BTEC Level 3 Subsidiary / Diploma, Business Studies

Unit 2 – Business Resources

Assignment 1 (P1, P2, M2) – Recruiting the Right Staff

Scenario

You are coming to the end of your BTEC course and you have been considering getting a job in the summer break before you start university. As well as earning some extra money, you are looking forward to the opportunity to develop your skills and put into practice the knowledge you have learnt on your BTEC course.

Task one (P1 part)

Research some jobs that you can apply for on job websites. You could look at www.monster.com or www.totaljobs.com. You need to find a job that you think you could apply for either now or at the end of year 13. You need to collect a job description, person specification and application form as evidence. (P1 part)

Task two (P1, P2 M2)

To show that you understand the relevance of these documents used in recruitment you need to complete an information sheet which analyses their contents (see attached for template). Your information sheet should

1. Describe the recruitment documentation used for the job you have chosen. What is a job description, what is a person specification and what is an application form? How are they used in business? (P1)

2. Identify the skills required on the job description. Describe how you have these skills or if you don’t have them, describe how you could develop them this year. (P2)

3. For each of the skills that you have already identified, explain why these are important to the organization. The explanation you have given must be linked to the actual position you are applying for. (M2)

Deadline
BTEC Level 3 Subsidiary / Diploma, Business Studies

Unit 2 – Business Resources

Assignment 2 – (P3, M1, D1) The Physical and Technological Resources in a Business

Scenario

The organization you applied to have been impressed with your suitability for the position and have invited you in for the first round of applications. They are concerned that at a young age you may be unaware of what really goes into the running of a business, particularly the need for and the management of physical, technological and human resources. They would like you to prepare a presentation and report to take with you to the interview showing your understanding of these resources in a business.

Task one - The Presentation (P3)

Using South Island School as a case study, take photos of the main physical and technological resources in the school. Include examples from the following categories

Physical • Buildings and facilities • Materials and waste • Plant and machinery • ICT equipment • Planned maintenance and refurbishment • Emergency provision • Insurance • Security

Technological • Intellectual property (designs, drawings, text, music, video) • Accumulated skills and experience • Software licenses • Protection via patents and copyrights

Add the photos with a description of each to your presentation. (P3)

Task two – The Report (M1, D1 part)

Still using South Island School as a case study, investigate how human, physical and technological resources are managed to improve the performance of the organization.

How does the school measure performance?
How does the school manage human, physical and technological resources to improve performance?
Explain how this management improves resources.
What would be the consequences be if the actions were not taken?

Evaluate how managing resources and controlling budgets can improve the performance of a business.
What is good about the ways in which the school manages its human, physical and technological resources?
What is bad about the way in which the school manages it human, physical and technological resources?
Overall how well do you think the school manages its resources?

Deadline

BTEC Level 3 Subsidiary / Diploma, Business Studies

Unit 2 – Business Resources

Assignment 3 (P4, P6, M4, D3) – Finance and Budgeting

Scenario

You have decided to take a short course in accounting to support your learning on your Business course and to improve your employability skills. One of your friends Paul has asked you for some advice on accounting as he have decided to set up his own hairdressing business.

Task one – Sources of Finance (P4)

First of all, Paul needs some guidance on the financial support available for starting a new business. He also requires advice on how they might obtain funds in the future for expansion – perhaps as a limited company. In response, you decide to put together an information pack. As an introduction to the pack:

1. Research the sources of finance available from local banks, building societies and other financial institutions. You may also consider any grants or allowances that are available from central and local government or internal sources such as personal savings. (P4 part)

2. Describe these sources of finance and how they may be accessed. Provide screenshots where available. (P4 part)

Task two – Budgeting (P6)

Paul is also concerned about the financial management of his new hair salon. He knows very little about the costs and budgets involved in the running of the salon and would benefit greatly from some proper advice and guidance. With this in mind, you decide to put together some information on costing and budgeting using an existing hair salon called Headliners (see appendix 1). You will show this to Paul at a forthcoming meeting. The materials should include

1. A break even chart for Headliners Hair Salon (P6 part)

2. An analysis of the budget information for Headliners Hair Salon. List any problems you can see? What remedies would you suggest? (P6 part)

Task three – Consequences of Poorly Managed Budgets (M4, D3)

Paul has been very grateful for the support you have given him. He is surprised at the difficulties that have been experienced at Headliners Hair Salon. He is keen for more information and have asked you to provide further detail on the causes of the problems at the salon and how you feel these problems could have been overcome. Add the following to the information pack you prepared in task two;

1. Look through the budget, break down the elements of the budget, determine why the problems exist and what issues this will create for the hairdressers. (M4)

2. Evaluate these problems, make final judgments on what the problems are and give some recommendations as to what they can do to try and solve the problem. (D3)

Task four (D1 part)

Now that you understand how budgets are used as a means of exercising financial control in a business, consider the advice that you would give to South Island School. Add to the report that you created in assignment 2 an evaluation of using budgets in South Island school. Consider

• How having budgets would help them improve their performance. • How having budgets would hinder their performance. • Overall what recommendations would you make to South Island School regarding budgets?

Deadline
BTEC Level 3 Subsidiary / Diploma, Business Studies

Unit 2 – Business Resources

Assignment 4 (P5, P7, M3, D2) Measuring Business Performance

Scenario

Paul has been delighted with the help you have given him and word has got around to your other friends. Your friend Michael is considering opening up his own Motor Business and would like your advice. Using an existing business as a case study was very effective when you were helping Paul with their his salon so you have decided to use Wansbeck Motors to support Michael. (see appendix 2)

Task one (P5, P7, M3)

In the form of a report you will create an analysis of the profit and loss account and balance sheet of Wansbeck Motors. Include the following;

1. An description of the contents of the profit and loss account and balance sheet for Wansbeck Motors Ltd. This will give them a better understanding of the meaning of the contents. (P5) 2. An illustration of the financial state of the business using ratios. (P7) 3. A detailed explanation of what the results of the ratios mean in terms of the financial position of Wansbeck Motors over the two year period. Include your workings to demonstrate how you arrived at your answer. (M3)

Task two (D2)

All this is new to Michael, and although he finds your report very interesting and enlightening, he feels that he needs to know a little more about the relevance of the information and how it can be used to make important financial decisions. He is looking to access funding from a bank to start his business. He would like you to help him prepare a briefing paper that he can take to his next meeting. In the paper you should include;

1. An introduction to the accounting ratios used in part 1 (D2 part) 2. An evaluation of the use and adequacy of the accounting ratios as a means of monitoring the financial health of the business. (D2 part) 3. Examples of key ratios to illustrate the overall trading performance of the business. (D2 part)

Deadline Appendix 1 – Headliners Hair Salon

Headliners break-even information

Headliners Hair Salon are launching a beauty treatment and need to know how many treatments they need to sell in order to break-even. The following data is available:

Variable production costs

▪ Direct materials – ₤2.50 per unit ▪ Direct labour – ₤5.50 per unit ▪ Variable overheads – ₤1.00 per unit

Planned selling price – ₤15.00 per unit

Fixed overheads specific to the new product - ₤10,000 pa ▪ Calculate the break-even point and produce a break-even graph

What effect would the following changes have on the break-even point? : ▪ An increase in direct material costs to ₤3.00 per unit ▪ A reduction in selling price to ₤14.00 per unit ▪ An increase in fixed costs to ₤11,000 pa ▪ A decrease in variable overheads to ₤0.75 per unit

Sales Budget for Headliners Hair Salon

|Month |Monthly budget |Cumulative budget |Actual monthly |Actual cumulative |Cumulative Variance |
|January |10, 000 | |8,500 | | |
|February |10,000 | |9,000 | | |
|March |12,000 | |10,000 | | |
|April |12,500 | |10,500 | | |
|May |13,000 | |11,500 | | |
|June |15,000 | |13,000 | | |
|Total | | | | | |

Cost budget for Headliners Hair Salon (see below for breakdown)

|Month |Monthly budget |Cumulative Budget |Actual monthly |Actual Cumulative |Cumulative Variance |
|January |11,250 | | | | |
|February |6,250 | | | | |
|March |5,750 | | | | |
|April |8,250 | | | | |
|May |7,950 | | | | |
|June |7,450 | | | | |
|Total | | | | | |

• Breakdown of cost budget for Headliners Hair Salon

|Month |
|Balance Sheets as at 31st December (000s) |
| | |2006 | |2007 |
| | |110 | |115 |
|Fixed Assets | | | | |
| | | | | |
| | | | | |
|Current Assets | | | | |
|Stock |120 | |125 | |
|Debtors |45 | |50 | |
|Bank Balance |20 | | | |
| |185 | |175 | |
|Current Liabilities | | | | |
|Creditors |90 | |100 | |
|Bank Overdraft | | |10 | |
| |90 | |110 | |
|Net Current Assets | |95 | |65 |
| | |205 | |180 |
|Less Long-term Liability – Bank Loan | |50 | |60 |
| | |155 | |120 |
|Financed by | | | | |
|Share Capital | |50 | |50 |
|Retained Profits | |105 | |70 |
| |155 | |120 |

|Wansbeck Motors Ltd |
|Trading and Profit and Loss Accounts 31 December |
| | |2006 | |2007 |
|Sales | |700 | |800 |
|Less Cost of Sales | |450 | |600 |
|Gross Profit | |250 | |200 |
|Less Expenses | | | | |
|Wages |60 | |65 | |
|Rent and Rates |15 | |16 | |
|Light and Heat |10 | |11 | |
|Advertising |6 | |5 | |
|Insurances |9 | |10 | |
|Directors’ Salaries |25 | |27 | |
|Sundry Expenses |5 | |6 | |
| | |130 | |140 |
|Net Profit | |120 | |60 |