A description of the type of business - Sole trader:
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Unit 2 My group 1 company will be Waitrose. My reason for selecting a prestigious company such as this is because I work for them so then my inside knowledge will be a useful addition to my portfolio. My group 2 company will be the Tussauds Group. They seem to be a big company and are also well known. So the information would not be hard to find. Pass points Task 1/ P1: A description of the type of business: Sole trader: This is the most commonly found type of business in the United Kingdom. A sole trader is a business with only one owner, and the responsibility of the business rests on that person. The business can trade under the owner's name (i.e. Joes Chippy) or under a business name (i.e. Feltham chip shop). Many sole traders provide a service of some sort. Sometimes the most amounts of employees would be 3. The owner provides the capital. The owner takes all the risks of the business, receives all the profit and carries all the losses. This has unlimited liability because it is only a small business therefore all his personal belongings are used to pay debts and then in some cases you might find that you will be classed as bankrupt. Advantages: A sole trader is easy to set-up You can make the decisions yourself - there is no one to consult. You are your own boss You can choose your own hours so you can make it much more flexible The most common transaction is cash. Disadvantages: You have long working hours and because 9 out of 10 sole traders don't employ more than themselves you would be there open until close. It is difficult to raise the capital required to set it up. Partnership: A partnership has a minimum of 2 owners and a maximum of twenty. A partnership is easily formed. ...read more.
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: Sector 1989 1991 1993 1995 1997 Primary % 4.91 4.60 4.27 2.31 1.55 Secondary % 27.03 24.24 22.64 22.05 22.55 Tertiary % 68.96 71.16 73.09 75.62 75.9 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: Sector 1989 1991 1993 1995 1997 Primary % 7.19 7.16 7.02 6.84 6.35 Secondary % 31.16 27.48 25.86 26.76 25.73 Tertiary 61.65 65.36 67.12 66.39 67.92 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. ...read more.
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. 1 ...read more.
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