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Investigating Business Resources

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Introduction

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.

Middle

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.

Conclusion

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.

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