Business Studies Report: Motivation Theories, Funding and Investment

This report provides an overview of motivation theories and their application in a business context, specifically focusing on the example of Jack Store, a discount store of Tesco. It explores various motivational theories, including content theories like Maslow's Hierarchy of Needs and Alderfer's ERG theory, and process theories such as Vroom's Expectancy theory and Adam's Equity Theory. The report further analyzes funding sources for Zylla Limited, differentiating between long-term and short-term financing options and their respective advantages and disadvantages. Additionally, it covers investment appraisal techniques like Net Present Value (NPV) and Internal Rate of Return (IRR), providing insights into their application and effectiveness in evaluating project profitability. The report concludes by emphasizing the importance of motivation for organizational success and the need for a balanced approach to funding strategies and investment decisions. The report is supported by references to books and journals on the subject.

Introduction of business
studies

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Motivation theory ........................................................................................................................1
Source of funds for Zylla Limited...............................................................................................2
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Motivation refers to process which initiate, maintains and guide specific behaviour among
different person. It provide ways to business in which they can encourage their staff members to
contribute their best in order to provide success to business (Murnieks, Klotz and Shepherd,
2020). It is considered as integral part of process in which managers of company create urge and
willingness among employees to give their best for attainment of goals and objectives. This
project report includes analysation of new discount stores of Tesco which is Jack Store. It is part
of on going strategy of Tesco that assist them to get competitive position in market against Aldi
and Lidl. This project report includes analysation of motivational theories that satisfy
requirement of Tesco management. It also consist advantage and disadvantage of these theories
in Jack discount stores.
MAIN BODY
Motivation theory
Motivation theory can be described as understanding of drives of a person in order to work for
specific goal as well as outcome. It is important member of society and also for business and
management (Alsawaier, 2018). It helps business to employees that make their employees more
productive. There are basically two types of motivational theories there which create impact over
motivation of a person. Explanation of these motivation theories are mentioned below:
Content theories:
It is one of theory of motivation that focus on what and focus on different aspect like what
people feel related to needs of their lives. As per this theory, motivation of people is based on
acquisition of different things which is required by a person. There are different types of theories
included in this theory which are mentioned below:
 Maslow Hierarch of need theory: It is one of theory which was given by Abraham
Maslow in the year 1950. It is a theory that focus in different type of needs of a person
like social needs, safety needs, self esteem needs, basic and self actualisation needs
(Dörnyei, 2020).
 Alderfer's ERG theory of need: It is a motivation theory that was introduced by Clayton
Alderfer in the year 1960. It is a theory which consist three types of needs like
relatedness, growth and existence.
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 McClelland's Theory of Needs: It is a motivation theory which was introduced by
David McClelland in the year 1960. It is a theory which based on three types of
emotional needs of a person including power, affiliation and achievement.
 Herzberg's Two Factor Theory: It is a motivation theory that was introduced by
Fredrick Herzberg in the year 1950. This model emphasis that safety as well as salary is
important in order to overcome of dissatisfaction at work and also recognition and
autonomy motivate them (Schunk and DiBenedetto, 2020).
Process theories:
Process theory of motivation is one which focus on how and follow psychological as well as
behavioural process followed by a human. Understanding of this process make is easy for a
person to understand action context and interaction that motivate individual (Breaugh, Ritz and
Alfes, 2018). There are different theories included in this types of motivation which are
mentioned below:
 Skinner's Reinforcement theory
 Vroom's Expectancy theory
 Adam's Equity Theory
 Locke's Goal Setting Theory
Source of funds for Zylla Limited
In order to run successful business, Zylla Limited require funds from different source. These
source includes both long term and short term funds which are mentioned below:
Long term financing: It is one of financing which can be raised by firm for long period of time.
It can be used for investment in fixed assets like purchase of ferry, expansion and other things
(Katabi and Dimoso, 2018). It consist different source of funds which are mentioned below:
 Equity financing
 Corporate bond
Short term financing: It is one of financing which can be raised by a person for short period of
time. It is used by business in order to meet day to day requirement and also improve liquidity of
business. Some of short term finance required by business are mentioned below:
 Commercial paper
 Promissory note
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Both of these funds has its own advantage and disadvantage (Yin, Wu and Wang, 2021). It is
recommended to Zylla Limited to use both of the source in balanced manner in order to meet
both short term and long term requirement of business.
Investment appraisal is one of techniques which provide guidance to manager about which
project or investment is more attractive and profitable for company. There are different types of
investment appraisal techniques used by a person and explanation of these are mentioned below:
Net present value: This technique can be used by company for purpose of identification of
investment planning. It can be calculated by identifying different among present value of cash
inflow and outflow for specific period of time (Balakin, 2021). It can be calculated on basis of
following formula:
Cash inflow – Cash outflow
Internal Rate of return: It is one of technique of investment appraisal which is also known as
discount rate. It can be calculated on net present value by comparing different operation (Selim,
2021). Calculation of IRR can be based on following formula:
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IRR of Zylla Limited is 30.019 and its NPV is 0%.
IRR is based on profit generated by firm and allow firm to calculate it in effective manner. It is a
company which used both techniques in order to calculate profitability for firm (Puie, 2020). But
NPV is considered as more effective techniques as it allow firm to get quick results.
CONCLUSION
From above mentioned project report, it can be concluded that motivation is one of important
component for an organisation as it allow employees to give their best and also allow firm to get
success. There are different types of motivation theories to be adopted by business like content
theory and process theory. There are also different types of source of funds which can be
required by firm like long term financing and short term financing.
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REFERENCES
Books and Journals:
Alsawaier, R.S., 2018. The effect of gamification on motivation and engagement. The
International Journal of Information and Learning Technology.
Balakin, I.A., 2021. Model of creating value in business acquisition transactions with borrowed
funds. Kant, 38(1).
Breaugh, J., Ritz, A. and Alfes, K., 2018. Work motivation and public service motivation:
disentangling varieties of motivation and job satisfaction. Public Management Review,
20(10), pp.1423-1443.
Dörnyei, Z., 2020. Innovations and challenges in language learning motivation. Routledge.
Katabi, R.J. and Dimoso, R., 2018. Relationship Between SMEs Sources of Funds and
Investment Evaluation Techniques. Business and Management Studies, 4(4), pp.61-70.
Murnieks, C.Y., Klotz, A.C. and Shepherd, D.A., 2020. Entrepreneurial motivation: A review of
the literature and an agenda for future research. Journal of Organizational Behavior,
41(2), pp.115-143.
Puie, F.R., 2020, July. The role of European funds in developing and sustaining rural
entrepreneurship in Romania. In Proceedings of the International Conference on
Business Excellence (Vol. 14, No. 1, pp. 134-148).
Schunk, D.H. and DiBenedetto, M.K., 2020. Motivation and social cognitive theory.
Contemporary Educational Psychology, 60, p.101832.
Selim, M., 2021, December. Opening Qard Hasan accounts as sources and uses of funds and its
effects on the market share of Islamic banks. In 2021 International Conference on
Sustainable Islamic Business and Finance (pp. 75-78). IEEE.
Yin, J., Wu, J. and Wang, Z., 2021. Analysis of Funds Flow and Mechanism of Securities Assets
Management. In Whither has the Money Gone (pp. 95-110). Springer, Singapore.
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