Motivational Theories and Sources of Finance

This document discusses the theories of motivation and their benefits or drawbacks in the context of Tesco, a British multinational retail company. It also explores the different sources of finance, both short and long term, and their significance for businesses. The report includes an overview of Maslow's Hierarchy of Needs and Adam's Equity Theory as motivational theories, and highlights the importance of equity and incentives in motivating employees. Additionally, it covers various investment appraisal techniques such as payback period and net present value.

Introduction to Business
studies

Contents
TASK 3............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Theories of motivation.................................................................................................................1
CONCLUSION................................................................................................................................3
TASK 4............................................................................................................................................4
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Short term and long term sources of finance...............................................................................4
Various investment appraisal techniques.....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

TASK 3
INTRODUCTION
Motivation is an activity of motivating and inspiring individual within a firm so that they
can execute their allotted work and duties or responsibilities in appropriate way by attaining their
set aims and objectives. To encourage employees, leaders within a venture accept several
leadership forms (Taylor and Richards, 2018). This document is based in Tesco that is a British
multinational grocery and general merchandise retail company. Now, this organisation is going
to open its discount store named as Jack Stores. The written report will discuss about
motivational theories and their benefits or drawbacks.
MAIN BODY
Motivation is understand as an essential factor that motivates individuals of a company to
perform task according to set and offered guidelines by the business venture. When enterprises
take effective measures to fulfil the demands of workforce, it makes a sense of believe and faith
in employees and they tend to become more involved with the company. They execute well and
assist the venture in form of attaining its set business objectives and aim in adequate form timely.
Theories of motivation
Tesco is a British retail company that operate its business globally and has been leading the
domestic market over the course of time. The senior administration of the company felt that the
competition in respective business is maximising. Because, there are number of rivals like
ASDA, LIDL and ALDI etc. that offer their goods and services to their consumers on discount
pricing that help in maximising market share or revenue and capturing large market share. So to
earn competitive edge, the administration of Tesco has announced to launch Jack Stores in future
that also offer goods on discount prices (Ghauri, Grønhaug and Strange, 2020). The management
of respective firm can adopted several motivational theories like Maslow Hierarchy and Adams
Equity Theory etc in form of encouraging workers who are executing their duties in these kinds
of outlets.
Maslow Needs Hierarchy Theory
It is an effective and important concept of motivation that is used to present the needs of
the workers distressing the company in form of a pyramid. This method of motivation can be
implementing by administration of Tesco to motivate its workforce to execute their
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responsibilities in Jack Stores by fulfilling their desires and requirements. The description of this
concept regarding Tesco is as:
Physiological needs- It consist basic demand of individual associated to food, water,
clothes and shelter etc. that can be satisfied by the management by offering a good salary (Mills
and et. al., 2019). For example, in Tesco, the administration can provide efficient pay to those
workers who will execute their duties in Jack Stores so that they can fulfil their basic needs.
Safety and security needs- This requirement can be satisfied by the administration of
Jack Stores by providing health services like insurance and medical amenities. If this need will
be fulfil then employees will feel safe and execute their responsibilities and do their work for
development of the venture.
Social needs- In Tesco, the management of the firm can satisfy this requirement of
workers by making effective interaction with them through open communication so that they can
share their thoughts and issues with their seniors. When employees has effective support of
seniors then this requirement can be accomplish.
Esteem needs- Thus kind of needs can be satisfied by the company by offering respect,
esteem etc. to workforce. In respective company, the administration provides reward its workers
by analysing their good performance in Jack Stores. The individual who do well are respected by
other people of the business venture.
Self actualisation needs- This level of need connected to growth and success of
employees, So in Tesco, the management organised training and development programs sp the
workers of Jack Stores can make enlargement in their skills and knowledge. It will assist in
making growth personal as well as professional extent.
Merits and demerits of Maslow Theory
Advantages- This theory is easy and simple in nature and can be used and understand by
a firm in adequate way. It is active as it defines motivation because a changing attribute from one
extent to next.
Disadvantages- This concept is hard to evaluate the satisfaction that is gets by employees
after the fulfilment of their needs as it is subjective in nature and deal with human beings
(Dumas and et. al., 2018).
Adam’s Equity Theory
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This concept of motivation is adopted by the companies to increase the morale of the
workers of the organisation. This theory works on the deductions that form should provide equal
treatment to all workers. Jack Stores assure that the inputs of the workforce that are defused by
them in form of working hours, loyalty of the company and employees obligation, are met with
effective results such as reward, performance measurement, bonus etc. For example if the
employees is advantageous in form of incentives, bonus, extra leave, salary increment and many
more then they feel motivated (Woodward, 2019). In Tesco, the management of the company
can assure that workers in Jack Stores keep encouraged at all time and used their all effectiveness
for the success of the company. It would relate dispute of sympathetic efficiency on the parts of
workers to deal with extensive competition in retail industry.
Merits and demerits of Adam’s Equity Theory
Advantages- This theory is able to add to both concept and act of motivation and also
make administrators to acknowledge that equity encourage tends to be one of the effective
purpose of the workers.
Disadvantages- It is complex to measure the insight of the worker towards inputs and outputs
ratio. This conception does not involve all motivation components (Howard, Wood and
Stonebraker, 2018).
CONCLUSION
It has been concluded from the above explain content that motivation is an appropriate
activity of motivating individual of the firm so that they feel encouraged and execute their
assigned work and duties in effective manner by attaining set vision and mission. By
implementing adequate conception of motivation, a firm can encourage its workers so that they
do their work and perform responsibilities in form of developing market position, brand image as
well as maximising market share and productivity of the business organisation in effective and
efficient manner.
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TASK 4
INTRODUCTION
To establish a business in a specific business industry or running a business activities and
operations in effective manner, finance and capital is an important factor that is crucial for the
growth and business operations. For this business venture raise find form different financial
sources (Olalla and Merino, 2019). This document is based in Zylla Limited which is a company
that operate a number of ferries that offer river crossing services to individuals, vehicles and
goods across a river. The report will include information about short and long term sources of
fund and diverse investment appraisal techniques.
MAIN BODY
Short term and long term sources of finance
Sources of finance refer to the provision to a firm to cover its short term working capital
needs and liger term fixed assets and investments. Sources of finance for business are equity,
debt, debentures, retained earnings, term loans and venture funding etc. These sources of funding
are utilised in several situations. They are categorised on the basis of time, period, ownership,
control and their source of generation.
Long term source of finance
It refers to those sources whose capital requirements for a period of more than 5 years to
10, 15, 20 years may be more that based on the other factors. In Zylla Limited, the administration
of this firm can adopt this option with the motive of acquisition and making expansion in its
business. Share capital, equity share, preference capital, retained earnings, debenture, venture
funding, international financing as ADR and foreign currency loans, team loans from
government, financial institutions and commercial banks are some source of long term finance.
These sources of finance are basically beneficial for a company when it is looking to scale up
and expand. These kinds of sources of fund can be either connected to the ownership of the
venture, a debt and a mix of both. The advantages of adopting and using long term financial
sources are large volume of finance that can be increased by it (Kruglanski and et. al., 2018). In
reference to respective venture, the organisation can use and accept these source to acquire the
new ferry and make expansion in its business.
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Equity capital- This defines the company’s permanent interest-free fund, generated via
publicly or privately routes. Whereas other firm can raise and borrow fund from the public via
IPO or it can determine to take an important sum of investment in the team from an organisation
(Courtney, 2018).
Term loans- They are basically provided over more than a week by banking or financial
companies. They have acquired loans from banks mostly in term of property federal building,
equipment another fincial sources regarding solid leverage provided by a venture.
Short term source of finance
It states financing for a period of less than 1 year. The requirement of these kind of
financial sources occurs to finance the existing assets of a business like an inventory of raw
material and finished goods, debtors, minimum cash and bank balance and many more. Short
term funding sources are also known as working capital financing. In Zylle Limited, the
management of this company can also adopt this option of funding in term of acquisition and
expanding business. Trade credit, short term loans like working capital loans from commercial
banks, fixed deposits, advances received from consumers, payables, creditors, factoring services
and bill discounting etc. are source of short term funding. The basic aim and objective behind
adopting or getting short term financial sources are to accomplish ant temporary shortfall in the
capital. The constraint of short term finance is the limited amount of finance that can be raised.
Trade credits and commercial papers are effective examples of short term source of finance. The
administration of respective venture can also adopt these forms of finance in term of its business
expansion and acquiring new ferry.
Instalment credit- It is also known as consumer loan and businesses typically use it to
market across another. The service that is provided on simple instalment by the machinery
retailers as this assists and offer equity to a firm well to it. It needs depreciation on outstanding
amounts and it effectively calculated to permit the purchasing entity to finance these out of
actual cash reserves. Commercial financial institutions provide this term of debt on here on
moderate side.
Consumer credit- Several periods the manufacturers of the distributors demands, the
customers continue mostly in situation of online shopping and big deliveries, the target audience
allowance is based on the cost of commodities which they order (Acevedo, 2018). The consumer
even pays the high cost on occasion. It is a source of income and free from rivalry.
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Various investment appraisal techniques
Investment appraisal is the system of measuring the argument to continue with the project
plan and the feasibility of the project, in a formal manner (Taylor and Richards, 2018). There are
several investment appraisal techniques, the description of some of them as under:
Payback period- Some of the easiest methods for evaluating investment is the repayment
period. Payback strategy defines how long it will take for the company to manufacture enough
cash flow to compensate the overall cost of proposal. The advantage of this technique is that the
calculation and understanding of it is easy and simple and individuals who are not from the
history of finance can certainly acknowledge that.
Net present value- It is the most popular investment appraisal activity, it is the amount of
accumulated potential project-associated cash inflow and outflow. The total average capital fund
is basically the discounting determinant for upcoming time revenues in the net current value
technique (Mills and et. al., 2019). This formula evaluates the cumulative net cash flows from
the expenses by the less expected return rate and minimise initial expenditure to give the “NPV”.
Calculation:
Year Cash flow PV @ 3% DCF
0 -150000 1 -150000
1 55230 0.971 53628.33
2 70045 0.943 66052.435
3 88375 0.915 80863.125
4 79870 0.888 70924.56
5 57555 0.863 49669.965
5 45000 0.836 37620
NPV 208758.415
IRR 34.14%
Payback Period 1.49
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CONCLUSION
This has been summarised that to run a business, there are several kind of sources of finance
are required like long and short term. These are assisting to business to organise all the actions in
effective way. To investment to any project need to implement different kinds of investment
techniques that assist to choose right project to get effect returns.
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REFERENCES
Books & Journals
Taylor, P.H. and Richards, C.M., 2018. An introduction to curriculum studies. Routledge.
Ghauri, P., Grønhaug, K. and Strange, R., 2020. Research methods in business studies.
Cambridge University Press.
Mills, R.J. and et. al., 2019. Examining IS curriculum profiles and the IS 2010 model curriculum
guidelines in AACSB-accredited schools. Journal of Information Systems Education, 23(4), p.8.
Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2018. Introduction to business process
management. In Fundamentals of Business Process Management (pp. 1-33). Springer, Berlin,
Heidelberg.
Woodward, R., 2019. The Spiral Curriculum in Higher Education: Analysis in Pedagogic
Context and a Business Studies Application. E-Journal of Business Education & Scholarship of
Teaching, 13(3).
Howard, H.A., Wood, N. and Stonebraker, I., 2018. Mapping information literacy using the
Business Research Competencies. Reference Services Review.
Olalla, C.B. and Merino, A., 2019. Competences for sustainability in undergraduate business
studies: A content analysis of value-based course syllabi in Spanish universities. The
International Journal of Management Education, 17(2), pp.239-253
Kruglanski, A.W., Shah, J.Y., Fishbach, A. and Friedman, R., 2018. A theory of goal systems.
In The motivated mind (pp. 215-258). Routledge.
Courtney, S., 2018. Why adults learn: Towards a theory of participation in adult education.
Routledge.
Acevedo, A., 2018. A personalistic appraisal of Maslow’s needs theory of motivation: From
“humanistic” psychology to integral humanism. Journal of business ethics, 148(4), pp.741-763..
Online
Maslow's Hierarchy of Needs. 2020. [Online]. Available Through:
<https://study.com/academy/lesson/the-needs-theory-motivating-employees-with-
maslows-hierarchy-of-needs.html>.
Adams Equity Theory. 2020. [Online]. Available Through:
<https://www.toolshero.com/psychology/adams-equity-theory/>.
Sources of Finance. 2020. [Online]. Available Through: <
https://efinancemanagement.com/sources-of-finance>.
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