Analyzing Business Resources: A Comprehensive Report

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Unit 2 Business Resources
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Table of Contents
Assignment Title 1- Recruiting and Retaining the Right People...............................................3
Introduction............................................................................................................................3
Task 2.....................................................................................................................................3
Conclusion..............................................................................................................................4
Assignment Title 2- The Impact of Non-Financial Resources...................................................5
Introduction............................................................................................................................5
Task 1.....................................................................................................................................5
Task 3.....................................................................................................................................6
Conclusion..............................................................................................................................6
Assignment 3 - The Role of Financial Resources......................................................................7
Introduction............................................................................................................................7
Task 1.....................................................................................................................................7
Task 2.....................................................................................................................................8
Task 3...................................................................................................................................10
Conclusion............................................................................................................................11
Assignment 4 - Income Statements, Balance Sheets and Ratios.............................................12
Introduction..........................................................................................................................12
Task 1...................................................................................................................................12
Conclusion............................................................................................................................14
Reference List..........................................................................................................................15
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Assignment Title 1- Recruiting and Retaining the Right People
Introduction
The present task will introduce the significance of job advertisement and documentation for
recruitment process. The skills will be mentioned that are required for the role of HR
assistant.
Task 2
Use the internet to find a current vacancy for this business and obtain all the relevant
documents – Job Description, Job Specification and Application form
1. Starting with the job advert and finishing with the contract, describe the recruitment
documentation used and what purpose it fulfils. It may be useful to use screengrabs
(p1)
According to Flecke (2016, p. 9), job advertisement contains the information about the job
role for which Ms Morris would be recruiting to fill the vacancy in the organisation. The
enhancement in the information provided in the advertisement facilitates attracting the job
seekers to apply for the role (Flecke, 2016, p. 9). Low information can be provided through
job advertisement by using newspapers, banners, websites, and such while high information
can be provided through brochures, campus events and such methods (Flecke, 2016, p. 11).
As opined by Vivek (2018, p. 31), documentation in the recruitment process provides
transparency to the employer regarding the candidates applied for the job (Vivek, 2018, p.
31). The recruitment process includes screening of the documentation such as CV to be
confirmed of the authenticity of the contents provided in the resume submitted by the
candidates. The organisation should also have compliance checklist in order to avoid penalty
by adherence of the anti-discrimination law of the country. The HR should not discriminate
among the candidates in recruitment based on their religion, race, gender, and such factors.
2. Describe the main employability, personal and communication skills required when
applying for this job role. (p1)
Employability skills – qualifications, experience, product knowledge, effectiveness in
meeting targets, ability to raise standards
3

In the role of HR assistant, the candidates applying in the organisation should have
employability skills such as experience in the relevant field to carry out the job. As observed
by Ulrich and Dulebohn (2015, p. 7), they should be highly qualified as well as have
knowledge of the functions that they would be performed after selection in the organisation
(Ulrich and Dulebohn, 2015, p. 7). The candidates in the role of HR should be able to meet
targets for enhancing the business prospect. They should be able to raise standards of the firm
by recruiting talented candidates after being appointed for the role of HR assistant.
Personal skills – hardworking, patient, team worker, interpersonal skills, negotiation,
ability to resolve conflict
The HR assistant should be hardworking and able to perform effectively in team. According
to Chebet et al. (2015, p. 27), should be able to negotiate and have interpersonal skills such as
good communication to make interaction with the candidates applied in the firm (Chebet et
al. 2015, p. 27). The HR assistant should be able to resolve conflict between the members for
enhancing the working culture.
3. Explain how you meet the criteria for the job (employability, personal and
communication skills). Filling in the application form may help with this (p2)
The candidate selected for the job role of HR assistant has some required employability and
interpersonal skills that would assist it in meeting the goal of the company. The personnel is
qualified with the bachelor’s degree in Business Management. It has basic knowledge about
the job role such as recruitment, development, onboarding, and such functions of HR.
Therefore, it can be assumed that the candidate will be able to meet standards of business by
recruiting appropriate candidates and meet targets of business. The candidate also has some
personal skills such as patience and communication that is desirable for the role of HR
assistant. These characteristics of the candidate would let the functions of recruitment and
development of employees done smoothly in the organisation.
Conclusion
It can be deduced from the task provided above that the skills of negotiation and
communication are necessary for the role of HR assistant. There is importance of
advertisement and documentation in the organisation for attracting and on boarding the
authentic candidates.
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Assignment Title 2- The Impact of Non-Financial Resources
Introduction
The provided study will discuss the physical and technological resources utilized in the
selected company, Future Solutions. The ways of management of these resources conducted
by the organisation will be discussed as well.
Task 1
1. Using your chosen organisation describe the main physical resources they use. This
would include buildings, facilities, materials, machinery, ICT etc. How do they look
after them eg maintenance, refurbishment and security. Images would be useful. Select
the way you present it carefully (p3)
The physical resources used by the organisation Future Solutions include the registered office
building that is located in the UK. The facilities used by the organisation include electricity,
water supply and other basic requirements. The materials include stationeries, lighting
system, and others while the machinery such as printer, computer system and such are
utilised to carry out the business process. This equipment supports the business’ personnel in
performing the official tasks efficiently. Communication technologies such as telephones,
internet, and like are used in the organisation to make communication with the clients
(Kumar, 2014, p. 1022).
Figure 1: Refurbishment of computer system
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Figure 2: Office building maintenance
Future Solutions look after them by proper maintenance of the systems and utilisation of
security methods in the computer system to protect the data of the clients. Refurbishment of
the infrastructure assists the company in enhancing the appeal of the working environment.
For instance, maintenance of the ICT system aids the organisation in making communication
with the clients without obstacles.
Task 3
3. Using your chosen organisation describe the main technological resources they use.
This would include hardware, software, networks, licences, virus protection, intellectual
property, their experience and skills etc (p3)
The technological resources used in the organisation include hardware such as computer
system, networks to connect with the clients, and others. The virus protection system such as
ERM- SIEM tools protects the computer system from malware (Patterson, 2015, p. 12). The
personnel working in the firm are skilled in different fields such as project management, web
design, technical architecture and others. They are experienced in different industries such as
public sector companies, finance as well as aviation industry. This assists the firm in
providing vital consultancy services to the clients that aid the latter in business development.
Conclusion
It can be deduced from the presented task that the technological and physical resources used
in the organisation have been described as well as their importance has been explained.
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Assignment 3 - The Role of Financial Resources
Introduction
This study consists of the discussion on funding needed in Scrumptious Cupcakes, its
breakeven as well as budget issues while showing how financial resources play its role in
entities.
Task 1
1. Scrumptious will need to access funding to expand. Write a letter to the owners,
Heather and Annabel Dean, explaining the Internal and External sources available to
them. You need to relate the options to their business. (p4)
To
Annabel and Heather Dean
Scrumptious Cupcakes Ltd
RE: Suggesting available funding sources for business expansion
Respected ma’am and sir,
This is to bring to your notice that there are varying sources available inside and outside the
business, from which Scrumptious Cupcakes can be acquiring funds for its expansion.
Amongst them, the two most significant internally available sources are its savings worth
£20000 and the profit it has had in the previous accounting year.
On the other hand, the externally available sources that are suggested on being used in taking
commercial mortgages, using overdraft facilities from the bank while availing loans. The
business can also depend upon leasing, selling of equity shares, factoring and venture
capital for its expansion. Each of these options will help it in generation considerable amount
of funds within it.
Thanking you,
Yours faithfully,
_____________________
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Task 2
1. a) Calculate their current breakeven point and explain what this means (p6)
The breakeven point refers to the stage of a company that occurs in a while wherein an
organisation ends up earning neither profit nor loss and its costs equals its sales (Jolly, 2017,
p. 125).
Breakeven point of the Scrumptious Cupcakes Ltd
= Total value of fixed expenditure ÷ (Price at which cupcakes are sold - Variable per unit
expenditure)
= £4300.00 ÷ £ (17.75 - 0.6)
= 3739 units
b) Draw their breakeven chart, annotating in a manner that explains it to Scrumptious
(p6)
The following graph is the breakeven chart created for the Scrumptious Cupcakes Ltd -
500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000
0
2000
4000
6000
8000
10000
12000
Breakven chart
Fixed Cost Total Cost Sales
Figure 1: Breakeven chart
(Source: Learner)
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The chart above indicates the point of breakeven of the entity Scrumptious Cupcakes Ltd.
Through a detailed interpretation of this chart, one can find out that the number of units
needed being sold off for the attainment of the point of breakeven in the entity is 3739 units.
c) Re-calculate the breakeven and explain the impact on the business (p6)
The following is the recalculated breakeven and the new breakeven chart of the Scrumptious
Cupcakes Ltd
= Total value of fixed expenditure ÷ (Price at which cupcakes are sold - Variable per unit
expenditure)
= £4100.00 ÷ £ (1.75 - 0.55)
= 3417 units
0 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 5500 6000
0
2000
4000
6000
8000
10000
12000
Fixed Cost
Total Cost
Sales
Figure 2: Recalculated breakeven chart
(Source: Learner)
From the interpretation of the recalculated breakeven point and the analysis of the impact that
it would have on the business indicates that due to the reduction in its fixed costs and the
variable expenses, the attainment of the breakeven in Scrumptious Cupcakes Ltd will now be
easier. The business can now sell 322 units of cupcakes lower than what it used to sell
previously for attaining the breakeven.
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Task 3
2. a) Explain to the sisters what a budget is and why it is essential they monitor them.
Look to included monitoring Fixed and Variable costs, applying for resources such as
loans and ability to deal with emergencies (P6)
One can elucidate a budget as the anticipation of the costs, resources and revenues in an
entity for a forthcoming accounting period reflecting upon its financial objectives
(Wildavsky, 2017, p. 3).
Budget monitoring is necessary in entities since they are beneficial for ascertaining financial,
capital and operational plans that the entities create while keeping a detailed track of its
variable and fixed expenses (Mayne, 2017, p. 67). It also assists in the maintenance of
capacity of an entity for dealing with emergencies while applying for loans and overdrafts.
b) Using the budget information above, identify the problems and suggest remedies.
(P6)
Using the budgetary information of the Scrumptious Cupcakes, the following variances have
been determined -
Table 1: Budget variances of Scrumptious Cupcakes Ltd
(Source: Learner)
From the above table and variance analysis of the Scrumptious Cupcakes Ltd, it can be
determined that there are varying problems in the business, the most important amongst
which have been mentioned beneath -
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 Adverse and unfavourable sales in the company
 Excessive spending of fixed costs
 Ingredients, utility and other variable costs also indicate unfavourable variance and result to
excessive spending in it
 Profits earned within the company are remarkably lower than the budgeted profit
In order to resolve the above problems, the below are the recommended strategies to
Scrumptious Cupcakes Ltd -
 Continuous monitoring of budget
 Optimising preparation of budgets and the process of forecasts
 Effectual control of costs
 Performance of variance analysis on weekly basis
 Creation of strong and effectual budget goals
 Keeping detailed track of financial information and transactions
Conclusion
Thus, from this study, the role played by financial resources in an entity has been derived and
its various aspects have been determined.
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Assignment 4 - Income Statements, Balance Sheets and Ratios
Introduction
This study will discuss regarding the income and balance sheet with their respective purposes
and users while showing how ratio analysis can be used in entities.
Task 1
1. a) Explain the purpose of the Income Statement, the key parts and who would use it
(P5)
The primary purpose due to which income statements are prepared include determination of
the net revenues a company has collected, its operating income in addition to the net profit it
has accomplished in order to reflect its financial performance (McLean and Talbert, 2016, p.
95-102). The key parts of the income statement are -
 Revenues
 Cost of goods sold
 Gross income
 Operational expenses
 Operating income
 Taxes and interests
 Net income
The users of an income statement include owners, investors and creditors of an entity.
b) Explain the purpose of Balance Sheet (including establishing net worth and business
valuation), the key parts and who would use it (P5)
In addition to establishment of a business’s valuation and its net worth, the balance sheet of
an entity is also used with the purpose of measuring its liquidity and solvency in addition to
its market valuation (Goldsmith et al., 2015, p. 9). Its key parts include -
 Current and non-current assets
 Current and non-current liabilities
 Equity capital
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