HR7003 Individual Coursework Assignment

HR7003 Individual Coursework Assignment Sample 2022


Budgeting facilitates in predicting future performances ofLondon Docks Cafe as well as helps in making a financial relationship between past and future performances. Major objectives of budgeting will be discussed in this study along the impact of budgeting within London Docks Cafe will be evaluated here.

Further, a variance report will be prepared to justify spending and revenue variances for the month of December. In this regard, certain measures will be demonstrated here to mobilize the financial performances of London Docks Cafe. Systematic approaches and financial techniques will be developed to visualize the strengths and drawbacks of its financial techniques. Apart from this, specific terms related to sustainability and profitability assessment of London Docks Cafe will be evaluated in this study.

a) Key objectives of budgeting

  • Budgeting ensures adequate use of capital which helps in generating adequate growth with the application of financial tools and strategic policies in the business. Reduction of expenses and minimizing the total idle time are considered as the two most effective factors of implementing a budgeting program.

As opined by Emerling and Jurkiewicz (2018), minimizing the financial risks and optimizing the performance level of an organization are key objectives of budgeting. In addition, increasing economic efficiency and developing marginal techniques are the most effective sustainable factors of budgeting policies.

  • Establishing a relationship between the organization is considered as one of the important objectives of a budgeting policy. Controlling the total expenditure of a firm based on the total income level of that firm is considered as the two most effective factors in implementing budgetary policies.

As stated by Rotaru (2019), implementing development to foster the key financial performances will help in concentrating on the decision-making procedures of that firm. Budgeting presents opportunities for comparing past performances of an organization as well as developing sustainable policies.

Benefits of budgeting process within London Docks Cafe

Effective usage of money

Budgeting is associated with conducting effective usage of money as well as enhancing the future sustainability of that company. Implementation of a robust budgeting process was the right decision for London Docks Cafe as it generates sustainability in its operational performance.

As expressed by Steccolini (2019), it is considered a prior task for an organization to minimize future challenges and sustainable issues. It is observed that £10000 was a deficit in the formalizing planning procedure of its business (as per case study). As a result, it can be viewed that budgeting was useful to visualize the operational gap in its operational practices.

Proper allocation of money

Expenses associated with raw materials, wages and salaries, and utility expenses were budgeted as £50000, £10500, and £3500 respectively (as per case study). Thus, it can be figured that budgeting helps in assessing financial performance and creates strategic growth in business policies.

As mentioned by Jacob (2019), planning and controlling policies of budgeting should be enhanced as it will help in maintaining ethical practices in the business. Certain materials such as monetary policies and regulating issues will be used in the marketing policies and business strategies of London Docks Cafe.

Evaluation of future performances

In this regard, it can be considered that the business performances of London Docks Cafe can be properly evaluated by predicting its future performances. Variances are observed in the financial performances of London Docks Cafe to obtain certain strategies in its financial model.

As viewed by Phaup (2019), budgeting uses all the financial ratios and strategies policies in predicting future performances of an organization as rigidity areas can be highlighted. The decision-making procedures of London Docks Cafe can be improved by implementing a robust budgeting system in its business.

b) Variance report of London Docks Cafe for the month of December 2020

Variance’s report
Particulars Actual Planning Percentage of change Change
Raw material (£2.50q) 90000 100000 -10.00% -10000
Wages and salaries (£5 500+£0.25q) 10000 10000 Nil Nil
Utilities (£2 500 + £0.05q) 3400 3500 -2.86% -100
Facility rent 5500 5000 10.00% 500
Insurance 3200 2800 14.29% 400
Fuel 2800 2500 12.00% 300
Budgeted meals quantity 18000 20000 -10.00% -2000
Revenues (£5.00q) 90000 100000 -10.00% -10000
Net Operating Income 20100 25700 -21.79% -5600

Table 1: Variance’s report of London Docks Cafe

(Source: MS Excel)

c) Evaluation of variance report of London Docks Cafe

There is the availability of certain areas such as profit maximization and wealth development and many others which must be properly monitored to increase stability, operational promotions, and financial performance of London Docks Cafe. As the measurement of financial performance and strategic evaluation of the business activities are considered as important in mobilizing its future performance.

One of the major deficiencies observed within its financial performance is that net operating income was immensely decreased. It shows that there is approximately a 21.79% negative change in its operating revenue for the month of December 2020.

As argued by Poh et al. (2018), the financial performances and intellectual capital of a business can be properly visualized with the usage of budgeting factors. The total material used was 90% of the materials predicted to be used in the operational procedures.

HR7003 Individual Coursework Assignment

Figure 1: Net operating income of London Docks Cafe

(Source: MS Excel)

Suggestions to improve the financial management of London Docks Cafe

  • Specific suggestions need to be given related to increasing financial policies and effective usage of maintaining capital and a proper proportion of issues in its strategic areas. Development of the minimizing policies and ethical practices are some suggestions that need to be ensured as it will help in the operational management of the financial profitability of London Docks Cafe.

As narrated by Puspitasari and Sari (2021), the internal assets and financial viability of the business have to be managed in such a manner as it will help in increasing the viability of the business. Optimization of the business policies and specific techniques have to be evaluated to increase operational viability in its organizational strategies.

  • In further, it can be suggested that the total costs of the company have been reduced at present as the total production level minimized for the month of December. As a result, it can be concluded that the total decrease in financial performance does not have an impact on the marginal profitability of London Docks Cafe.

As narrated by Girma (2017), implementation within the operational revenue may help in improving financial strategic performances of an organization. In response to this issue, it is suggested that the company creates partnerships with other key businesses to gain the required financial volume. In addition, partnerships in business are likely to reduce risks of failure and this would help the organization to improve its business in the long term.

d) Adaptation of profitability into the financial practices of London Docks Cafe

The generation of ratios and reports may help in increasing profitability and implementation of financial sustainability in its operational procedures. In this regard, it can be viewed that an increase in profitability may help in making a strategic impact on the business. London Docks Cafe should concentrate on increasing the number of meals delivered as it will help in increasing the potentiality of its business.

As narrated by Kodul et al. (2019), promotion related to environmental factors and strategic changes into the financial policies may be helpful in understanding certain facts and policies such as discrimination and lack of corporate culture that need to be minimized.

Thus, the generation of sustainability reports will help in increasing stability and make improvements to the operating practices of London Docks Cafe. An increase in the total selling level may help in improving the financial performance of London Docks Cafe.

Implementation of sustainability practices in London Docks Cafe

  • Improvements to the quality of its foods are concentrated as the primary option to make specific sustainability changes into the business policies. As narrated by Chaudhuri (2017), strategic benefits and operational promotions have to be properly measured as it is associated with increasing sustainability in the business.

Adequate usage of raw materials facilitates increasing goodwill of the company. Being a meal supplying company in local airport areas, it has to advertise its key products through different media channels. Based on the advertisements, participants will come within the London Docks Cafe. It is also necessary that the company use a reverse logistics process to foster its supply chain and attract investors through such sustainable approaches.

HR7003 Individual Coursework Assignment

  • Usage of fuel and total expenses related to insurance and factory rent is viewed as an increased price. As there are fewer production activities in this current period, the total cost will not exceed the budgeted value. In this regard, it is necessary to maintain a strategic pricing strategy as it helps in improving the financial position of the company.

Application of those policies may help in deriving a fixed rate or prices which will help in improving the financial position of London Docks Cafe. The pricing should also be in such a way that the company can maintain sustainability in the long term. Conducting internal analysis such as gap analysis can help to determine in which areas the cost of expense can be reduced.


Based on the above discussion, it can be concluded that the application of budgeting objectives may help in improving financial performances as well as maintaining viability in its business. Implementation of a robust budgeting process is considered helpful in implementing strategic policies and the optimization level of a business.

Allocation of the necessary tools such as gap analysis and marketing management analysis may be helpful in improving the sustainability of London Docks Cafe. Analysis of variance report states that the financial performance of London Docks Cafe for the month of December 2020 was not profitable at all. An increase in the total costs of London Docks Cafe has been observed whereas there is less profitability observed for the same period.

Application of risk mitigation strategies and scientific business tools may be helpful to increase profitability and sustainability within London Docks Cafe.

Reference list

Chaudhuri, D.S., (2017). ‘A Study On the Relationship between Operational and Financial Performances in Indian Port Sector’. ICRBS-20172017. Available at:

Emerling, I. and Wojcik-Jurkiewicz, M., (2018). ‘The risk associated with the replacement of traditional budget with performance budgeting in the public finance sector management’. Ekonomicko-manazerskespektrum, 12(1), pp.55-63. Available at:

Girma, B., (2017). ‘Intellectual capital efficiency and its impact on financial performances of Ethiopian commercial banks’. Research Journal of Finance and Accounting, 8(8), pp.17-31. Available at:

JACOB, J., (2019). ‘Effect of Budgeting and Planning Control Process on Multinational Organization in Nigeria’. JOURNAL OF ACCOUNTING, FINANCE AND DEVELOPMENT (JAFID), p.166. Available at:

KaoDui, L., Muyun, Z. and Mandella, O.A.B., (2019). ‘Social and Environmental Accounting Reporting and Financial Performances in Ghana’. International Journal of Economics and Finance, 11(4), pp.82-94. Available at:

Phaup, M., (2019). ‘Budgeting for mandatory spending: Prologue to reform’. Public Budgeting & Finance, 39(1), pp.24-44.

Poh, L.T., Kilicman, A. and Ibrahim, S.N.I., (2018). ‘On intellectual capital and financial performances of banks in Malaysia’. Cogent Economics & Finance, 6(1), p.1453574. Available at:

Puspitasari, N.F.D. and Sari, N.N., (2021). ‘HOW CORPORATE SOCIAL RESPONSIBILITY EFFECTS COMPANY’S FINANCIAL PERFORMANCES’. SCIENTIFIC JOURNAL OF REFLECTION: Economic, Accounting, Management and Business, 4(3), pp.662-671. Available at:

Rotaru, D., (2019). ‘Budgeting and key performance indicators establishment as a tool for decision-making process optimization’. In SimpozionŞtiinţificInternaţional al TinerilorCercetători (pp. 239-244). Available at:

Steccolini, I., (2019). ‘New development: Gender (responsive) budgeting—a reflection on critical issues and future challenges’. Public Money & Management, 39(5), pp.379-383. Available at:

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