A2 Business CourseWork
AS Business studies Unit 1 - Investigating Business A portfolio investigating and researching the supermarket chain Tesco By Matthew Hampson Introduction: About the business: Tesco is a UK based international food and general retail chain. It is the UK's largest retailer by sales and market share, with profits exceeding £3 billion. On a worldwide scale it is the world's third largest retailer falling only behind Wal-Mart and Carrefour. Tesco was founded in 1919 by Jack Cohen when he started selling groceries on a market stall in east London. The brand "Tesco" first appeared five years later in 1924. The brand was formed when Cohen took the initials of T.E Stockwell and added the first to letters of his sir name (C.O) and hence the name TESCO was formed. The first Tesco store opened in 1929 in Middlesex. By 1947 the company was already on the London stock exchange. Tesco grew through the 1950s and 60s until it had more than 800 stores acquired, in the most part through the purchase of other retail chains. Tesco pioneered the "pile it high, sell it cheap" ethos, this was in the most part due to Jack Cohen's belief that this was the best way for the business to succeed. In 1964 Tesco signed up with 'Green Shield Stamps' to further entice customers, to the modern day family this revolutionised shopping. However Lord Sainsbury disagreed with Cohen's new idea and market
Btec Business Level 3 Year 1 - Introduction to Accounting
Pass one Introduction - In the section, I am working as a trainee for one of the retail company mentioned, which has been trading for many years. I have been asked to spend some time in the company's accounting department. In the purpose of accounting, there are many reasons why accounting is necessary to a business. Recording Transactions - Appropriate records are vital: if reports or documents are lost the Next store may forget to demand payment for some jobs that have been done or forget to pay bills that become due. It must be avoided at all costs because not paying your debts promptly or quickly is technically an act of bankruptcy or ruin. Monitoring activity and controlling the business - The recording of day to day accounts activities allows the Next managers of the organisation to keep track of orders, the sales and bills that means they must have a good idea of how business is doing well. The management of the business - Accounting records also helps the management of business and assist the board to make better decisions in dealing with investment. It is important to prepare accounting statements for Next managers to monitor the progress of the company and to endure day to day activities runs smoothly and proceed over activities. Measuring the financial performance of the business - Profit is the aim of the Next Store business and enjoyable accounting
Budgeting Techniques and Globalisation
.0 Introduction A budget is a quantitative of action plan or plan of action for the forthcoming period and also referred as forecasted financial statement or pro-forma financial statement (Das 2001). It is prepared for responsibility centres (may be a department or activity) (Das 2001). Das (2001) asserts that budgets are assigned to individuals and they are responsible and answerable for matters under their control. According to Das (2001), budgeting can be prepared in the following steps: . to set or to ascertain the objectives: the objective of the business have to be set so that the plans may be prepared to achieve those objectives; 2. to compile forecast: the forecast must be coordinated to become part of an overall plan. Forecasting requires gathering of information, and knowledge about the business and the external environment and the use of statistical techniques to prepare accurate estimates; 3. to consider limiting factors: decisions must be taken to minimize the effects or to amend them. The limiting factors must be kept in mind when determining the quantity which can be made or sold. The quantity determined must comply with the forecast and meet the objectives of the business. The plan is then made; 4. to prepare budgets: Budgets have to be coordinated with each other so that there are integration of plans, improved communication and operational
TO WHAT EXTENT HAS THE ROLE OF MANAGEMENT ACCOUNTING CHANGED ?
The Changing Nature of Management Accounting and the Emergence of "HYBRID" Accountants In the last few years, Johnson and Kaplan who are accountancy experts have debated over the extent management accounting is changing. They argued that management accounting it had not changed since the early twenties century as well as it had lost its importance for the purpose of informing manager's decisions. Furthermore, the environment in which management accounting is exercised has changed with progress in information technology, more competitive markets, different organisational structures and new management operations. Since the publication of Johnson and Kaplan various new accounting techniques have been developed, such as strategic management accounting and activity based costing. Where these new modern accounting techniques have not been widely used as it is shown in many surveys. This study emphasize on functions and expectations of these "hybrid" accountants who increasingly become part of the management team within a business process, and project implications for the professional accounting bodies and its members. This project was based at Manchester University (UK) and consisted of a questionnaire survey, a field study of 12 companies and 8 long term case studies. The project highlighted on two objects. Firstly, discovering whether management accounting has been too slow to
Business resources M3
Profitability ratios Profitability ratio measures whether a business is profitable and how much profit the business is making. Gross Profit margin The gross profit is the profit made by the business by just taking into account the direct purchases that the business made to get the goods to the customer. Formula Gross profit/sales revenue x 100 Working out - £657,500/£845, 500 x 100 Answer = 77.76 This means that for every £1 of sales revenue, £0.77 remains after all direct expenses has been deducted. This money contributes towards covering the other expenses of the business. Net profit margin The net profit is the profit the business has made after deducting the expense and tax. Formula Net profit/turnover x 100 Working out - £349.810/£845,000 Answer = 41.37% This mean that out of every £1 of profit the business makes the business keeps 41.3%. So this is a good figure has the business keeps 41.3 business makes a lot and this money would be invested back in stock. This suggests that if the business makes £349,810 of net profit form a turnover of £845,500 it will have a net profit percentage of 41.37%. So this means that the business makes a net profit of 41.37 percent after deducting all the expenses. Return on capital employed Return on capital employed measure the level of profit compared to the value of net assets invested in your business
Capital Expenditures
Capital Expenditures Capital expenditures have a significant impact on the financial performance of the firm; therefore, criteria for selecting projects must be evaluated with great care. Of the two corporations the firm is deciding to acquire, Corporation B is clearly the better investment as shown in Table 1 supported by the following data: net present value (NPV), internal rate of return (IRR), payback period, profitability index (PI), discounted payback period, and modified internal rate of return (MIRR) in addition to 5 year projections of income and cash flows. Decision Method Corp A Corp B NPV 20,979 40,252 IRR 3.05% 6.94% MIRR 1.79% 4.36% PI 8.39% 6.10% Payback 4.64 4.31 Discounted Payback 4.40 4.76 Table 1: Decision Method Results (See Excel Spreadsheet for details) The 5 year projections of both Corporations A and B's income statements and cash flows indicate that between the two corporations, Corporation B will maximize the firm's value the most. This decision is further evidenced by the net present value obtained for both corporations. NPV is defined as the sum of the present values of the annual cash flows minus the initial investment. If the net present value (NPV) of all cash flows is positive, the project will be profitable. The NPVs for both corporations suggest that both projects are worthwhile, since each has a positive NPV,
Purpose of Accounting
The Purpose of Accounting The core aim of a business is to survive and to make a profit in its life time. And give the Manufacture or service the reputation to live its business life. Business use different ways to use accounting to record transactions, Monitor and control accounting records and take appropriate actions, make management decisions to plan for the future and monitor and control those plans and finally measure financial performance (gross and net profits, and value owed to and by the business. Recording Transactions Businesses record transaction to sell what the business has spent by this I mean if an employee was asked to go and get more pens and paper from the local store as the next delivery time is in a few days and they are low on pens and paper now. So the employee would go down to the nearest store and buy the items that have been asked to be bought by the head of department. The employee would have to buy this out of their own money but the company will pay the employee back from what they have bought, the company would also want the receipt of the item purchased so that they can keep track of what they are spending on and where the money is going. So they will have records of any transactions that have been used and noted down. Sales of Invoice Sales invoice are used for receipt that has a connection between the buyer and the seller. It is a
Business and marketing benefits for the Bullring
Business and marketing benefits for the Bullring (www.bullring.co.uk) Business benefits * Global presence: The Bullring websites allows everyone to access it, local, nation and international. This benefits Bullring because it brings more people, more shoppers and more tourists. * 24 hour visibility business: Bullring website allows access to the site 24 hours; this benefits the Bullring this is because it helps customers search whenever they want. * Equality of presence between small, medium and large business: This means that the Bullring has an equal chance of competing with other online businesses, any shopping centre of any size can compete with the Bullring, and the Bullring can compete with other shopping centres. * Rapidly of response to customer interest: The Bullring can check if customers have an inquiry/ comment or even a complaint by checking on their website, they can also reply back instantly. * Opportunities to analyse online competition and keep up with competitors: The Bullring can check online competition and competitors by searching their website, to see what price their selling their products and if they got any offers to customers. * Offering delivery- to- door as a sales feature: The Bullring has a team that deliver items to customer's doors which they have ordered from their website. * Online order tracking: You can find out where your parcel is
Business resources P2
P2, Describe the main physical and technological resources that needs to be considered in the running of a selected organisation. Sainsbury is an organisation which uses physical and technological resources in order to run it business. Physical resources are resources which can be seen and felt which can be used by the organisations. Technological resources are resources which can be seen and felt as well also resources which can be seen and felt as well. Some of the resources include fixed asset. It is important for an organisation like Sainsbury to manage its resources well so that they can gain the maximum benefit of the resources. Also it is important for Sainsbury to manage its resources so that they use it effectively and smoothly. An organisation will not be much successful if they don't use their resources professionally and usefully. It is important for Sainsbury to manage it resources so it is maintained useful for over a period of time. The main physical resources of Sainsbury - Some of these resources are fixed and current asset * Staff * Equipment - fixed asset * Building - fixed asset * Security - fixed asset * Insurance * Materials - current asset * Vans - fixed asset * Products - current asset The functions and benefits of the staff are to run the organisation in an efficient and successfully approach. Moreover the benefits are to help the
Income Elasticity Of Demand Applied to Business and Consumers
Income Elasticity Of Demand Applied to Business and Consumers It is important to note that price is less of a consideration when income goes up. "Income elasticity of demand measures the degree to which consumers respond to a change in their incomes by buying more or less of a particular good." (McConnell and Brue, 2005, p.356). Income Elasticity affecting consumers A key determinant of demand is income. As the increase in income in general we buy more goods than normal and inferior goods. Income elasticity of demand They are defined as the percent change in the quantity (DQ%) percent more change in income (DY%) Ey = DQ% / DY% Unlike the price elasticity of demand that we take only absolute (positive number), income elasticity of demand May be negative or positive. A negative income elasticity means that the recipient is a good than good. A positive income elasticity of demand means that the recipient is a good means good. In addition, as increased income people generally spend the extra income on necessity items such as housing, food or transportation, but the pleasure or luxury goods. Hence, the need for goods generally have an income elasticity of less than one and luxury and fun items have an income elasticity of more than one. Example: A person's monthly income increased from $ 3200 to $ 3400. She spends a portion of its income on food by eating outside twice a
