Unit 2 Business Resources D1

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Unit 2- Business Resources D1- Evaluation on Managing Resources Can Improve the Performance of a Business If a business manages its physical and technological resources effectively, this will impact the performance of the business as it will give Cheshire Balloons the full benefits of the resources. The same applies to the Cheshire Balloons budget, if the budget is controlled and managed effectively, this will improve the performance and success of the business. As profits are the way to recognise any improved performance with in the business, if business profit levels were to improve, this would mean the business has managed to maximise its income and minimise it cost. This is an overall improvement to the Cheshire Balloons performance. As the business is aware of what will sell and be successful with in there shop. If the business carries on managing the costs and budgets properly, by purchasing the right stock and the quantity of stock. They will start to learn when this stock will be purchased and what period of time, for example: buying Christmas cards for the Christmas period. This will be very beneficial to the business, as it will be generating substantial sales revenue from the chosen stock as a result. Another resource the business needs to manage, is the recruitment of staff. Depending on the size and capacity of shop, depends on how many staff you need. Over employing staff may lead to a high cost from the business. So insuring the correct number of staff are employed means a reduced cost, which then the extra money for other parts of the business. With hiring the correct staff for the business, this is beneficial as the business will have more productive workers, which can lead to a better business. Cheshire Balloons needs to include in their budget is the premises, a business needs to rent a suitable premises to fit the style of the business,
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