BUSINESS RESOURCES

Table of ContentsIntroduction......................................................................................................................................3

Task 1.1: Describe the recruitment documentation used in a selected organisation.......................3

Task 1.2: Describe the main employability, personal and communication skills required when applying for a specific job role........................................................................................................3

Task 1.3: Assess the importance of employability, and personal skills in the recruitment and retention of staff in a selected organisation.....................................................................................3

Task 1.4: Describe the main physical and technological resources required in the operation of a selected organisation........................................................................................................................4

Task 1.5: Explain how the management of human, physical and technological resources can improve the performance of a selected organisation.......................................................................4

Task 1.6: Evaluate how managing resources and controlling budget costs can improve the performance of a business...............................................................................................................5

Task 2.1: Describe sources of internal and external finance for a selected business......................5

Task 2.2: Interpret the contents of a trading and profit and loss account and balance sheet for a selected company. Illustrate the financial state of a given business................................................5

Task 2.3: Interpret the contents of a trading and profit and loss account and balance sheet for a selected company explaining how accounting ratios can be used to monitor the financial performance of the organisation......................................................................................................6

Task 2.4: Evaluate the adequacy of accounting ratios as a means of monitoring the state of the business in a selected organisation, using examples.......................................................................6

Task 2.5: Illustrate the use of budgets as a means of exercising financial control of a selected company...........................................................................................................................................6

Task 2.6: Analyse the reasons why costs need to be controlled to budget......................................7

Task 2.7: Evaluate the problems they have identified from unmonitored costs and budgets.........7

Conclusion.......................................................................................................................................7

References........................................................................................................................................7

Introduction Business resources are anything and everything that helps a company operate and do business. This can include the use of human capital, natural resources, tangible resources such as property or production machinery, intangible resources such as brand image and knowledge, financial resources and anything else a particular business may use to make a profit. Every business resource used to produce goods or to serve customers has an economic value.Business resources includes Human, financial, physical, and knowledge factors that provide a firm the means to perform its business processes.

Task 1.1: Describe the recruitment documentation used in a selected organisation.

Before a business starts recruiting new employees the human resources department compiles a job description and person specification for the specific job they have a vacancy for. The job description gives potential candidates a taste of what is expected of them in the job. The job description is also used after the vacancy has been filled to ensure that the job is being carried out properly

Job Purpose Summary

To support the Category Manager and Assistant Merchandiser administratively ensuring optimum accuracy to enable the range/stock planning process and product development process to run smoothly. To ensure other functional teams are supported when requiring information/samples from the Buying & Planning team and to be the point of contact for the Category for external suppliers alongside the Category Manager.

Key Responsibilities and Accountabilities,

Range Planning

To issue and collate all branded supplier range templates to create an accurate range plan as instructed by the Category Manager

To liaise with the Far East sourcing office to ensure all Own Brand range plans are populated with accurate product and cost information, as instructed by the Category Manager

Product Development

To be the central coordinator for Own Brand packaging development including liaison with agencies, Category Managers, Hamleys Asia, QA and suppliers to ensure timely approval and issuing to printers

To be the point of contact for receiving information and requesting follow-up from prospective suppliers, as decided by Category Managers

To support Category Managers with competitor shopping and market research as required

System Maintenance

To set up, manage and maintain all SKU and supplier information on the IP system ensuring all data is accurate

To set up, manage and maintain accurate cost and selling price files for all stores

To set up and maintain all SKU data and price files for concession and consignment partners

To accurately input price amendments into IP upon instruction from

Person profile

Demonstrates standards of excellence,

Excellent inter-personal skills,

Smart & presentable appearance,

Professional and logical approach to problem solving,

Demonstrates a high level of professional integrity,

Strong initiative and self – motivation,

Determination to succeed with a ‘can do’ attitude,

High levels of enthusiasm and energy,

Maintains a positive frame of mind in all circumstances,

Innovative and creative,

Ability to work to deadlines,

Flexibility in approach to work,

Promotes personal credibility through working productively,

Works independently with effective time management,

To seek and handle both positive and negative personal feedback,

To show a willingness to learn and self-develop.

Specific Job Skills:

Numerate, literate and highly articulate

Customer Focus

Strong written and verbal communication skills

Personal & Business effectiveness

Commercial Awareness

Analytical Thinking & Decision Making

Taking initiative independently

High level of organisation

Following & Improving Business Processes

Computer skills:

PC literate – good knowledge of Excel & Outlook

Task 1.2: Describe the main employability, personal and communication skills required when applying for a specific job role.Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job descriptions are written statements that describe the: duties, responsibilities, most important contributions and outcomes needed from a position, required qualifications of candidates, and reporting relationship and co-workers of a particular job. Job descriptions also include information about working conditions, tools, equipment used, knowledge and skills needed, and relationships with other positions. A person specification can outline the educational requirements, training experience as well as more personal qualifications that a candidate must possess. To apply for a position at Hamleys,the candidate needs to send your CV and a covering letter tojointhemagic@hamleys.co.uk.Employability Skills

Employability skills are different to the technical skills that are required to carry out a job role.

Employability skills are important throughout your working life, but especially at the very

beginning of it. This extract looks at the employability skills for the hair and beauty sector, but

these skills are transferrable across all industry sectors.

Introduction

When you first leave school or college, the only skills a prospective employer will be able to make

a judgement on will be your employability skills. This is because you will not, at this stage,

have developed the job-ready technical skills and knowledge. This is what the employer will

help you with during your training.

The hair and beauty sector is unique in the vast range of skills that are required from individuals

who work in any of its industries. While the six industries are quite different, there are many

employability skills that are common to them all. Therefore, it does not matter if you work in

hairdressing, barbering, on African type hair, in nails services or spa therapy, the employ ability

skills are all the same.

Identified employability skills

The important employability skills, which have been identified by employers in the hair and

beauty sector, are:

communication

willingness to learn

self manager

team work

customer care

positive attitude

personal ethics

creativity

flexible working

leadership

 

1. Communication

Having good communication skills is probably the most critical of all the employability skills. In

Chapter 6 ‘Communication and client care’, you will see that communication is more than having

the ability to hold a conversation. In the hair and beauty sector, verbal, non-verbal and what is

known as physical communication are all equally important.

Whichever industry in which you work in the hair and beauty sector, you will have to work with

clients. All the industries rely on repeat business. Clients are only likely to return for treatments

and services if they have enjoyed their experience.

2. Willingness to learn

The knowledge and technical skills you will develop to work in any of the industries in the hair

and beauty sector can take a great deal of time to learn. When you first begin your training, you

may think that you will never be as good as the experts in the industry, as some technical skills

are very difficult.

However, if you are have the drive and determination to practise and study, then you will find

that you can overcome the difficulties. You will not be able to learn the skills in just one week, not

in just one month, or in just one year. And, even when you have completed your initial training

and can work on clients, you will have to keep updating your skills for the rest of your working

life. People who work in the sector say that this is one of the reasons why they find their jobs so

interesting - they never get bored.

3. Self manager

When you work in the hair and beauty sector you will spend a great deal of time on your own

with a client. The client is totally dependent on you to ensure that the treatment or service they

have requested will be carried out within the expected time, safely and competently. In addition

to this, you may have more than one client at the same time. But, even though you may have

two or even three clients, they all need to feel that they have your undivided attention. To be

able to do this you require the skill of self management - you have to manage your time

effectively.

Being a self manager will help you to overcome difficulties and setbacks as you will develop the

ability to self assess. This means you will be able to identify what the problem is and then plan

and implement a solution to overcome the problem.

4. Team work

You may have noticed if you have visited a busy salon or spa, that there are a number of

different people who look after you on your visit. You may have been greeted by a receptionist. A

junior stylist or junior therapist may have prepared you for the treatments or services that were

carried out by a senior stylist or senior therapist. At the end of your visit the receptionist may

have booked another appointment for you. This is just one example of team work. Each person in

the salon or spa is working with others to ensure that clients have a pleasurable experience.

Working in a team means that the business runs efficiently and profitably.

Team work is also about having respect and consideration for, and empathy with, others.

5. Customer care

Have you ever been kept waiting for an appointment without knowing why? Have you ever

experienced or witnessed poor service in a shop, restaurant or salon? How did you feel? Perhaps

you felt uncomfortable or unhappy. However you felt, it is unlikely that you would return. Client

care is very important. Without clients in the hair and beauty sector, you would not have a job at

all. Client care can be anything from providing a full treatment or service to simply asking if the

client is comfortable, or offering to make them a drink. By doing this you are demonstrating that

you have respect and consideration for others and that you have social awareness and

sensitivity.

Client care is one employability skill that is linked to many of the others. For example, you cannot

achieve good client care if you have poor communication skills or there are members of the salon

team who do not work well together.

6. Positive attitude

To succeed in the hair and beauty sector you need to have a positive attitude. The training is

long and sometimes difficult. You will have to deal with clients who may not always be as polite

as you. Therefore, you need to demonstrate that you are patient, tolerant and have a good sense

of humour.

7. Personal ethics

Working in the hair and beauty sector means that you will come into direct contact with clients,

on a personal level. Once a client gets to know you, and builds up their trust in you, they

sometimes talk to you about very sensitive subjects. Anything that a client tells you must remain

confidential. You must never tell others about the personal conversations you have with your

clients. You must be sensitive to their needs and respect their privacy.

Personal ethics is also directly related to your work ethic. The hair and beauty industry is a

service industry. Therefore, you need to demonstrate that you are honest and reliable.

8. Creativity

Being creative is a major advantage if you want to work in the hair and beauty sector.

Hairdressing in particular is very much related to the fashion industry and; like clothing, is

subject to change. Seasonal collections are developed by leading hairdressers. These collections

are often a prediction of what the hairdressing fashion will be in the following year.

Being creative does not mean that you have to be an artist who can draw and paint. It can be the

ability to see form and shape, to visualise in three dimensions and to be brave enough to

experiment with different types of colours and media. It also means that you are innovative and

have the ability to inspire others.

9. Flexible working

The hair and beauty industry is not a nine to five job. You will not be able to finish work at exactly

the same time every working day. Your work cannot end until the client is finished. You will not

be able to have weekends off and you may be expected to work in shifts, which can include

working in the evenings. This is particularly true of the spa industry. Spas operate seven days a

week from early morning to late evening - often because they are attached to hotels, holiday or

leisure complexes. You may also find that some times of the year are much busier than others.

For example, working in a hairdressing salon at Christmas time is very busy as people want their

hair doing for the party season.

Being able to demonstrate flexible working means that you have the ability to multi-task. When

working in a salon or spa, you may often have more than one client to deal with, or have a list of

instructions to carry out on behalf of a more senior member of staff.

10. Leadership

There are many opportunities in the hair and beauty industry for those with the ability to lead

others. You do not have to wait until you reach management positions to demonstrate this. Some

leadership is required right at the very beginning of your training. For example, you need to

demonstrate that you have dedication to learning, and to carry on learning continuously.

Leadership is also about seeking new challenges and solving problems. When working in a salon

or spa, you can encounter problems. You need to be able to develop the skills to deal with

problems and identify how to solve them.

Testing questions:

1. Why do employers want people who have good employability skills?

2. How can you develop employability skills?

3. Which three employability skills are most important for the Hair and Beauty industry.

Justify your choices.

Extension work:

Write down an example of where you have demonstrated each of the employability skills. You

may have shown these in your work, your studies or what you do in your leisure time.

Now produce a personal CV based on employability skills.

Rank your employability skills in order of what your best at down to those you feel need

developing.

Task 1.3: Assess the importance of employability, and personal skills in the recruitment and retention of staff in a selected organisation.Importance of employability is to refer a person’s capability for gaining and maintaining employment. For personalities, employability depends on the knowledge, skills and abilities they possess, the way they present those assets to employers, and the context e.g. personal conditions and labour market environment within which they seek work. As such employability is affected by both supply side and demand side factors which are often outside of an individual's control.

Task 1.4: Describe the main physical and technological resources required in the operation of a selected organisation.Physical resources are resources that are available to business organisations in the form of buildings and other machineries needed for the day to day running of the organisation. Buildings and Facilities: All businesses need buildings which they control from, this can range from someone’s front room, or tower blocks all over the world, buildings play an important role in the image of a business and can influence different types of customers, many financial institutions such as banks and maintain links with clients in person as well as online. The location of the building is important when a business considers its distribution network, if a business locates nearer to a place which is very accessible to as many customers as possible, its profits will increase. Plant and Machinery: A business may spend thousands of pounds on its factory and machinery by buying everything that is needed for. Equipment including I.T: Equipment is so important for a business to operate efficiently. Insurance: All buildings owned or leased by businesses must have insurance. A fee is paid each month then protection is given to the business in the event that something happens to or within the building such as; Floods; Damage to any equipment; Theft from the building; Vandalism; Leaking pipes; Collision by vehicles.Technological resources are more than just equipment; they are things like software, music and text.

Task 1.5: Explain how the management of human, physical and technological resources can improve the performance of a selected organisation.

Human Resources Human Resources are the people (employees) in the business. Monitoring employees makes sure that they are carrying out the job tasks correctly. Employees in the stores are likely to think that they could get bonuses and rewards if they perform to the best of their ability. This is the best way to promote performance from the staff and encourage more positive outlook in the workplace. Observing employees punctuality makes them to keep up with their attendance and be punctual. Physical resources are the things that business uses to complete its activities every day in the store, for instance, buildings and equipment. Technological resources are things such as computers with its software such as Microsoft Office.

Task 1.6: Evaluate how managing resources and controlling budget costs can improve the performance of a business.

Business resources are Human, financial, physical, and knowledge factors that provide a firm the means to perform its business processes. It is significant for Innocent to manage their resources, failure to do so could essentially lead to the business becoming liquidated.It involves implementing resource management procedures and controls and can include managing costs and maximising opportunities. Managing financial resources will be key for Innocent as it will allow them to identify what financial resources are available now so that they can make the most out of the resources they have available and what is required in the future, this will then enable them to prioritise these resources against objectives and goals. This process will improve the performance of the business as it will ensure strategic goals and budgets are realistic and achievable while maintaining some flexibility. They also need to use budgets to ensure that they have generated enough revenue at the period when they have to pay back the loan with added interest.

Task 2.1: Describe sources of internal and external finance for a selected business.Internal source are usually from inside of the business organization which are often preferable to any organization as they will usually be cheaper and perhaps easier to arrange. However, the potential of arranging large amounts of finance may be lower than expected. The Internal sources might be: Personal saving mainly applies to sole traders and partnerships. Owner investment, this is the money which comes from the owner’s own saving. If a business needs to make more finance and can't internally, they may seek external sources of finance. There are two main types of this, loan capital and share capital. The most common way to receive loan capital is through borrowing from a bank. This can be in a form of an overdraft or loan and is more often than not set over a period of time.

IntroductionEvery business requires funds to operate. A company may need money to expand its business, buy assets, pay wages, or pay its debt. Others may need funds to cover the cost of unforeseen events such as accidents or natural disasters. The difficulties in obtaining these funds constitute one of the major challenges in running a business. The two major sources of business finance are internal and external funding. This paper examines the differences between internal and external sources of finance. It will also examine the advantages and disadvantages of each source.Internal sources of FinanceInternal source of finance refers to funding generated within the business as opposed to financing obtained from outside sources. Internal funding can be obtained from retained earnings, sale of assets, depreciation, reduction or control of capital.Retained earnings: These are profits left over after a firm has settled its debts and paid out dividends to shareholders. The leftover funds can then be ploughed back into the business. The advantage of this method is that there is no borrowing cost associated with it. The firm has total control over the decision to use the funds and is not subjected to any vetting by lenders. The disadvantage of using retained profits as a source of funding is that the company may not have cash readily available in times of urgent need (Timimi, 2010).Sale of asset: The sale of assets is another source of internal financing. A business may choose to sell some of its assets to generate cash to finance its business needs. These assets could be in the form of patents, real estate, art work, equipment, or machinery. Although this strategy may work in the short term, it may cost the company more in the long run. In times of urgent need of cash, a company may be tempted to sell its assets below market value thereby recording more losses for the company (teachersnetwork.org).Working capital: Proper management of working capital can generate extra funds that can be used to finance the needs of the business. Working capital is comprised of cash, marketable securities, accounts receivable, and inventory. A good financial manger can generate extra funds for the business by accelerating its account receivable process or by delaying payment of its debt. This strategy frees up funds that can be used to meet the company’s financial needs. For this strategy to work, the financial manager must know how to appropriately use and manage working capital (teachersnetwork.org). Depreciation: Depreciation is another strategy employed by firms to generate funds for the business. Overtime, fixed assets such as equipment depreciate in value due to wear and tear. Depreciation is usually considered an expense on a company’s balance sheet. Under the U.S tax laws, firms can write down the value of depreciated

assets. The additional funds obtained from the depreciated item can be used for investments or other endeavors (investopedia.com).External sources of financeAlthough a company makes profit from sales and would prefer to use internal funds to run its business, the earnings may not be enough to meet the financial demands of a rapidly growing business. The company must therefore look for external sources of funding. External sources of finance include bank loans, overdrafts, trade credit, factoring, leasing, hire purchase, mortgage, shares issue, and venture capital, just to name a few.Bank loans: Bank loans could be medium or long term source of finance. With this method, businesses borrow money from a bank at a given interest rate over a set period of time. The advantage of financing through bank loans is that repayment is spread over a long period which is good for budgeting. The disadvantage is that it could be costly since the business is required to pay interest on the loan. The business may also be required to provide security before obtaining the loan (bized.co.uk).Overdrafts: Bank overdrafts allow businesses to spend more than what they currently have in their checking accounts. It is a fast and easy way to acquire funds for the business. Banks, however, usually set a limit as to how much an account can be overdrawn. The advantage of using bank overdrafts is that they are flexible, cheap, and easy to arrange. The company pays interest only on the amount overdrawn. The disadvantage is that banks require the funds to be paid within a short period of time. This makes it difficult to use this method to finance long term assets (Timimi, 2010).Trade credits: Businesses with limited capital may resort to trade credits as a means of financing their inventories. This method involves an arrangement between the business and the supplier whereby the business defers payment for goods and services for a later date. The purchaser is usually given 30-60 days to make the payment. The disadvantage of this method is that failure to pay the debt could taint the credit profile of the firm making it even more difficult to acquire loans in the future (investopedia.com).Factoring: Factoring is another strategy employed by businesses to raise short-term financing. It is the fastest way to convert credit into cash. With this method, a company sells its account receivables to a third party (the factor) at a discount rate. Companies that cannot obtain financing through conventional means see this method as the fastest way to generate cash. The advantage of factoring is that the firm is not subjected to rigorous credit verification that other lending institutions demand. Factoring is not a loan but a sale of invoice, and thus is not expected to be repaid. Although not a loan, factoring can be more expensive than a conventional

loan. The factor negotiates discount rates taking into consideration the risk of not being able to recover all the debt. This ends up being more costly to the firm than obtaining a bank loan (entrepreneur.com).Leasing: Companies that don’t have enough funds to acquire equipment or machinery upfront may choose to lease instead. With this method a business makes an arrangement with the owner of the asset to use the asset for a set fee. Payments for the rented equipment are based on the terms of the lease. Assets such as equipment or machinery are usually very expensive and so by choosing to lease instead of buying them the company can free up funds that can be used for other endeavors (Dickerson et al, 2000).

Task 2.2: Interpret the contents of a trading and profit and loss account and balance sheet for a selected company. Illustrate the financial state of a given business.Using the profit and loss account and balance sheet explain the highlighted features of the account include Sales; Cost of Sales; Gross Profit; Net profit. Identify and explain any worrying features of the profit and loss account above. Using the balance sheet explains the following terms mean in a balance sheet: Fixed assets; Current assets; Liabilities; Debtors; Creditors. Identify and explain any worrying features of the balance sheet

Task 2.3: Interpret the contents of a trading and profit and loss account and balance sheet for a selected company explaining how accounting ratios can be used to monitor the financial performance of the organisation.

Ratios are based on financial statements which are summaries of the accounting records. Through the summarization some important information may be left out which could have been of relevance to the users of accounts. The ratios are based on the summarized year end information which may not be a true reflection of the overall year. Organization can lose information that could have been very important for the business. This can lead them to loss. Interpretation of ratios is important for the businesses specially a large organization.

Task 2.4: Evaluate the adequacy of accounting ratios as a means of monitoring the state of the business in a selected organisation, using examples.Purposes of Financial Ratios: Ratios provide a means of comparing the performance of a business; Compare performance of businesses in the same or different industry; Predict future business performance. Financial Ratios: relationships determined from a company's financial information and used for comparison purposes. Financial Ratios: Profitability Ratios, Liquidity Ratios, Efficiency Ratios. Probability Ratios show whether a business is making profits and if yes then whether this profit is at acceptable level. Profitability Ratios: Gross profit margin percentage state how much gross profit is being made in relation to sales. Net profit margin

percentage indicates how much net profit has been made in relation to sales.  Return on capital employed percentage shows how much returns achieved in relation to capital employed.

Task 2.5: Illustrate the use of budgets as a means of exercising financial control of a selected company.

Think about the different aspects of the business and consider how they would each be affected if costs were out of control. Consider; Employees, Suppliers, Stock, Profit Levels, Customer Service. To complete need to evaluate how managing costs and budgets can help a business to be more successful. Think about the following areas; increases in sales; increases in profit; increase in the customer base; increases in levels of customer satisfaction; increases in levels of employee satisfaction; reductions in labour turnover; increased efficiency in production/service provision.

Task 2.6: Analyse the reasons why costs need to be controlled to budget.Successful businesses set budgets to help them control costs - reason to control costs is to protect profit margins and achieve targeted profit/growth levels. Managers may not notice problems; Managers can’t take steps to correct the problem if they don’t know it exists; Paste in the Eco Clothing variance analysis and explain why it may be overspent in each area of adverse variance (refer to your completed handout). Reduced profits – problem; The need to replace/better train staff - problem; The need to source new material suppliers/renegotiate – problem; Pressure to increase prices – problem.

Task 2.7: Evaluate the problems they have identified from unmonitored costs and budgets.Budgets are useful to ensure have enough money available for all the things want to do, and a mechanism for making cost savings if haven't. Whether it is balancing the family budget - income against expenditure, or financing a building contract, many of the fundamentals apply. Need the information about what everything is costing to be able to work out whether making or losing money in the process. The penalty for loss is debt with suppliers; shops etc. potentially lose which is to repay debts. Declared bankrupt and then the courts would appoint to administer affairs.

ConclusionSavings are a good source of finance for a business, as interest does not need to be paid to someone else while the money is being used, and the business remains totally in eh control of the owner.

References

Mason R – Finance for Non-Financial Managers in a Week (Hodder Arnold, 2003) ISBN 0340849622

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