Financial Performance of XYZ Limited for the Year Ended [Year]

The provided content appears to be a financial report from a company, detailing its profit and loss for the year, as well as earnings per share from continuing and discontinued operations. The report shows a net profit of £129 million, with earnings per share from continuing operations being £2.77p. The report also provides information on the attributable profits to owners of the parent and non-controlling interests.

BUSINESS RESOURCES

Table of Contents
INTRODUCTION .........................................................................................................................4
TASK 1............................................................................................................................................4
a.Describe the recruitment documentation used in a selected organization and describe the
main employability, personal and communication skills required when applying for a
specified job role.........................................................................................................................4
TASK 2............................................................................................................................................5
a.Describe the main physical and technological resources such as buildings and facilities;
materials; plant and machinery; equipment including ICT; technological resources such as
intellectual property required in the operation of the selected organisation ..............................5
M1 ..............................................................................................................................................6
D1................................................................................................................................................6
TASK 3............................................................................................................................................7
a. Describe a range of internal and external sources of finance available to the selected
business ......................................................................................................................................7
b) Using the company’s financial statements provide a brief written interpretation of the key
elements of the trading and profit and loss account and the balance sheet for the selected
company. (P5).............................................................................................................................8
c. Illustrate the use of budgets as a means of exercising financial control of the selected
company......................................................................................................................................9
d. Illustrate the financial state of the selected company.(P7)....................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Recruitment is the process of identifying that the organisation needs to employ someone
up to the point at which application forms for the post have arrived at the organisation. Selection
then consists of the processes involved in choosing from applicants a suitable candidate to fill a
post. In this report, the different aspects of business resources will be discussed with respect to
Tesco.
TASK 1
a.Describe the recruitment documentation used in a selected organization and describe the main
employability, personal and communication skills required when applying for a specified
job role
Sales Manager job description
Responsibilities
 Achieve growth and hit sales targets by successfully managing the sales team
 Design and implement a strategic business plan that expands company’s customer base
and ensure it’s strong presence
 Own recruiting, objectives setting, coaching and performance monitoring of sales
representatives
 Build and promote strong, long-lasting customer relationships by partnering with them
and understanding their needs
 Present sales, revenue and expenses reports and realistic forecasts to the management
team
 Identify emerging markets and market shifts while being fully aware of new products and
competition status
Requirements
 BS/MS degree in business administration or a related field
 Successful previous experience as a sales representative or sales manager, consistently
meeting or exceeding targets
 Committed to continuous education through workshops, seminars and conferences

 Demonstrated ability to communicate, present and influence credibly and effectively at
all levels of the organization
 Proven ability to drive the sales process from plan to close
 Strong business sense and industry expertise
 Excellent mentoring, coaching and people management skills
TASK 2
a.Describe the main physical and technological resources such as buildings and facilities;
materials; plant and machinery; equipment including ICT; technological resources such as
intellectual property required in the operation of the selected organisation
Materials
Materials that are resources are raw goods that will be used in the production of other products.
For a kitchen supply factory, an example of a material is metal; something to shape and mold
into forks, knives, and spoons. The cutlery is then a product that is sold in retail stores. The
materials are not used for the operation of the business, but are a good that will be transformed
and sold as a new product.
Buildings and Facilities
The physical building you work in is a part of the physical resources of a company. Whether the
space is owned or rented, it is used for the purpose of operating your business. By having this
space available, you are able to complete your work. There are some occasions when the
building and facilities are the revenue generators of the business.
Machinery and Supplies
Machinery can be an extremely costly expense for most companies. Depending on the type of
business, machinery can be a sizable resource
Technological resources
Technological resources are systems and tools required to effectively produce or create a product
or service. These include energy, information, people, tools, machines, capital and time.

Technological resources aid production processes and service delivery in companies and
organizations. Technological resources are needed in order to keep the business running. These
will be common in tesco and will include hearing for the stores which will provide comfort for
the customers. Also, it will include tv’s which will be needed at the front of the stores to show
which products are on special offer as a further form of advertising.
M1
Human Resources
Human resources are the employees who work in the business. There must be a certan amount of
employees working in Tesco at a specific time in order to keep the show running and to be able
to satisfy customer needs. All employees must be taught what to do with that specific business
and must meet targets and objectives as well as providing the best customer service as they can.
The success of an organization is heavily reliant on the talent and strength of its employees. The
hiring of experienced professionals with track records of excellence within their area of expertise
ensures that the mission and goals of the company will be carried out efficiently and with
competence. Strong team members can be recruited using a variety of methods.
Physical Resources
Whether a small home business or a retail operation with multiple locations, every organization
must have the appropriate physical resources to survive. This includes a proper workspace,
working telephone line, adequate information systems and effective marketing materials.
D1
Budgets must be controlled in order for a business to make a profit rather than a loss within their
business. They must use their past history in order to predict how well they will be able to
perform in the next month as they can be aspirational.
Tesco will need to use physical resources in order to make products such as packaging the food
so it’s less time consuming for workers.
Financial resources would be how much money is needed in the business for example there must
be enough change left in the tills so employees are able to give customers the correct amount of
change.

TASK 3
a. Describe a range of internal and external sources of finance available to the selected business
Internal Sources of Finance
Existing capital can be made to stretch further. The business may be able to negotiate to pay its
bills later or work at getting cash in earlier from customers.
Retained profits:
Companies can increase funds by retaining profits and not distributing them as dividends. The
shareholders deprived of capital will expect retained profits to be invested to achieve a
competitive rate of return.
Tighter credit control:
The remaining internal financing options increase businesses’ cash assets by decreasing working
capital items.
Reduce inventories:
Purchase and storage costs use revenue that could otherwise be used to expand the business.
However, when reducing inventories enterprises should be careful to retain the capacity to meet
future demand.
External Sources of Finance
Loan Capital
The most common way is through borrowing from a bank. This can be in a form of an overdraft
or loan. and is usually set over a period of time. It could be short (2-3 years), medium (3-5 years)
or long term (5+ years).
Share Capital
On the other hand, if the business is a limited company, it may look for additional share capital.
This could come from private investors or venture capital funds. Venture capital providers are
interested in investing in businesses with dynamic growth prospects. They are willing to take a
risk if a business fails, or does well.

b) Using the company’s financial statements provide a brief written interpretation of the key
elements of the trading and profit and loss account and the balance sheet for the selected
company. (P5)
As one of the world’s largest retailers with 476,000 colleagues, we serve millions of customers
every week in our stores and online. £48.4bn1 £944m1 £1,046m1 4.97p1 £(5.1)bn2
Group sales (exc. VAT, exc. Fuel) (14/15: £49.9bn)
Group operating profit before exceptional items (14/15: £940m)
Statutory operating profit/(loss) (14/15: £(5,750)m)
Diluted earnings per share before exceptional items and net pension finance costs (14/15: 5.46p)
Net debt (14/15: £(8.5)bn) 476,0001
6,9021,3 78m1 18m
Colleagues at year-end (14/15: 492,000)
Shops around the world (14/15: 6,849)
Shopping trips per week (14/15: 77m)
Meals donated through our food surplus redistribution work and
Neighbourhood Food Collection
Last year we made a simple commitment. We set out to get back to what Tesco has always done
best: being the champion form customers; putting customers first; and taking small actions to
make big differences. Since then, we have begun to transform our business – from how we are
organised to the way we work with our suppliers and ultimately the way that we serve our
customers. One of the most important changes we have made over the past year is to set out
a new purpose for Tesco: ‘Serving shoppers a little better every day.’ This purpose guides all our
decisions and shapes every action we take. Alongside our purpose, we have recommitted to three
values: Whenever a customer chooses to shopn at Tesco, we want their experience to be better
than expected and better than the last – from the quality of the offer to the thoughtfulness of the
service. With the skills, expertise and dedication of our 476,000 colleagues worldwide, we are
well placed to achieve this. By delivering our purpose, and staying true to our values, we can
continue to build on the progress we have made this year. This has been a year of real change at
Tesco. Our ambition now is to go further and do even more to reduce and simplify prices,
improve ranges, continue to innovate and deliver excellent customer service.

Over the course of this year, we have worked hard to regain our competitiveness – particularly in
the UK. To do this, we first listened to our customers and understood
what it was that they needed from their shopping trip. They highlighted three main themes:
• they wanted their shopping trip
to be easier;
• they wanted better availability
on the products that matter most,
every day; and
• they wanted lower, more stable
prices they can trust all of the time. Over the past year, we have responded. We simplified our
store structures, investing
in 9,000 more customer-facing roles in store. We have reviewed the range of products we sell in
every one of our 33 food categories, reducing the total number of product lines by 18%. As well
as making the range easier for customers to shop, this has helped us to increase on-shelf
availability to record levels by providing more space for the products which are purchased most
frequently. These changes have been delivered by working closely with our supplier partners.
Together, we have moved to a more efficient and sustainable way of working, helping us to
further reduce prices for customers. In total, in the year we have brought down the cost of an
average weekly shop by over 3%. In addition, by removing inefficiencies in the supply chain, we
have been able to provide up to two days’ more freshness in our fruit and vegetables. As well as
lower, more stable prices, customers want complete peace of mind that they won’t lose out at
Tesco – even if the products they wish to buy are available on promotion elsewhere. They also
prefer simple, immediate value rather than vouchers. In October, we launched our unique Brand
Guarantee, reassuring customers that if their branded shop could be found more cheaply
elsewhere, we would take the money immediately off their bill.
c. Illustrate the use of budgets as a means of exercising financial control of the selected
company.
Facts
Budgets usually represent a detailed analysis of how a company expects to spend money in
future time periods. Many companies create budgets on an annual basis so they can carefully
outline the expected needs of each department in the business. Using an annual budget process

also limits the amount of time companies spend creating and managing capital resources.
Although larger companies may have employed accountants or other professionals to create the
business budget, small business owners are usually responsible to complete this function
themselves.
Limit Expenditures
A major benefit to using a business budget is the ability to limit how much money is spent on
certain operations. Budgets usually count expense accounts to ensure that capital is not wasted
on unessential items or the company does not overpay for economic resources used in the
business. Limiting the amount of capital spent by the business may require owners and managers
to find new vendors or suppliers for acquiring business inputs, saving money and meeting budget
limits.
Creates Financial Roadmap
Budgets often allow companies to have a financial roadmap for business operations. Many
companies review previous year’s budgets to determine how well they followed the guidelines
and why budget variances occurred. Not all budget variances may indicate a negative business
situation. If budget variances occurred due to unexpected growth in sales revenue, companies
may need to increase the budget amounts for future sales increases.
Plan for Future Growth
Companies often use budgets to plan for future business growth and expansion. Capital saved on
regular business expenditures may be placed into a special reserve account designated for
selecting new business opportunities. Budgeting for future growth opportunities ensures that
companies have capital on hand when needing to make a quick decisions for expanding business
operations. This capital may also be used during slow economic times as a safety net for paying
regular business expenses.
d. Illustrate the financial state of the selected company.(P7)

Notes
52 weeks
2016
£m
53 weeks
2015
£m
Continuing operations

Notes
52 weeks
2016
£m
53 weeks
2015
£m
Revenue 2 54,433 56,925
Cost of sales (51,579) (59,128)
Gross profit/ (loss) 2,854 (2,203)
Administrative expenses (1,852) (2,574)
Profits/ (losses) arising on property-related items 44 (973)
Operating profit/ (loss) 1,046 (5,750)
Share of post-tax losses of joint ventures and associates 13 (21) (13)
Finance income 5 29 80
Finance costs 5 (892) (651)
Profit/ (loss) before tax 162 (6,334)
Taxation 6 54 670
Profit/ (loss) for the year from continuing
operations 216 (5,664)
Discontinued operations
Profit/ (loss) for the year from discontinued operations 7 (87) (102)
Profit/ (loss) for the year 129 (5,766)
Attributable to:
Owners of the parent 138 (5,741)
Non-controlling interests (9) (25)
129 (5,766)
Earnings/ (losses) per share from continuing and discontinued operations
Basic 9 1.70p (70.82)p
Diluted 9 1.69p (70.82)p
Earnings/ (losses) per share from continuing operations
Basic 9 2.77p (69.56)p
Diluted 9 2.76p (69.56)p

CONCLUSION
The different aspects of business resources and management of information has been
studied in this report.

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