Essay
BTEC Business Unit 1: Assignment 1 (DISTINCTION*)
- Module
- Unit 1 - Exploring Business
- Institution
- PEARSON (PEARSON)
UNIT 1 BTEC BUSINESS LEVEL 3
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Assignment 1: Features contributing to the success of contrasting businessThere could be a range of different reasons as to why various entrepreneurs have chosen to create a
business, however the vast majority of businesses exist in order to earn a substantial return for the
owner of the business. However, not all businesses exist for this reason some businesses exist for
the sole purpose of benefitting the rest of society. This is usually either a public sector business
(Police, Fire Fighters and Hospitals) or a non for profit organisation (Social Enterprise) which exists to
help others that may be going through a difficult period in their lives.
Within this assignment I have been asked to research by my local council is to collect information on
two businesses with two contrasting agendas. For this assignment I have selected both Tesco’s and
IGMT. The reason I have chosen these two companies is due to the fact that Tesco displays qualities
of a company whose main aims and objectives are in order to create a profit. In contrast IGMT
(Ironbridge Museum Trust) aims to preserve and interpret the various different historical sites within
Ironbridge Gorge.
P1 – Explain the features of two contrasting businesses.
The following section of this report will identify and explain the main features of two contrasting
businesses. The businesses which are being used for the basis of this report are Tesco and Ironbridge
Gorge Museums Trust.
Tesco is a British public limited company operating within the private sector focused on the sales of
groceries and general merchandise on a multinational scale. This means Tesco operates as a retailer
therefore its core activity places it within the tertiary sector. Tesco’s was founded in 1919 by Jack
Cohan and their product portfolio includes food beverages, clothing, home appliances, and financial
services. (www.statista.com). Tesco’s is known as being one of the biggest supermarkets in the UK
and the republic of Ireland with 3,961 stores in total and operated in 14 markets across Europe, Asia
and North America. The size of a business is usually determined by the number of employees. A
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,micro business contains up to 9 staff members. A “small business” contains between 10 and 49 staff.
A medium sized business contains between 50 and 249 staff and any company with a number of
employees beyond this is determined as being a large company. Due to the fact that Tesco contains
more than 460,000 staff internationally it is classified as being a large company.
As mentioned previously Tesco is a public limited company. This means that Tesco operates within
the private sector due to the fact that business operations are decided by the majority shareholder.
Due to being a public limited company this means that Tesco’s shareholders have limited liability.
This is due to the fact that a business operating as a PLC or an LTD have their own separate legal
identity. This is an irrefutable benefit to being a shareholder of the company due to the fact that this
means that by investing in the company you will be expecting returns based on the percentage of
profit the business earns without any repercussions, if the business were to fail and reach a state of
bankruptcy.
Tesco raises additional finances to grow and expand through a number of different ways. One of the
ways that Tesco raises additional finances to grow and expand is through selling shares of their
company. Once shares are bought although returns must be given this means that the business can
continue to function through the sales of their products in the moment. This could be extremely
beneficial to the company if the money is used in an efficient way which results in the increase of the
business’s overall profits. Another way in which Tesco raises its finances is by selling some of their
stores in order to invest the money back into the company. In 2004 Tesco raised a total of £773m in
order to fund their growth in total. By promoting their brand Tesco has built up their brand
reputation of being customer focused as a result over time they have managed to build a loyal
customer base. (www.theguardian.com/business/2004/jan/14/supermarkets.tesco).
The main purpose of Tesco is in order to provide goods and services to the general public which are
cheap and affordable in order to earn customer loyalty and satisfaction. Along with being a private
sector business it is also a tertiary sector business which means that it aims provides a range of
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,different services to the general population such as sales, transportation and distribution. The idea
of Tesco first sprang to mind when Jack Cohen began selling groceries from a stall in East London.
Jack Cohen made a profit of £1 from sales of £4. The name Tesco’s appeared 5 years after this event
in his life where he brought some tea from T.E Stockwell. The initials were then combined to form
Tesco. (https://www.telegraph.co.uk/finance/markets/2788089/A-history-of-Tesco-The-rise-of-
Britains-biggest-supermarket.html). Tesco’s product range has been altered over the years. This is
clearly seen through the fact that in the beginning they were focused on selling groceries for cheap
and affordable prices. However in 2003, Tesco Mobile was brought into fruition, this is just one of
the many ways that Tesco has diversifying their market in order to appeal to a wider audience.
I believe that one of the most significant factors in the success of Tesco is not just the fact that they
have cheap and affordable prices for the general public but also the Tesco Clubcard. The idea of a
loyalty scheme is not necessarily new, however Tesco collected raw data on what people were
buying and turned it into an idea in order to obtain a larger profit. This is because as they collect
more and more points it means that they can have a range of different products for cheaper. This led
to an economic boom during the 1990s for Tesco as more and more people began to purchase from
Tesco’s in order to get their essential products for cheaper. Another key factor was when Tesco’s
went online, this is essential as they have 20,000,000 customers visiting the site each month. This
proves that perhaps they would not be as large of a company as they are now if it wasn’t for the fact
that they advanced along with the rest of their competition by allowing online shopping. They also
created a smaller format for their stores. This ensured that there were even Tesco stores locally so
that they could further expand their customer base. Due to these key reasons it is no wonder that
Tesco has managed to continue stand out from the rest of the competition.
Ironbridge Gorge Museum Trust
The Ironbridge Museum Trust is a non for profit charity organisation which works for no money and
aims to preserve and interpret the various historical sites within Ironbridge from the industrial
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, revolution. The Ironbridge Museum Trust was established in 1968 and is well known for the work of
preserving the Ironbridge after which the Ironbridge was declared a World Heritage Site in 1986 by
UNESCO.
The Ironbridge Gorge Museum trust works on a local scale which means that the operations
conducted by the business are solely done within Telford & Wrekin council. There are ten sites run
by the Ironbridge Museum Trust (IGMT) in total. These sites include Blists Hill Victorian Town,
Broseley Pipeworks, Coalbrookdale Museum of Iron, Coalport China Museum and more.
Due to the fact that the IGMT is a charity organisation which runs independently from the
government it is would be classed as a voluntary sector business. As it is a charity it is not owned by
any individual and the assets are held by trusted individuals known as a board of trustees. These
very trustees are then responsible for ensuring that the charities are well run in order to deliver their
charitable purposes for the benefit of the public. The board of trustees have limited liability. This
could be seen as a benefit in one sense due to the fact if an issue occurs they only have to pay the
partial payment. However, it could also have a negative effect on the business. This means that if
they were to conduct unethical practices and hoard money the entire charity would be held
accountable for their actions and suffer as a result. In the case that IGMT would need to raise
additional finances in order to preserve its sites and put on additional fundraising activities they
would raise money using a variety of different methods. This includes selling products, sponsoring
events and advertising in order to bring in more donations.
IGMT’s core activity involves the preservation of sites within Telford & Wrekin which carried an
impact during the industrial revolution. The IGMT belongs to the tertiary sector this is due to the fact
they are providing goods and services for the general public even in the case they are not necessarily
profiting in anyway shape or form.
The reason for the IGMT’s was originally in order to preserve the valuable piece of history from the
Industrial Revolution known as the Ironbridge. However, now it aims to perverse other relics from
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