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In this report I will be speaking about how managing the resources of an organisation and effective budgetary control can lead to improved performance of a business.

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Unit 2: Exploring Business Activity Assignment 2 D1 Amendment Subject: How managing the resources of the organisation and effective budgetary control can improve the performance of a business. Introduction: In this report I will be speaking about how managing the resources of an organisation and effective budgetary control can lead to improved performance of a business. Findings/ Main Body: As I have talked about with you before, managing the resources of an organisation and looking closely at its budgetary control is absolutely vital in business. It improves performance over every department and gives the business management team a clear view on where they can expand and develop in the future. Every public limited company that allows people to buy shares within their business must publish their accounts so that investors can see how well they are doing and judge whether or not to buy their shares on the stock exchange. All the top dog companies have a clear view on their resources and budgets; this is evident from Tesco who have lists of all their resources and a clear cash flow all on one financial statement. They made profits of over £2 billion in 2005 and this tells us that managing budgets and resources well really does improve businesses performance. ...read more.


Say for example the government orders all insurance on cars to increase by 15%, this used to be a fixed cost however on the odd occasion it can change. Applying close attention to changes within ?fixed? costs can be crucial and will improve the performance of management decisions in the future as you have valid data to hand. The pricing in times like the recession for rent could always be changing and product prices can go up or down according to competitors within the marketing environment, using invalid information for predictions on what will happen with the business is suicidal and managing resources and budgets can cover this problem and in turn improve the companies performance by making accurate marketing decisions that will benefit the company. Also, in any recession businesses need to insure their safety by keeping reserves from the cash flow cycle for emergencies. An emergency could render anything from a downturn in the market to an offensive attack on your business premises, keeping reservations will help soften the effects of these situations. Business analysts recommend that reserves should be maintained which will allow the business to continue for at least three months in the event of an emergency. ...read more.


Conclusions: To sum up this and all the previous reports, the management of costs, budgets and resources all work co-ordinately to improve overall business performance. This is done in many ways but mainly in that it increases the break even point, the margin of safety and can reduce overheads significantly, this all results to greater profits which is the core of all non-charitable organisations therefore making the management of resources and budgets vitally important. Recommendation: My recommendation to anyone who starts up a business is to make sure that right from the start you have an effective budgetary control and a well managed resource department. Make sure that you stay up to date with your marketing environment that is relevant to your niche market to ensure you gather correct information in order to make accurate marketing decisions. Any business that doesn?t have a good budgetary and resource control system is deemed to fail sooner or later and, if this is relevant to you, then I would re-design your business before it starts making a gaping loss and you?re left wondering why, without any accurate information to go by. Terms of reference: http://www.qfinance.com/contentFiles/21/tr1/46_-3133_50.png , BTEC National Business Book 1 by David Dooley Unit 2: Exploring Business Activity Assignment 2 D1 ...read more.

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