Business Resources Report: Recruitment, Finance, Accounts Analysis

This report provides a detailed analysis of business resources, focusing on recruitment documentation, employability, personal, and communication skills. It describes physical and technological resources used by businesses, using Tesco as a case study. The report also examines internal and external sources of finance, including personal savings, retained profits, shares, loans, and overdrafts. Furthermore, it interprets the contents of a trading and profit and loss account and a balance sheet, providing insights into financial performance and position. The report includes interpretations of financial statements and illustrates the use of budgets for financial control, offering a comprehensive overview of essential business management concepts.

Business Resources

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1- Describe the recruitment documentation used in a selected organisation............................1
P2 Describe the main employability, personal and communication skills required...................2
TASK 2............................................................................................................................................2
P3 Describe the main physical and technological resources required in the operation .............2
TASK 3............................................................................................................................................3
P4 Describe sources of internal and external finance for a selected business.............................3
P5 Interpret the contents of a trading and profit and loss account and balance sheet................4
P6 Illustrate the use of budgets as a means of exercising financial control ...............................8
P7 Illustrate the financial state of a given business.....................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
In this current time period, for achieving organisational goals and objectives in effective
manner, business firms are using smart techniques and methods in entire business life. Fro
getting success in competitive market place, should properly utilise business resources in
appropriate manner (Chaffey and White, 2010). This research project will be defining about, an
effective recruitment documentation which will used in an particular business firm. In the
addition of this, employability, personal and communication skills and capabilities will be
describing. Moreover, will be describe internal and external financial sources as well as interpret
the content of profit and loss account and balance sheet of an particular organisation.
TASK 1
P1- Describe the recruitment documentation used in a selected organisation
Job Advertisement – It is a notice that jobs put out for the public to see to inform them
of a job vacancy they have open. It includes the job title, requirements, what makes a suitable
candidate and responsibilities. The purpose of this is to promote the job vacancy they have open
and to inform people of what they need to have to be a suitable candidate and make sure people
who apply do actually fill the needs for the jobs.
Job Description – A job description explains what skills employees need to have to get
a certain job (Montgomery, 2011). It explains limitations and skills which are needed for the job
and the duties and responsibilities that the employee will have if they get the job. The purpose of
this is to inform the candidate of what they will be doing if they get the job and what they need
to do the job.
Person Specification – This is an expansion of the job description. This outlines the
training requirements, grades and personal qualifications of the individual to actually be
considered for the job. This is all about skills and the purpose of this is to outline clearly to
candidates what they must have to get the job. This makes it clearer for candidates to see what
they need and want in a person to do job.
Application Form – An application form is a form which companies give a candidate to
fill in. They do this so they can get the information they want and the candidate is able to expand
more after the CV they have given. The purpose of this is so the company can ask the candidate
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what they want and find out information they need and it also helps trigger some answers that the
company want so they can look into the candidate and see if they are actually suitable for the job.
P2 Describe the main employability, personal and communication skills required
Employability skills: Employability skills can be defined as a skills that a person needs
to have in order to get a job and/or be effective in the job role he or she has. Such skills allow the
employee or person to have a mutual and friendly relationship with colleagues or the manager
thus if there are any problems that arise they will be resolved efficiently. There are many
examples of employability skills that employees or people applying for jobs should possess
which include; qualification and experience that are directly linked to the job that is being
applied for (Bae, Rowley and Sohn, 2012).
Personal skills: Personal skills can be defined as a skills that a person may possess but
doesn’t necessarily need when applying for a specific job role. There are many examples of such
skills which would benefit the business including; speaking different languages, trustworthy and
having a sense a humour. It is good if employees or applicants possess such sills when applying
for a job as it will make them more likely to get the job as it shows the employer other skills that
the employee/applicant have that can help the business; these skills are useful for a lot of
different jobs.
Communication skills: Communication skills can be defined as a skills that help a
person convey information to another person efficiently and with ease. Managers or employees
with good written or verbal communication skills will benefit the business; this is because they
will be able to talk and understand each other properly
TASK 2
P3 Describe the main physical and technological resources required in the operation
Illustration 1: Business Resources, 2017
(Sources- Business Resources, 2017)
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Physical resources: At Tesco the building they use is essential towards the day to day
running of the business. In order for the business to provide products and services to its
customers they will need different in-house resources to facilitate the smooth running of the
business. Another physical resource that is required for the operation of the business is insurance,
some insurances are required by law for businesses to have this includes employers’ liability
insurance which provides insurance in case anything happens to employees as a result of the
business, Tesco also pays for public liability insurance that covers any injuries to the public that
are caused by negligence.
Technological resources: Tesco uses software that is loaded on to all their technology.
The software is the programme that tells the technological items, like tills, what to do, it is
loaded with all the barcodes of items the store sells which means employees can quickly and
easily scan items and the tills will add it up with the least human labour possible (De Clercq, Lim
and Oh, 2013).
TASK 3
P4 Describe sources of internal and external finance for a selected business.
Internal Sources
Personal savings: This is most often an option for small businesses where the owner has
some savings available to use as they wish.
Retained profit: This is profit already made that has been set aside to reinvest in the
business. It could be used for new machinery, marketing and advertising, vehicles or a new IT
system.
External Sources
Shares: Limited companies could look to sell additional shares, to new or existing
shareholders, in exchange for a return on their investment.
Loans: There are debenture loans, with fixed or variable interest, which are usually
secured against the asset being invested in, so the loan company will have a legal shared interest
in the investment (Zott and Amit, 2010).
Overdraft: A bank overdraft may be a good source of short-term finance to help a
business flatten seasonal dips in cash-flow, which would not justify or need a long-term solution.
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The advantage here is that interest is calculated daily and an overdraft is therefore cheaper than a
loan.
P5 Interpret the contents of a trading and profit and loss account and balance sheet
PROFIT AND LOSS STATEMENT
particular 2014 2015 2016
Revenue 41055 45327 51243
Cost of Revenue 33310 36113 40256
Gross Operating
Profit 7745 9214 10987
Operating expenses
Research and
development 1721 2075 2370
Sales, general and
administrative 4415 4819 5335
Staff cost - - -
Depreciation and
amortization - - -
Other Operating
Expenses 504 199 -1
Total Operating
Expenses 6640 7093 7704
Operating income
before interest and
taxes 1105 2121 3283
Non-operating
income 1029 1150 1315
Income before
income taxes 2134 3271 4598
Provision for
income taxes 136 311 1055
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Net income from
continuing
operations 1998 2960 3543
Net Income 1890 2823 3419
Net income
available for
common
shareholders 1890 2823 341
Earnings per share
Basic 6.92 10.35 12.57
Diluted 6.89 10.29 12.46
Interpretation of P&L Account
As per the result of profit and loss account of HENDY'S Ltd. There were shows last three
years statements in tabular formate, which is categorised into two major parts one is operating
expenses and another one is earning per share of cited company (Korunka and et.al., 2010). Last
three Revenue of the enterprise is regularly increase such as 2014- 41055, 2015- 45327 and
2016- 51243. along with this gross profit is also increased in last three years 2014- 7745, 2015-
9214 and 2016- 10987. P&L accounts helps to shows actual and reliable financial position of
company as per that will easy to analyse.
BALNACE SHEET
2014 2015 2016
Assets
Current Assets
Cash, cash equivalents, and short-term investments
Total cash,
cash
equivalents,
and short-
14027 15893 15761
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term
investments
Accounts
receivable - - -
Inventory 3391 4128 5821
Other
Current
Assets 29620 32997 39928
Total
current
assets 47038 53018 61510
Non Current Assets
Total non-
current
assets 34513 37587 40593
Total Assets 81551 90605 102103
Liabilities and stockholders' equity
Liabilities
Current Liabilities
Accounts
Payable 7094 8295 9533
Taxes
Payable 162 219 321
Current
Debt 28501 34412 39796
Other
current
liabilities 9091 9363 12103
Total 44848 52289 61753
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current
liabilities
Non-current liabilities
Deferred
taxes
liabilities 141 122 124
Long Term
Debt 7255 5645 3105
Other long-
term
liabilities 4831 4557 6378
Total non-
current
liabilities 12227 10324 9607
Total
Liabilities 57075 62613 71360
Stockholders' equity
Common
stock - - -
Additional
paid-in
capital 3785 3785 3785
Other
reserves 20381 21653 23643
Retained
earnings 1890 2823 3419
Minority 422 482 152
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Interests
Total
stockholder
s' equity 24476 27992 30743
Total
liabilities
and
stockholder
s' equity 81551 90605 102103
Interpretation of Balance sheet
Balance sheet of HEDNY'S Ltd., is assist to show actual current assets and liability. As
per that easy to determine how much company liable to pay as well as how much having their
own equity fund. Balance sheet mainly divided into two parts such as current assets and current
liability. Last three years of current assets is 2014- 47038, 2015- 53018 and 2016 – 61510. Along
with this current liability is 2014- 44848, 2015- 52289 and 2016- 61753. as compare with current
assets of this company's result firm is more liable to pay (Ward, 2016).
P6 Illustrate the use of budgets as a means of exercising financial control
An allocated budget it the opposite to a zero-based budget, an allocated budget is what
cited company uses, it is figured out by deciding upon the amount of money that is the budget
and then using analyst figures of forecasted costs, revenues and resources (Grönroos, 2011). A
budget is an estimate of the costs, revenues and resources that are going to be needed in the
future over a set period of time. Hendy's uses an allocated budget to:
 Get all the facts the business needs to ensure that the money they have is going to the
right place to ensure that the company grows as quickly and efficiently as possible
 Limit expenditures that are unnecessary
 Create a “financial roadmap”
Financial control is exercised in planning, performance, evaluation and coordination,
these are points that are demonstrated when creating a budget:
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 Planning – Demonstrated due to the fact that the whole point of the budget is planning for
the future using the break-even chart to show at which point the business is no longer
making a loss
 Performance – A budget takes into account how well cited company has performed
previously to forecast how well Hendy's will do in the future (Huang, Lai and Lo, 2012).
 Evaluation – The analyst consensus is figured out by using previous figures that are
evaluated by looking at the difference Hendy's is doing now from the time the figures.
P7 Illustrate the financial state of a given business
Financial statement of HENDY'S Ltd
Margins % of sales 2015 2016 2017
Revenue 100 100 100
Gross margin 33.59 34.78 33.84
Operating margin 20.3 20.76 20.2
EBT margin 19.87 20.02 19.29
Profitability 2015 2016 2017
Net margin% 15.87 15.96 15.51
Assets turnover 1.8 1.81 1.73
Return on assets% 28.68 28.91 26.83
Return on Equity% 208.75 210.41 154.52
Return on invested
capital%
58.47 56.89 48.78
Interest Coverage 26.97 27.21 21.9
Interpretation
HENDY'S Ltd of total revenue is 2017 is £100, in which gross margin of the company
is 33.84 of 2017 and EBT margin is 19.29. on the other hand, net margin is 15.51 of 2017 in
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percentage, return on assets is 26.83 and return of equity is 154.52 in percentage. This financial
statement help to define margin of sales in % and profitability of the company in the financial
term.
CONCLUSION
From the above mentioned this research project it has been concluded that, recruitment
documentation which is used by cited organisation. Also it has been explained about
employability, personal and communication skills which required in a employee of business
firm. Therefore, physical and technological resources has been described in appropriate manner
which helped for completed task of an enterprise. In the addition of this, profit and loss account
and balance sheet of Hendy's Ltd. has been represented.
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REFERENCES
Books and Journals
Bae, J., Rowley, C. and Sohn, T.W. Eds., 2012. Managing Korean business: Organization,
culture, human resources and change. Routledge.
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.
Grönroos, C., 2011. A service perspective on business relationships: The value creation,
interaction and marketing interface. Industrial marketing management. 40(2). pp.240-
247.
Huang, H. C., Lai, M. C. and Lo, K. W., 2012. Do founders' own resources matter? The
influence of business networks on start-up innovation and performance. Technovation.
32(5). pp.316-327.
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.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Zott, C. and Amit, R., 2010. Business model design: an activity system perspective. Long range
planning. 43(2). pp.216-226.
Online
Small Business Resources, 2016. [Online]. Available through:
<http://www.forsyth.cc/library/small_business.aspx>. [Accessed on 17th August 2017]
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