Introduction to Business Studies

This document provides an introduction to the study of business studies, focusing on the financial and management aspects of business. It covers theories of motivation and explores short-term and long-term sources of finance for business expansion.

INTRODUCTION TO
BUSINESS STUDIES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 3............................................................................................................................................1
Theories of Motivation................................................................................................................1
TASK 4............................................................................................................................................3
Introduction.................................................................................................................................3
Short term and long term sources of finance or the company’s working capital needs..............3
Investment appraisal techniques.................................................................................................5
Conclusion...................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The goods and services provided in any business activity must result in the provision of tangible
or intangible goods. A tangible good is a good you can see physically or hold e.g biro, shoes,
dresses etc. while intangible goods are what cannot be seen or touch, it involves services
rendered by teachers, doctors, engineer,etc. Business studies can therefore be defined as the
study of how businesses work, especially the financial and the management aspects of business.
This report covers issues about two companies that is Jack stores from Tesco and Zylla which
deals in providing the services of ferries.
TASK 3
Theories of Motivation
Maslow's Theory of Needs-
Maslow's Hierarchy of needs is classified in five steps which includes the list of needs from
bottom to top. Theory given by him suggests that the level of needs in human increases when
they are met according to their level of satisfaction.
Physiological Needs-
These needs are considered as basic needs which are required for the survival of humans.
It is also considered as universal needs. These needs motivates people internally and if they are
not fulfilled then they won't be satisfied. Member of the company won't be able to work with
determination as it creates a displeasure in the minds of people and makes them feel
underachieved. This is the reason why owners of Jack stores will offer them a decent package so
that they can fulfil their needs and work to gain the share of market in the company. Needs such
as health, food, water, clothes, sleep shelter etc. comes under this aspect according to Maslow
(Kalecki, 2016).
Safety Needs-
This stage comes after the fulfilment of first level of need. Individuals will be concerned
as there are many reasons such as state of war, any natural calamity, family violence or any case
of abuse. They feel threatened by them as they have no security against them which is why Jack
stores will offer their employees securities against this measure who is a part of their team for a
long period. They will provide them with the benefit of healthcare and some other incentives so
that they can retain them (Paul and et.al., 2018).
Social Belonging-
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After the fulfilment of safety needs these needs are derived. These needs are concerned
with having a relation with someone such as friendship, intimacy and family. According to
Maslow, humans have a need of feeling accomplished and have a urge of getting acceptance
among different people or groups. Jack stores have set a system for their employees and that is to
work as a team so that they can share their feelings about work with someone so that they don't
develop a sense of loneliness.
Self Esteem-
These needs are concerned with ego or status of people. If people are not recognized,
given importance or getting respected then their this need won't be satisfied. Some of the people
engage in events or a profession so that they can gain recognition among people. To provide
their employees with this type of motivation Jack stores hosts event where they invite their
employees so that they can meet and treat each other with respect irrespective of their
designation in the company (Cano-Kollmann and et.al., 2016).
Self Actualization-
This type of need is concerned with achievement or accomplishment of all the things one
can according to their potential. This is the last stage of this theory and it is concerned with
pursuing goals, developing talents and abilities. To fulfil their these type of needs company
appreciates and promotes the employees of the company and offer them to work for them at a
higher post such as managing director, CEO according to their skills so that they can be
motivated (Assiter, 2017).
Herzberg's Theory of Motivation-
Theory of Herzberg is classified and distinguished in two ways such as
Motivators-
This aspect involves factors such as gaining recognition for the achievement, take
responsibility of the work and contribute to something meaningful. Employees of Jack stores are
listened and they are involved in the aspect of decision making so that it gives them a sense of
importance and value. It will keep the employees of the company positively motivated and help
them to grow personally as well as professionally. These factors help the employees of the
company to motivate so that they put more efforts and help the company to achieve their goals
(Ericsson and et.al., 2018).
Hygiene Factors-
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This aspect is concerned with the security of job, expectations of salary and benefits,
condition and environment of work, insurance provided to them and vacations offered in the
package are not up to the mark. It is also referred to as maintenance factors of the company. This
aspect does not motivate them to work more. The aspects which are involved in this factor are
the general policies of the company. In order to reduce the amount of dissatisfaction of the
employees of the company they need to remove these factors and offer them in a better way
which can match with their experience and level of expectancy.
Motivation is a important aspect of the job as it helps the employees of the company
retain and put their efforts for a long period of time. If they are not motivated enough then they
will look out on other available alternatives. This will ultimately be a loss for the company. In
order to remove this factor company needs to make their work environment positive and goal
oriented. It will help them to work stress free and more focused. They will follow the instructions
provided to them. Jack stores need to provide them appropriate skills of training as the
employees who are new seek to learn and if the store does not provide them that then they will
look for other job. Motivation and satisfaction is necessary for every individual without it they
won't be working with a clear focus and not put efforts up to their potential.
TASK 4
Introduction
Zylla deals in providing the services of ferries which is useful for the people who wants their
vehicles, goods and services migrated across the river. Currently the company is looking at
expansion and they have booked a new ferry so that they can meet with the level of increased
demand. In order to expand company needs some appropriate amount of funds so that they can
meet the financial requirement.
Short term and long term sources of finance or the company’s working capital needs
Short term Finance
This type of financing refers to need of finance for a small period of time which may be less than
a year (Fill and Turnbull, 2016). It is also termed as working capital financing. Any type of
organizations take it in order to maintain the flow of business which mostly occurs in seasonal
business. There are many type of short term finances such as
Working Capital Loans-
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Banks or financial institutions are the ones who provide people these type of loan by
extending the period of loan by studying what the business deals in, their earlier records. in case
of Zylla it was ferries. When the loan is credited to Zylla they can give the amount in instalments
or in lump sum according to the agreed deal between both the parties. It is often advised to
finance it in a permanent way so that the company don't have to arrange it again.
Invoice Discounting-
This credit is given against the submission of bills which are pending and their payment
will be credited in some time. It can be raised through financial institutions, banks or any third
party. They will collect the amount by the due date which is written on the bill.
Trade Credit-
It is a time which is given to the concerned company to make the payment of the goods
and services which they have received or purchased. Generally the time of floating which is
provided to Zylla is 28 days. In this certain time period Zylla deals with the issue of flow of cash
in an more efficient manner. This method is useful for the company to expand their operations by
allowing them to give a certain period of time to arrange the funds and ready the inventory which
will be needed for expansion. It is offered as an inducement in a continued operation of business
which is the reason why it does not have its own cost (Quinlan and et.al., 2019).
Advantages of short term finances-
Less amount of interest-
This amount is collected in a short period of time which takes less interest as compared to
short term loans.
Disadvantages of Short term finances-
The one and main disadvantage of this aspect is that the loan given to the company has a
fixed and very shorter amount of duration and if the amount is bigger then the instalment will be
given in a big amount which may affect the credit score of the company.
Long term Finances-
This type of finance is given to the concerned company for more than a year such as bank
loans, leasing, bonds etc.
Equity Capital-
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It represents that capital of the company is raised by either public or private. People who
holds these type of shares don't have the right over the dividend but the rate of return offered to
them is higher.
Preference Capital-
These type of people carry rights which gives them advantage over equity share holders
as they get the dividend before the shareholders of the company and if the company wounds up
their operations then also they will get their money which they invested in the business.
Advantages-
 Diversification of Debt.
 Gives support to the company for a long period of time (Brannen, Piekkari and Tietze,
2017).
Disadvantages-
 Monitoring the financial aspects of the company which is difficult.
 Strict regulations for the repayment of principal and interest.
Investment appraisal techniques
Payback Period Method-
This method takes the inflow of cash from a capital which is invested in a project and
equal to the outflow of cash. Basically it helps to define that how many years it took to recover
the money invested in business.
Accounting Rate of Return-
This method is also known as return on investment as it deals with measuring the
increase or decrease in profit from an specific investment. Accounts department of Zylla express
the profit and a percentage of the capital which is invested.
Net Present Value Method-
The objective of Zylla is to generate more income by using the existing resources so that
they can expand their operations. It can be done by exceeding the current outflow of cash.
Current value of the company is determined by discounting all the inflows and outflow of the
project. If it is negative then Zylla will have to stop this operation as it won't be able to fund
themselves and if it is positive then it would state that project is profitable (Johnson, 2016).
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Internal Rate of Return-
This method helps to anticipate the company the cash flow with the initial outlay. This
method can also be defined as rate which considers the current value of the cash flow zero. Rate
of this aspect depends on either the opportunity cost or the lending rate by bank and it is also
termed as personal discounted rate or rate of accounting.
The most viable source of funding for the company would be to go for the long term
loans as they can return the payment in a long period of time which would be less hectic as
compared to short term funds (Doh, Luthans and Slocum, 2016).
Conclusion
This task concludes that Zylla has the scope for expansion and the most viable way to meet the
requirement for finance is to go for long term funds as they require a large amount of money to
expand.
CONCLUSION
From the above studies it has been concluded that management of Tesco needs to keep their
employees motivated so that they can retain them for a long period of time and achieve their
goals and objectives. Zylla has a scope of expanding their operations and they can select the
most viable source to raise fund to kick-start their business.
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REFERENCES
Books and Journals
Assiter, A., 2017. Transferable skills in higher education. Routledge.
Brannen, M.Y., Piekkari, R. and Tietze, S., 2017. The multifaceted role of language in
international business: Unpacking the forms, functions and features of a critical challenge
to MNC theory and performance. In Language in international business (pp. 139-162).
Palgrave Macmillan, Cham.
Cano-Kollmann, M., and et.al., 2016. Knowledge connectivity: An agenda for innovation
research in international business.
Doh, J.P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction
to the special issue.
Ericsson, K.A., and et.al., 2018. The Cambridge handbook of expertise and expert performance.
Cambridge University Press.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kalecki, M., 2016. Studies in the theory of business cycles: 1933-1939. Routledge.
Paul, P., and et.al., 2018. Business Information Sciences emphasizing Digital Marketing as an
emerging field of Business & IT: A Study of Indian Private Universities. IRA
International Journal of Management & Social Sciences,(ISSN 2455-2267), 10(2), pp.63-
73.
Quinlan, C., and et.al., 2019. Business research methods. South Western Cengage.
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