• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  6. 6
  7. 7
  8. 8
  9. 9
  10. 10
  11. 11
  12. 12
  13. 13
  14. 14
  15. 15
  16. 16
  17. 17
  18. 18
  19. 19
  20. 20
  21. 21
  22. 22
  23. 23
  24. 24
  25. 25
  26. 26
  27. 27
  28. 28
  29. 29

Investigating Business Resources

Extracts from this document...


P1 - Describe how a selected business manages its existing human resources MANAGEMENT OF HUMAN RESOURCES WITHIN TARMAC From: Date: 30 September 2008 1.0 TERMS OF REFERENCE This report is for the manager and it will describe how Tarmac manages its human resources. The report has to be delivered by the 30 November 2008. 2.0 PROCEDURE In order to write this report an extensive research was carried out on the company's website as well as on other websites related to the business. 3.0 FINDINGS Tarmac is the leader supplier of heavy materials in the UK, providing solutions in all areas of everyday life, for everyone. Vision, mission and values: To be the first choice for building materials and services that meet the essential needs for the sustainable development of the world in which we live. Tarmac is a limited company and a registered trademark. Tarmac is made up of three businesses - Tarmac Aggregate Products, Tarmac Building Products and Tarmac International Businesses. Tarmac Aggregate Products produces aggregate, asphalt, ready-mixed concrete and provides a contracting and recycling service. This business is divided into seven areas to help them to respond and react more quickly to, and have a better understanding of local requirements. The seven areas are: Scotland and Northern Ireland, Northern, North West, Midlands, Western, Anglia and South East and South West. Tarmac Building Products produces cement, lime, mortar and concrete products. Tarmac International Businesses' activities range from aggregates and asphalt to ready-mixed concrete and concrete products. They are growing very fast and currently operate in Belgium, Czech Republic, France, Germany, Hong Kong, Middle East and Poland. Tarmac is a large company and the organisational structure is complex. The main departments for all three units are operational, technical and commercial; and the main support departments are shown on the diagram below. The business unit of aggregate products based in the UK and particularly in London has three main levels of staff: Managers - they organise and plan their departments to exceed the expectation of internal end external customers. ...read more.


Main disadvantages: a substantial deposit is normally required, between 5%-25% depending on the asset; there will be a penalty if the agreement is terminated and depreciation and age lead to a reduced return on assets. Leasing/factoring Leasing is a contract between the leasing company, the lessor, and the customer (the lessee). The leasing company buys and owns the asset that the lessee requires. The customer hires the asset from the leasing company and pays rental over a pre-determined period for the use of the asset. Advantages: leasing can allow you to use better equipment (e.g. more efficient, faster equipment) and security as the leasing company owns the product so you do not need to provide further security. Disadvantages: you never own the product; it remains property of the leasing company before and after the lease what means that you can not even sell it and maintenance as you are responsible for it as well as for repairs. Factoring is a bit different; the business already established uses the service of a debt factoring firm. The factoring company provides the business with a percentage of the face value of the invoice, commonly 80% within days of an invoice being raised. The factoring company then assumes responsibility for collecting payment of the invoice, on receipt of payment the factor will pay the business the remaining 20%, whilst charging a fee for the service they provide. There are many firms offering this service, one example being Independent Commercial Finance Limited. The main advantage is the quickness to raise capital as for example a business that is owed �300,000 may be able to get �200,000 or more in just a few days. The main disadvantage is the cost as it will reduce the profit margin on each order and you have to pay extra to remove your liability for bad debtors. There are several leasing and factoring companies, including banks and independent finance houses. ...read more.


They are in a safe financial situation. Year 2001 Acid test = (current assets-stock)/current liabilities Acid test = 373.2/200.6 Acid test = 1.86 Year 2002 Acid test = 480/251.5 Acid test = 1.91 Again the ideal result is 1:1 at least and for both years the company is nearly 2:1 meaning they do have sufficient money to pay its current liabilities. Return on capital employed The return on capital employed ratio (ROCE) tells us how much profit he company we earn from the investments the shareholders have made in their company. Year 2001 ROCE = profit for the year/equity shareholder's funds ROCE = 83.9/499.7 ROCE = 0.17% Year 2002 ROCE = 100.8/546.9 ROCE = 0.18% In 2001 shareholders earned 0.17% in return of what they invested and in 2002 they earned 1% more. Asset turnover Asset turnover measures how effectively a business is using assets to generate sales. It is: Sales/assets Year 2001 Asset turnover = 1588.5/527.6 Asset turnover = 3.01 Year 2002 Asset turnover = 1871.7/586.1 Asset turnover = 3.19 In 2001 turnover (sales) is 3.01 bigger than total assets and in 2002 turnover is 3.19 bigger than total assets. In other words the company was able to generate sales of �3.01 for every �1.00 of assets in 2001 and in 2002 the company generated �3.19 of sales for every �1.00 of assets. Debt/equity ratio Measure used to assess a company's financial health. The ratio is calculated by dividing the company's long-term debt (capital contributed by creditors) by the shareholders' equity (contributed by owners). Year 2001 Debt/equity ratio = 18.5/499.70 Debt/equity ratio = 0.04:1 Year 2002 Debt/equity ratio = 20.4/546.9 Debt/equity ratio = 0.04:1 For both 2001 and 2002 the debt/equity ratio was almost zero. This indicates the business prefers equity funding to debt funding which minimises the interest payment problems and the control problems of having a dangerously high level of long-term debt on the balance sheet. Overall the company did well in 2001 and 2002 and in fact it did better in 2002. The company is in a solid financial health. ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marked by a teacher

    Skills and Knowledge Needed to Work In A Business Environment

    5 star(s)

    Companies should use resources more wisely and make resources available for future generations as this world will one day get full of rubbish that there won?t be a chance for our future generations to have a healthy lifestyle as we led.

  2. (P4) Describe the Functional Activities and the Independencies of Tesco Plc and Coleraine Borough ...

    Procurement is the linkage between Tesco Plc and their suppliers. Logistics managers are responsible for ensuring stock is exchanged between warehouses, stock outlet stores, from suppliers, to customers etc Therefore this department is responsible for ensuring not only that goods are arranged for dispatch but also; * Planning vehicle routes,

  1. Unit 2 P3 Describe the main physical and technological resources required in the operation ...

    for customers to purchase and keeping records of sales on ICT equipment make it easier to maintain records and keep those data. Equipment including ICT can influence Tesco plc?s performance if this equipment is not taken to hand for example if Tesco plc?s online store is having technical difficulties on their website, this can cause losses of existing customers.

  2. Unit 1 P5 Describe the influence of two contrasting economic environment on business activities ...

    When businesses are out of rescission investment will be invested in advertising, this because businesses need to get the message out to consumers that they have the supplies the consumers want. Profit margins should increase since demands are increasing and consumer?s confidences are more confident in purchasing goods.

  1. Unit 32 P3 Explain how developments in the consumer market have impacted on food ...

    Farmers markets have also been impacted by changing Social and working patterns, this is because some people like freshly grown produce and therefore go to the farmers markets. This means farmers ensure that the produce is fresh from the day before for the customers to purchase.

  2. The international business environment of Apple Inc

    Values 4. Attitudes 5. Customs 6. Education 7. Work attitudes Language is an issue that needs to be taken into account. The universal language spoken is English; however there are many countries which do not use English as a preferred language and would much rather speak a language that is in their own culture.

  1. Unit 1 P3 P4 P5 P6 Business Organisation and The Business Enviroment - comparing ...

    allows the business to produce a work plan for the employees to follow so they can meet their plans for the future. P5) For this unit I shall be researching how the different economic business environments affect Sainsbury?s and Chrysler Sainsbury?s is one of the world leading supermarket industries that

  2. Unit 2 M3 Interpret the content of trading and profit and loss account and ...

    plc and multiplied by 100 for an overall percentage, for example: Net profit/sales x 100 = net profit margin (use profit for the year) This will allow Tesco plc to show an overall loss and profit taken into account on their balance sheet, this the actual profit after working expenses

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work