Evaluate How Managing Resources and Controlling Budgets Can Improve the Performance of Tesco.

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D1- Evaluate how managing resources and controlling budgets can improve the performance of Tesco. It’s vital for Tesco to manage all their resources and control budgets in order to succeed as a business. Managing resources and controlling budgets gives Tesco more structure and stability essentially leading them to high performance and success. If Tesco fails to manage resources and control budgets then many problems could occur resulting in bad performance and failure of the business. Budgets must be controlled in order for Tesco to make a profit rather than a loss within their business. Tesco must use their past history to enable them to predict how well they’ll able to perform in the next month. Tesco must also plan ahead, for example, if they know that some of their part time staff will be leaving, they need to make sure they have money in their budget to cover costs for recruitment and also advertising to find more staff. Also if Tesco are know that they’ll be hiring more people within the business for busy periods such as Christmas then they need to make sure that there is money for wages in their budget so they can pay their staff. This will make Tesco more motivated to achieve their targets and objectives. If Tesco didn’t have a budget within their business, the team wouldn’t have anything to aim for and won’t have any way of knowing how the business is doing. However, if Tesco’s budget is unrealistic or too aspirational then they are likely to give up and not hit the target. Furthermore, if Tesco didn’t have a budget then it’s likely that they’d produce too much stock which most it will be thrown away leading to an increase it waste products and this shows that Tesco is spending way too much money on stock that isn’t needed which is why it’s vital that they create a budget and control their costs. Without a budget, Tesco won’t know how much they spent in

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