P1- Explain the features of two contrasting businesses.
Marks and Spencer
Marks and Spencer Group (PLC) also known as M&S is a major British multinational retailer
headquartered in Westminster, London that specialises in selling premium high-quality clothing,
home and food products. It was founded by Michael Marks and Thomas Spencer in Leeds during
1884. M&S currently has 959 stores across the UK including 615 that sell food products only.
Ownership
Marks and Spencer are a public limited company. This means that they are able to sell shares on the
stock market so M&S has more than one owner as it has shareholders who can buy and sell shares
on the stock market. Being a PLC suggests making a profit is significant to them as they need to pay
their shareholders dividends.
Advantages of being a PLC-
There is no limit to the amount of shareholders Marks and Spencer is able to have, meaning
they can raise larger amounts of capital if necessary from existing and external investors.
If a shareholder chooses to decide to leave the company, M&S will still continue to be in
business.
Shareholders have limited liability which means if the company gets sued, their personal
assets such as bank accounts are protected. They will only be liable for debt according to
their levels of investment.
Disadvantages of being a PLC-
Considering the fact that M&S have a numerous number of shareholders, they would all be
giving ideas on how to improve the business. Therefore, the original owners could lose
ownership and control of the business.
They have to release all main annual accounts to the public which means there is a greater
chance of scrutiny of the company’s financial performance and actions.
M&S has the potential to be taken over if the majority of shareholders agree to bid which
suggests the company’s culture may change.
Liability
Marks and Spencer have limited liability because as a company who has multiple shareholders, they
are responsible for any debt only to the extent of capital they invested.
Purpose
M&S have introduced Plan A that is a mission act to become a sustainable, international, multi-
channel retailer. It helps them to better their service by maintaining high levels of customer trust
and employee engagement. Plan A is set to inspire and engage the millions of people who visit M&S
worldwide each week by helping to deliver their core purpose which is simple: Enhancing lives. Every
day, from purchasing their huge range of various products.
Sector
Marks and Spencer are in the private sector suggesting that it is not controlled or owned by the
government but rather it is run by individuals for the purpose of making profit. In addition, M&S
belongs in the tertiary sector as it provides a retailing service to consumers by selling finished goods
such as clothing and food. M&S is also in the secondary sector as they manufacture and produce
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