1. Unit 02 - Business Resources D/502/5409
OCR Cambridge TEC - Level 3 Certificate/Diploma Business
LO2 - Know the purpose of managing physical and technological resources

2. LO2 - Assessment Criteria
Learning Outcome (LO)
The learner will:
Pass
The assessment criteria are the pass requirements for this unit.
The learner can:
Merit
For merit the evidence must show that, in addition to the pass criteria, the learner is able to:
Distinction
For distinction the evidence must show that, in addition to the pass and merit criteria, the learner is able to: 1
Know how human resources are managed P1
Describe the recruitment documentation used in a selected organisation
M1 - Analyse the recruitment documentation of a selected organisation P2
Describe the main employability and personal and communication skills required when applying for a specific job role 2
Know the purpose of managing physical and technological resources P3
Describe the main physical and technological resources required in the operation of a selected organisation 3
Know how to access sources of finance P4
Describe sources of internal and external finance for a selected business
M2 - Analyse the advantages and disadvantages of a range of different sources of finance for a selected business
D1 - Evaluate the best source of finance to meet the needs of a selected business 4
Be able to interpret financial statements P5
Interpret the contents of a trading and profit and loss account and balance sheet for a selected company

3. Scenario and Assessment Criteria – P3
LO 2 Know the purpose of managing physical and technological resources
Learners could be asked to carry out an audit of their learning environment in order to identify the range of resources that are required for the organisation to operate. They could then work in small groups to discuss which are physical resources and which are technological, and classify them accordingly. Each group could then be asked to justify their classifications.
For P3 - Learners could produce a leaflet that describes the main physical and technological resources required in the operation of a selected organisation.

4. P3.1 - Physical and Technological resources
All companies have a degree of physical and technical resources that gets them through their working day. Even a company that is purely online needs resources that are managed to function. For instance, everything around you in the classroom right now is a resource, the fact that it is in the room means it was planned, purchased, sourced, managed, it has a lifespan, it needs maintenance and replacing, it will be checked for purpose and function and decisions will be made about it.
Buildings and facilities – This is the main resource that companies have, rented or paid for, and these will require maintenance, security and insurance. For some companies Buildings and facilities are the most important feature of the business, theme parks, leisure centres, factories, the maintenance and upkeep of them is vital for the image and for business. And all businesses require insurances, the more customers on site, the more insurances. Are necessary.
Stock – For some companies the value and insurance on the stock is the biggest financial outlay of the company. A market stall holder does not need to make the market stall look great as long as there is stock, warehouses and merely boxes for holding stock. Some stock lasts and so the storage can be longer term, white goods, car parts etc. some are short term so the cost of storage is different, food, plants etc. Loans can be gained from potential stock sales, for companies like builders this is how business is done.

5. P3.1 - Physical and Technological resources
Machinery/equipment – This is similar in some ways to stock in that it is the first thing a company purchases after premises and the last thing sold off. Without machinery and equipment, a company will have to rely on remaining stock sales to survive. Farms for instance can exist without machinery and equipment but will find it hard to complete, whereas factories rely wholly on these to create goods. Machinery can be borrowed upon for asset wealth and for most companies machinery needs replacing regularly to remain viable or competitive.
ICT – This is the newest asset, most companies rely on it for function rather than business but in terms of function ICT improves efficiency. For companies ICT is everything, for others like Argos, ICT helps. Like machinery and equipment ICT needs replacing, 3 years is normal through wear and tear. As an asset is cannot be borrowed upon easily, built in latency reduces its value quicker than vehicles. To maintain efficiency however companies spend a large percentage of their budget getting this right.

6. P3.1 - Physical and Technological resources
Waste – Tesco’s waste £100m of food a year, and in doing so, spend millions getting rid of it. This is a burden rather than an asset but for some companies the waste products can be an asset. Waste coal can be used in factories as fuel, by products from steel production like ash and detritus can be used for legitimate landfill. When waste is considered an asset it becomes a viable cash bonus, when waste is considered a burden, it becomes a financial drain. Waste cannot be borrowed upon, there is no guarantee of a return.
Intellectual property, e.g. original designs – all companies have resources that can be shared and used. Intellectual copyright can be used as a financial asset for companies who are willing to share ideas for a price. The problem with Intellectual copyright is that it is difficult to prove. As an asset it will restrict down rivals from using the ideas, Samsung spent more money than it needed to in order to get a product as good as Apples. Managing this as an asset can give a company an additional potential revenue stream but again, this is difficult to borrow money upon.

7. P3.1 - Physical and Technological resources
Software licences – Every company who uses software has to pay for the software, this is a legal issue and there is no legal way around it. Companies who licence products like Adobe, Microsoft, Serif etc. pay a licence for use fee, for this fee they get upgrades and support as well as the right of use. Financially this is a drain on funds but a necessity. Companies who produce the software gain from sales and from licences. Think of your phone, how much you pay for the phone and how much for the contract, licences come to double, triple or more the original value of the software.
Patents and copyrights – all companies have resources that can be shared and used. Ownership of Patents and Copyright can be used as a financial asset for companies who are willing to share ideas for a price. Licensed patents for instance have made Intel one of the largest chip manufacturers, Microsoft gains a huge percentage of its wealth from licensing its OS as does Apple. Companies who patent and lease patents to other companies gain a revenue stream without doing any work. For certain schools, creating materials for other schools created a viable revenue stream. For every good service there is a secondary customer.

8. P3.1 - Physical and Technological resources
P3.1 – Task 01 – Create a report that describes the purpose and business function and the current financial state of your selected company. P3.2 – Task 02 – In this report describe the current Physical resources of your selected company in terms of Buildings and facilities, stock, machinery and equipment, ICT and Waste. P3.3 – Task 03 – In this report describe the current Technological resources of your selected company in terms of Intellectual property, Software Licences, and Patents and Copyright.