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M1 – Analyse the type of business, purpose and ownership of two contrasting businesses

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This document contains the analysis of ASDA and the British Heart Foundation.

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  • July 6, 2017
  • 4
  • 2016/2017
  • Case
  • Unknown
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M1 – Analyse the type of business, purpose and ownership of two contrasting businesses

Business: ASDA

Advantages

Multinational – There are many advantages for being a multinational company one of them
being the jobs that they can create in various other countries other than the one the
headquarters of the business is situated. For ASDA this is a bonus as it shows that their
business creates jobs across the world helping improve the reputation and overall becoming
an improved company.

Public – With ASDA being a public company, it gives the company many advantages one
being that the business is given more funds due to the business budget also being added to
from the public as the company sells its shares on the stock market allowing the company to
grow a lot faster than a private company. ASDA being public allows the liability is limited for
the members of the public company.

Tertiary – The tertiary sector of a business has many advantages especially if the primary
company is in full control of the sector. For example, ASDA being the tertiary sector of their
business it allows the company to create many various jobs that have a range of experience
within the available job positions as some parts of the company allow people (younger
people) with no work experience ASDA can give them a job. There are also jobs created by
ASDA that require a lot of work experience which create jobs for the more skilled worker;
ASDA creating as many jobs as it does allows the company do largely help the economy of
which location the store is in.

Disadvantages

Multinational – A company being multinational also comes with many flaws, one being that
the company can be found to be creating many jobs, but many of those jobs being for
unskilled workers, which allows the company to pay very little/ close the minimum wage to
these workers. This is taking advantage of people who have less work experience and can
give the company a bad reputation. ASDA does supply many jobs that require little if any
experience needed, however ASDA is not known for paying too little to their younger and
older workers. Whereas on the other hand a company such as Sports Direct was forced to
up their wages for workers who are under the age of 18. This is because the company were
paying next to minimum wage and as they employ many people under the age of 18, this is
the company taking advantage of the younger generation as it allows the store to make a lot
more money than it pays its employees.

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