Moreover the importance of profits to any business is that they need money to pay rents, insuranceand wages if the business makes no profit and more loss they may lose the shop because they cannot pay the rent. Also Shafal has six workers in her business so this means if Shafal doesn’t give the employees’ wages they may leave her business as well as take her to court. Most business has aims and objectives which are to make a profit so if any business doesn’t make profit they have not succeeded in their mission. Also importance of profit for a business
At this time they would need to provide cheaper price to attract their consumers and to increase the demand. They would have to reduce the number of staffs as it may become difficult to pay wages. This leads to rise in unemployment. During recession businesses also tries to get loan from the bank and the bank wants to see their financial statements and if they find out that the business is not capable of paying the money back then they won’t lend any money therefore, the business may have to find new way of catching customers attention. For instance, they may be able to start up with a new idea.
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
But if the amount left aside isn’t as much as the price of the building the business will have to use money from elsewhere. This will mean that another expense will not be paid. If the expense is not paid it will mean that the business will be in debt and the business will have to find a way to find more money or run the risk of going bankrupt. A way the business can do this is by getting rid of some of their members of staff to cut the amount spend on
6 Social Responsibility within Company Q Social Responsibility within Company Q Daniel R. Beckerman Western Governors University WGU Student #000322976 For any given business, the greatest potential for revenue growth can be found through a mix of focusing on providing for the shareholders, as well as thinking of the stakeholders as a whole. This means focusing past short term profits and creating a plan that demonstrates a measure of social responsibility. Business reputation goes a long way towards creating how large a company’s customer base is going to be, and giving the appearance of not caring about the community can lead to a loss of customers and a loss of additional revenue in the long run.
The vendor will be function in effort to make a profit as is with all businesses. The problems can come when the vendor needs to increase profit and since the contracts are normally a fixed price, the only way for them to do so is to decrease expenses. This is a viable option as long as they meet the conditions specified in the contract (Bucki, 2012). When outsourcing to another company, your organization is now tied to the financial well-being of the vendor. The problem can arise when after contracting out the IT functions of the organization and paying the fees negotiated, the vendor goes bankrupt leaving the companies who have contracted to them without an IT resource (Bucki,
TASK 3 Stakeholders Stakeholders are the people that are interested in the business. A stakeholder has a direct interest in how the organisation is performing as they are the one that have invested their money into the organisation. If the business does well then they will receive more money than they originally invested although if the organisation don’t perform to the best of their ability then the stakeholders will not be happy as the money they have invested is not being used properly and is being wasted. There are many different types of stakeholders such as, Employees, Government, customers, local community and suppliers. Employees are the people who work at the business.
Business Resources – D3 Possible causes of the cash flow problems Cash flow problems are a major cause of insolvency. Cash flow planning involves making sure that a business generates enough cash at the right time to meet pressing liabilities. A cash flow forecast is really useful for a business as it helps them to identify their inflows and outflows, however if it is not manages properly it may causes some problems which may affect the business and the way this is performing. Owner’s drawing Owner’s drawing is when the owner of the business takes money out of the business for its personal use. In our case study, the owner for Yo Retro has taken different amounts of money out of the business from January to June, however in the next six
A Change in the staffing and a rota in place would ensure managers have a full overview of what is happening and when. Threats A lot of food is wasted in this store and therefore a loss of profit. This could be focussed on in training and also by passing the Managers bonus on to the staff to get buy in from them. This would improve in a lot of issues and build on the relationship between staff and manager. The
Loss prevention and security is a matter that is very important to the store as for every time tesco loses money due to theft they try to retain their profit by increasing their prices and so to avoid situations such as this occuring the store puts in reinforcements such as security tags, security gates, security cameras etc. Having a security guard(s) at Tesco is a visible deterent to individuals who have the intention of stealing , they also provide proffesional protection of the stores items. Having a security guard in tow means they may control and observe the activites of individuals in store by patroling the store . Security cameras may be used to monitor any suspicious activity it may also prevent/ deter individuals from commiting crimes as they would be recorded, this is a permanent recording is used as proof once a crime is commited and will most likely unsure an arrest/conviction is made. A security company that works in retail is G4S they work to reduce the loss in stock some retail businesses may experience and provide a safer environment for not only customers but also workers.