Introduction to Business Studies

This document provides an introduction to Business Studies, focusing on the basics of organization, marketing, and human resource management. It also explores motivational theories and the importance of financial management in organizations. The case study of Marks and Spencer is used to illustrate these concepts.

Introduction to
Business Studies

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Covered on Poster........................................................................................................................1
TASK 3............................................................................................................................................1
Definition of HR..........................................................................................................................1
Meaning of Motivation................................................................................................................1
Two Motivational theories...........................................................................................................2
Background information of company..........................................................................................4
Ways in which company motivates their employees. Steps taken for ensuring that employers
remain motivated.........................................................................................................................4
TASK 4............................................................................................................................................5
Introduction..................................................................................................................................5
Financial management.................................................................................................................5
Importance of financial management ..........................................................................................6
Role of financial managers or management ................................................................................6
Sources of finance........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business studies refers to academic subject which is taught to students in schools as well
as universities in various nations. It allows in depth study about organisation, marketing, human
resource management, etc. it assist in making huge informed decisions in living of everyday
business and provides better understanding of work of world (Ghauri, Grønhaug and Strange,
2020.). For introduction to business studies, Marks and Spencer is chosen. It is major retailer in
UK which is specialised in selling food products, clothes, financial services and home essentials.
The present assessment includes case study about the company on HR area of Motivation
and the ways the entity motivates their employees. Further, the report highlights about
importance of finance functions, role of financial management and sources of finance.
TASK 2
Covered on Poster
TASK 3
Definition of HR
HR is defined as human resource which are set of people that makes entire workforce of
entity, business sector and economy. It is division of company which is charged with recruiting,
selection, training, compensation management and administering benefit programs for manpower
(Bratton and Gold, 2017). Main objective of human resource is to utilise organisational people in
most effective manner and dealing with issues like recruitment and selection, performance
management, organisational development, compensation and benefits.
Meaning of Motivation
Motivation refers to the procedure which initiates, guides as well as maintains objective
oriented attitudes and behaviours. It includes emotional, cognitive, biological addition to social
forces that have huge role in activating behaviours. Motivation arouses an individual to perform
towards desired objectives (Kanfer, Frese and Johnson, 2017). For example, When employees of
Marks and Spencer are motivated, they have satisfaction from the job and workings. Motivation
is important as it assist in self development of a person and help them to accomplish personal
goals.
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Two Motivational theories
Motivational theories are tasked with analysing what drives a person to work for
outcomes. Organisations uses motivational theory as motivated employees are more productive
as well as leads to assisting in achieving identified objectives. Common motivational theories
that are used in businesses are as follows:
Maslow's need Hierarchy theory is one of motivational theory which was defined by
Abraham Maslow in 1943. As per the theory, healthy human beings comprises certain needs and
these are arranged in hierarchy order in which certain needs that are physiological and safety are
more primitive than basic ones which are social and ego (Burton, 2020). The hierarchy of needs
is presented as five level pyramid wherein higher needs comes into emphasis when lower or
basic needs are achieved of met. The pyramid is as follows:
Illustration 1: Maslow's Hierarchy of needs. 2020
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(Source: Maslow's Hierarchy of needs. 2020)
Physiological need is the first need which includes basic requirements for an individual
survival. If the need is not satisfied properly then employees can not work optimally. For
example, In this need, employees of Marks and Spencer work to satisfy requirements for food,
drink, sleep, air, shelter and clothing. After attainment of physiological needs, objective to attain
security as well as safety needs are salient. Herein, employees have requirements for
experiencing orders, forecasting together with controlling lives. For instance, emotional and
financial security is attained at this stage. After fulfilment of safety needs, then social needs
arises which comprises feelings of belongingness. Examples includes trust, affection, love,
friendship and love. The fourth level is esteem needs that includes needs for reputation, respect
etc. The highest level is self actualisation need that refers to realising potentials, self fulfilment,
peak experiences and development. In this stage, employees have strong desire for economically,
creatively and inventions.
The other motivational theory is Herzbergs two factor theory which is propounded by
Frederick Herzberg. The theory states that there are two factors which are adjusted by an
organisation for influencing motivation. The two factors are as follows:
Illustration 2: Herzberg's theory. 2020
(Source: Herzberg's theory. 2020)
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First factor is Hygiene factor that do not stimulate employees for great performances but
causes de-motivation if do not exist. These factors establishes base level of satisfaction. Some
examples of hygiene factors are salary, physical workplace, policies and rules, working
conditions, employee relations and quality of supervisor. For example, poor hygiene factors in
Marks and Spencer may decreases job satisfaction of employees. The other is motivator factors
that encourages manpower to perform harder (Hur, 2018). Examples of motivator factors
comprises of responsibility, work itself, performance and achievements, personal growth, job
status, recognition and opportunities. For instance, great motivating factors in the company
increases satisfaction of work among employees.
Background information of company
Marks and Spencer is popular retail business which was established in 1884 at London,
UK (Marks and Spencer, 2020). The entity is specialised in selling home furnishing, footwear,
clothing, food, cosmetics, gifts and other products under private label. The company have
manpower of approx 80000 across the world. It have official presence in more that 1463
locations in different parts of world.
Ways in which company motivates their employees. Steps taken for ensuring that employers
remain motivated
Marks and Spencer uses range of methods for the purpose of motivating its manpower
without making huge spending of its benefit budget. The company uses traditional cost cutting
aspects and technology that engages staff and motivates them for innovative ideas as well as
maximum productivity. One of the way used by the company is internal social media network
Yammer which assist in bringing employees together and appraise them for contributions and
hard working. The other way is employee of the month award that recognises employees and
explains organisational values of being inspirational together with innovative. With this award,
company acknowledges outstanding achievements by its staff who have commitment and
passion to work with co workers and going extra mile for customers. The company also have
adopted other way that is staff performance incentive to motivate its people (Calnan, 2020). The
method have influenced the performances and engagement among teams as staff members shares
best practice ideas for driving sales of organisational product and meeting customer demands.
The company celebrates efforts of all its employees and recognise their contribution which
inspires and motivates its people for keeping good work.
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Administration of Marks and Spencer have taken various steps for ensuring that
employers or other superior staff remain motivated. For this, the company have creates friendly
and appealing work environment which is comfortable for all manages to work everyday. The
other step is acknowledging achievements. In this, top management team have recognised what
is done by employers and give credit to them time to time which makes employees motivated.
The other is rewarding employers through simple giving incentives for higher performances of
their team. Through encouraging friendly competition is another step that makes the employers
motivated and leading towards increasing camaraderie. Competition among teams assist
engagement and participation of employers at the company.
TASK 4
Introduction
Business studies is a broad subject that helps in devising decisions for living of company.
The report highlights about financial management, importance of financial management, role of
financial managers in organisation and sources of finance available for running the business.
Financial management
Financial management refers to area in an entity which is associated to cash and credit,
profitability as well as expenditure so that the company have means for carrying out goals in
possible satisfactory manner. It is emphasis towards current assets and liabilities, working capital
management, management of fluctuations in product cycles together with foreign currency. The
function entails management of funds in effectively and efficiently for overlapping treasury
management (Finkler, Smith and Calabrese, 2018). In context to Marks and Spencer, financial
management is involved in determining capital structure, minimising capital cost, maintaining
proper flows of cash, estimating fund requirements and maximising profits to huge possible
level. It also coordinates its task with pother departments such as IT services, marketing, human
resource and many more. With a nutshell, it deals with activities such as procuring along with
utilising funds, endeavours to reduce finance related cost and ensures availability of funds in
sufficient quantity.
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Importance of financial management
Finance is considered as lifeblood of company as it is needed for meeting essential
requirements. In case with Marks and Spencer, importance of financial management are as
follows:
 Acquiring funds: Financial management comprises acquiring required finance for the
company. In Marks and Spencer, acquiring required funds is important activity
performed by financial management that comprises possible funds sources at minimum
cost.
 Effective utilisation of funds: Financial management is significant as it properly uses as
well as allocates funds for improving operational efficiencies of entity. When finance
managers of Marks and Spencer uses available finance properly, they achieved outcomes
in form of reducing capital cost and enhancing values.
 Increasing business value: Financial management is also important as it increases
wealth of investors addition to business entity. In case with Marks and Spencer, it work
with objective of achieving maximum profits as well as higher profitability that leads to
increasing wealth of stakeholders together with company.
Role of financial managers or management
Financial managers have job role of maintaining financial health of company via
strategies related to long term financing and investment activities. In Marks and Spencer,
financial managers advises to senior management authority for profit maximising ideas, performs
data analytics and preparing financial statements. Other job role of financial managers ion the
company are as follows;
 Analysing market trends for identifying opportunities related to expansion.
 Preparing business activity reports, financial statements, assumptions or forecasts.
 Assisting management to devise financial decisions (Shapiro and Hanouna, 2019).
 Supervising employees that are party of finance department and performs financial
reporting as well as budgeting.
Sources of finance
Sources of finance are said to the provisions from where required funds are arranged to
meet day to day expenses and run the company effectively. Following are certain sources of
finance which are available to Marks and Spencer for running the business:
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Short term finance:
This means arrangement of finance for duration of 1 month to 1 year. It is also said to
working capital financing. Mentioned below are some short term finances that Marks and
Spencer have for running business effectively:
 Bridge loan: It is kind of short term loan that is taken for two years to 1 year and are
arranged quickly with requirement of little documentation (Heyman, Lescrauwaet and
Stieperaere, 2019). In Marks and Spencer, finance managers uses the option of bridge
loans for the purpose of injecting small cash fort carrying the business to run
successfully.
 Bills discounting: It is also referred as invoice discounting and purchase discounting. It
is the arrangement in which sellers recovers sales bill from certain banking institutions
prior to its due date. In case with Marks and Spencer, it sells bills to intermediary
company prior to its due date for payment. It results in less fess, interests and
administrative charge. It increases cash flows, retains control in hand of business,
facilitates early payments and better working capital. Trade credit: It is defined to delays in payment which is permitted by supplier or
creditor. With this option, Marks and Spencer asks traders to extend the payment at the
time they brings goods on credit. It facilitates buying supplies without requirement of
immediate payments and carrying out business activities smoothly.
Long term finance:
It refers to capital requirement for duration of more than 5 years to more which depends
on certain factors. The options that are available with finance department of Marks and Spencer
to arrange and run the enterprise are mentioned below:
 Term loan: It is long term secured debt which is extended by financial institutions to
companies for carrying out of running long term, projects having maturity period
between five to 10 years. With the source, Marks and Spencer arranges funding for its
projects that needs heavy investment to carry out business.
 Retained earning: It is said to accumulated net income of company which is retained at
specific time which is end of accounting period (Khanal and Mishra, 2017). With this
source, financial managers of Marks and Spencer uses financial resources for
reinvestment purposes to create growth and running operations smoothly. The source is
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available with the entity and do not required to search assistance from any outsider when
funds are required in urgent situation.
CONCLUSION
From the discussion, it is concluded that business studies helps an individual to have
knowledge about people, communities and companies. The subject builds strong foundation for
people that have wish to study management, information and technology, international business
and entrepreneurship. Motivation is reason to perform actions in specific manner. Maslow's need
hierarchy and Herzberg's two way theory are motivational theories used in businesses for
meeting needs and requirements of employees to motivate them. Finance management is
important in company as it acquires funds, increases business values and makes effective fund
utilisation. Role played by finance manager are analysing market trends, preparing financial
statements and other reports, performing data analytics and many more. The short term financing
available to run business are bridge loan, trade credit and bills discounting. The long term
finance with the company are term loan and retained earning.
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REFERENCES
Books and Journals:
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Finkler, S. A., Smith, D. L. and Calabrese, T. D., 2018. Financial management for public,
health, and not-for-profit organizations. CQ Press..
Ghauri, P., Grønhaug, K. and Strange, R., 2020. Research methods in business studies.
Cambridge University Press.
Heyman, D., Lescrauwaet, M. and Stieperaere, H., 2019. Investor attention and short-term return
reversals. Finance Research Letters. 29. pp.1-6.
Hur, Y., 2018. Testing Herzberg’s two-factor theory of motivation in the public sector: is it
applicable to public managers? Public Organization Review. 18(3). pp.329-343.
Kanfer, R., Frese, M. and Johnson, R. E., 2017. Motivation related to work: A century of
progress. Journal of Applied Psychology. 102(3). p.338.
Khanal, A. R. and Mishra, A. K., 2017. Stock price reactions to stock dividend announcements:
A case from a sluggish economic period. The North American journal of economics and
finance. 42. pp.338-345.
Shapiro, A. C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.
Online:
Burton, N., 2020. Hierarchy of Needs. [Online]. Available through:
<https://www.psychologytoday.com/us/blog/hide-and-seek/201212/our-hierarchy-
needs>
Calnan. M., 2020. Marks and Spencer takes mixed approach to staff motivation. [Online].
Available through: <https://employeebenefits.co.uk/issues/may-2015/marks-and-
spencer-takes-a-mixed-approach-to-staff-motivation/>
Herzberg's theory. 2020. [Online]. Available through: <https://www.7pace.com/blog/two-factor-
theory-hiring-engineers>
Marks and Spencer. 2020. [Online]. Available through: <https://www.marksandspencer.com/>
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