Jasper Sobande Unit 1 Task 1
P1 Explain the features of two contrasting businesses
This assignment has been studied for a Public limited company and a private limited
company, which therefore is Adidas, and the UK military has been chosen, I have also
written the characteristics of these two successful businesses. Therefore, an introduction
will be implemented which will be contrasted with the following ownership and liability,
company establishment, purpose, and industrial sector of the two companies.
Uk military
What is the Ownership of the business?
LTC (private limited company); is a type of business that is inherited by a family member or
owned by a government that limits shareholders or investors' liability to its shares and
restricts the business shares from being sold to the public. In exchange, the owner of the
business can make decisions without any conflicts with its shareholders or board of
directors because there is a limit to the number of shareholders an LTC can have, and the
business isn't required to post its financial report annually for its competitors and member
of the public to see their current performance. An example, of an LTC, is the Uk military
which operates in the public sector.
The UK military is an international organisation originally set up in England at 1640 century,
it is based in the public sector meaning that the organisation was set up by the Royal family
and is controlled by its Head of Armed Forces, they have military outpost and bases located
across the world, located in Kenya, the South Atlantic, Germany and Cyprus etc. They
primarily aim to protect the nation and its dependant territories by using their armed forces
to ensure the residents living in the UK security and support their national interests and
safeguard their prosperity. The British army is a private limited organisation that is owned
by Queen Elisabeth and is inherited by her successors e.g., Charles Prince of Wales buts its
mainly controlled by the government. This also means that an individual that is not from the
Royal bloodline cannot inherit the role to control its organisation.
What is the purpose of the business?
The British army is originally used for active combat operations to prevent external events
from affecting the nation's welfare and national relations with other independent countries.
The organisation also used to establish humanitarian aid that provides the necessary
resources required to restore a happy and healthy state of life, that is primarily caused by
natural disasters and political unrest. They also offer anti-terrorism procedures to help
oppress international drug trade.
Which sector does the business operate in?
The British army operates under the tertiary sector because the organisation is funded using
taxes (the money received by the government). The organisation purchases their weapons
and specialised equipment off from neighbouring countries and even other private
companies that specialise in manufacturing guns. The organisation distributes their
weapons into military bases for soldiers to use during military operations.
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What is the business size?
The British army is a large organisation with over 80,040 regular troops still in service and
29,790 troops as reserves in the late 2020. This number will continue to decrease because
Britain is involved in far fewer conventional military operations compared to its past
operations during the Falkings war and WW2. As the size of British empire declined after
1945, so did its global military commitments, however they primarily want to focus on
expanding their Royal navy since it is what represents it global strength till this day.
The British army only employs people who are either British or is a Commonwealth citizen
with evidence needed as proof of residency with the minimum age of 16 years old. The
reason the minimum age to join the army is 16 years old is because they receive all kind of
benefits, training, and experiences and they are not authorised to go to the front lines until
they are 18 years old.
In 2021, the British government spent approximately £44.6 billion on defence (this includes
combat vehicles, guns, specialised equipment, battleships and aircrafts) compared with
what the government spend on defence in 1996 with just £20.1 billion, increasing military
spending can create availability for more jobs for both men and women, it also have positive
affect on capital labour, growth and availability of resources that can be diverted to produce
better fighter plans and weapons on a larger scale.
The British army is ranked 8th out of 140 countries considered for the annual GFU review.
This means that they are one of the best equip armies in the world with one of few best
soldiers with combat experience that is unique and weapons and combat vehicles being
capable of enabling total mass destruction.
What is the business service range?
The British army consists of the Royal air force which specialises in aerial combat and
delivering air support for ground troops and ships, the Royal navy which also specialises in
stabilising the seas, keeping the maritime trade contributes the most to the British
economy, they also contribute the most into British’s prosperity and success. And it also
consists of the Royal Marines which are known as the elite fighting force, specialised for
worldwide rapid response and can provide humanities aid to those who need it.
What is the UK’s military aims and objectives?
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Their main aim is to reinforce and improve the relationships between them and their allies
(America, France, and Germany) and become fully integrated to amplify their strength. They
also want to modernise their arsenal and embrace modern technologies to assure their
competitive position (ranked 8th in the global ranking based on a country's military
strength). They can achieve this by accelerating the development of new weapons and
equipment for their employees to use to save lives while counterattacking enemies. An
example of this was when the Uk government introduced the developments of the F-35
lighting Aircraft from the HMS Queen Elizabeth aircraft carrier and has enhanced their new
strike brigade by securing a contract for the British Army fighting vehicles.
They are continuing to transform their business by investing in a future workforce that is
more diverse and inclusive to create a friendly environment where employees can work at
their best without being isolated because of their religious/cultural beliefs. In 2020 The Uk
military began enrolling pilots for the Future Accommodation Model and has arranged and
sorted the groundwork for trials to wrap around childcare, targeted at those with children
serving the military. It is also reported that there has increase in the number of cadets units
parading in schools from 300 to over 500 and is proud to become one of the largest
deliverers of apprenticeships achieving over 50,000 apprenticeship enrolments.
Mission statement:
The defence policy requires provisional forces with a high degree in military effectiveness,
sufficient readiness and with a clear sense of purpose, for preventing conflict, management
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procedures during a crisis and capable of performing combat operations. Soldiers are
expected to undertake a range of military exercises and tasks to fulfil the mission below:
Peacekeeping security: The military is responsible for providing forces that are needed for
peacekeeping to ensure the protection and security of the United Kingdom, they are also
expected to assist evacuations overseas e.g., Afghanistan where the Taliban took over the
country and individuals who contributed to assisting both the UK and American forces in
translating and peacekeeping in the region, were evacuated by both Americans and British
forces.
Defence Diplomacy: The military is also expected to meet varied activities undertaken by
the Ministry of Defence to maintain and improve trust, dispel the possibility of a terrorist
attack by an extremist group and assist in the development of democratic armed forces.
Support British interests: They are expected to provide forces to promote British interests,
the country's values and perform humanitarian operations.
Regional Conflict inside and outside Nato Area: Contribute forces to respond to a regional
conflict if there was an attack on a NATO ally or they might call the UK for assistance to help
to solve a crisis undergoing near their territory.
Vision statement:
The UK military vision is to protect the public, their territories, values, and interests at home
and abroad by establishing armed forces to help prevent conflict or sustain minimal
casualties. They also want to ensure the country's security, support the interests of their
nation, and safeguard the country’s prosperity.
What is the ownership of Adidas?
PLC (public limited company); is a business that makes its shares available in the stock
market for members of the public to purchase. Individuals who have purchased these shares
are called shareholders who own part of the business and contribute to decisions making
depending on how many shares they own which allows them to earn dividends from the
business in return for more investments. However, the business must share its financial
report annually to inform its shareholders and members of the public including its
competitors about their financial performance which increases the risk of a hostile takeover
by a competitor. An example of a PLC is Adidas.
Adidas is funded by shareholders and investors because its shares are available in the stock
market and is traded in the Frankfurt stock exchange for the price of € 297.90 per stock
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