4. NOMINEE TO BE BOUND BY AGREEMENT.
5. EXCLUSION OF THE "ACT"
9. PROCEDURE ON DISSOLUTION.
Franchise:
A franchise is the right to trade using a successful company’s products and image. The franchiser offers the franchise. The franchisee buys or leases the franchise. The franchiser expands their business without the burden of debt. The franchisee pays a royalty fee to and other payments are made to the franchiser. Franchisers maintain control over most of the business. Franchisees are generally better motivated because of the profits they will receive. A franchise has a limited liability because the franchisee is separately run from the franchiser. The franchisee takes full responsibility for the running of that branch, so they provide the money and pay the debts, the franchiser doesn’t deal with that, they earn their profit by selling their name to entrepreneurs that want to be a franchisee.
Advantages:
You are selling a name to the public so there is little required to promote your business.
You get advice from the franchiser and you get a prospectus on what to do and what they expect.
If you start up a new McDonalds branch you would generally not have a lot of competition because Burger King tend not to set up near one due to the success of McDonalds.
Disadvantages:
You would have to pay the franchiser royalties and a percentage of the profit.
Co-operative:
A co-operative is a business owned and run by its members. Each member can vote at meetings, receive a share of the profits and get involved in decision making. There are two main types, one is a worker co-operative and the other is retail. The worker co-operative is generally formed by a workers buyout when a company is in danger of closing. They may also be formed by groups of workers to share facilities. Workers may buy supplies as a group and then share equipment. Retail co-operative societies (CRS) are owned by a local or regional CRS. The retail societies buy many of their goods from the co-operative wholesale society, which is entirely owned by the retail societies, they also share any profit they then make. Generally co-operatives have a higher potential for the workers rather than the profit of shareholders, because the people owning it have a high interest in the business as a whole. The retail co-operative has been declining for years though.
Advantages:
Each worker and owner has a say in the business. And each has a vote for the decision-making.
Each person receives an equal share of the profits
This has job rotation so you are not stuck doing the same job.
You are not forced to be an owner. You make the decision yourself.
Disadvantages:
There is no single owner so banks and investors are hesitant about dealing this form of business.
Suppliers might not want to sell on credit; they might want the money straight up.
The decision-making can take a long time if everyone is involved.
Company:
There are two types of companies, one is a private limited company (LTD) and the other is a public limited company (PLC). A LTD is a limited company, which means they have limited liability hence the term limited in the name. It is a company in which the shares cannot be sold to the general public. They are often small companies with all the shares owned by the members of a family. The company name must end with a ‘Limited’ or ‘LTD’. To become private limited company the owners must apply to the registrar of companies. PLC is a company in which has limited liability, whose shares can be brought and sold by the public. The company has no control over who buys its shares. The ownership by the shareholders of the company is separated from the control by the board of directors. In LTD the shares are generally not listed on the stock market, all directors can only sell these on agreement. Generally families or a small group of friends runs these. A PLC is the largest form of privately owned organizations in the U.K. The Tussauds Group is also a PLC.
Advantages for a LTD:
Has limited liability. No one can lose more than the capital invested.
Can choose the shareholders
Owners keep control over the company.
Disadvantages:
Shares aren’t on the stock market so it is hard for shareholders to get their money back.
There is a limited amount of money to be raised by family and friends. That amount would be around £25,000 up to £50,000.
Advantages for PLC:
Shareholders are willing to invest in this type of company because shareholders find it easier to receive their money back.
Banks are more willing to lend to companies with a large share capital.
Large amounts of capital can be gathered in this type of organisation.
They are enabled to gain economies of scale.
Disadvantages:
Shareholders have little say in the business as a whole
They are generally subject to takeover bids because they don’t have the power to prevent other organizations from buying their shares, this is done by buying the majority of shares and then as the main shareholder you can buy the business if required.
When a private company goes public the original shareholders may lose control of the company.
Public Sector:
All activities carried out by either national or local government. It is made up of two parts:
Trading bodies set up to sell a product or services to the public
The part set up to provide services to the public.
The public sector in Britain relates to all the institutions, which are owned, and run by the state (an organisation of businesses that are grouped together) and are overseen by the government.
These include:
Central government offices
Local authorities
Public corporations
In this kind of organisation the funding comes from the government and it is raised through taxes and these are some of the factors that affect the increase of taxes.
Task 2/ P2:
Write a brief description of the industrial sector(s) that each business is part of:
Waitrose and the Tussauds Group are part of the tertiary industry.
The tertiary industry is the part of the economy that supplies services to other industries and to the public. It is the third stage in production. This is made up of companies that sell and distribute goods produced by the extractive (Primary) and manufacturing (Secondary) industries. It also includes all other services such as banking and insurance.
The secondary industry is the manufacturing or processing industry. It also includes construction and providers of gas, water and electricity. It receives raw materials from the extractors and changes them into something else. This industry may also combine several manufacturers’ products to make something else.
The primary industry is made up of the industries that use natural materials. Mining, fishing, forestry and farming are examples of this. They then sell on the materials to the manufacturers.
Identify if each of these sectors is in growth or decline in the U.K. and describe the trends of the sector over the past 10 years approximately:
Employment trends 1989 – 1997:
This graph shows the information located in the graph. It shows the employment for the sectors.
As you can see the primary and secondary sectors levels of employment is ever decreasing. The result of this is because of the increasing risks of automated machines replacing human workforce; this is far cheaper in the long run but costlier in the short. The tertiary sector has increased the levels of employment this is because the majority of companies now produce a service to the public.
Output trends 1989 – 1997:
The above graph shows the information in the table prior to it. This shows the output of each sector.
Yet again the primary and secondary sectors are decreasing. It just doesn’t seem to be their time. The reason for this fall is because these industries aren’t used as often as they used to be. The tertiary sector is still growing strong. The ever-increasing demand for its services provides a foreseeable future of stability for this sector.
The figures were received from the course textbook Hienman GNVQ business intermediate. The authors are Carol Carysforth and Mike Neild.
Task 3/ P3:
Write a full description of the main activities of each business including how they are carried out and an overview of the scale and scope of the business:
Waitrose:
Wallace Waite, Arthur Rose and David Taylor opened their first small grocery shop at 263 Acton Hill, West London in 1904waitrose is one of the leading food retailers employing over 27,000 people. Today there are over 136 branches, dedicated to offering quality, value and customer service. There are Waitrose shops in the South of England, East Anglia, the Midlands and Wales. Locations range from high streets to edge of town sites. The John Lewis Partnership as a whole employs nearly 54,000 Partners. As well as Waitrose, it runs 25 department stores throughout the UK, several manufacturing concerns and a farm. Waitrose aims to combine the convenience of a supermarket with the expertise and service of a specialist shop. Waitrose also offer you a Price Commitment to ensure you always get good value for money when shopping at Waitrose.
Waitroses main activity is selling food whilst providing a service. 15
Trends in the business activities:
Waitroses sectors employment trends:
I assume that the figures that are entered in the table for are in millions.
The figures were received from the course textbook Hienman GNVQ business intermediate. The authors are Carol Carysforth and Mike Neild.
The graph with the information relating to the table is located at the top of the following page due to insufficient space on this page.
Tussauds group:
The Tussauds group is a brand name. Their brands City center attractions include The London Eye, Madame Tussaud’s in five major cities; London, New York, Las Vegas,
Amsterdam and Hong Kong together with Warwick Castle. Theme parks include Alton Towers, Thorpe Park, Chessington World of Adventures and Heide Park in Germany.
Their Number One Priority is to provide and maintain the very highest Health and safety standards. This is implemented through investment in new systems, of which training is a key component, backed up by regular audits. British Airways London Eye - Since opening, they have welcomed over 9 million visitors and it is already
Britain’s most popular paid for attraction. Madame Tussaud’s London - Madame Tussaud’s has over 2 million visitors a year and, with over 200 years of history behind it, is famous throughout the world for its highly detailed wax portraits. Madame Tussaud’s Amsterdam - This popular attraction with over 550,000 visitors a year opened on Amsterdam’s royal Dam Square in 1991. Madame Tussaud’s New York -
Madame Tussaud’s New York opened in autumn 2000 in a new building on
42nd Street, just off Times Square, in the heart of Manhattan’s famous entertainment district. Madame Tussaud’s Las Vegas - Opened in 1999, Madame Tussaud’s Las Vegas is located in the prestigious new Venetian resort hotel in the heart of the famous Strip. Madame Tussaud's Hong Kong - Hong Kong is the leading tourist destination in the Far East, the fourth overseas location for Madame Tussaud’s, and The Tussauds Group’s first ever attraction in Asia.
The figures were received from the course textbook Hienman GNVQ business intermediate. The authors are Carol Carysforth and Mike Neild.
Task 4/P4
Explain why each business has chosen its location.
Waitrose has various locations around the United Kingdom. The nearest location to the college and myself is Staines branch. It is located inside the two rivers complex with lots of top name stores surrounding, it is also about a minutes walk from the high street. You have access directly to it from 3 large car parks and about 5 minutes away there are 2 more. 1 next to the elmsleigh center and the other is located on top of the center, which is multi-story. It is within minutes from the M25 motorway. The M25 has links to plenty of other motorways, which connect England and the United Kingdom.
This branch is near to its main supplier because the nearest Waitrose whearhouse is at the major branch and the head office in Bracknell, Berkshire. Waitrose is close to their customers mainly because it is in a shopping center. Also there is the Elmsleigh center just across the high street, which just recently had Kwik Save and Iceland close down. That leaves Marks and Spencers main competitor is Staines.
Tussauds group is located in Chessington on leatherhead road. I believe that the headquarters are located on the premises of Chessington world of adventures. It has access from all ‘A’ roads, which connects to a major network of roads. Leatherhead road is the main one, which connects them to the M25.
Task 5/P5:
Identify the stakeholders of each business:
The term stakeholder refers to everyone with an interest in a company. This includes individuals or groups of people. Each one has a stake in the success of the company and will benefit in some way. Equally, they would suffer some kind of loss if the company failed.
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Customers – success may lead to better quality and cheaper goods. They may have less choice if a business failed. They also want the right product at the right price in the right place. These influence the business because if they didn’t buy anything the company wouldn’t make any money.
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Employees and manager of the business – success may mean their jobs will be safer. It may mean higher pay. This applies to all levels within the company. They expect job satisfaction, to be paid, holidays, training, promotion opportunities and good working conditions. They influence the business because they represent it and the work they do either improves the business or seriously affects it. The manager’s influence in the business is that it is their livelihood; they have to work hard in this case.
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Local community – successful firms benefit their communities by providing more and safer jobs. The people in those jobs will spend more money in the local shops and other services. They also represent the customers. Many businesses establish a good relationship with the local community.
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The government – they set the VAT rates and the tax rates. They make the laws; corporate, social and legal. And they also enforce the laws. They also impose health and safety regulations to protect employees and customers. They influence the business increasing taxes and changing the minimum wage and other employment rules.
Describe fully their main interests in the business and any current changes to their interests and expectations
Waitrose:
- Customers make comments about the company (good and bad), which then generates new ideas when sent to head office. Then the customer service director decides whether or not to introduce a new policy of if it is a trial service then have more people being trained up for it.
Tussauds:
- The customers use the attractions of the company in various parts of the country.
- The attractions are in certain areas, which are a bit remote or difficult for people to get to.
Merit Points
Task 2B/M1:
Explain how the trends in the growth or decline of a business sector in the UK are affecting one of the businesses you are investigating.
The trends for employment in the tertiary sector are increasing as there is a high demand for businesses to provide a service. This means that they are paying out more for staff wages and training. The retail sector also saw an increase in sales so then they can compensate the money lost on staff wages. Basically the higher the demands in the service providing sector the more money is generated and the more staff are employed then eventually the business can grow bigger and stronger.
Task 5B/M2
Explain why the influence of stakeholders on one business is different from their influence on the other.
Customers – the customers in Waitrose are going to go there more often because they have to buy food in order to survive. Whereas with the Tussauds group the customers are more likely to be tourists and families and don’t tend to go every week.
Employees – the staff a Tussauds work by the season so they would probably work twice as hard because they would want their contract to be renewed when the new season starts. The staff at waitrose work hard all the time because they are on a constant watch of their performances as the contract has not got a time limit on it and can be terminated, but they would have to give you two weeks notice.
Local community – the decisions of the community affect the decisions of the company because they might not agree on some additional building work or the company could give the area a bad reputation. They could also demand changes to prevent heavy traffic flow and congestion throughout the area. Maybe with the trolleys if they keep getting dumped around town by Waitrose customers then they could demand that Waitrose come and collect them on a weekly basis.
Government – the government make decisions which obviously affect the company for both good and bad causes. A good cause might be a grant given to a local council to improve an area surrounding the company so then if the area is more attractive it could bring in more business. A bad cause would be an increase in taxes or pay rates. If the business is not earning as much then they might be losing money due to this.