Unit 2 Business Resources: Performance of Blue Inc. Analysis

This report provides a comprehensive analysis of Blue Inc.'s business resources. It begins with an overview of the recruitment documentation process, detailing job descriptions and responsibilities for an online marketer role. The report then examines how human, physical, and technological resources can improve Blue Inc.'s performance, emphasizing the importance of resource management and budget control. It also identifies key employability, personal, and communication skills required for specific job roles, particularly within the context of online marketing. The report further explores the importance of these skills in staff recruitment and retention. Additionally, it outlines the main physical and technological resources necessary for Blue Inc.'s operations and details both internal and external sources of finance. Finally, the report interprets the trading and profit and loss accounts, alongside the balance sheet, highlighting the significance of budgeting for financial control and illustrating the financial stage of Blue Inc.

UNIT 2. BUSINESS
RESOURCES
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Table of Contents
INTRODUCTION 1
P1 : The recruitment documentation process in Blue Inc...........................................................1
M1 : Human, physical and technological resources can improve the performance of Blue Inc.1
D1 : Managing resources and controlling budget cost can improve the performance of the
Blue Inc.......................................................................................................................................2
P2 : The main employability, personal and communication skills require for specific job role.2
M2 : Importance of employability and personal skills in the recruitment and retention of staff3
P3 : The main physical and technological resources required in the operation of Blue Inc.......3
P4 : Sources of internal and external finance for Blue Inc. .......................................................4
P5 : Interpretation of the trading and profit and loss account and balance sheet of Blue Inc.....4
P6 : Importance of budget for exercising the financial control of the Blue Inc. ........................5
P7 : Illustration of financial stage of Blue Inc............................................................................5
CONCLUSION 6
REFERENCES 7
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INTRODUCTION
Organizations usually required has the requirement of has the requirement of various
resources to operating the company and doing the business smoothly. Organization always
required an economic or productive factor to accomplishing the activity so that they can attain
the desired outcome. Here resources for an organization can be consider as a factor which is
highly productive for them and some of the important resources are land, labour, capital, energy
etc. The present document is highlighting Blue Inc. which is UK based retailer company. it is
now looking for the resources which will be helpful for them for using the social media platform
and for attracting customer towards them. As a business resource consultant of Blue Inc. the
responsibility is to investigate the management of human, physical and technological resources.
P1 : The recruitment documentation process in Blue Inc.
Online Marketer for Blue Inc.
Job description
Job Title : Online marketer
Department : Marketing
Responsible to : Digital marketing manager
Purpose of the Job :
 To planning managing and measuring all social media activities on day to day basis
 To improve Blue Inc. profile by developing its online presence
 To provide support the objectives of increase selling activities, collection of marketing
information and others
Job responsibilities :
 Develop and update online marketing strategies that will support Blue Inc. to achieve its
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aims as part of the marketing and communication plans
 Updated with new technologies and keep organization at forefront of development in
online marketing
 Use proper analytics to evaluate, measure and report against performance and goals of
all online marketing activities and plans
 Moderate and oversee the Blue Inc. presence on social media platform
Job requirements :
 Degree in Digital marketing, E-business or related field
 2 Year of experience in respective field
 Proven experience across main social media sites
 Strong verbal and written communication skills
The documentation process of an organization should be in a way where it is clearly
demonstrating the overall selection process. It is must be to fulfil the requirement of recruitment
process (Berman, S 2012). The recruitment documentation work in Blue inc. done by the HR
managers. The one of the most important element in these, is clear specifications of the job and
associated responsibility which organization required from the candidates. Job description
document can be set in following manner:
 The title of the job
 The purpose of the job
 The location of the job
 Key responsibilities of candidates
 Qualifications required for the job-holder
 To whom the job-holder is responsible
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 Overall CTC provided by the organization for the particular job profile
M1: Human, physical and technological resources can improve the performance of Blue Inc.
Human resources, are providing immense level of benefits to Blue Inc. There are
several most important roles which Human resources are playing for Blue Inc. Such tasks are:
Getting better employees, creating incentives programme, provide flexible schedules and provide
appropriate data to the workforce management system.
Physical resources, are considered as man-made equipment required in day to day
running of Blue Inc. The conditions of the fashion retail outlets of Blue Inc are efficient enough
to attracting the target customer towards them (Ma, Ding, and Hong, 2010.).
Technological resources, the Blue Inc. is using various technological resources such as:
designs, software and music instruments which are emphasizing the performance of the Blue Inc.
Moreover, some other technological resources which increasing the efficiency of the
organization are the CCTV cameras, security systems, and speaker systems.
D1: Managing resources and controlling budget cost can improve the performance of the Blue
Inc.
Managing resources, the proper management of the all resources such as human,
physical and technological will be helpful in the performance improvisation of the organization.
All the resources are performing their respective tasks to attaining the objective which company
sets.
Controlling budget cost, If the Blue Inc will manage and control their budget related
affairs then surely the chances to falling into financial trouble will automatically minimize, so it
is important for the organization to plan the financial activities in advance.
P2 : The main employability, personal and communication skills require for specific job role
According to the Blue Inc they are looking for the enhancing their resources for the
online platform, which will be achieve using the power of activities of the social media websites
and increase the interaction with the customer using social media platforms. For fulfilling the
stated purpose, they required employees who are expert in digital and online marketing. The
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main employability, personal and communication skills which requires for the stated role are as
following:
Employability skills :
Web designing, For the job of the online marketer the most required skill is web
designing. A good and user-friendly design for Blue Inc website will be easily attract the
customer towards them (Hair, 2015).
Analytics and return of investment, In an online world Blue Inc. will face various
issues such as: identify trends and continuous monitoring of online activities. Analytical
reporting is important for company to evaluate online marketing budget and investment
planning.
Communication skills :
Managing social media, as a fashion retailer the potential customer for the Blue Inc are
the people who are under the age of 11-25. The customer who are relates to these age categories
are frequent visitors of various social media websites in these cases the management of the social
media platform is required skill for the employee.
Writing skills, in online marketing the content about the product and service which
organization is offering plays very vital role. The employee should have attractive writing skills
for the specific job role.
Personal skills :
Work under pressure, Online marketing is very competitive sector, marketer should be
able to perform better in adverse situation and should have skills to meeting deadlines
appropriately.
Team player, For developing the effectiveness of online channels organization is using,
it is essential that whole team work with better co-ordination. Online marketing plan cannot be
successful with individual effort, whole team need to perform with proper alignment.
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M2 : Importance of employability and personal skills in the recruitment and retention of staff
Employability is concerns with the ability of a person to gain a job. The characteristics of
the employability is improvisation on the basis of strong personal and communication skills so
that it influence and attract the potential employer (Wood, Coe and Wrigley,., 2016.). They are
various skills and qualifications required from the side of the employee when they apply for a
specific job. The most important concern here is skills and qualification must be relevant with
the job a person is applying for. Personal skills set the parameter for the candidate and determine
whether the organisation is going to hire them or not. The candidate requires to express and show
that they are capable meeting the deadlines and targets.
P3 : The main physical and technological resources required in the operation of Blue Inc.
As a fashion retailer, Blue Inc. required to comply various physical and technological
resources in the operation of their business. Both the resources have the equal importance in the
managing the day to day operations of the organization.
Physical resources, the main physical resource for the Blue Inc is their buildings and
outlets where they manage and run their day to day business. Building is play very crucial role in
the fashion retail business, as the image of the building or outlet can influence the target
customer (Wood, S., Coe, N.M. and Wrigley, 2016.). Many other retail stores such as Tesco have
very attractive buildings and headquarters. In fashion retail another physical resource for the
Blue Inc is their products, as products are the last parameter on the basis of organization will be
able to attract customers. An appropriate mechanism for the demand and supply is also a good
physical resource for Blue Inc.
Technological resources, here technological resources are more than just equipment.
Blue Inc is using various technological resources in their day to day operations such as:
Software, Different design, music system is the outlet, CCTV cameras and so on. In the Blue Inc
technology resources are the backbone of the organization, as they are helpful in improvising the
shopping experience of customer. Innovation in the fashion retail also emphasis the use of
technology resources in the operations of the company.
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P4 : Sources of internal and external finance for Blue Inc.
Blue Inc is using various internal and external resources for the financial prudence of the
firms. The internal and external finances of the organization are discussed below:
External source of Finance :
Equity, it is the most common source of finance for the companies. Blue Inc is a big
organization so they have the capability to use the equity for finance. The main characteristic of
the equity is sharing the rights of ownership on the other hand the present shareholders rights
will be distributed.
Debentures, Debt over equity is another form of external finance use by Blue Inc. It is
cheaper as compare to the equity and in these the right of the shareholders is not shared.
Term loan, Term loan is mostly like the debentures but it is not including too much cost
on issuing activities because it provided by banks and financial institutions (Reeves, and
Deimler,2011.)
Preferred stock, Blue Inc is also including preferred stock in their day to day operations.
The preferred stock includes the characteristics of both equity as well as debt stocks. The
preferred stock get priority over the equity stock in context of the payment of the dividend.
Venture capital, the venture capital is external finance for the Blue Inc. In these the
investors are the different set of peoples which are named as venture capitalist. They invest in the
company at the initial stage based on overall analysis of company.
Internal source of finance :
Retained earnings, Retained earning/profit is internal source of finance which Blue Inc.
is using. This is also considered as medium and long term source of finance, which refer to
profits which retained by the company reinvest in the business.
Sale of stock, For the purpose of quickly raising the finances Blue Inc. is selling stocks,
it is useful as selling off stocks decreases the cost associated with holding them. This is
considered as short term internal source of finance.
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Sale of fixed assets, This is also a better way for Blue Inc. to raise their finances from an
asset which is no longer in use. The money which organization gain is from selling of their fixed
assets.
P5 : Interpretation of the trading and profit and loss account and balance sheet of Blue Inc.
Sales 87912
COGS: cost of Goods Sold 38481
49431
Overheads:
Wages 28566
Carriage outwards 139
Rent 4400
Rates and Insurance 3561
Advertising 1369
Bad Debts 879
Depreciation: Fixtures 120
Van 2500
41534
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7897
Gross profit 49431
Net sales 87912
Gross profit ratio 56%
Net profit 41534
Net sales 87912
Net profit ratio 47%
Current assets 72000
Current liability 18000
Current ratio 4.00%
Net profit 41534
Capital employed 188000
ROCE 22%
Gross profit margin : It is considered as a financial metric used for assessing financial
health and business model of a company. It reveals the proportion of money which is available
with the company over from revenues after the accounting of cost of goods sold (COGS). The
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gross profit margin of Blue Inc. is 56%, which defines that company is earning more than
average profit.
Net profit margin : Net profit margin is considered as the percentage of revenue left after
the deduction of all the expenses from sales. The calculation of net profit margin reveals the
amount of profit that a business is generating from its total sales. After the calculation it is
analysis that the net profit margin of Blue Inc. is 47%, which indicating that company is making
profit out of their total sales.
Current ratio : The current ratio also named as liquidity ratio measures the ability of a
company to pay short and long term obligations. The current ratio refers to current total assets of
a company in relates to their current total liabilities. The current ratio which Blue Inc having is
4%.
ROCE : Return on capital employed (ROCE) is considered as a financial ratio which
measures the profitability and efficiency of a company on which their capital is employed.
ROCE is calculated by dividing earnings before interest and tax with capital employed. The
return on capital employed for Blue Inc. is 22%.
By observing the income statement of Blue Inc, it can be understanding that there are
various items such as cost and revenue. The revenue of sales in continuously decreasing in the
business from some last years. The expenses of the enterprise are not in the control even direct
and indirect expenses are increasing rapidly. This is indicating that the performance of the firm is
poor because they are unable to control their expenses. The balance sheet is describing the asset
and liability side of the company. Asset is distributed in two parts current assets and long-term
assets whereas liabilities are also two types short and long-term liability. The balance sheet of the
organization is representing that they need to improve their financial condition to make
themselves more competitive in the market. For improvising the financial condition of the
company, they can use some tools and techniques such as cost control and cash management.
P6 : Importance of budget for exercising the financial control of the Blue Inc.
Particulars Amount
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Sale £15
Less variable cost per unit (2.50+5.50+1)
= £9
Contribution £6
Fixed cost £10000
BEP Fixed cost/contribution per unit
= £10000/6
= 1667 units
Changes in BEP
Particulars Earlier cost New costs
Selling price 15 14
Variable costs
Direct material 2.5 3
Direct labour 5.5 5.5
Variable overhead 1 0.75
Contribution 6 4.75
Fixed costs 10000 11000
BEP Fixed cost/contribution per unit Fixed cost/contribution per unit
BEP 1667 units 2315.78 units
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