Btec Business Level 3 Unit 1 Task 1 - features contributing to success of a business
45 views 1 purchase
Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
Btec business level 3 national diploma - unit 1, task 1 - features contributing to the success of a business... this is from a distinction* distinction* student in 2023
This will meet all the necessary requirements. Saves time and increases efficiency.
Features Contributing to the Success of Two Contrasting
Businesses
Tesla, Inc. vs WWF (World Wildlife Fund)
Success of a businesses is reliant on a series of factors that may differ between different enterprises.
In this collection of analysis, I will discover and define some of the reasons that may have and
continue to be responsible for the growth and prosper of the selected, contrasting enterprises.
To begin with, Tesla, Inc. - named after the great inventor Nikola Tesla - is an American automotive
business that seek to revolutionise the manufacture and distribution of electric cars, energy
production and storage. The Californian enterprise is a Public Limited Company (PLC) and is
a successful business that generates great profits. Due to being a PLC, they have limited liability
meaning that the business owners themselves are not held accountable for any debts or legal
issues that the business throws themselves into. A benefit of being a PLC that could have drove Tesla
to success is that this allows them to freely sell their stocks on the stock exchange.
This attracts interest and soon provides the capital provided through the sales of shares in
the enterprise, that they can then use to develop their business and become more profitable. With
these benefits come some disadvantages, as their financial information and performance
becomes publicly available, this can be an issue in many ways, one of which may be that if
the fundamental financial factors are weak then the share price potentially could decline. Other
negative factors could be that Tesla are vulnerable to public scrutiny, which can affect the business
in many ways. Tesla Inc spans the globe with its hundreds motors stores, offices, galleries and
services, but specifically in the UK they have 26 stores and 30 service centres located in the most
popular and bustling of cities. Evidently, Tesla also has a remarkably successful online presence that
in 2018 produced 78% of its Model 3 sales. The fundamental source of this may be its simplistic
website design combined with the range of freedom that it supplies its potential customers. For
example, their graphically pleasing customisation tab that allows the prospective client to obtain
what they desire aesthetically and functionally from the car, increasing the sales displayed by the
recent statistics.
On the other hand, WWF – World Wildlife Foundation – a Swiss
charity that was founded in 1961 by a group of enthusiastic
people that intends to radically improve the many pressing
threats to biodiversity, and the impact of humans on the
natural world and environment as we know it. Unlike Tesla,
they are the one of the largest private limited companies
internationally. Being a private limited company can be
extremely beneficial as they also have limited liability, meaning
that the shareholders in the company are not held reliable to any debts that may amount up and can
only lose the money that they have previously invested into the business from their shares. Being a
private limited company is fairly restricting, this is because to be a Ltd company, you must be
registered with Company's House, this releases large sums of information and details about the
business while requiring an ongoing fee to maintain this registration. Continuing this point,
shareholders are unable to sell shares to the public, this means that the potential to gain capital
from the sales of shares is ultimately reduced. WWF’s primary source of income is through their
online websites by providing a series of donation schemes for example adopt an animal of your
choice, where you pay a monthly fee or a one-time payment where a majority percentage is put
towards the attempt to shield the animals selected from the threats that unfortunately has led to
1
,Name
their endangerment and potential extinction. Impressively, this is not their only source of revenue,
they have a series of gift shops and concessions that are strategically implemented in areas that
increase the footfall of potential customers with specific wants and needs that match their target
customer profiling and as a result leading to many more sales and reinforcing their success.
Their Size, Purpose & Scope
Tesla Inc are extremely successful and currently have next to no competitors internationally, the
closest being other automotive enterprises in China. Having stuck to their sole scope from the
beginning has greatly benefitted their business. This plan is to gradually decrease the expenses of
their futuristic electric cars and provide a zero-mission energy generation system. This creates a
good public image and attracts greater sums of customers due to their promises, this is evident by
their massive growth in the recent years. As with most businesses like Tesla, they aim for increasing
profits, this provides an incentive to succeed. Without this urge they may have been less likely to
have been as successful as they are.
Despite completely contrasting Tesla, World Wildlife Fund are also considerably triumphant, being
arguably the largest independently owned non-profit organisation. WWF and their more than five
million supporters are pursuing their objective to restore nature san and tackle the main causes of
nature’s decline, particularly animal extinction, the food system and climate change. Similarly to the
opposing business, they have stuck by what they originally set out to do. Reputation is essential in
this type of market and this act provides the evidence for their reliability, ultimately leading to a
positive brand association. Positive brand association has been a key factor to success throughout
history and will continue to be a trend that will grow exponentially. It is seemingly clear that WWF
has somewhat achieved this objective to obtain good brand recognition due to their positive
financial reports and only two main threating competitors being Greenpeace and UNICEF.
Tesla have expanded across parts of Asia, Europe, and USA, meaning that they are considered to be
a growing large enterprise with over 10,000 employees. Their products are manufactured
themselves meaning they can create an attractive design that is sleek and modern that meets the
wants and needs of the customer. Tesla’s automotive architecture helped the success of the
business as not only is their products efficient, eco-friendly and in many ways better than fuelled
cars they are desirably pleasing to the eye. Having a tangible product is important because the
customer can visualise the product’s quality, features, styling, packaging and most importantly brand
name. Tesla meets this requirement by offering the option of a test drive on their website, all that is
needed is some personal information. This helps to develop their brand image, which is key in a
business's success, but it also provides Tesla with personal information that is needed to pursue the
customer and potentially leading to sales.
Some of the products that Tesla include:
- A variety of unique cars, trucks and other vehicles with interesting features like autopilot.
- First and Second-hand vehicles
- Powerwall (reduces reliance on the grid by storing solar energy to use when the sun isn’t
shining.)
- Commercial Energy products and services
- Utility products and services
- Solar panels and Solar roofs
2
, Name
WWF is also extremely large, operating in more than 100 countries, dedicating considerable efforts
to reversing wildlife decline and combating climate change. They have around 58 offices around the
globe and a keen 6,203 staff members, concluding that their organisation is a large enterprise.
Primarily, the majority of World Wildlife Fund’s income comes from public donations in the form of
memberships, adoptions and legacies. Other sources include a series of products in the lucrative yet
massive gift market. According to the WWF website, 83% of their income goes towards their
advertised charitable activities, 11% is spent on their fundraising projects and the other 6% is spent
on finance and administration.
Market Sector
A market can be separated into multiple segments and products fit into these segments and help a
business determine what will be more likely to sell and what will not. Tesla specialises a B2C
business, meaning that they sell directly to their consumers. This is fairly distinctive because most
manufacturers sell through franchised dealerships. An array of potential benefits was speculated by
Tesla during the erection of this intrepid idea, for example by owning the sales channel, they
believed it can gain advantage in the speed of its product development. More importantly, it creates
a better customer purchasing experience that unlike car dealerships, Tesla showrooms have no
potential conflicts of interest. Tesla dominates their market being in the quaternary sector by
offering enticing images and information alongside the product to help persuade their potential
customers, leading to greater influx of sales and overall guaranteed success. Tesla operates in two
main sectors, that being automotive and the energy generation and storage. Profitability in the
Automotive industry is remaining strong across the world with the industry being valued at $928.0
Billion in 2017, and is expected to reach $1,512.3 Billion by 2025, and a staggering £28 billion in the
UK.
Tesla is efficient at obtaining funds as they do not pay dividends – a sum of excess profit that is
distributed between shareholders. Instead, they redirect income flow back into their business and
into innovative technologies and improvements
How Two Contrasting Businesses are Influenced by Stakeholders
Internal and External Stakeholders
There are two different types of stakeholder: internal and external. Stakeholders -found in every
type of business- is any kind of individual or group that take an interest and all obtain a stake in the
enterprise. Internal stakeholder are people whose interest in a company comes through direct
relationship, such as employees, ownership, investment (shareholders) and managers. Contrarily,
external stakeholders are those who do not directly work with the company but are affected by the
actions and outcomes of the business, some examples of this may include: customers, suppliers,
creditors/debtors, local community, society and the government.
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller fgjbaker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.60. You're not tied to anything after your purchase.
