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Unit 2 M4 Essay

Satisfactory Essays

In this final section I will evaluate how managing resources and controlling budgets can improve the performance of a business.

Businesses do control their resources closely, this is because:

Human resources: this is needed in the business and is also monitored because if someone isn't doing his/her work correctly then they are likely to be replaced with someone that is better. If the business is to expand then the business needs to employ staff with certain ability that will benefit their business.

Financial resources: businesses have to monitor their finance because they need to insure that they have enough money in order to buy products and to pay their employees. They then also have to make sure that they have enough money so that they …show more content…

They would usually get the product that will sell in a lot, they buy the product in quantity in order to get it cheaper and insure they are saving enough money from every unit that they sell. People that own the property don't get concerned about the rent and they mainly focus on making the profit by selling a unit.

Major organisation like: Tesco they might consider using the breakeven analysis because they are the biggest around the UK and they have big competition like Sainsbury’s so they need to know about their turnover for the financial years.

Budgets are necessary in every business whether the business is small or large. A small business that has just of 2 people working will set themselves budget for example; for this financial year the business needs to spend £60k and want £80k of a turnover. Large businesses will also do the similar however as it's a large business they rather spend in millions and not in thousands or hundreds so in order for them to receive cheaper priced units and have a larger turnover. It is essential for a business to set themselves budgets so for any other investments or back up they have some additional

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