Managing Physical and Technological Resources: Assignment

Business Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Recruitment documentation used within organisations.........................................................3
P2 Communication, employability and personal skills required by individual when applying
for specific job role.....................................................................................................................5
P3 Technological and physical resources required in operations of firm...................................6
P4 Internal and external sources of finance for raising funds for business.................................7
TASK 2............................................................................................................................................8
P5 Interpretation of profit and loss, balance sheet and trading account of company..................8
P6 Use of budget for exercising financial control of firm........................................................11
P7 Analysis of financial position of business...........................................................................12
CONCLUSION ............................................................................................................................14
REFERENCES..............................................................................................................................14

INTRODUCTION
Business resources are very crucial in every company. Company requires resources such
as financial, human, technological resources. Thus as a result they can easily manage these
resources and can increase the efficiency level of company (Wahl and Prause, 2013). As a result
they can easily earn more revenues. Hence it can easily increase the market share. Report
explains about the Blue Inc which is a retail firm which is located in United Kingdom.
Assignment describes about the methods through which resources are managed and the purpose
of managing physical and technological resources. It also explains about the sources of funds and
interpretation of financial statements.
TASK 1
P1 Recruitment documentation used within organisations
Blue Inc is one of the leading and fastest growing clothing retail chain of United
Kingdom. At present, around 250 stores of company are operated in all across the across the
country and is growing speedily in young fashion market. In every business concern, one of the
essential part is its human resource which should be skilled and knowledgable enough to carry
out operations and activities of business in an effective and efficient manner. This will help firm
in attaining its business objectives and leads it towards high growth and success. So, manager of
Blue Inc. requires to hire skilled and competent workforce (Obschonka, Silbereisen and Schmitt‐
Rodermund, 2012). For this, some documentations are required which are as follows:
Job Description
Job Title: Store manager Store Name: Blue Inc.
Type of Role: Permanent Hours: Full Time
Salary: Up to £27000 p.a. Last Date: 12/07/2018
Working with Blue Inc.
Blue Inc is the company that deals in clothing and is a rapidly growing fashion retail chain of
United Kingdom. The firm is performing its business operations and activities by internet path
as well. Thus, there is a good and proper management of work therefore, several opportunities
are given by enterprise to its manpower in terms of providing them growth and development
along with enhancing their skills and abilities. For attaining operational goals, Store manager

are require to work with manager of Blue Inc in proper way.
Competencies:
 Decision-making & judgment
 Good communication
 Team work
 Highly skilled and knowledgable
 Customer focus
Job Duties:
 Communicate clearly all the information with staff members.
 Store firm's resources in systematic and proper way so that it can be used later.
 Conduct sessions with sales representatives to convey product knowledge to employees.
 Address customer's issues in proper way and on time.
Requirements :
 MBA(Marketing)
 4+ Years of experience in retail marketing area
Note: Interested prospect can drop their CV to official website of organisation.
PERSON SPECIFICATION
Organisation: Blue Inc.
Job profile – Store Manager
Qualification – MBA or PGDM (in Marketing)
Essential Criteria:
 Keen knowledge of tools and skills related to management.
 Being able to identify potential customers and have skills to made sales effective.
 Strong leadership skills is required.
 Some additional skills like strong interpersonal, communication and motivational skills
Desirable criteria:
 4+ years’ experience
 Excellent knowledge related to procedures and policies of retail market.

 Good personality
P2 Communication, employability and personal skills required by individual when applying for
specific job role
Performing tasks in proper manner requires some skills which are very essential for an
individual. These skills assists in their growth and development as well as allow them to do their
work properly. Skilled manpower helps in accomplishing targets and objectives of company.
Several skills require by candidate to apply for particular job are mentioned as follows:
Employability skills: These are the skills that are very essential for workforce as it assists
them in performing their job duties in proper way (Hahn and Gold, 2014). These skills also helps
in maintaining good relations with staff members as well as customers. By these skills,
individual is enable to do their work on time and attain targets of company in proper manner.
These skills includes:
 Suitable qualifications
 Efficiency to meet targets
 Knowledge of products & services Preferred experiences
Personal skills: This kind of skill enables individual to express themselves in front of
others in effective way. For performing duties appropriately, with professional skills, personal
skills are required as well. Some of these are as follows:
 Patience & Hard Working
 Interview Skills
 Negotiation skills Team Working skills
Communication skills: These skills are necessary for communicating message in proper
way so that others can understand it clearly (Zachary, 2011). It assists in maintaining strong
relationship with others within firm.
For performing duties of store manager in proper way, it is essential for an individual to
have all the skills that are mentioned above.

P3 Technological and physical resources required in operations of firm
Blue Inc. is one of the largest Fashion retail store based in UK and has around 250 stores
in UK. It offers product from casual to formal wears.
Physical Resources:-
Physical resources includes tangible items that help organisation to carry out its
operations in an efficient manner (Laumer, Eckhardt and Weitzel, 2010). Blue Inc. uses physical
resources to increase sales and to improve service delivery. Physical resources of company
 Building :-
Businesses need a place to operated their operations . Blue Inc require buildings
so that they can fulfil their business requirement and excess supplies can find place in
warehouses.
 Facilities:-
Facilities refers to arrangement at stores of Blue Inc. that is maintained so that
customer get product for what he is searching for. As company also operate its operation
online so it must arrange its product in a manner so that customers can find product of his
choice.
Technological resources:-
Technical resources are intangibles that help organisation to perform its operations more
effectively. Every technological system includes seven resources such as information,machine
and tools, material, people, energy, capital and time (Grönroos, 2011). Technological resources
are
1. Point of sale:-
Point of sale is an software that manages the transactions for Blue Inc. which
includes credit card processing and sales transactions. It help in reducing errors and speed
up transactional process.
 Customer relationship manager(CRM):-
CRM help Blue Inc. to track their customers and maintain their details that is used
to interact with customers. It record and analysis customer data to retain customers and
to increase sales.

P4 Internal and external sources of finance for raising funds for business
Sources of finance are debt, debenture, retained earnings, term loans, working capital
loans, letter of credit, venture funding etc. these source of funds used in different situations.
Organisation categories on the ownership, time period and source generation. But in this
question the organisation option source generation method. In which includes internal and
external sources of finance (Wu, 2010).
Internal sources of finance:
means the wealth generated from within the organisation. For example, by sale the assets
which is not required for the organisation, cash in hand of the firm, deferred taxation, retained
earnings etc.2. Retained equity earnings: This is the internal retained money of the shareholders to
reinvest in the business. It is done by the manager to safeguard the interest of the
shareholders.3. Depreciation provisions:It is made to repair or renew the machinery of the organisation.
In which organisation make an account for provision of depreciation and then putting the
money into it so organisation can use in case of uncertainty.4. Deferred taxation: means there is a time gap between earnings and taxation. So firm
create a provision for it so company can use that money for delay payment.5. Personal fund savings: It is the owners fund, in which they includes the individuals
savings.
External sources of finance:
means the fund raised from outside the organisation. Like fund from equity capital,
preference capital, debentures, term loan, venture capital leasing etc. Saving: what ever the saved by people use to invest in the different sources like equity,
debentures , bond, stocks, futures and option etc. and from all that company generate
income. Loan:fund can be raised through borrowings and which can be done from different
sources like: friends and relatives, money leading institution, commercial and other banks
(Zott, Amit and Massa, 2011).
 Shares:Money raised by issuing the shares to the public. Company can raise through
initial public offer and further public offer. In which number of authorised shares can be

issued and the value of each shares is specified and after that the capital collect out from
the public.
TASK 2
P5 Interpretation of profit and loss, balance sheet and trading account of company
Gross profit:
Formula for computing:
Gross profit: Total sales- COGS (Cost of good sales)
: 87912-38481=49431
Gross profit margin:
Gross profit margin: Gross profit /Total revenue *100
: 49431/87912*100=56.22%
Net profit:
Income statement
Particular Amount
Sales 87912
Less: COGS 38481
Gross profit 49431
Less: Overhead expense
Wages 28566
Carriage outwards 139
Rent 4400
Rates and insurance 3561
Advertising 1369
bad debts 879
Fixed expenses as depreciation 120
Van 2500
Total overhead exp, 41534
Net profit 7897
Net profit margin:

Net profit margin: Net income / Total sales *100
: 7897/87912*100= 8.98%
Current ratio:
Current ratio: Current assets/Current liabilities
: 72000/50000=1.44
Return on capital employed:
ROCE: EBIT/ capital employed *100
: 7897/130000+75000*100
: 3.85%
a):
Fixed assets:
Land and building 150000
Machinery 180000
Vehicles 90000
Total fixed assets 420000
b):
Current assets
Stock 34000
Debtors 26000
Bank 12000
Total current assets 72000
c)
Current liability
Trade creditor 18000
Taxation 19500
Dividends 12500
Current liability 50000
d):
Particular Amount
Fixed assets:

Land and building 150000
Machinery 180000
Vehicles 90000
Total fixed assets 420000
Current assets
Stock 34000
Debtors 26000
Bank 12000
Total current assets 72000
Total Assets 492000
e):
long term liability
Long term loans 75000
Capital 130000
Net assets employed 205000
P6 Use of budget for exercising financial control of firm
Calculation of contribution
Selling price ₤15.00
Less: various costs
Direct materials ₤2.50
Direct labour ₤5.50
Variable overhead ₤1.00
Contribution 6
Break-even point: FC/contribution
10000/6= 1666 units.
(a): In case there is increase in Direct material costs
An increase in direct material

costs to ₤3.00 per product
Selling price 15
Less: various costs
Direct materials 3
Direct labour 5.5
Variable overhead 1
Contribution 5.5
Break-even point= 10000/5.5=1818 units
(b): Reduction in selling price:
Calculation of contribution
Selling price 14
Less: various costs
Direct materials 2.5
Direct labour 5.5
Variable overhead 1
Contribution 5
Break-even Point: 10000/5=2000 units
(c): An increase in fixed cost:
Calculation of contribution
Selling price ₤15.00
Less: various costs
Direct materials ₤2.50
Direct labour ₤5.50
Variable overhead ₤1.00
Contribution 6
BEP: 11000/6=1833 units
(d): A decrease in variable overhead
Calculation of contribution
Selling price 15

Less: various costs
Direct materials 2.5
Direct labour 5.5
Variable overhead 0.75
Contribution 6.25
BEP: 10000/6.25=1600 units.
Unit sold Total cost Total revenue
1666 14994 24990
1818 17271 27270
2000 18000 28000
1833 16497 27495
1600 14000 24000
P7 Analysis of financial position of business
a) Identification of problems:

After proper evaluation of cash flow, the main problem observed is lack of adequate
funds to pay its liabilities. The issues face by firm are:
 Increase in total expenses.
 Purchases are more than sales.
 Non payment or late payment to suppliers.
b) Main causes of problem:
Inefficiency of manpower along with high expenses of firm are seen as the main cause of
arising problem (Hart and Dowell, 2011). This will results in increasing total flows of cash. High
purchases is the other cause which results in cash deficit.
c) Suggested ways of enhancing cash flows:
For improving cash flows and minimise cash deficit, some suggested ways are defined
below:
 Increase in total cash receipts.
 Eliminate unnecessary expenses.
 Monitor cash flow on constant basis.
CONCLUSION
It has been concluded from above report that business resources are very crucial in every
firm. Through proper managing all business resources company can easily handle all operations
effectively and efficiently. Thus as a result company can maintain positive image in market.
Hence it performs various methods to manage all human resources in organization. Various
objectives are there for managing physical and technological resources. Various sources of
finance are used so that they can be invested in a useful purpose. Financial statements are
interpreted so that firm can find the profits or losses in the firm. Thus they can take corrective
steps if company faces losses.

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