Unit 1 Assignment 1 PDF

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Assignment 1 - Unit 1: Exploring Business. High quality and well detailed. Contains correct pictures, and is incredibly well organised and put together in terms of structure and format. High-level research with a professional sense of the layout. Using the information from this assignment will ensu...

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Unit 1: Exploring Business- Assignment 1 Learning Aim: A: Explore the features of different businesses and analyse what makes them successful B: Investigate how businesses are organised

Assignment title: Features contributing to the success of contracting businesses

Introduction This assignment has been studied for a Public limited company and a non-profit organisation, which therefore is Tesco PLC and Cancer research UK has been chosen. The characteristics of these two successful companies will be carefully explored. Therefore, an introduction will be implemented which will be contrasted with the following ownership and liability, company establishment, liabilities, purpose and industrial sector of the two companies.

1/A.P1 Explain the features of two contrasting businesses

Summary

Cancer Research UK is a non-profit organisation a registered charity. A non-profit organisation like Cancer Research is an organisation that doesn't receive cash for its owners has an objective like donating cash to social causes. A non-profit organisation has much more to do than just make profit. The characteristics of a non-profit organisation are that it is not based on the concept of profit making. Although it is certainly a significant consideration to make as much cash as possible (to have the greatest possible resources to offer individuals in need too). A nonprofit organisation like cancer research is focused on offering as much social assistance as possible. A non-profit organisation is fun, not for private gain, for the advantage of the public. They're not out there to make a profit, so they get additional government support that includes tax exemption, so they don't have to pay taxes.

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The purpose of Cancer Research UK is to provide efficient cancer research and to attempt to increase awareness. Established in February 2002. Cancer Research UK attempts to define causes and create prevention, diagnosis, therapy, and cure strategies. The non-profit organisation was established by forming the campaign for cancer research and the Imperial Fund for Cancer Research. The organisation per annum reaches around £634.81 million. Ownership and liability Cancer research is clearly a non-profit organisation out of the three company sectors (public, private and non-profit). This means its organisation with the aim of doing something socially good instead of just making a profit. They are getting funded, raising cash, and accepting donations. Cancer research as a UK registered charity, is a charity that works for charitable purposes and must devote its resources and resources to charitable operations. The charity must be resident in the United Kingdom and cannot use their revenue to help their trustees. As a charity, the benefits they receive should not be used for their members ' private use. There are trustees in a registered charity, such as cancer research, considered as the equivalent in a public limited company as a shareholder. These trustees form a charity's governing body. The trustees are the people who make the large choices. They have a legal function to guarantee that revenue from the organisations is well spent, in the correct manner, and that any debts are evident. Trustees generally select a board of directors for charities, which is headed by a chief executive, just like a PLC. As a registered charity, cancer research is responsible for the misuse of donation money they are caught. That's the trustees ' job of making sure the money is given to a good cause, not for personal use or gain. Therefore, another responsibility would be to ensure that for any reason the organisation is not fined or in trouble. This is the responsibility of the trustees, as they also regulate the company by the authority. This leads to the liability of the charity if it went to a loss it would mean losing all of the money which was funded towards the charity. Purpose The purpose of Cancer Research UK, as a non-profit organisation, is to provide a solution to the dilemma of life loss through cancer form. Being a globally renowned charity, they can alternate the lives of so many unfortunate individuals across the entire world. One goal that UK cancer research has is to provide the world with a secure, cancer-free future. By providing sustainable programs, public education and multiple campaigns to help raise awareness, Cancer Research UK is trying to fulfil these goals. By doing all this, they want to achieve innovative and practical ways of learning from or working with other organisations on a much wider scale. The vast advances in the fight against cancer have been recognized by Cancer Research UK. Less than a quarter of people diagnosed survived in the 1970s, another last 40 years, survival has more than doubled, a half will know how to survive. The ambition of cancer research is to speed up the progress of survival for cancer. However, within the 20 years, expectations have it that at least three quarters of people will have to survive the disease. Cancer research UK does not only aim to fight cancer only in UK. Therefore, it helps the entire world and make a good impact globally. It’s a popular non-for-profit organisation especially in Europe. It has one of the most advanced cancer research centres globally. The 2

donations and funds that they gain is used on their scientific research and health care operations. Therefore, this leads to local communities helping fighting cancer together in a large scale. Industrial sector Cancer research UK is not included in one industry sector because it provides a service and helps people therefore it produces products. It is therefore secondary and tertiary as it demonstrates the service of health care and education, as this shows it is tertiary due to providing a service for health care and education. They are also secondary as they build new equipment and develop new cancer fighting methodology. Scope of Business Cancer Research UK, although its study and methodology is used on a worldwide scale in the fight against cancer, the non-profit organisation itself works on a domestic scale, operating only in the UK. Size of a business Cancer research being globally known as very successful; it is large business. Being honest and working to fight cancer they sure to have many volunteers to help them along the way. The number of employees working for cancer research are 44,000 employees. Om the other hand, only 4,000 of these are getting paid which leads to 40,000 people being volunteers. in fact, this is in United Kingdom alone. Employees like chief executive officers and lead scientists for cancer researchers are the ones getting paid. The volunteers, even though they work for free their travel expenses are claimed for.

Tesco PLC (Public Limited Company)

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Summary

Tesco’s boasts over 6,300 stores globally as a major UK retailer. As such a large retailer, Tesco has pledged to be committed to delivering products of sustainable value to both its stakeholders and its clients. Owning an equity or a stake in the company are called Shareholders as they have an interest in the business. Tesco is extremely dedicated to their high product requirements and guarantees that their own branded products are very high standards for their stakeholders: including food, apparel and home goods. Purpose of being PLC The public limited company's (Tesco) intention is to provide the peak possible service to its customers while ensuring they have the necessary products. This would primarily maximize earnings for their shareholders while maintaining a healthy reputation and connection with their clients and stakeholders. The motto of Tesco's is "Every little help." They strive to offer high quality products, including food and daily needs such as clothing and fundamental home furnishings. Ownership and Liability Tesco is an organisation of the private sector. This means that they are a share of the economy that is not directly influenced by state control. Tesco plc has a private sector organisation that means the company has multiple shareholders and has no government involvement or ownership. Tesco's ownership is a PLC whose shares on the stock exchange market can be freely sold to the public. Tesco's plc's largest shareholders are BlackRock Inc., a Global Multi Asset Revenue Fund, with a £ 1.13 billion stake in Tesco PLC. The firm has a limited liability as a Public Limited Company. Tesco's liability is financial debt and obligations that arise during their operations. Limited liability means shareholders are legally liable for the company's debt only to the extent of their share's initial value. This means shareholders are safe, if corporate debts are not a personal issue for them, this leads to only losing their investment of the share. Unlike unlimited company. The 4 Business sector

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There are 4 sectors which are held in the industry, which therefore includes primary, secondary, tertiary and quaternary. Primary Sector - This includes the purchase of raw materials. For instance, mining of metals and coal, drilling oil from the ground, tapping rubber from trees, framing foods, and trawling of fish. This is sometimes referred to as manufacturing for extraction. Secondary Sector- This is the method of production and assembly. For instance, making plastics from oil includes assembling the product, e.g. construction houses, bridges and highways, includes converting raw materials into parts. Tertiary Sector- This relates to business services like commercial supporting the process of manufacturing and distribution, such as insurance, transportation, advertising, warehousing, and other services such as learning and health care. Quaternary Sector- The Quaternary Sector comprises those sectors that provide data services such as computing, ICT, consultancy, research and growth. Mostly in the field of science. Quaternary sector can be included in the tertiary sector too, since they are both service industries. In fact, the tertiary and quaternary industries make up the majority of the UK economy, employing 74% of the workforces. Overall, as an organisation, TESCO is part of the tertiary sector because of Marks and Spenser's ability to provide many facilities such as clothing and food. Marks and Spenser supply banking, energy, wine and technology as well. Scope of Business Scope of business contains three types which are local, national and international. Local business- Local businesses sell their products and services to customers in their own town, city or geographical region. An excellent instance of such a company could be a oneperson barber shop as a local business, as the barber would give target their service in that society to people. Usually the term local scope is used when referring to companies owned locally. Because local companies have a few locations, they tend to find it highly difficult to compete with bigger worldwide organisations, particularly in terms of pricing. Many local businesses, primarily for this reason, tend to concentrate on offering outstanding customer service to build a durable relationship and loyalty, almost in exchange for the greater cost, to provide a reason for the return of the client. National scope businesses – A national business undertaking within a country's boundaries. A domestic enterprise, like a local business, recognizes the country's culture and develops products and services to fulfil its market. The health of the national market of its areas can be an incredibly significant consideration for the achievement of the enterprise. National companies, like local companies, have many more locations. This implies that pricing can be more competitive. This is because its raw materials are purchased. The more it purchases, the reduced the cost. Like a local business, a domestic company recognizes its consumers' desires and needs and offers products and services that meet client requirement. Instead of a town or city, national companies can access much bigger markets to sell their product or service across the nation. International scope business- An international business operates worldwide and has access to a market that is much bigger than that of a local or domestic company. A bigger market implies more customers buy the products and services of a business, which implies more earnings for the business and its owners.

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It is an international business because it has more than 6,500 stores throughout Europe, Asia and the Middle East. They provide three distinct business models one of which is to have a franchise or join a venture or own a Tesco PLC store. They want to hold the quality of clothing and household collections. Tesco's are suitably known for their easy-to-use website. Because an international business has access to larger markets, it doesn't have to worry about a competitor entertaining and selling a market. Also, its likelihood of being concentrated in other industries, so the effect of decreased revenues in one region on its general revenues would be less important. International companies also provide customers with more product options and consumers which cannot be obtained nationally or locally. Overall, Tesco PLC has more than 6,000 shops in 13 separate countries including India and Poland, as well as the UK, making it an international business, therefore an international scope. They have majority of their shops in Europe, with more than 5,000 in Europe alone and the remaining few hundred shops in Asia, India and the Middle East in particular. Sizes

Businesses can come in 4 size: Micro, Small, Medium and Large. Micro businesses are businesses that contain less than 10 employees and per annum turns over less than £2,000,000. This is usually considered a micro sized business. Therefore, a small business are companies with around 10 to 49 employees and a turnover of less than £ 24,000,000 per year is regarded a small business. On the other hand, medium-sized enterprises would be between 50 and 249 employees, and a turnover of less than £50,000,000 per annum is regarded a medium-sized enterprise. However, a large business is a business with more than 250 employees and is considered a medium-sized business with a turnover of more than 1,500,000,000 annually. Overall, as Europe's largest, Tesco is regarded a large organisation because it has around half a million staff globally. Including their subsidiaries, the company turns over £55,920,000,000 last year.

BTEC level 3 National Extended Business Studies – Unit 1: Exploring Businesses

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A.P2 – Explain How two contrasting businesses are influenced by its stakeholders. I will explore and explain the impact of stakeholders on two contrasting organisations in this assignment: a PLC as well as a non-profit organisation. I should attempt to explain precisely how the two distinct kinds of organisations influence these impacts. There are stakeholders in every company. In-house stakeholders or perpetual stakeholders may exist. Involved stakeholders ae and have indirect contact for company decision-making. Stakeholders may come in the form of individual individuals. People's groups or businesses and organisations. These stakeholders may be in frequent company contact or may have only occasional company contact. There is two type of stakeholders which include internal and external Introduction of the types of Stakeholders: Internal stakeholder The stakeholders that are linked directly to the business are known as internal stakeholders. Examples of different internal stakeholders include organisation employees, managers, administration staff and the owners of the business. The internal stakeholders can affect the business activities and have a direct influence upon a business. The role of the employees of a business, as internal stakeholders, is to reports to the owners as they have the ultimate power over the business activities that take place and to decide what important business decision must be made, all internal stakeholders have an effect on the business and their decisions can have a positive negative outcome towards the business. The directly related stakeholders are known as inner stakeholders. Examples of various inner stakeholders include employees of the organisation, executives, management and company owners. Internal stakeholders have the capacity to influence company operations and impact a company directly. The function of a company's staff as inner stakeholders is to report to the owners as they have the ultimate power over the company operations taking place and to decide what significant company choices are to be taken, all inner stakeholders have an impact on the company and their choices have a favourable adverse impact on the company. External stakeholders The stakeholders that are linked to the business from an outside point of view are known as external stakeholders. External stakeholders can be described as a party, influencing an organisation. However, it isn’t directly part of that organisation. Examples of external stakeholders include suppliers, debtors, creditors, competitors and a few others. External stakeholders are differentiated away from the business and they are defined by customers, creditors, suppliers, lenders, debtors. The stakeholders who are externally connected to the company are known as external stakeholders. External stakeholders, affecting an organisation, can be defined as a part of the organisation. It's not part of that organisation straight, though. Examples of outside stakeholders include vendors, debtors, creditors, rivals, and a couple more. External 7

stakeholders can differentiate from the business. For example, external stakeholders can be like customers, lenders, debtors, creditors and suppliers. Customers= Your company potential for clients is almost exclusively reliable. A company depends on the capacity of its clients to develop sustainability. Customers are the stakeholders that end up buying the item or serving an offer. Suppliers= Business suppliers are persons supplying the products for sale or supplying the raw materials to produce the products. A great example of this is a builder or bricklayer requiring the supplier to supply cement and bricks. Lenders= External stakeholders lend money or services to a business are the lenders for a business. Something like a start-up business loan may include this type of thing. These loans are available through selected banks and government agencies. However, other types of loans that a lender may require may include a property mortgage or a vehicle financing deal. Debtors= Nearly all companies have their own debtors. A debtor is an organisation and/or individual that owes the business money. If you have been given a certain amount of time to pay for a product or service, you will be a debtor to the business in question. Creditors= Almost all businesses also have creditors as well as debtors. Creditors are those who owe money and can therefore be an organisation and/or a person. We could potentially be a supplier to a business until they are paid for anything they have supplied to the business. Competitors= Any business or organisation or service that is directly competitive with the business concern shall be called an external stakeholder. To fulfil a business ' successful operations, it is necessary that they identify their competitors and find out exactly what they are offering. This will allow the owners of the business to be prepared of what sort of choices is right to push the business forward. Government department and government agencies: the government and their select agencies and department are known to businesses as external stakeholders. Therefore, some examples of different departments may include: the “government department or businesses” or “HMRC: Her Majesties Revenue and Customs.” Communities= Communities which effect the businesses can be local, international or even national. They may be in operation of the business such as port office, working in a partnership, helping the community etc. Interest groups= The interest groups normally include members which clearly have an interest in the business or the whole industry its...