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Summary BTEC Business Level 3: Unit 1 - Exploring Businesses (Distinction*)

Name: BTEC Business Level 3: Unit 1 - Exploring Businesses (Distinction*)
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Module
Unit 1 - Exploring Business

Institution
PEARSON (PEARSON)

BTEC Business Level 3: Assignment 1 - Unit 1: Exploring Business. Distinction standard work. Includes appropriate images, and is extremely well formatted and put together. Following the Exemplar Template will ensure you get a great mark. This Exemplar Template includes P1, P2, P3, M1, M2, D1.

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BTEC Business Level 3

BTEC Level 3 Natioal Exteoded Busioess Studies | Uoit 1: Expliriog Busioesses
A.P1 – Describe the Features if Twi Ciotrastog Busioesses

The Features if a Busioess

Io this task I will be expliriog the features if a PLC: Public Limited Cimpaoy aod a Nio-
Fir-Prift Orgaoisatio. I will be expliriog the Histiry, Owoership, Liability, Purpise aod
Iodustrial Sectir if the twi ciotrastog irgaoisatios.

Tesci PLC
Iotriductio
As a leading UK retailer Tesco’s boast over 6,300
stores worldwide. As such a big retailer Tesco’s have
promised to be commited in order to deliver goods
that have a sustainable value for both their
stakeholders and its customers. Figure 1 – Tesco PLC Logo

Stakeholders are those who have an interest in the business, however also have an equity or
stake within the business, a key diference between a Stakeholder and Shareholder. Tesco’s
are extremely commited to their high standards of their products and ensures its
Stakeholders that their own-branded products: including Food, Clothing and Home
products, are to extremely high standards, no mater whether the product is purchased in-
store or on their online webstore.

Owoership & Liability
Tesco’s is a Private Sector Organisaton. The fact that they are a Private Sector Organisaton
mean that they are a part of the economy that isn’t under direct infuence through state
control. Tesco PLC as a Private Sector Organisaton means that the company have multple
shareholders and has no involvement or ownership through the government.

The ownership of Tesco’s is as a PLC (Public Limited Company) whose shares have the ability
to be sold freely to the public on the Stock Exchange Market. The biggest shareholder of
Tesco’s PLC is BlackRock Inc., a Global Mult-Asset Income Fund and has a £1.13 billion stake
in Tesco PLC.(a)

As a PLC, the company has limited liability. The liability of Tesco’s is fnancial debt and
obligatons that arise over the course of their business operatons. Limited Liability means
that the shareholders are legally responsible for the debt of the business, only to the extent
of the inital value of their share. This means that shareholders are secure, in the terms that
company debts aren’t a personal issue for them, so they can only lose their investment of
the share of the company and nothing more, this is unlike unlimited liability.

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, BTEC Business Level 3

Purpise
The purpose of a Public Limited Company is to provide their customers with the best
possible service, while ensuring that they have the products required. This would mainly
maximize profts for its shareholders, whilst having a good reputaton and relatonship with
its customers and stakeholders. Tesco’s have the moto of Every Litle Helps.” They aim to
provide high quality products including food and daily needs such as clothes and basic home
furnishing.

Iodustrial Sectir
Primary Sectir: this involves acquiring raw materials. For example, metals and coal have to
be mined, oil drilled from the ground, rubber tapped from trees, foodstufs farmed and fsh
trawled. This is sometmes known as extractve producton.
Seciodary Sectir: this is the manufacturing and assembly process. It involves convertng
raw materials into components, for example, making plastcs from oil. It also involves
assembling the product, e.g building houses, bridges and roads.
Tertary Sectir: this refers to the commercial services that support the producton and
distributon process, e.g insurance, transport, advertsing, warehousing and other services
such as teaching and health care.
Quateroary Sectir: The quaternary sector consists of those industries providing informaton
services, such as computng, ICT, Consultancy and R&D (research, partcularly in scientfc
felds).
The quaternary sector is sometmes included with the tertary sector, as they are both
service sectors. The tertary and quaternary sectors make up the largest part of the UK
economy, employing 76 per cent of the workforce.
As an Organisaton, Tesco PLC comes under the tertary sector. This is because Marks and
Spenser are able to provide many services such as clothes and food. Marks and Spenser also
provide Banking, Energy, Wine and Technology.
Scipe if Busioess
There are three types of Scopes in Businesses: Local, Natonal and Internatonal.
Lical Scipe Busioess: A Local Scope Business is one that sells its products and services to
consumers in its own city, town, or geographic area. A great example of such a business
could be a one-person barber shop as a local business, as the barber would only ofer their
services to individuals in that community. The term is usually used when referring to locally-
owned businesses.
Since Local Businesses have few locatons, they tend to have extreme difculty competng
with larger, global organisatons, especially in terms of pricing. Many local business, because
of this reason, then tend to focus on providing excellent customer service, almost in
exchange for the higher price, in an atempt to provide a reason on why the customer
should return.

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, BTEC Business Level 3

Natioal Scipe Busioess: A natonal business is one that operates within the borders of a
partcular country. Like a local business, a natonal business understands the culture of the
country and develops products and services to satsfy its market. The health of its regions
natonal market can be an extremely important factor in terms of the success of the
business.
Natonal Businesses have many more locatons than local businesses, this means that
Natonal Businesses can be much more compettve on pricing. This is because it buys its raw
materials. The more it buys, the lower the cost will be. Like a local business, a natonal
business understands the wants and needs of its consumers, and it provides products and
services that will satsfy customer demand. Natonal Businesses have the ability to access
much larger markets to sell their product or service, across the entre country, instead of
just one single town or city.
Ioteroatioal Scipe Busioess: An
Internatonal Scope Business conducts
business around the world and has
access to a market that is much larger
than that of a local or natonal business.
A larger market means that more
consumers will purchase a company's
products and services, which means
greater profts for the company and its
owners. Figure 2 – Tesco Store in China

Since an Internatonal Business has access to larger markets, it doesn't have to worry as
much about a compettor entering a partcular market and taking its sales. Also, it likely has
other markets in which to concentrate, so the impact on its overall profts from reduced
sales in one area would be less signifcant. Internatonal businesses also provide consumers
with more choices for products and services since they may ofer products that consumers
cannot buy locally or natonally.
It’s an internatonal business as it has over 6,500 stores across Europe, Asia and the Middle
East. They provide three diferent business models one being having a franchise or joining a
venture or owning a Tesco PLC store. They want embrace the quality of clothing & home
collectons, Tesco’s are well known for their webstore.

Tesco PLC is an Internatonal Scope Business as they have over 6,000 stores across 13
diferent countries including India and Poland, as well as the UK. They have the majority of
their stores in Europe, with over 5,000 in Europe alone and the remaining few hundred
stores being in Asia, specifcally India and the Middle East.

Size if A Busioess
There are four sizes of Business: Micro, Small, Medium and Large.
Micri Busioess: A business with fewer than 10 employees and turns over less than
€2,000,000 per annum is considered a Micro-sized Business.

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, BTEC Business Level 3

Small Busioess: A business with 10 to 49 employees and a turnover less than €24,000,000
per annum is considered a Small-sized Business.
Medium Busioess: A business with between 50 to 249 employees and a turnover less than
€50,000,000 per annum is considered a Medium-sized Business.
Large Busioess: A business with over 250 employees and a turnover of more than
€1,500,000,000 per annum is considered a Large-sized business.
Tesco PLC is considered a Large Organisaton, as Europe’s Largest Employer because it has
roughly half-a-million employees worldwide. The business turned over, including their
subsidiaries, £55,920,000,000 last year. (b)

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, BTEC Business Level 3

Caocer Research UK
Iotriductio
Cancer Research is a Non-For-Proft
Organisaton. A Non-For-Proft Organisaton,
such as Cancer Research, is an Organisaton
which does not earn money for its owners (or
Trustees) but has a purpose, such as donatng
money to social causes. There is much more to
Figure 3 – Cancer Research UK Logo
a Non-For-Proft Organisaton than to just make
money.

The features of a Non-For-Proft Organisaton is that they aren’t founded for the idea of
making proft. Even though making as much money as possible is most defnitely an
important factor (to have the highest funds possible to give to people in need), an
Organisaton such as Cancer Research focus on providing as much social help as possible.
Non-For-Proft Organisatons are fun for public beneft, not for personal beneft. They aren’t
out there to make a proft, so they gain additon support from the government, which
include tax exempton, so they don’t have to pay taxes.

Cancer Research UK’s aim is to provide efectve research on Cancer and try and raise its
awareness. Founded and Formed in February of 2002, Cancer Research UK try to identfy
causes and develop strategies for preventon, diagnosis, treatment and cure. The Non-For-
Proft Organisaton was created through the formaton of The Cancer Research Campaign
and the Imperial Cancer Research Fund. Their annual revenue reaches £634.81million per
annum.(c)

Owoership & Liability
Out of the three business sectors: Public, Private and Non-For-Proft, Cancer Research is a
Non-For-Proft Organisaton. This means it’s an organisaton with the purpose of doing
something socially good rather than just making a proft. They get funding, raise money and
accept donatons.

Cancer Research is a registered Charity in the UK, which is a charitable organisaton which
operates for charitable purposes, and must devote its recourses and assets to charitable
actvites. The Charity must be resident in the UK and cannot use its income to beneft its
Trustees. As a charity, the advantages that they gain must not be used for the personal use
of its members.

In a Registered Charity, such as Cancer Research, there are trustees, regarded as the
equivalent as a Shareholder in a PLC. These trustees form the governing body of a charity.
The Trustees are the individuals who take the big decisions. They have a legal role to ensure
the Charites money is spent well, in the right way and to clear any debts. Trustees usually
choose a Charites Board of Directors, which is headed by a Chief Executve Ofcer, just like
a PLC.

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