Introduction to Business Studies

This report provides an introduction to business studies, focusing on the role of HR, marketing, and finance departments in a company. It discusses collaborative working practices and the impact of internal and external factors on business performance.

Introduction to Business
Studies

Table of Contents
INTRODUCTION.......................................................................................................................3
TASK 3........................................................................................................................................4
Calculate..................................................................................................................................4
To what extent you may think shareholders are satisfied with company financial
performance.............................................................................................................................4
What are various options you will suggest improving profits................................................5
TASK 4........................................................................................................................................6
Evaluate effectiveness of rewards system and appraisal system in increasing retention and
productivity in retail sectors....................................................................................................6
CONCLUSION............................................................................................................................9
REFERENCES............................................................................................................................9

INTRODUCTION
Business studies are studies which is explaining about business environment in the
country. Business studies have elements like HR, marketing and finance. Report is providing
knowledge regarding role of HR, marketing, and finance department in company.
Collaborative working practices will be discussed in report in detail. There are internal and
external factors which will have impact on business are discussed in report. Report will be
providing the knowledge regarding business studies which will include business environment
which will have impact on business performance.
TASK 3
Calculate
Gross profit margin
Gross profit margin is the profit margin which is revealing amount of money left cover
from sales. Operating profits form year 2013 is 1330 and profits is 979 while the gross profits
calculated for year 2013 is 40.16586. In year 2014 operating profit was 1275 while profits was
865 and gross profits calculated was 39.51. So company is facing decline in gross profit and
company it will have negative impact in financial statements.
Operating profit margin
Operating profit margin is profits which is calculated by paying variable cost of
production. Like wage and raw material are calculated before paying interest and tax. It is
calculated by dividing operating profits by net sales. Operating profits for year 2013 will be
4329 and operating profits is 1130 an operating profits margin calculated is 18.38 and for year
2014 is 16.70.
Profits % change
It is the percent of change which can be increase or decrease in the profits. It will
extend to variable gain or losses and intensity and magnitude as well. It will have specific
formula which need to followed by company for calculating profits percent change. Profits
percent change of company is 13.17 which is decreasing because company is facing decline in
the financial statements which can affect company on large scale (De Stefano Bagdadli. and
Camuffo 2018).

To what extent you may think shareholders are satisfied with company financial performance
British sky and broadcasting company plc is dealing in television broad casting and
telephone broad band services as well. Shareholders are one which have invested their amount
in company. Company has occured sales of 4329 in 2013 and 4616 in 2014. Company has
earned gross profit of 3016 in 2013 and 2906 in 2014. British sky and broad casting company
plc is facing losses in financial year in company. The Financial performance of company has
been decreasing because company is not able to satisfy customers needs. Shareholders are
investing in company, and they are expecting that the company will reach the heights and give
them more profits in return. Companies are giving return to shareholders on the shares they
have bought (Finn Berry, Davies and Mason 2018).
Shareholders are not satisfied with the performance of company in market. Although
company is giving and recovering loses which are being faced by company in previous years.
So company can use the latest strategies which will help company to improve performance of
organisation in market and satisfy shareholder of company as well. Shareholders are looking
after the financial performance which are giving correct information of company. Shareholder
have right to see financial statements and also have right to ask board of directors about
financial position of company. Organisation have earned net profit of 979 in 2013 and 865 in
2014. The net profits is showing financial position of company in market and competitors of
company are taking advantage of situation of company.
What are various options you will suggest improving profits
There are various options which will improve profits. Company can use strategies
which will improve financial performance of company.
Review pricing structure
company can review pricing structure of products and services which are delivered by
company. Com any can use correct cost and structure for working in effective way. Products
cost and price must have focus of managers and managers must eliminate extra cost which is
occurred on preparing the product or services (Marler and Boudreau 2017).
Reduce inventory
There must be balance between demand and supply of products in market. So,
organisation must look that production is done on basis of demand of product in market.
Company has to spend amount on preparing products and excessive production of services and

products will lead to increase in inventory. Organisation has to take effective measures for
reducing inventory and analyzing the demand of product in market. These will occur less cost
for company and organisation will be investing more amount in increasing sales. Slow moving
inventory will lead to better performance of company in market.
Reduce overall direct cost
Direct cost is cost which is occurred on products while preparing products. It will have
direct impact on gross margin. Reducing direct cost will need better prices of raw material and
same quality products but it is prepared at low price and it can be sold in market at low price
by the name of discounts and offers. Various other type of cost is also included like the
overheads which have spent on the products. Company can try to reduce direct cost which will
eliminate excessive cost of company in market (Olson, and et.al., 2018).
Reduce overheads
company can take effective measures for reducing overheads. Overheads are indirect
cost which is occurred on preparing products or delivering service of company. Overhead will
also include unwanted cost which can be reduced by company on products and that cost can be
eliminated by company and financial results will be increased as well.
These all method will help company to overcome financial problems and it must be
like by organization for working in effective way. Company can use these methods and
generate more profits.
TASK 4
Evaluate effectiveness of rewards system and appraisal system in increasing retention and
productivity in retail sectors
There are strategies which can improve rewards system and increase retention and
productivity in retail sectors. There are various human resource polices which are made for
increasing retention and productivity in retail sectors.
Employee relation
Employee relation are must for employees because employee relation will affect
workers of company. Employees are working in company which are from diverse regions and
countries. These will rise conflicts among employees which are working in company. Many
employees are working in in-disciplined way and these will have negative effect on other
employees of company (Reilly and Williams 2016). So, it is responsibility of human resource

managers to accept norms and work according to rule of company. Some employees fail to
meet their goals, and they are dealing with stress and excessive workload which will have
negative impact on performance of employee.
Employee relation can be improved by effective human resource policies because they
have to give them proper working environment and friendly coworkers. Effective working
environment can change employee relation and in these working environment employees will
follow polices and norms of companies. Employee and employers must treat each other with
respect and both must communicate with other in effective way. Communication can solve
problems between employee and employer. Human resource polices are playing vital role in
strengthening employee and employer relation. Human resource managers are solving
conflicts among employees which are working in company. They are solving workplace issues
and measuring employee relations. Managers are providing the satisfaction to employees
regarding working environment and for job security as well. Proper performance management
system is followed by managers for concentration on employee performance (Sainidis Robson
and Heron 2019).
Rewards system
Human resource managers are motivating employees by way of rewards. Rewards can
be given by company in form of bonus, incentives and promotion. Employees need motivation
from time to time because they are frustrated by regular working, and they need some
encourage and change in their life. Employees also need money to fulfill their needs so,
managers will encourage employees and set goals in their mind for achieving rewards.
Employee will improve their performance and work in more efficient way for achieving
rewards. Employees are performing well in company and these workers must be praised by
employers. Employees feel motivated when their work is praised by all workers and
employers in company.
In the retail sectors human resource managers are working in effective way. They are
motivating employee by way of rewards system and by appreciating them. In the retail sectors
employees are generally paid incentives on performance of their work. Human resource
managers are concentrating on employee retention which will have impact company image in
market. So, managers are working on motivating employees which can improve retention
among employees which are working. Retention is improved and in that case productivity will

also be improved and employees will be working more efficiently (Stone Neely and Lengnick-
Hall 2018).
Customers are affected because of employee performance and these will have effect on
company image in market. Company is recording the grievances of customers and these will
have impact on employee performance. Employees are entertaining customers and behavior of
employees towards customers will set the image of company in mind of customers. So human
resource managers are concentrating on fulfilling need of employees. So, they feel motivated
to work in the company. Companies are providing party to employees which is encouraging
them to work in effective way.
Recommendation
Employees need motivation which will improve performance of employees and
improve retention rate in company. So company can use strategy of rewards system which will
fulfill need of employees. Reward are given to employees by way of variable pay, bonus,
profit sharing, stock option and promotion. Variable pay will be provided to employees on
basis of employee performance. Good package of incentive will motivate employee to work in
effective way. Employees are motivated, and they can use proper reward programs which can
attract customers in effective way. Bonus are given to employees on certain occasion which
are quite special for company. Companies are providing bonus to employees once in a year.
Bonus programs are arranged for outstanding performance of employees while working in
company.
In profit sharing employees are preferred share in profits which is going to be earned
by company on certain projects. Rewards are provided in form of money, it will benefit
company for offering these type of rewards at foxed cost. Stock options are increasing
popularly because companies are providing stock to employees in form of rewards.
Companies are not investing in profit sharing plans, but they are investing in stock option
plans because in these rewards are paid in form of shares. On basis of employee performance
promotion is given to employees and employees are promoted on higher post. In these
employees are given rewards inform of increase in salary as well (Van den Heuvel and
Bondarouk 2017). These all rewards will improve performance of employee, and they will be
motivated to work in effective way.

Human resource department can work in effective manner and can improve
performance of employees which are working in the company. Mangers can overcome the
issues and challenges by motivating employees. Employees can be motivated by way of
rewards system and also appraisal system as well. Com any need to focus on rewards system
which is followed in company and try to use the strategies which can have positive effect on
performance of company in market.
CONCLUSION
From above report it will be concluded that company is facing problems for surviving
in market. Company will be facing problems because of poor performance in market and it is
concentrating on rewards management system which will improve performance of employees.
It will also result on increase on performance of company in market. So company can use
strategies to motivate employees and offer them rewards and in form of bonus and
promotions. Companies are also offering rewards to companies in form of profits sharing in
projects and company is also providing stock to employees in form of rewards. Companies are
taking effective measures for motivating employees and so employees are working in effective
way. Company must look after encouraging team work for employees which are working in
team.

REFERENCES
Books and journals
De Stefano, F., Bagdadli, S. and Camuffo, A., 2018. The HR role in corporate social
responsibility and sustainability: A boundary‐shifting literature review. Human
Resource Management. 57(2). pp.549-566.
Finn, A., Berry, S., Davies, E. and Mason, R., 2018. The Ultimate MBA Book: Get the Edge
in Business; Master Strategy, Marketing, and Finance; Enjoy a Business School
Education in a Book. Hachette UK.
Marler, J.H. and Boudreau, J.W., 2017. An evidence-based review of HR Analytics. The
International Journal of Human Resource Management. 28(1). pp.3-26.
Olson, and et.al., 2018. The application of human resource management policies within the
marketing organization: The impact on business and marketing strategy
implementation. Industrial Marketing Management. 69. pp.62-73.
Reilly, P. and Williams, T., 2016. Strategic HR: Building the capability to deliver. Routledge.
Sainidis, E., Robson, A. and Heron, G., 2019. Environmental turbulence and the role of
business functions in the manufacturing strategy debate: The case of UK-based
SMEs and the Great Recession. Journal of General Management. 44(4). pp.190-208.
Stone, C.B., Neely, A.R. and Lengnick-Hall, M.L., 2018. Human Resource Management in the
Digital Age: Big Data, HR Analytics and Artificial Intelligence. In Management and
Technological Challenges in the Digital Age (pp. 13-42). CRC Press.
Van den Heuvel, S. and Bondarouk, T., 2017. The rise (and fall?) of HR analytics: A study
into the future application, value, structure, and system support. Journal of
Organizational Effectiveness: People and Performance. 4(2). pp.157-178.