Business BTEC Unit 1 Assignment 1 EASYJET + ASDA PDF

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IN THIS ASSIGNMENT I GOT GRADED A DISTINCTION, EVERYTHING IN THE SUCCESS CRITERIA HAS BEEN DONE AND MARKED BY A TEACHER....

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UNIT 1 EXPLORING A BUSINESS – LEARNING AIM A AND B ASSESMENT INTRO: For my first business, I have chosen ASDA. Asda stores limited was founded as Associated Dairies & Farm Stores Limited in 1949 in Leeds. The name of the store is an abbreviation of asquith, and dairies and it is often capitalised. For my second business, I have chosen Water Aid. Water Aid was founded in 1981 by members of the UK water industry at the Thirsty Third World conference held in London. Water Aid was formally established as a charity in the UK on 21 July 1981. In 1993 Water Aid began work on their 1000th project and agreed to fund the Hitosa Gravity Scheme in Ethiopia. DEFINITIONS: NON-PROFIT COMPANY: Is an organization traditionally dedicated to furthering a particular social cause or advocating a shared point of view. PRIVATE COMPANY: Is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering. PUBLIC COMPANY: Is a corporation whose ownership is distributed amongst general public shareholders via the free trade of shares of stock on exchanges or over-the-counter markets. PLC: Public limited company. The acronym PLC (public limited company) at the end of a company name signifies that the business offers shares to the public. LTD: In a limited company, the liability of members or subscribers of the company is limited to what they have invested or guaranteed to the company. Limited companies may be limited by shares or by guarantee. The former may be further divided in public companies and private companies. LIMITED COMPANY: A private company whose owners are legally responsible for its debts only to the extent of the amount of capital they invested. You can only lose assets within the business. UNLIMITED COMPANY: A company where the shareholders have no limit as regards liability. You can lose assets in your business or personal assets. ADVANTAGES AND DISADVANTAGES: Private company Some advantages include keeping your finances private, it aids long term planning, there is limited liability exposure and capital without equity. However, disadvantages could be the restricting of the transfer ability of shares by its articles, private companies cannot issue prospectus to the public, there is more paperwork and other certain restrictions. Non-profit company Advantages to a non-profit company are the personal interest, commitment, there are financial benefits, and you can get a better understanding of things. Some disadvantages are limited purposes, limited funding, social pressure and is quite challenging.

Limited liability the advantages of this could be a member-controlled business, distribution flexibility, simplicity and it avoids double taxation. The downsides include a difficult to raise capital, confusion across states and no perpetual existence. Unlimited liability In an unlimited liability, there is much more freedom and potential tax savings and confidentiality, although personal assets would be at risk, securing a loan could be difficult and unlike corporations. SECTORS, SCOPES, SIZE 4 TYPES OF BUSINESS SECTORS: Primary includes all those activities the end purpose of which consists in exploiting natural resources: agriculture, fishing, forestry, mining, deposits. Businesses that extract raw materials from natural recourses. Secondary encompasses the industries which produce a finished, usable product or are involved in construction. Businesses that turn raw materials into finishes products. Tertiary Businesses that provide a service to customers. The quaternary sector consists of those industries providing information services, such as computing, ICT, consultancy and R&D. BUSINESS SCOPES: All businesses have a certain scope, a level of where they are locally, nationally and internationally. A local business scope is a company that operates only in a local area and doesn’t appear nationally or internationally. A national business scope is a company that is popular but only within one country. An international business scope is a popular company all over the world. For Asda, it is a national business scope, however it is partnered with Walmart that is popular in the USA, but they have different names. Meaning they are a subsidiary of Walmart (Walmart has an international scope). For water aid, this is an international business scope because they help 23 countries in the world. HOW BIG ARE THE BUSINESSES? Asda has more than 165,000 employees, it is a private business with around 631 stores in the UK and USA. Its business scope is tertiary which means the business provide a service to customers. Asda have a wide range of services including Café’s, Scan&Go, Click and Collect, Pharmacies, Opticians, Travel Money Bureau, Gift cards, pay point, Student shopping card, Christmas saving cards and ToYou (delivery to homes). This business has a limited liability and is a PLC. WaterAid has 1000 employees around the world and work in 28 countries in total. It is a non-profit business, WaterAid is an important charity and they make a huge difference. Their services include providing clean water, decent toilets and hygiene knowledge to those who don’t yet have access to them. They believe that having access to clean water and toilets is a human right and nobody should live without. It should be a normal part of daily life for everyone, everywhere. WaterAid’s sector is tertiary and quaternary because they help providing a service and product (tertiary), but they also do research and development (quaternary). This business has a limited liability . Vision, mission and value A value statement is a statement of what a company is, what it stands for, and what everyone can expect from it. A mission statement is a short statement of why an organization exists, what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation. And thirdly, a vision

statement is a vivid mental image of what a leader hopes and wants their business to be at some point in the future, based on their goals and aspirations. A vision statement captures, in writing, the essence of where leaders want to take their business, and can inspire leaders and staff to reach the set goals. STATEMENTS ASDA MISSIONis “‘To be Britain’s best value retailer exceeding costumer needs always’. This means the company wants to sell the best quality products and prioritise the customers and their needs always. VALUE‘Respect for in the individual, quality and customer service’. respect for the individual. strive for excellence. service to our customers. I do think this is important as it shows how the company and its employees aren’t purely focusing on growing their business and it isn’t all about getting money for themselves, customers and product quality is more important to them. VISIONAsda do have a business purpose statement, it is ‘To produce goods and services more affordable for everyone’. Which does prove that they are willing, and it is important to them that they can be the most trusted retailer and cater for everyone and their needs by having cheap prices all at good quality. We help our customers to 'Save money. Live better'. Learn how helping our customers to live better means Asda helps the planet too. It is also one of asda’s priorities to also focus on the planet and using environmentally friendly and using sustainable products (packaging for example) SUCCESS 1. Asda plans to double its rate of expansion in Britain to an unprecedented 20 new superstores a year in the light of the Competition Commission’s inquiry into the £130 billion supermarket sector. 2. A 10% of sales agreement for this initiative has generated more than £150,000 for The Trust, which has been used to support other young people through programmes nationwide. 3. Asda has since gained one million new customers. Six thousand price cuts were made in 2000 and the following spring Asda cut shoppers combined grocery bills by a further £52 million. Asda today has more than 250 stores throughout the UK.

BUSINESS AIMS AND OBJECTIVES: Asda aims to double its rate of Expansion. They plan to double its rate of expansion in Britain to an unprecedented 20 new superstores a year in the light of the Competition Commission’s inquiry into the £130 billion supermarket sector. Aims to be a value retailer that surpasses the customer's expectations in terms of product price. WATER AID MISSION WaterAid transforms lives by improving access to safe water, hygiene and sanitation in the world's poorest communities. We work with partners and influence decision-makers to maximise our impact. VALUE Respect Accountability Courage

Collaboration Innovation Integrity

They are focused on working together with charities all over the world and considering what is important, they want to make new ideas and help as many people and communities as they possibly can. VISION Water Aid’s vision is of a world where everyone has access to clean water and sanitation. The international organisation works in 37 countries across Africa, Asia, Latin America and the Pacific Region to transform lives by improving access to clean water, hygiene and sanitation in some of the world’s poorest communities. SUCCESS 1. Through our partners in Africa, Asia and the Pacific region, we reached 2 million people with clean water and 3 million people with sanitation last year. 2. Has reached 25 million people with clean water and, since 2004, 24 million people with sanitation 3. raises over £2 million for our work in rural Malawi, bringing clean water, toilets and hygiene to more than 134,000 people.

BUSINESS AIMS AND OBJECTIVES: promote and secure poor people's rights and access to safe water, improved hygiene and sanitation. SMART STATEMENTS ASDA “ASDA group Ltd is to provide goods and services that are cheap and affordable to the public. Reducing packaging is one of asda’s key objectives and they consider every option to achieve this goal.” The business wants to provide their services so they’re affordable and the best quality they can be. They want to use sustainable packaging and bags to they are and environmentally

friendly company. They want to use every opportunity they have to be able to reach this goal. “It intends to increase the number of fresh products sold loose from boxes and reduce its range of own label pre-packaged products sold in its stores across the country”. The business plan on expanding the quantity of fresh goods sold loose and reducing is prepackaged, own brand products so nothing goes to waste. “To offer quality products at low price is another aim within the business. In order to cover the aim, they buy products from highly competitive supplier. They also use their own packing and brand name to reduce cost.” They don’t want to sell expensive products just to benefit themselves. They aren’t profit focused. They put customers and their needs first so they can cater to everyone with good prices. They put their own brand name on their things to save money. WATERAID “to promote and secure poor people’s rights and access safe water, improved hygiene and sanitation”. Their aim is to spread the word around the world about the conditions millions of people live in and what their lives are like by visiting the third world countries and documenting a day in their life, doing this and letting others know about these poverty problems encourages us to make a donation to these charities to make a difference to these people, the money we donate goes towards safe, clean water facilities, better hygiene and even shelter and schools. Our small donations go a long way! To support governments and service providers in developing their capacity to deliver safe water, improved hygiene and sanitation; and advocate for the essential role of safe water.” By supporting our governments, we can make sure governments aren’t just focusing on their local areas but also doing their best to tackle poverty all around the world. “Through our direct work and partnership with civil society, government, international organisations, academic institutions and the media, aims to ensure access to improved sanitation, hygiene and safe drinking water for a further 25 million people by 2015”. The goal is to ensure access to better sanitation, safe drinking water and hygiene for millions more people in the world by promoting what their charity does and how big of an impact it has on people through social media, advertisements, government, schools and organisations.

The differences between aims and objectives for private and public businesses. Different sectors of the economy will have different objectives. In private sector businesses, their main objectives are most likely going to be about maximising their profit, provide a good quality service, to survive and keep their business going, operate ethically, maximise their sales, growth and corporate social responsibility. In public sector businesses, their objectives are mainly going to be focusing on providing good services, working within a budget and not going overboard, operate ethically and sere the local community. In third sector businesses, their objectives will link into supporting a cause, providing a

service, raise more awareness of a cause, maximise donations, operate ethically, survival, increase number of volunteers to grow the charity.

How WaterAid and asda can achieve their goals. Businesses can accomplish their goals in many ways, they can be as simple or as complex as they want. For example, WaterAid and other third sector businesses (charities) could promote their business by doing fun activities across the UK like red nose day and mufsy day. This is where we come together at a country and do activities, communities, schools and workplaces also get involved and even some gameshows! By charging a small amount to take part in the activities more and more people get involves and the donations come in so much faster, with this money it goes straight to the charity and after the money has been used to make a difference, they show on tv what they have used the money for and who exactly is has helped (children and families) and the differences it has had on their everyday lives. In asda and other private businesses, to grow their business they could start off by lowering their product prices to gain more customers and eventually their profit income will increase. They could also make interesting advertisements at switching it up to, so their promoting doesn’t get too boring and repetitive.

Organisational structures There are three types of organisational structure, Hierarchical, matrix and holocratic structure. Hierarchical is a system in a business where employees are ranked due to their status and authority. It relies on having different levels of authority with a chain of command connecting multiple management levels within the organisation. Tall There is a management system that includes a president, CEO, and sometimes a board of directors at the top, a middle level of department managers, and a lower level of supervisors and team leaders. o Lots of layers o Long chain of command o Narrow span of control Flat It has few layers, a wide span of control and short chain of command so information flows quickly through the organisation and decisions are made quickly. Matrix is a complex structure which brings together teams of people depending on their abilities to work on specific projects. It is a combination of two or more organisational structures. It is a way of arranging your business so that you set up reporting relationships as a grid or a matrix rather than in the traditional hierarchy. Holocratic structure is a responsibility and authority are distributed amongst the work force by staff working on what they enjoy. Instead of operating top-down, power is distributed throughout the organisation giving individuals and teams freedom while staying aligned to the organisations purpose. Everyone is equal, this organisation structure requires a lot of trust and everybody needs to understand their role.

Pictured examples of organisational structures

Hierarchical

Flat

Holocratic

Tall

Asda uses the hierarchical business structure, the reason behind this is because it has a lot of employees working in various departments of the company. This organisational structure has many levels, and each level is controlled by one person, this structure is best for big businesses like asda.

WaterAid follows a programmatic approach with the following hierarchical structure. -

Organisation Region Country programme Project

Initially data will be aggregated to the organisation and country level.

Impacts on the hierarchical structure: The disadvantages are: -

It may cause a lack of collaboration. It can cause managers to become territorial. It may reduce internal innovation. It centralizes the power structure. It may create communication barriers.

The advantages are: -

Clear lines of authority and reporting within the business. Clearer understanding of employee roles and responsibilities Accountability for actions or decisions at different management levels Clear career paths and development prospects which can motivate employees. Functional areas of a business

The function of something means what it does. Businesses are split into functional areas, often called departments so that each area can be responsible for carrying out certain tasks. In other words, the function of each area is what job it does and in some smaller businesses some functions are joined together. Common functional areas in a business include strategy, sales, marketing, finance and accounting, customer service, human recourses, research and development, production and distribution. What they do: A sales representative is someone who showcases and sells a product or products to businesses, organisations and government agencies, rather than selling directly to consumers. Sales representatives are critical to the manufacturers and wholesalers, as they are the ones that promote and market the merchandise for them. Sales representatives are the principal point of contact between a business and its customers. Sales reps ensure current customers have the right products and services, identify new markets and customer leads, and pitch prospective customers. Companies

should not underestimate the importance of their sales team and the vital role they play in an organization's growth. Sales teams not only increase revenue, but they also have a strong impact on brand reputation, long-term customer relationships, retention of customers and overall business growth. People in marketing monitor market trends, create advertising campaigns, develop pricing strategies and targeting strategies based on demographic data and work with the company to develop more awareness of what they offer. Their job is to ensure that customers are communicated with and are aware of what the company if offering and how to access it. They talk about advertisement and this can be done online or offline by Facebook, flyers, twitter, adverts and guerrilla marketing. In the marketing team there’s; the head of sales and marketing, the senior marketing officer, the digital marketing officer, the senior graphic designer, and there’s also two marketing assistants. The Marketing Department plays a vital role in promoting the business and mission of an organization. It is the Marketing Department's job to reach out to prospects, customers, investors and/or the community, while creating an overarching image that represents your company in a positive light. Finance and accounting involve the concepts of money, business and management, with an emphasis on professional careers in these areas. Accounting relates to information analysis for different aspects of a business, while finance solely concerns a business' monetary funds. A Financial Accountant is responsible for running the accounting and financial activities of ...