Assignment 1
P1
The two businesses that I will be presenting in this assignment are Tesco, which is a public limited company (PLC) as it is owned by thousands of shareholders and the other business is Oxfam and it is a non-profit charitable organisation focusing on decreasing poverty rates. A PLC is a company that sells/trades shares to the public and a non-profit business don’t aim to make a profit. They have many paid workers but only seek to make enough money to cover total costs. If they have extra money they give it back to the community.
As Tesco is a public limited company, Tesco is in the tertiary sector which is where the final product is sold and where they make the profit however they also can come under the secondary sector because they sell and manufacture their own products the business can sell its shares to ordinary people and they now become shareholders and they now can fund Tesco. Tesco’s size is large as it has more than 250 employee’s working for them. In Tesco; the main people who are liable for the losses and profit are owners of the store. The advantages of Tesco have of being a PLC is; there is a limited liability for Tesco and all shareholders and it is much easier for Tesco to raise funds. The disadvantage of Tesco’s ownership are; Tesco cannot make business decisions instantly because they need to confront company directors and major shareholders and the business can be taken over if somebody buys 51% of shares.
Oxfam is an international organisation private sector in the tertiary sector as it sell services to its everyone and the size of the company as they also have more than 250 and an international association of 14 organisations who are trustees of the organisation and work in 98 countries trying to find a solution for decreasing poverty and to educate and spread awareness of these natural disasters and to have a fairer world. Also Oxfam has limited liability; this means that the company is fully responsible for all the debts. Their scope as an organisation is to lower poverty globally as they work in 98 countries around the world, they want the future of the world to be free of poverty and everyone to be treated equally. The disadvantages of the Oxfam ownership is that they are raising money for the poor and the needy but sometimes cannot help everyone and the ones who needs the aid the most. The reason for Oxfam’s success
In Tesco, all profits made is kept to themselves and given to employees as their wage and also can be used to expand smaller stores. In 2017 alone their net income was £54 million, this shows that they are able to afford all their shops to be running And that they can rely on expanding their business and also have profit from the others stores and this means that there is a lesser risk of insolvency for the business and now it’s in a stable position where they can keep expanding. The scope of Tesco is that they sell to a variety of foods and other necessities to their customers the gives their services nationally but tried to do it globally and expanded in America but could not compete with the competitive market and prices against Wal-Mart and failed. Also have other such as mobile banking online where you can check their website where they do mortgages and also online shopping so you can do all your shopping at home with a touch of your finger Tesco has lots of stakeholders which could be their customers, local community, government, competitors, employees and pressure groups. Tesco has more 7,000 stores around the world and are in 13 different countries and have more than 500,000 employees in 2017 worldwide. The reason for Tesco’s success is that they have multiple services which their customers enjoy such as the Tesco club card which gives the user points for each purchase they do they get money back so they spend less. This allowed Tesco to overtake their biggest competitor, Sainsbury and now become the largest food retailer
P2
The stakeholders can influence a business but the managers can decide what the aims of the business are, however if the business does not listen to the key stakeholders such as customers, if they don’t listen to them they can lose sales and also profit and they customers can go to the competitors’ and this could ruin the business’s reputation. Smaller business is going to listen to mainly the customers as they are the main stakeholders for them but bigger business have shareholders which are quite important as they fund the company and also they can vote off directors if they believe they are not doing a good job or if they run the business badly
In Tesco the internal stake holders which include the owners, managers and employees all can influence the business, if the employees don’t help out the customers when they need help it will go against what they value which is great customer service
