P3 - With examples, you are to describe the main physical and technological re-sources required in the operation of your selected organisation.
In this assignment I am going to be describing the main physical and technological resources required in the operation of Next clothing.
Next is a British multinational clothing, footwear and home products retailer headquartered in Enderby, Leicestershire. It has around 700 stores, of which 597 are in the United Kingdom and Ireland, and around 200 are in continental Europe, Asia and the Middle East.
Physical resources are resources that are available to a business in the form of buildings and other machineries needed for the day to day running of the organisation. Physical resources are the resources that are made by man through his abilities and skill. The buildings, technology, and many more products that are made by man is an example of physical resources.
Buildings and Facilities
All businesses need premises in which they work on, this can range from a living room to a supermarket. For some businesses the appearance of the business is vital as this is what attracts customers to the business but for other businesses for example, the Virgin Media head offices do not need to look aesthetically pleasing as customers do not go there. In the same way Next have warehouses to keep their stock in which do not need to look appealing as this will not be seen or used by their customers. On the other hand they sell their products in their stores and so without this physical resource the business would not be able to run. Next have a range of stores in the UK, where these buildings are located are essential because they have a strong impact on the people that work there and the customers also, having businesses in strong economic areas is a great advantage to the business.
Materials and Waste
The materials that are used at Next vary as they make shoes, clothes, bags and home ware. When using these materials Next need to ensure that they try to avoid wasting materials this is because it decreases costs and is helps the environment, to ensure this Next recycle material. Any extra waste created has to be collected by waste companies which can increase costs therefore they try and minimise all waste to increase profits.
Plant and Machinery
Next use various machinery and equipment in their business, they use tills to process transactions which is equipment used in the business. They also use baskets for customers to put their products in and CCTV to ensure safety within their stores. Next have automatic doors with alarm systems to prevent theft which is an example of another equipment and machinery used within the business. It may be easier and more effective for Next to lease some of their equipment as this proves to be cheaper.
Insurance and Security
All buildings that Next have, have security. A fee is paid each month to an insurance company which protects their buildings in case anything happens to it. Some of the things this covers is: * Flood damage * Earthquake damage * Fire damage * Theft
Next also have a few other types of insurance which they need to protect employers in case they get injured and it’s not their fault. Security is fundamental as it protects the business at hand. Next also use CCTV 24 hours a day 7 days a week in their stores, this decreases the chance of any theft and if so can be used as evidence in court it is also used to back any claims for insurance that has been made against the company and increases safety furthermore, it protects the business and its stock. In regards to security, Next have set up fire exits, fire extinguishers, smoke/fire alarms which are compulsory not only to ensure safety but to meet health and safety guidelines.