This is the full BTEC Business Unit 1 Assignment 1 - Introduction to Business Coursework document. This candidate received a Distinction mark for this assignment.
Introduction
In this report I will be discussing how businesses are affected by certain groups of
stakeholders as well as what makes the business successful and how they are
organised.
Business Features
Introduction to Amazon
Amazon is an American multinational technology company which focuses on e-
commerce, cloud computing, digital streaming and artificial intelligence. Amazon is also
a vast Internet-based enterprise that sells books, music, movies, housewares,
electronics, toys, and many other goods, either directly or as the middleman between
other retailers and Amazon's millions of customers. One of Amazon’s most popular
feature is Amazon Prime, which is a big customer acquisition tool for Amazon. Once
registered a customer will keep coming back to Amazon as they are paying for a
specific service. This results in more sales for Amazon. Amazon also has excellent
customer service as well as an excellent supply chain. Most of the products Amazon
sells never run out of stock unless it is a trendy product with a very high demand.
Ownership and liability
Amazon is a private company, having a lot of shareholders owning a percentage of the
company. With a 26% ownership, the general public have some degree of sway over
Amazon. While this size of ownership may not be enough to sway a policy decision in
their favour, they can still make a collective impact on company policies. Amazon is a
limited liability company. The main purpose of a Limited Liability Company is to reduce
the legal liability of the company's owners in the event of a lawsuit.
Advantages and disadvantages of the type of ownership?
Some advantages of private ownership of a company are that there is undisputed
ownership, meaning that you have total control over your company. You do not have to
report to a board of directors or company officers. Another advantage is that there is a
limited disclosure, meaning that your company does not need to file informational or
financial documents with federal regulatory agencies like the Securities and Exchange
Commission. Some disadvantages of private ownership of a company are that there is
limited capital. This means that you cannot sell your stock to the general public through
a national exchange such as NYSE or NASDAQ. Another disadvantage is that there is a
personal liability disadvantage. This means that you have unlimited liability if your
, Unit 1 Assignment 1
privately-owned business is a sole proprietorship or general partnership. Both of these
business entities do not protect you from creditor claims or lawsuits.
Does Amazon have a limited or unlimited liability?
Amazon has limited liability. The main purpose of a Limited Liability Company is to
reduce the legal liability of the company's owners in the event of a lawsuit. Another
reason why big companies like Amazon set up multiple subsidiaries is to have separate
legal entities dedicated to various services/products/business operations.
Purpose of Amazon
Amazon aims to be the Earth’s most customer-centric company. Their mission is to
continually raise the bar of the customer experience by using tech and the internet and
technology to help consumers find, discover and buy anything, and empower
businesses and content creators to maximise their success.
Sector, Scope and Size
Amazon is in the tertiary sector. This means that Amazon operates worldwide in many
different countries providing their products and services to customers all over the world.
Amazon is an international business, operating in almost every country in the world.
This means that they have a wide customer base across many countries and
continents. Amazon is a large business, operating in almost every country on Earth.
This shows how successful Amazon is, as they are providing their products and
services to almost every country on the planet.
Bibliography/References
US About Amazon. (2018). US About Amazon. [online] Available at:
https://www.aboutamazon.com
Huntington, M. (2019). The Difference between Limited & Unlimited Liability.
[online] Small Business - Chron.com. Available at:
https://smallbusiness.chron.com/difference-between-limited-unlimited-liability-
61771.html
simplywall.st. (n.d.). What Is The Ownership Structure Like For Amazon.com,
Inc. (NASDAQ:AMZN)? [online] Available at:
https://simplywall.st/stocks/us/retail/nasdaq-amzn/amazoncom/news/what-is-the-
ownership-structure-like-for-amazon-com-inc-nasdaqamzn
Amazon (n.d.). Our mission. [online] UK About Amazon. Available at:
https://www.aboutamazon.co.uk/uk-investment/our-mission
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