Unit 1 Features contributing to the success of contrasting businesses PDF

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Unit 1 Exploring Business 28th of November 2020 Features contributing to the success of contrasting businesses

Submitted by Roman Shainsky Submitted to Mr.Felix

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Features of two constraining business Page 2 How two contrasting businesses are

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influenced by stakeholders The organisation structures, aims and Page 9 objectives of two contrasting businesses The relationship and communication Page 12 with stakeholders of two contrasting businesses How the structures of two

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contrasting businesses allow each to achieve its aims and objectives The reasons for success for two contrasting business

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Features of two constraining business

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Introduction to ASDA ASDA is a profit making company which was founded in the UK in 1949 by Peter and Fred Asquith and Sir Noel Stockdale. This company is one of the biggest food retailers in Britain; they have 636 shops around the country at the moment. ASDA is a subsidiary company owned by Wal-Mart but it has their own directors and team in the UK. They have a huge range of products they sell in their stores from clothes to grocery etc, also they give the ability to take loan or have their store card.(reference 1)

ASDA Sector Business can be classified into 4 different sectors according to its nature they are: primary, secondary, tertiary and quaternary. Primary is mostly related to obtaining raw materials, secondary is basically manufacturing of products, tertiary is selling services to private business and quaternary is based on knowledge and high skill workers in most cases related to IT. ASDA is based in the tertiary sector as it offers plenty of services from selling groceries to any financial service.

Purpose of ASDA ASDA is a huge supermarket in the UK and it sells a big variety of products such as clothes, grocery, furniture, toys etc. It can also offer financial operations for example insurance, currency exchange, its own store card, loans etc. For instance as they say that their main objective is to make their customer happy by selling only high quality products and services with a low price, what is a big benefit and the example of their words is their slogan “SAVE MONEY LIVE BETTER”.(reference 2)

Ownership and Liability of ASDA ASDA is a private limited company and is owned by Wal-Mart. This business is mainly owned by shareholders because anyone who wishes can buy their shares. They “

have limited liability so if ASDA will get into debt the shareholders will lose only their investments.Also it is part of a private sector which means their main objective is to make profit which gives them ability to not give the control of the business to the government, when the public sector partly owned by government.(reference3) 2

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Scope of ASDA Asda have a national scope which means they are only selling their products inside the UK and it has more than 635 stores located nationally. However as I already said it is owned by Wal-Mart (American company) but it has main offices located in the UK and 25 distributors all across Britain which distribute across their network of supermarkets.

Size of Asda ASDA is a large company because it has 145000 employees. Its 2018 net cash flow was 309 millions pounds, their revenue in 2016 was 21.67 billions pounds and it has around 15% of a grocery market in the UK.

Introduction of RSPCA Another name of RSPCA is Royal Society for the Prevention of Cruelty to Animals it is non-profit making charity that operates in England and Wales it is the largest and oldest charity which is working with animals in the whole world. It was founded in 1824 by Richard Martin, William Wilberforce and Reverend Arthur Broome. They care about the safety and welfare of animals and they have already saved 114584 animals. (reference 4)

RSPCA Sector It is part of the tertiary sector because it provides services to help animals. They are providing treatments, shelter etc.

Purpose of RSPCA Because RSPCA is a charity it has to follow some requirements of purpose and follow the 13 categories and it is for public benefit “Charity act 2011”. The RSPCA falls into the advancement of animal welfare and its main purpose is to provide services by promoting kindness and alleviating the suffering of animals and preventing cruelty. It also exists for the public benefits and involves voluntary. (reference 5)

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Ownership and Liability of RSPCA The RSPCA is a non-profit organisation which means their aim is to surplus to support and promote their cause by running funds. This charity is private and self“

governing which means they are not partly owned and financed. The RSPCA is a registered charity because it has income over 5000 pounds. It is run the same as business because of its large amount of revenue they are even spending money on advertising what not all charities can afford. Because they are charities they have to pay very low business rates and they can benefit from the many tax reliefs. (reference 6) ”

Scope of RSPCA The RSPCA scope is national because it is only work in England and Wales. They have 1000 shops and 162 branches.

Size of RSPCA RSPCA is a large company because it has 1794 employers, they have 340 inspectors, 50 animal welfare offices and 88 collection offices. Their revenue in 2017 was 140.9 millions pounds. As I said below it's the biggest charity in the UK.

How two contrasting businesses are influenced by stakeholders Definition of Stakeholders According to wikipedia “Stakeholders can be one person, group of people or organisation which have interest or concern in the company. They can affect a company or be affected by this company. There are two different types of stakeholders internal and external, internal are employer, managers and owners and external are suppliers, community, government, pressure/interest groups,

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creditors/debtors, shareholders, competitors, donors and customers.”

Internal stakeholders of ASDA (reference 7)

Employees ASDA stakeholders are also employees and they have an interest in salaries and bonuses. Sales workers help ASDA to market its products.Employees have a big

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influence on ASDA because they are the face of the company. One factor is employees' feedback because they are communicating with customers live all the time they have a good understanding of customer needs so they are able to create new ideas which in future may cause profit and success. ASDA knows how employees are relevant to the business that provides specific training to their staff which gives them knowledge about improving customer service and ability to improve their speech and make it in a better manner. ASDA communicates with their employees through face to face or online meetings. ”

Shareholders Shareholders are known as the ASDA's primary stakeholder because they invest in ASDA that allows them to increase the investment. ASDA can invest in something that can create benefit for ASDA through this assistance. Shareholders are especially interested in how much profit ASDA makes because as a dividend they receive a share of profit.Shareholders have influence on ASDA because they make lots of big decisions such as merging, acquisition, company closures and executive remuneration. They participate in general meetings where they are making their decisions, each of them have unique voting rights. Shareholders are important for ASDA because they make decisions of potential merging with Sainsburys which would give both of the supermarkets a 30% of all grocery markets in the UK. ASDA is getting in touch with its shareholders by Emails, meetings and investors pages.

Managers The manager is another ASDA stakeholder. Manager organises workshops to determine how they will achieve their strategies and plans. The manager also arranges

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training for the existing and new workers. This allows ASDA to have strong staff and leadership.Manager have influence on asda because they look after the staff and gives them extra motivation and it helps workers to work more efficiently and honestly which is directly linked to the profit and reputation of the business. Well working staff will also increase sales which has a huge impact on profit for ASDA.

External stakeholders of ASDA (reference 8)

Customers In shaping the priorities and strategies of ASDA, customers play a major role. The interest and desires of the client are quality goods and warm welcome, though there is also hope of cheap goods in this. If the customer knows that they are purchasing inexpensive items, they will buy additional goods. This allows ASDA to create an image that is cheaper than other stores for customers. This image would have a longterm effect on ASDA revenue. More customers means more sales and more sales means more profit.

Suppliers Suppliers are also helping to meet their targets through ASDA. Suppliers are involved in marketing their items to ASDA. As the aim of ASDA is to provide cheap goods, the supplier supplies products without quality packaging, then ASDA bundles these products in its own box, lowering packaging costs. ASDA, on the other hand, also uses its own brand to market products. ASDA is thus achieving its goal of offering cheap products and therefore building an image that is cheaper than other brands for ASDA's own brand.

Government The government is also a large ASDA stakeholder. The government is directly engaged in tax collection. The government is also worried about the jobs that ASDA has provided. Every law and policy set by the government must be enforced by the ASDA. So there is an interest in this group in two ways. ASDA allows governments to achieve their target of a high job rate. In the time of recession or when ASDA will

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be close to failure by providing financial support, the government often supports ASDA.

Internal stakeholders of RSPCA (reference 9)

Owners A team responsible for the overall management of a company is the board of trustees. The board of trustees of the RSPCA has a lot of impact on how the RSPCA works. They monitor how well the charity is run, as it is their responsibility to ensure that all the aims of the charity are met. The board of trustees will have to ensure that things like financial sustainability are all in order and they will have to neglect the charity's operations strategies. However the biggest influence they give is controlling everything that is happening in the company.

Employees There are two kinds of individuals working for them in the RSPCA, employees who are paid and volunteers who work for free. Such employees are given roles by supervisors, so they have less control and leverage over the RSPCA. A total of 1749 people are employed by the RSPCA.Employees are one of the key reasons behind the performance of the RSPCA. All the activities are made possible by them. In 2018, more than 102,900 animals were gathered and saved by the frontline workers alone which helps the charity achieve its priorities and objectives.

Managers Influence on the business. As they are accountable to team members, they will make crucial decisions on a day-to-day basis that will impact how the RSPCA works and how tasks are conducted.In RSPCA managers are mainly people who are in power in animals welfare offices where most of the important thing is happening

External stakeholders of RSPCA (reference 10)

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Donors have a big influence on RSPCA. Main reason for that is that donors are the main source of income for charity, they are basically giving money to them and not expecting them back.Charity needs to provide them with transparency and proof so that they can see that their donations make a difference, Donors also influence RSPCA by creating a general awareness by social media.They communicate with their donors by emails and websites.

Customers The customers of the RSPCA are the individuals who use its many programmes. When interacting with clients, they strive to be consistent and respectful. For their clients, they often keep a variety of open days.Which gives customers ability first to look where money goes second simply play with animals. The RSPCA will have nothing to do without the customers and thus have none of the success they have gained. The clients help them to accomplish their goals of improving the health of animals.

Suppliers Suppliers will provide the RSPCA with raw materials that will provide them the requisite tools to perform tasks such as assisting and saving animals with their wellbeing. The RSPCA partners with the association of pet food suppliers who provide them with pet food for all the animals they save and the animals in their care.

The organisation structures, aims and objectives of two contrasting businesses

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Key Meanings about organisational structures According to Pearson B-TEC national textbook:Hierarchy “is a system in which members of an organization or society are ranked according to relative status or authority.” Span of control “is the term used in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has.” Chain of command “is an official hierarchy of authority that dictates who is in charge of whom and of whom permission must be asked. “ Delegation “is the assignment of authority to another person to carry out specific activities. It is the process of distributing and entrusting work to another person.”

Organisation chart of Asda

(Reference 14) “Asda is a tall hierarchical organisation, which suggests that the organisation is organised in tiers, with those at the top having more control than those at the lower levels. There are many, there are many within a hierarchical structure, advantages and disadvantages. Such attributes include the fact that there is a narrow span of control, which means that there are a limited number of employees. The director is directly responsible for this structure, which also enables promotional opportunities.” Finally, there is a more regulated atmosphere that guarantees that workers can

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concentrate on more of their roles as all is well handled.Nevertheless, there are also a variety of hierarchical system disadvantages include slow communication within the Because of rigid procedures and poor communication throughout departments, the organisation. Companies may be less open to change, and workers do not feel interested in it, Due to less decision-making opportunities, the firm. Overall each of the delegation in ASDA have a manager who is responsible for all departments and some of them splitting in different areas of department for example Customer service is divided into customer services assistance and sales assistant. At the top of all departments is store manager he is second person in the hierarchy and the main person who is in charge of everyone is area manager Philipp Davies.(reference 15)

Aims & Objectives of ASDA The aim of ASDA is to provide the public with products and services that are inexpensive and affordable. Packaging reduction is one of the main goals of ASDA and they consider any option to achieve this objective. Another aim of ASDA is to deliver quality goods at low prices. They source goods from highly competitive manufacturers to achieve this goal. They also use their own brand name and packaging to minimise the cost of packaging. Asda also has a number of objectives on their web-site,the main objective is to increase the quantity of fresh goods sold loose from boxes and reduce its selection of pre-packed label products sold in its stores around the world. And “we put our customers first, every day, we care for our colleagues, every day, we strive to be the best we can be, every day” these are important because they ASDA an opportunity to improve themselves.(reference 16)

Organisation chart of RSPCA

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(reference 17)The RSPCA has a hierarchical structure, showing strong lines of authority and responsibility. The strength. The structure is tall and has several layers; “

it has the largest span of trustees controlling. The organisation is organised by geographical area; the positive results of being geographically coordinated, direct contact with local customers, the opportunity to meet the expectations of the local client and the ability to recognise which areas are failing. However the disadvantages to this are that new divisions need to be formed if the companies want to grow into ”

new sectors, and it is quite costly to continue duplicating for each department resources. Overall RSPCA structure is quite similar to ASDA'S; they have different departments and managers for each of them who is in charge of their department. Because they are geographical coordinated and they really focused on that in there marketing and operations departments they have a regional director who is ruling 4 different bpas units: South, Central, North and London, which is helping them to concentrate more in different parts of the country.

Aims & Objectives of RSPCA The RSPCA states on their website “Our key aims for 2017 and beyond are part of a new long-term strategic plan, to modernise and optimise our approach to delivering animal welfare.” These aims include “working for the welfare of pet animals, 11

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campaigning for farm animals, improving the welfare of wild animals, and working for animals used in research and testing”. I have found only one smart objective for RSPCA but I think it will be enough: “We will print 500 copies of “Caring for your dog” leaflets and distribute these from our stall outside the supermarket between 01/01/21 and 31/03/21.”(reference 18)

The relationship and communication with stakeholders of two contrasting businesses Relationship and Communication with Stakeholders in ASDA Asda has several stakeholders where the organisation has to interact and maintain a healthy bond with you. Clients, shareholders, and some of these stakeholders include

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the providers. Asda provides the client with flyers to connect with its customers and catalogues; this is a type of written communication typically sent via post. These modes of communication emphasise the items currently being sold by the store, along with their rates and any available promotions. The ASDA also uses its website to interact with its customers; this is an efficient communication tool since it is unlike a leaflet/catalogue, they are continuously updated and consumers can browse from the comfort of their own home or if they wish, on the move. A lot is also included on the website more details, such as work openings and the past of the firm. Often, customers can communicate via online surveys, engaging with the organisation helps the client to share their views while also highlighting the market areas that they should strengthen to boost success for companies. Which ensures a successful relationship with their clients as they are able to communicate effectively with the company; they will also feel that they are relevant because they are the opportunity for their voices to be heard and make a difference. ”

The company conducts annual general meetings to connect with its shareholders, in addition to each shareholder has voting rights at these meetings and significant decisions are taken, such as combination, merger, closure of companies, and executive r...