lOMoARcPSD|11837912
Assignment 1 - Exploring Business
Exploring Business Assignment 1 Distinction* (London South East
Colleges)
, lOMoARcPSD|11837912
Jasmine Lawes-Turner
Exploring business: Features contributing to the success of contrasting
businesses
Terms of reference
This a report to research and collect information on two contrasting
businesses and to gather evidence on why these businesses are effective.
Procedure
In this report I will be exploring the features of a Public Limited Company
(Asda PLC) and a Non-For-Profit organisation (Cancer Research UK). I will be
exploring the Ownership, Purpose, Liability, History, and Industrial sector of
the two- contrasting business’.
Asda PLC
Introduction
Asda PLC (formerly Associated Dairies) is a
supermarket chain based in the United Kingdom. The
company is headquartered in Leeds, England. When
the Asquith family's retail business merged with
Yorkshire's Associated Dairies company in 1949, The company (Asda) was
born. As a leading UK retailer, Asda has over 634 stores in the UK. As such a
big retailer, Asda have promised to be committed in order to deliver goods
that have a sustainable and greener value for both their stakeholders and its
customers.
A major distinction between a Stakeholder and a Shareholder is that
Stakeholders have an interest in the company as well as an equity or stake in
the business. Asda is committed to maintaining high product standards and
assures its stakeholders that their own branded goods, such as groceries,
clothing (George), and home products, are of the highest quality, regardless of
whether the product is bought in-store, for delivery, or for click-and-collect.
Ownership & liability
Asda became a Walmart (An American retail company) subsidiary in June
1999. A subsidiary company is one that is partially or entirely owned and
operated by another company that owns more than 50% of the subsidiary's
stock. Since Asda is a Private Sector Organisation, meaning they are a part of
the economy that is not directly influenced by the state. This means Asda has
many
1|Page
, lOMoARcPSD|11837912
Jasmine Lawes-Turner
shareholders and is not owned or regulated by the government. The
ownership of Asda is a Public Limited Company (PLC). This means Asda’s
shares have the ability to be sold freely to the public on the Stock Exchange
Market. To
become / start as a Public Limited Company, Asda had to have £50,000 as the
minimal share capital.
Asda's liability is limited because it is a public limited company. The biggest
benefit of being a public limited company is the ability to raise vast sums of
capital rapidly. One downside is that if large amounts of shares are acquired
as part of a "takeover bid," the original shareholders can lose control of the
company. Asda's liability consists of financial debts and obligations
accumulated during the course of their operations. Limited Liability means
that the company's shareholders are legally responsible for the company's
debts, but only to the extent of their share's initial value. This ensures that
shareholders are safe in the sense that the company's debts aren't a personal
matter for them, and that they can only risk their investment in the
company's shares and nothing else, as opposed to unlimited liability.
Purpose
The purpose of Asda as a Public Limited Company is to provide their
customers with the best quality service, whilst ensuring they have the best
quality products readily available. This would maximise profits for Asda’s
shareholders, whilst holding a good reputation and connection with their
customers and stakeholders. Asda has the slogan of “Save Money. Live Better”
This means Asda’s aim is to provide excellent quality products for their
customers, but at a lower affordable cost in comparison to other grocery
retailers.
Industrial sector
Within the industrial sector, there are four sectors such as: The Primary
sector, Secondary sector, Tertiary sector, and the Quaternary sector.
The Primary Sector entails the acquisition of raw materials such as coal and
some metals, as well as drilling for oil and trawling for fish. Extractive
processing is another name for the primary sector.
The Secondary sector is the manufacturing and product assembly. It entails
the transformation of raw materials into parts, such as oil into plastic. It also
entails putting the product together, such as when constructing homes,
bridges, and highways.
Assignment 1 - Exploring Business
Exploring Business Assignment 1 Distinction* (London South East
Colleges)
, lOMoARcPSD|11837912
Jasmine Lawes-Turner
Exploring business: Features contributing to the success of contrasting
businesses
Terms of reference
This a report to research and collect information on two contrasting
businesses and to gather evidence on why these businesses are effective.
Procedure
In this report I will be exploring the features of a Public Limited Company
(Asda PLC) and a Non-For-Profit organisation (Cancer Research UK). I will be
exploring the Ownership, Purpose, Liability, History, and Industrial sector of
the two- contrasting business’.
Asda PLC
Introduction
Asda PLC (formerly Associated Dairies) is a
supermarket chain based in the United Kingdom. The
company is headquartered in Leeds, England. When
the Asquith family's retail business merged with
Yorkshire's Associated Dairies company in 1949, The company (Asda) was
born. As a leading UK retailer, Asda has over 634 stores in the UK. As such a
big retailer, Asda have promised to be committed in order to deliver goods
that have a sustainable and greener value for both their stakeholders and its
customers.
A major distinction between a Stakeholder and a Shareholder is that
Stakeholders have an interest in the company as well as an equity or stake in
the business. Asda is committed to maintaining high product standards and
assures its stakeholders that their own branded goods, such as groceries,
clothing (George), and home products, are of the highest quality, regardless of
whether the product is bought in-store, for delivery, or for click-and-collect.
Ownership & liability
Asda became a Walmart (An American retail company) subsidiary in June
1999. A subsidiary company is one that is partially or entirely owned and
operated by another company that owns more than 50% of the subsidiary's
stock. Since Asda is a Private Sector Organisation, meaning they are a part of
the economy that is not directly influenced by the state. This means Asda has
many
1|Page
, lOMoARcPSD|11837912
Jasmine Lawes-Turner
shareholders and is not owned or regulated by the government. The
ownership of Asda is a Public Limited Company (PLC). This means Asda’s
shares have the ability to be sold freely to the public on the Stock Exchange
Market. To
become / start as a Public Limited Company, Asda had to have £50,000 as the
minimal share capital.
Asda's liability is limited because it is a public limited company. The biggest
benefit of being a public limited company is the ability to raise vast sums of
capital rapidly. One downside is that if large amounts of shares are acquired
as part of a "takeover bid," the original shareholders can lose control of the
company. Asda's liability consists of financial debts and obligations
accumulated during the course of their operations. Limited Liability means
that the company's shareholders are legally responsible for the company's
debts, but only to the extent of their share's initial value. This ensures that
shareholders are safe in the sense that the company's debts aren't a personal
matter for them, and that they can only risk their investment in the
company's shares and nothing else, as opposed to unlimited liability.
Purpose
The purpose of Asda as a Public Limited Company is to provide their
customers with the best quality service, whilst ensuring they have the best
quality products readily available. This would maximise profits for Asda’s
shareholders, whilst holding a good reputation and connection with their
customers and stakeholders. Asda has the slogan of “Save Money. Live Better”
This means Asda’s aim is to provide excellent quality products for their
customers, but at a lower affordable cost in comparison to other grocery
retailers.
Industrial sector
Within the industrial sector, there are four sectors such as: The Primary
sector, Secondary sector, Tertiary sector, and the Quaternary sector.
The Primary Sector entails the acquisition of raw materials such as coal and
some metals, as well as drilling for oil and trawling for fish. Extractive
processing is another name for the primary sector.
The Secondary sector is the manufacturing and product assembly. It entails
the transformation of raw materials into parts, such as oil into plastic. It also
entails putting the product together, such as when constructing homes,
bridges, and highways.
