Introduction to Business Studies Assignment Sample

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1. Introduction

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The HRM strategy is a strategy for recruiting, training and motivating the employees of the company for achieving goals and FM strategy is related to procuring finance for company. The report will base on the Body Shop Company. The report will state the HRM strategy of recruiting, training and development and employee benefits and FM strategy like evaluating profit and loss and preparing balance sheet. The report will highlight strengths and weaknesses of both the strategy of Company. The purpose of report to evaluates the better strategy of the company. The Body Shop Company is a cosmetics company established by Dame Anita Roddick, founded in 1976. The company offers variety of 1000 products through its 3000 stores. The company offers skincare, beauty, hair types and bath & body products.

2. HRM Strategies

Human Resource Management is the department responsible for hiring, employing and managing the employees in the organization. It focuses on organizing and coordinating employees in the company so that the goals or objectives of the business are achieved effectively and efficiently. The role of Human Resource Management in business is that it is responsible for recruiting and hiring the best employees for the company, training employees and better communication at the workplace (Zardasht, Omed and Taha, 2020). The HRM strategy includes recruitment, training and development strategy and employee benefits and reward strategy.

2.1 HRM Strategy of the Body Shop Company

Recruitment strategy

• Open Hiring- The Body Shop Company use an open hiring strategy to recruit employees for the company. The concerned company works in partnership with Movement To Work on the programmed at the time of Christmas and targets individuals like single parents and young helpers (Adeosun and Ohiani, 2020). The aim of the company in recruiting like this is to eliminate the barriers of background and education requirements, it encourages people to get employment.
• Use of Social Media- the Company recruits employees through posting on social media regarding job vacancies. This aids the company in finding great talent among those people who are already familiar with the brand (Hosain, 2023).

Training and Development Strategy

• On-the-job training- The Body Shop Company provides On-the-job training to its employees. It is a hands-on method, where training is provided while doing real work at the company (Marcato, 2022). It helps to increase the skill, efficiency and knowledge of employees on the job. This training is done by providing practice sessions at the work.
• Job instruction training- In this method, for employees, the Body Shop frames a training program in steps. In this, the trainer provides instructions to employees to complete the given task. The trainee works according to the instructions and helps in gaining knowledge and skills.
• Internal Mobility- The Body Shop Company emphasis on internal mobility and for this the company generate opportunities for current employees. For achieving this, the company develop internal talent by offer a development program like ‘Creating Next Us’, in this capable employees recognized through feedback and assessments (Dixit and Sinha, 2020). For employee engagement, the company makes RnR programmes to motivate employees with the help of fun activities.

Employee benefits, rewards and incentives

• Rewarding– To motivate and encourage the employees of the company, the Body Shop Company reward their employees. The company rewards its employees in terms of monetary and non- monetary form. For monetary incentive company offers bonuses, and salary increments (Francis, Zirra and Mambula, 2020). The company reward its employees for better performance by giving gift cards, care packages, team lunches and so more, it is regarded as non-monetary incentives.
• Initiative for Wow experience- The Body Shop taken an initiative to give ‘wow’ experience to company employees. In this company offers flexible working hours, development plans and programme for recognition (How The Body Shop India empowers employees for better engagement & productivity.2024). To encourage and for interaction with employees the company make plans to spend time together outside company and do fun related activities like brainstorming.

2.2 Strengths and Weaknesses of HRM strategy of the Body Shop

Strengths

The HRM strategy of the Body Shop Company with its effective training and development program improves the skill and proficiency of employees it lead to increase revenue of the company. Its HRM strategy also give emphasis on the development of existing employees, it increases their morale and aids to achieve goals of company.

Weakness

The weakness of recruitment strategy of the Body Shop Company is that it is not able to find right person for the right person for right job. The company recruits on the basis of first- come- first-served format. Because of this the company is unable to find best employee.

3. Financial Management Strategies

Financial management is a process of doing planning and controlling activities of the company related to finance like procurement and usage of finance in the company. The role of financial management in the business is that it is responsible for allocating finance for different business activities, for introducing new product in the business (Eun, Resnick and Chuluun, 2021). It is important for the company to increase market value and helps in achieving goals in long term.

Financial Management Strategy

The financial management strategy emphasis on financial resources, estimates profit potential and cost structure and so more (Mihajlović, Tadin and Gordić, 2020). It is important for doing financial planning, raising funds, maintaining cash flows and deciding capital structure of the company. Financial management strategy are-

• Analyze financial statement- Evaluating financial statement is essential for determining financial strategies. Effectively evaluating financial statement aids the company in making financial decisions. These present the financial position of the company and outline the success or failure in the future.
• Evaluate profits and loss- The financial management strategy evaluates income statement of company and determines profit and loss (Alzaimoor, 2020). By analyses, it helps company in reviewing its current business strategies so that company achieves its future goals.
• Preparing Budget- Preparing budget is important requirement for the business. It allows business to manage cash flow, expenditure, income and assets in the business. Preparing budget helps the company to track the performance of business by analyzing profits and losses.

3.1 Financial Management Strategy of the Body Shop

 By evaluating the profit and loss account, it is analyzed that the gross profit of the company in financial year 2022 is 51.96% which was in financial year 2021 was 59.75%. There is increase in the value of cost of goods sold, therefore the gross profit of the company decreases, it means company need more funds to deal with operating expenses (THE BODY SHOP INTERNATIONAL LIMITED, 2024).

The Net Profit ratio of the company in financial year 2022, the company has net loss of 14.70 %. In financial year 2021 there was net profit of 3.28%.

The inventory turnover ratio increase in financial year 2022 as 1.79 as compared to financial year 2021 was 1.58 it means that company products are sell on time, it means the company have good sales of its products. The company give emphasis constantly on replenish inventory, as company need more stock so that there is no problem of lack of stock.

3.2 Strengths and weakness of Financial Management of Company

Strength

The strength of financial management strategy is that company sales is increase as compared to previous year, it means there is better planning of finance.

Weakness

The weakness of financial management strategy is that the company`s budgetary control is not sound because company`s expenses is increases due to which company suffer net loss.

4. Evaluation of HRM and FM Strategy of The Company

By evaluating the Human Resource Management and financial management strategy of the Body Shop Company it is analyses that the HRM strategy is better than FM strategy. It is because of that the company has good training and development strategy for its new recruiting employees, the company provides on the job training to its employee in which the employee trained while performing job (Robinson, 2020). For this, step by step instruction given to employees. The company also provides training to its existing employee, it increases skill, knowledge that helps to increase the performance as well as achieve organizational goal. For the motivation and employee engagement company take some initiatives and reward employees for better performance in monetary and non- monetary form. The financial management strategy of the company is not efficiently sound because the profit and loss accounts of the company show loss in the financial year. For this, the company has to take some corrective measures to correct its financial position by improving financial strategy.

Introduction to Business Studies Assignment Sample

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5. Conclusion

To sum up, it is concluded that for achievement of company goals HRM and FM strategies plays an essential role. The Body Shop company HRM strategy included open recruiting, internal mobility for training and development and some initiatives to motivate employee. The report stated FM strategy like evaluating profit and loss account and preparing balance sheet. The report highlighted the strengths and weakness of both strategies. Thus, it is concluded the Body shop need to improve is financial management strategy.

6. References

Books and Journals

• Adeosun, O.T. and Ohiani, A.S., 2020. Attracting and recruiting quality talent: firm perspectives. Rajagiri Management Journal, 14(2), pp.107-120.
• Alzaimoor, N.A., 2020. Earnings Forecasts and Market Valuation of Profit and Loss-Making Firms. The University of Manchester (United Kingdom).
• Dixit, R. and Sinha, V., 2020. Addressing training and development bottlenecks in HRM: Facilitating a paradigm shift in building human capital in global organizations. In Contemporary global issues in human resource management (pp. 141-161). Emerald Publishing Limited.
• Eun, C.S., Resnick, B.G. and Chuluun, T., 2021. International financial management. McGraw-Hill.
• Francis, F., Zirra, C.T.O. and Mambula, C.J., 2020. Reward system as a strategy to enhance employees performance in an organization. Archives of Business Review–Vol, 8(6).
• Hosain, M.S., 2023. Integration of social media into HRM practices: a bibliometric overview. PSU Research Review, 7(1), pp.51-72.
• Marcato, A., 2022. Lights and Shadows of Employer Concentration: On-the-Job Training and Wages. Bocconi University, mimeo.
• Mihajlović, M.B., Tadin, D.B. and Gordić, B.M., 2020. The role of financial management in the company. Tehnika, 75(4), pp.498-503.
• Robinson, T.R., 2020. International financial statement analysis. John Wiley & Sons.
• Zardasht, P., Omed, S. and Taha, S., 2020. Importance of HRM policies on employee job satisfaction. Black Sea Journal of Management and Marketing, 1(1), pp.49-57.

Online

• How The Body Shop India empowers employees for better engagement & productivity. 2024. Online. Available through: < https://www.hrkatha.com/features/how-the-body-shop-india-empowers-employees-for-better-engagement-productivity/>
• THE BODY SHOP INTERNATIONAL LIMITED. 2024. Online. Available through: < https://find-and-update.company-information.service.gov.uk/company/01284170/filing-history>