Level Business
To find out how much the business is making or losing you have to subtract the total revenue with the total cost, it will give you a figure number hat you will be able to identify whether the business is making profit or not. By monitoring the business, shabbier will be able to have a long term view of his loss and profit made during the year or some months, this is important because he will be able to control costs and find out when the business will start making profit.
Without producing a budget, shabbier could be working towards nowhere, he would not know whether his business would make profit or go into debt. If the business do not get enough money in order to pay its expenses, shabbier business could close down. However, Shabbier prepared a budget with all his expenses and income, it will be easier to help the owner of the business. This chart above is related to the budget, it is possible to find the information of the budget on it, for example, the blue line represents the total revenue, the grey fixed cost and the yellow total cost.
The grey line (fixed cost) doesn’t change direction, it Is one line straight, it is because those figures numbers do not change, the blue line is the total revenue, it represent the profit the business is making, and the total cost represent the variable and the fixed cost together, when the blue line meets the allow line it will be the breakable point. At the break even the business won’t be making loss either profit. Since then, after those lines meet, it will the business’ margin of safety.
Individual Task Essay 4(d) Evaluate how managing resources and controlling budget costs can improve the performance off business. (ODL) Intro – example Definition Examples How they are being managed and how they can help improve the performance of the business. What happens if you don’t have it If they do have, how is it going to improve the performance of the company. E. G. ; profit Personal opinion Introduction equines uses, for example, the Physical, Human, Technological and Finance Resources.
I will also explain how those resources are being managed inside Tests and how they can improve the performance of the business. Physical Resources Physical Resources are resources in a business which can be touched and feel, it could anything machine or equipment that business could use in order to produce a product or deliver a service. There are loads of different Physical Resources, for example, in a business that make sales, you will find few different Physical Resources, such as tables, chairs, cashiers and others.
In Tests, Physical Resources are used to help employees to make sales and offer a faster and better customer’s service. For example, building is a physical resource that the business will use to be able to sell their products, and the business will be more visible by customers, it will could help the business to get more customers and make more sells. If the business do not have a place to work, no one will know that a business is located there and people would not come around and make regular purchases.
The business will look for companies that supply building services, to be able to have good quality building. Those companies should provide services such as refurbishments, and repainting the building every year, by doing that Tests will be able to maintain the business’ building in a good state. When businesses have a clean and new place to work, more customers will come to the business, and that will lead customers to spend their money knowing that it is a place that provide clean products in a clean place.
However, if the business do not keep the building always clean and in good conditions, the business could lose customers, it could affect the business to lose money. It will be harder to business make more sales if the company do not have certain physical resources such as machinery, vehicles and others. In this case, Tests will not be able to make any sales at all, if they do not have a certain place or a building that they could be selling their products.
For example with a vehicle, Tests could offer services online, and reach more customers in their own houses, it could help the business to reach and get more customers, make more sales and profit. Human Resources Human resources are there to take care of employees, it is different than physical sources, for example, if a machine breaks, they business could Just replace by throwing the old one away an buying a new machine, however, business cannot treat company cannot Just tell the employee that he’s fired, they have to give him a warn during a certain period of time.
The human resource department is there to take care of the employees, the department’s main duties is to provide any service that the employee may need, the department has also the duty to control the employees of the business, this department controls whoever is fired or is being hired. In Tests, employees will also get support from the Human Resources, there certain different ways that the HER can support employees in order to keep up with the hard work.
For example, the department could hire someone that can monitor team/ employees, it could help employees to work under pressure and achieve deadlines on the right time, and it is good because if employees work under pressure, they will be able to finish the work on time, help the business to achieve deadlines and aims and objectives. Another way that HER department uses to keep employees up with the hard work, is y offering incentives, such as prizes, surprises and others.
For example, if employees are not working hard enough to help the business, the HER could offer those incentives to the best employee of the month/year. It will create a competition environment between employees and it could also help the business to maintain a good customers services. By having those two examples of Human Resources above, the business could improve in their services and the way the treat their employees, it could lead the business to achieve their aims and objectives such as maximize profit, get more customers and improve their customer service.
Technological Resources Technological resources are the computer programs and any technological service that a business use in order to deliver quality Job, those resources could be software, texts, or music that are in a computer system. Those types of resources can be considered in four main ways intellectual property, accumulated experience, software license and protection via patents and copyright.
Software license are the license that the business has to pay in order to be able to use the software. Tests has many computers within the business that need different hypes of software to be able to work in the business, for example, the cashier, it is a computer that must use software to be able to work out how much the customers is spending and keep record of the money that is coming and going out of the business.
Business will look for people that has had experience in certain area, for that, the employees should show their skills and experience that they have acquired in the previous Jobs, the person would have the right skill and experience for the company, up time instead of using this time to teach the new employees what their duties are. If an employee does not have a certain skill that will be needed in the Job, the company could give out to its employees few small lessons in order to them to acquire their skills and gain more experience to deliver a better service.
The company should give training to its employees, so they will be able to understand what the company really want from them. This would help Tests to improve their services in terms of customer’s services and ‘CT, because after those small course/ lessons offered by them, employees would be able to get more knowledge and work as the company requires. Financial Resources Budget is a financial statement that involves all the records of the money that comes in and goes out of the business, many business produce their budgets in order to create a general idea of how much the business will be spending every year.
This document is very useful for businesses, and it can be done in different ways. In a business there are several different types of budgets that has different department/ area the business has to make. For example, in a business, you can find the sales and revenue budget (a financial document that set out the business expected sales and venue from selling its products or services), the expenditure budget (financial document that sets out the expected expenditures of a monthly basis on those items) and the profit budget (financial documents that sets out the predicted profit that a business could make).
In a business, the owners/departments should create and manage their own budgets, for example, in Tests, there are several departments, and every one of them has their costs, when creating a budget for every single department the business will be able to find out the total outcome of the each department. At the end of the edged, when adding all costs from all the department, the company can manage to work out how much profit or loss they will be making during a certain amount of time.
This type of budget is called the expenditure budget, business can use it to have a general idea of how much the business will spend at the end of each month or even a year. If the company do not produce this kind of budget, the business will not know how much the outcome of the company is. The profit budget is there to set out the predicted profit the business will make during a period of time, for example with this budget, Tests will be able to predict he business’s income of the year or months.
The business will also be able to understand what and how much the business could make as soon as they sell their services or products. The revenue budget will help the business understand how many sales and revenue they will need to make in order to start making profit. A revenue budget is essential capital expenditures. If the business do not create the company’s budget, the business will not be able to understand and manage their own expenses and income, if for example Tests do not manage their balance they could lead to failure of the company by not paying the right expenses that are in need.
