Business Capabilities and Financial Sources

The assignment delves into essential business capabilities and skills required for success. It examines various financial sources available to companies, explaining how businesses can effectively utilize funding to operate and grow. A specific company's financial statements are analyzed, providing insights into its actual financial position and performance.

Business Resources

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Describe the recruitment documentation used in a selected organisation.............................1
P2 Describe the main employability, personal and communication skills required...................2
TASK 2............................................................................................................................................2
P3 Describe the main physical and technological resources required in the operation .............2
TASK 3............................................................................................................................................3
P4 Describe sources of internal and external finance for a selected business.............................3
P5 Interpret the contents of a trading and profit and loss account and balance sheet................3
P6 Illustrate the use of budgets as a means of exercising financial control ...............................7
P7 Illustrate the financial state of a given business.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the current modern era, for getting success in business life employers has always
focuses on to adopt smart technologies and methods. It is very essential to implement a better
management system in internal firm environment for all operations can effectively manage and
proper utilisation of resources (Baxter, 2012). This research report will be discussing about basic
and necessary skills in employment such as employability, personal and communication skills.
Also there will be discussing about two type of financial sources such as internal and external, by
which company can take fund for systematically run there business in competitive market.
Hendy group Ltd. Operates as the dealer of new and used vehicles in UK. The company also
provides parts, accessories and maintenance and services to customers.
TASK 1
P1 Describe the recruitment documentation used in a selected organisation
Job description – Customer service managers at Hendy's Ltd are there to ensure that
customers are satisfied with the service they are being given, they also need to ensure that other
staff are complying with the businesses policy to provide excellent customer service. Customer
service managers will also help develop and implement the specifics of the organisations
customer service policy, find ways to measure customer satisfaction, improve services, manage a
team of customer services staff and handle enquiries from customers (Breton‐Miller and Miller,
2013).
Requirements of the job that Hendy's Ltd want the customer service employees to have:
Soft skills
 Communication skills – Needs to be sufficient enough to be able to help and inform
customers and instruct colleagues on customer service policies
 Listening skills – To understand what customers need and listen to input from other
colleagues on how to improve customer service
 Problem-solving skills – Be able to address any issues that are bought up from either
colleagues or customers
 Confidence, patience, politeness, tact and diplomacy
 Motivational skills – Helps with the ability to lead a team of customer service assistants
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 Creative thinking skills – Gives the ability to come up with new improvements to the
customer service policies
 An ability to work well under pressure
 Organisational skills and planning skills
P2 Describe the main employability, personal and communication skills required
Employability skills: It can be defined as a skills that a person needs to have in order to
get a job and/or be effective in the job role he or she has. Such skills allow the employee or
person to have a mutual and friendly relationship with colleagues or the manager thus if there are
any problems that arise they will be resolved efficiently (Chaffey and White, 2010).
Personal skills: This can be defined as a skills that a person may possess but doesn’t
necessarily need when applying for a specific job role. There are many examples of such skills
which would benefit the business including; speaking different languages, trustworthy and
having a sense a humour. It is good if employees or applicants possess such sills when applying
for a job as it will make them more likely to get the job as it shows the employer other skills that
the employee/applicant have that can help the business; these skills are useful for a lot of
different jobs (Ciabuschi, Perna and Snehota, 2012).
Communication skills: Communication skills can be defined as a skills that help a
person convey information to another person efficiently and with ease. Managers or employees
with good written or verbal communication skills will benefit the business; this is because they
will be able to talk and understand each other properly.
TASK 2
P3 Describe the main physical and technological resources required in the operation
There will be define mainly two type of resources which are stated under following:
Physical resources
At Hendy's Ltd. building they use is essential towards the day to day running of the
business. In order for the business to provide car accessories and services to its customers they
will need different resources to facilitate the smooth running of the business (Grönroos, 2011). A
building on its own would not be enough for the store to be fully operational, they need
materials. Another physical resource that is required for the operation of the business is
insurance, some insurances are required by law for businesses to have this includes employers’
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liability insurance which provides insurance in case anything happens to employees as a result of
the business, cited company also pays for public liability insurance that covers any injuries to the
public that are caused by negligence.
Technological resources
Hendy's Ltd. uses software that is loaded on to all their technology. The software is the
programme that tells the technological items, like tills, what to do, it is loaded with all the
barcodes of items the store sells which means employees can quickly and easily scan items and
the tills will add it up with the least human labour possible, cited organisation would not be able
to operate well if it didn’t have the specific software because the software keeps everything in
check with what’s coming in and what’s coming out (Hahn and Gold, 2014).
TASK 3
P4 Describe sources of internal and external finance for a selected business.
Internal sources of finance The founder of Hendy's Ltd. used his own personal savings
(owner’s savings) to start up business, he used the money to pay for war-surplus accessories
which was what the business started out selling, he also used his own money to pay for the
market that he used to sell the services he bought. The founder then used profits (capital from
profits) of the business to expand the company which means that the profits would increase.
External sources of finance cited company now is a medium company so not all forms of
external finance don’t apply to them, such as money from banks, building societies, government
grants and money from friends and family. Hendy's could’ve got money from banks in the form
of a business loan or the use of an overdraft facility on the business account, an overdraft facility
means that you can withdraw money from your account up to a point without having money in it,
this would be set when the account is set up and is called an overdraft limit (Laumer, Eckhardt
and Weitzel, 2010).
P5 Interpret the contents of a trading and profit and loss account and balance sheet
PROFIT AND LOSS STATEMENT
particular 2014 2015 2016
Revenue 41055 45327 51243
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Cost of Revenue 33310 36113 40256
Gross Operating
Profit 7745 9214 10987
Operating expenses
Research and
development 1721 2075 2370
Sales, general and
administrative 4415 4819 5335
Staff cost - - -
Depreciation and
amortization - - -
Other Operating
Expenses 504 199 -1
Total Operating
Expenses 6640 7093 7704
Operating income
before interest and
taxes 1105 2121 3283
Non-operating
income 1029 1150 1315
Income before
income taxes 2134 3271 4598
Provision for
income taxes 136 311 1055
Net income from
continuing
operations 1998 2960 3543
Net Income 1890 2823 3419
Net income
available for 1890 2823 341
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common
shareholders
Earnings per share
Basic 6.92 10.35 12.57
Diluted 6.89 10.29 12.46
Interpretation of P&L Account
As per the result of profit and loss account of HENDY'S Ltd. There were shows last three
years statements in tabular formate, which is categorised into two major parts one is operating
expenses and another one is earning per share of cited company (Montgomery, 2011). Last three
Revenue of the enterprise is regularly increase such as 2014- 41055, 2015- 45327 and 2016-
51243. along with this gross profit is also increased in last three years 2014- 7745, 2015- 9214
and 2016- 10987. P&L accounts helps to shows actual and reliable financial position of company
as per that will easy to analyse.
BALNACE SHEET
2014 2015 2016
Assets
Current Assets
Cash, cash equivalents, and short-term investments
Total cash,
cash
equivalents,
and short-
term
investments 14027 15893 15761
Accounts
receivable - - -
Inventory 3391 4128 5821
Other 29620 32997 39928
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Current
Assets
Total
current
assets 47038 53018 61510
Non Current Assets
Total non-
current
assets 34513 37587 40593
Total Assets 81551 90605 102103
Liabilities and stockholders' equity
Liabilities
Current Liabilities
Accounts
Payable 7094 8295 9533
Taxes
Payable 162 219 321
Current
Debt 28501 34412 39796
Other
current
liabilities 9091 9363 12103
Total
current
liabilities 44848 52289 61753
Non-current liabilities
Deferred 141 122 124
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taxes
liabilities
Long Term
Debt 7255 5645 3105
Other long-
term
liabilities 4831 4557 6378
Total non-
current
liabilities 12227 10324 9607
Total
Liabilities 57075 62613 71360
Stockholders' equity
Common
stock - - -
Additional
paid-in
capital 3785 3785 3785
Other
reserves 20381 21653 23643
Retained
earnings 1890 2823 3419
Minority
Interests 422 482 152
Total
stockholder
s' equity 24476 27992 30743
Total
liabilities
81551 90605 102103
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and
stockholder
s' equity
Interpretation of Balance sheet
Balance sheet of HEDNY'S Ltd., is assist to show actual current assets and liability. As
per that easy to determine how much company liable to pay as well as how much having their
own equity fund. Balance sheet mainly divided into two parts such as current assets and current
liability. Last three years of current assets is 2014- 47038, 2015- 53018 and 2016 – 61510. Along
with this current liability is 2014- 44848, 2015- 52289 and 2016- 61753. as compare with current
assets of this company's result firm is more liable to pay (Wu, 2010.).
P6 Illustrate the use of budgets as a means of exercising financial control
An allocated budget it the opposite to a zero-based budget, an allocated budget is what
cited company uses, it is figured out by deciding upon the amount of money that is the budget
and then using analyst figures of forecasted costs, revenues and resources. A budget is an
estimate of the costs, revenues and resources that are going to be needed in the future over a set
period of time. Hendy's uses an allocated budget to:
 Get all the facts the business needs to ensure that the money they have is going to the
right place to ensure that the company grows as quickly and efficiently as possible
 Limit expenditures that are unnecessary
 Create a “financial roadmap”
Financial control is exercised in planning, performance, evaluation and coordination,
these are points that are demonstrated when creating a budget:
 Planning – Demonstrated due to the fact that the whole point of the budget is planning for
the future using the break-even chart to show at which point the business is no longer
making a loss
 Performance – A budget takes into account how well cited company has performed
previously to forecast how well Hendy's will do in the future (Zachary, 2011).
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 Evaluation – The analyst consensus is figured out by using previous figures that are
evaluated by looking at the difference Hendy's is doing now from the time the figures.
P7 Illustrate the financial state of a given business
Financial statement of HENDY'S Ltd
Margins % of sales 2015 2016 2017
Revenue 100 100 100
Gross margin 33.59 34.78 33.84
Operating margin 20.3 20.76 20.2
EBT margin 19.87 20.02 19.29
Profitability 2015 2016 2017
Net margin% 15.87 15.96 15.51
Assets turnover 1.8 1.81 1.73
Return on assets% 28.68 28.91 26.83
Return on Equity% 208.75 210.41 154.52
Return on invested
capital%
58.47 56.89 48.78
Interest Coverage 26.97 27.21 21.9
Interpretation
HENDY'S Ltd of total revenue is 2017 is £100, in which gross margin of the company is 33.84
of 2017 and EBT margin is 19.29. on the other hand, net margin is 15.51 of 2017 in percentage,
return on assets is 26.83 and return of equity is 154.52 in percentage. This financial statement
help to define margin of sales in % and profitability of the company in the financial term ( Zott
and Amit, 2010).
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CONCLUSION
As per above mention this research report is based on business resources, it is very
essential to mange all operations and resources in organisation because its directly impacting on
production level of company as well as profit level. This research report has been discussed
about important capabilities and skills in employment and also major financial sources. By which
company can take fund from them and effectively run their business while using better and smart
techniques. There has been explained about actual financial statement of the cited company as pr
that easy to identify actual financial position and status.
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REFERENCES
Books and Journals
Baxter, R., 2012. How can business buyers attract sellers' resources?: Empirical evidence for
preferred customer treatment from suppliers. Industrial Marketing Management. 41(8).
pp.1249-1258.
Breton‐Miller, L. and Miller, D., 2013. Socio emotional wealth across the family firm life cycle:
A commentary on “Family Business Survival and the Role of Boards”.
Entrepreneurship Theory and Practice. 7(6). pp.1391-1397.
Chaffey, D. and White, G., 2010. Business information management: Improving performance
using information systems. Pearson Education.
Ciabuschi, F., Perna, A. and Snehota, I., 2012. Assembling resources when forming a new
business. Journal of Business Research. 65(2). pp.220-229.
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.
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.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
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. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning. 43(2). pp.216-226.
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