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Business resources D1

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Introduction

D1, Evaluate how managing resources and controlling budgets can improve the performance of a business. If a business manages its physical and technological resources well this would the performance of the business it will give Sainsbury the full benefits of the resources. If Sainsbury manages and controls its budgets effectively then it can improve the performance and success of the business. If a business manages to maximise it income and minimise it cost then it would improve the business profits level which would improve the business performance. If a business manages it cost and budgets properly by purchasing the right stock level which it needs and knows it would sell with a specific period of time then this means that the business would benefit by making substantial sales revenue from those stock as a result. Another benefit is that the business would be saving money from the space needed to hold the stock in the stockroom. Another benefit would be that the business would be making good profits level from the sales. This would improve the performance and success of the business overall. ...read more.

Middle

Another advantage would be that the business would be able manage to assess and evaluate its finances. However, if a business doesn't manage to control it cost and budgets properly then the business would purchase huge amounts of stock and doesn't know whether or when it would sell the stock which it had bought. Then this means that the business has tied up its money in stock and that is would be a drawback for the business because the business wouldn't have money to spend in other areas of the business such as paying overheads and expenses so the business would have to borrow some money and pay interest in that money. Another disadvantage is that if the business doesn't the stock in the specific period the stock could become out of date or out o fashion. So the business has to sell those products cheaper then this would mean that they might make less profit on those products or even a loss in some cases. Another disadvantage is that the business would be wasting space in the stock room. Therefore this is would affect the performance of the business as it would reduce its sales revenue and profits. ...read more.

Conclusion

So as a result it would be hard to know the performance of the business as a whole. I can conclude after evaluating the advantages and disadvantages of managing physical and technological resources and cost and budget I can say that it is in the best interest of a business to manage it's physical and technological resources as it will improve the overall performance of the business. In addition to that the business will gain the complete advantage of the resources. Furthermore the business will reduce cost and the resources will last longer for the business. It is in the utmost advantage of a business to manage it cost and budget. For a business who manages it costs and budgets will receive huge benefits. The business will increase its income and reduce it expenses. So therefore this will improve the overall performance of the business. In addition to that the business shareholders would receive high dividends at the end of the trading year for the business. This will then encourage the shareholders to invest money in the business which would the business grow and improve the success of the business. ?? ?? ?? ?? Abdulaziz Omar Unit 2 - Investigating Business Resources ...read more.

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The writer has not considered the wide variety of resources that are used by a business and evaluated their effective use to its performance. More specifically applying it to one business would help and although the writer starts to talk about Sainsbury's, they do not pursue it. They concentrate only on a few resources and their relation to minimising costs and do not consider the use of resources in maximising revenue.

Marked by teacher Dennis Salter 04/04/2013

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