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AS Btec business. Report on understanding how businesses operate.

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To: Mr Baker From: Luke Cohen Date: 02/10/2010 Report on understanding how businesses operate. For the attention of Mr Baker, As you are aware, we are selling your invention of the portable toilets to developing countries where they will provide improved and sustainable sanitation in rural communities. The toilets are a self-assembly unit and we are selling them for �15 per unit. I believe that it would be appropriate to trust in a voluntary company, as they are most reliable and they have committed more help in charitable organisations, than any company in the private sector would have. Below I have listed some of the developing countries we could sell your product to: * Brazil * Ethiopia * Uganda * Egypt * India * Thailand P1 Types of Businesses and Their Ownership As we know businesses fall into different sectors depending on their type and their purposes. The two companies I am going to distinguish are Tesco's and CAFOD. From here I will be explaining the businesses type, purpose, ownership, size, scale and their aims and objective and how this influences them. Tesco's fall into the private sector because it is a business that wants to make a profit. They do this by selling their products such as food, clothes and electronics and so on. Because Tesco's only sell products and don't manufacture them, they will be classed as a tertiary in the industrial sectors. The tertiary sector of the economy is the service industry. This sector provides services to the general population and to businesses. Activities associated with this sector include retail and wholesale sales, transportation and distribution and entertainment. Tesco's is a PLC meaning anyone can buy their shares on the stock exchange. Anyone who owns a share or shares is known as a share holder. If the company is successful then the share holder will receive a financial reward in the form of dividends. ...read more.


This can be done in several ways. They can be examined by hand or passed through machine to check if the size is correct. Product functions can involve tasks such as: * Ordering stocks of raw materials from their suppliers. * Storing and checking the stocks of their materials. * Planning production schedules to maximise machinery capacity and staff levels. * Producing or assembling the finished products. * Checking the quality of the product through the final quality checks. * Packing and storing the final products before distributing. * Carrying out repairs to machinery and equipment required. Below is Tesco's organisational chart, and it shows the different functional areas in the business. Organisational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. In an organization of any size or complexity, employees responsibilities are defined by what they do, who they report to, and for managers, who reports to them. Over time these roles are assigned to positions in the organization rather than to specific individuals. Both Tesco and CAFOD have a hierarchical structure, so this means that different functions are separated into different sections/departments. The advantages are of having a hierarchical structure are workers know what sections they are working in and what their job roles are, they know who to report to if they have problems, lower ranks can get promoted so that encourages them to work harder. The line of control is where individuals are responsible to a line manager or supervisor. The senior colleague will be responsible for making more important decisions. The span of control is the number of people that individuals are responsible for in an organization. The wider the span of control, the greater the number of people for who the individual is responsible for. So in Tesco's case, the store manager reports to the store director, the personnel, ambient, fish, non food, training, stock controller, security and customer manager's report to the store manager, and the people under the managers report to their managers. ...read more.


If the world changes to electrical cars, this can affect shell because they could take this opportunity to provide electricity for the cars, maybe having stations where electricity can be transferred to the cars for a small fee. But this will also affect them because of the natural resources that they will need to gather, because of the new development of using electricity, instead of oil and gas. For Nigeria, possible future changes in the economical political factors could be related to the high number of poverty in the area, or a disagreement with the government and another party. This could break out into a civil war between the two sides of the government, or it could be that people are desperate and feel that they need to be violent to be able to survive. This can affect shell as they will need to change their strategy, in order to ensure that their workers are safe, so they might need to consider if it is suitable for their employees to work in the conditions facing the civil war, or will they need to move to a different location in order for them to continue their job. Legal factors affecting the strategy of Shell would be the increase in tax, if the government is not stable, which Nigeria's government is not, then taxes could either go up or down. This may be difficult for Shell because it will be harder for them to predict forecast figures. Possible social factors affecting Shell could be the number of diseases and illnesses there are in Nigeria, HIV or aids being one of the most common. This can affect Shell if their staff were ill it could spread throughout the business, so Shell will need to take precautions such as regular medical checks to be sure that the staff's general health is safe for them and other members to work in. ?? ?? ?? ?? ...read more.

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