to sell
additional shares, to new or existing shareholders, in exchange for a return on their investment.
Asda will need to make sure that they abide by the health and safety laws and provide
their employees with safety equipment as some of the equipment and machinery may be
hazardous to health. Ergonomics also comes into action at Asda because all of the work stations
being close together and the employees being able to access what they need in a little area.
Moreover, IT equipment are also essential as it assist in advancing the billing services. Business
Ratios includes dozens of standard business ratios calculated from business plan financials, and
used and expected by bankers, financial analysts, and investors. It also includes a column of
statistical indicators for the specific type of business.

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