This is an assignment for my business level 3 course unit 1 learning aim A. This assignment has fulfilled all the criteria and has got the highest grade possible, a merit.
This assignment contrasts the different features between Barnardos (a not-for profit organisation) and Nestle (a for-profit ...
Assignment 1: The stakeholders and structures of businesses
Section 1: Features of Businesses
Introduction
In this report I will be exploring the relationship between businesses and its stakeholders by
investigating the features of two contrasting businesses, Barnardos a not for profit
organisation and Nestle a public limited company. In this section I aim to explore the
characteristics of each business and how they compare with the other.
A brief Overview of Barnardos and Nestle
Barnardos is a large national UK charity founded in 1866 by Thomas John Barnardo who set
the organisation up with the aim of caring and supporting vulnerable children. Barnardos
provides support for vulnerable children who have experienced trauma from abuse and
exploitation or who are currently in care or have recently left care.They also provide a range
of services to help support families across the UK who are struggling with issues such as
domestic abuse or mental health problems.
Nestle is a Swiss multinational food and beverage company which was established in1866
by its founder Henri Nestle.Nestle sell products in 186 countries, operate over 354 factories
in 79 countries and have an estimated 270,000 employees worldwide.They sell over 2000
brands which includes distinguished products such as KitKat and Nescafe. Nestle is also
one of the leading researchers in the field of nutritional sciences and invests over 1.6 billion
Francs (Around 1.3 billion pounds) every year on research and development.
Ownership and liability: The ownership structure
Barnardos is a not for profit charitable organisation which means it only works towards
making enough money to cover the running costs and does not aim to generate a
profit.Barnardos is classed as a private company limited by guarantee which means the
company does not have a share capital or shareholders but instead has a board of trustees
who make key decisions and oversee the running of the charity.The board of trustees
members act as guarantors who agree to pay a very small amount of money towards
company debts.As the company is limited it is a separate entity from its owners and
therefore responsible for its own debts, the guarantors personal finances are protected and
they are only required to pay the agreed amount towards company debts and nothing
more.As a charitable organisation without shareholders and share capital, none of the profits
are distributed to members of the board of trustees and are reinvested into the business in
order to fulfil the charities objectives.
, Nestle is a public limited company which is owned by shareholders and managed by a board
of directors. As a public limited company Nestle shares can be bought by members of the
public on the stock exchange.The individuals who own these shares are called shareholders
and their ownership of the company is determined by the amount of shares they own.In
return for investing in the company and owning shares shareholders are entitled to vote in
general meetings and receive dividends from any profit generated from the business.As a
PLC Nestle is its own legal entity with a separate identity from its shareholders and so
shareholders have limited liability and can not be held personally liable for any company
debts or losses.
The purpose of each business
A for profit business aims to maximise profits and distribute these profits to the owners and
shareholders of the business.A not for profit business has no owners or shareholders and
aims to to provide services that will benefit the public.Any profits derived from a not for profit
organisation are legally required to be reinvested to support the organisation's stated
purpose.
Barnardos states that there purpose is:
“To provide support for children,young people and families in need; promote and provide
assistance towards the education of children and young people in social or economic
disadvantage; provide services for and promote/ advance the welfare of children and young
people and their families whose lives have been affected by economic, social or other
disadvantage or loss.” - From the Barnardos company website.
Nestle states that there purpose is:
“To unlock the power of food to enhance quality of life for everyone, today and for
generations to come.” - From the Nestle company website.
The sector of each business
There are 4 main industry sectors a business can operate in, this includes:
Primary - This sector of industry involves the extraction of raw materials or natural resources
e.g. farming, mining and fishing.
Secondary - This sector involves taking the raw materials from the primary sector and using
them to manufacture new products. e.g car manufacturers, carpenters and food processing.
Tertiary - This sector provides services and includes businesses such as banks,
hairdressers and education.
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