• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Investigating Business Resources

Extracts from this document...


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. ...read more.


Profit and loss account and balance sheet In this part I will give a real example and I will be explaining what each thing is. The company that I will use is Domestic Dog Homes that specialises in supplying pet bedding for dogs in a range of sizes for miniature to giant dog size. They also cater for all ages - from puppies to mature dogs. Domestic dog homes stock innovative items such as dog tents for owners who like camping and incontinence bed mature dogs which do not leak and can be washed ever day for a year. The company has a lot of competition, in particular from large companies like Wilsons and Pets at Home. However, due to specialist nature of their products, they are continuing to survive. Now they are interested in expanding their range to include brand new products from a leading designer which they feel will complement their current range. Before they take the plunge, they would like details of the state of their finances. The Trading and Profit and Loss Account of Domestic Dog Homes for the year ended 31 December 2007 (�) (�) Sales 81250 Less cost of sales: Opening stock 12700 Add purchases 18325 31025 Less closing stock 10300 20725 GROSS PROFIT 60525 Less expenses: Electricity 1451 Stationery 1526 Business rate 1845 Loan interest 3955 Advertising 2150 Sundry expenses 1205 12132 NET PROFIT 48393 The Balance Sheet of Domestic Dog Homes for the year ended 31 December 2007 (�) ...read more.


Here I will show what are the three ratios, how to calculate them and I will show with example. Gross Profit Gross profit % = x 100 Turnover (�60525 / � 81250)*100 = 74% Net profit Net Profit %= x100 Turnover (�48393 / �81250)*100=59% Net Profit Capital Employed = x100 capital employed To use that formula I need to know what my capital employed are=(fixes assets + current assets) - current liabilities. [�184.200(fixed assets) + �26975 (current assets)]- �206875 = �211175-�206875 = �4300, is my capital employed Now I will use the formula above: Capital Employed= (�4300 / �48393) * 100 = 8% Performance ratio That type of ratio shows how the business is performing, the stock and assets turn over, these are the equations: Average stock Stock Turnover = x365 Costs of sales I need to find the average stock, this I will do by adding Opening and Closing Stock together and dividing it by 2. (�18325 + �10300)/2 = �14312 is average stock Stock Turnover = (�14312 / 31025)*365 = 168 The result 168 shows how many days are left to clear the stock if the business makes same sales every day. Debtors Debtors Collection = x365 Creditor sales/total sales (�12100/81250)*365 = 56 => shows how many days it will take to pay back to the debtors Sales Assets Turnover = Total Assets �211175 / �81250=�2.5 =>shows how many pounds the business earns for every pound invested ?? ?? ?? ?? Investigating Business Resources BTEC National Business Anna Draganova ...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 Structures, Objectives & External Influences 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 Structures, Objectives & External Influences essays

  1. Btec National Business Level 3 Year 1 - Exploring Business Activity

    The specialists may need to be hired to manage important activities, such as marketing or IT. Some small businesses also contract out some of their functions. E.g. they might pay an accountant to produce the annual accounts - paying them for just a few days work.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    For example if there is a fault with equipment at Tesco the maintenance team will need to be contacted, and also the health and safety department to ensure that there is not a risk to anyone. The finance department will need to be informed so they can allow a budget

  1. Barclays Investigating a Business

    They have the global reach to provide world wide and meet the needs of their target market. Barclay's capital could appeal to a large number of governments, businesses and institutional clients worldwide as they already maintain an international customer base.

  2. Introduction to Business Assignment

    For example, as they operate in 6 different continents this will give them a broader range of companies and customers to target and sell to. > 2.4 Increase Market Share - The term market share is literally the percentage of a particular market from which a company owns over its competitors.

  1. P3, M2,D2 Managing Physical Resources

    the youth club to provide value for money and make sure the service the youth club is fit for purpose. So therefore, Muath Trust must not state misleading information about their club, e.g. the club has 3 snooker tables, and it really has 2.

  2. This is a detailed business report on Sainbsurys.

    Sainsburys has * Gain excellent quality and service- this way customers will want to come back and then become loyal customers helping Sainsburys to increase sales.

  1. Financial accounting

    paid 1,000 Debenture interest paid 800 Advertising 3,200 Sundry expenses 1,350 Directors' salaries 12,000 32,650 NET PROFIT 41,400 Less corporation Tax 10,350 Profit after tax 31,050 LESS PROPOSED DIVIDENDS: Preference shares 10,000 Ordinary shares 12,000 22,000 Less transfer to general reserve 14,950 7,050 Add retained profit from previous year 35,150 Balance of retained profit 42,200 Davies, Patel and Tsang.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    One way that Tesco?s gains customer research is through their Club Card. Tesco?s uses their innovative club card as an effective method to respond to their local customer needs and reward them for customer Loyalty and gain valuable information about their customers.

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