Unit 1 assignment 1 - BTEC business level 3. unit 1 assignment 1 . exploring business
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Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
unit, which introduces students to the different aspects of running a business. The assignment is designed to help students understand the external factors that can impact businesses, such as the political, economic, social, technological, legal, and environmental factors.
The assignment typical...
exploring the features of two contrasting businesses
Written for
BTEC
PEARSON (PEARSON)
Business 2016 NQF
Unit 1 - Exploring Business
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Assignment 1
In this report, I will be exploring the features of two contrasting businesses Oxfam and Tesco
and analysing what makes them successful and explore how each of the businesses are
organised.
Oxfam
P1 The features of the two
contrasting businesses.
Ownership and Liability
Oxfam is a not-for-profit this means they have limited liability as they are not
reasonable for debts and assets if the company fails. Oxfam is a charity which in tales
there are no owners of the business as there is no profit to be made. Oxfam is run by
trustees who are selected by their commitment to the purpose of Oxfam.
Purpose
On Oxfam's website they say they want to End Poverty, this is clearly shown by their
slogan “Together, we fight inequality to end poverty and injustice.” The way Oxfam
can fund their charitable work is because their total income was £409 million last
year of instructional and public funding. This includes £176 million a year from the
UK Government and other public authorities, £108 million came from donations and
legacies and £91 Million from sales in the shop.
Oxfam help fight poverty by working with schools in third world countries and they
are devolving global learning in the classroom and wider community. Oxfam have a
large amount of free education courses that give children who would usually not
have access to education the education they deserve for a better life. Oxfam also
donate clean water which saves lives in countries like Lebanon and Zimbabwe. By
doing this Oxfam help millions of people a year to not die from lack of water. They
,also supply clean water when emergencies or disasters strike. In Oxfam's own words
“Too often, people have no choice but to drink dirty, unsafe water, and to use toilets,
taps and containers that spread disease. So, we campaign for everyone to be able to
access the water we all need. Oxfam are also beating hunger. It is vital they achieve
this because one in nine people go to bed hungry. Oxfam support local small
businesses to grow food and keep livestock which has helped so many families and
communities.
Sector and Scope
Oxfam falls into the tertiary sector. In the tertiary sector a business provides a
service. Oxfam falls into the tertiary sector because they provide people in need with
help such as food and clean water etc by selling products such as clothes and books
that were donated by the public, Government and organisations. Oxfam’s scope is
large and international as they work in 70 countries, have 5,300 employees, and
works with more than 22,000 volunteers, whilst helping 12 million people fight
poverty.
Reason for success
As Oxfam is a not-for-profit business, the reason for their success is not to have
sustainable profits but have just enough to continue the business and help as many
people that they can with the revenue they get. For that reason, they need to focus
keeping on top of their finances to ensure that their spending does not exceed the
income they receive.
Tesco
Ownership and Liability
Tesco is a PLC (public limited company) this means that Tesco and Tesco's
shareholders have unlimited liability to their share of the company. Tesco allows
people to invest in the company through shares. An advantage to being a PLC is
having better capital because. However, a disadvantage is that Tesco will have much
more scrutiny on what financial actions they take.
Purpose
Every business needs to generate revenue and make investments to keep it running.
Tesco is a major player in both the supermarket and general retail sectors. Tesco's
aim is to retain loyal staff. However, if the business is not doing well, it is only logical
that there will be no customers. If there are no customers, shareholders will not
invest money in the company. If there is no money flowing into the company, the
, company cannot afford to employ people. Tesco needs to make sure that it earns
enough money to open new locations if it wants to expand its business. Tesco also
offers financial services such as its own credit card, diverse types of insurance,
personal loans, and home deliveries. Tesco Bank made 1.2 billion in profits for Tesco
last year. Their home deliveries have also increased massively. Tesco said sales in the
UK and Ireland rose 8.6% to £24.3 billion, on total sales of £28.7 billion last year.
Sector and Scope
Tesco is in the tertiary sector because it is providing goods and services in their
supermarkets that every person needs in their life and because Tesco bank provides
credit cards, several types of insurance and personal loans to people. Tesco’s scope is
like Oxfam’s, as Tesco are a large company that operates internationally and has its
headquarters in Hertfordshire, England. Not only is Tesco one of the biggest brands
in the UK but is also the sixteenth most valuable brand Worldwide.
Reason for success
Tesco is a successful brand, as evidenced by the degree of global brand recognition
the company name enjoys. Most people have either worked at or shopped at Tesco
or one of its affiliates. Tesco is known for its dedication to its customers, its high-
quality products, and its competitive prices, which have helped the company build
excellent brand equity and positive associations with consumers that have paved the
way for growth. Every Little Helps, Tesco's family-friendly advertising slogan, has
given it an air of consideration for subtle differences and, consequently,
consideration for the easily disregarded individual. Local markets like Tesco Metro
and Tesco Express have discovered a new and financially rewarding sector in lieu of
concentrating on supermarkets. Small shops in residential areas and smaller high
streets are conveniently located and offer a variety of reasonably priced goods. They
provide services to those looking for high-quality branded goods as well as
reasonably priced goods. Tesco has the power to appeal to anyone, regardless of
their financial situation or social standing.
P2 How two contrasting businesses are
influenced by stakeholders.
Oxfam
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