FY021 Business Studies: HR and Financial Management Strategies Report

This report provides an overview of HR and financial management strategies within a business context, focusing on The Body Shop as a case study. It examines HR strategies such as recruitment, training, and rewards, alongside financial management techniques like financial forecasting, sales estimation, debt management, and sensitivity analysis. A SWOT analysis is conducted to assess the strengths, weaknesses, opportunities, and threats related to HR and financial practices within the company. The report concludes by summarizing the key insights gained from the analysis, highlighting the importance of strategic HRM and financial planning for business success. Desklib provides access to similar solved assignments and resources for students.

Introduction to
business studies

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASKS.............................................................................................................................................2
1. Subheading..............................................................................................................................2
2.SWOT .....................................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
1

INTRODUCTION
Business refers to the activities which are performed to make, buy or sell the produicts or
services in order to bring the profits. The report is going to evaluate the strengths and
weaknesses of the HR and financial management strategies of the chosen company that is The
Body Shop. It has a wide range of products of personal care products, health, skincare, make-up,
aromatherapy, bath and body products which attracts the customers due to its new innovative
techniques to create such a ambience for the audience. It works globally by having stores all over
the world and it also provides the online way to deliver the products at home. The products
which are sold at The Body Shop are made from the natural ingredients for all skin types. It
further elaborates the human resource strategies with recruitment strategy, training and
development reward. Moreover, it includes the financial management strategies by reviewing the
Profit & Loss and Balance sheet of the chosen company (Teoli, Sanvictores and An, 2019).
TASKS
1. Subheading
Human resource strategies
HR strategies refers to the concept for which better understandings are being made in respect to
managing the human resource of the business firm. Under this strategy, effective terms are being
established in the business firm for which productivity of the corporate firm can be ensured. In
addition to the concept, it can be said that a better basis of working in a corporate firm can be
established through taking systematic approaches while dealing with the human resource of the
business firm (Block, Hirt, and Danielsen , 2018).
It context of chosen company i.e., The Body Shop, managers of the firm take key
considerations to such HR strategies which guides definite standards of working in competitive
marketplace. Under the program several approaches to recruitment and operational working in
the business firm are being proceeded. This facilitates effective workings in the business firm
and optimal use of business resources and thus enhancing firm’s capabilities to promote better
workings in complex business situations. In addition to this, training and development platforms
are also provided to staff working in the business firm for which professionalism in the
operational firm can be established. Under this work in being done in standard manner with
effective use of business resources.
2

Recruitment strategy
Recruitment strategy refers to the strategies which are the roadmap for the company in order to
attract the deserving candidates for the overall success of the company. s
The body shop follows the Open hiring strategies on the first come and first serve basis
irrespective of their backgrounds and cultures.
Reward
The company provides the different services for its employees such as Dental insurance, health
insurance, life insurance, mental health support, health and wellness benefits with flexiblw
working hours (Teiwes and et.al., 2021).
Financial management strategies
Financial management strategies refer to techniques for which better arrangements in the
business firm can be formulated in regards to the management of finance as a resource. Through
such a strategy effective terms of business operations can be performed for which effective
business operations can be performed in respect to the complex business environment. Below are
the several financial strategies that used by the mentioned company in order to gain the
competitive advantage in the performing market.
financial forecasting- The financial forecasting is the practice in which company esteeming
their business performance. In such practices several attributes were included such as income
statement. Hence, by such performing such criteria in the business operations of respective firm
can form the effective financial forecasting. Thorough the use of financial models company can
assume the numbers that should be needed in order to perform the efficient functions in the
market. Hence the mangers of body shop can adopt such adaptive strategy in their functions to
perform effectively and efficiently in the targeting market.
estimation of sales level- The estimation of sales is the another key part that forecast he
futuristic sales of the company products in the market. Through such dedicated strategy company
can gain the assumption of futuristic unit of sales. As through such functions company can
deploy or create the product according to the future demand in advance. To perform such activity
various practices is needed such as researching of the market size as well as past year sales
number. Hence, the manger of respective firm can perform such functions in their operations in
order to stocked the demanded product in advance.
3

company’s debt- The debt is the liability that incurs in running the business in the operating
market. Through the analysis of debt ratio company gain the insights of actual position of the
company as well as provide the exact information regard to financial strength of the company
position in the market. Hence the financial manager of body-shop can adopt such function in
their financial practice in order to get the company financial position. The debt ratio includes the
capital leases, pension liability as well as deferred compensation. All these gives the actual
scenario of mentioned firm.
sensitive analysis- The sensitive analysis defines the different value of variables affect the
particular variable. This mentioned analysis plays a major role in forecasting through the use of
previous historian data. The manager of given firm can use such analysis in order to predict the
fluctuation of their share price in the market. It also determine the outcome of sny decision that
influenced due certain variables. By such deep analysis the manger of mentioned company can
forecast their strategies before their implication in the market.
From the interpretation of financial statements in Appendix (A.1 and A.2), it can be said
that, revenue of given company i.e., The Body Shop had shown a decent increase since FY- 2011
until FY- 2017 and indicates total revenue growth of 6%. It can be said that, company adopted
effective financial management strategies through which key increase in gross profit for the
business firm showed good increment. Techniques such as, prospects of financial forecasting,
estimation of sales level, company’s debt and sensitive analysis are the key strategies that guide
the better working of the operational firm and protects productive workings under uncertain and
complex business market. furthermore, by performing effective financial forecasting better
operational decisions in the business firm were being undertaken. Lastly, through interpretation
of balance sheet statement of the company, it can be said that respective company has maintained
decent current ratio. However, there is some decreases in total assets for the firm but still deemed
to be well above the ideal ratio.
2.SWOT
SWOT Analysis of HR strategies and financial management at The Body Shop
Strengths
 It has a wide range of products of
personal care products, health, skincare,
make-up, aromatherapy, bath and body
Weaknesses
 High prices can be the weakness for
the company as the competitors are
providing the products at low cost as
4

products which attracts the customers
due to its new innovative techniques.
 It works globally by having stores all
over the world (Titman and Keown,
2018).
 It also provides the online way to
deliver the products at home.
 The products which are sold at The
Body Shop are made from the natural
ingredients for all skin types
compared to The Body Shop.
 The stores are available at the crowded
areas which can be exhausting for the
customers.
 The brand is doing good in some
countries in reference to the supply
chain whereas it is required to be
improved more in the others.
Opportunities
 People are getting aware about the
harsh chemicals which are being used
in the products so. Customers can
switch over the chosen company
(Buckle and Thompson, 2020).
Threat
 There are many brands in the market
which are competition for the chosen
company in reference of pricing and
supply chain (Booth and et.al., 2020).
CONCLUSION
It can be concluded from the above report that business refers to all the commercial and
industrial activities in order to gain the insights business operation in the targeting market. As
mentioned in the above report there are several HRM strategies were deployed in order to hired
then ideal candidate in the operations. By the dedicated development training programs the
employees skilled were enhanced according to the company functions. In further the internal
and external analysis was performed in order to gain the insights of company functions. The
finance forecasting played major role I order to gain the future attributes for the company. By
such practice they improvised their current strategies and provided the edge in the company
functions.
5

REFERENCES
Books and Journals
Block, S.B., Hirt, G.A. and Danielsen, B.R., 2018. Foundations of financial management.
McGraw-Hill Education.
Booth, P., Chadburn, R., Haberman, S., James, D., Khorasanee, Z., Plumb, R.H. and Rickayzen,
B., 2020. Modern actuarial theory and practice. CRC Press.
Buckle, M. and Thompson, J., 2020. The UK financial system: Theory and Practice. Manchester
University Press.
Teiwes, H., Rössinger, M., Gonter, M., Herrmann, C. and Thiede, S., 2021. Data based analysis
and improvement of energy efficiency in the automotive body shop. Journal of Cleaner
Production, 284, p.125269.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
Titman, S. and Keown, A.J., 2018. Financial management: Principles and applications. Pearson
Education, Inc..
6