P1: Explain the features of two contrasting businesses
The two businesses I will be looking at is Sainsbury’s and the NHS.
Sainsbury's is a public limited company (PLC), one of the biggest food retailer
markets in the UK. A public limited company is a company based in the UK, where a
business such as Sainsbury’s shares and offers stock to the general public.
Sainsbury’s established itself as a national retailer, as it's in the national economic
system. In the UK, Sainsbury's have over 1.4k stores. This business falls under the
secondary activity, however, they also operate in the tertiary sector as they sell
products. The company works on the production of raw materials from its primary
sector and transforms them into new products for the public.
A private limited corporation is legally distinct from the individuals who own it. Their
personal finances are different from its finances. Owners of limited corporations are
not held personally accountable for the company’s responsibilities since the
company has its own legal traits. A limited company's ownership is split up into equal
pieces known as shares. Those who possess one or more of these are referred to as
shareholders. They are investors in this different unit rather than owners of the
business. When shares of a limited business cannot be purchased or sold by the
general public on the stock exchange, the business is considered private.
Sainsbury’s sell and offer customer services to customers. They sell groceries so: all
kinds of foods, toiletries, health care items, kitchen stuff, as well as home
decorations, stationery, ice food, bakery, and clothes. Sainsbury’s own some brands
as well as having their own Sainsbury’s one. They own Argos, TU, Habitat, Nectar,
and Sainsbury’s bank. They do also have their gas station, for example the
Sainsbury’s in Bentley bridge retail park has a gas station, whereas the one in main
town centre does not. It varies. The services they offer are the pharmacy, fish and
meat counter and their cafe as well.
Because Sainsbury's is a supermarket it does want to make a profit and put the
money back into the business to get more products and pay employees. Sainsbury’s
now is owned by John Davan Sainsbury, a member of the fourth generation of the
founding family. This is a company, where they want to make a profit, to make sure
the business runs smoothly, and the money coming into the business will be put into
the business and so on. There are major shareholders for Sainsbury’s, they are:
Qatar Holdings LLC
VESA Equity Investment S.à.r.l.
BlackRock, Inc.
Schroders plc
Pzena Investment Management, Inc
,Sainsbury’s is a limited company, so the owner is responsible for the losses, but only
the amount they invested.
Sainsbury’s is a public limited company (PLC). Some of the advantages are that the
shareholders have limited liability. Being a PLC also means that there’s less risk to
the business in some ways. Also, the capital can be raised through public issues of
share. However, there’s drawbacks it must’ve been expensive to set up in the first
place. There’s also some complex accounting and reporting requirements. Another
big disadvantage is that there’s a big risk of the company like Sainsbury’s having
hostile takeover by a rival company as Sainsbury can’t control who buys its shares.
Shareholders will also expect to receive a percentage of the profit as dividends. Also,
the shareholders may clash when making decisions about the business.
Sainsbury’s has limited liability which indicates that if the company has to close, the
shareholders' holdings are kept safe as they are only liable for the amount invested
in the company. The NHS does not have any liability as it is a publicly funded health
service funded by taxes provided by the government. This government department
receives money from taxes and puts it directly into NHS funds. The government does
not directly control the NHS. A management system is responsible for how the NHS
functions and how the money is spent.
Whereas the national health service (NHS) is a publicly funded healthcare system in
England, a non-profit organisation. Where the public doesn’t pay for any health care
services done, not including medications. And the association like the NHS doesn't
earn any profit. Under 18’s all free, free at the point of use, for almost 56.4 million
people. With the NHS, it’s in the name if they’re an international or national
company. So, they are also a national business run by the government. The NHS
have over 1.2k hospitals in the UK. It's one of the biggest employers in Europe and
the largest in the UK. The NHS operate in the primary, secondary and the tertiary
economy. Where they start off with the primary care, where the first point of contact
for people in need of healthcare. By GPs, dentists, and pharmacists. Secondary
care, which is hospital and community type of care, which can be like an
appointment, an emergency. Tertiary care refers to highly specialised treatment,
maybe some type of surgery.
,There are various types of services available for the public and most of them are
free, expect for like your eye test or dentists' appointments for over 16. It can
depend. The services provided now are:
Anything to do with the coronavirus.
Vaccines
Prescription
GP appointments.
Hospital appointments and services and different services they offer.
Everything within the healthcare system.
Information for people who are moving into the UK or visiting.
Urgent and emergency services
Sexual health services
Help with health costs
Alcohol addiction or any type of drugs
Healthcare for the armed forces community
Online services (the NHS app)
Medical care as a student and the NHS gender dysphoria
There are also things like phone services where you can call and ask anything.
The NHS has limited liability. This indicates that if the company has to close, the
shareholders' holdings are kept safe as they are only liable for the amount invested
in the company. The NHS is a publicly funded health service funded by taxes
provided by the government. This government department receives money from
taxes and puts it directly into NHS funds. The government does not directly control
the NHS. A management system is responsible for how an organization functions
and how money is spent.
In business there are different types of organisations. The private, public and the
third sector.
The private sector are organisations that are owned by individuals and are there to
make a profit. The profit from the organisation benefits the owners, shareholders,
and the investors. Shareholders are part owners of the business. They are financed
by money from shareholders and by bank loans. Businesses like Sainsburys are
private organisations.
The public sector are organisations owned by the government. These organisations
aren’t profitable, so they are available to the public, at any times. Their role is to
provide a service to the public, and the organisations are funded by taxes. Hospitals
operates in the public sector.
The 3rd sector is the voluntary sector. Charites are a example of the third sector.
There are organisations that are owned and run by trustees. These organisations are
driven by a need to serve the community, not a need to maximise profits. They are
supported financially through gifts and donations. Any proceeds are put back into the
company. Organisations in the third sector may be managed as social enterprises.
P2: Explain how two contrasting businesses are influenced by stakeholders
, A stakeholder is someone who has an interest in the business and will be affected by
its activities. Businesses need to be aware of their stakeholders, as they’ll be
affected by the decisions for the business. There are 2 different stakeholders an
internal and an external.
Internal: works within a business, can be making decisions and carrying them
out. For example, the shareholders, managers, employees.
External: these don’t work within the business, but they’re affected by the
activities. For example, customers, suppliers, government.
In total there’s main ten types of stakeholders:
1. Shareholders: in a public limited company so in Sainsbury’s these are the
people who affect the aims, objects and the strategies. Shareholders are part
owners of the public limited company. They want high dividends and growth
and that the business is successful. Shareholders only influence businesses
to a point unless they hold many shares.
2. Owners: are individuals who have invested the required amount of money for
the business to operate. Sainsburys will have many called shareholders.
Owners will have the most impact on Sainsbury’s as they make decisions
about the activities. And they were the one who started the business.
Objectives of businesses could be maximising profit, increasing productivity
and market share and wanting the business to be successful.
3. Managers: these are staff who are responsible for implementing the
decisions made by owners and looking at the work that is required, they will
lead and control the employees in their department. Managers will also adopt
different styles to suit the department or to make sure the needs are met, for
example being autocratic. Top-level managers will interact with owners,
shareholders and stakeholders and other managers of the company.
Managers are internal stakeholders of the business. There objects could be to
increase efficiency and maximise profit, want a good salary and opportunities
for further career progression. To make sure the business is run smoothly and
uphold workplace morale and to reduce the risk they can. They only influence
the business somewhat.
4. Employees: are staff who carry out the day-to-day work within the company.
They provide skills and the work for the business to operate. In exchange they
are paid by the business. Employees have limited amount of influence on the
company. However, they can also affect the business directly, for example not
going to work and refusing to. Employees want job security as they want to
feel safe in the environment, they’re working in. And a good pay, also career
progression.
5. Customers: are people who buy products or services from Sainsbury’s. They
will also give feedback on how to improve them. Customers are also able to
affect others by recommending the business to others like friends however,
they could warm them against using the business. Which is affect the
business in the long run as they start doing negatives things, the words will
spread. However, customer loyalty is good thing as well. repeat customers
save costs and increase profit this will enhance the company value.
