Business Resources Evaluation: Tesco Company's Financial and HR Report

This report provides a comprehensive analysis of Tesco's business resources, covering various aspects such as recruitment documentation, employability skills, physical and technological resources, internal and external finance, trading and profit and loss accounts, balance sheets, the use of budgets, and overall financial state. The report delves into Tesco's recruitment processes, including job advertisements, job descriptions, and person specifications. It examines the importance of employability, personal, and communication skills for customer assistant positions. Furthermore, it explores Tesco's physical and technological resources, including buildings and facilities. The report also investigates internal and external finance sources, trading performance, and the interpretation of profit and loss accounts and balance sheets. Additionally, it discusses the use of budgets for financial control and performance monitoring, and concludes with an analysis of Tesco's financial state using ratio analysis, including profitability ratios such as gross profit, net profit, and return on capital employed. The report utilizes Tesco's financial data from 2012 to 2016 to illustrate key concepts and financial performance.

BUSINESS RESOURCES

Table of Contents
INTRODUCTION ..........................................................................................................................1
P1:Recruitment documentation ..................................................................................................1
P2:Employability, personal and communication skills ..............................................................2
P3:Physical and technological resources ...................................................................................2
P4:Internal and external finance .................................................................................................2
P5:Trading and profit and loss account and balance sheet ........................................................3
P6:Use of budgets ......................................................................................................................4
P7:Financial state .......................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Business resources of the Tesco company determine the many recruitment and selection
process in this organisation. There are many process of the business like human resources
management, technological etc. this process including financial, physical and knowledge factor.
This factor many be provide an organisation that the manager and companies other employees
can be performed better production and company goals and objectives. This resources
developing company growth and their value in an organisation. This company use internal and
external resources of the financial and human management. HR factor developing advertisement,
sales promotion and other method that attracting candidates related to the job profile. Financial
resources many be including balance sheet, income statement and profit and loss account for the
tesco company. This statement create company position and their stander in this market.
Company calculating their financial report with the help of break even analysis (Bruneel and
et.al., 2012).
P1:Recruitment documentation
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. 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(Brush and et.al., 2015). 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 person to do in this job.
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P2:Employability, personal and communication skills
In this task I will be describing the main employability, personal and communication
skills required when applying for a customer assistant position at Tesco’s.
The first quality an employer will look for in an applicant is the qualifications they have. Are the
qualifications suitable? Have they got a satisfactory amount? Sometimes the qualifications don’t
matter depending on the particular job, but most of the time, employers will only take on people
who have sufficient qualifications.
The qualifications show that they have put a lot of effort into their education and care
about their future. It is possible that the job they are applying for is a particular career path that
they want to pursue for a long time; this would mean they would have had extra education,
showing their dedication (Chang and Wang ., 2011). In this case, the job is a customer assistant
at Tesco, so personal skills would be more important than the qualifications they have. They may
need to have a certain number of qualifications, to show they are well educated, but what they
are wouldn’t really be a primary concern.
P3:Physical and technological resources
Building and facilities
All all businesses need premises which they operate from, this can range from someone’s
front room, or tower blocks all over the world. Buildings play an important role in the image of a
business and can influence different types of customers, many financial institutions such as
Lloyd's TSB and HSBC have very famous buildings as their headquarters and are still located in
central London near the stock exchange so that they can maintain links with clients in person as
well as online for some businesses, the attractiveness of the building is not important as the
inside because customers are never expected to see the building itself or expected to see what
goes on there, for example Tesco PLC will have huge warehouses in industrial estates which do
not necessary in an inside organisation (Hakanenand Jaakkola ., 2012).
P4:Internal and external finance
All business needs money in order to operate properly. Finance simply means the
management of some amounts of money. And source of finance is generally the place where
money comes from. Example Wait-rose gets money by selling their products to the customers
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and hence customers are the different classes Internal and External source of finance
Internal source are usually from inside of the business organisation which are often preferable to
any organisation as they will usually be cheaper and perhaps easier to arrange.
According to Rod Gammon a personal assistance in Wait-rose, he said Wait-rose gains
lots of profit through Sales and without sales Wait-rose, can be in financial crisis. Hence this will
give them access to some capital, even though they are then burdened with annual leasing costs.
Sales are a good way to raise financial from substances that is no longer needed. But even though
there is some disadvantage for business. Some businesses are unlikely to have profit from the
substances that they sell and can be slow method of raising finance for organisation.
Capital from Profits: Once a business starts to run properly it may be able to invest its money
that came for their profit. This means that even bigger profit can be made in upcoming days. The
amount of profit in Wait-rose depends on how much profit the owners want to keep for
themselves against how much they wants the business to expand (Kamenetskii and Yas'
kova.,2015).
External sources of finance are generally from outside the business. It involves business
owing money to outside individuals or institutions. There are a number of different external
sources. Banks are the most commonly used external source of finance. Wait rose do depends
upon Banks as a part of External source.
P5:Trading and profit and loss account and balance sheet
This report is going to interpret the contents of a trading and profit and loss account and a
balance sheet for a selected company. 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 company'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 company have increased in 2013 to £64,826m from £63,916m
in 2012 this indicates that company have sold more product that they have sold in 2013 to
increase their revenue (Kiron and et.al., 2012).
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The Net profit is the overall of the loss and profit taken into account on the balance sheet,
for example company 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. The net profit
in 2013 has decreased than in 2012 for example company net profit was £120m and in 2012
Tesco plc’s net profit was £2,814m. This shows that in 2013 business has made less profit in
2013 than in 2012 for example organisation 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:
 A statement of fixed assets, current assets and the liabilities (Net Assets)
 A statement showing how the Net Assets have been financed, for example through share
capital and retained profits (Miller ., 2011).
P6:Use of budgets
A budget is a financial plan for the future concerning the revenues and costs of a
business. However, a budget is about much more than just financial numbers.
Budgetary control is the process by which financial control is exercised within an organisation.
Budgets for income/revenue and expenditure are prepared in advance and then compared with
actual performance to establish any variances. Managers are responsible for controllable costs
within their budgets and are required to take remedial action if the adverse variances arise and
they are considered excessive.
 There are many management uses for budgets. For example, budgets are used to:
 Control income and expenditure (the traditional use).
 Establish priorities and set targets in numerical terms.
 Provide direction and co-ordination, so that business objectives can be turned into
practical reality (Mithas and et.al., 2011).
 Assign responsibilities to budget holders (managers) and allocate resources.
 Communicate targets from management to employees.
 Motivate staff.
 Improve efficiency.
 Monitor performance.
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 Whilst there are many uses of budgets, there are a set of guiding principles for good
budgetary control in a business.
 In an effective budget system:
P7:Financial state
Ratio analysis is one of the ways businesses measure how they are doing and compare it
to last year or their competitors. In order for these ratios to be useful,they should be compared
recently to see if there are any trends and also compare this with their competitors.
Profitability
Ratios can show how much profit a business can make either by looking at it as a snapshot or
over time. There are three types of finding out how much a profit makes by calculating the
1.Gross profit
2.Net profit
3.Return on capital employed
Gross profit percentage
This shows the positive percentage that comes into the business. The percentage calculated
presents the turnover such as sales and any other income that a business gets (Mouzas and Ford .,
2012). To calculate the percentage it will be shown as the following:
Gross profit/ turnover of the business *100=%
An example using tesco would be:
2690/9000*100=40.1% in 2015
compared to 2016 which was:
2750/9000*100=30.6%
This shows that the gross profit has reduced over the year As the gross profit margin
presents how well the business is managing its purchase of stock. If mike engineering business
increased over the year, it would be meant that it is doing well controlling the cost of their
purchases but has turned out as opposite.
Net profit
This is where the negativity of the profit t is calculated by the gross profit minus other
expenses that the business has made like rent or advertising. The calculation can also be seen as a
step further by considering the pro t at a percentage of turn over after all the expenses are made
including the other one (Kiron and et.al., 2012.). It can be worked out as:
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Net profit\ turnover*100=net profit percentage
An examples using Tesco company would be:
1560/6700*100=23.3%in2015
compared to 2016:
1370/9000*100=15.2%
Return on capital employed
This is the third option for calculating profitability within the business. It is worked out by
considering the net profit as a percentage of the capital employed by the business. The reason
this ratio is useful for the business is so that the can see the amount of money an investor is
receiving back on their capital as a percentage.
An examples from Tesco company would be:
1560/3760*100=41.5% in 2015
whereas in 2016 it is show as:
1370/30608100=44.8%
This shows that they have had no investors putting money in their bank as their percentage as
gone low from 2015 -2016 If the interest rate is higher than the return of capital employed, then
this shows that the investor has put money within their business (Onetti and et.al., 2012).
CONCLUSION
As per the mention report define many business sources in this organisation. This sources
including human resource, technological factor and financial resources. This report determine the
employability, personal skill and knowledge for the specific job profile. Company use many
financial statement like balance sheet, income statement and profit and loss account. This report
including internal and external financial resources.
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REFERENCES
Books and journals
Bruneel, J., Ratinho, T., Clarysse, B. and Groen, A., 2012. The Evolution of Business Incubators:
Comparing demand and supply of business incubation services across different
incubator generations. Technovation, 32.(2). pp.110-121.
Brush, C.G., Edelman, L.F. and Manolova, T., 2015. The impact of resources on small firm
internationalization. Journal of Small Business Strategy, 13.(1).pp.1-17.
Chang, H.H. and Wang, I.C., 2011. Enterprise Information Portals in support of business
process, design teams and collaborative commerce performance. International Journal
of Information Management, 31.(2).pp.171-182.
Hakanen, T. and Jaakkola, E., 2012. Co-creating customer-focused solutions within business
networks: a service perspective. Journal of Service Management, 23.(4). pp.593-611.
Kamenetskii, M.I. and Yas' kova, N.Y., 2015. Administrative resources as a factor in improving
the efficiency of the state administration system. Studies on Russian Economic
Development, 26.(2). p.124.
Kiron, D and et.al., 2012. Social business: What are companies really doing?. MIT Sloan
management review, 53.(4).p.1.
Miller, D., 2011. Miller (1983) revisited: A reflection on EO research and some suggestions for
the future. Entrepreneurship Theory and Practice, 35.(5). pp.873-894.
Mithas, S., Ramasubbu, N. and Sambamurthy, V., 2011. How information management
capability influences firm performance. MIS quarterly, pp.237-256.
Mouzas, S. and Ford, D., 2012. Leveraging knowledge-based resources: The role of contracts.
Journal of Business Research, 65.(2). pp.153-161.
Onetti, A and et.al., 2012. Internationalization, innovation and entrepreneurship: business models
for new technology-based firms. Journal of Management & Governance, 16.(3).
pp.337-368.
Online
Describe the Recruitment Documentation Used in a Selected Organisation. 2017. [online].
Available through:<https://www.termpaperwarehouse.com/essay-on/P1-Describe-The-
Recruitment-Documentation/273962>. [Accessed on 5th June 2017].
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