Ressource Management Essay Example | Topics and Well Written Essays - 1000 words

Ressource Management - Essay Example This paper aims at discussing strategies that are involved in sourcing, budgeting processes as well as financial reporting requirements adopted by Tesco PLC, a UK based supermarket that deals with various kinds of products. Sourcing Apart from dealing with food products and Tesco mobile among other brands, Tesco PLC deals with selling and distribution of safety equipments such as gumboots, oil resistant boots, helmets, ear plugs, overalls and dust coats among others. Majority of our customers are entities dealing with manufacturing of all kinds of products as well as flower farms. Based on the need to maintain safety in all work places and be in line with Occupational Safety and Health Administration (OSHA) safety requirements, majority of firms offering products as well as services have continued to order from us thus increasing our sales. Tesco PLC has outsourced the process of manufacturing most of our products to a neighboring firm. Outsourcing refers to the contracting of a firm ’s business activity to a third party. ... The second advantage is that the company is able to share the risks arising. Another advantage of outsourcing is that the company does not incur the costs of hiring production machine or purchasing them. Likewise, we are able to concentrate with our core business of selling and marketing of our products making the relationship with our client’s stronger. Disadvantages of outsourcing our services Although Tesco PLC emulates outsourcing, the company is faced with some disadvantages. First is lack of customer focus by the company we have outsourced to. Based on the fact that the company manufacturers products for various companies dealing with safety gadgets, it may lack complete focus on the quality of our brands2. Additionally, sometimes there is a delay in the delivery of the final products to Tesco PLC premises an issue that has caused us to lose some loyal customers3. Despite the disadvantages, our organizations objective is to outsource its production process for the next 3 years after which it will establish its own production department. Budgeting processes Tesco PLC.has established accounting department that undertakes the budgeting process under the leadership of a senior accountant. The company maintains a cash budget. The cash budget entails an expansive plan of future cash flows. In order to ensure that the company liquidity is maintained at a recommendable state, four items are covered by the cash budgets. These includes cash receipts, cash disbursements, net change in cash for a particular period of time as well as new financing needs. The accounting department undertakes six processes in its annual budget preparation. Automating: This department uses excel spreadsheets with formulas that are used to compute