btec business unit 1

Btec business unit 1: Exploring businesses In this assignment I will be exploring two different businesses, one Public limited company and a nonprofit organization. These two businesses are Sainsbury’s and Cancer research. I will be exploring the ownership, scope, sector, purpose and size of each of these businesses. Sainsbury’s Sainsbury’s was established in 1869 when John James Sainsbury and his wife opened up a shop in London. The store began as a retailer of fresh foods and later expanded by selling packaged sgroceries such as tea and sugar. Shops began to look similar and therefore a bold 2 J. SAINSBURYS’ sign was printed on the top of the shop which made the shop distinctive and bold from the others. By 1922, it was incorporated as the private company ‘J. SAINSBURY LIMITED’. Long after the owner dies and his son took over the business the company began to decline after the world war. BY 1973, the business went public as ‘J SAINSBURY plc’. BY then, the brand was fully owned by the SAINSBURY family. BY 1998 the brand was re-launched and from there progressed and was ‘made great again’ as the brand got bigger and bigger Sainsbury’s is a public limited company which is the UKs second largest leading supermarkets company. With over 600 supermarkets worldwide and 800 convenience stores, Sainsbury’s holds a 16% share of the supermarket sector. As a big retailer, Sainsbury’s continue to promise to provide high quality service to customers and also maximize or provide good financial return to their stakeholders. They also continue to help customers ‘live well for less’ and improve their cost of living by selling at good prices. A stakeholder is any person, organization, social group or society at large which has a stake in a business. Therefore, these can be either internal or external. A stake, is an interest or activity in the business. In this rapidly changing retail marketplace Sainsbury’s ensures to continue giving customers what they want via multiple channels of distribution whilst delivering value for shareholders of the business who are among the stakeholders. Ownership and Liability Sainsburys are a private sector company. The private sector is where businesses are controlled by individuals or a group of people rather than being controlled by the government. Therefore, it includes all the all-for-profit businesses which are not state-controlled. As a private sector, Sainsbury’s have shareholders who own the company with no involvement of the government. Its ownership is PLC. PLC is short for Private Limited Company, which is essentially a type of businesses which offers the business’ shares to the general public who could then buy a share of the business. This is referred to a ‘floating on the stock exchange’. To date, the biggest shareholder of Sainsbury’s is Quatar Holdings LLC (The Qatar Investment authority) who holds 21.99% of the company. Sainsbury’s has limited liability. This therefore means that in the case of bankruptcy, the shareholders are only legally liable to pay the amount in which they invested and do not lose their personal assists unlike companies with unlimited liability who, in that case, result to their personal assets (including their cars, houses etc.) to be taken away from them to pay the debts. This means that Sainsbury’s stakeholders are secure.