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ASDA's Ownership

Extracts from this document...

Introduction

Task 1: Business ownership ASDA's Ownership A). ASDA is a public limited company, which is also known as a PLC. An American retailing company called WAL-MART owns ASDA. Its shareholders own the company and this causes the ownership to constantly change, as the shares are constantly bought and sold. Most of the companies' shareholders are generally, old aged pensioners, banks and insurance companies. Before a PLC can be launched, they must have �50,000 or more and it must have a good financial record and, there must be enough people interested in buying shares in order to have a successful floatation. Floatation is when a company is on the Stock Exchange and is then launched to the public. WINES PLUS' Ownership Wines Plus is a partnership and is run by its owners. A partnership can be of a maximum of 2-20 people. The partners of the business share the responsibilities and risks of the business. Usually, if the partners have different skills, this provides the business with greater aspects as a different range of services can be offered and more profits can be made. Also, in some partnerships, there are also some sleeping partners. These are people that invest money into the business and receive a share of profits made but they don't have a say of how the business should be run. Before starting the business some partners sign a deed. This deed is called the Deed Of Partnership. This deed states every agreement between the partners and what they have to share between them i.e. they share the profits that are made, the salary they receive and what procedures must be followed if there is a dispute between the partners. Partnerships are governed by the Partnership Act 1890. This act states, all partners are liable for any debts. Unless a different deed has been drawn up, different terms are put through. As well as a PLC and Partnership, there are also other types of businesses. ...read more.

Middle

and aims to do its best to ensure quality food, value for money and persuade people that ASDA is better than any other store. They issue regular questionnaires and ask what the public could suggest what they can do in order to make the business much better for them to visit and they would like to see. Profits and shares are another key factor they must consider. They have to see how they can attract new shareholders and customers. If they didn't attract new customers and shareholders and the business declines and continues to, then the business will be closed down. Task 4: Location and Its importance A). Every business has to decide where they have to be located. It is an important decision, as they have to look at how the location can affect the business performance. They must consider several points when locating. As ASDA is a big business, they want to be near customers and they have decided to locate themselves in Telford Drive in Cippenham. They have decided to locate themselves in Telford Drive, as there are a lot of residents that live in Cippenham and, they are near the Slough Trading Estate. Also, a lot of people in the area would want to work for them. Wines Plus have decided to locate in a high street as it can be a busy area and people who travel by foot in order to get to work or school, pass the shop whilst travelling. This can make the shop profits, as people tend to get thirsty or hungry and decide to get refreshments whilst travelling. B). (i). ASDA is located next to an estate which holds a lot flats and is near a school (WESTGATE HIGH SCHOOL) and is near to the Slough Trading Estate. Also, there is a footpath which leads to Windsor. As ASDA is a retailer, it has rivals which also trade in retailing. ...read more.

Conclusion

Shareholders are important as they can determine if a merger or takeover can happen. In either way without shareholders a plc wouldn't be able to run their business and merge or takeover other businesses. Finally they need to consider where their rivals are located. They need to think about where they are going to be located and how they can persuade others to go to them and not go to their rivals. They need to also consider how they can offer services that will beat their rivals and offer better products and services. They also need to think about what is located near them (e.g. ASDA is located near a Windsor footpath) and how these can make people go to them and not their competitors. B). The most interesting points of comparisons are: * Both of the businesses are nearly the same age * They offer similar products * Located to near schools and housing estates * Both are near Heathrow Airport The points to where they are different are: * Different type of business ownership * ASDA provides a range services - look at Task 3 * One of them has shareholders * Different liability They are completely different as all businesses are. Not all businesses are the same. ASDA is known as a nationwide superstore and is part of global retailer so many people have heard of it. Wines Plus are just a basic retailing shop in South Ealing and everyone outside South Ealing wouldn't have heard of them as they are not as big as ASDA. The size of the business also helps the business get recognised. Take the history of ASDA. It was a little partnership but then expanded into a big plc. These similarities and differences have happened because, they all aim to be different but at the same time be in competition with each other. They all aim to make profits and aim to do their best to run their businesses. Both of the businesses aim to continue expanding, gain more profits, gain more shareholders, beat their rivals and attract new customers. ...read more.

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Here's what a teacher thought of this essay

4 star(s)

**** Parts of this are very good but other parts have been written with very little understanding or evidence of research e.g. ASDA's ownership. The witer does improve and there are good examples of analysis and evaluation.

Marked by teacher David Salter 01/12/2012

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