Investigating Business Resources
BTEC National Business
Anna Draganova
Investigating Business Resources
We all nave notices at work or from experience that there are different types of resources that all business organisations use in order to perform well.
In this coursework I will explain what are the main areas that these resources come from:
- Human Resources (HR) – related to anything that is related to the people in the business.
- Physical – resources that are physically used by the business, such as land, raw materials, equipment, buildings. Physical Resources is the resources that businesses carry out in order to complete their aims and objectives. Physical Resources are things such as machinery, equipment, IT etc. The manager of the organisation has to take responsibility in events such as emergency and has to plan out what needs to be done if such thing might occur.For instance, if a sprinkler system may be needed in the event of a fire, the manager has to have a ‘Contingency Plan’ present if they have to cope with such a major incident.
- Technological – make use of IT or technology, e.g.: computers, software or systems. Technology is things like computer software’s, music, design etc. Accumulated experience and skill are the other area of technological resources that are important to a business. Accumulated experience help out a business as the staff and managers have gained a lot of experience over a number of years. Keeping the staff in their jobs will expertise the growth of the business.
- Financial Resources rates to any aspect of the business relating money, such as cash, money owned to or by the business. Financial resources is an essential and complex area of a business. Financial resource may be obtained through bank loans, grants etc. Some businesses may wish to raise finance in other ways instead of having large organisation own part of their business. They may go to banks for a loan or to apply for a grant.
I will be describing and explaining what are the different costs and budgets; why all businesses needs to control them and what will be the difference if the business does not monitor them.
Costs are the money that every business needs ‘in order to run, so they can cover their expenditure, such as bills, rent, suppliers. There are two main types of costs – Fixed and Variable. Fixed costs are the one that will not change in long term no matter of the quantity of products sold, such as rent and salaries. While the variable costs are exactly the opposite, they change of the quantity products sold, raw materials used of the made of the product, costs that you cannot predict.
A really difficult process is budgeting, that is when the business needs to think that to decide what to do with the money after they made it to break even, with other word where to invest or to do with the profit. For example, when the business is settled up at the beginning of the business year, they have to ensure that will stick to the budget plan and even if there is a month that they did better that the expected does not meat that have turned up to break even.
Having a profitable business does not meat to have a lot of customers and to make money, it is about monitoring of the money, the budgeting and how they are spending. By monitoring the business budgets you will always know what to do in future, like to invest in the business or to cut some of the costs, as well are you making profit or you are losing money. That way the owners can prevent of unnecessary expenditure. There are different ways that every business can monitor their business, such using program that they can enter all the income and expenditure, to see what are their fixed, variable costs, the income and the expenditure, that is called “break-even chart”. The chart shows how high or low are going all the cost and where is or will be the break-even point. Break-even point is when all the expenditure equals the income money, so the business it is not on profit but also it is not on lost.
