• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business Ownership

Extracts from this document...

Introduction

Background History of Sainsbury's plc's The Business I have chosen is Sainsbury, Sainsbury Supermarkets was established in 1869 by John James and Mary Ann Sainsbury and is's longest-standing major food retailing chain, their vision or their mission statement is "Sainsbury plc's vision is to improve the performance of the core supermarket chain. Whilst doing so we will continue to explore and develop growth opportunities in other markets. Through implementing 'Managing for Value' we will stretch our ambitions and challenge the conventional wisdom within the Company, thereby unlocking our potential and delivering value." Source: Sainsbury Web site There are several different business ownerships: ? Franchise ? Sole Trader ? Public Sector ? Co-operative ? Partnership ? Company ? Public Limited Company ? Private Limited Company Public limited company The type ownership that I have chosen is a "Public Limited Company." This means it is a type of limited company whose shares may be offered for sale to the public on the Stock Exchange. As a shareholder in a limited company, if it were to become bankrupt you would only be liable to contribute the amount remaining unpaid on the shares this is like limited liabilities. ...read more.

Middle

You might need enough to buy a piece of plant, for example, to pay back a venture capital investor who wants to realise their investment, to expand your team or to launch a product overseas. In most cases a private limited company would like to expand their business and floats their company on the London Stock Exchange Market, doing this may come with many advantages, but doing it could also come with drawbacks e.g. the owner of the Virgin group Richard Branson opted to change his company into a plc to expand his business keeping 65% of the shares until the control off Virgin group slowly diluted and his shares soon being concentrated into the hands of his major shareholders, after all the negativity he brought back his shares and changed his company back to a private limited company. Setting u a public company is a very long process you must go through a series of steps to do it correctly, you will need to: ? ...read more.

Conclusion

? It can advertise for capital from the public in the form of shares and debentures, so that funds are almost limitless. ? Management and ownership (i.e. shareholders can be quite separate. The shareholders can exercise some control over management at the annual general meetings. As in all limited companies, the shareholders' liabilities are limited to the amount of their investment. ? The company has legal identity-it can be almost treated almost as a real person under the law. By changing to a public limited company you will also face drawbacks: ? It's extremely expensive and complex to set up. ? Management can be criticised at annual general meetings by shareholders, who do not always have a complete knowledge of the situation. This may even hinder the progress of the company. ? Management in the large companies can become impersonal, inflexible and sometimes inefficient. This can lead to expensive and wasteful overstaffing. ? Much material, which the company would like keep confidential, has to be made public. This absorbs may staff and could make the company liable to take-over bids and to political pressures. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. Marked by a teacher

    ASDA's Ownership

    4 star(s)

    Expanding the business is also easy to pay for. An example of expansion is John Lewis. They started off as a small partnership but expanded. They have over 34,000 employees and each is classified as a partner and receives shares. * Partnerships are mainly associated with solicitors, doctors, accountants etc.

  2. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    This means that everyone is the company is helping to achieve the goals. Cascading the information can take a long time to get the information to everyone and start working towards the goal. If Tesco wanted to increase sales by 5%, but didn't pass this information along to each of

  1. For my portfolio, I was asked to do an assignment on two businesses. I ...

    to the wholesales customers and sole traders Purchased by the peoples The process used in producing services Vectone Gnanam Telecom used to produce their own cards and they have a batch number and pin number on their cards. The pin numbers and batch number are activated through a computer.

  2. Departments and their roles within a business.

    Both departments will discuss, communicate and research about the competitors', their prices and their products. Both functional areas will work together when they are testing and trialing new upcoming product amongst their target market. Any new information, feedback and customer opinions will be taken into account and the research and

  1. Introduction to Business Assignment

    marketing function performs an extensive amount of research known as market research which is carried out within the particular market that the company is wishing to target their products. 8.2 The reason as to why firms such as Sainsbury's pursues market research is to try and discover just exactly what

  2. Barclays Investigating a Business

    goes wrong, the people who gave you your credit card are liable as well as the seller.' 10 This would mean that if there were any complications with 'Barclaycard' they would be accountable for the problem as well as the seller of the product or provider of the service.

  1. Introduction to J Sainsbury plc

    (Source: www.j-sainsbury.co.uk) The second objective demonstrates that Sainsbury's can facilitate to open and timely communications to all its investors and shareholders. This is achieved by producing corporate profile and dividend details at the end of each financial year. Dividends are sustainable payments paid every two years and are made to Sainsbury's shareholders out of its profits.

  2. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    in order to have majority of customers they need to offer new ways in which Tesco?s can reward their customers with the use of the club card such as free shopping for the rest of the week if you have 500 points or more, this will then differentiate Tesco?s over Sainsbury?s as they are introducing modern ways to rewarding customers.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work