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Knowledge and Creativity in Business Environment

University: ARU London

  • Unit No: 6
  • Level: High school
  • Pages: 9 / Words 2220
  • Paper Type: Assignment
  • Course Code: N/A
  • Downloads: 314

Table of Content

  1. INTRODUCTION
  2. CONCLUSION
Question :

This sample will let you know -

  • Discuss about the Financial Performance Analysis.
  • Discuss about the Impact of training and development of employee.
  • Discuss about the advantageous for respective organization to enhance profitabilities.
Answer :
Organization Selected : British Sky

INTRODUCTION

In present business environment, every business wants to achieve business goals within reasonable time-frame. Financial analysis is crucial aspect for business which determines the actual position of enterprise (Sheikhi, Ranjbar and Oraee, 2012). Training and development have been considered as a very essential part in uplifting the performance level of employees in various companies. This task evaluates the real fiscal performance of enterprise British Sky which is a broadcasting corporation. Company is major supplier of telephone as well as broadcasting or broadband services. Also study contains suggestions for improving profitability level.

1.Computation of financial-ratios:

(i). Gross profit- The term represents part of the profits that entity gained post distributing all expenditures linked with the production as well as revenues of multiple products/items. Amount of GP usually reported as difference revenue and COGS in the organization's income statement. In this context, the gross profits of the relevant company over two years and the GP margin estimate are as follows:

Description

(GBP in Million)

Year-2014

Year-2013

Revenues

£7632

£7235

Less- Cost of sales

£4616

£4329

Gross profits

£3016

£2906

 

(I) GP margin(%) = Gross profit / Net sales x100

Description

(GBP in Million)

Year-2014

Year-2013

Gross profits

3016

2906

Net Revenues

7632

7235

Computations:

£3016/7632 x 100

£2906/7235 x 100

Gross profit margin

39.52%

40.17%

(ii.) Operating profits: The term specifies amount of profits that the entity earns via its fundamental business trade activities. Especially noteworthy fact here is that sum of interest expenses paid-out and tax payable sum are excluded in the assessment of operating profits. Below are British Sky's operating profit estimates and margin percentage, as follows:

(iii.) Profit of current year:It is considered net-income that the company has received post paying all of its expenses/costs over a time-frame (Delen, Kuzey and Uyar, 2013). This displays net profitability level of the company during a given period, underneath the tables contains net profits earned during 2 years and entity's NP margin:

2. Financial Performance Analysis:

Descriptive analysis- In that subsection of the study-assessment, a detailed descriptive review and analysis is performed in following way to determine financial-performance in various terms of corporation British-Sky, as below:

Gross profit margin :

Analysis: From the above measurements and graph of company's GP margin, it's been evaluated that the GP ratio in year-2013 was around 40.17 percent, which decreased to around 39.52 percent, since during this time-span gross profits recorded a growth of just £ 110 million, whereas sales improved by a big figure.

Operating profit margin:

Analysis: Operating profit margins figures and graph show that this ratio was 16.7% in year-2014, and that was around18.38% in 2013, suggesting decreasing pattern owing to a fall in operating profits over period. Evaluation pointing towards that enterprise's capabilities to achieve operating profits have been decreased over the period.

Net profit margin:

Analysis- Based on graph and net-profit ratios displayed above of the British Sky corporation, this is evaluated that total/aggregate net profitability level of the organization decreased from 13.53% to 11.33 % during year-2013 to year-2014. The downward trending in NP margin suggests that the NP making strengths of the company have diminished over respective time-frame.

Aggregate analysis reveals that financial performance of the firm from year-2013 to 2014 has dropped and at present company has reported positive profits and double digit percentage of profit i.e. 11.33%. Therefore company is still in position to pay-out dividends but increase in dividend payout even after a decline in profitability is can lead to negative cash-flows also adequate reserve should be maintained by company as to deal with future contingencies (Cucchiella, D'Adamo and Gastaldi, 2015). Ask for assignment help from our experts!

3. Various sort of choices/alternatives that could be advantageous for respective organization to enhance profitabilities:

Based on above performed analysis of British Sky this has been evaluated that there is need of improvement in profitability level as to enhance the dividend payout. Here following are some relevant options which can contribute in increasing profits of corporation, as follows:

  • Effective cost-management: Sky Broadcasting must try to minimizing expenses for raising their profits The information examined above indicates that in year-2014 their spending has been grown significantly. Cost-management is most crucial option for corporation as by reducing costs company can earn more profits at same revenue level. Under this alternative, corporation should identity factors which are leading to increase in operating expenses and adopt appropriate measures to minimise them accordingly.
  • Putting efforts in increasing sales: Another option for corporation is to enhance their existing revenues to achieve increased profitability. With current increase in operating expenses corporation is facing decline in profits, thus if company is unable to optimise their current operating expenses, company can adopt this option. Under this option company can expand their business and implement effective promotional strategies for enhancing current revenues (Dong, Liao and Liang, 2016).

Company can option any one or both the options to enhance their current business profitability status. It is advisable to company to adopt these options immediately since a decline in profits can lead to loss of trust of stakeholders specially shareholders.

Impact of training and development for enhancing performance of employee

The Training and development have observed to be as one of the most major function in the department of human resource management. Training is specifically set up where a fair chance have been rendered to employees to making them taught the technical and basic knowledge of the work they are going the construct as their job duty. It primary focus on teaching the workers of British Sky which comprises of using some appropriate machines or how a certain task are being carried out in respect to their clients. Development, on the other hand defines the educational as well as holistic growth of the people who are at the managerial position (Noe and Kodwani, 2018).

The procedure of development are always being included in context with adaptability, insights, leadership, attitudes and some human relations. In spite of having a desirable educational skills and degree, some associates have been found to have low efficiency at work. The main reason behind such outcome may be the incapability of misunderstanding in the working of company, these people do not get what all functioning or operations they have to undergo for attaining the specific task, thus it is very essential for the respective organization to train their workers as soon as they get recruited.

A certain steps are being followed which involve in determining the need of training which is followed by establishing the aims, once such part is over type of training method is selected on which the whole process will rely upon. The method of training must be chose crucially according to the predefined demands and need of the training. After delivering the training the overall level of performance are being monitored, which most of the time result in high development. Processes like automation, computation certainly require proper training as well as such staff which must be highly efficient themselves so as to train the associates and make them acquainted with the current developments and technical knowledge. Want to get Assignment Samples?Talk to our Experts!

It has been always evidenced, that due to diversification and modern inventions in making the work categorised or simplified, but in such process an enterprise become very complex and every instruments and working has to be explained to each and every team members so that they can in future explain the clients and can earn profit for organization. Sometimes the specifications or eligibility of workers does not match with the requirement of the company, the gap which is quite broad when it comes to evaluate the requirement essential and qualification, thus to overcome such gap training is utilised (Larsen, 2017). The training process is also important when the current employees get promoted or shifted to high post or to any other department because the working criteria of such division may get changes, for this they have to get well trained. If any new product get launched or being invented in some market by rival company, the training processes comes into active state where all the properties and features of services or any product are discussed for making suitable alteration or addition in working.

The training part is absolutely indispensable in such dynamic conditions where at any time some new development or services may come up which can hamper or lower the productivity of organisation (Frost, 2016). For enhancing the performance level as well as competitiveness of employees, training process is quite competent in human resource division. It not only make the process of working efficient or productive but it also increase the self confidence and self managing capability of employees working in British Sky. The stability and expansion of company always depends upon the quality of work associates impose, thus training improves the quality of work by lowering the wastage and making workers adaptive enough so that they can adjust themselves in dynamic situations. All such factors assist in enhancing the overall character and development of skills which are actually required in accomplishing the task.

The training part helps associates in getting exposure to recent advancements, make long term growth, from highly creative team members which have the capability to work in highly changing environment. Each and every component of training imparts in developing high skills and leadership qualities which are boost the morale and the team members can attain their goal in most innovative and experienced manner.

There is a basic relation between development and training, development is generally meant for executives while training is quite operatives, but overall they assist in enhancing the entire personality of associates and add more skills to their list for maximising their performance level as well as quality. Various training like induction training have been used as orientation training which is basically provided to new candidates which comes in British Sky organisation. The main objective of the training is to make new employees familiar with internal environment of the respective organisation. It benefits the employees by providing knowledge bout basic procedures, codes of conducts as well as policies which are already existing within the environment. It is a form of introduction for the new staff members in order to make them to perform their duties in a new profession (Bournois and et.al., 2017). Job instruction program on the other hand, provides information and overview of the job. In this type of training experience candidates in organisation demonstrates entire job to the employees. An evaluation has been done for measuring the performance of the employees and additional training is provided if there is any need for improvement. Vestibule, refresher or apprenticeship training methods are in sue for proving effective training programs to various group of team members involving in different task or departments. Take Marketing assignment help from professional experts!

CONCLUSION

From study it has been articulated that business' financial analysis indeed an essential aspect which is advantageous for business owners as well as other external parties. In corporation like British Sky, outcomes of financial analysis help to assess the viability of key action such as dividend distribution and other financial decisions. Ratio analysis and descriptive-reviews are primarily used for determining overall actual financial performances of corporation over a specific time-span. Training is generally conducted where a clean possibility have been rendered to worker for making them taught the basic non technical as well as technical and cognition of the activity they are going the construct as their job responsibility. Job instruction training and induction training program are some kind of training method which are utilised in such process.

Read Also - Managing Quality in Hospitality Tourism and Events Factors

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