Location
Currys and Euronix Electronics have to decide where they are going to locate and this will be in an area where they believe they will be successful. There are a number of reasons for this, which is as follows:
The need to compete with other businesses in the same activity
The need to be where customers are
Access to good transport links
A place with a good environment
Currys choose a location that has good transport links and car parks so that customers will be able to get there easily and if they travel by car they can park it in the car park. They also locate at highstreets because of their small outlet shops and they locate at retail parks because they sell over 3000 products, which require big storage space. Wherever Currys is located they need access around the back of the store to take deliveries. Currys like to locate near their competition such as Comet and Tempo. This is to ensure that Currys are offering the lowest prices possible. It is important that Currys is somewhere near customers because if they were not they would not sell much. If Currys is not near to customers they need to have good transport links so that customers can travel there easily, for example by car, buses, trains etc.
The decision of Currys to locate one of their branches in South-Ruislip was because of the good and easy transport links and the fact that its located on a retail park what gives them an advantage above their competitors if they are offering lower prices than them what means that they can steal some of the customers of their competitors. Location of Currys near to tube and railway station only 0.3 miles, And the good and easy accessibilities to the nearby roads.
Euronix Electronics choose to locate in a place near customers because it is not as big as Currys and does not have a number of stores around the country, so they need as many customers as possible where they are located. It is located on a busy street in South-Ruislip because it is not big enough to locate in a retail park, so a highstreet is the next best thing. Euronix Electronics is located around the corner from its competition (e.g. Currys) to ensure that Euronix offers lower prices and so they can steal some of the customers of their competitors, It is also located near good transport links i.e. bus stops (282 and 114) and a train station (South-Ruislip), because they do not have a car park these transport links are important to them. Lastly it has access to the back of the shop, which enables them to receive stock. But the most important reason for Mr Powell to locate here was because of the fact that he himself also lives in the same area.
Location of Euronix show that the shop has very good transport accessibilities what will help Mr Powell to run his business.
Currys PLC Euronix
As you can see, both of my chosen businesses are located in an area where they have good access to roads. And both the tube and railway stations are only 0.3 miles away.
Stakeholders In A Business
Stakeholders are individuals or groups of people that have an interest in what a business does. They are either affected by the business or affect the business by what they do. There are eight types of stakeholders and they are as follows:
The owners/shareholders - They will receive more or less profit depending on how successful the business is.
The customers – they buy products and have an interest in getting value for their money.
The employees - They help to sell the products, for this they receive wages or salaries.
The suppliers - They supply the business with the goods they need and are paid by the business for this.
The finance providers - They provide the business with the money it needs to buy goods and finance other expenses. They expect to be repaid or receive a share in the profits.
The competitors - They compete with other businesses and try to persuade customers to buy from them by lowering prices, doing deals etc.
The government – the government charge the business VAT and business charges.
The community - it might raise the profile of the area; they can offer work experience to school children and the community can also profit from the donation of the business for charitable events.
Currys have the following stakeholders:
Owners: The shareholders. They receive more or less profit depending how the business does.
Customers: they can for fill their personal needs.
Employees: Currys being there ensures their employment
The community: it might raise the profile of the area; they can offer work experience to school children and the community can also profit from the donation of the business for charitable events.
Finance providers: Banks and building societies can offer loans to the business.
The government: Charging business rates, Charging VAT, the business offers employment to the people.
The competitors: Comet, Tempo, and other electrical shops e.g. Euronix can steal their customers by offering lower prices.
The suppliers: Suppliers of electrical goods etc, Suppliers of cash tills, display cabinets etc.
Euronix Electronics also have stakeholders and they are the following:
The owners: The owner of Euronix Electronics.
The customers: they can for fill their personal needs
The employees: it ensures their employment
The community: schools in the community can profits of any work experience the business offer for the children of the schools.
Finance providers: They provide the business with the money it needs.
The government: Charging VAT, Charging business rates.
Competitors: Currys, Comet, Tempo, and other electrical shops can steal their customers by offering lower prices.
The suppliers: Suppliers of electrical goods etc, Suppliers of display cabinets, tills etc.
Influence Of Stakeholders
The influence of stakeholders on Euronix Electronics is different from their influence on Currys because Currys has more stakeholders.
The two main stakeholders in Currys are as follows:
Consumers.
Shareholders.
The consumers are important because they are the people who purchase Currys products and give the company money. If consumers did not purchase products from Currys the business will not earn any money and eventually go bankrupt.
The shareholders are important because they are the people that own the business and have a say in the running of the business.
The main stakeholders in Euronix Electronics are as follows:
Consumers.
Employees.
The consumers are important because they provide the business with revenue after buying the goods. Without the revenue from the customers Euronix Electronics would not make any money and go bankrupt.
The employees are important because if the employees provide good service to the consumers the business will be more successful because more customers will buy the products and give the business a better reputation.
Both businesses have different stakeholders because Currys operates on a national scale, whereas Euronix Electronics operates locally.
External Influences
Currys and Euronix Electronics are both affected by a number of external forces. External influences are things that happen outside the business and things that the business has no control over which affects the business in the long run. There are a number of external forces which are beyond the control of each of my chosen businesses.
The government has an influence over both of my chosen businesses as they both must pay taxes on profits and many of their goods and services. Both businesses also have to abide by laws set by the government.
The economic climate can affect my chosen businesses because if there is a recession a fall in the demand for goods and services will occur.
World events can affect both my chosen businesses as if there is a world event such as war or flooding then my chosen businesses will not make any profit as people will not want to leave their houses and if they do it will only be to purchase needed items such as food.
Pressure groups can prevent both of my chosen businesses from carrying out certain activities because if there is a strike or a sit in then consumers will be put off and probably not want to purchase goods from the shop.
Competition has a big influence on how a business operates, if a business does not have any competition then the company has more chance of being successful, but if they have competition it will be harder for the business to attain customers.
Consumer tastes have a impact on my chosen businesses as it encourages them to keep up with the latest technological developments.
Conflicts Of Interest between The Stakeholders
The interests of stakeholders of a business are different and this can result in tensions between them.
Shareholders/owners want as much profit as possible so they want to charge as much money as possible for their goods to customers, but customers want to pay as little as possible. Here we have a conflict of interest as both owners and customers want the opposite so arguments could occur.
Shareholders/owners want to keep costs down such as employee wages, however employees want to earn as much money as possible and want to earn higher wages. Here we have another conflict of interest as again both owners and employees want the opposite.
