BTEC Business Level 3 Unit 1: Exploring Business(Distinction) FULL
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Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
THIS DOCUMENT IS TO BE USED STRICTLY AS A GUIDE/STRUCTURE. Please do not copy the content of this documents. BTEC Business Level 3: Assignment 1 - Unit 1: Exploring Business.
A distinction was achieved on this assignment. It is easy to understand and has a very good structure to follow.
This cov...
Describe the features between of two contrasting businesses
The features of business
In this task I will be exploring the features of a public limited
company and a non-for-profit organisation. I will be exploring the
history, ownership, liability, purpose and industrial sector of the
two contrasting organisations.
Tesco PLC
Ownership:
Tesco is a public limited company
The major stakeholders of Tesco are Blackrock who are currently holding
6.64% of the company, Norges Bank with 4.03% and Schroders plc with
4.99%.
Tesco is a global scale organisation as today tesco operates in over 14
markets across Europe, Asia and North America. Tesco has over 300,000
employers and over 2,900 stores and it is a public limited company, a plc
is a company which sells/trades to the public. Their main purpose is to
maximise profits but other aims and objectives are to provide goods and
services that are cheap and affordable to the public, to maximise sales, to
grow and maintain the number on retail in the UK and to outshine the
competitors such as Sainsbury and Asda and remain the market leader.
Tesco is owned by multiple people and this is because it is a plc and is
owned by stakeholders who fund the company.The advantages of the
type of ownership tesco has is that tesco can raise a large capital sum as
there is no limit to the number of stakeholders, the disadvantage is that
the main owners main end up losing control, there are strict control and
regulation to comply in order to protect the interest.
Liability: Tesco is a public limited company,since it is a public limited
company it has limited liability, limited liability means that is where a
person’s financial liability is limited by a sum, for example if Tesco goes
bankrupt they can claim a limited amount in order to pay the employers
so if they have to pay the employers £100,000 the government might
give them £50,000 and Tesco will have to pay the rest from their pocket.
,Purpose: Tesco has many purposes, one of their purposes is to make
profit and not go bankrupt, another purpose would be to help people save
money by selling their products cheaper than other companies do, to
maximise, to maintain the number of retail in the UK, to outshine
competitors and remain the market leader . Tesco also is a secondary
based company which means that they do some products themselves and
it is cheaper than any other products they sell.
Their objectives are SMART as they want to make profit but also help
people spend less money. Let’s say that for example Tesco wants to make
£1 billion in a year, this is a specific goal, it is measurable and they can
check it very often and they have a specific time allocated to it, it is
achievable because tesco is a very popular company, it is realistic and
time effective as well.
Size and scale: Tesco is the largest british retailer by both global sales
and domestic market share is the world’s third-largest grocery retailer.
Tesco controls over 30% of the UK's grocery market and this is almost as
much as his rivals Asda and Sainsbury combined market share. Tesco has
over 300,000 employers.
Oxfam
Ownership: Oxfam is an international charity that works with businesses
who are big and small in order to address global poverty. It is an
international association of 14 organisations, who are the trustees of the
organisation working in over 100 countries in order to find long lasting
solutions to poverty and any injustices therefore it is owned by many
people. They help the poor but sometimes they don’t have that much
cash in order to help those who need it the most.
Oxfam have a flat organisational structure meaning their aims can be
done quicker as there are not too many levels to the organisation that the
information has to go through in order to be carried out. However the
chief executive has a big span of control as they control the children and
family services, finance and corporate service fund-raising and
publications which they report back to the board of management.
Liability: Oxfam has limited liability meaning that the embers of the
company are liable for the company’s debts or liabilities.
Purpose: Oxfam’s purpose is working with thousands of local partners
organisations, they work with people living in poverty who are striving to
take control of their own lives and assert their dignity as human beings;
, their aims and objectives are : to relieve poverty, distress and suffering;
to educate people about the nature, causes and effects of poverty; to
campaign for a fairer world and to aid third world countries in any
possible way.
Size and scale: Oxfam is a pretty big confederation of 20 national
organisations working together to fight poverty, it’s causes and effects.
How is each business influenced by internal and external
stakeholders? Assess each company’s relationship and
communication with their stakeholders, are these good or bad?
Tesco plc
Internal Stakeholders- Managers/employers/staff can affect the company
very badly too. The employers are the first to have contact with the
customers so if a customer has a question about the organisation the
employers have to be able to answer it and in case of a problem they
need to help the customers to the best of their abilities for a good
customer service. They could also recommend other products to the
customers.The employers can also influence the success of the company
by their productivity and efficiency on the job but they can also resort to
industrial action if they disagree with the working conditions, pay or
company policies and this can lead to a strike.
Shareholders could easily influence a business because they hold voting
rights on major decisions and Tesco has an annual meeting where
shareholders can voice concerns and feedback.
External Stakeholders- Customers contribute to profit levels and
turnovers by buying products or services. Customers will not want to
spend a lot of money so if Tesco sells cheaper products than any other
retailer they will attract more people. Tesco survives off a customer’s
loyalty so they want to ensure they get regular customers by giving
loyalty cards and different types of promotions. Another external
stakeholders are the suppliers which can choose to raise the price they
want for their product which would affect tesco’s profit or they might not
be reliable enough and Tesco might get the product late which means that
Tesco might not be able to get the product our to the customer in time.
They could also change credit terms which may have cash flow issues the
company or decide whether or not to allow discounts for bulk orders or
loyal customers. They are as important as any other stakeholder as they
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