Business Report: Analysis of Hendy's Ltd Customer Service and Finance

This report provides a comprehensive analysis of Hendy's Ltd, examining various aspects of its business operations. It begins by outlining the job description and requirements for a customer service manager, emphasizing the necessary skills and qualifications. The report then delves into the importance of employability, personal, and communication skills for a customer assistant position. It explores the sources of internal and external finance available to Hendy's Ltd, discussing the advantages and disadvantages of each. The report also covers the contents of a trading and profit and loss account, as well as a balance sheet, and discusses the use of budgets as a means of financial control, including different budget types and their applications. Finally, it examines the financial state of a given business, including income statements and balance sheets, providing an overview of financial statement analysis.

BUSINESS RES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P2.................................................................................................................................................2
P3.................................................................................................................................................2
TASK 3............................................................................................................................................3
P4. Sources of internal and external finance for a Hendy’s Ltd. ...............................................3
P5. Contents of a trading and profit and loss account and balance sheet..................................4
TASK 2............................................................................................................................................4
P6. The use of budgets as a means of exercising financial control.............................................4
P7. The financial state of a given business.................................................................................5
Income Statement........................................................................................................................6
Cash Flow Statement...................................................................................................................6
CONCLUSION................................................................................................................................6
..........................................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human, financial, physical, and knowledge factors that provide a firm the means to
perform its business processes. Though there is no guarantee for success, an entrepreneur who
has properly prepared has a leg up on the competition. The most important element in starting a
business is funding. Financial resources can be obtained from a variety of sources, the easiest
being from the personal accounts of the company’s founder.
TASK 1
P1.
Job description- Customer services manager at Hendy's Ltd are there to ensures that
customers are satisfied with the services they are being given, they also need to ensures that
other staff are complying with the businesses policy to provide excellent customer services. Such
services managers will also help develop and implement the specifies of the organization
customers service policy, find the way to measures customer satisfaction, improve services,
manage a team of customer services staff and handle enquires from customers.
Requirement of the job that Hendy's Ltd want the customers service employees to have:
Soft skills
 Communication skills- Needs to be sufficient enough to be able to help and
inform customers and instruct colleagues on customer service policies.
 Listening skills- To understand what customers need and listen to input from
other colleagues on how to improve customer service.
 Problem solving skill- Be able to address any issues that are bought up from either
colleagues or customers.
 Confidence, patience, politeness, tact and diplomacy.
 Motivational skills- Helps with the ability to lead a team of customer service
assistants.
 Creative thinking skill- Gives the ability to come up with new improvement to the
consumers service policies.
 An ability to work well under pressure.
 Organizational and planning skills.

 Good personal presentation as well be working face to face with people.
Hard skills
 Business studies degree.
 Consumer studies degree.
 Marketing degree.
P2.
In this task I will be describing the main employability, personal and communication
skills required when applying for a customer assistant position at Hendy's Ltd. Sometimes the
qualifications don’t matter depending on the particular job, but most of the time, employers will
only take on people who have sufficient qualifications. The qualifications show that they have
put a lot of effort into their education and care about their future. It is possible that the job they
are applying for is a particular career path that they want to pursue for a long time; this would
mean they would have had extra education, showing their dedication. In this case, the job is a
customer assistant at Tesco, so personal skills would be more important than the qualifications
they have. They may need to have a certain number of qualifications, to show they are well
educated, but what they are wouldn’t really be a primary concern. Another quality that
employers would regard this as higher importance that the qualifications, depending on what job
it is. For example, a builder would need plenty of experience to get a job at a big firm, rather
than their qualifications.
P3.
At Hendy's experience with interacting with customers would be a big necessity as they
will be interacting with customers. In time of financial difficultly, it is expensive for employers
to hire new staff and train them as this cost time and money. Recruitment costs, agency fees, and
salary as well if the company gives benefits to workers, may mean that the business is unable to
create a new post. In these situations they may look to promote staff from within the company.
This is because it is cheaper than getting someone new. This will give the chance for an existing
employee to show off what they have learnt and their potential in progressing in the company. Or
the employer might be able to create a new post at a relatively low salary, this will then leave the
burden on the applicant in whether or not to take the job or look somewhere else.
In order to find work that is financially rewarding and personally satisfying, it is
important that you prove to your employer that your are the right person for the job. Having good
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interview skills will give you the edge in getting a job this is because you ca basically sell
yourself and your skills. This will also demonstrate your communication skills which will be
important in your working life.
TASK 3
P4. Sources of internal and external finance for a Hendy’s Ltd.
For a business to run successfully on a daily basis it needs finances. Success comes when
a business expands, reinvests and uses human resources to run. Hendy’s Ltd need money to run
their business effectively and successfully. It needs finance for its daily running of the business
for example, paying staff wages, paying bills for electricity and rent, paying taxes on time and
ordering stock regularly. For a long term goal, Hendy’s Ltd would need the finance to expand
their business, franchise, buy new equipment and or buy new buildings around the current
building to expand the area.
Other organisations such as charities and or non-profit organisations cannot route for this
direction. Hendy’s Ltd however can take this procedure very effectively as they are a well-
established and profitable business that can take out a large retained profit to reinvest into their
businesses. Hendy’s Ltd could use this investment to expand their business as well as gain a
larger market by attracting new customers. Fixed assets are another way to convert assets into
cash. Any equipment or items such as computers, TV, furniture and vehicles can be converted to
cash by selling them. This procedure may be appropriate for as small business to gain quick cash.
For Hendy’s Ltd this procedure may take longer and the amount may not be large enough to
invest in. Hendy’s Ltd is a large business and a large investment is needed to expand the
business.
Trade credit is a way of short borrowing and or delaying payments to suppliers so that the
business cycle for Hendy’s Ltd can run smoothly. Delaying payments for as long as possible can
ruin the relationship between the supplier and the business. This may also affect the sales and
discounts that the supplier may offer in the future. For Hendy’s Ltd this may not be a bad
procedure because Hendy’s Ltd is a large business and its cash cycle can take a while to go
around. It is always good to pay the full amount within a month of purchase to avoid bad.
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P5. Contents of a trading and profit and loss account and balance sheet
Disadvantage for business. Some businesses are unlikely to have profit from the
substances that they sell and can be slow method of raising finance for organisation. 4) Capital
from Profits: Once a business starts to run properly it may be able to invest its money that came
for their profit. This means that even bigger profit can be made in upcoming days. The amount of
profit in Waitrose depends on how much profit the owners want to keep for themselves against
how much they wants the business to expand.
Being given, they will also focus and concentrate on the reputation of Tesco. If the company has
a bad reputation then customers and other companies may not shop and buy products from them.
For instance, if another company offered to buy ten thousand units of baked beans and they were
not successfully delivered, this would create a bad reputation for the company. The managers
would not only have to make sure that these situations are not to occur but how to handle them if
they were to occur.
TASK 2
P6. The use of budgets as a means of exercising financial control.
Transfer-Encoding: chunked A budget is an estimate of income and expenditure for a set
period of time. This will allow or provide a particular amount of money. There are many
advantages for a business to use a budget. Firstly, budgets are good to see where they are
succeeding and where they may be failing. If a business do not have enough funds to meet
budgeted targets they will need to follow their contingency plan. However a budget may be able
to identify where they can save money before they need to follow their back up plan. This can be
done especially if business decide to use zero-based budgets. This is because everyone in each
department will have to justify why they need money, therefore business will be able to highlight
the departments that who don?t need as much money as they may have been given in the past.
However, budgets can also become a problem.
Budgets need to be changed as circumstances change which means more effort and more time
needs to be put into correcting the budgets.
This will cost businesses more money and time used on this could have been used in
other important areas. There are many different types of budgets. First there is sales budgets, this
forecasts how much stock will be sold. There is also production budgets which forecast how
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much stock needs to be made. Additionally, purchases budgets outline the material requirements
of production budget and labour budgets outline the labour requirements of production budget.
Furthermore, there is capital expenditure budgets which summaries new assets that may be
needed and cash budgets forecasts the money flowing in and out of the business. Lastly, there is
master budgets which is a summary of all budgets to forecast profit and loss.
However if they cannot reach break-even point then Nintendo may need to cut costs by
finding cheaper raw materials or making some staff redundant. Nintendo may also need to raise
the prices of their products. However they will need to ask them self?s if customers will be
willing to pay a higher price and do research within competitors in order to higher their prices.
From break-even analysis Nintendo will be able to see how changing costs and sale prices will
affect how much they need to sell. They can see this by using a spreadsheet or chart which
highlights clearly the break-even point. If the fixed costs increase Nintendo will need to sell
more products to break-even.
P7. The financial state of a given business.
Financial statements for businesses usually include income statements, balance sheets,
statements of retained earnings and cash flows. It is standard practice for businesses to present
financial statements that adhere to generally accepted accounting principles (GAAP) to maintain
continuity of information and presentation across international borders. Financial statements are
often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax,
financing or investing purposes.
Balance Sheet
The balance sheet provides an overview of assets, liabilities and stockholders' equity as a
snapshot in time. The date at the top of the balance sheet tells you when the snapshot was taken,
which is generally the end of the fiscal year. The balance sheet equation is assets equals
liabilities plus stockholders' equity, because assets are paid for with either liabilities, such as
debt, or stockholders' equity, such as retained earnings and additional paid-in capital. Assets are
listed on the balance sheet in order of liquidity. Liabilities are listed in the order in which they
will be paid. Short-term or current liabilities are expected to be paid within the year, while long-
term or noncurrent liabilities are debts expected to be paid after one year.
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Income Statement
Unlike the balance sheet, the income statement covers a range of time, which is a year for annual
financial statements and a quarter for quarterly financial statements. The income statement
provides an overview of revenues, expenses, net income and earnings per share. It usually
provides two to three years of data for comparison.
Cash Flow Statement
The cash flow statement merges the balance sheet and the income statement. Due to accounting
convention, net income can fall out of alignment with cash flow. The cash flow statement
reconciles the income statement with the balance sheet in three major business activities. These
activities include operating, investing and financing activities. Operating activities include cash
flows made from regular business operations. Investing activities include cash flows due to the
buying and selling of assets such as real estate and equipment. Financing activities include cash
flows from debt and equity. This is where analysts can also find the amount of dividends paid
and/or dollar value of shares repurchased.
CONCLUSION
Though there is no guarantee for success, an entrepreneur who has properly prepared has
a leg up on the competition. The most important element in starting a business is funding.
Financial resources can be obtained from a variety of sources, the easiest being from the personal
accounts of the company’s founder.
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REFERENCES
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Online
Business resources. 2017. [Online]. Available Through:
<http://www.economicsonline.co.uk/Competitive_markets/The_labour_market.html> .
[Accesses On 16th August 2017].
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