lOMoARcPSD|11837912
BTEC Assignment Unit 1 Exploring
Business
Business (London South East Colleges)
, lOMoARcPSD|11837912
Introduction:
In this report I will cover the features of businesses, such as ownership, liability,
purpose, sector, scope of activities, size, explain what makes them successful,
explore how businesses are organised, such as organisation structure, functional
areas, mission, aims and objectives, the relationship and communication with
internal and external stakeholders and their impact on the business. For two
contrasting businesses I chose TESCO (for-profit company) and RSPCA (non-for-
profit company).
Brief History:
• TESCO PLC is a global British retail company, biggest retailer in the UK and third-largest
retail company in the World, that mostly operates across Europe and Asia. TESCO was
founded 101 years ago (in 1919) by Jack Cohen in London and still is the absolute leader in
, lOMoARcPSD|11837912
the UK retail market, where has approximate market share of 28%. The company has
approximately 440,000 worldwide employees and sells about 40,000 of products, including
clothing, food, beauty and health products, gadgets, home and kitchen goods and even
insurance.
Ownership and liability: TESCO is a Public Limited Company, PLC. This means that
anyone can buy their shares of this big public company. They have limited liability, which
means the owners are only responsible for debts up to the amount they have invested in
business.
Although, it is international, it is registered in the UK. Tesco is for-profit company,
this means they are focused on profit.
Examples of Business Ownership:
Sole trader – a business that is owned and controlled by one person. (Bookkeeping
business, phone or computer repair, tutoring services, any freelance work)
Partnerships – businesses that are owned and controlled by two or more people.
(Spotify and Starbucks, Amazon and American Express, any real estate investment
firms)
Limited companies (can be private or public) - businesses that legally work in their
own right, the company’s finances are separated from the owners’ personal finances.
(Private: Wilko, Iceland, PoundLand, New Look, River Island. Public: TESCO,
Vodafone, Marks & Spencer, Next)
Franchise – purchase of an existing business and the right to use an existing
business idea. (McDonalds, KFC, Burger King, Five Guys)
Advantages and Disadvantages of each ownership type:
Sole trader:
+ You have total control over your business.
+ You keep the profits.
+ It’s easy to set up.
+ You don’t need to have a big financial capital to set it up.
- Mostly you have to work long hours.
- In case of business looses or debts, you have to pay for it out of your own pocket.
- Lack of professional help, you have to do everything yourself.
- You have to find someone to cover you, if you are sick or on holiday.
Partnership:
+ Partners can divide tasks by personal skills.
+ Co-owners share responsibilities and workload.
+ More capital, as there are two people in the business.
+ You won’t need to look for someone who can cover you if you are ill.
- There can be disagreements between co-owners.
- You need to share profits.
- You can’t make spontaneous decisions, you need to discuss everything with your
partner.
- Co-owner may cheat.
Private Limited Company:
+ Less staff required, than in Public Limited Company.
+ New shareholders need to be invited, which protects the business from outside
influence.
+ More flexible, than Public Limited Company.
BTEC Assignment Unit 1 Exploring
Business
Business (London South East Colleges)
, lOMoARcPSD|11837912
Introduction:
In this report I will cover the features of businesses, such as ownership, liability,
purpose, sector, scope of activities, size, explain what makes them successful,
explore how businesses are organised, such as organisation structure, functional
areas, mission, aims and objectives, the relationship and communication with
internal and external stakeholders and their impact on the business. For two
contrasting businesses I chose TESCO (for-profit company) and RSPCA (non-for-
profit company).
Brief History:
• TESCO PLC is a global British retail company, biggest retailer in the UK and third-largest
retail company in the World, that mostly operates across Europe and Asia. TESCO was
founded 101 years ago (in 1919) by Jack Cohen in London and still is the absolute leader in
, lOMoARcPSD|11837912
the UK retail market, where has approximate market share of 28%. The company has
approximately 440,000 worldwide employees and sells about 40,000 of products, including
clothing, food, beauty and health products, gadgets, home and kitchen goods and even
insurance.
Ownership and liability: TESCO is a Public Limited Company, PLC. This means that
anyone can buy their shares of this big public company. They have limited liability, which
means the owners are only responsible for debts up to the amount they have invested in
business.
Although, it is international, it is registered in the UK. Tesco is for-profit company,
this means they are focused on profit.
Examples of Business Ownership:
Sole trader – a business that is owned and controlled by one person. (Bookkeeping
business, phone or computer repair, tutoring services, any freelance work)
Partnerships – businesses that are owned and controlled by two or more people.
(Spotify and Starbucks, Amazon and American Express, any real estate investment
firms)
Limited companies (can be private or public) - businesses that legally work in their
own right, the company’s finances are separated from the owners’ personal finances.
(Private: Wilko, Iceland, PoundLand, New Look, River Island. Public: TESCO,
Vodafone, Marks & Spencer, Next)
Franchise – purchase of an existing business and the right to use an existing
business idea. (McDonalds, KFC, Burger King, Five Guys)
Advantages and Disadvantages of each ownership type:
Sole trader:
+ You have total control over your business.
+ You keep the profits.
+ It’s easy to set up.
+ You don’t need to have a big financial capital to set it up.
- Mostly you have to work long hours.
- In case of business looses or debts, you have to pay for it out of your own pocket.
- Lack of professional help, you have to do everything yourself.
- You have to find someone to cover you, if you are sick or on holiday.
Partnership:
+ Partners can divide tasks by personal skills.
+ Co-owners share responsibilities and workload.
+ More capital, as there are two people in the business.
+ You won’t need to look for someone who can cover you if you are ill.
- There can be disagreements between co-owners.
- You need to share profits.
- You can’t make spontaneous decisions, you need to discuss everything with your
partner.
- Co-owner may cheat.
Private Limited Company:
+ Less staff required, than in Public Limited Company.
+ New shareholders need to be invited, which protects the business from outside
influence.
+ More flexible, than Public Limited Company.
