P4 Describe Sources of Internal and External Finance for a Selected Business.

CVS has a slightly lower value for days to sell, meaning they have a quicker turnover in their inventory than Walgreens. They will then be able to sell more inventory which means that they will convert more assets to cash. A company doesn’t want all of its assets sitting in inventory because it is not liquid at that point. CVS had a higher value for days to collect. This means that it will take them longer to receive their money from sales. This could cause problems because a company reports the increase to sales revenue but does not report an increase to cash until it is received. They must also plan accordingly for when they need to do their purchases because they may not have received their cash from the customer

The finance function and its relation to other decision-making areas in the firm; the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective.

WHS has a strategy to gain sales on the scale of operations and through offering the variety of store options. With that in mind, the company has a

Having joined the John Lewis Partnership (JLP) since 1937, the key stakeholders of Waitrose including the owner - John Lewis Partnership, customers, suppliers, government, campaign group and employees. In terms of being a partner of JLP, JLP is the main

Tesco is an international or global business. Tesco is very successful as it is a global business. Tesco sells food as their main product but they have recently invested their money and started selling clothes as well as electronics. Tesco will use the different types of capital to help them with methods which affect them in either being successful or unsuccessful. Tesco would rely on Human, Social, Financial and Physical capital as it helps to ensure their business runs efficiently on a day to day basis. As a result, these capitals will benefit Tesco’s in many ways because it will help Tesco to improve their performance and satisfy their customers wants and needs.

Porter (2013) pointed out that an investor must be able to assess how well a company manages its inventory. The study found that the quicker inventory can be sold, the sooner the money can be available to buy more products. In the case study of the Walgreen Company’s managers or owners should consider some steps in the business decision model that help them make a decision of the company’s

Finance is the act/process/study of managing money in such a way that you aquire and keep more money, and lose less of it. Finance is deciding what to do with the money you have. Accounting is figuring out how much money you have.

Because of the size of a department store like Primark they make a larger sales increasing the profit Primark makes and reducing

A stockout in retail does the opposite of what the store purpose is. Stockouts cost stores and businesses money. A stockout costs retailers as much as eight percent in sales, not to mention the profit loss that is experienced by manufacturers (Dong, Xu, Yin, 2016). In addition to that, the business relationships between the stores and the

On the other, although the majority of the information shown in the case study presents arguments for the fact that it was inevitable that Woolworths would fail as a business, it is also shown that the company was once a reputable company and generated high levels of consumer demand through the customer being able to buy “pick-n-mix sweets, a DVD, a magnifying headlight and a cheese grater “ in the same store. The revenue generated within the first six months of 2008 was £1107 million, which suggested that the firm was able to sell efficiently to an extent. If the financial department at Woolworth’s had evaluated the balance sheet and income statement from previous years, they would have potentially been able to minimize the risk of the high expenses, reduced profit margins and overall prevent the administration of the company that occurred in 2008. This point therefore indicates that it was not entirely inevitable that Woolworths would fail as a business, as measures could have been carried

Finance is the study of applying specific value to things we own, services we use and decisions we make. Financial management is the process for and the analysis of making financial decisions in the business context. The major subareas of finance are investments, financial management, financial institutions, market, and international finance. Risk is a potential future negative impact to value and or cash flow. It is often discussed in terms of probability of loss and the expected magnitude of the loss.

Cartwright is a retail distributor of lumber products. It built its competitive edge based on pricing and having a careful control over its operations. The company reported an operating income of $86,000 and $111,000 in 2003 and 2004, respectively. This is a 29% increase in operating income in one year, which shows the firm’s strong ability to generate cash. The firm’s account receivables and inventory are increasing from year to year which is a good sign of a growing business. Cartwright is not an asset intensive company. It does not have to have huge fixed assets; most of its assets are cash, accounts receivable and inventory which all depend on future sales. Sourcing of materials is managed very well, purchased at discounts most of the time and contribute to having lower prices.

Internal sources come from internal company that conducts the recruitment. Recruitment using these sources is relatively quick and inexpensive. Company does not need any advertisement, head hunter or any other form of recruitment that is costly.

merging or forming a strategic alliance with another company is a great way to develop and overcome some of the weaknesses. here it would be most appropriate to give waitrose –ocado partnership as an example where they formed a partnership to mange their online market strategy.

There are various reasons why finance may be required. Some of the reasons for obtaining finance include to start up a new business, to expand an existing business, to be able to deal with unexpected problems in an existing business, and to be able