Evaluate How Managing Resources and Controlling Budget Costs Can Improve the Performance of a Business.

793 WordsMar 31, 20134 Pages
D1 Evaluate how managing resources and controlling budget costs can improve the performance of a business. The management and budget control can is very vital to Tesco as an organization as it enables the company to effectively carry out its day-to-day activities and failure to consider these factors can lead to customers being lost. The management of resources is as necessary resources need to be available for employees and there must also enough resources available for the employees so therefore they are able to provide good service to the customers. Within the organization there is enough staff working in Tesco meaning the task s in hand cannot be completed without these vitals resources. For instance; if a customer were to…show more content…
On the other hand Tesco’s management department is poor so therefore meaning huge sums of money are wasted and spent on unnecessary resources. If budgets aren`t controlled this will cause spending to spiral out of control and eventually lead to money being spent not being replaced. The main reasons businesses fail is usually failure to update their cash flow management. Tesco has to manage its resources and control budgets these leads to costs being saved for the business. Tesco also has to pay out less money in cost in order to show the higher profit of the business. For instance; if the business has a total of 40 people working on a Thursday but also need 30 people working, can cause major problems for the company has this means the least experience individual`s hours will have to be reduced by the company so therefore the best employees are at the workplace. Also if the company`s IT department is used to receiving a sum amount of money, the company`s finance department can evaluate this and cut down costs so therefore there are enough funds available for the other departments within the organization. This will be considered an intelligent cut as it therefore means the business is able to save more cash. Tesco need to ensure the way in which their money is distributed is controlled as these enable the company to be able to make any needed investments required. Tesco’s costs needs to be controlled as part of the budget, total sales, minus the
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