Business Resources and Financial Analysis Report for Next PLC

This report provides a comprehensive analysis of business resources, focusing on Next PLC, a British multinational retail company. It begins by examining recruitment documentation, employability, personal and communication skills, and the importance of these factors. The report then delves into the company's physical and technological resources, including land, machinery, and ICT, highlighting their role in operational management. It explores both internal and external sources of finance available to the company. The report includes an interpretation of trading, profit & loss accounts, and balance sheets, with a comparison of financial data from 2016 and 2017. Furthermore, it illustrates the use of budgets for financial control using break-even analysis. Finally, the report assesses the financial state of Next PLC, emphasizing the importance of cash flow statements in budget planning and achieving company objectives. The report concludes with a discussion on the significance of accounting ratios, cost control, and the challenges faced by the organization due to unmonitored costs. The analysis utilizes various sources and financial data to offer insights into the company's operations and financial performance.

BUSINESS
RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P 1 Describe the recruitment documentation..............................................................................4
P 2 Description of employability,personal and communication skills........................................4
M 2..............................................................................................................................................5
P 3 Overview of the main physical and technological resources................................................5
M 1..............................................................................................................................................6
D 1...............................................................................................................................................6
P 4 Sources of internal and external finance...............................................................................6
P 5 Interpretation of trading and P & L account as well as balance sheet..................................7
P 6 Illustration of use of budgets as means of exercising financial control................................7
P 7 Illustrate the financial state of next plc.................................................................................8
M 3..............................................................................................................................................8
M 4..............................................................................................................................................8
D 2...............................................................................................................................................9
D 3...............................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Resources plays a very eminent role in every business because overall enterprise is
mainly depend upon theses resources only. In fact they act as a very effective tool and techniques
to attain their goals and objectives as soon as possible. This report is about next plc which is a
British multinational company famous for its clothing, household products, footwear and act as a
retail enterprise (Bharadwaj, and et. al., 2013). It also shows the planned budget of the cited
company as well as profit and loss account. Last but not the least business resources is the term
which covers all the natural and human made resources for smooth running of the enterprise.
TASK 1
P 1 Describe the recruitment documentation
Recruitment documentation is the term which shows the appropriate method and
procedure of recruiting any person and individual with the help of various methods of
recruitment. Basically recruitment documentation is a framework of all the task and activities to
execute in a proper manner for selection of best alternatives. In other words its all about
advertising your vacancy which means recruitment department need to prepare a job description,
a person specification and an application form to advertise your vacancy.
Therefore recruitment is the process by which a business is going to hire a right person
for a right job according to their eligibility and talent to fill their vacancy. The firm describes the
actual job and person specification for the particular post and then advertise the vacant position
in an appropriate place (Carroll, 2010). To recruit a business analyst next plc need to prepare a
proper documentation and appropriate method for selection of a deserving candidate by
considering all the facts and figures which are essential while selection process. Therefore it is

based on the proper format in a formal way for impressive presentation which may capture the
attention millions of candidates.
At the end this documentation consist of personal details of a candidates as well as
overall relevant data and information which is required while preparing a recruitment
documentation (Shabana, 2010).
P 2 Description of employability,personal and communication skills
Next plc is a one of the famous multinational organization follows a proper procedure for
recruiting any employee for particular job role. A cited enterprise is going to conduct a selection
process for business analyst. In fact they need to analyse the overall skills before selecting a best
alternatives.
Employability skills is the quality of the employees to perform a particular role by using
their talents and sense of humour. In fact every candidates must know how to work in a effective
manner by creating a friendly relation with each other. Whereas communication skills shows the
way of interacting in a group or expressing themselves. Basically effective interaction is very
helpful in conveying message in between each other with a polite nature (Chaffey, 2010).
Managers or employers with attractive written or verbal communication skills will beneficiary
for their business as well as it creates a mutual understanding in between lower level and higher
authority.
While recruiting the business analyst HR manager must consider all the indispensable
skills which will be going to required while performing the role of analyst. At the end while
appointing a business expert recruiter need to consider all the relevant terms and conditions.
M 2
Employability and personal skills plays a very eminent role in the recruitment and
retention of staff because it helps in identifying the best candidates from various alternatives.
Apart from this these both the skills defines the overall personality and inner quality of the
individual for handling or regulating a particular business (White, 2010).
P 3 Overview of the main physical and technological resources
Some of the indispensable physical and technological resources for next plc are land,
buildings, plant and machinery as well as materials wastage, equipments included ICT etc.
Without these resources a cited organization can't perform their task more effectively because

they act as a very mandatory part. A business can't carry out its day to day activities without
having a system in place which manges physical resources. In fact technological resources is
very helpful in completing all the task in a faster way and receive products faster as well as serve
their customers in a proper manner (De Clercq, 2013). Operational management is one of the
major department in the cited company because overall business profit and loss is depend on
them only. Basically the major role of the operational department is to manufacture innovative
and unique products according to the demand of the customers. Next plc technological resources
covers their intellectual property for example their copyrights, patents and their experience or
personal skills. Apart from this management of these resources have a greater impact on the
company performance and help them to improve their worst condition by executing various
effective developmental programmes.
On the other hand management of human resources is also crucial for cited organization
due to their roles and responsibility towards profit maximization. In fact all the task and activities
are control and regulate by labours (Lim, 2013).
M 1
Management of human, physical and technological resources act as mandatory tool in
improving the performance of next plc because it helps in enhancing the knowledge as well as
talent of their employees. Basically workers improvement automatically develop the overall
performance of the structure of the enterprise.
D 1
Resources is one of the essential part in every business because of their advantages and
positivity towards particular business. In other words managing resources and controlling
budgets cost improve the performance of the next plc conditions because it helps in estimating
the accurate cost (Oh, 2013).
P 4 Sources of internal and external finance
Capital is the backbone for every business because overall business is depend upon the
fund of the organization. Firms can acquire money from various internal and external sources-
Internal sources are :-

 Personal savings :- This is one of the easy way of acquiring capital where owner have
some savings available to use according to their requirement while establishing a
business.
 Retained profit :- This profit is already made that has been set aside to reinvest in the
business.
 Working capital :- This a short term fund that is reserved for a daily expenses for
example stationery, rent, electricity bills and invoice payments.
 Sales of assents:- This capital is acquire by selling any fixed assets for example building
or plant and machinery.
External sources
 Shares :- Limited organization could look to sell additional shares to new and existing
shareholders in exchange of return on their investment.
 Loans :- Loan from banks with fixed and variable interest rate which are usually secured
against the asset being invested in.
 Credit from suppliers :- Most of the invoices have payment terms of 30 days or longer.
All the above sources of finance plays a very eminent role in the next plc.
P 5 Interpretation of trading and P & L account as well as balance sheet
Trading account of the company shows the expenses incurred while manufacturing a
product or various goods with the help of natural and artificial resources. Whereas profit and loss
account covers all the official expenses and profit earned by the company due to selling any
product (Hart, 2011). But balance sheet included liability or assets of the enterprise and express
the actual assets company is having as well as liabilities .
In 2017 a cited organization revenue is 4097 in which all the major expenses are included
instead of profit earned by company with the help of selling the product. Whereas in 2016 plc
revenue of the of the company is 4177. Apart from this in 2016 total current assets of the
enterprises are 1642 whereas in 2017 it is 1661. Current liability of the next plc in 2016 was
1171 whereas in 2017 it is 725 which denotes that condition of the cited enterprise improved as
compare to previous year.
On the other hand next plc wants to remove all the extra expenses which may reduce the
liability by increasing their profit as well as assets. While comparing data of 2016 and 2017 it
proves that a cited company control all the unnecessary expenditure.

P 6 Illustration of use of budgets as means of exercising financial control
Fixed cost = 5600, variable cost per unit = 9 , selling price per unit = 20
Contribution= selling cost – variable cost
20-9 = 11
Break even point = fixed cost/ contribution
5600/11= 509.09
This above information describes the break even point where there is no loss and no
profit is going to occurred.
In the given data of Hendy's Ltd. One of the major problems is faced by them is a
inappropriate usage of capital due to which they are facing the shortage of fund.
To overcome the problem of fund they need to prepare a appropriate budget for proper
estimation of upcoming cost and expenses (Dowell, 2011). After planning the budget and all the
expenditure they can maximize their profit by producing 600 units.
P 7 Illustrate the financial state of next plc
The financial statement is all about the overview of the cash flow statement of a cited
company by considering all the relevant facts and figures. In the cash flow of the next plc
company at the beginning they have 53 whereas at the end of the year they have only 14 which
shows the shortage of fund due to the incurred of various expenses. Basically cash flow
statement describes the overall cash invested in the company for profit maximization by
considering all the internal and external factors (Korunka, and et. al., 2010).
Apart from this financial statement shows the actual rate of return on the investment with
the help of various other small expenses and useful strategies. Cash flow act as a very helpful
tool and techniques while preparing a yearly budget because it covers various other expenses as
well as profit which was earned by the company. On the other hand next plc is very much
worried about their financial statement due to their effective role in a business. Apart from this it
also helps in estimating accurate requirement of budget in achieving their companies objectives
as soon as possible by reducing errors and mistakes. Lastly cash flow statements is very helpful
while planning process (Montgomery, 2011) .
M 3
Accounting ratios act as a very useful tool and techniques while preparing a budget for
the next plc because it helps in identifying the hidden expenses which incurred while establishing

a business. In fact trading account and profit or loss express the factory as well as official
expense.
M 4
It is very indispensable to control a cost because overall business is depend on the fund as
capitals are the backbone of an enterprises. Cost must be controlled to budget due to their
appropriate role in the business for attaining the goal of the enterprise.
D 2
Accounting ratios act as a useful method in monitoring the business of a next plc because
it provides accurate information of comparison in between multiple factors. Mainly ratios helps
in identifying the best alternatives from different methods (Osterwalder, 2010).
D 3
Various problems are faced by the organization due to the unmonitored costs and budgets
for example-
 Wastage due to absence of appropriate data and information.
 Lack of capital.
 In accurate results.
 Emergence of mistakes and errors.
 Available of high risk.
 Chances of loss.
Unmonitored costs and budgets creates many more problems and issues which may harm
the existing business and influence overall strategy of the enterprise (Pigneur, 2010).
CONCLUSION
In this report importance of business resources are explained in brief with the help of
various factors as well as techniques. In fact it shows the appropriate use of recruitment
documentation for hiring right person for a right job by describing their employability skills as
well as personable and communication talents. On the other it also shows the comparison in
between balance sheet of 2016 and 2017 for getting aware about the expenses and profit earned
by the organization. Apart from this,it included the various sources of finances and the effective
use of financial statement while planning process.

REFERENCES
Books and Journals
Bharadwaj, A and et. al., 2013. Digital business strategy: toward a next generation of insights.
Carroll, A.B and Shabana, K.M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice. International journal of management
reviews. 12(1). pp.85-105.
Chaffey, D and White, G., 2010. Business information management: improving performance
using information systems. Pearson Education.
De Clercq, D., Lim, D.S and Oh, C.H., 2013. Individual‐level resources and new business
activity: The contingent role of institutional context. Entrepreneurship Theory and
Practice. 37(2). pp.303-330.
Hart, S.L and Dowell, G., 2011. Invited editorial: A natural-resource-based view of the firm
fifteen years after. Journal of management. 37(5). pp.1464-1479.
Korunka, C and et. al., 2010. Personal characteristics, resources, and environment as predictors
of business survival. Journal of Occupational and Organizational Psychology, 83(4),
pp.1025-1051.
Montgomery, C.A. ed., 2011. Resource-based and evolutionary theories of the firm: towards a
synthesis. Springer Science & Business Media.
Osterwalder, A and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Wu, L.Y., 2010. Applicability of the resource-based and dynamic-capability views under
environmental volatility. Journal of Business Research. 63(1). pp.27-31.
Zhong, M.A and Yu, L.I.U., 2010. The Effects of Government Intervention and Corporate
Resources on Corporate Diversification [J]. China Soft Science, 1, p.014.
Zikmund, W.G and et. al., 2013. Business research methods. Cengage Learning.