Business Resources, Finance and Operations Report for Blue Inc.

This report provides a detailed analysis of business resources, focusing on the case study of Blue Inc., a UK-based retailer. The report begins by examining the documents required for recruitment, including job descriptions and person specifications, followed by an exploration of employability, personal, and communication skills essential for specific job roles. It then delves into the utilization of physical and technological resources within the company's operations, emphasizing their importance. The report further investigates sources of internal and external finance for the business. Moving into Task 2, the report covers the calculation and interpretation of various financial ratios, break-even analysis, and contribution calculations. Finally, it concludes with a discussion on the financial state of the business, supported by a cash-flow forecast. The report aims to provide a comprehensive understanding of business resource management and financial analysis within the context of a real-world retail organization.

BUSINESS
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Documents required for recruitment in a selected organisation...........................................3
P2. Requirement of employability, personal and communication skills while applying for a
specific job role...........................................................................................................................5
P3 Use of physical and technological resources in operations of a company.............................7
P4 Sources of internal and External finance for a selected business..........................................8
TASK 2............................................................................................................................................9
P5: Various ratios........................................................................................................................9
P6: Break-even and contribution calculation............................................................................12
P7: Financial state of business with the help of cash-flow forecast..........................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business resources are considered as a very important part of every company because
through that only companies are able to do their operations and business in the market. There are
various types of resources that are required in a business like human resources, physical
resources, financial resources, tangible and intangible resources, etc. It is the responsibility of
every company to take care of these resources as they are very scarce and less available. So, their
value is very high in company (Chaffey and White, 2010). If these resources will be utilised
effectively then company will be able to gain financial success in the market. Each of the
resource is having the ability to add a certain value to the company and it is determined by the
quantity and quality of the resources available. The organisation which will be referred in this
report is Blue Inc. It is one of the fastest growing retailers in UK. This report will help in
understanding management of human resources in an organisation, purpose of managing
physical and technological resources, assessing source of finance and interpretation of financial
resources as well.
TASK 1
P1. Documents required for recruitment in a selected organisation
It can be said that the most important business resource for any company is its human
capital resources as they are the only one who manage all the operations in the company. These
are the people who are having skills, knowledge and capabilities which are used to perform
activities of the company. Therefore, it is very important for the Human Resource Department of
company to recruit correct employees so that they can contribute in the development of company
in an effective manner. They need to take care of each and every activity of recruitment and
selection for employing right employees for the right job.
There are many documents which are required to be prepared by company before
recruiting a particular employee (Cascio, 2018). These are like job description, job specification,
person specification, etc. These documents are being prepared by company itself which contains
of all details about the job which is being offered by them to candidates.

Recruitment documentation includes all the personal details that an individual is required
to have in order to apply for the job. These documentations also consists of contract of
employment, application forms etc. The documents are like:-
 JOB DESCRIPTION – This is the document which defined the exact role of the job
and what will be the roles and responsibilities of the employee who will be selected for
the job (Montgomery, 2011). Once the candidate see it and if they fit in with the
requirements then they can apply.
Job Description
Job Title: Store manager Store Name: Blue Inc.
Type of Role: Permanent Hours: Full Time
Salary: Up to £25000 p.a. Last Date: 14/03/2018
Working with Blue Inc.
It is well known that Blue Inc. is one of the fastest growing retailing chains in UK and is doing
their business through internet as well. So, here the work management is very good and
therefore, employees get various opportunities to grow their skills and abilities in order to form
well. Store manager will be required to work with the management of Blue Inc so as to achieve
their operational goals and standards.
Competencies:
 Good communication
 Leadership
 Team work
 Decision-making and judgment
 Customer focus
Job Duties:
 Facilitation of clear communication between the retail floor staff and the office staff
 Planning a product knowledge session with several sales representatives
 Store the resources of company in an effective manner so that it can be used later on
 Attending the issues of clients in a timely manner

Requirements :
 Graduates, MBA(Marketing)
 2+ Years of experience in retail marketing
Note: Concerned candidates can send their resume to the official email id of company.
 PERSON SPECIFICATION – This is the document which tells about the type of
person which company require for a particular job (Zott and Amit, 2010). The main
factors which are included here are technical competencies, behavioural competencies
in a candidate, etc.
PERSON SPECIFICATION
Organisation: Blue Inc.
Job Title – Store Manager
Qualification – MBA or PGDM (Marketing)
Essential Criteria:
 Absolute knowledge of management skills and tools
 Strong leadership skills
 Effective sales skills and the ability to identify productive customers
 Strong interpersonal, motivational and communication skills
Desirable criteria:
 2.5+ years’ experience
 Good personality
 Knowledge about the retail policies and procedures
P2. Requirement of employability, personal and communication skills while applying for a
specific job role
Every employer wants that their employee should be professional so that they can take
their work more seriously and achieve their professional goals and objectives (Zikmund and et.
al., 2013). But being professional is not completely related to looks and attitude but it also relates
with the skills which are required to be present in a person so that they can achieve their goals
and objectives in an effective manner. So, in Blue Inc. also, the employees who are working in

company should behave professionally and make sure that each customer will get satisfied with
the behaviour of employees and they will visit the store again (Ciabuschi, Perna and Snehota,
2012).
Some of these skills can be categorised as:
Employability skills – These are the types of skills which help the employees in
conducting their job in the company in an effective manner. If an employee is having effective
employability skills then they will understand the importance of relationships inside company
and will try to maintain the same with their colleagues and managers. Some of the employability
skills include:
 Suitable qualifications
 Preferred experiences
 Knowledge of goods and services
 Efficiency in meeting the targets of company
Since every job is different so, the requirements of skills will also be different. Therefore,
it is the responsibility of the HR department to look out that which skill is required to be present
in a particular person to perform a particular job. In order to succeed in Store manager job, the
candidate is required to have suitable qualifications which includes MBA in retail marketing an
minimum 2 years of experience.
Personal skills – These are the skills which is required to be present in a person for
having a good personality but they are not having a direct connection with their job role as while
doing this only professionalism is required (Wahl and Prause, 2013). But the personal skills of an
employee is very beneficial for the business because through this they can perform their work in
more efficient manner. The skills which are included here are like Knowledge of different
languages, honesty, good sense of humour etc. If these skills are present in the person then it will
be a positive addition in the personality of a person. Some of these skills include:
 Patience and Hard Working
 Team Working skills
 Negotiation skills
 Interview Skills
So, if the candidate has to become an appropriate and effective store manager then they
will have to be a good team worker so that they can work with others in an effective manner.

They should be hard working and trustworthy as well so that company can trust them and is not
required to keep a check on them that whether they are performing their work in an effective
manner or not.
Communication Skills – This is one of the most important skill required to be present in
a person so as to communicate with each other in an effective manner (Obschonka, Silbereisen
and Schmitt‐Rodermund, 2012). If an employee is having good communication skill then they
will be able to deal with their customers in a proper manner and make sure that correct
information is reached through them. It will be very beneficial from the business context as well.
So, Store manager is also required to have good communication skills so that they can deal with
the employees as well as customers in an effective manner and help in developing the business of
Blue Inc. in an effective manner.
P3 Use of physical and technological resources in operations of a company
In each and every organisation both physical and technological resources are having a
very place. This is because without these companies will not be able to function in a proper
manner. Through these resources companies, companies are able to carry out their everyday
activities in an proper manner. Physical resources are in the form of assets like buildings, raw
materials, machinery etc. whereas technological resources are those who tries to bring efficiency
in the company by using various types of software's. So, presence of these resources are very
much required for every company and it develops the productivity in the market as well.
So, the resources which are used utilised by Blue Inc. are as:
PHYSICAL RESOURCES – Management of physical resources is very essential in Blue Inc.
because they are having so much of stock available with them which needs to be taken care of as
they will be sold by them in the store in future. It includes planning, maintenance and security of
resources as well.
Building and Facilities
It is a very important resource which needs to be present in every company as it is the place from
where they will operate (Hahn and Gold, 2014). Therefore, stores of Blue Inc. is required to have
a spacious store where they can keep all their resources at one place and in an effective manner
as well.
Materials and Machinery

It is very important for Blue Inc. to make sure that they are having good quality of raw material
for producing their resources so that it can be sold in their stores very easily. Also, the resource
manager is required to make sure that they are not wasting any materials and utilising them to the
fullest.
TECHNOLOGICAL RESOURCES: These are the types of resources which are having to
capability to improve the efficiency of the company and its employees as well (Zachary, 2011).
These techniques helps in performing the work in more east manner and in a corrective way as
well. There are so many new technologies which are being implemented in various organisations
so to complete all the activities in an effective manner. The software's which will be used by
them will be selected according to the type of work which is being done in the company. Since
Blue Inc. is a retail store which is selling fashionable clothing for people under 25 years of age
so they can make use of latest techniques for conducting their work in the company. This will
develop their efficiency as well.
It is also required to be made sure that these technologies should be used for providing
benefits to the company and should not be misused as otherwise it may bring loss to the
company. So, the referred company can make use of various technologies for providing effective
services to its clients so that they can come to the store once again. They can make use of
technologies in various forms like while showing the clothes to customers or while billing and
also for intimating the customers about the new store entering the store.
P4 Sources of internal and External finance for a selected business
Sources of finance can be defined as the method of obtaining funds for the business.
Some are for short term and is required to be paid back within one year. Some are long term
which can be returned after many years. These sources can be divided into two parts which are :
 Internal Sources of Finance – These are the funds which is arranged inside the company
like retained earning, fixed assets, currents assets etc.
 External Sources of Finance – These are the funds which is arranged from outside the
company like loans from bank.
So, the internal source of finance which can be utilised by Blue Inc. for conducting their
activities are:-
 Retained Earnings :- Every business which is successfully running in the market are
earning some kind of profit as well which is being use by the kept by company so as to

use it in emergencies (Laumer, Eckhardt and Weitzel, 2010). This is the best choice for
the company whenever they will be in the need of funds because they can take it from the
company itself and use it for their benefit only. Therefore it is compulsory for the
company to keep retained earnings as they are being used in future as well (Grönroos,
2011).
Blue Inc. is also keeping retained earnings and it can be seen in their financial statements
which they will be showing at the end of year. So, they can make use of these funds in case of
improvements.
 Savings :- It is similar to retained earnings but it is mainly prepared as a backup for the
business and for the personal use of the owners as well. If more money will be added on
this then it means that it is being received out of income from business. The benefit of
having a saving account is that it creates an option for the business owner to take capital
from. But it is having disadvantage as well like it will reduce the chances of doing more
investment in other projects. So, Blue Inc. can make use of this source for arranging
finance for the company.
The internal source of finance which can be utilised by Blue Inc. for conducting their
activities are:-
 Overdraft – Blue Inc. can make use of this source of finance for arranging funds for the
company and can pay it back at a later date. It comes with a limit which is being set by
the bank. Bank is also having the authority to decide whether the person is having the
authority to take overdraft or not.
 Bank Loan – It is also an effective method which can be used by Blue Inc. for arranging
finance for the company (Wu, 2010). It will be repayed by the business to the bank. Since
the loan is taken, business will have to pay interests till the loan is not completely
repayble. It is being taken against a fixed assets which is being owned by the business.
TASK 2
P5: Various ratios
Gross profit: It is known as total gains a company make after deducting overall costs
related with formulating and selling their products and services (Wahl and Prause, 2013). It is
mainly appearing on company’s profit and loss statement.

Formula for computing:
Gross profit: Total sales- COGS (Cost of good sales)
: 87912-38481=49431
Gross profit margin: It is known as financial metric which uses to assess a company's
financial position and business model through revealing the total amount of cash left out of
revenues.
Gross profit margin: Gross profit /Total revenue *100
: 49431/87912*100=56.22%
Net profit: It is said to be bottom line, net gains or earning which is a measure of
profitability of a venture after accounting for every costs and taxes (Obschonka, Silbereisen and
Schmitt‐Rodermund, 2012). It is actual gain which consists of operating all expenditure that are
eliminate from gross profit. The total amount by which income from sales is wider than all
expense.
Income statement
Particular Amount
Sales 87912
Less: COGS 38481
Gross profit 49431
Less: Overhead expense
Wages 28566
Carriage outwards 139
Rent 4400
Rates and insurance 3561
Advertising 1369
bad debts 879
Fixed expenses as depreciation 120
Van 2500
Total overhead exp, 41534
Net profit 7897

Net profit margin: It is the total amount of percentage of revenue which is left after
deducting every expenses out of total sales (Hahn and Gold, 2014). This measurement reveals
the amount of gain that a company can extract from its total revenue.
Net profit margin: Net income / Total sales *100
: 7897/87912*100= 8.98%
Current ratio: It is used to measure company's stability of an organisation to meet their
short term financial obligations that is commitment during an accounting period of time. The
ideal ratio is 2: 1, it means that for every 1 CL business needs to carries 2CA to cover them.
Current ratio: Current assets/Current liabilities
: 72000/50000=1.44
Return on capital employed: This particular ratio is the most appropriate indicators of
the total earning capacity of capital employed in a business. ROCE is hence a ratio that indicates
the efficiency and profitability of a company's investments.
ROCE: EBIT/ capital employed *100
: 7897/130000+75000*100
: 3.85%
a):
Fixed assets:
Land and building 150000
Machinery 180000
Vehicles 90000
Total fixed assets 420000
b):
Current assets
Stock 34000
Debtors 26000
Bank 12000
Total current assets 72000
c)
Current liability
Trade creditor 18000

Taxation 19500
Dividends 12500
Current liability 50000
d):
Particular Amount
Fixed assets:
Land and building 150000
Machinery 180000
Vehicles 90000
Total fixed assets 420000
Current assets
Stock 34000
Debtors 26000
Bank 12000
Total current assets 72000
Total Assets 492000
e):
long term liability
Long term loans 75000
Capital 130000
Net assets employed 205000
P6: Break-even and contribution calculation
Calculation of contribution
Selling price ₤15.00
Less: various costs
Direct materials ₤2.50
Direct labour ₤5.50
Variable overhead ₤1.00