Business Resource Acquisition and Management

This assignment focuses on the critical role of resources in business operations and strategy. It requires a comprehensive understanding of resource-based theories, types of resources (tangible and intangible), methods of resource acquisition, governance issues in resource partnerships ('base of the pyramid'), energy resource allocation, business model innovation, and the impact of personal characteristics and environmental factors on business survival.

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................4
P6 Illustrate the use of budgets as a means of exercising financial control ...............................8
P7 Illustrate the financial state of a given business.....................................................................8
CONCLUSION................................................................................................................................9
.........................................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
In the current scenario, businesses are affects by various factors it is essential to evaluate
them with the help of smart techniques and methods. For completing the business projects and
achieving targets so there has to be properly use of all resources with better management system.
This research project will be discussing about recruitment documents which helps in identifying
candidate's capabilities and skills as per that employer will take decision to appoint them in
organisation (Bae, Rowley and Sohn, 2012). Also there will be explained about major
capabilities which all are required in business firm as well as discussing regarding financial
statements of Hendy's company. It shows actual financial power and status of firm.
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 (Baxter, 2012).
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
 Creative thinking skills – Gives the ability to come up with new improvements to the
customer service policies
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 An ability to work well under pressure
 Organisational skills and planning skills
P2 Describe the main employability, personal and communication skills required
Employability skills Qualification in management studies, so they understand how to be a
manager and know what roles they need to fulfil. Experience, gives knowledge on how to deal
with situations that can’t be taught, if Hendy has a choice between someone who has no
managerial experience and someone who has had previous experience they are going to pick the
one who has had experience because it shows that the person is able to do the job they are asking
them to do (Carroll and Shabana, 2010).
Personal strengths are very important in personal growth and development. They are the
attributes that define us as individuals. Positive attributes could include being honest, kind,
patient, respectful, motivated, confident and self-disciplined. While negative attributes could
include being dishonest, impulsive, cruel, self-serving and obnoxious.
Overall, personal strengths are the personal skills we use in achieving goals. They are
also the skills that help us survive. With that in mind, it is easy to see why some people consider
negative attributes to be strengths. These "strengths," however, rarely lead to positive
relationships and high levels of satisfying and enduring success.
Good communication skills are key to success in life, work and relationships. Without
effective communication, a message can turn into error, misunderstanding, frustration, or even
disaster by being misinterpreted or poorly delivered. Communication is the process by which we
exchange information between individuals or groups of people. It is a process where we try as
clearly and accurately as we can, to convey our thoughts, intentions and objectives (Chaffey and
White, 2010).
TASK 2
P3 Describe the main physical and technological resources required in the operation
Physical Resources
An organization need to combine labour, capital, energy, materials and information to
generate a product or service. Labour is the work the employees are providing to the cited
organization. It can be mental and or physical effort of employees and can take a variety of forms
including ling, lifting, data processing, decision making, and line management. It is very
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important for the organization as labour is any kind of effort/task that an employee needs to
undertake in order to produce the product or service. Capital is the strongest too to produce the
product or service. It can be in the form of machines and tools (Ciabuschi, Perna and Snehota,
2012).
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.
TASK 3
P4 Describe sources of internal and external finance for a selected business.
Illustration 1: Financial sources
(Source: Analysis Of Sources Of Finance For The Investment, 2017)
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A source of finance used by Hendy's Ltd. is retained earnings. This company re-invest a
certain percentage of their end of the year profits, so they can improve it. Each year Hendy's
decide how much money they re-invest, this depends on the profit they make.
Fixed assets: Another type of an internal source of finance for cited enterprise is fixed
assets. Fixed assets are an asset that is not consumer or sold during the normal course of
business, these are land, buildings, equipment, machinery, vehicles etc (De Clercq, Lim and Oh,
2013). These assets are very hard to convert into cash as it takes time to sell, would use these
assets to fund future operations.
External sources of finance Investments: An investment is when a person or persons
invest their own money into a business, hoping to make a profit on their investment into the
organisation. It rely massively on investments just like any organisation. Hendy's share prices
depend on just how much is being invested into the company, and over the past year their share
prices have dropped as the amount being invested has decreased.
Corporations: As Hendy Ltd. are a corporation they can part-take in all the activities any
corporation are involved in such as hiring new staff, sue other companies, be sued by other
companies and also own their own assets (Grönroos, 2011).
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
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
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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
common
shareholders 1890 2823 341
Earnings per share
Basic 6.92 10.35 12.57
Diluted 6.89 10.29 12.46
Interpretation of P&L Account
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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
Current
Assets 29620 32997 39928
Total
current
assets 47038 53018 61510
Non Current Assets
Total non-
current
assets 34513 37587 40593
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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 12227 10324 9607
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liabilities
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
and
stockholder
s' equity 81551 90605 102103
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
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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.
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 (Hahn and Gold,
2014). 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. (Korunka and et.al., 2010)
 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
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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.
CONCLUSION
From this above mentioned research report it has been concluded that there are some
major business sources which play essential role in organisation. Also there has been define
major financial sources with the help of them company can effectively survive in competitive
market place. In this report has been explained regarding comapny's financial statement and
profit and loss account on the behalf of that easy to identify actual capabilities and financial
status of firm.
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REFERENCES
Books and Journals
Bae, J., Rowley, C. and Sohn, T.W. Eds., 2012. Managing Korean business: Organization,
culture, human resources and change. Routledge.
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.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility:
A review of concepts, research and practice. International journal of management
reviews. 12(1). pp.85-105.
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.
De Clercq, D., Lim, D. S. and Oh, C. H., 2013. Individual‐level resources and new business
activity: The contingent role of institutional context. Entrepreneurship Theory and
Practice .37(2). pp.303-330.
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.
Korunka, C., and et.al., 2010. Personal characteristics, resources, and environment as predictors
of business survival. Journal of Occupational and Organizational Psychology. 83(4).
pp.1025-1051.
Mallah, S. and Bansal, N. K., 2010. Allocation of energy resources for power generation in
India: business as usual and energy efficiency. Energy Policy. 38(2). pp.1059-1066.
Montgomery, C. A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
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Singh, P. K., 2012. Management of business processes can help an organization achieve
competitive advantage. International Management Review. 8(2). p.19.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp.1019-1042.
Online
Other Business Resources, 2015. [Online]. Available through:
<http://www.discoverbethelct.com/for-business/chamber-of-commerce/other-business-
resources/>. [Accessed on 20th July 2017]
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