Essay
btec business level 3 unit 1 assignment 1 distinction
- Module
- Unit 1 - Exploring Business
- Institution
- PEARSON (PEARSON)
in this document, i talk about two contrasting businesses and the features of those businesses
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P1 explain the features of two contrasting businessesPuma
Puma is a company that designs and manufactures
athletic and casual footwear, apparel and accessories.
It is a ltd otherwise known as a private limited
company. Features of a private limited company
include shares not being open to the public and
limited liability. The purpose of this company is to
make a profit by selling goods and providing services, however unlike many ltd’s Puma is a
fairly large company with 14,767 employees and a global/worldwide reputation. This is said
to be due to the sponsoring of famous athletes and various campaigns etc.
Primary production: this involves acquiring raw materials.
Secondary production: this is the manufacturing and assembly process. It involves
converting raw materials into components[1]
puma comes under the secondary sector since they turn raw materials into products
which are then used by customers.
Their target market is 15-30 year olds as it is the age where a person is the most sportive,
this helps them get maximum profit. The advantages of puma operating as a ltd is that the
company is protected by limited liability and is tax efficient but at the same time it can be a
major disadvantage because is there's a situation where funding is needed, the public
cannot invest in shares to help save the business which is essential because clothing and
sports etc is a dynamic market meaning that trends change daily and pumas goods may not
be in high demand.
Breast cancer research
Breast cancer research is a non for profit
organisation/ charity meaning that it
operates exclusively for public benefit.
Breast cancer research looks into cures and
medicines in order to decrease the amount
of people suffering with this illness. Similarly
to puma, charities also enjoy limited liability.
It is also a worldwide/ globally known
company. Activities include breast cancer
research events/ red carpets where various
tv celebrities appear and bring more awareness to the brand. The advantage of breast
cancer research operating as a charity is that charities are often able to raise funds from
the public, grant-making trusts and local government more easily than non charitable
bodies which will help them obtain finance causing them to be closer to their goal. The
, disadvantage of breast cancer research operating as a charity is that trustees are not
allowed to receive financial benefits from the charity they manage unless it is specially
authorised which can be hard to obtain.
P2 explain how two contrasting businesses are influenced by stakeholders
Puma
Internal stakeholders are people whose interest in a company comes through a direct
relationship such as employment, ownership, or investment.
External stakeholders are those who do not directly work with a company but are affected
somehow by the actions and outcomes of the business.[2]
Puma has a large number of stakeholders internally and externally. Internally include:
shareholders, managers and employees. External stakeholders include: competitors,
customers and pressure groups. In puma’s organisation external stakeholders actions are
more significant since they then will influence how internal stakeholders will act/ behave.
For example, customers' needs will be identified and recognised which will then trigger
how managers think e.g ‘ we should release trainers with memory foam since there is a gap
in the market and there seems to be a demand for comfortable shoes’. This is the same
with competitors e.g. if a rival like Nike releases new colors/ collab with an outside brand,
then Nike will then have a competitive advantage over puma and then internal influences
like shareholders may decide to design another product which will/ adapt an existing
product which will gain customers attention that the employees have to sell in a attempt to
gain an advantage.
Breast cancer research
There's a difference between stakeholders of private limited companies and charities.
Internal stakeholders of non profit organisations include: volunteer board members, paid
staff, program directors and volunteers, congregants, and association members. External
stakeholders can be: clients/ recipients of the charity and the families of those served and
also donors. Even though there are very few external stakeholders, they are top priority
since the organisation was formed for their wellbeing/ health. Despite this the donator is
the key stakeholder since the capital they contribute is what the charity can then utilise in
order to get the key goal of the organisation. The chain of influence is like this, donees
donate money which then goes through to program directors and association members
who can then decide how to utilise the money as effective as possible and the idea will be
brought up to the board members who will then use the money to help those in need e.g in
this case breast cancer research can spend the money on testing a new drug which may be
less harmful as chemotherapy or spend the money on wigs to boost confidence on women
who lose their hair during chemotherapy.
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