Human resources: this is needed in the business and is also monitored because if some stuff isn’t doing their 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 can pay off their bills as well. Physical resources: this may be necessary if the business has to have publicity for example need to have a branch. More customers are likely to join your firm, if you have a branch and by this the finance will increase. In a business computer systems will also be needed as this speed up things and any calculations that the business has. The importance of breakeven for controlling budgets
In my opinion by using breakeven for the dog home business is an advantage because it isn’t complex to do and the results are presented fast and another advantage of breakeven analysis is that it does not cost to make it. By using breakeven analysis it shows the business how many dogs are still needed to be sold before the dogs home reach their investments. Breakeven then can summarize what the businesses profit is going to be with the remains. Some small businesses don’t think of using breakeven analysis because the calculations are not too big and because they estimate their data. 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, Sainsbury’s and Asda, they might consider using the breakeven analysis because they are around the UK and they need to know about their turnover for the financial years. Are budgets really necessary?
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 money. By setting budgets it will let the business gain what they want in that certain amount and it is likely for some fund to be left over in order for it be spent on other investment. If small business it is important for the business to show that they have a budget if they have a big client, they would try to get as much out as possible. Why may budgets not be that useful?
Budgets may not be that useful because they may not worry an organisation because if the businesses want products in a great quantity and know that the business is selling the product quickly then they would buy as much of the product as they can and they know that they are making a profit. Another reason why it budgets may not be useful is, that when a business has a budget the reason for this is that they want money left over to do further investment. The business may realise that at the end of the month or 2 by setting a budget and saving money that the money that they saved could rather have gone to buying larger quantity of the product with a cheaper price because that money was no use to them. In the restaurant business are these things any use to the...