All pass, merit and distinction, criteria achieved business chosen for this assignment is Tesco,it was graded Distiction very well detailed assignment.
P1 Explain the features of two contrasting businesses
Introduction
The two contrasting businesses chosen for this assignment are Tesco, a public limited company, and
Cancer Research UK (CRUK) a charitable organization. Tesco operates in the private sector, whereas
CRUK operates in the voluntary sector.
Tesco
Tesco is an international retail company mainly specializing in food retail amongst other things. In the
UK Tesco has 28% of the food retail market share which makes it one of the largest retail companies in
the UK. It has stores all around the country. Its shops range from small stores to superstores. These
stores are known as Tesco Extra, Tesco Superstore, Tesco Metro, and Tesco Express.
Ownership
Tesco is a public limited company. Tesco shares are owned by individuals and institutional shareholders.
The current share price of Tesco shares is £297.10 per share (11 th February 2022 price). Shares can be
bought by the public. This is a great way to raise funds as this helps Tesco invest money to expand the
business.
Liability
Tesco is a public limited company. Tesco shares are owned by individuals and institutional shareholders.
The current share price of Tesco shares is £297.10 per share (11 th February 2022 price). Shares can be
bought by the public. This is a great way to raise funds as this helps Tesco invest money to expand the
business.
Purpose
Tesco mission statement is “to serve [its] customers every day with affordable, healthy and sustainable
food – to help them enjoy a better quality of life and an easier way of living.” as per Tesco’s website -
(https://www.tescoplc.com/about).
Tesco is a profitable business which aims to give a good return to its shareholders on their investment.
Tesco’s group turnover was £53.4 billion in 2020. It made a profit of £825 million in 2020 before tax.
Tesco has several subsidiaries including Tesco mobile and Tesco bank as it is diversifying its business into
other areas.
Sectors
Businesses operate in different sectors of the economy depending on the nature of their business and
the products it sells and/or the services it provides. Majority of the businesses operate in the following
,sectors. Some businesses may be part of more than one sector due to overlap of their business
operations.
Primary
Business involved in the primary sector of the economy are concerned with the extraction of raw
materials or natural resources from the land. Any business that grows produce or extracts materials
from the land would be classed as a primary sector business. Example would include farming, fishing and
gold mining etc.
Secondary
The secondary sector of the industry is concerned with manufacturing. This involves taking the raw
materials from the primary sector and converting them into new products. Examples of such businesses
include factories which use metals to produce tools and manufacturing companies which use raw
materials to make bricks, cement and other products used in the building trade.
Tertiary
The tertiary sector of the industry is concerned with providing a service. Services are activities that are
done by people or businesses for consumers. Examples of the tertiary sector businesses would include
supermarkets, hairdressers, banks, accountants, and entertainment business such as cinemas.
Quaternary
The quaternary sector consists of both industries providing information services such as computing and
consultancy services such as research and development. This sector is sometimes included with the
tertiary sector because both sectors provide services to consumers.
Tesco is part of the tertiary sector as Tesco sells the finished products in its stores. Tesco’s main
operations are in the food retail sector and general merchandise. It has around 28% of the market share.
Tesco is part of the big four groceries retailers. It has maintained this by improving its digital strategies,
Aldi price matching its products and offering a Clubcard scheme to increase customer loyalty as it gives
special discounts to Club cardholders only.
Scope of business
The scope of a business means the range covered by that business. It means the range of products and
the area in which the business operates as well. For example, some businesses are local to a particular
area, others operate countrywide, and some are multinational businesses.
Local Business
A local business is generally owned by a local person. An operates in a local area. An example of a local
business would be an independent village shop which is run by a sole trader who lives in the village, or
local chip shop specific to an area.
National Business
National business run operations through the country. They have branches or stores in the whole of the
country. A good example of a national business is Poundland.
, International Business
International businesses do business transactions and run business operations that cut across national
borders. These businesses are not restricted to a particular locality or a country. These businesses
operate in lots of different countries. An example of an international business would be McDonald’s.
Tesco
The scope of Tesco’s business is it is an international as it operates in 12 countries with over 4000 stores
all over the world.
Size of Business
The size of a business is determined by the number of employees or staff it has. The size type of a
business is determined by staffing levels too. A business with staffing level of up to 9 employees is
classes as a micro business. A small business type is one with staffing level between 10-49. A medium
size business will have typically have staff of between 50-249. All business with a staff of less than 249 or
less are classed as Small and Medium Enterprises (SMEs). A business which has more than 250
employees is classed as a large business.
Tesco has around 336,000 employees, making it a large business.
Cancer research UK
Cancer research UK is a charity that is committed to saving lives by funding research to help beat cancer.
It supports research into all types of cancers with the help of over 4000 medical professionals. This
research has helped to prevent, diagnose and treat cancer. This has helped to improve millions of lives.
It is a non-profit making organisation. Its work is almost entirely funded by the public. it raises funds
through donations, legacies, and fundraising events in the community and through corporate
partnerships.
Ownership
Cancer Research UK is a company limited by guarantee and a registered charity. It is governed by a
Council of Trustees and the Charity’s board of directors. The trustee's role is to set the charity's aims and
objectives and to ensures that these objectives are met and its funds are spent properly according to its
values and objectives.
Liability
Cancer Research UK is a company limited by guarantee with shareholders. This means the liability of
each shareholder is limited to the amount of the guarantee set out in the company's articles of
association by which amount each shareholder agrees to give guarantee.
Purpose
The purpose of Cancer Research UK is to find a cure for all types of cancers. It is funding medical
research for the discovery of cancer treatments. It also provides information to the public to raise
awareness about distinct types of cancers. It provides support to people who have been diagnosed with
cancer. It provides information about how to prevent getting cancer.
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