BUSINESS CONSULTANCY

Akhtar Esmail Adam J35081

Task 4 (P3)

Sources of Finance available to Joseph Chamberlain Sixth Form College

There are two types of sources of finances namely internal sources and external sources. Internal sources of finance can be from savings or profits however external sources of finance can be from outside the business such as banks, shares etc

There are many different sources of finance available generally however it depends on the actual business type. For JCC the sources of finance available to them are as follows:

Banks – banks are able to offer loans, business accounts, commercial mortgages and overdraft facilities based on the business plan. Interest is payable based on the predicted risk. Some security will need to be provided, e.g. assets such as college premises.

Overdraft - an arrangement with the bank where a business will be able to borrow more money from its bank than is actually in their account. JCC does not need to use this service as it has to pay interest on the amount they go overdrawn.

Trade credit – when a business sells its goods and then allows the customer to pay at a later date. Goods have to be paid for within an agreed time limit. JCC do use the trade credit source of finance as they purchase the resourses such as stationery and computers.

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Overdraft - an arrangement with the bank where a business will be able to borrow more money from its bank than is actually in their account. JCC does not need to use this service as it has to pay interest on the amount they go overdrawn.

Trade credit – when a business sells its goods and then allows the customer to pay at a later date. Goods have to be paid for within an agreed time limit. JCC do use the trade credit source of finance as they purchase the resourses such as stationery and computers.

Factoring – when a business sells off its debt to another company. JCC might use this source as they would have got the capital at the time they want they don’t have to

Retained profit - profit that is made is kept back to help finance future plans.

Bank loan – an amount of money borrowed from the bank usually for a stated purpose – i.e. to buy something for the business. The loan is usually for a fixed time.

Sale of assets – selling off and turning into cash something which the business owns. The assets which are sold may not be needed any longer by the business.
Lease – a method of obtaining items for a stated period of time. At the end of the lease the item has to be returned to the owner. Useful when expensive machinery is replaced regularly

Hire purchase – a system of obtaining items in return for a monthly payment over a given period. The item does not become the owners until the last payment is made

Grants - an amount of money usually made available for a specific purpose by the government.

Owner’s investment – the existing owners of the business may invest more money.

Mortgage – a very long – term method of borrowing money which requires some security.

Share issue – limited companies and release shares for people to buy to raise money.

Debenture – another type of loan but is secured against an item that is worth a lot of money as security.

BUSINESS CONSULTANCY

A definition of human resources :

"The people that staff and operate an organization"; as contrasted with the financial and material resources of an organization. Human Resources is also the organizational function that deals with the people and issues related to people such as compensation, hiring, performance management, and training. A Human Resource is a single person or employee within your organization. However as I interviewed the HRM of JCC Mr Robert Lumb he said

“The effective and the efficient management and development of all staff in an organization to successfully meet its business goals”

How staffing is managed to meet changing business demands : Staffing is managed in different ways however in Joseph Chamberlain Sixth Form College staffing is managed in a different way since every business organisation have different aims and objectives. Moreover staffing in JCC is very well selected. As before the job is advertised the head of department have a meeting in which they will outline what qualities they need for the staff. The HR will outline the job description and the personal specification which will then be advertised in the Evening mail which cost them £4000 four a quarter A4 page. However when they advertise vacancies for the Principal they use Specialist magazines such as the times and the guardian which costs them £15,000 for two weeks of advertising. Once they receive the applications they start the first step by short listing them and they read it for only 30 seconds if it makes them interesting and more realistic they will continue to read it otherwise they do not read it because they have a lot of applications to look at which the time is short.

Once the shortlist procedure is finished they call the applicants for an interview in which cases sometimes the head of department or the assistant principal interviews as well with the HRM.

They judge the applicant by how they present themselves and look for their experience and achievements.