Business Resources Report

This report provides a comprehensive analysis of Tesco's business resources, covering various aspects of business operations. It begins with an introduction highlighting the challenges and importance of proper preparation for business success. The report then delves into recruitment processes, deta...Read More

BUSINESS RESOURCES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Recruitment and documentation of job advertisement, job description and person
specification................................................................................................................................3
P2 Describe the main employability, personal and communication skills required when
applying for a specified job role..................................................................................................4
TASK 3............................................................................................................................................5
P3 Describe the main physical and technological resources.......................................................5
TASK 3............................................................................................................................................6
P4 Describing the range of internal and external sources of finance..........................................6
P5Interpret the contents of a trading and profit and loss account and balance sheet..................7
P6 Illustrate the use of budgets as a means of exercising financial control of a selected.........10
Company...................................................................................................................................10
P7 Illustrate the financial state of a given business..................................................................11
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................17

INTRODUCTION
Starting a business can seem like a daunting task. In fact, it is. Of the many businesses
that open each year, many fail to last as long (Van Rooij and et.al., 2011). Though there is no
guarantee for success, an entrepreneur who has properly prepared has a leg up on the
competition. In addition to a strong business plan, there are five resources that contribute to the
success of a new enterprise. The present report based upon the Tesco Company in which there is
a detailed study on business resources
TASK 1
P1 Recruitment and documentation of job advertisement, job description and person
specification
Tesco Company is hiring a sales assistant in their company to improve the sales performance. In
regard to this, there is a documentation prepare which are as follows-
Tesco Company Requires
SALES ASSISTANT
The right candidates should have:
 2-3 years experience as sales Assistant
 Graduate or minimum secondary school
 Experience in sales, merchandising, customer services preferred
 Good written and spoken communication skills in English, knowledge of Arabic is an
added advantages
 Knowledge of basic computer skills
 Ability to work well in a team
 Presentable, proactive and willing to accept shift duties
Please E-mail your CV with photograph to:
[e-mail] or mail to:
Tesco House Shire Park Kestrel Way Welwyn Garden City Hertfordshire AL7 1GA England
Job description
Duties:

 Greeting customers who enter the shop.recruitment
 Be involved in stock control and management.
 Assisting shoppers to find the goods and products they are looking for.
 Being responsible for processing cash and card payments.
 Stocking shelves with merchandise.
 Answering queries from customers (James, E., King, E.M. and Suryadi, A., 2011. ).
 Reporting discrepancies and problems to the supervisor.
 Giving advice and guidance on product selection to customers. Balancing cash registers with receipts
Personal skills:
 Having a friendly and engaging personality.
 Comfortable working with members of the public.
 Should have a confident manner.
 Must be helpful and polite.
 Assistants should be physically fit as they will be on their feet for most of the day and
may be required to lift large amounts of stock. You should have a comprehensive understanding of your area of sales i.e. retail, Fast
Moving Consumer Goods, sports equipment etc.
Qualification:
NVQ /VQ Retail Operations at levels 2, 3 and 4.
P2 Describe the main employability, personal and communication skills required when applying
for a specified job role
Employability skills: Employability as the ability of a graduate to get a satisfying job,
stating that job acquisition should not be prioritized over preparedness for employment to avoid
pseudo measure of individual employability. Lee argues that employability is not a set of skills
but a range of experiences and attributes developed through higher-level learning, thus
employability is not a “product‘ but a process of learning.
Employability continues to develop because the graduate, once employed, does not stop learning
(i.e. continuous learning). Thus employability by this definition is about learning, not least
learning how to learn, and it is about empowering learners as critical reflective
citizens[6] definition is important for it emphasizes employability of graduates, which is similar

to our context, hence, able to provide insight about how to measure graduates‘ employability and
what are the differences between graduates and experienced individuals in labor market
(Madura, 2011). For example, the employees applying for jobs should possess which include;
qualification and experience that are directly linked to the job that is being applied for
Personal skills: It is that types of skills can be abilities we are born with, our natural
talents, or things we develop through our experiences and deliberate practice. Whether an innate
aptitude or a developed capability, knowing what our own personal skills are is very useful in
both our personal and professional lives.
Communication skills: Professionally, if you are applying for jobs or looking for a
promotion with your current employer, you will almost certainly need to demonstrate good
communication skills. Communication skills are needed to speak appropriately with a wide
variety of people whilst maintaining good eye contact, demonstrate a varied vocabulary and
tailor your language to your audience, listen effectively, present your ideas appropriately, write
clearly and concisely, and work well in a group.
TASK 3
P3 Describe the main physical and technological resources
Tesco Company adopts main physical and technological resources that are as describe as
follow:
ICT: Information and Communication Technology (ICT) is an extended term for
information technology (IT) which stresses the role the integration of telecommunications ( lines
and wireless signals), computers as well as necessary enterprise software, middleware, storage,
and audio-visual systems, which enable users to access, store, transmit, and manipulate
information.
The term ICT is also used to refer to the convergence of audio-visual and telephone networks
with computer networks through a single cabling or link system. There are large economic
incentives (huge cost savings due to elimination of the telephone network) to merge the
telephone network with the computer network system using a single unified system of cabling,
signal distribution and management.

Intellectual property: Copyright is a legal right created by the law of a country that
grants the creator of an original work exclusive rights for its use and distribution. This is usually
only for a limited time. The exclusive rights are not absolute but limited by limitations and
exception to copyright law, including fair use. A major limitation on copyright is that copyright
protects only the original expression of ideas, and not the underlying ideas themselves (O'Riain,
Curry and Harth, 2012). Tesco Company use copyright which provide guaranteeing them a
period of time in which they alone could profit from their works, they would be enabled and
encouraged to invest the time required to create them, and this would be good for society as a
whole.
A right to profit from the work has been the philosophical underpinning for much
legislation extending the duration of copyright, to the life of the creator and beyond, to their
heirs. Apart from this, IP law typically grants the author of an intellectual creation exclusive
rights for exploiting and benefiting from their creation. However, these rights, also called
monopoly right of exploitation, are limited in scope, duration and geographical extent. IP
protection is intended to stimulate the creativity of the human mind for the benefit of all by
ensuring that the advantages derived from exploiting a creation benefit the creator. This will
encourage creative activity and allow investors in research and development a fair return on their
investment. IP confers on individuals, enterprises or other entities the right to exclude others
from the use of their creations. Consequently, intellectual property rights (IPRs) may have a
direct and substantial impact on industry and trade as the owner of an IPR may - through the
enforcement of such a right - prevent the manufacture, use or sale of a product which
incorporates the IPR.
TASK 3
P4 Describing the range of internal and external sources of finance
Tesco company adopts internal and external sources that are as describe as follows:
Retained Earning: Retained earnings refer to the percentage of net earnings not paid out
as dividends, but retained by the company to be reinvested in its core business, or to pay debt. It
is recorded under shareholders' equity on the balance sheet. The formula calculates retained
earnings by adding net income to, or subtracting any net losses from, beginning retained
earnings, and subtracting any dividends paid to shareholders (Guthrie, Olson and Humphrey,

2010). Retained earnings at the end of one accounting period is the opening retained earnings in
the next period, to which is added the net income or net loss for that period and from which is
deducted the bonus shares issued in the year and dividends paid in that period.
Venture Capital: It is same as equity shares except that the investors are a different set
of people. Commonly known as venture capitalists, they normally invest in a new company at an
initial stage and do a rigorous analysis of a company before investing. Venture capitalists exit the
firm once it starts getting a good valuation.
Leasing and Hire Purchase:Choosing hire purchase or lease as an option over paying
the full amount to the supplier of goods can help businesses delay its cash payment which is
equal to having its goods financed. Normally, the hire purchase option is provided by suppliers
of big machinery or bank becomes an intermediary at times. Both lease and hire purchase
provide the buyer with an option to purchase the asset at the end of its term.
P5Interpret the contents of a trading and profit and loss account and balance sheet
The selected company that is report is going to interpret the content is Tesco plc from
2012 to 2013, and looking into their income statement and their balance sheet found from their
website. Income statement The income statement measures the trading performance through
revenues, gains, expenses, losses, net income etc. Profit figure can be established by deducting
expenses from sales. This allows calculation of profitability. Revenue is in the financial
statement that looks at the amount of income that an organisation receives in a specific period.
For example Tesco plc.’s revenue has total revenue of 64,826m in 52 weeks in 2012/2013. The
revenue gives an overall cost of money that an organisation has made from selling goods. The
revenue of Tesco plc have increased in 2013 to £64,826m from £63,916m in 2012 this indicates
that Tesco plc have sold more product that they have sold in 2013 to increase their revenue.
The Net profit is the overall of the loss and profit taken into account on the balance sheet,
for example Tesco plc’s net profit is £120m for the year, and this indicates the net profit gives an
overall amount of money they have made in the organisation after all cost covered (Madura,
2011). The net profit in 2013 has decreased than in 2012 for example Tesco plc’s net profit was
£120m and in 2012 Tesco plc’s net profit was £2,814m. This shows that in 2013 Tesco plc has
made less profit in 2013 than in 2012 for example Tesco plc have a cost of sales was from
£58,519m in 2012 to £60,737m in 2013. This shows that the suppliers have increased their prices
up. Balance sheet A balance sheet is a statement of the total assets and liabilities of an

organisation at a particular date the balance sheet is split into two parts: (1) A statement of fixed
assets, current assets and the liabilities (Net Assets) (2) A statement showing how the Net Assets
have been financed, for example through share capital and retained profits

P6 Illustrate the use of budgets as a means of exercising financial control of a selected
Company
Costs and budgets.
Tesco Company’s management of costs is very important for the business/ its financial resource.
If a company doesn’t manage their costs effectively it can lead to that their profits are going to be
greatly damaged and it can lead to that the company can’t even pay anymore his expenses. Tesco
Company’s costs and budgets are ordered carefully to make sure that there is a capital/of money
available for emergencies. This is all part of the balancing exercise.
The rules Tesco Company needs to keep with: They need to stay within their budget, Need to
have money ready for emergencies, And be sure that they have working capital available.
Use of budgets.
There are two main costs that you need to manage to budget: fixed costs and variable costs.
Fixed costs won’t change, regardless of the number of goods that are sold or services that are
offered. These costs include insurance, rent and salaries. It doesn’t matter how much money
Tesco Company make’s they still need to pay these costs.
Variable costs change according to output. These costs change directly according how many
products are made.
Why it’s important to budget as a company.
1. Setting targets. You could use these budgets to project your revenues and spend help
determine how the business will achieve their short time/long time strategy’s.
2. Your strategy requires funding(Lusardi & Mitchell and et.al., 2008). Planning and
strategy’s go hand in hand and to finance these things budgets are required. Budgeting
ensures that dollars are allocated to your company’s goals.
3. Control your spending. Unallocated spending is not tolerated. Budgets help to establish
those boundaries to eliminate unbudgeted spending.

4. It provides a profit margin. These things provide a resource what you can then reinvest
back into the business. This way companies can grow. Budgeting for a profit margin
helps you to get in your future more successful. It also determines an organizations ability
to grow.
There are two types of budgeting.
Zero based budgeting(ZBB): zero based budgeting is a method of budgeting in which expenses
must be justified for every new period. They start from a zero base and every function within an
organization is analyzed for their needs and costs. Budgets will be then built around what is
needed for Tesco Company’s upcoming period, regardless of the budget is higher or lower than
the previous one.
Allocated budgeting: Allocated budgeting is when money is allocated for a budget and spread
out between different departments and business interests. They set an budget mostly at the start
of an financial year and then the business(Tesco Company) needs to stay each month with their
predicted budget (Samiksha, S., 2016). When the sales are higher than budgeted it will likely be
positive but if the costs do get higher it can lead to less profits and if it’s very bad it could lead to
problems with paying their expenses
P7 Illustrate the financial state of a given business
 Collection of Annual accounts
Profit and Loss Account of Tesco

Balance Sheet of Tesco

Cash flow statements

CONCLUSION
Summarizing the whole report it has been concluded that Tesco plc from 2012 to 2013,
and looking into their income statement and their balance sheet found from their website. Income

statement The income statement measures the trading performance through revenues, gains,
expenses, losses, net income etc. Profit figure can be established by deducting expenses from
sales. This allows calculation of profitability. Revenue is in the financial statement that looks at
the amount of income that an organisation receives in a specific period. For example Tesco plc.’s
revenue has total revenue of 64,826m in 52 weeks in 2012/2013. The revenue gives an overall
cost of money that an organisation has made from selling goods. The revenue of Tesco plc have
increased in 2013 to £64,826m from £63,916m in 2012 this indicates that Tesco plc have sold
more product that they have sold in 2013 to increase their revenue.

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