Business Resources Report: Crawford Healthcare - Resource Management

This report provides a comprehensive analysis of the business resources of Crawford Healthcare, a UK-based wound care and dermatology product supplier. The report begins with an introduction to the business, followed by an examination of various employment types, the recruitment process, and the contents of employment contracts. It then delves into job descriptions, required skills, and their importance to the organization. The report further explores physical and technological resources, their contributions to the company's success, and the management of these resources. It also covers internal and external sources of finance, including their advantages and disadvantages, and explains how these resources may be appropriate for different types of resources within the organization. Finally, the report analyzes trading, profit & loss accounts, and balance sheets, including a discussion of ratio analysis and the meaning and purpose of budgets, concluding with a summary of the key findings and recommendations for resource management.

BUSINESS RESOURCES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
TASK 1.1.........................................................................................................................................4
Introduction of business..............................................................................................................4
Types of employment within the organization............................................................................4
Recruitment process....................................................................................................................5
Employment contracts.................................................................................................................5
TASK 1.2 ........................................................................................................................................6
Job description............................................................................................................................6
Explanation of skills required in candidates...............................................................................7
Importance of these skills for the organisation...........................................................................8
TASK 1.3.........................................................................................................................................8
Description of physical resources and their contribution to organisation's success...................8
Technological resources and their importance in company's success.........................................9
Management of human, physical and technological resources...................................................9
TASK 1.4 ........................................................................................................................................9
Internal and External sources of finance and their advantages and disadvantages.....................9
TASK 1.4 ......................................................................................................................................10
Internal and External sources of finance ..................................................................................10
Advantages and Disadvantages of Internal and External Sources...........................................10
Explanation of type of resource each source may be appropriate.............................................10
TASK 1.5.......................................................................................................................................12
An explanation of trading and P&L account ............................................................................12
An explanation of balance sheet...............................................................................................12
Analysis of trading and Profit & loss account..........................................................................14
Strength and weaknesses of Ratio analysis...............................................................................15
TASK 1.6.......................................................................................................................................16
Meaning and purpose of budget................................................................................................16
TASK 1.7.......................................................................................................................................17
CONCLUSION..............................................................................................................................17

REFERENCES..............................................................................................................................18

INTRODUCTION
A business can be defined as a commercial activity of buying and selling of goods and
services for the purpose of earning profits. For undertaking such commercial activity, a business
concern requires various resources such as man, material, machines and money (Löfsten, 2016).
The present report is going to discuss how the resources within the Crawford Healthcare,
supplier of wound care and dermatology based in UK are managed, the purpose of technological
and physical resources in the firm, what are the different sources of finances. Lastly, the report
will cover the interpretation of financial statements of the organization.
PART 1
TASK 1.1
Introduction of business
Crawford Healthcare Limited is a manufacturer and seller of advanced skin care and
wound care products. The company was founded in 1996 and is headquartered in Knutsford, UK.
It is a private international company and is fourth largest wound care business organization of
United Kingdom. The firm offers sport mists, lip balms, anti-ageing creams, kids products, scar
gels, etc.
Types of employment within the organization
The company has several types of employment that are discussed below:
Full-time employment : In this practise, the company hires people for full working hours.
In full-time job, employees are required to work for the minimum number of working hours
described the Crawford Healthcare in its employment contract (Cascio, 2015).
Part-time employment : In this type of employment contract, company hires a person on
the part-time basis. An individual is required to work less than the minimum limit of working
hours set by the company.
Casual employment : In this type, the company do not commit the employment of a
person for long period. The person can leave the job without giving notice to employer unless
stated in written agreement and such individuals are hired mainly for meeting fluctuating
demand of business.
Outworkers: Crawford Healthcare hires outworkers or people who works from their
home or from a place other than office.

Recruitment process
Recruitment is the process of searching, short-listing, attracting and hiring suitable
candidates for the various job roles in the Crawford Healthcare. It also includes searching and
appointing people for unpaid job roles such as apprenticeships, trainings, internships.
The purpose of recruitment is to provide enough workforce to the organisation. It lays its
emphasis on putting right people at right job (Inman, 2016). Recruitment process starts by
analysing the job requirements in the company, defining the job roles, preparing job description
statements for different job vacancy and then searching the potential candidates that could meet
the specifications and requirements of a particular job such as receptionist, accountant, marketing
manager etc.
Contents of Job descriptions :
 Job summary
 Qualification
 Job location
 Experience
 Personal skills
 Management skills
 General duties and responsibilities related to specific job role
 Hours, shifts, salary, reporting department, grade, position/designation.
 Special knowledge related to equipments, machines and tools.
Employment contracts
Employment contracts are the written agreements that specifies the rights and
responsibilities of both the employer and employee. Such contract is legally binding on both the
parties and can be brought to court in case of any dispute arises in the future (Burger and Luke,
2017).
Contents of employment contracts :
 Parties to the contract
 Definition of job position
 Date of commencement of employment
 Type of employment such as fixed, part-time etc.
 Probation clause and its duration

 Length/ Duration of agreement
 Place of work
 Duties
 Salary package, employee benefits, bifurcation of salary.
 Annual holidays and leave pay structure
 Working hours
 Notice period
 Termination of employment - conditions & terms
TASK 1.2
Job description
Job description can be defined as a document in which general tasks, responsibilities and
duties related to a specific post in Crawford Healthcare are mentioned.
A job description for the job role of Marketing executive
Job Description
Crawford Healthcare Limited
Job title : Marketing Executive
Job location : Knutsford office of Crawford Healthcare
Department : Marketing
Reporting to : Marketing manager
Job Overview: A marketing executive closely with and under the supervision of Marketing
manager for assisting the manager in implementing strategic and tactical marketing plan for
achieving organizational goals.
Qualification:
 Must have a post graduate degree with marketing specialization.
Experience :
 Must have 2 years of experience in related field.
Salary package:
 (£)8000 p.a.
Key responsibilities/ duties:
 Carryout day-to-day activities of marketing department

 develops, recommends and execute long term strategies of marketing plan of company
 Creating a cordial relationship with colleagues and seniors
 Reporting of work done to marketing manager at the end of each day.
Personal skills :
 Creative skills
 strong interpersonal skills
 Leadership qualities
 Adaptability
Employability skills:
 Team work
 Excellent communication skills
 Problem solving skills
Explanation of skills required in candidates
Skills and capabilities are required for performing a particular task of specific job in
Crawford Healthcare. Every employer looks for employability and personal skill in an individual
besides its academic knowledge and experience.
Employability skills are those capabilities of a person that helps it in working efficiently
at its workplace. For example, team work is an essential requirement for marketing executive
because organisation has divided the work in separate departments where teams are created.
Working with teams require understanding skills, coordination, patience etc., for performing
efficiently (Osotimehin, 2019). Likewise, strong communication skills are required for
performing the tasks with greater effectiveness.
Personal skills are person's personality trait that helps it in performing its duties and
responsibilities better than the others. For example, adaptability skills of a person where it very
smoothly adjust to the demanding situations.
Importance of these skills for the organisation
Crawford Healthcare greatly depends upon the type of workforce it hires. The more
talented and skilled, more they can contribute towards the success of the organisation. Like
employees have greater adaptability skills are more responsive to changing environment of
business in a favourable way. This helps the organisation in bringing necessary changes in

working environment such as change in organisation structure, technology, working shifts etc.
without much resistance from employees. Another example is problem solving skills of
personnel in company would lead to rationale decision making that will eventually lead to
company's success (Akter and et.al., 2016).
An individual possessing such skills are on top of the list of recruiters and organization
desires of having and retaining such workforce as human resource is the centre around which
other resources are placed.
TASK 1.3
Description of physical resources and their contribution to organisation's success
Physical resources can be termed as all the tangible resources/ assets which are owned
and used by Crawford Healthcare. Examples are :
 Land, corporate buildings
 Machineries, equipments, robotics in manufacturing systems
 Hardware, IT software, IT equipments
 Point of sale systems
 Company's vehicles
 Raw materials/ Inventory
These physical resources are important because it helps the company in conducting its
routine operational activities. For example, corporate building is necessary where all the
resources are managed together, provides a proper place to conduct business. Raw materials are
its physical resources without which company cannot undertake production process of wound
care products (Le Breton-Miller and Miller, 2018). Equipments and machineries enhances the
productivity of the company. Thus, it can be said that these resources provides the infrastructure
to the company for conducting its business.
Technological resources and their importance in company's success
Technological resources of Crawford Healthcare are the intangible resources which helps
the company in operating the business activities with more efficiency and effectiveness. Example
are :
 Intellectual properties
 Skills and experience of its management, employees
 Patents

 Technical know-hows
 Software license
These resources are important in business because more technological advancement in
the organisation increase the productivity and profitability as these technological devises tends to
decrease costs of production. Company possessing exclusive rights of doing something helps in
developing a competitive edge over its rivals because competitors can not imitate those methods
of production, products, etc.
Management of human, physical and technological resources
Management of the different resources is the process of optimum allocation of resources
that can best meet the objectives and goals of the Crawford Healthcare. Planning is done where a
systematic approach is applied for aligning different resources like machineries & equipments,
employees and technology wherever possible. Such alliance of resources ensures greater
productivity of the organisation (Pettersen and et.al., 2015). For example, when technology is
combined with company's routine function such as maintenance of customer relationships by the
way of CRM system, it can enhance the data processing related to customers, using of AI in
responding quickly to customer's query, using of integrated management information system
(MIS) can help mangers in better decision makings.
Therefore, proper integration of these resources within the business organisation can help
it in improving its performance.
TASK 1.4
Internal and External sources of finance and their advantages and disadvantages
(Covered in leaflet)
BUSINESS RESOURCES
TASK 1.4

Internal and External sources
of finance
Advantages and
Disadvantages of
Internal and External
Sources
Explanation of type of
resource each source
may be appropriate
Company requires funds for
carrying out its regular
activities and for its expansion
plans for which it resorts to
different source from where
necessary finance could be
arrange. There are different
sources of finance that are
given below:
Internal sources:
These are those sources
in which funds are arranged
internally by selling of
company's products and making
profits. Example are :
Retained Earnings:
Profits are ploughed back in
company and not distributed to
INTERNAL SOURCES
Retained Earnings:
Advantages:
 Funds are readily
available as company
need not to seek help
from outsiders.
 The cost of capital is
least as the funds are
raised internally which
does not involve any
interests.
 No dilution of control
when this source is
used.
Disadvantages :
 It leads to loss of
revenue for company's
owners.
 Opportunity cost of
utilising retained
earning is very high.
Sale of fixed assets
Advantages:
 No cost of raising funds
which helps in cutting
the operational cost of
Technological resources : Sale
of unproductive fixed assets
source could be used for
replacing more advance
machineries.

owners for expansion and
growth reasons.
Sale of fixed assets :
Crawford can raise capital by
selling its unproductive or least
productive fixed assets and the
proceedings could be used in
more productive projects.
External sources :
These are the sources in
which funds are raised
externally. Example are:
Loan from banks :
Crawford can resort to this
source for financing its
operations. Loan can be taken
in lieu of mortgage from the
commercial banks or other
financial institution.
Personal investments
by owners : Since Crawford is
a private company, it cannot
business.
 Selling of unproductive
asset can lead to
reduction in the cost of
operations of Crawford.
Disadvantages :
 Assets are sold at very
less price as compared
to its procurement cost.
 Decrease in financial
position when reflected
in balance sheet
EXTERNAL SOURCES
Loan from banks :
Advantages:
 Funds are easily
available which helps in
triggering the projects of
company.
 Tax deduction in respect
of interest paid.
Disadvantages :
 Creates a fixed charge
on the asset.
 Company have to pay
interest and principal
whether the profits has
been made or not.
Personal investments by
owners
Advantages: Retaining of full
Human resource: This can be
finance by company's regular
profits out of retained earnings
for filling the vacancies with
the most talented people.
Physical resources: Loan from
commercial banks can used for
financing land, equipments,
vehicles for business purpose.

raise funds through equity. It
can meet is needs through
personal investment of owners
ownership and no dilution of
control.
Disadvantages : High risk of
loosing all the saved money due
to business failure.
TASK 1.5
An explanation of trading and P&L account
Trading account shows the direct manufacturing expenses such as wages, materials,
opening stock and net sales of company along with closing stock for finding out gross profit.
P&L account consist of company's all operating expenses such as salaries of employees,
commission, interest, advertisement and selling expenses and all operating incomes for finding
out the net profit for the year ending (Ward, 2016).
An explanation of balance sheet
It is a statement that shows all the liabilities and asset of a company on a particular date.
This statement shows the financial position of a company in terms of its liquidity and investor
can analyse that whether company have enough resources of paying its debt.
Income statement of Crawford Healthcare for the year ending on 31st march 2017

Illustration 1: Income statement
(Source: Annual Report & Accounts, 2017)

Balance sheet as on 31st march 2017
Illustration 2: Balance sheet
(Source: Annual Report & Accounts, 2017)
Analysis of trading and Profit & loss account
Ratio analysis
Gross profit ratio
Year 2016 2017
Gross profit 14016 15594
sales 21540 25156

GP ratio (gross profit/sales) 65.07% 61.99%
Net profit ratio
Year 2016 2017
Net profit (loss) 1542 2581
sales 21540 25156
NP ratio ( net profit/sales) -7.16% -10.26%
Current ratio
Year 2016 2017
Current assets 10386 9084
Current liabilities 9519 15914
Current ratio( current
assets/current liabilities) 1.09 0.57
Debt equity ratio
Year 2016 2017
Long term Debt 2751 2556
Equity 4249 6754
Debt equity ratio (debt/equity) 1 1
Interpretation : From the above analysis, company's liquidity, solvency and financial position
could be analysed. Gross profit in the year 2007 has increased as compared to previous to
65.07%. Company made loss in both the year and from analysis it can be seen that it has made
more loss in year 2017 than 2016. Current ratio in 2016 was ideal when it was 1.09 but decreased
in 2017 to 0.57. DEbt equity ratio has been constant in both the year.
Besides company gross profit, its performance has decreased in 2017 for which it has to
control its operational expenses as these increased significantly in 2017 and which is the reason
made loss.
Strength and weaknesses of Ratio analysis
Strengths Weaknesses

 Helps in comparison of performance.
 Assist in decision making.
 Helps in forecasting
 Time consuming
 Based on historical data
 Does not provide reliable results
TASK 1.6
Meaning and purpose of budget
A budget is a short term plan for guiding how money company has to be spend for the
stipulated period. It is basically a spending/expenditure plan of Crawford Healthcare. The
purpose of budgeting is to plan and forecast the inflow and outflow of cash in organisation and
help in decision making.
Contents of a cash budget - An example of company A
Illustration 3: Cash budget

(Source : Cash Budget, 2013)
Budget as financial control tool
Budgets help in controlling cost of operations of company as actual expenses are
compared against the budgeted amount and deviation is found out. The reasons for such
deviations are identified and accordingly corrective actions are taken. Such practise help in
controlling the expenses of company for better profitability (Aversa, Haefliger and Reza, 2017).
For example, marketing department prepares budget according to which it conducts its
activities.
Expenses (£)

Selling &distribution 500
Advertisement 600
Mailing, printing 150
salaries 800
Total 2050
Costs needs to be controlled because as seen in income statement, company more
operational expenses as compared to its revenues which resulted in loss of (£)2581 million. It
needs to specifically monitors its administrative cost for reviving its profitability. Thus, making
expenses as per the budgets is required for maintaining profitability and stability.
TASK 1.7
(Covered in PPT)
CONCLUSION
From the above report, it can be summarised that company have to focus its energy on
managing its business resources optimally for improving its financial performance. Crawford has
to cut down its administrative costs for brining itself out from loss making phase. It is making
good increasing gross profit but its expenses are not standardised and this over-expenditure is
creating problems for the company. It has to use budgetary control methods such as zero
budgeting for beneficent planing and forecasting its cash inflow and outflow that would help it in
enhancing its profitability in the future.
REFERENCES
Books and Journals:

Akter, S and et.al., 2016. How to improve firm performance using big data analytics capability
and business strategy alignment?. International Journal of Production Economics, 182,
pp.113-131.
Aversa, P., Haefliger, S. and Reza, D.G., 2017. Building a winning business model
portfolio. MIT Sloan Management Review, 58(4), pp.49-54.
Burger, S.P. and Luke, M., 2017. Business models for distributed energy resources: A review and
empirical analysis. Energy Policy, 109, pp.230-248.
Cascio, W.F., 2015. Managing human resources. McGraw-Hill.
Inman, K., 2016. Women's resources in business start-up: A study of black and white women
entrepreneurs. Routledge.
Le Breton-Miller, I. and Miller, D., 2018. Beyond the firm: Business families as entrepreneurs.
Löfsten, H., 2016. Business and innovation resources: Determinants for the survival of new
technology-based firms. Management Decision, 54(1), pp.88-106.
Osotimehin, S., 2019. Aggregate productivity and the allocation of resources over the business
cycle. Review of Economic Dynamics.
Pettersen, I.B and et.al., 2015. Business incubation and the network resources of start-
ups. Journal of Innovation and Entrepreneurship, 5(1), p.7.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Online
Annual Report & Accounts. 2017. [Online]. Available through
<https://www.crawfordhealthcare.com/images/docs/CHHL_FY17_FINAL_ANNUAL_RE
PORT.pdf>
Cash Budget. 2013.[Online]. Available through
<https://accountingexplained.com/managerial/master-budget/cash-budget>