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Summary D1 BTEC Business Level 3 Unit 1 Exploring Business
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D1 BTEC Business Level 3 Unit 1 Exploring Business
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Unit 1: Exploring Business Narges AhmadiLearning Aim A: To explore the features of different businesses and what makes them
successful.
D1
Task: To evaluate the reasons for the success of two contrasting businesses, reflecting on
evidence gathered.
Introduction
I'm going to discuss the two contrasting businesses, Marks and Spencer's, and the National
Cruelty to Children Prevention Society. I am going to talk about how good their company is
and what makes them successful.
M&S Recent Performance
The 2008/9 recession had a major effect on Marks and Spencer's. Marks and Spencer's
company was thriving until the recession of 2008/9. It reported that the company of Marks
and Spencer lost about 30 percent of their income due to the recession, according to The
Guardian article in 2008. Their income was £297.8 million in 2008, but £451.8 million in the
year before their earnings. That year, Marks and Spencer nearly lost half their earnings.
They have, however, managed to pick themselves up from the rough times and get their
company back on track. While they have managed to pick up themselves since the recession,
to this day their company is still affected by it. In particular, companies in the industrialised
Western world.
Six years later, after the recession hit Marks and Spencer, their company got back on track
and profits again looked fair. In 2015, Marks and Spencer 's made a £661.2 million group
profit before changes and tax, which rose by 6.1 percent from the previous year. The
organisation looked safe and successful. In my view, because of their food business, which
had a turnover of £ 5.2 billion, which rose by 3.4 percent from 2014, the company was
effective during 2015.
,One would argue that the success of companies was also influenced by the clothing and home
industry, but I believe it was mostly focused on the food industry, in my view. This is because
the clothing and home industry created £ 4 billion in annual sales, which decreased by 2.5
percent from 2014. The apparel and the home industry also contributed to the overall success
of the company, although the figure was not as high as the food revenue. This then left the
group 's sales for 2015 at £10.3 billion. Marks and Spencer's had 852 UK stores and 480
international shops in 59 territories during 2015. Overall, in 2015, the company was
successful.
Marks and Spencer's also seemed to be doing well in 2016 and the food industry was
booming and highly profitable. Food profits rose by 3.6% and jumped from £5.2 billion to £
5.4 billion. This led to the success of the companies that year because of the rise in food
industry revenue. Profit before changes and taxes for the company group rose by 3.5 percent
and for the year sat at £684.1 million. There was a big decline in the clothing and home
industry and it didn't seem to be doing well. Clothing and household income was £3.9 billion,
which declined by 2.2% compared to the previous year.
The food industry was compensating for the losses in the clothing and home industry, one
might claim. I believe in my view that the company was still competitive in this era and
collapsed. I believe that the increase in the number of stores in the United Kingdom, which is
now sitting at 914, was another reason for Marks and Spencer 's success. The number of UK
shops rose by 62. The number of international stores, however, has declined to 468 and is
actually in just 58 territories.
The food industry was thriving and highly profitable in 2016. Marks and Spencer's also
seemed to be doing well. Food revenue rose by 3.6%, rising from £5.2 billion to £ 5.4 billion.
This contributed to the success of companies that year because of the increase in food
industry sales. Profit before adjustments and taxes for the business group increased by 3.5
percent and for the year stood at £684.1 million.
, Clothing and home income continued to decline, falling by 2.8 percent this year and then
remaining at £3.8 billion. The number of shops has increased, while UK stores have increased
by 65. I think the Marks and Spencer's in the clothing and home industry were even less
successful with less success. I think this might not have been their most fruitful year, but I'm
going to find a way to get up and get back on track.
In 2018, the group profit was £580.9 million before changes and tax, which decreased by 5.4
percent. I think his is not a good sum that the company hoped to produce, but by taking a
closer dive at their clothing and home business, it could increase this because that is where
the company is suffering most. They will do this by taking a closer look at their
demographics and how they can not only extend their apparel and home industry for the older
generation to a broader spectrum of the population, but also aim to attract the younger
generation.
For the year, their clothing and home income was £ 3.7 billion, which only dropped by 1.4
percent. I assume that the food industry has been good and has risen by 3.9%. The production
from food for the year was £5.9 billion. In the United Kingdom, the number of locations
increased substantially by 56 more new stores. The UK Marks and Spencer's were successful,
but one could argue that the international side of Marks and Spencer's was strained because
international shops seemed to be closed. There are now 428 global stores, a decline of 26.
For Marks and Spencer, 2019 looked like a difficult year. Their most profitable business, the
food department, drops by 0.6%, which is still £5.9 billion. Their effective clothing and home
industry continued to decline over the following years, at £ 3.5 billion in 2019, which
decreased by 3.6 percent. The company profit was £532.2 million before changes and tax,
which decreased by 9.9 percent. The company income that fell by 3.0 percent and is now at
£10.4 billion was another value that dropped.
I believe that during 2019, Marks and Spencer's were good but did not achieve their full
potential. One might argue that this may have been their least profitable year compared to
2018. I agree that M&S has been struggling over this year, but I can also pick up and learn
what they have done wrong and how this can be improved. Profits and sales for this year
were also impacted by the Covid-19 pandemic.
The pandemic struck M&S by surprise, and to ensure no damage, M&s had to adapt quickly.
This may be the explanation for the enormous drop in the food and clothing and home
industry that generally affected the revenue of the company.
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