Importance of Resources in Improving Performance of Blue Inc.

This document discusses the recruitment documentation process in Blue Inc., the role of human, physical, and technological resources in improving performance, the main employability and communication skills required for specific job roles, the physical and technological resources required in the operation of Blue Inc., sources of internal and external finance, interpretation of the trading and profit and loss account and balance sheet, the importance of budget for financial control, and an illustration of the financial stage of Blue Inc.

BUSINESS RESOURCES

Table of Contents
INTRODUCTION ..........................................................................................................................1
P1 : The recruitment documentation process in Blue Inc.......................................................1
M1 : Human, physical and technological resources can improve the performance of Blue Inc.1
D1 : Managing resources and controlling budget cost can improve the performance of the
Blue Inc..................................................................................................................................2
P2 : The main employability, personal and communication skills require for specific job role.2
M2 : Importance of employability and personal skills in the recruitment and retention of staff3
P3 : The main physical and technological resources required in the operation of Blue Inc.. 3
P4 : Sources of internal and external finance for Blue Inc. ...................................................4
P5 : Interpretation of the trading and profit and loss account and balance sheet of Blue Inc.4
P6 : Importance of budget for exercising the financial control of the Blue Inc. ...................5
P7 : Illustration of financial stage of Blue Inc........................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organizations usually required has the requirement of has the requirement of various
different different resources in order to operating the company and doing the business
smoothly.Organization always required an economic or productive factor in order to
accomplishing the activity so that they can attain the desired outcome. Here resources for an
organization can be consider as a factor which is highly productive for them and some of the
important resources are land, labour, capital, energy etc. The present document is highlighting
Blue Inc. which is UK based retailer company. it is now looking for the resources which will be
helpful for them for using the social media platform and for attracting customer towards them.
As a business resource consultant of Blue Inc. the responsibility is to investigate the management
of human, physical and technological resources.
P1 : The recruitment documentation process in Blue Inc.
The documentation process of an organization should be in a way where it is clearly
demonstrate the overall selection process. it is must be in order to fulfil the requirement of
recruitment process (Berman, S 2012). The recruitment documentation work in Blue inc. done by
the HR managers. The one of the most important element in these, is clear specifications of the
the job and associated responsibility which organization required from the candidates. Job
description document can be set in following manner:
 The title of the job
 The purpose of the job
 The location of the job
 Key responsibilities of candidates
 Qualifications required for the job-holder
 To whom the job-holder is responsible
 Overall CTC provided by the organization for the particular job profile
M1 : Human, physical and technological resources can improve the performance of Blue Inc.
Human resources, are providing immense level of benefits to Blue Inc. There are
several most important role which Human resources are playing for Blue Inc. Such tasks are:
Getting better employees, creating incentives programme, provide flexible schedules and provide
appropriate data to the workforce management system.
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Physical resources, are considered as man-made equipment required in day to day
running of Blue Inc. The conditions of the fashion retail outlets of Blue Inc are efficient enough
to attracting the target customer towards them (Ma, Ding, and Hong, 2010.).
Technological resources, the Blue Inc. is using various technological resources such as:
designs, software and music instruments which are emphasizing the performance of the Blue Inc.
Moreover some other technological resources which increasing the efficiency of the organization
are the CCTV cameras, security systems, and speaker systems.
D1 : Managing resources and controlling budget cost can improve the performance of the Blue
Inc.
Managing resources, the proper management of the all resources such as
human,physical and technological will be helpful in the performance improvisation of the
organization. All the resources are perform there respective tasks in order to attaining the
objective which company sets.
Controlling budget cost, If the Blue Inc will manage and control their budget related
affairs then surely the chances to falling into financial trouble will automatically minimize, so it
is important for the organization to plan the financial activities in advance.
P2 : The main employability, personal and communication skills require for specific job role
According to the Blue Inc they are looking for the enhancing there resources for the
online platform, which will be achieve by the use of the power of activities of the social media
websites and increase the interaction with the customer by the use of social media platforms. For
fulfilling the stated purpose they required employees who are expert in the area of digital and
online marketing. The main employability, personal and communication skills which requires for
the stated role are as following:
Web designing, For the job of the online marketer the most required skill is web
designing. A good and user friendly design for Blue Inc website will be easily attract the
customer towards them (Hair, 2015).
Managing social media, As a fashion retailer the potential customer for the Blue Inc are
the people who are under the age of 11-25. The customer who are relates to these age category
are frequent visitors of various social media websites in these case the management of the social
media platform is required skill for the employee.
Writing skills, In the area of online marketing the content about the product and service
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which organization is offering plays very vital role. The employee should have attractive writing
skills for the specific job role.
M2 : Importance of employability and personal skills in the recruitment and retention of staff
Employability is concerns with the ability of a person to gain a job. The characteristics of
the employability is improvisation on the basis of strong personal and communication skills so
that it influence and attract the potential employer (Wood, Coe and Wrigley,., 2016.). The are
various skills and qualifications required from the side of the employee when they apply for a
specific job. The most important concern here is skills and qualification have to be relevant with
the job a person is applying for. Personal skills set the parameter for the candidate and determine
whether the organisation is going to hire them or not. The candidate require to express and show
that they are capable meeting the deadlines and targets.
P3 : The main physical and technological resources required in the operation of Blue Inc.
As a fashion retailer Blue Inc. required to comply various physical and technological
resources in the operation of their business. Both the resources have the equal importance in the
managing the day to day operations of the organization.
Physical resources, The main physical resource for the Blue Inc is their buildings and
outlets where they manage and run their day to day business. Building is play very crucial role in
the fashion retail business, as the image of the building or outlet can influence the target
customer (Wood, S., Coe, N.M. and Wrigley, 2016.). Many other retail stores such as Tesco have
very attractive buildings and headquarters. In the area of fashion retail another physical resource
for the Blue Inc is their products, as products are the last parameter on the basis of organization
will be able to attract customers. An appropriate mechanism for the demand and supply is also a
good physical resource for Blue Inc.
Technological resources, Here technological resources are more than just equipment.
Blue Inc is using various technological resources in their day to day operations such as:
Software, Different design, music system is the outlet, CCTV cameras and so on. In the Blue Inc
technology resources are the backbone of the organization, as they are helpful in improvising the
shopping experience of customer. Innovation in the fashion retail also emphasis the use of
technology resources in the operations of the company.
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P4 : Sources of internal and external finance for Blue Inc.
Blue Inc is using various internal and external resources for the financial prudence of the
firms. The internal and external finances of the organization are discussed below:
Equity, It is the most common source of finance for the companies. Blue Inc is a big
organization so they have the capability to use the equity for finance. The main characteristic of
the equity is sharing the rights of ownership on the other hand the present shareholders rights
will be distributed.
Debentures, Debt over equity is another form of internal finance use by Blue Inc. It is
cheaper as compare to the equity and in these the right of the shareholders are not shared.
Term loan, Term loan is mostly similar to the debentures but it is not include too much
cost on issuing activities because it provided by banks and financial institutions (Reeves, and
Deimler,2011.)
Preferred stock, Blue Inc is also include preferred stock in their day to day operations.
The preferred stock include the characteristics of both equity as well as debt stocks. The
preferred stock get priority over the equity stock in context of the payment of the dividend.
Venture capital, The venture capital is external finance for the Blue Inc. In these the
investors are the different set of peoples which are named as venture capitalist. They invest in the
company at the initial stage on the basis of overall analysis of company.
P5 : Interpretation of the trading and profit and loss account and balance sheet of Blue Inc.
By observing the income statement of Blue Inc it can be understand that there are various
items such as cost and revenue. The revenue of sales in continuously decreasing in the business
from some last years. The expenses of the enterprise are not in the control even direct and
indirect expenses are increasing rapidly. This is indicating that the performance of the firm is
poor because they are unable to control their expenses. The balance sheet is describing the asst
and liability side of the company. Asset is distributed in two parts current assets and long-term
assets whereas liabilities are also two types short and long term liability. The balance sheet of the
organization is representing that they need to improve their financial condition in order to make
themselves more competitive in the market. For the purpose of improvising the financial
condition of the company they can use some tools and techniques such as cost control and cash
management.
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A trading, profit and loss are useful in highlighting the financial performance of business
over a given period of 1 year. Blue Inc includes various financial treatment in the trading and
profit & loss account such as: sales revenue, gross profit, cost of sales. All these financial
statement are helpful in order to figure out the profit and loss made over 1 year period.
The profit after deducting the cost of goods sold from the total revenue of business in the
financial year is considered as gross profit. The gross profit figure for Blue Inc in 2014 was €
1425,000 and for 2015 € 2317,500. The figures are showing that Blue IN performance was
much better in the year 2015
P6 : Importance of budget for exercising the financial control of the Blue Inc.
A good and appropriate budget is capable enough to controlling the unnecessary expenses
within the organization. The Blue Inc managers can use the budget technique for setting the
income and expenditure target for the company. It will be helpful for the managers in order to
making the comparison between the financial outcome with the target budget and as per
according to that they can take corrective steps in the near future. The managers of the Blue Inc
required to continuously review the existing budget and take all the financial related decision
after reviewing it. If the propose course of action is already in budget then definitely managers
will be able to take decision confidently but if the action is not mentioned then managers are in a
position where they have to take financial risk. The budget and other financial plan mostly
developed at the initial stage of the project development. Managers should set the cost and the
resources adequately and proportionately. The budget is very important for the managers of Blue
Inc in order to control resources to ensuring the project completion.
P7 : Illustration of financial stage of Blue Inc
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The main problems which Blue Inc is facing that their monthly deficit is decreasing
consistently as per compare to their expenses. Sales and total income of the organization is not
showing a rapid growth as there is only slight increase. Because of these problems the cash flow
of the company is not remain smooth. The main causes behind the decrease of monthly deficit
might be decreasing sales and decreasing gross profit margin, Business is not bringing profit, the
business model is emphasis negative cash flow, excessive debt and capital expenditure and poor
stock, debt and credit management.
The simple and short sighted solution for the cash inflow and outflow problems can be
performing a good forecast regarding cash flow, evaluate the terms as how well customer and
supplier are balanced, encouraging payment discipline, segmentation of suppliers customers and
inventory and managing the cash inflow and outflow as a priority for company wide.
CONCLUSION
The above discussion is concluding that before choosing the financial resources
organization have to evaluate their present financial condition appropriately. There are various
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factors which need to be look at the time of selection the financial resources of the company. The
overlooking process of the budget should be continuous from the side of the manager of Blue Inc
for the betterment of the company. The equity is useful as it allows the sharing the rights of
ownership and distribute the right of present shareholders.
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REFERENCES
Books and journals
Berman, S. J., 2012. Digital transformation: opportunities to create new business models.
Strategy & Leadership. 40(2). pp.16-24.
Ma, Y., Ding, J. and Hong, W., 2010. Delivering customer value based on service process: The
example of Tesco. com. International Business Research. 3(2). p.131.
Hair, J. F., 2015. Essentials of business research methods. ME Sharpe.
Page, M., 2014. Business models as a basis for regulation of financial reporting. Journal of
Management & Governance. 18(3). pp.683-695.
Wood, S., Coe, N .M. and Wrigley, N., 2016. Multi-scalar localization and capability
transference: exploring embeddedness in the Asian retail expansion of Tesco. Regional
Studies. 50(3). pp.475-495.
Koen, P.A., Bertels, H. M. and Elsum, I. R., 2011. The three faces of business model innovation:
challenges for established firms. Research-Technology Management. 54(3). pp.52-59.
Reeves, M. and Deimler, M., 2011. Adaptability: The new competitive advantage. Harvard
Business Review.
Online
Budget and finance control, 2017. [Online]. Available through:<
http://www.leoisaac.com/budget/bud010.htm>. [Accessed on 5th May 2017].
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