BTEC Level 3 Extended Diploma Business
Unit 2 – Business Recourses
Task 2 – D1
Author: Anis Bashir
Student Number: 151620
Supervisor: Russell Yates
Personal Tutor: Shabnam Shaheen
TABLE OF CONTENTS
This report will identify, describe, explain and evaluate how the management of human, physical, technological and financial resources of a selected business. Furthermore how the effective or defective management of those resources can affect the operation of the business as a whole, whilst clear examples will be given with each resource. Additionally how the management of the budgets for each resource will affect the performance of the organization.
The organization that has been chosen is Toyota as they have major physical, human, technological and financial recourses whilst having great management and budgeting to keep things in place.
The effective management and controlling budget costs of the business resources are a fundamental aspect of running a business. They can help to manage the cash flow, productivity and performance of an organization.
2. Controlling Budgets & Costs
There are multiple amounts of recourses in an organization; the amount recourses available to an organization will depend on the size of the specific organization. However these recourses require closely controlled budgets and minimal costs to allow them to perform at their maximum efficiency inevitably allowing the business to improve their overall performance both in the short and long term.
Toyota is a multinational automaker operating at a global scale employing over 300,00 employees and owning a vast amount of physical recourses however as previously said these recourses are going to require great budgeting to allow Toyota to perform well in the long term.
By controlling the budgets on all recourses Toyota is able to allow each functional department to function at their maximum efficiency however under stringent budgets which will allow Toyota to control their main costs and keep them a minimum this will allow Toyota to invest in other areas of their business such as investing more cash in research & development for a new technology for one of their vehicle models or a new vehicle as a result of the close control in costs through budgeting Toyota is able to benefit from these cash cut-backs in long term as they will have more cash to play with through research & development allowing them to create the product more towards the target market consequently having a high chance of increased sales in the long term; inevitably increasing the performance of Toyota in the long term.
Though there are some problems when budgeting and controlling costs, the main problem with budgeting and trying to minimize costs is that Toyota could over-budget one of their departments when trying to reduce costs to a higher extent e.g. marketing department as a result of this, the marketing department will be unable to market their products efficiently due to the lack of cash to spend with therefore in the long term when one of Toyotas product is launched the target market will have little or not enough knowledge of the product therefore can reduce there long term profits of Toyota. However to overcome the problem of over-budgeting Toyota will need effective management with the different departments to know exactly how much each department will need yearly and work with each department to understand where some costs can be decreased as a result of this there will be a lower chance of over-budgeting due to Toyota understanding how much each department will need.
3. Human Recourses
The human recourses of a organization is one of the most important recourse available therefore they will need effective management and an efficient budgeting plan to...
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