BTEC Level 3 National Extended Diploma In Business
Exploring Business
Other
Unit 1 Assignment 1 (Exploring business)
9 views 0 purchase
Course
Exploring Business
Institution
PEARSON (PEARSON)
This document is a detailed report of Unit 1 Exploring business assignment 2. It will help you achieve a DISTINCTION in the subject as all criteria are met.
P1-Explain the features of two contrasting businesses.
P2-Explain how two contrasting businesses are influenced by stakeholders.
P3-Explo...
BTEC level 3 national extended diploma in business
Exploring Business
All documents for this subject (2)
Seller
Follow
jennivision
Content preview
Jennifer Quarcoopome 255254
Unit 1 Assignment 2
Introduction
For this assignment I will be exploring the features of two contrasting businesses which are Amazon
and Cancer Research Uk, explain how stakeholders influence them and lastly evaluate the reasons
for success of the two businesses by using the evidence and research I’ve gathered.
In this section I will be explaining the features of both Amazon and Cancer Research Uk. I will include
their purpose, ownership and liability, sector, scope and size.
Amazon is a multinational internet-based organisation which focuses on artificial intelligence, cloud
computing and digital streaming. They have an Ecommerce platform where they sell a variety of
goods such as digital books, music, movies, house appliances, electronics, toys and much more.
Ownership and liability
Amazon is an organisation in the private sector, so the success of the organisation depends on
whether the business makes a profit or not, this is because businesses that are part of the private
sector are profit driven. Amazon is a public limited company, so the company’s shares are sold
publicly on the stock exchange, this means that Amazon has multiple shareholders and has no
government involvement or ownership. The features of a private limited company are that they are
owned and controlled by shareholders so any member of the public can purchase their shares and
receive dividends. Private limited companies also have limited liability so that means the owners are
not responsible for any debts. If the business is in debt or goes bankrupt, personal possessions are
not at risk. The only thing that will be lost are the shares in the business. Another feature is that they
can ask the bank for large loans, this is good because it means that they have a chance to expand
their organisation even further. Finally, huge capital can be raised through selling shares to the
public.
Scope of business
A scope of a business is about understanding whether a business activities are local, national or
international.
,Local: Local businesses sell their products and services within their own community, town, city or
region. Examples of local businesses include barbers, hair salons, chip shops and corner shops. Since
local companies have few locations where they sell their products they find it extremely difficult to
collaborate or compete with big brands especially in terms of pricing. So, in order to gain customer
loyalty they focus on providing high quality customer service to make customers come back and
shop from them again.
National: National businesses have a lot more locations than local businesses because they sell their
products and services on a national scale so they have access to much bigger markets and can
provide their customers with a wide range of different products to meet their wants and needs.
International: An international business sells its products and services worldwide. This means that
they have a very large customer base compared to local and national businesses and their products
are easily recognisable and trusted by the public so it’s a lot easier for them to generate sales and
increase revenue.
Amazon is an international business because they offer services on a national scale and have access
to new customers in markets outside their core location.
Purpose
The purpose of Amazon is to supply tangible and intangible products to its customers.
Amazon’s mission statement is “We strive to offer our customers the lowest possible prices, the best
available selection, and the utmost convenience”. Amazon Mission Statement 2022 | Amazon
Mission & Vision Analysis (mission-statement.com)
From this mission statement, it is clear that Amazon's purpose is to provide their customers with the
best offers. They can spread this message across because they offer:
• Affordable prices
They are able to offer their consumers the best costs while maintaining the greatest quality
of their items.
• Varied selection
Amazon sells a large variety of products from many markets, giving buyers the assurance
that they will be able to locate whatever they need. One of the key reasons for Amazon's
popularity is that they have developed a platform where users can simply find anything that
comes to mind.
• Top convenience
Amazon places a premium on its online shopping experience because they recognise that it
is the most common and convenient option for their customers to access and buy for their
products and services from the comfort of their own homes. Furthermore, Amazon works
with dependable partners to fulfil purchases as quickly as possible.
Size
Businesses come in 4 sizes: Micro, small, medium and large. Micro businesses are organisations that
have less than 10 employees and earn less than £250,000 in annual sales. A small business have
between 10 and 49 employees. A medium sized business has between 50 and 249 employees. A
large business has more than 250 employees.
Amazon is a large business because they have 1,608,000 employees that work for them, and their
revenue is of £232,9 billion.
, Sector
Primary sector: Extraction of raw materials or natural resources such as mining, coal, fishing,
farming or oil production
Secondary sector: It's all about turning raw materials into finished goods that can then be sold to
businesses. Food manufacturing enterprises, automobile manufacturers, and construction
companies are examples of secondary sector industries.
Tertiary sector: It involves selling finished goods to consumers directly in stores like Ikea and
Primark, or supplying a service, such as banking and telecommunications.
Quaternary sector: It provides information services such as ICT, research and development, and
consulting, and is also known as the knowledge-based sector.
They are able to sell directly to clients since they are a direct seller. Amazon is classified as a tertiary
sector company, which means that they have manufacturers who produce their products and then
sell them directly to customers via their website.
Cancer research Uk
Cancer research Uk is a cancer research awareness charity in the United Kingdom and was founded
on the 4th of February 2002.
Ownership and liability
Cancer research Uk is a not-for-profit organisation meaning that they have different objectives other
than making a profit. Examples of objectives that a not-for-profit organisation could have to help a
good cause is to raise funds for research in order to limit the amount of people dying from cancer.
The features of a not-for-profit organisation is that they are not profit driven, this means that they
mostly care about the community, and they are funded to fight for a specific issue that affects the
population. Although they are not profit driven, they still try to raise as many funds to have the
greatest possible resources to support their cause and provide assistance. A not-for-profit
organisation is fun and is made for the advantage of the public. Other features of a not-for-profit
organisation is that the revenue is reinvested back into the organisation to meet their aims.
Trustees of a charity have limited or no liability so that means if the organisation was to go bankrupt
the owner’s personal assets are not at risk. Not for profit organisations also don’t have to pay any
taxes because they have additional government support such as tax exemption. Cancer research is a
charity meaning the benefits they receive cannot be used on their members. In a not-for-profit
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jennivision. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.97. You're not tied to anything after your purchase.
