Business Environment

The successful accomplishment of this case study is the outcome of the contribution of number of people, especially those who have given the time and effort to share their thoughts and suggestions to Improve the report. At the beginning, I would Like to pay my humble gratitude to the Almighty God for giving me the ability to work hard under pressure. This report on “Case study on Business Environment” is prepared through continuous research for a period of about one month. This long span of work loud not have been possible without the help of various generous hands.

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My sincere gratitude to my course Instructor, for his supervision on this report. He has given a lot of assistance in coordinating the whole report. Without his perseverance and guidance this report would have been a pile of worthless paper. Page 2 of 17 Table of Content Topic Executive summary understanding the organizational purposes of businesses 1. 1 Identify the purposes of different types of organization considering their legal structure and types (private company, public company, and voluntary organization, co-operative, charitable) 1.

Kingsbury is one of the Auk’s leader retailers, currently its position is Just after Tests, who is occupying the market leading position. Anyway;ay Kingsbury t offer high quality with great value products and services ranging from food, cloths, daily household needs etc. They employed over than 152,000 (2012) people in the ASK, and have more than 1,stresses in I-J . Their markets is growing rapidly, recently they have planned to expand more in overseas markets.

In brief, I am going to identify the purpose of different types of organization, their responsibilities, strategies based on the present market situation, trade policies, and behaviors as well as economic, government and the world trade organization impacts on the organization. Then the explanation of market structures, market forces that shape the organization’s response and impact of business and cultural environment on the Finally I will discuss the impact of the global factors and how policies of the European Union affect I-J business organizations. Page 4 of 17 Understand the organizational purposes of businesses structure and types.

A business can be organized as follows: Proprietorship: has a singly owner, known as proprietor, who manages the business; proprietorships tend to be small business or professional services, such as accountants, lawyer Partnership: Joins two or more persons as co-owners, each owner is a partner and the partnership deal can be done, it is called a mutual, mutual Agency: Organization: this organization, owned by shareholders, these people who own shares in the organization, is a certificate representing ownership in a organization, the business is a organization, when the State approved the articles of incorporation, and the first stock share published article to the lines that have been approved by the administration of the State Corporation, unlike sole proprietorship and partnerships. Public Joint stock organization, limited liability organization offers limited liability to its owners and management. If want to be, that the organization can make the organization sells shares to investors, it is useful in attracting capital. Only limited liability organization can be listed on the Stock Exchange, and the character of their stocks has a suffix.

So, British Petroleum PL and BP ticker. A private organization may issue shares and shareholders. But their shares are not on public exchanges and were not granted for the initial public offering. Voluntary organizations: It’s an organization with random or regular volunteer for exploitation and may or may not have paid employees. Voluntary organization is characterized by independence of the State; organize themselves through the unpaid Board membership; Membership that is not received or ordered; support for the charity; are not for profit Cooperative Organization: Page 5 of 17 The organization owned, managed and operated by a group of users in their favor.

Each Member must contribute capital and share in the control of the organization on Charity: Embedded or included tax exempt; developed and used for charitable reposes ;uses its own funds for these charitable activities under its direct control; does not to distribute any part of the turnover is generated for each curator, trustier, Member, or any other individuals and does not associated with political organizations. The upper diagram shows Different stakeholders are engaged in an organization that have different objectives and needs which are served by the organization. Here as follows, a) Investors. Investors are concern regarding the risk of investments, interest and overall return. They need information to determine if he/she should buy, keep or sell. The shareholders are interested about the stability and profitability of organization. Organizations provide information that makes them assess the dividends. B) Staff. Organization meets the employers’ expectations through salary, bonuses and ensures safe environment for the employers. C) Lenders.

They are interested in the information for their Loans and trade credits. An organization paid them back as sale proceeds come from customers end. Page 6 of 17 d) Suppliers and other vendors, who are likewise interested in information to determine whether their supplies and trade credits safe or not. An organization paid off to them for their supplies. E) Clients keep their eye on organization’s commitment, or market position. Organization ensures their interest through growth of business. F) Governments institutions, Organization help the government in the allocating the resources under country business regulation practices also by paying tax which are part of fundamental national income of the country. ) Public, An organization help people to find employment thus help to develop local economy as well as the country. They also help to encourage local suppliers and information about the trend and overall productivity of the country. Stakeholder interests; conflict of expectations; satisfying stakeholder objectives Responsibilities of an Organization An Organization and various forms of responsibilities to the stakeholders and at the expectation and towards satisfying their objectives. Different stakeholders have different priorities in case of organizational responsibilities which are as follows: Employees: Organization needs to ensure good working environment and proper payment.

Shareholders: Organization responsibilities towards their shareholder are o make sure about their profit and dividend. Government and their Institution: Proper allocation of resources, employment solution, follow business regulation of the country, pay corporate tax on time etc are organization’s responsibility towards government and supporting institutions. Customer: Ensuring best quality of goods and services at lowest possible price is an important responsibility of organization. Besides above responsibilities, every organization has been introduced with some new concept of responsibilities which is known as Corporate and Social Responsibility (CARS). Can be subdivided into four criteria Cohn M.

Bryon, 2009) Economic responsibility Legal responsibility page 7 of 17 Ethical responsibility Discretionary responsibility Organization and strategies employed to meet stakeholder interests; conflict of expectations; satisfying stakeholder objectives: Stakeholder should also take part in organizational matters. Their analyses are undertaken as part of policy, plan or strategy change exercises; or organizational development efforts. Different analyses will be needed at different stages in these process In general, people should be involved if they have information that cannot be mined otherwise, or if their participation is necessary to assure successful implementation of initiatives built on the analyses (Thomas 1993, 1995). But it is important to decide regarding their limitations that is, who, what number of stakeholders, how, when they will participate.

Five stakeholder identification and analysis techniques are particularly relevant to helping organize participation: The basic stakeholder analysis technique; Power versus interest grids; Stakeholder influence diagrams; and The participation planning matrix. (Thomas 1993, 1995). Page 8 of 17 Understand the nature of the national environment in which businesses operate 2. 1 Explain how economic systems attempt to allocate resources effectively The economic system is composed of various processes in the Organization and motivation of work production, distribution and circulating, including products and services. Consumer goods, machinery, tools and other technologies.

There are three types of economic systems: Market Economy: this market to a minimum level of government intervention is kept or forgotten and economic resources among the private sector as well as the Achaeans of price will determine how many products or services will be delivered in accordance with the requirements of the market. Centrally planned Economy System: The Government makes all the plans for economic resources and economic activities which can be seen on in Asia, Centre of Europe, Cuba, Iran and Iraq have these economic systems. In this process unemployment will not be a problem as the Government plan for all economic activities and resources. Mixed economy system: this is so far the best economic system for modern world.

A mix of other systems, that is public and private both price mechanism work Jointly in his process. And also distributes the resources available in the region. The country, like the United States of America, Canada, and France has this mix economic system, in this process, if one system does not work properly then other 2. 2 Assess the impact of fiscal and monetary policy on business organizations and their activities Government use fiscal policy fiscal revenue and expenditure of the Government. When the Government loans from abroad, it creates lower demand of goods and services. As domestic production decreases this lending policy from abroad can affect the related organization.

On the other hand organization can achieve better profits for the added capital when government cut of taxes In case of monetary policy process, thorough which government controls the supply of money within the country, most of the benefits come out when government can stabilize prices and keep page 9 of 17 unemployment rate low. As government keeps the interest rate low, people can lend more money. Thus the extra money they can put into production or in the business cycle which in return increases the profit of the organization. On the other hand higher interest rate does the vice versa. In this way controlling monetary policy government can affect the organization of the whole country. 2. 3 Influence of the policy of closure and other regulatory mechanisms on the activities of the Organization: The competition targets a market run on the boardwalk and promote better compete it the quality and price.

Thus competition contributes to a broader selection of clients in the market and offers the actual and effective price competition between suppliers. With the negotiation of World Trade Organization (WTFO), world leading trading nations signed and ratified in their parliaments. Main goal is to help producers of odds and services, as well as exporters and importers conduct their smooth business. Almost all people want to have their better interests in international trade. As a result international trade and marketing can be broken sooner or later. WTFO helps to prevent or mitigate the problems related to the pricing. Profit etc through their details investigation. WTFO also covers intellectual property, goods and services, principles of liberalizing and including exceptions.

The strengthened dispute settlement mechanism of the WTFO helps to strengthen to reduce the potential for unilateral and bilateral action outside the multilateral yester, proponents of the WTFO has long argued that the reduction of trade barriers will increase world trade, but there is hardly a rigorous Empirical research on the impact of WTFO or trade or trade policy, although a recent study shows that very little, if any, effects, in another study of the MIFF does not agree with this conclusion. Understanding of environmental Nags in the behavior of the market 3. 1 explain how market structures, determination of the price and output decisions of enterprises. Kiss explain the current situation and determine what correct structure would be helpful There are five types of market structure in the I-J, and they are following.

Perfect competition and perfect competition market Perfect competition market is one where a very large number of buyers and sellers, all distended in the purchase and sale of product, without any unnatural and has a perfect knowledge of the market at the time. With the Salaciousness words are “the structure of perfect competition market, total absence of rivalry between Individual price takers and where there is freedom of entry into and exit from the industry. ” The characteristics of perfect competition A large number of buyers and sellers Freedom of entrance and exit for enterprises Standardized products (each organization produces and sells a standardized product, so there is no buyer benefit for each individual product to the seller on the other).

The absence of the artificial limitations Perfect mobility of raw materials Thorough knowledge of market conditions The monopoly market Monopoly is Salvatore as a monopoly is a form of organization of the common market, are a number of characteristics of monopoly which ; There is only one seller ; All control on delivery of product is in the hands of a monopoly ; Under the monopoly, the organization itself is an industry; it can be a solo entrepreneur, partnership, CSS, and etc. ; There is no close substitute product monopoly. In the case of cross-border demand elasticity is, in any case, it is possible. ; There are restrictions on the entry of other companies in a product monopoly. Page 11 of 17 Duopoly Duopoly is a special case, the theory of oligopoly, where there are only two sellers and they are fully independent and conflict between them. Variations in price and will affect the performance of the other and the other bears the loss must meet the cost of the competitor. Oligopoly

Oligopoly is a market where there are several companies that sell or standardized various goods. It is difficult to say, the number of companies in the competition between the pair. A few problems on the market shares of the organization, as a rule, on the other. Oligopoly industry produces a standardized product or different products. This concept is called clean and spotless oligopoly and the last incomplete or oligopoly discrimination, called. Monopolistic competition Monopolistic competition refers to market conditions, when there are many companies that sell a variety of products. “There is a competition, with enthusiasm, UT not perfect, many companies produce very similar products.

No organization may not have to reveal the impact on policy, the export of other sellers or price can be very affected by their actions. Define monopolistic competition competition among a large number of Sell of close, but not perfect substitutes for each other. Range of examples. There are different forces which shape organizational responses to the market. Among them main five markets forces which can shape the responses are given below: Threat of a new entry: Any organization with innovative ideas, technologies and process can affect the existing organization. Threat of a new entry of Kingsbury is medium as the business process and environment relatively high barriers for any new entry.

Threat of substitute products: Represents a product obtained from industry replacements, perhaps in another area, in this case is the high compensation of marketing competitiveness as Morrison and page 12 of 17 Bargaining power of customers: There are a lot of supermarkets and brands, the customer has the right to choose a product or service that they want and need. In this case competitive price and better quality only can assure business success. Kingsbury are in better position with their price and quality though they have to face price war with Tests and also they face strong challenge from John Lewis and M&S regarding the quality. Bargaining power for suppliers: As there are large numbers of suppliers.

Collective bargaining in this situation is weak for the suppliers Rivalry: There is high competition due to large number of suppliers with different price and quality. Ginsburg has to compete both with the price and quality with the other competitor. Through their competency, Kingsbury have maintained their reputation ND strong position in the market. As a major retailer Kingsbury is well known throughout I-J. They are now is one of the best British dealers among the competitors. They also spread their operation USA. They is also planning to spread their market in Asia. Though Sunburst’s facing tough competition with other retailers, such as Tests and USDA, but as customers are getting smarter and aware about the quality with price, they are still in a strong position in the market.

As we know UK multicultural country with variety of nations, further market researched need to be done with the literature food habit, religion and cultures in order to hold the best position in the market. Page 13 of 17 Assessment of the meaning of global factors shaping national activities 4. 1 Discuss the importance of international trade for UK business organizations International trade covers trade between United Kingdom and the rest of the world. Any country will have e limited resources of goods, services without international trade. Trade relation between countries and cheap labor and sourcing from developing countries plays an important role in shaping national activities.

Business Environment

You may have noticed – through work experience or a part-time Job – the different types of resources that businesses use to perform effectively. These resources come from four different areas: human, physical, technological and financial. Human resources are anything that relates to people In the business – for example, staff and managers. Physical resources are those that are physically used by the business – for example, land, raw materials, buildings or equipment.

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Technological resources are those that make use of technology – for example, computers, software or systems. Financial resources are any aspects of the business relating to money, such as money owed to or by the business. It is essential for any business to control, manage and make the best use of these resources in order to achieve the best possible results.

This unit will help you to Investigate these resources by looking at how they are managed, what they are used for, how they can be sourced and finally the way In which data can be used to see if they are being used to their full potential. The unit starts by Investigating human resources and the way that people are recruited and allocated to different departments and teams. It then goes on to consider the use of technology volt the workplace and Its many Issues and benefits, including legal requirements to protect business ideas.

Knowing a bit more about how to manage people has been really useful- it has made me think about how I should treat my staff when I start my own business. I now know that giving incentives to my employees might be a useful way to motivate them. I really enjoyed the physical and financial resource aspects of this unit, and in particular the interpretation of the profit and loss and balance sheet. Math wasn’t my strength in school, but I think the business context has helped -I’m doing the sums for a reason. My recommendation to anyone studying this unit is not to be put off by the figures.

Approach them carefully and really apply them in the business situation. Understanding the accounting side of things also means that when people are talking about liquidity and cash flow on business programmer or on the news, I understand what they are talking about and take an interest. I’m now working towards an accounting qualification. Some people think that the most important resource in any organization is the unman resource. In two groups, have a whole-class discussion about this statement, with one half of the class supporting this view and the other opposing the view.

Which is the strongest argument? Steed’s own resources Human resources are managed in two main ways. First, it is important for organizations to recruit the right people, monitor them and then decide how they can best be used. Then resources have to be provided for these employees in order to maintain an effective business operation. Self-service scanning In 2009, Tests reported 25 per cent of all shopping at its stores was done through elf-scanning. At USDA, 3. 6 million customers used the self-checkout systems per week, which is an increase of 60 per cent from 2007. . What impact is self-scanning likely to have on the human resources required at 1. 1 Human resources Employees are a business’s human resource and need careful management. Unlike financial or physical resources, human resources need to be dealt with sensitively. If a machine is no longer useful, it could be thrown away or replaced. People cannot be treated in the same way because they are protected by legislation, so it is important o recruit, employ and Tests and USDA? 2. What are the advantages of this change in customer behavior? 3.

What are the disadvantages? 4. How should these businesses plan for the future? 5. Carry out research into other businesses that have included more self-service online or offline – for example, Iranian consider the impact on these treat them appropriately. More information on human resources can be found in Unit 13 Recruitment and selection in business (page 319). Staffing to meet changing business demands Suitably qualified staff may be recruited or they may be trained within the organization when they first Join in order to have the right level of skills.

The level and type of staffing also needs to change to keep up with the changing demands of the business, and this is likely to affect the number of employees needed and the skills that they need to have. Many businesses keep a Human Resource Information System (HEIRS) that stores computerized records of the training and experience that employees have. This helps the business to plan to expand or reduce (contract) the number of employees that they need. It can also help the business plan for the future – this is known as succession planning.

A Junior employee may receive management training to prepare them to take over the running of a team or businesses. If you find advantages or disadvantages that do not follow your own views, you could demonstrate your effective participation skills by arguing for or against these. Their needs change. You will study technological change in more detail later in this unit. Many businesses are changing the way that they trade and are making greater use of online methods of handling customers. This means that employees need training to be able to carry out different tasks. Key terms

Legislation – UK and EX. laws Succession planning – when employees are recruited and Co-ordination of team resources to meet targets As well as making sure that individual employees are managed within the organization, it is essential that resources are used effectively within teams to meet the targets that the company sets. Developed to fill each key role within the company There are a couple of common expressions used for team working: ‘there is no “l” in team’ and ‘the sum is only as good as the total of all the parts’. The team’s performance to make sure that they are actually making progress.

One ay to measure performance is for the business to monitor how closely the team has met targets. This might involve measuring sales figures, seeing how much the team has spent (under or over budget) or considering the number of customer complaints during a time period. Regular team meetings can give an indication of how the team members are feeling about their targets and if all is going well. Individual and team appraisals may be carried out to see what can be done to improve the way the team works together and sharing ideas can give the team themselves the opportunity to suggest how things can be improved.

Managing team working means monitoring a that all the team are performing equally and that no one is being lazy or working too hard. Sometimes managers give their employees incentives, such as a bonus or prize for achieving good results in a team. This helps to reward hardworking teams. The same is true of teams performing badly: managers would need to follow the disciplinary procedures to deal with a team that gets poor results or may even have to break up the team altogether. The resources might be skills within the team, experience or even financial resources that will help the team to achieve what it needs to.

Some organizations may appoint team leaders to help managers to look after team members on a day-to-day basis, so that the manager can Just oversee the whole process. Co-ordination of team resources may also involve deciding which members of the team can use training resources to improve the performance of the team and how this training can then be shared. As long as the team is working together in a co-ordinate way, then it should meet targets. Monologue of team performance Co-ordination a team is likely to mean that a company knows what employees should be doing to work towards their targets; but it is also essential to monitor

Why is it important to monitor not Just individual performance but also team performance? ;ales Liaison with other departments Large organizations may have hundreds of different teams working across the organization. Unless each is able to work with other teams and departments and co- ordinate as a whole organization, there will be conflict or unsatisfactory performance. Departments may be responsible for different functions within the business, such as finance, marketing or human resources, and each will need to work with the others to ensure the smooth running of the business.

One way to make sure that employees ark together effectively with other departments is to have jurisdictional teams, This means that members who are working at the same level in the organization are taken from each department so that they can work together to understand what each part of the business does, These teams do not have to meet epistemologically organizations choose to use virtual jurisdictional teams where employees meet over the Internet, using technology such as web conferencing, This type of team including AS and MM. Employees. Other organizations may allow activities or relationships to be brought onto the organization, An example of this is pub management, where Job vacancies are often advertised as for ‘couples’ rather than single people, Different formalities and work/personal life activities are Just part of managing human resources in the workplace.

The whole process is complex and it can be hard for management to be objective (that is, acting without letting their personal feelings and opinions affect situations), As well as taking into account personal relationships at work, it is also necessary to make it clear to employees whether or not they are allowed to work outside the organization in a second Job or do another Job in the evening, Taking on a second Job is known as ‘moonlighting’, Some employers are happy to allow their staff to take on another Job in a non-related capacity – for example, an office administrator working in a bar, Other employers may choose to ban such practices by writing express terms in their contract that require employees to ask permission before taking a second Job, This helps to protect an employer from employees taking business from them in the evening or not being able to cope with their usual working hours due to tiredness.

Establishment of professional culture Professional culture means the way that employees behave in the organization, including the level of formality that is used between employees, You will already have noticed differences in formality at social events you have been to, such as weddings or parties, or the different way that teachers speak to you if you have moved from school to college, The language and the way you address people changes depending on where you are; the same is true of business, Some businesses are very formal and managers will refer to each other using their title, such as Mr., Mrs. or Dry. Other organizations will only use first names, Professional culture may also relate to the unwritten expectations that an employer might have of its employees, such as whether or not people are expected to stay late in the office on a Friday or whether they can go home early. The same differences also occur within organizations when comparing work and personal lives, Some organizations make sure that people’s home lives and work lives are completely separate, This may include only having social activities for staff members and not their families, or discouraging relationships between

Providing appropriate incentives To manage human resources effectively, managers may decide to use incentives to encourage employees to work harder or to produce work of a higher quality, At school or college you may have noticed your tutors using incentives, such as allowing you to finish the lesson five minutes early if you have worked particularly hard, or giving prizes at the end of the year, Employers are the same; they need to think of different ways to encourage their employees to work harder (see Table 2, 1). It is most important that the incentives offered by an organization are appropriate for the Roth working for, they will Key term Incentives – additional rewards or payments that employers give to employees as a reward for working even harder or better Unit 2 Business resources Table 2. 1: Main ways of rewarding employees. Preternaturally pay Share schemes This is when an employee receives extra money for working harder, either as a one- off payment, such as a bonus, or an increase in their salary.

These are when; employees are offered shares in the company either freely or at a reduced rate, depending on company performance and how long they have worked there. Some organizations choose not to use pay as an incentive for employees but use treats to encourage staff to work harder. These treats might be anything from a voucher for a weekend in a health spa to giving employees microwaves or televisions. The treats may be awarded after appraisals or given on a points system so that employees can keep earning points to work towards the treat of their choice. Working hours or home-work balance Social events Employees with families or other outside commitments may prefer to have time off in lieu rather than extra money or treats.

Some organizations offer time off for good reference. This may mean being able to leave early on certain days or take extra holidays. Providing an office party or a trip to a sports game can also be an incentive for employees. As they can be used with whole departments of employees, these events can increase morale in the workplace, which leads to even more work being completed. These include other products that employees might find useful but are not considered treats. These might be free pension funds, insurance payments, discounts at retailers, free gym membership or free parking. All of these benefits can save the employee money. Useful benefits to work harder to get them.

To help make sure this does not happen, employers can provide a package of different incentives that employees can choose from; that way careful, when offering any incentives, to find out whether or not employees will need to pay tax on these benefits to the Inland Revenue. More businesses, but they will be smaller. Sometimes businesses start out small and become much larger by being creative and using initiative. Yahoo I is one welkin example. Outsourcing versus in-house decisions Organizations can either make use of their own services (in-house) or the services of external agencies doing work for them (outsourcing). You will need to be aware of the differences between these options and the issues and benefits associated with each. It may be more expensive to employ people within an organization to undertake project work or provide maintenance than to ask another company to do this work.

This is because the business will need to recruit these people, employ them on a contract, pay them for a given time, and provide them with benefits and office space or equipment. Outsourcing pushes all those issues across to the outsourcing company in exchange for a fee. Another reason that companies may outsource is if their employees in-house do not have the expertise and it would cost a lot of money to train or employ someone. Using another company to do this work means the organization can use workers as and when they are needed, rather than employing people permanently. Encouraging creativity and initiative Businesses that are able to change quickly and adapt to customer needs are more likely to be successful. This is now even more important because the Internet allows businesses to compete all over the world.

Two ways for businesses to become more adaptable include: ; ; being more creative showing initiative. This means that organizations allow their employees to develop new ideas and solutions so that they can get better and better. It is sometimes more difficult to develop new ideas quickly in larger organizations, because so many people are involved in the decision making. Some business people believe that smaller businesses find it easier to adapt and that in future there will be :ales Outsourcing can be used in many different ways to manage human resources for everything from recruiting employees in the first place to bringing cleaners in to keep he workplace clean and tidy.

Outsourcing has many advantages (for example, it may offer cost and/or time savings, frees up in-house resources, allows access to wider knowledge and skills) and disadvantages (for example, quality risks, lack of company knowledge, may risk security of company information) compared to having the work done in-house, so it is important to consider the reasons why outsourcing might be used and the length of the project involved. If this method is used carefully, it can be an effective way of working for a business, but it could result in higher costs for the equines than if the work had been done in-house. Fill another 1,600 roles during the spring and summer months. The company encourages temporary staff to keep returning by offering good training and other incentives. This helps to avoid some of the costs of recruiting new staff each year. In other organizations, such as the NASH, there is clear guidance for minimum staff levels based on ratios.

There may, for example, need to be one nurse for five patients on one ward or one nurse per patient on another. Getting the right number of staff for each ward is essential for the effective operation of that hospital. The skills of staff employed are also critical. There is no point having staff available if they are not qualified to do the Jobs that need to be carried out. There may also be a problem due to skills shortages in different sectors, which can prevent work from being carried out. You have already learned that it is important to have the right number of properly trained staff. Employees also need the resources to do their Jobs in order to allow the business to operate effectively.

You will learn more about the physical, technological and financial resources that are needed later on in this unit. However, initially it is important to consider four resources that are needed by workers for the business to operate successfully: ; ; ; ; equipment working capital facilities administration. 1. 2 Maintenance of operation Maintaining business operations is critical for any organization. Unless the business can carry out its day-to-day activities efficiently, it will lose customers or clients. Adequate resources to meet tasks Resources need to be available for employees and there must be sufficient employees using those resources to provide good service.