UNIT 1 ASSIGNMENT
P1/P3/ M2 Features contributing to the success of two contrasting businesses.
Introduction
I have been accepted to the economic development unit (EDU) to research and collect information
about two contrasting businesses and produce a report. In this report, I will be analysing two
contrasting businesses and their features, it scopes of activities, ownership, liability, sector, and size
of each business. I have chosen one voluntary sector of business also known as not for profit, this
type of business is created, organised, and run by volunteers, also with a public sector business
known for profit-making, in which case are North face and NSPCC (National Society for the
Prevention of Cruelty to Children) I will be talking about the features of these businesses and what
makes them successful, also looking at its organization structure, the business aims and objective.
Furthermore, I will be looking at some suggested key features in the business and later their
stakeholders, the communication between them and the influence they have on the businesses and
its reason for success.
Suggested different key features of both businesses (North face and NSPCC)
Company introduction
Mission statement
Aims and objectives
Main purpose
Ownership and liability
Size of business
Business sector
Exploring business activity
North face introduction: The name North face originates from the most
noteworthy, coldest, and additionally testing aspect of any mountain on the planet. The
company is a subsidiary company, has been in existence since 1966, whose interest is owned by
another company, the VF cooperation, which was acquired in 2000 in a deal worth 25.4 million
pounds by Kenneth hap Klopp. it has its headquartered in Alameda California US. The company
is an American outdoor recreation company, the business is also a manufacturer and distributor
of high-grade equipment used in mountaineering, backpacking, and skiing, and has over 5000
stores across different countries.
Mission statement: “Built on innovation the company mission never changed since 1966:
Provide the best gear for our athletes and the modern-day explorer, support the
preservation of the outdoors, and inspire a global movement of exploration”. This help
guides a business aim and objective and informs customers what they expect from the firm.
It also shows the purpose of being in the business industry.
Aims and objective of the North face:
To disrupt the outdoor industry
The Forbes shows an excellent article on this: the article tells about how the north
outdoor recreational outdoor clothing helps the human body, explain how the North
face a subsidiary of VF corporation introduced a new waterproof, breathable
, material is used to produce their product to satisfy customers expectation, using one
of the famous fabric “Gore-Tex” used in producing quality waterproof fabric which
they also used In producing its products which also helps avoid the wearer from
getting soaked.
Main purpose: the north face a subsidiary company of VF corporation, the company might
not be driven by profit, but want to be able to provide a quality product that appeals to
their customers and be able to survive in the market. The brand was known for the only
premium brand for outdoor activities. Looking at how the company started its first sales
started with backpacks and one coat, the sierra parka in 1974. But what they had in mind
never changed. They also produced a tent which had thermal resistance and was not heavy,
making it easy to carry about. Reflecting on the company mission statement that says, “Built
on innovation the company mission never changed since 1966: Provide the best gear for our
athletes and the modern-day explorer, support the preservation of the outdoors, and
inspire a global movement of exploration”. Making it known that innovation was not limited
to tents alone.
The north face also loved using Gore-Tex a famous waterproof fabric, making it a
predominant in its products and not just appealing to potential customers, but want to be
able to deliver the best quality product for them.
North face ownership and liability: the north Is a subsidiary company of VF corporation
meaning it is controlled by another company, the company is a public limited company
which means it stock are traded on the NYSE (New York stock exchange) as VFC S&P 500
(S&P is a stock market index that measures the performance of 500 large companies in the
United State). The company controls 55% of the US backpack market with Jan Sport, East
Pak, timberland, and north face. (“Being in control of the entire production process helps
to ...”) The organization is qualified for a base offer capital of £50,000.
The north face® has a limited liability meaning the company is limited to how funds are
being managed in the business and are legally responsible for its debts and liabilities. The
advantage that north face have is there is a limited liability for north face and all its
shareholder which makes it easier for the brand to raise fund. However, the business cannot
make a business decision instantly as the would need to confront the company director and
key shareholders in the business.
North face size of business: the north face: VF corporation has a chain of 5000 stores across 50
different countries, being a global brand with teams in New Zealand, Australia, USA, Canada,
Germany, France, and Switzerland, which several other subsidiary companies that the company
controls which include: Timberland, Jan Sport, vans, East Pak, and icebreaker. The company also
have 3000 employees making it the third on the list among its competitors. As of 2019, the VF
corporation was able to generate a revenue of $ 13. 8 billons. However, of recent the VF corporation
a parent company to north face issued its first Q1 2019 report, it saw a revenue drop due to
coronavirus pandemic, reaching a 50% decline down to USD 1.1 billion.
North face business sector:
The north face® the parent company to VF corporation, operate under the tertiary and secondary
sector, it retails which provides thousands of physical products, where it then sold to a final
consumer to make a profit from it. However, its parent company VF Corporation owns over 30
