BTEC Business- Exploring Business Assignment 1. Includes P1, P2, P3, M1, M2, D1 criteria's. This assignment looks at the features contributing to the success of two contrasting businesses. The two businesses studied in this essay are Manchester United PLC and the Ministry of Defense. First page pro...
EXPLORING BUSINESS
ASSIGNMENT 1
Assignment 1: Learning Aim A & B
Title: Features contributing to the success of contrasting businesses
Aim A- Explore the features of different businesses and analyse what makes them
successful.
Aim B- Investigate how businesses are organised.
Criteria How to achieve the criteria
A.P1 Explain the features of two contrasting businesses.
A. P2 Explain how two contrasting businesses are influenced by stakeholders.
A.P3 Explore the structures, aims and objectives of two contrasting businesses.
A.M1 Assess the relationship and communication with stakeholders of two
contrasting businesses.
B.M2 Analyse how the structures of two contrasting businesses allow each to
achieve its aims and objectives.
A/B. D1 Evaluate the reasons for the success of two contrasting businesses
reflecting on the evidence gathered.
Introduction
In this evaluative report I will be exploring two contrasting businesses: The Ministry of
Defence (Business 1) and Manchester United Plc (Business 2). I will carry out secondary
research into the features contributing to their successes and will briefly explain the
features within businesses such as ownership and liability, organisational structures,
internal and external stakeholders and many more.
Business 1- Ministry of Defence
The Ministry of Defence (MoD) was first formed in 1940 by Winston Churchill and Atlee
created the Ministry of Defence Act in 1946. Secondly, between 1946 and 1964 five state
departments was the Ministry of Defence; the Admiralty, War Office, Air Ministry, Aviation
Ministry, later merging into the present-day Ministry of Defence in 1964 with forces of the
Royal Navy, Army, Royal Air Force and Strategic Command. (en.wikipedia.com)
Business 2- Manchester United PLC
Manchester United was first created in 1878 by Lancashire and Yorkshire Railway as Newton
Heath LYR FC. Later changing to present name in 1902, winning their initial First Division in
1908. Between 1986 and 2013 Sir Alex Ferguson was manager, overseeing the most
successful period becoming England’s most successful club. Finally, in 2003, Malcolm Glazer
brought a stake, completing a takeover 2005. To conclude, Malcolm Glazer was chairman
until his death in 2014 and his son Bryan Glazer took over alongside his brother’s Joel and
Avram Glazer. (en.wikipedia.org)
1
, EXPLORING BUSINESS
ASSIGNMENT 1
P1. Explain the features of two contrasting businesses
A1 Features of businesses
Ownership and Liability:
Businesses can be owed in three main ways:
Private Ownership: A business is owned by citizens who have liability (held responsible for
all business aspects). Thus, they usually take more risks to make profit, these businesses can
be of any size.
Types of private businesses:
Sole traders are individuals operating a business themself; they are responsible for all
business aspects. Nonetheless, they can hire personnel for the business as they are only
trading through their name, such as plumbers and ice-cream makers.
Partnerships: two or more people operating a business together, they share responsibility,
profits, cost and decision making; all partners can contribute with these factors.
Private Limited Companies (LTD); Businesses of any size with limited liability which are
owned by shareholders (those who brought shares). However, these businesses need to be
registered with Companies House, thus, paying corporation tax (tax on business profits).
Nevertheless, there are positives such as only having internal influence and the ability to sell
shares for extra funds.
Public limited companies (PLC); Similarly, a business with limited liability which sells shares
on the stock market to the public (‘floating’) but is overseen by a board of directors and a
CEO. Also, they can get economies of scale (bulk buy for better prices) but is expensive to
start up and has greater chances of hostile takeovers.
Co-operative’s- Contrastingly this is member owned with equal voting rights; was first
formed in Rochdale (1885) to help provide the local community with affordable products
such as food (their main aim).
Alternatively, public ownership are businesses usually belonging to the government; can be
brought for investment or support such as the NHS, and Met police. Yet, the government
are liable for them but will likely take fewer risks as they mainly aim to help citizens.
Also, not-for-profit ownership is mainly for voluntary and charitable purposes for example,
Cancer Research, still, they share similar features as ordinary businesses such as operations
on business lines and making enough capital to keep running.
Liability
Liability is used to protect businesses from being sued or held legally responsible for
anything.
Limited Liability- This is when the liability for the business has a limit or cap on the amounts
possibly sued. When starting up the risks are ignorable. (RQF Unit 1 textbook)
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