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BTEC Business Level 3- Unit 1 Exploring Business

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Module
Unit 1 - Exploring Business

Institution
PEARSON (PEARSON)

In this report I will cover the features of businesses, such as ownership, liability, purpose, sector, scope of activities, size, explain what makes them successful, explore how businesses are organised, such as organisation structure, functional areas, mission, aims and objectives, the relationshi...

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Uploaded on November 14, 2022
Number of pages 29
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Unit 1
Megan Oakley

Features of different businesses
This report outlines the different features of two contrasting businesses, Nestle and
Oxfam. Oxfam is a British charitable organisation that mainly focuses on alleviating
global poverty. Oxfam was founded in 1942 by Cecil Jackson-Cole. On the other
hand, Nestle is a worldwide food and drink company privately owned by Mark
Schneider.

There are three main sectors that a business can be, this affects how businesses are
run; private, public, non for profit. A private business is driven by profit and growth.
When private businesses make profit, the owners, shareholders and investors
benefit the most from it, they are also financed by their own financial resources and
loans, an example of a private company is spotify, cadbury etc. A public business is
funded by the government, this means the government funds the businesses by
using money produced from taxes. Public businesses provide goods and services to
the general public, to benefit the community, an example of a public business is
schools. A non profit organisation, is an organisation such as a charity that is run
solely on voluntary work, these organisations aren’t run to make profit, they are run
to benefit the community. These organisations run with money from donations any
profits made are put back into the organisation for example; british heart foundation.

Ownership and liability

A business can have different ownership types. If a business is a sole trader
business, this means that the business is run by one person, they rely on their own
savings, knowledge and independence. This type of business has unlimited liability.
A partnership organisation involves two or more people, usually close family or
friends. Partnership organisations involve a deed of partnership document that holds
all information about roles and money in the partnership. This type of business’
liability has unlimited liability.
Private limited companies have limited liability, it involves a slightly bigger group of
people than partnership full of close relatives, and friends.
Public limited companies involve a large number of people working. These types of
companies make larger profits and are managed by directors and shareholders, the
liability is limited.
Cooperative companies are owned and run by members, a group of people working
towards the same goal. Everyone has an equal say in what direction the business
takes.These companies have limited liability.

,Unit 1
Megan Oakley

Nestlé

Nestle, headquartered in Vevey, Switzerland, is a worldwide nutritional and health-
related consumer goods firm. It is the world's largest food corporation. Baby food,
coffee, confectionery, bottled water, breakfast cereals, dairy goods, ice cream, pet
foods, and snacks are among Nestle's products. Nescafe, Kit Kat, Nespresso,
Smarties, Nesquik, Stouffer's, Vittel, and Maggi are among Nestle's 29 brands with
annual sales of over 1 billion CHF (about US$ 1.1 billion). Nestle employs roughly
328,000 people worldwide and operates 450 plants in 86 countries. L'Oreal, the
world's largest cosmetics corporation, has Nestle as one of its major owners .Nestle
was founded in 1905 when the Anglo Swiss Milk Company, founded in 1866 by
brothers George and Charles Page, merged with Nestle. During the First World War
and again after the Second World War, the company expanded its offerings beyond
its early condensed milk and infant formula goods. Crosse & Blackwell in 1950,
Findus in 1963, Libby's in 1971, Rowntree Mackintosh in 1988, and Gerber in 2007
are only a few of the company's acquisitions. Nestle was named the world's most
profitable corporation in the Fortune Global 500 in 2011. Nestle was placed 13th in
the FT Global 2011 with a market capitalisation of $ 200 billion.

Nestle is a public limited company this means they have limited liability to offer
its shares for sale to the public. They don't have to offer shares to the public if they
choose not to, but the option is there if and when needed. Public limited companies
involve a large number of people working. These types of companies make larger
profits and are managed by directors and shareholders, the liability is limited. The
most major difference between charities and for-profit businesses is their mission:
nonprofits have a social mission, whereas for-profits attempt to provide valuable
products and services to consumers while generating cash. Nonprofit organisations
are exempt from paying income tax, whereas for-profit companies must pay taxes
based on their net income.(7)

A business's purpose outlines the general aim and goal, it should be short and
informative to show what kind of business they are. It can also outline why the
business was initially created and founded. It mainly describes why the business is
unique to other businesses and its plans.The official purpose stated on their website
is to:
‘Unlock the power of food to enhance quality of life for everyone, today and

for generations to come’ (1)

Nestles products are sold internationally, they own over 2000 brands ranging from
local favourites to global icons, and are present in 186 countries worldwide. (1)
Nestle supplies baby foods, bottled water, cereals, chocolate and confectionery,
coffee, culinary chilled and frozen foods, dairy, drinks, food services, healthcare,

, Unit 1
Megan Oakley

icecream, pet care, plant based portfolio and recipes to customers worldwide. This
business is for profit, this means all profit made goes to the investors and
shareholders, compared to a non for profit business where all profits made are put
straight back into the business or for charity.

Nestle is a business which is part of the Secondary Sector. This means that they
process their products from raw materials and sell them out to retail shops (which
are part of the tertiary sector) such as poundland. Nestle is also a large scale
business, and the world's largest consumer goods company, employing 273,000
people worldwide (2). The scope of business activities for Nestle is international,
whilst focussing market campaigns locally and nationally, the business is
international and covers 186 countries. (1) This means Nestle does business
transactions, sells and buys products all over the world.

Reasons for Nestle's success include; localisation. This means that Nestle has
researched and taken into account a specific area for marketing a certain product.
This would have taken a lot of product planning, marketing and strategies. This has
contributed to a successful business as the needs and wants of clients in different
areas have been met. Instead of doing global scale marketing, Nestle focuses on
smaller areas for different campaigns.

The brand Nestle is recognised worldwide, its logo has adapted since first being
founded in 1868, however Nestle has always kept the idea of a mother bird feeding
her baby birds. This represents Nestle's purpose which is nutrition , health and
wellness to all its consumers. This logo has brought a lot of brand recognition and
contributed to its success.

Finally, Nestle's success has sprouted magnificently from successful merges with
other brands and Nestle now generates 70% of all profit made from food and
beverage. (3)

Stakeholders and their influence

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