Business Information Literacy and Strategy

This assignment delves into the crucial relationship between business information literacy and strategic planning. It examines how effective information management, analysis, and application contribute to a firm's competitive advantage. Students will analyze provided case studies, academic research, and contemporary business trends to understand the practical implications of information literacy in various business contexts.

BUSINESS
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Recruitment document used in TESCO.................................................................................1
P2 The main employability ,personal and communication skills required for a job...................2
TASK 2............................................................................................................................................2
P3 Main physical and technological resources required in the operation of TESCO.................2
M1 Importance of resources........................................................................................................3
D1 How budget can improve the performance of business........................................................3
TASK 3............................................................................................................................................3
P4 Sources of internal and external finance for TESCO.............................................................3
P5 Interpretation of contents of trading and profit and loss account and balance sheet of
TESCO........................................................................................................................................4
P6 Illustrate the use of budgets as a means of exercising financial control of TESCO..............5
P7 Financial state of TESCO......................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................9

INTRODUCTION
In a business ,there are needed many types of resources for achieving the desired result or
outcome like human resources ,financial resources etc. This project is based on TESCO that
deals in grocery stores (Storbacka, 2011). This project will explain the recruitment document
used in TESCO ,main employability, personal and communication skills ,main physical and
technological resources required in the operation of business and sources of internal and external
finance in TESCO and at last it will describe the use of budget.
TASK 1
P1 Recruitment document used in TESCO
There are many types of document that are used by TESCO at the time of recruitment
which are as follows-
 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 the job title, requirements, what makes a
suitable candidate and responsibilities. It has objective to promote the job vacancy and to
inform the people about it so that they can apply and it ensures that person who apply for
the job is suitable or not.
 Job description- A job description explains what skills are required in employees to get
a certain job. It explains limitations and skills which are needed for the job and the duties
and responsibilities that the employee will have if they get the job. The purpose of this is
to inform the candidate of what they will be doing if they get the job and what they need
to do the job.
 Person specification- This is an expansion of the job description. This outline the
training requirements ,grades and personal qualification of the individual to actually be
considered for the job. This is all about skills and the purpose of this Is to outline clearly
to candidates what they must have to get the job (Granger and Schroeder, 2013).
 Application form- It is a form which companies give a candidate to fill in. They do this
so they can get the information they want and the candidate is able to expand more after
the CV they have given. The objective of this is so the company can ask the candidate
what they want and find out information they need.

P2 The main employability ,personal and communication skills required for a job
 Employability skills -It can be defined as a skills that a person needs to have in order to
get a job and be effective in the job role he or she has. Such skills allow the employees or
person to have a mutual and friendly relationship with colleagues or the manager thus if
there are any problems that arise they should have ability to resolve it. For example –
qualification ,experience related to job (Zander, McDougall-Covin and Rose, 2015).
 Personal skills- It can be defined as a skills that a person may possess but does not
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 of humour. It is good if employees or
applicants possess such skills 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 have that can help the
business. These skills are useful at every job.
 Communication skills- This skill is very important because it helps in achieving the v
desired success in every field. It can be defined as a skills that help a person convey
information to another person efficiently and with ease. Managers with good written or
verbal communication skills will benefit the business. It is because they will be able to
talk to anyone and can understand everything.
TASK 2
P3 Main physical and technological resources required in the operation of TESCO
In TECSO company there are many types of resources which are as follows-
 Physical resources- These resources are what a business needs to be able to operate and
carry out it's work (Chao and Chandra, 2012). Without physical resources a business will
not be able to pay the running costs and will also not be able to recruit employees. These
resources are divided in to following parts-
◦ Building and facilities.
◦ Materials and waste
◦ Plant and machinery.
◦ Insurance
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◦ security
◦ Emergency provision etc.
 Technological resources- These resources are things like computer
hardware ,monitors ,modems and routers (ensen, 2012). But these resources go beyond
this and there are things such as software ,music and text. These resources need to be
managed. It includes the following types-
◦ Intellectual property
◦ Accumulated experience and skills
◦ Software licenses
◦ Protection via patents and copyrights.
M1 Importance of resources
These resources need to be maintained so that TESCO can perform well in each of their
activities and roles, this also includes assuring safety in the work setting and making sure all the
machinery and plant (where manufacturing takes place; labelling, bottling, filling machines etc.)
work well and are in good condition. If TESCO will have these resources and are properly
maintained then it will help in achieving the desired result and competitive advantages over the
competitors. These resources are very helpful in achieving this.
D1 How budget can improve the performance of business
If TESCO will have budget then it will control the expenses that will help in providing
the pre specified result.
TASK 3
P4 Sources of internal and external finance for TESCO
For starting a business , it requires some financial resources. There are two sources of
finance which are as follows-
 Internal source-
◦ Personal saving- The founder of TESCO company used his own personal savings to
start up business ,he used the money to pay for war-surplus groceries which was what
the business started out selling ,he also used his own money to pay for the market
stall that he used to sell the goods (JLove and Singh, 2011) .
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◦ Retained profit-It can be defined as the amount of money that is left over when the
all the overhead and cost of business have been deducted. It could be used by a
business to pay shareholders as a dividend or to invest in new equipment for make the
business more efficient. If company have it then it need to go anywhere for
borrowings (Smith, Mills and Dion, 2012).
◦ Sales of assets- It can be defined as the amount of money that come from the sale of
stock or assets that belong to the business. Through this ,TESCO can get money
quickly and easily that can use in running of his business or invest in a new piece of
equipment.
 External sources-
◦ Shareholders- It can be defined as people who have bought a share within the
business. Shareholders may be used by a company for investing in new products or
stocks for the business like new food products. They also help in running the
business.
◦ Financial institutions- TESCO can take loan from financial institution like
bank ,venture capital etc. but it have to give security in exchange of money. For
example- papers of land etc.
P5 Interpretation of contents of trading and profit and loss account and balance sheet of TESCO
A trading ,profit and loss account can be defined as an account that highlights a business'
financial performance over a given period of time. It helps to know about gross and net profit of
the company at the end of financial year. It includes the following things-
1. Sales
2. Cost of sales- It is a direct cost incurred by business when producing the goods that they
sell (Aarikka-Stenroos and Jaakkola, 2012).
3. Purchase- Amount of goods that have been bought by the business.
4. Opening and closing stock- The amount of stock that business has at the beginning and
end of the financial year.
5. Expenses etc.- Selling expenses ,electricity bills etc.
It's main objective to know that whether company has profit or loss.
Balance Sheet- It includes the following things which is given below-
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 Fixed assets- These are those asset that have life more than one year and can not be sell
easily (Detlor and et.al., 2011).
 Current assets-These assets can be converted in to cash with in one year. Like
inventory ,debtors etc.
 Liabilities- It means the responsibility of business to pay to the creditors after certain
period of time.
 Capital- It is that amount that are invested by the owner while starting the business.
 Debtors- These are those person who have taken loan from the company and they will
pay after completion of period.
 Creditors- These are those person who will be paid by the company after certain period
of time.
 Closing Stock- Remaining goods at the end of financial year.
It helps the company to know about the financial position of the business at the end of
financial year.
P6 Illustrate the use of budgets as a means of exercising financial control of TESCO
A budget is a financial plan for the future concerning the revenues and costs of a
business. However, a budget is about much more than just financial numbers.
Budgetary control is the process by which financial control is exercised within an organisation.
Budgets for income/revenue and expenditure are prepared in advance and then compared with
actual performance to establish any variances (Gunn and Miree, 2012).
There are many management uses for budgets. For example, budgets are used to-
 Control income and expenditure
 Establish priorities and set targets in numerical terms
 Assign responsibilities to budget holders (managers) and allocate resources
 Motivate staff
 Improve efficiency
 Monitor performance
Financial control is exercised in planning ,performance ,these points should be
considered by TESCO while making budget (Bae, Rowley and Sohn, 2012)-
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 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 (Kiron and Shockley, 2011).
 Performance-A budget takes into account how well TESCO has performed previously to
forecast how well TESCO will do in future. It also increase the overall performance of
company.
 Evaluation- The analyst consensus is figured out by using previous figures that are
evaluated by looking at the difference TESCO is doing now from the time figures (Baron
and Warnaby, 2011).
P7 Financial state of TESCO
Ratio analysis is one of the ways businesses measure how they are doing and compare it
to last year or their competitors. Ratio analysis of TESCO company are as follows-
 Profitability- It shows how much profit a business can make either by looking at it as a
overtime. There are three types of finding out how much a profit makes by calculating
the-
Gross profit percentage- To calculate the percentage it will be shown as the following-
Gross profit/ turnover of the business* 100=%
2690/6700*100= 40.1% IN 2015
Compared to 2016 which was:
2750/9000*100= 30.6%
This shows that the gross pro t has reduced over the year. As the gross profit margin
presents how well the business is managing it's purchase of stock.
 Return on capital employed- It is worked out by considering the net pro t as a
percentage of the capital employed by the business. The reason this ratio is useful for
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the business is so that the can see the amount of money an investor is receiving back
on their capital as a percentage. An example from TESCO business would be-
1560/3760*100=41.5% in 2015
whereas in 2016-
1370/3060*100=44.8%
This shows that they have had no investors putting money in their bank as their
percentage as gone low from 2015-2016. If the interest rate is higher than the return of capital
employed then this shows that investors has put money within their business bank.
CONCLUSION
From the above study it is concluded that while conducting recruitment process there
have to prepare many document like job analysis ,specification etc. and in business it required
that every applicant should have some skills that will help in carrying out the job and there are
some physical resources like building ,insurance etc. And have some technological resources
like computers ,patent etc. Company have many sources for finance like
banks ,shareholders ,personal saving etc.
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REFERENCES
Books and journals
Aarikka-Stenroos, L. and Jaakkola, E., 2012. Value co-creation in knowledge intensive business
services: A dyadic perspective on the joint problem solving process. Industrial
Marketing Management. 41(1). pp.15-26.
Bae, J., Rowley, C. and Sohn, T.W. Eds., 2012. Managing Korean business: Organization,
culture, human resources and change. Routledge.
Baron, S. and Warnaby, G., 2011. Individual customers' use and integration of resources:
Empirical findings and organizational implications in the context of value co-creation.
Industrial Marketing Management. 40(2). pp.211-218.
Chao, C.A. and Chandra, A., 2012. Impact of owner's knowledge of information technology (IT)
on strategic alignment and IT adoption in US small firms.Journal of Small Business and
Enterprise Development. 19(1). pp.114-131.
Detlor, B. and et.al., 2011. Learning outcomes of information literacy instruction at business
schools. Journal of the American Society for Information Science and Technology.
62(3). pp.572-585.
Granger, M.J. and Schroeder, D.L., 2013. Integrating the Internet into the business environment.
Internet Research.
Gunn, M. and Miree, C.E., 2012. Business information literacy teaching at different academic
levels: An exploration of skills and implications for instructional design. Journal of
information literacy. 6(1). pp.18-34.
Jensen, P.D.Ø., 2012. A passage to India: A dual case study of activities, processes and
resources in offshore outsourcing of advanced services. Journal of World Business.
47(2). pp.311-326.
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Kiron, D. and Shockley, R., 2011. Creating business value with analytics. MIT Sloan
Management Review. 53(1). p.57.
Love, L.F. and Singh, P., 2011. Workplace branding: Leveraging human resources management
practices for competitive advantage through “Best Employer” surveys. Journal of
Business and Psychology. 26(2). pp.175-181.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Smith, T.A., Mills, A.M. and Dion, P., 2012. Linking business strategy and knowledge
management capabilities for organizational effectiveness. In Conceptual Models and
Outcomes of Advancing Knowledge Management: New Technologies (pp. 186-207). IGI
Global.
Storbacka, K., 2011. A solution business model: Capabilities and management practices for
integrated solutions. Industrial Marketing Management. 40(5). pp.699-711.
Zander, I., McDougall-Covin, P. and Rose, E.L., 2015. Born globals and international business:
Evolution of a field of research. Journal of International Business Studies. 46(1). pp.27-
35.
Online
Sources of finance. 2014. [Online]. Available through:
<http://www.bbc.co.uk/schools/gcsebitesize/business/finance/sourcesoffinancerev2.shtml>.
[Accessed on 5th June 2017].
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