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Summary level 3 business unit 1 A1/A2/A3
- Institution
- PEARSON (PEARSON)
Summary of 21 pages for the course Unit 1 - Developing New Business Ideas at PEARSON (n/a)
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p1For my assignment, I would be presenting and exploring the two contrasts, the two businesses
that I have chosen are BMW and WWF. I will be presenting the features of two contrasting
features, explaining how stakeholders influence the two businesses and how they maintain
relationships with their stakeholders. Exploring the organisational structure aims and objectives,
then I will move onto how the structures allow them to achieve their businesses.
I will be explaining the features of both BMW and WWF, that would include their purpose,
ownership, sector, scope and size.
BMW
BMW is a German multinational company which is a world leading premium manufacturer
business in the automotive industry as well as one of Germany's biggest manufacturers of luxury
automobiles. The business was founded on the 7th March 1916, by Karl Rapp, Camilo
Castiglioni, Gustav Otto and Franz Josef Popp. BMW is also in partnership with; Rolls-Royce
motor cars and MINI .This company is incorporated and owned by shareholders, of whom are:
Stefan Quandt, Susanne Klatten, the Quandt family, and Public investors. BMW's headquarters
is in Munich Germany.
Bmw states their mission is “to become the world's leading provider of premium products and
premium services for individual mobility.” They also ‘include many categories such as goods,
services, places, information and ideas In terms of goods, they sell cars and engines, they are
evaluated by their quality and do not include variability, also in terms of services, they are difficult
to evaluate, perishability and variability, but on the other hand services include variability (so
being a market company they try to avoid negative variability and keep improving positive
variability such as customisation), in addition BMW also provide car sharing services.
BMW's target market are from the upper class social groups as they are the people for whom
BMW will be affordable & moreover, they will appreciate the masterpiece. BMW have positioned
itself as a symbol of quality, technologically advanced, high performance & exclusive automobile
brand
BMW has been a public limited company (PLC) since 1918, and is publicly traded on the
Frankfurt stock exchange, which means that the business is owned by shareholders, members of
the public and investors. Their total equity is €59.907 billion (2019).
Their shareholders are: Stefan Quandt who owns 29%, Susanne Klatten who owns 21%, the
Quandt family and the public investors own the other 50%
Since BMW is a PLC that means they have a limited liability, which means that they have the
benefit of protecting their assets and shareholders and investors for losing their assets they own
and money that they have invested into the company if the business was to fail, they will have
better access to the capital, shareholders would be able to buy and sell their shares and it would
give the company a respected profile.also at the same time is there was a downfall of of the
business by having PLC, but the downside of having a plc is that the setting up of costs can be
expensive also you can have less control of the company as shareholders and investors are also
part of the company, and the business must be lawful by sharing their information to the public,
which can give competitors the advantage to use the information to their own benefit.
Primary Sector- is concerned with the extraction of raw materials or natural resources, such as,
mining, coal, fishing, farming or oil production.
Secondary Sector- is production of manufacturing, which would involve extracting raw materials
and converting them into products, for example, food production, car manufacturers or building
companies.
Tertiary Sector- Provides services to consumers or businesses, for example financial, retail,
schools or restaurants.
,Quaternary Sector- Provides information services, such as, ICT, computing, consultancy or
research and development.
As bmw Being an automobile manufacturer, BMW comes under the secondary sector, this is
because they take raw materials from the primary sector and produce products that are highly
possible to be consumed by individuals. Being in the secondary sector they form a good part of
GDP as they create goods, in addition they help increase the growth of the economy. This is key
for development for countries. Moreover, as BMW is part of the secondary sector, they can gain
more demands for more goods, which leads to industrialisation.
Local Businesses- Is owned locally and provides goods and services to a local population. For
example, barbers or an independent Indian restaurant.
National Business- operates within the borders of a country, could be a local business but it
might be a franchise, such as, Costa Coffee or Kwik fit.
International Business- is a transaction that takes place across the outside of the national
borders, for instance, McDonald, KFC or Amazon
BMW is an international business as their transactions take place across national borders as
they operate 31 production and assembly facilities in 15 countries. Also, their BMW brand is
represented by around 4,400 dealers in 150 countries.
Micro business- has 9 or fewer employees
Small businesses- has 0- 49 employees
Medium businesses- has 50- 249 employees
(SMEs) Small Business Enterprise – includes Micro- medium size businesses, so 0-249 employ
Large businesses – has over 250 employees
BMW is categorised as a large business, as they have employees up to around 120,000 since
2020.
, WWF
WWF (World-Wide Fund originally known as World Wildlife Fund) is an world leading
independent non-government conservation organisation. Wwf was Founded on 29 April 1961 in
Morges, Switzerland when wwf started there were 7 founders Prince Philip, Prince Bernhard
Julian Huxley, Guy Mountfort, Peter Scott, Edward Max Nicholson and Godfrey A Rockefeller.
They collaborate with people around the world to develop and deliver innovative solutions that
protect communities, wildlife, and the places in which they live.
WWF purposes are: Environmentalism, Nature conservation and Ecology
They focus around six ambitious goals: Climate, Food, Forests, Freshwater, Oceans and Wildlife.
They aim to save the planet and wildlife from pressing threats and create a world where people
and wildlife can thrive together. In addition, they help companies change the way they operate
their business to have a positive impact on the natural world
They work to help:
● the local communities protect and restore nature/ forests
●
● Safeguard Healthy Oceans and Marine Livelihoods
●
● Freeze the Footprint of Food Secure Water for People and Nature
●
● Protect the wildlife Species, and Create a Zero-carbon Future
WWF is a charity organisation,their ownership is a not-for-profit business, this shows that they
aim not to make profit but to help communities and to improve economies, in terms of WWF they
help vulnerable wildlife species and the livelihood of communities in a developing economy.
Moreover, they are a Private limited company, which gives them the benefit of:
● having guarantors rather than shareholders, so it is suitable for voluntary organisations,
which means that if the company has debts then the members agree to pay a fixed
amount
●
● The company is regarded by funding bodies and public agencies as a firmer structure
than voluntary association
●
● The company is a clear legal entity
●
● Business would continue even if shareholder/guarantors dies
however, there are also disadvantages, of which are:
● There are formal registration procedures to be followed, which can be time consuming
●
● Ongoing requirements to notify change in directors, secretary or registered office to
● Companies
●
● The set-up costs can be higher than for a voluntary association or trust, the annual costs
are high
WWF is an LTD (Limited Liability Companies) that means they have a limited liability, which has
the great advantage that charity is liable for its debts and the people behind it are fully protected
by the limited liability,but being a limited liability there are expenses and formality and the charity
would need to submit filings in duplicate to Companies House and the Charity Commission
Being a charity organisation WWF lies under the tertiary sector, as they provide services to
consumer or businesses
WWF is an international business as the business transactions take place across the world.
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