Task 3
D1: Evaluate the appropriateness of business information used to make strategic decisions
Finance
The finance department collects information from each department and will compare which are doing well and which are not, they will also compare their information with their competitors. The information they receive will help them to make improvements on the stores that are not doing so well. The finance department will also make future targets for the business to achieve. Tesco finance department collect information about their sales/profit figures and put it in a report for end of the year, this is also can be used to compare with their previous years to improve.
A way a business would obtain financial information is through deducting the cost by the profit in order to find out the operating costs. It will also be used to set budgets. Analyse sales, and also predict profits. Tesco financial information will help them to plan future budgets and spending’s. The information will also help them on how well their stores are doing.
The advantage for Tesco is they can make improvements on which areas their business is not doing well and they can compare their previous year to make improvements on. Another disadvantage is Tesco can check their competitors finance reports to help with information to improve. When you manage your finances well, you know exactly what you're spending and what you're earning. You also know when funds will be available. The Financial managers forces you and everyone else in the business to make a case for everything on which they're spending. You also can prevent fraud.
The disadvantage is Tesco competitors will be able to access Tesco finance reports and have an advantage to beat Tesco another disadvantage Tesco might get the same result from previous years and it won’t help them to improve on things. Financial department needs to