BUSINESS RESOURCES

Table of Contents
Introduction......................................................................................................................................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 cont act 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 to
jointhemagic@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 persons 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
someones 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 owners 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.

Introduction
Every 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
Finance
Internal 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
companys 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 companys 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
finance
Although 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 dont 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 cant take steps to correct the problem if they dont 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.
Conclusion
Savings 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
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and Safety Executive, 1997) ISBN 0717612767
2. Holman P and Snee D The Improving Efficiency Pocketbook (Management Pocketbooks,
2000) ISBN 1870471776
3. Institute of Leadership and Management Controlling Physical Resources (ILM Super Series),
4th Edition (Pergamon, 2002) ISBN 075065886X
Mason R Finance for Non-Financial Managers in a Week (Hodder Arnold, 2003) ISBN
0340849622