Business Resources and Hendy's Ltd Analysis

This assignment report examines the concept of business resources and explores recruitment documentation methods. It analyzes specific skills required for various tasks within Hendy's Ltd., focusing on both physical and technological resources. The report also delves into internal and external resource sources, concluding with a trading profit & loss statement and balance sheet analysis. Budgets and financial statements are interpreted to provide insights into the company's performance.

BUSINESS RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1 Recruitment documentation process used by Hendy's limited..............................................1
P2 Employability, personal and communication skills required for specific jobs......................2
TASK2.............................................................................................................................................2
P3 Physical and technological resources required by the company............................................2
P4 Sources of internal and external finance................................................................................3
TASK4.............................................................................................................................................4
P5 Contents of Trading and P&L account and balance sheet.....................................................4
P6 Use of budgets as means of exercising financial controls.....................................................5
P7 Financial statement................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business resources are the elements which are very crucial and vital for successfully
carrying out operations of business. As to perform all the activities and operation of firm in an
effective manner it is very important to allocate appropriate resources at desired places, there
needs are very high and has to be managed by every organisation in required way. Human
resources, raw material, financial, physical and technological resources are mostly used by
companies that has a direct link with operations of firms (Baxter, 2012). These factors if used in
appropriate manner will help in attaining organisational goals and objectives. Hendy's limited is
a car house which provides effective services and products to its customers. Its services are very
proper that they fulfil needs and wants of its customers. It is various resources that are must to
operate a business. Various methods and techniques that cited firm will use to manage several
resources are to be understood in this report.
TASK1
P1 Recruitment documentation process used by Hendy's limited.
Recruitment is a process through which company can attract, select and appoint an
eligible candidate for different profiles of the company. With its help of this approach an
organisation can be able to meet many people with various skills and knowledge and most
suitable will be selected for performing activities for company.
Job Advertisement
It is a notice that jobs put out for the public to see to inform them of a job vacancy they
have open. It includes job title, requirements, what makes a suitable candidate and
responsibilities. The purpose of this is to promote job vacancy they have open and to inform
people of what they need to have to be a suitable candidate and make sure people who apply do
actually fill needs for jobs.
Job Description
A job description explains what skills employees need to have to get a certain job
(Chaffey and White, 2010). It explains limitations and skills which are needed for job and duties
and responsibilities that employee will have if they get job. Purpose of this is to inform the
candidate of what they will be doing if they get job and what they need to do the job.
Person Specification
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This is an expansion of the job description. This outlines training requirements, grades
and personal qualifications of individual to actually be considered for the job. This is all about
skills and purpose of this is to outline clearly to candidates what they must have to get the job.
P2 Employability, personal and communication skills required for specific jobs.
As to perform the activities and operations for specific job skills are very much required by
candidates so that proper operations can be carried out in an organisation (Grönroos, 2011).
Following are some of skills that are very essentially opted by a person as well as this must be
present in a person so that they can perform actions as asked them to do so-
 Personal skills means the ability used by a person to properly interact with others. These
personal skills are character traits possessed by an individual. They determine how one
addresses issues to find a solution. These skills are many times learned and also it can be
inherited from their parents as well. Personal skills required in vacancy can be founded in
the job description, these are very useful to operate actions and operations of the firm in
effective and appropriate manner.
 Employability skills means a group of essential abilities that involve development of a
knowledge base, expertise level and mind-set that is increasingly necessary for success in
modern workplace. There are number of skills that a candidate must require to perform
on the given task to him. These skills will assist in building healthy relationship with
other employees as well as with peers and colleagues.
 Communication skills mean abilities in areas of language understanding, communicating
expressively, and practical language skills. As to convey one's thoughts and view it is
very essential foe a person to know the correct mode of communications so that what
he/she want to express can be effectively conveyed to other person (Hart and Dowell,
2011). Communication skills are very necessary
TASK2
P3 Physical and technological resources required by the company.
In order for business to provide products and services to its customers they will need
different in-house resources to facilitate smooth running of business. Physical resource that is
required for the operation of business is insurance, some insurances are required by law for
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businesses to have this includes employers’ liability insurance which provides insurance in case
anything happens to employees as a result of the business (Korunka and et.al, 2010).
Security can be an issue for big companies like Hendy's, this is because people find it
easier to steal from big corporations than little independent shops. Most are open 24/7 so they
hire security staff that are there around clock, it also uses security cameras and security tags (on
expensive or commonly stolen items) to facilitate work of the security guards.
Technological Resources Company uses software that is loaded on to all their technology. The
software is a programme that tells technological items, like tills, what to do, it is loaded with all
barcodes of items store sells which means employees can quickly and easily scan items and will
add it up with least human labour possible, it would not be able to operate well if it didn’t have
specific software because software keeps everything in check with what’s coming in and what’s
coming out.
Experience and skills are necessary to work as a business, skills are required for higher
up jobs in business such as management. Intellectual property needs to be kept secret as it is
required for it to ensure that new ideas they come up with to improve store will not be stolen and
used in other competing stores
P4 Sources of internal and external finance.
Internal
Retained Profit can be defined as an amount of money that is left over when all the
overhead and costs of business have been deducted. Retained profit could be used by a business
to pay shareholders as a dividend or to invest in new equipment such as a new state of art
tandoori oven to make business more efficient (Montgomery, 2011). Using profit firm won’t owe
any interest to the bank.
Personal Savings can be defined as amount of personal money that owner himself puts
into business. Personal savings could be used by a business to pay staff their wages or to reinvest
into business to revamp décor or front house of the car house.
Sales of Assets can be defined as amount of money that come from sale of stock or assets
that belong to business. Sales of assets could be used by a business to replace its equipment or to
pay for wages of new staff that company may hire for its business.
External
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Shareholders can be defined as people who have bought a share/stake within the business.
Shareholders may be used by an organisation to invest in new produce or stock for the business
like new food products, they could also be used to invest in infrastructure (Osterwalder and
Pigneur, 2010). This is a good source of finance for the organisation to use as they would not
have to get a bank loan and so would not have to pay interest back.
TASK4
P5 Contents of Trading and P&L account and balance sheet.
Particular 2014 2015 2016
Revenue 41055 45327 51243
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 1029 1150 1315
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income
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 common
shareholders 1890 2823 3419
Earnings per share
Basic 6.92 10.35 12.57
Diluted 6.89 10.29 12.46
From this P&L account it can be analysed that company is its income is very frequently
increasing by time and as seen by past 3 years. Earnings per share has increased to 12.57(2016)
from 6.98(2014). Net income has been raised by €1529 in last 3 years.
Profit and Loss account
The P&L will not tell you about underlying health of business, such as how much money it owes
or is owed and what value of its assets are. It shows how much money did business made in a
year. It records two things sales and cost/turnover. The trading account shows income from sales
and direct costs of making those sales. It includes balance of stocks at start and end of year.
There are different sections of P&L which include:1. Sales- it is the total value of what you’ve sold during period of time. The formula for it is
price time’s quantity.2. Cost of sales- these are costs that are directly related to sales you have made. It includes
raw materials or stock you have purchased to resell. It may also include cost of creating
items that you sold, including the cost of staff time if you are selling service.
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3. Gross Profit – This is sum of sales revenue minus cost of sales. It tells you how much
profit you are making directly from your sales.4. Operating Costs – These are all other costs associated with running a business, such as
rent and rates on your premises, accountancy and legal fees, and depreciation. These
costs cannot be directly linked to your sales and may not change very much even if your
sales figures were to change significantly (Zhong and Yu, 2010.).5. Net Profit – This is the gross profit minus operating costs. This is almost true profit of
your business because it’s made up of all income and all costs. The net profit is
transferred over to balance sheet
Balance 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
Current
Assets 29620 32997 39928
Total
current
assets 47038 53018 61510
Non-Current Assets
Total non- 34513 37587 40593
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current
assets
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
taxes
liabilities 141 122 124
Long Term
Debt 7255 5645 3105
Other long-
term
liabilities 4831 4557 6378
Total non-
current
liabilities 12227 10324 9607
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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
stockholders
' equity 24476 27992 30743
Total
liabilities
and
stockholders
' equity 81551 90605 102103
It has been seen that total liability of stockholders are 102103 by the year 2016. And probably it
will raise as the income statement is defined. Non-current liabilities are frequently decreasing
61510 is the total asset that company is having with it.
A balance sheet shows the value of a business on a particular date. A balance sheet shows what
the business owns and owes. It is also used as a guide for solvency of the company. Anything in
your business that has financial value is included in the balance sheet (Zikmund and et.al, 2013).
Everything is split into four groups.
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1. In first group is included everything that can be liquidated (sold for cash) including stock,
cash, and money owed by customers, are current assets. These are usually short term.
2. Second group is more long-term; including property, machinery, patents and long-term
investments these are called fixed assets, which are long term liquidation.
3. Third part of balance sheet is current liabilities and they are what the business owes in the
short-term: money owed to suppliers, taxes due, short-term loans and overdrafts.
4. The last group is long-term liabilities they are what the business owes in the long-term –
to be paid after one year, as well as capital and reserves.
P6 Use of budgets as means of exercising financial controls
There are two ways of budgeting, businesses either budget by using a zero budget or by
allocating a budget. The company uses an allocated budget to:
 Limit expenditures that are unnecessary
 Create a “financial roadmap”
 Establishing attainable targets
Financial control is exercised in planning, performance, evaluation and coordination, these are
points that are demonstrated when creating a budget:
 Planning – Demonstrated due to fact that whole point of the budget is planning for future
using break-even chart to show at which point business is no longer making a loss .
 Performance – a budget takes into account how well it has performed previously to
forecast how well this will do in future, it also increases overall performance of business
by ensuring that money from capital is invested/spent wisely (Zott and Amit, 2010).
 Evaluation – The analyst consensus is figured out by using previous data that are
evaluated by looking at difference between various variables and proper information can
be gathered.
Break-even point of HENDY'S Ltd is given below:
Contribution= Selling price- Variable cost
Contribution = £20-£9 =£11
BEP (Break Even point) = fixed cost/ contribution
BEP = £5600/£11= £509.09
P7 Financial state of the company.
HENDY'S Ltd financial state
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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
It has been analysed from the given information that company is current position is a bit
fluctuating and a drastic decision is pending upon the entire nation. As Brexit is very much
affecting organisational operations. From last 3 year the coverage of interest has been seen
increasing and decreasing. By 2017 present report is stating that 33.84 is the gross margin of
company. It has been analysed that company need to do several changes in their activities and
services which is been provided by them.
CONCLUSION
In this assignment report concept of business resources have been carried out with its
help recruitment documentation method is been understood. Different skills that are required by
a candidate are described that are very much required by them to perform a specific task.
Physical and technological resources are described required by Hendy's ltd. The sources of
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internal and external has also been described. Trading P&L and balance sheet has been
concluded in this report. Budgets and financial statement have been understood and interpreted
in an effective manner.
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