Business Resources, Recruitment, and Financial Planning for Tesco PLC

This report provides a comprehensive analysis of business resources, using Tesco PLC as a case study. It begins by examining recruitment documentation, including job descriptions and person specifications, and then delves into the skills required for specific job roles within the organization. The report then explores the various resources needed for Tesco's operations, categorizing them as physical, technological, and human resources. Following this, it analyzes different financial sources available to businesses, such as retained profit, personal savings, and shareholders. The report also covers the contents of a trading and profit and loss account and illustrates the use of budgets as a means of exercising break-even analysis. Finally, it demonstrates the financial state of a given business. The report aims to provide a holistic view of the resources essential for business operations and financial management, using Tesco as a practical example.

Business Resources

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
P1. RECRUITMENT DOCUMENTATION.........................................................................................................3
P2. SKILLS REQUIRED FOR SPECIFIC JOB ROLE.............................................................................................4
P3. RESOURCES REQUIRED IN THE OPERATION...........................................................................................6
P4. FINANCIAL SOURCES SELECTION FOR BUSINESS ..................................................................................7
P5. CONTENTS OF TRADING AND PROFIT LOSS ACCOUNT..........................................................................8
P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF EXERCISING BREAK EVEN.....................................8
P7- ILLUSTRATE THE FINANCIAL STATE OF A GIVEN BUSINESS....................................................................9
CONCLUSION...............................................................................................................................................9
REFERENCES..............................................................................................................................................10

INTRODUCTION
The report is undertaken in order to make emphasis on the resources which is needed by
businesses in order to effectively and efficiently undertake the operations further which it is
essential to manage the role of all the resources into the organization. Thus for this purpose the
organization taken into account is Tesco.
P1. RECRUITMENT DOCUMENTATION
The need to recruit an extra member of staff is identified. A new job description is set out, or an
existing one is updated; this will include the job title, the person in which the employee will be
responsible to and a list of all the tasks they will undertake in their work. The job specification is
reviewed and revised; this will include essential qualifications, essential characteristics, desirable
qualifications and desirable characteristics (Chaffey and White, 2010). Advertisements are
designed and placed in appropriate media: they could advertise the job on notice boards,
company newsletters, employment agencies, job centres, head hunting, careers service or youth
training. Job details and application forms are sent to applicants: the employer will some details
from the employee such as personae details (name, BOB, address), education and qualifications,
work experience, post of responsibility, other interests and the name and contact details of 2
referees.
Applications are sorted out and a shortlist is drawn up this short list is drawn up by the
employer reading the letter of application and CV, discussion of the good points, identifying one
way the application could have been improved, grading of the application (A, B, C or marks out
of lo) and decided which 2 applications are the best and why.
Interview invitations are sent to shortlisted applicants
Interviews take place (and an oral job offer may be made): they take interviews in order
to find out if the person is able to the job well and to find out if the person will “fit” in the
organisation.
Referees are invited to comment if the references are satisfactory, a written job offer is sent
The offer is accepted and a written contract of employment is signed (Montgomery, 2011).
Layout for person specification

Job description This should highlight the major requirements
of the job in a concise format
Activities and market place There should be a brief description of the
environment in which the organisation
operates
Location Applicants need to know the location the
organisation and the location of the job
Salary expectation Figures are not always necessary, but an
indication of the salary level (or a recognised
grade) should always be given
Address and contact This should appear, with a telephone number
if appropriate
Qualifications Certain jobs require a minimum entrance
qualification, which should 1 clearly stated
Experience This should be made clear as it will have a
bearing on the expected salary level for the
job
Fringe benefits The advertiser may wish to mention a
company car, health scheme, ect.
P2. SKILLS REQUIRED FOR SPECIFIC JOB ROLE
Organisation: Tesco PLC
Job Role: Helpdesk Administrator
Job requirements Description of the main
(as detailed on Job
employability, personal
Evidence of how y meet these
Description and/or
and communication skills
skills
Employability skills Employability skills are I
meet the employability skills
those skills necessary for
getting, keeping and being
I meet the employability
skills required for this job and
have acquired them across
experiences in my personal

required them across
experiences in qualifications
successful in a job. To
succeed ¡n the Helpdesk
Administrator position ¡n
Tesco PLC, the candidate
must have Suitable
qualifications. In this job, the
candidate will be required to
have GCSE English at grade
c or equivalent. This is the
minimum criteria which is
essential to be considered
employable by Tesco
life, my work life and through
my education.
I possess the suitable
qualifications which are
necessary for this job. I
have A grades in
English at GCSE Level. This
allows me to meet the
requirements which are
needed to even be considered
for this job.
Through my work life, I have
gained experience in a similar
field/role. I work part time as
an Office Adminstrator in
XYZ agency.
Experience in similar sector
(Administrative experience)
The candidate must also have
experience in the industry.
Administrative experience in
a busy, pressurised
environment is essential for
this job to ensure the person
¡s experienced and suitable
for this job.
In this job, I carry out roles
similar to the ones which are
a part of the helpdesk
adminstrative role in Tesco
(Truong, 2010).
Experience in this field has
allowed me to improve my IT
skills, including
Microsoft suite, something
that
Tesco require for the
application process.. I have
worked in a pressurized
environment and this has give

me valuable insight into how
a busy, successful office runs.
M2
Memorability and person skill is very important because by this way manager of the
company will be able to examine skill of candidate and individual will select the most talent
candidate in the organization. Skills of manager will help in motivating the employees, by this
way they will like the workplace and will stay in the organization for longer duration. Manager
will understand the needs of workers with the help of its memorability skills and will treat them
accordingly. It will enhance confidence of the people and they will retain in the organization for
longer duration.
P3. RESOURCES REQUIRED IN THE OPERATION
Physical
At Tesco the building they use ¡s essential towards the day to day running of the business. In
order for the business to provide products and services to its customers they will need different
in-house resources to facilitate the smooth running of the business. A building on its own would
not be enough for the store to be fully operational, they need materials such as; shelves (to
display items), fridges and freezers (to keep cold and frozen items ¡n the right condition until
they are sold), tills (so they have a recorded system of what is sold and how much it costs),
lighting, computers (for administration) etc (De Clercq, Lim and Oh, 2013).
Another physical resource that is required for the operation of the business is insurance,
some insurances are required by law for businesses to have this includes employers’ liability
insurance which provides insurance in case anything happens to employees as a result of the
business, Tesco also pays for public liability insurance that covers any injuries to the public that
are caused by negligence. Building and contents insurance is also necessary to ensure that the
store will not lose too much money if the store is ever damaged, vandalized or stolen from.
Security can be an issue for big companies like Tesco, this is because people find it easier
to steal from big corporations than litt le independent shops, most Tesco shops are open 24/7 so
they hire security staff that are there around the clock, Tesco also uses security cameras and

security tags (on expensive or commonly stolen items) to facilitate the work of the security
guards.
Organisations are required to have policies and provisions for what should happen if an
emergency within the building occurs (Truong, 2010). If an emergency was to happen all the
employees will know exactly what to do, organisations must also have the equipment within the
building ready to use if necessary.
Technological
Tesco uses software that is loaded on to all their technology. The software is the
programe that tells the technological items, like tills, what to do, it is loaded with all the bar
codes of items the store sells which means employees can quickly and easily scan items and the
tills will add it up with the least human labour possible, Tesco would not be able to operate well
if it didn’t have the specific software because the software keeps everything in check with what’s
coming in and what’s coming out.
Experience and skills are necessary for Tesco to work as a business, skills are required
for the higher up jobs in the business such as management. Intellectual property needs to be kept
secret as it is required for Tesco to ensure that new ideas they come up with to improve the store
will not be stolen and used in other competing stores (Ricart and Casadesus-Masanell, 2011)
M1
Aim of Tesco is to enhance its brand image and expand its business across the world. For
that it is essential that it uses advanced technologies. Sufficient technological resources can help
the cited firm in improv9ng its quality that would increase satisfaction level of the consumers.
By this way it will be able to reduce its operational cost thus, performance of the company will
get increased.
Human resource will help the firm in improving its operations, skilled people will
contribute well in achieving goal of the organization. Physical resource such as material etc. will
help in conducting operation in smooth manager so that overall goal of Tesco will be achieved.
P4. FINANCIAL SOURCES SELECTION FOR BUSINESS
Retained Profit can be defined as the amount of money that ¡s left over when the all the
overhead and costs of business have been deducted. Retained profit could be used by a business
to pay shareholders as a dividend or to invest in new equipment such as a new state of the art to
make the business more efficient This is a good source of finance for Tesco to use as it is there

for them to use and they don’t need to go to the bank or any other organisation to borrow
money /loan which can be a lengthy process as they will be looking at the financial side of the
business to see whether they would be able to pay the loan back. Also by using profit they won’t
owe any interest to the bank.
Personal Savings can be defined as the amount of personal money that the owner himself
puts into the business. Personal savings could be used by a business to pay staff their wages or to
reinvest into the business to revamp the décor or front house of the store. This is a good source of
finance for Tesco to use because like the previous source; it is there for them to use and they
don’t need to go to the bank or any other organisation to borrow money /loan which can be a
lengthy process as they will be looking at the financial side of the business to see whether they
would be able to pay the loan back. The owner of the Tesco can use his own money in whichever
way he chooses and doesn’t need to get anybody’s approval.
Shareholders can be defined as people who have bought a share/stake within the business
Shareholders may be used by a business like Tesco to invest in new produce or stock for the
business like new food products such as meat and rice or flour, they could also be used to invest
in new tables or chairs for the restaurant, the amount would just depend on how many shares
they sold. This is a good source of finance for Tesco to use as they would not have to get a bank
loan and so would not have to pay interest back. The shareholders could also then help the owner
with the running of the retail store.
P5. and M3 CONTENTS OF TRADING AND PROFIT LOSS ACCOUNT
A Trading, Profit and Loss account (Income Statement) can be defined as an account that
highlights a business’s financial performance over a given period of 1 year which includes the
sales revenue, Cost of sales, Gross profit, expenses and Net profit of the organisation or business.
The purpose of the Trading, Profit, and Loss account is to show the business whether or not ¡t
has made a profit or made a loss over that 1 year period thus giving a better insight to the
business owners to see whether the business venture is successful or not and if it’s worthwhile
for them to trade (Truong, 2010). If an owner sees that he/she are making a huge loss then they
may decide to stop trading as the business venture will be deemed unsuccessful as the business
will be losing a lot of money due to making a loss.
Trading, profit and loss account can be defined as accounting records of an entity
that helps in understanding the business financial performance of the organization, The main

purpose of income statement is to identify the cash flow in the organization so that managers can
make necessary action for improving the revenues of entity. It includes gross profit, net profit,
expenses of an entity. Trading account includes turnover, opening stock, gross profit of the
organization.
By looking upon the figures it can be interpreted that turnover, opening stock and gross
profit are three major content of trading account. By looking upon the figures it can be
interpreted that revenue of Tesco was in the year 2015 62284, in year 2016 it was 54433 but in
2017 nit gets increased 55917.From the data it can be said that Tesco is performing well but still
is revenues are changing frequently. Prior to 2016 its profit was higher as compare to now. By
looking upon cost of revenues it can be said that it has been increased since 20156 to 2017. In
2014 it was 59547 but in 2015 it reached to 64396. After that company has made effective
control over its cost thus, in 2016 cost got down little.
By looking upon the income statement and profit and loss account it can be
interpreted that tesco is performing well and its profit is increasing day by day.
Illustration 1: trading account of TESCO

Illustration 2: income statement of Tesco

Illustration 3: Balance sheet
By looking upon the income statement it is found that it has three main content
gross profit, net profit and expenses. Gross profit of Tesco is increasing rapidly. Balance sheet
contains three parts assets, liability and equity shares. Gross profit ratio of Tesco in the year 2016
was 5.3 but in 2017 it reaches to 5.2. Asst turn over ratio was same in both years which is 1.24%.
Return on equity was in 2016 1.76 but in 2017 it was -0.53%. Current ration of entity reaches
from 0.75 to 0.79 from 2016 to 2017. That shows company is using its assets well and its
outstanding is in control it can repay it on time easily. Quick ration has been increased from 0.59
to 0.66 from 2016 to 2017.

P6. ILLUSTRATE THE USE OF BUDGETS AS A MEANS OF
EXERCISING BREAK EVEN
Number of customers in the ratio of Sales Revenue and Total Cost.
50 x £25,000 = £1,250,000
100 x £25,000 = £2,500,000
150 x £25,000 = £3,750,000
200 x £25,000 = £5,000,000
250 x £25,000 = £6,250,000
300 x £25,000 = £7,500,000
350 x £25,000 = £8,750,000
400 x £25,000 = £10,000,000
450 x £25,000 = £11,250,000
As you can see from these results, Tesco only need 350 customers to break even seeing
as the total costs of the store are £8,000,000. Budget at Tesco, like all businesses/charities etc.
have budgets. These budgets are made by looking at how much profit the company makes each
year.
If the store had 400 customers then they would make an extra £2,000,000 a year. This would
mean that their budget would be a lot higher than if they had 350 customers and made £750,000
a year.