2 P3David OZUO 52517
Unit 2 – P3 Describe the main physical and technological resources required in the operation of a selected organisation
-------------------------------------------------
Ayo Afolabi
-------------------------------------------------

a) Explain what is meant by resources and give examples
All organisations have physical and technological resources that they own that need to be carefully managed.
Physical resources are the resources that an organisation needs to maintain in order to carry out its activities. Physical resources include the organisation’s buildings and machinery and the maintenance, insurance and security of these resources.
Technological resources include the physical equipment and designs and drawings. It also includes things like software and music, which are also owned by the organisation.

b) Explain the difference between physical and technological resources and give examples.
Physical resources
Physical resources are the resources that the business needs to maintain in order to carry out its activities. This includes buildings, equipment, maintenance and insurance.
Buildings and facilities – all businesses need buildings to operate from. This could be a shop, office or someone’s house. The type of building can be very important to some businesses, such as famous buildings in London for financial companies. These companies will want to impress clients by having excellent facilities within the building, such as reception areas and meeting rooms. However for some companies the look of a building is not important, such as Tesco’s home shopping service – this is run out of huge warehouses which customers never see inside of. The location of buildings is important too. If as many customers as possible are able to access it, the company is more likely to be successful. Also if a building is located centrally, it will be easier to distribute its goods to more areas.
Materials and waste – different materials are needed depending on the type of business. An office based business will need stationery, desks and computers. A factory may need metal and paint. Businesses must be careful about how much materials they use so that they try to reduce waste as much as possible. This will keep their costs down and will help the environment.
Plant and machinery – each business has specific requirements of what plant and machinery it needs. Some businesses spend thousands of pounds on factories and machinery but others find it is more cost effective to lease what they need.
Equipment including IT – equipment is essential for a business to run smoothly. It is essential for profit and not-for-profit organisations. If a job lacks the necessary equipment, you might not be able to carry the job out. For many businesses, IT equipment is essential and this includes hardware and software. Some traditional businesses also use IT to support and enhance their methods of working.
Planned maintenance and refurbishment – all buildings, plant and machinery will need some sort of maintenance regularly. Factories have to make sure their machinery is working properly as otherwise the equipment may break down, even if they operate their machines 24 hours a day.
Emergency provision – The Health and Safety Work Act 1974 requires organisations to draw up policies and provisions for what should happen in the event of an emergency in a building. Fire alarms must be provided to keep people safe plus fire extinguishers to put a fire out if there is one.
Insurance – Every building used by businesses must have insurance. If the business owns the building it will arrange cover itself but if it is leased, it is often arranged by the landlord. A fee will be paid each month, then protection is given in case something happens. Insurance could cover leaking pipes, storm damage, theft, vandalism or collision by vehicles.
Security – A building must be safe and secure even when the employees have gone home. Some businesses employ full time staff to patrol the building. Other organisations use security cameras and alarms. There are now schemes where businesses and police work together to keep buildings secure.

Technological resources
Technological resources are not just equipment. It is also things like designs, drawings, music and software. These resources also have to be managed by the organisation, and they can significantly help a business survive and grow. The internet is a good example of a technological resource as it can help businesses contact customers and it will be a lot easier to meet deadlines and get jobs done. The main areas of technological resources are:
Intellectual property – this allows people to come up with their own ideas and have rights concerning what happens to their ideas such as how they are used and if they allow them to be copied. There are 5 different types of intellectual property. These are: Designs, Drawings, Text, Music and Video. These are all covered by the Copyright and Patenting Law.
Accumulated experience and skills – If the business keeps people in their job, the level of experience in the business can grow. These employees are more likely to be able to do a good job. People that have shown more loyalty and gained a lot of experience might feel that they should get paid more and be given special conditions. Organisations have to be careful not to create a situation where only one person can operate a piece of machinery or fix a software program. If this person leaves the job, it can be difficult to find a replacement so it will be hard to maintain the resource.
Software licences – Many businesses invest a lot of money in software. Sometimes software is developed for a specific purpose. Other times a company will use someone else’s software and pay a licence fee to use it. The licence may also allow employees to have the software installed on their laptops at home. If businesses do not buy a licence, they are breaking the law. Some businesses could be over-licenced as they may have a number of different departments that have bought software individually.
Protection via patents and copyright – Legislation helps businesses to protect technological resources. It can be difficult to prove if someone has taken your idea and used it. Patents and Copyright law can help protect your ideas. The Patent gives the inventor the legal rights to stop someone copying their work without permission. It helps to ensure new ideas can be given time to be developed and manufactured once the idea has been registered with the UK Intellectual Property Office.

c) Research and provide an outline of the main physical resources required for successful operations of Tesco plc.
Tesco has a large number of physical resources that are needed for their operations to be successful.
The main physical resource is its buildings. Tesco currently has over 3,500 stores in the UK, and these range from large Tesco extra stores to smaller local Tesco express stores. Tesco also owns other buildings that are required for successful operations such as warehouses to store all its stock and offices to run the business from.
Within the stores, Tesco also has many physical resources that are all needed alongside each other in order for Tesco to be able to operate. Examples of this equipment are shelves, checkouts, trollies, fridges and freezers.
A very important physical resource required by Tesco is its stock. Tesco must manage its levels of stock well in order to get the most profit. If it has too much stock, they will end up creating a lot of waste which will have to be thrown away and this will reduce profits and affect the environment. If there is not enough stock, customers will not be happy and may decide to shop elsewhere.
There are also lots of facilities provided in its stores such as restaurants, toilets, escalators, lifts and cash machines. All these help to make shopping easier and more enjoyable for customers.
Other physical resources outside the store are also important. These include car parks which make shopping much for convenient for customers. Tesco install disabled parking spaces close to the entrance so these people do not have to walk so far. Lorries and vans are also a physical resource – these can be very large lorries that move stock from warehouses to stores, and also smaller vans that deliver orders to individual homes.
IT equipment is also a very important physical resource for Tesco. Computers are used in many areas of the business. They are used in store and in the warehouses to monitor stock, they are used at the tills to check what people have bought and to allow them to pay, and they are used in the offices – e.g. the payroll department will use computers to ensure the staff are paid correctly and on time.

d) Describe each of the main physical resources outlined above and state how each of them contribute to the success of the business (i.e. why they are important and how they help to meet specific objectives of the organisation)
Buildings – these are one of the main physical resources for Tesco. Tesco has over 3,500 stores in the UK, plus warehouses and offices. By ensuring their stores are modern, it will encourage more customers to do their shopping there and more employees to want to work there. By investing in stores, Tesco aims to increase its profits. If their stores are not welcoming, customers may decide to shop elsewhere.
Facilities – Tesco has a huge range of facilities in its stores, a few examples are shelves, checkouts, trollies, fridges and freezers. These are all essential in the operation of the store and without them the main function of the store would not be able to be carried out. There are also facilities such as restaurants, toilets, lifts and escalators and cash machines that help to improve the shopping experience for customers. Having lots of facilities in one place is very convenient and will ensure the customers return again and spend more money at Tesco. In their large stores, Tesco also usually provide free car parks which include extra facilities such as disabled parking and mother and baby parking. This helps to make shopping more enjoyable as it makes it much easier for people with disabilities. It will encourage more people to shop there and help to increase profits.
Stock – This is a very important physical resource for Tesco. By managing its stock well and ensuring they have the items that their customers want to buy, they are more likely to make a profit. Tesco want to be able to offer customers the best products at competitive prices, so will need to get the right stock and the right quantities to do this, otherwise customers may decide to shop elsewhere. If they order too much stock, they will have to throw some away – this will waste money and will affect the environment. If there is not enough stock, customers will be annoyed and many shop elsewhere.
IT equipment – Tesco would be unable to operate without IT equipment. Without tills it would be very difficult to check what people have bought and charge them the correct amounts. This information can be fed back to other computer systems that monitor levels of stock, and the IT equipment is used to ensure new orders are placed with suppliers when new stock is needed. It would be very difficult for Tesco to keep track of all this in such a large organisation without modern IT equipment. IT equipment is also used to coordinate the distribution of goods around its stores all over the country. This helps improve productivity which should increase profits and provide shareholders with good returns on their investments.
Security – Tesco employs security staff in each of its stores and warehouses. Some have the responsibility of patrolling the buildings when they are closed (e.g. at night) to reduce the likelihood of theft and vandalism. Other security staff work in stores to help to stop shoplifting. Tesco also have other security such as CCTV and alarms. All this security costs money, but it is hoped that it will save Tesco even more money by reducing crime.
Maintenance – this is very important, as regular maintenance has to be carried out on Tesco’s buildings and equipment to make sure everything is in good condition. Buildings must be maintained to keep them safe and to make them welcoming for customers and employees. Badly maintained buildings could become dangerous and staff and customers could get hurt. If equipment is not well maintained, it is likely to break down. For instance, if Tesco does not maintain its freezers and they stop working, all the food in them will be wasted. This will cost Tesco a lot of money and will reduce profits and they will not be able to offer their customers the products they want.
Insurance – Tesco must ensure they are fully insured in all their business operations otherwise they will be breaking the law. They must have both Employers Liability Insurance in case any of their employees have an accident that leads to injury or death. They also have public liability insurance in case they have to pay members of the public for injuries or damage that has happened as a result of Tesco’s operations. Tesco will also have insurance to protect themselves from damage to buildings or equipment, theft, vandalism or vehicle accidents. Without all these insurances, Tesco could find they have to pay out a lot of money and they could be breaking the law. This would damage their business and reputation.

e) Explain how well managed physical resources can help to improve Tesco’s performance with specific examples (examples must be from your personal research about Tesco)
Tesco must manage its physical resources effectively in order to improve its performance.
A good example of this is with its distribution centres. Without a good distribution network, stores will not have the stock they need on its shelves and this will mean that customers are not happy. Tesco therefore invests a lot of money in this area and has 28 distribution centres across the UK. They use these centres and the latest IT equipment to move 60 million cases of goods to 3,000 stores every week. This ensures customers get what they need. It also ensures that stock is monitored carefully and helps to reduce waste, which in turn saves money and increase profits.
Another example of managing its physical resources effectively is with its security. Tesco take protecting its business very seriously. By investing in the latest technology and equipment (such as CCTV cameras), Tesco security teams are able to help prevent loss from theft and also damage to its buildings. This helps to save money overall, so this money can be used to pay for other things such as improving stores and keeping prices low for customers. Ensuring the business is as secure and safe as possible will also help improve the area for the local community, which will have a positive effect on Tesco’s image.

f) Research and give an outline of the main technological resources required for successful operation of Tesco plc
One of the main technological resources is Tesco having their own website. This is a very important technological resource because people can shop online as well as in the store. If there is bad weather such as snow, people will still be able to shop online. Also, the elderly will find this easier as they will not have to leave the house. Many people will want the convenience of shopping online as it saves time.
Another technological resource is the scanners that are used at the checkouts. These are used to read the bar codes on all the products as customers buy them so Tesco can keep up to date with stock levels. There are different types of scanners – those at the staffed checkouts, the self service checkouts and also the hand held scanners that customers can use to scan as they shop. These give customers several different options of ways to shop.

g) Give a description of each of the technological resources outlined above and state how they contribute to the success of the business. (i.e. why they are important and how they help to meet specific objectives of the organisation)
Website – The website is used by Tesco to provide information about all the products and services that they offer to their customers. It also allows customers to place orders online and either have their order delivered to their home or collect it in store. Some people will find this very convenient e.g. if they are busy or if they are disabled and find it hard to get out. It gives customer another option of how to shop with Tesco, so is likely to attract more customers.
Scanners – these are the devices that read the bar codes on products at the checkouts. They are an important technological resource for Tesco as they have the function of checking what people have purchased so the cost can be totalled, they can monitor what has been purchased and this information can be passed to the stock control system to help monitor stock levels. They also give customers the choice of how they want to pay for their goods – they can be served by a member of staff, or they can serve themselves at the self service tills or with the hand held scanners as they shop. All this makes the customers hopping experience better.
Software – Stock control system – without this Tesco would not be able to manage its stock levels. Tesco needs to ensure it orders its stock from its suppliers at the right time. It must then make sure it distributes the stock to the stores when their levels of stock are becoming low. It is also able to monitor sell by dates to ensure stock is made available to be sold in time. This helps to reduce waste and will save costs. Having enough stock available to customer is also important to the success of Tesco.
Temperature controls on fridges and freezers – this is needed to ensure the cold and frozen food is stored at the correct temperature in Tesco stores and warehouses. If the food is not correctly stored, it will not be suitable to eat so Tesco will not be able to sell it. This will have to be thrown away and the wasted food will cost Tesco money. If they do try to sell it they will not be meeting food hygiene and safety laws.
Accumulated experience and skills – experienced employees are very valuable to Tesco as they help to provide the level of service that Tesco wants to provide for its customers. They are also able to help train new staff which again will help to provide customers with the best service possible.

h) Explain how well managed technological resources can help to improve the performance of Tesco plc using specific examples.
Well managed technological resources can help to improve the performance of Tesco.
Having software for a stock control system helps to improve Tesco’s performance as it allows their stock monitoring process to be more organised. Being able to track what stock has been sold helps them to know what stock they need to buy. It also helps them to know what products customers like to buy so they can use this information when they buy from their suppliers again.

i) From your previous activities, provide clear explanations of the following:
What is meant by human resources
Human resources are the people that work for a business – the employees. Human resources are anything that relates to people in the business, including recruitment, allocating staff to departments and training. Employees need to be carefully and sensitively managed and it is important to treat them appropriately as they are protected by legislation. Tesco employ over 300,000 people in the UK.
Why human resources are important to a business
It is very important the right people with the right skills are recruited to a business, as without the right people it may not be possible to carry out the functions of the business. If there are not enough staff working for an organisation, then some tasks may not get done. It is also important that staff are working to the best of their ability so the business is able to use their skills well. It is important to make sure that a business has the right number of employees – too many staff will cost the business a lot of money and will reduce profits, but not enough staff could mean that work is not carried out properly and this could also affect profits.
How human resources should be managed and how the effective management of human resources can help to improve a business.
Managers can use incentives to encourage employees to work harder. For example they may pay bonuses or increase an employee’s salary. Managers may also give employees some time off or let them leave work early on certain days if their performance has been good. All these incentives will make the employee feel valued and they are more likely to work harder for the business.