Asda's Workforce Planning Strategies

This document analyzes Asda's approach to workforce planning, particularly its structured forecasting methods for staffing needs. It explores the utilization of both internal and external financing sources to support expansion and operational requirements. The analysis also delves into the concept of performance within a business context, highlighting its importance in contract fulfillment and overall organizational success.

Business Resource
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TABLE OF CONTENTS
INTRODUCTION.........................................................................................................................................1
P1 RECRUITMENT DOCUMENTATION..................................................................................................1
P2 DESCRIBE THE MAIN EMPLOYABILITY, PERSONAL AND COMMUNICATION SKILLS
REQUIRED WHEN APPLYING FOR A SPECIFIC JOB ROLE...............................................................1
P3 DESCRIBE THE MAIN PHYSICAL AND TECHNOLOGICAL RESOURCES REQUIRED IN THE
OPERATION OF A SELECTED ORGANISATION...................................................................................2
P4. DESCRIBE SOURCES OF INTERNAL AND EXTERNAL FINANCE FOR SELECTED
BUSINESS.....................................................................................................................................................3
P5 INTERPRET THE CONTENTS OF A TRADING AND PROFIT AND LOSS ACCOUNT AND
BALANCE SHEET FOR A SELECTED COMPANY ASDA....................................................................4
P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF EXERCISING BREAK EVEN............6
P7- ILLUSTRATE THE FINANCIAL STATE OF A GIVEN BUSINESS.................................................6
CONCLUSION..............................................................................................................................................7
REFERENCES..............................................................................................................................................8
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INTRODUCTION
An economic or productive factor required to accomplish an activity, or as means to
undertake an enterprise and achieve desired outcome. Three most basic resources are land, labor,
and capital; other resources include energy, entrepreneurship, information, expertise,
management, and time. At the current report there are Asda business entity is chosen which
dealing in the retail sector. It shows about several kinds of skills as well as physical and
technological resources required in the form start and run the firm. Apart from this, it describes
sources of internal and external finance as well as contents of a trading and profit and loss
account and balance sheet for a selected Asda.
P1 RECRUITMENT DOCUMENTATION
For a company, whose international business endeavors had recently started its roots, Asda
promoted a workforce planning where structured forecasting of staff demands had been executed. This
way, the organization's resource in-charge of recruitment and selections will have ample time to either fill
vacated positions or provide for new occupational spots. The act of recruitment and selection, as
described by Bach (2005), indicated the collaboration of the two processes, where the former is
undertaken to attract and draw in potential job seekers in organizations, while the latter comprises of
predictive procedures on the suitability of applicants with the set of job requirements drawn based from
company standards (Barkemeyer and et.al, 2014).
Asda made specific job descriptions and person specification scales, provided
benchmarks for the staff to strictly follow during the recruitment process. Based on the case
study, the company's recruitment management will look at its available employee pool within the
organization first, the "internal Talent Plan," then it may branch out within the organization
personnel through intranet advertisement, should internal employee pool is not able to meet the
qualifications needed.
P2. DESCRIBE THE MAIN EMPLOYABILITY, PERSONAL AND COMMUNICATION
SKILLS REQUIRED WHEN APPLYING FOR A SPECIFIC JOB ROLE
Initially an employer will look at qualifications a candidate has and whether it is suitable and
fitting to the vacant job position. Even though education qualification is only a part of the
requirement an employee looks at while hiring but it is a vital part. Having educational values
shows that one has placed in an enormous amount of effort and is concerned for a prosperous
future. But sometimes the qualifications don’t matter depending on the particular objective
considering this case Ada require too much educational qualified with an advanced personal
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skills among candidates (Chuang and Huang, 2015). Another vital and effective quality an
employer loo's for in a candidate is their experience in the relevant field. In-fact to some
employers this is the sole requirement to employ a candidate and ignores the fact whether they
have advanced education. However, minimal standard has been set out to have better hiring and
improving the overall outcome.
P3: DESCRIBE THE MAIN PHYSICAL AND TECHNOLOGICAL RESOURCES
REQUIRED IN THE OPERATION OF A SELECTED ORGANISATION.
As Ada is a retail company have a lot of distribution all around the stores. Machinery and
equipment help in delivery of products that they create. There would be equipment to help get
the products from storage. Along with this, machinery is used to help have better transfer of
goods within store. Asda will need to make sure that they abide by the health and safety laws and
provide their employees with safety equipment as some of the equipment and machinery may be
hazardous to health (Eriksson and Kovalainen, 2015). Ergonomics also comes into action at Asda
because all of the work stations being close together and the employees being able to access what
they need in a little area. Moreover, IT equipment are also essential as it assist in advancing the
billing services.
At Asda, there buildings are all in a small area so that it is easy to transport the cars that
they are building around the stores. A lot of the buildings have been there for a long time. They
have maintained the building well due to the amount of people that work there compared to other
stores which are mainly populated by unnecessary aspects. Asda also make sure that they secure
the business well by placing alarms around the building, they would also lock up the stores at
night so no one could get in and take anything (Aquino, Bruno, Riccio and Gomez-Paloma, 2013).
Asda need to make sure that they manage their waste properly making sure they recycle as many
unused materials as they can as they will have a lot of spare goods. To make sure that manage
their waste in the best way possible, they place recycle bins in the areas of the stores.
P4. DESCRIBE SOURCES OF INTERNAL AND EXTERNAL FINANCE FOR
SELECTED BUSINESS.
Internal sources of finance are funds found inside the business. For example, profits can
be kept back to finance expansion. External sources of finance are found outside the business, eg
from creditors or banks.
Internal sources of finance
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Retained Earnings
Retained earnings are an easy source of internal financing to use because they are liquid assets.
Retained earnings are the portion of net income that you have retained in your Asda and not paid
out. In a small business, retained earnings are usually paid out to the owners, who often do not
draw a budgeted salary (Ho and Wang, 2015). Instead of paying out retained earnings, you can
reinvest them into the Asda.
Current Assets
Current assets consist of cash or anything that can easily be converted into cash. For example, if
your business has stock holdings in other companies, you can divest yourself of those stocks and
use the proceeds as a source of financing. You should be careful, however, not to decrease your
current assets to levels less than your current liabilities, as this may prevent you from paying off
your debts.
Personal Savings
Personal savings are the backbone of many small businesses. If your business doesn't have the
assets to finance your project, you may still have personal finances that you can contribute to the
business. This provides an alternative to seeking external investors or loans and allows you to
retain control over your business (Koynov and Muzzio, 2016).
External sources of finance
Ordinary shares
Under this arrangement, companies raise capital by selling stock in their business. This entitles
the purchaser to a voice in the decisions made by the Asda. While ordinary shares do not have a
fixed rate of dividend (a share of Asda profits) from profits after current liabilities and other
investors are services, not paying them can diminish share value. A business will avoid this if
they hope to issue shares in the future.
Preference shares
Preferential shareholders receive dividends before individuals with ordinary shares. Their lower
risk and lower levels of return mean that preference shares have a less volatile market price.
These have lost popularity since, while they are alike borrowings in many other aspects, dividend
payments are not tax deductible (Pavitt, Robson and Townsend, 2015).
Term loan
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Financial institutions provide negotiable loans in which the rate of interest, repayment dates and
security for the capital offered must be agreed. Because they are commonplace, this option is
easy to set up and has a degree of flexibility. At the same time, borrowed capital often comes
with obligations and restrictions known as ‘loan covenants’.
P5 INTERPRET THE CONTENTS OF A TRADING AND PROFIT AND LOSS
ACCOUNT AND BALANCE SHEET FOR A SELECTED COMPANY ASDA
Profit and loss account
Net Sales Revenue
Net sales revenue is commonly referred to as "top-line" revenue because it's the first line in the
typical income statement. This is the money that comes in from customers in the normal course
of business. If you own a candy shop, for example, sales revenue is what customers pay for
candy; if you're a plumber, it's what people pay for your services, including parts and labor. Sales
revenue is critical because this is the money available to run your Asda (Swallow and et.al.,
2016).
Gross Profit
Say you own a shoe store. You buy shoes from a wholesaler for $25 a pair and sell them for $35.
Your gross profit on each sale is $10. Gross profit on any individual sale is your revenue minus
the direct cost of earning that revenue, commonly referred to as "cost of goods sold." On the
income statement, gross profit is an aggregate figure, representing how much of all the money
you've taken in from all of your sales is left over after accounting for the cost of the sales
themselves. All overhead costs will have to be paid out of gross profit.
Operating Income
Operating income tells you how much money you have left over after you've taken care of all
your operating expenses. Operating expenses are the regular, day-to-day costs of running the
business. They include not just the cost of goods sold, but also workers' wages, rent, utilities,
maintenance, cleaning supplies and all the other little and not-so-little expenses required to keep
a business running (Himme and Fischer, 2014.).
Net Income
Net income is your bottom-line concern -- literally. The last line of the income statement, net
income tells you exactly how much profit the Asda made or exactly how big of a loss it suffered.
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Net income may differ from operating income because of non-operating items, or those not
related to the Asda's core business.
Balance sheet
Assets
The assets section shows items your Asda owns that have tangible value. It includes current
assets, along with property and equipment, investments and intangible assets. The current assets
section is compared to current liabilities to figure out your basic liquidity, or ability to pay off
short-term debt. Current assets include cash, securities and accounts receivable, which can all
generally be converted to cash within 12 months (Sala and et.al., 2017).
Liabilities
The liabilities section is simply divided into current and long-term liabilities. Current liabilities
are debts due within the next 12 months. Notes payable and accounts payable are common short-
term debt accounts. High near-term debt obligations stifle growth and may put you in a financial
bind. Long-term debt includes loans for buildings and other long-term asset loans (Amess,
Stiebale and Wright, 2016).
Owners' Equity
Owners' equity is mathematically determined to be the difference between your assets and
liabilities. In essence, whatever you have left if you were to sell all of your assets and pay off
debt is the value of the Asda at the present time. Equity actually includes a variety of accounts,
but most commonly it refers to paid-in capital and retained earnings. Paid-in capital is the par
value, or starting price of your shares if you are a public Asda.
P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF EXERCISING BREAK
EVEN
Number of customers in the ratio of Sales Revenue and Total Cost.
50 x £25,000 = £1,250,000
100 x £25,000 = £2,500,000
150 x £25,000 = £3,750,000
200 x £25,000 = £5,000,000
250 x £25,000 = £6,250,000
300 x £25,000 = £7,500,000
350 x £25,000 = £8,750,000
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400 x £25,000 = £10,000,000
450 x £25,000 = £11,250,000
As you can see from these results, Asda only need 350 customers to break even seeing as
the total costs of the store are £8,000,000. Budget at Asda, like all businesses/charities etc. have
budgets. These budgets are made by looking at how much profit the company makes each year.
If the store had 400 customers then they would make an extra £2,000,000 a year. This would
mean that their budget would be a lot higher than if they had 350 customers and made £750,000
a year.
P7- ILLUSTRATE THE FINANCIAL STATE OF A GIVEN BUSINESS
Current liabilities
£1,685,838
£7,577 = £222.4
£561,394
£8,968,431 x 10 = 6.25%
Above statement shows the gross profit as a percentage in relation to turnover.
Performance
Sales - £561,394
Total assets - £11,685,838 = £0.05
The solvency ratio indicates whether a company's cash flow is sufficient to meet its short-
term and long-term liabilities. The accomplishment of a given task measured against present
known standards of accuracy, completeness, cost, and speed. In a contract, performance is
deemed to be the fulfilment of an obligation, in a manner that releases the performer from all
liabilities under the contract.
CONCLUSION
As identified in present report, for a company, whose international business endeavors
had recently started its roots, Asda promoted a workforce planning where structured forecasting
of staff demands had been executed. This way, the organization's resource in-charge of
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recruitment and selections will have ample time to either fill vacated positions or provide for
new occupational spots. Internal sources of finance are funds found inside the business. For
example, profits can be kept back to finance expansion. External sources of finance are found
outside the business, eg from creditors or banks.
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REFERENCES
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business competitiveness. Journal of Business Ethics. 128(1). pp.221-231.
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Guide to Social Research. Sage.
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Journal. 11(12). pp.778-780.
Amess, K., Stiebale, J. and Wright, M., 2016. The impact of private equity on firms׳ patenting
activity. European Economic Review, 86(5), pp.147-160.
Aquino, M., Bruno, I., Riccio, R. and Gomez-Paloma, L., 2013. Regioselective entry to bromo-γ-
hydroxybutenolides: Useful building blocks for assemblying natural product-like libraries.
Organic letters, 8(21), pp.4831-4834.
Himme, A. and Fischer, M., 2014. Drivers of the cost of capital: The joint role of non-financial
metrics. International Journal of Research in Marketing, 31(2), pp.224-238.
Ho, W.H. and Wang, Y., 2015. Capital Income Taxation Revisited: The Roles of Information
Friction and External Finance. Pacific Economic Review, 20(2), pp.225-242.
Koynov, S. and Muzzio, F.J., 2016. A Quantitative Approach to Understand Raw Material
Variability. Process Simulation and Data Modeling in Solid Oral Drug Development and
Manufacture,15(8), pp.85-104.
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