All businesses need to control their budgets but especially large businesses for example supermarkets such as Tesco.
They also have a very good reputation and are also a highly profitable business. They need to keep track as on their financial progress and situation. As well as this keeping organized and in a formal structure allows the company to run smoothly and without major problems.
Controlling Budgets allows the company to not fall into financial trouble. It must estimate and predict its income and expenditures and revenue using data from previous activities from the company in the past and prepare for future trends. To make a reliable budget you will need to correct research and data.
As the company has been running for many decades they have plenty of data to make a valid budget. Research can be done easily as they have a massive amount of employees and can afford to spend money of high quality research.
Subway spends and receives large amounts of money each year so it is imperative that they control how much they spend and how much they aim to bring in.
The controlled budget will let the company see if it has the financial resources to expand and make more chains. As well as this The budget sets out how much each department has to spend.
For example the research team will be given a certain amount of money each quarter or year to spend. They have this to stop departments over spending which could cause them to lose profit. Another way controlling budgets improves business performance is by reducing the amount of waste that subway produces, as waste food is effectively wasted money.
Allow me to explain. Each store gets a certain amount of materials delivered each week. This is mainly food. If a store uses more food than it should then the company knows about this and it will send more.
This could because their is food getting wasted or because their is a high demand of a certain product. When head office is notified with this information about an over supply of materials it will investigate this to sort out the problem which will save money.
This could include sending a senior member of staff to a store to give additional training in waste management so the employees stop wasting as much food. This will cost the company as it is more training but over time it will save them money so they will make a higher profit.
This is an example of an improved business performance. Managing resources Their are four types of business resources. Human resources need to be managed so the staff can feel motivated and produce a higher quality product.
Firstly is Physical resources Their are many physical resources in subway stores. These are mainly the equipment and tools that are used when processing and making the sandwiches.
Each member of staff should manage the equipment by regularly cleaning the equipment and the managers should make sure they are fully functional and fix and problems with them or call in maintenance if something is faulty.
If say a microwave is not kept clean there can be built ups of rust and decay which damages them and they will have to be replaced. This will then cost the company money so by managing the physical resources it will not reduce profits therefore increasing the business performance.
It is important that subway have inductions and training for employees when new equipment and machinery is in placed in store. This will allow the employee to gain more knowledge about the resource and be able to use it effectively.
Another way that managing the cleaning of equipment will improve preference is that it will increase the hygiene of the final product this will therefore mean that more customers are happy with their food and the business will sell more sandwiches. A problem with managing physical resources is that it may take extra time and money to train staff in the correct cleaning procedures.
Even though this may cost a bit more with the extra training it is definitely worth managing the physical resources in subway as the equipment is very expensive and the company can not afford to replace faulty or broken equipment. This is why it is imperative that it lasts for as long as it can.
Next is Human resources Human resources is basically just employees. Subway is heavily reliant on its human resources to keep the business profitable.
It is essential for them to manage human resources as employee performance directly affects the performance of the business. Subway can mange their human resources through training and regular appraisals. Doing these will improve the development and effectiveness of the employees which will then improve the business performance.
If is is not managed them some staff may get bored and also lose track of he correct procedures and pick up bad habits.Below is an essay on "D1: Evaluate How Managing Resources and Controlling Budget Costs Can Improve the Performance of a Business" from Anti Essays, your source for research papers, essays, and term paper examples/5(1).
Apr 07, · I am going to evaluate how managing resources and controlling budget costs can improve a business’s overall performance.
I will evaluate the effects of human resources, technological, physical and financial resources that have on a business’s overall performance. D1 – Evaluate how managing resources and controlling budgets can improve the performance of Asda.
It’s important for Asda to manage all its resources and control its budgets to be successful.
Managing resources and budgets gives Asda more structure and stability leading to high performance and success. Managing the resources of an organisation and looking closely at its budgetary control is absolutely vital in business.
It improves performance over every department and gives the business management team a clear view on where they can expand and develop in the future.
Oct 07, · D1, Managing resources and controling budget costs can improve business performance October 7, mcbrideeeeeee 10 Comments It is very important for a business such as “subway” to manage their resources and control their budgets as the business is very large and has a number of chains in the UK.
Apr 07, · I am going to evaluate how managing resources and controlling budget costs can improve a business's overall performance. I will evaluate the effects of human resources, technological, physical and financial resources that have on a business’s overall performance.