Summary BTEC Business Unit 1 Exploring Business Learning Aim A and B (Distinction)
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Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
P1 Explain the features of two contrasting businesses.
P2 Explain how two contrasting businesses are influenced by stakeholders.
P3 Explore the organisation structures, aims and objectives of two contrasting businesses.
M1 Assess the relationship and communication with stakeholders of two contra...
Unit 1:Exploring business
Name:Muhammed Abdul Saif
Candidate number: 017204
Centre number:10500
Features contributing to the success of HSBC and Cancer Research UK
Features of HSBC and Cancer Research UK (P1)
Introduction
In this report, I will be comparing HSBC and Cancer research and will also be explaining the
features of these two businesses. Cancer research is a charity that helps people with cancer
and is also attempting to discover the cure for cancer. They are currently based in the UK and
have not gone global as of yet.1 HSBC is currently one of the biggest banking organisations in
the world. They offer credit and debit card accounts to people and businesses. HSBC is a
worldwide business having coverage over 63 countries. 2
Features of a business
Ownership
In business, there are many types of business ownership. One form of business ownership is a
sole trader. Sole traders are self-employed people who run and fully own their businesses as an
individual. 3 Another type of business ownership is a partnership. This is when you and one or
multiple other individuals share responsibility for the business. By having a partnership the
people involved are all accountable for everything that happens in a business such as stock or
profits and losses.
A private limited company (PLC) is a business that is owned by multiple shareholders and the
business is run by directors. Also, the liability of shareholders for debts is set to a limit. 4. A public
limited company is quite similar to a private limited company but the difference is that shares of
the company can be sold to the public. HSBC is currently a public limited company that offers
shares to the public.
A cooperative is a business that is owned and controlled by its members to meet all their shared
needs. Members can come in different forms such as customers. Employees or even suppliers.5
Unlimited liability is when the business owners and partners have full legal responsibility for all
incoming debts which the business has caused. 6 Unlike unlimited liability, limited liability is a
legal structure where it ensures that the business's losses do business a certain number. This
ensures the business owner's personal assets owner's protected and are not put at any risk. 7
,Unit 1:Exploring business
Name:Muhammed Abdul Saif
Candidate number: 017204
Centre number:10500
Cancer research is a company limited by guarantee and is also a registered charity. 8 This
means that they do. This means that they have owners who are willing to pay a set amount of
money toward the company's debt. As they are a charity the owners agree to not take any
money out of the business as if they were to do this Cancer research would lose its title of being
a charity.9 If any money is made it will be used to reinvest into the charity where none of the
owners benefit financially.
HSBC is a public limited company which means that they are managed by directors and are
owned by shareholders. As they are PLC it means they can offer shares to the public here they
can own a small part of HSBC. 10 By being a public limited company it allows HSBC to sell
shares through the stock market. This means that they can get more money from people
purchasing shares. Technically HSBC has shareholders from all over the world as their shares
can be purchased from different parts of the world such as London, New York, and even Hong
Kong.
Profit vs Non-profit
A for-profit business is a business that has the intention to make more capital than what it had
initially invested in. The ability to be profitable is when a business is able to consistently
generate more income than its expenses. 11 A non profit business is when a business is created
with the intention to donate the income generated and to keep the business running. All
nonprofit businesses come in the form of charities where they generate money through people
donating to them where they will put the money given to a good cause. Some of the money
generated is used to keep the business running but never used to create any sort of profit.
Income is neither given to group members nor directors. 12
Cancer research is a non-profit organisation that helps fight cancer all over the UK. They work
with the intention of saving people’s lives who suffer from cancer and intend to make no money
,Unit 1:Exploring business
Name:Muhammed Abdul Saif
Candidate number: 017204
Centre number:10500
from all the charity work that they do. Although cancer research generates millions every year
they do not keep any of the money to themselves and reinvest that money into finding cures for
cancer. Cancer research generates its money through donations, events, and corporate
partnerships. They use this money towards the prevention of cancer for people all over the UK.
13
HSBC works with the intention of creating a banking service where they offer accounts to
customers where they can store their money. HSBC also offers business accounts for
businesses that wish to use HSBC so they can manage their finances. In the 3rd quarter of the
financial year, HSBC was able to generate a profit of $3.1 billion. They have also made a
staggering revenue of $14.3 billion with a 9.2% increase overall. 14 This shows that HSBC is a
very profitable business despite them only offering a service and not selling any physical
products to customers.
Purpose
The purpose of a business is to offer some sort of value to customers where they will be willing
to exchange money for the value you have got to offer. Value can come in the form of products
or services that businesses offer to consumers. 15 The money received from the goods or
services should cover the costs of business operations and provide enough to meet the life
needs of the business owner.
The purpose of Cancer research is to save people's lives by researching and finding cures for
cancer. They do this by generating money from the public where they use all the funds they
make for research and prevention for people getting any sort of cancer. 16 Cancer research
mainly aims to beat cancer once and for all and to ensure that no one gets cancer. This is a key
feature of a business as without a purpose there is no reason to start a business in the first
place. Cancer research has a powerful purpose which has led to them becoming the most
popular charity in the UK.
As HSBC is a bank its purpose is to offer many financial services such as loans, current
accounts, and savings accounts. For their loans, HSBC is able to make a profit as they charge
their customers with interest which means that customers must pay back the loans plus an
added interest fee. This comes in the form of a percentage of the loan taken. To further add by
customers missing repayments HSBC is able to charge customers extra fees which increases
the profit of HSBC. 17
, Unit 1:Exploring business
Name:Muhammed Abdul Saif
Candidate number: 017204
Centre number:10500
Industrial sector
The primary sector is businesses that produce or extract raw materials. For example, these
materials come in the form of fishing or farming. Primary sectors are key to all businesses as
this is the first step in creating a business's desired product. The secondary sector is the second
part of the production process as they make or manufacture goods. The businesses which do
this use the raw materials gathered from primary sector businesses which later on sell physically
to customers
There is another part of the industrial sector which is called the tertiary sector. These are
businesses that offer services to customers. This means the customer pays a fee for something
to be done for them and they do not receive anything physical in return.18
The final part of the industrial sector is the quaternary sector. This consists of the industries that
provide information services. For example, quaternary sector businesses come in the form of
ICT (information and communication technologies) consultancies or even AI (Artificial
intelligence) businesses. 19
Cancer research is currently in the quaternary sector as they provide lots of research into finding
the cure for cancer. They are developing and researching how people can prevent getting
cancer in the first place. Cancer research could also be in the tertiary sector. This is because
they offer services to people who have cancer.
HSBC is a business which is in the tertiary sector. This is because HSBC is a banking company
that offers various types of financial services. HSBC is also part of the quaternary sector as they
specialise in banking and financial services. This means that they have top knowledge when it
comes to finance which makes them part of the quaternary sector. 20People can consult them
when they want to know more about banking and finance as HSBC are experts on this.
Scope
The scope of a business is how large a business is. This is calculated by how much it costs for
the business to operate. The scope also refers to the objectives and requirements required to
complete a task for a business. This could be a task such as expanding internationally or
attracting new customers. Local businesses are businesses that sell within a small area, a city,
or a town. National businesses sell over a whole country. For example, they could have been
stored only in the UK. International businesses sell in multiple countries. Some of the very large
businesses operate all over the world.
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