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Business Ownership.

Extracts from this essay...

Introduction

(E1) Business Ownership There are many ways in which business can be organized. It can be from a small one-man business to a multinational organization. The business ownership is mainly divided into different sectors. In this part I am going to explain about two types of business ownership. 1. Private limited company 2. Public limited company (plc) Private limited company The limited company is fast becoming one of the most common forms of business organization. When a small business expands there is need for extra capital. The proprietors may start the business as a limited company just to obtain the benefits of limited liabilities. The partners may decide to turn the business into limited company to raise this capital. A limited company is a separate organization in law from its shareholders and directors. The main points of private limited companies are: * The name of the company must end with the word 'limited'. * There is no limit to number of shareholders. Advantages 1. Limited company can continue even after the owner dies. 2. With limited liabilities company is able to attract capital from public. 3. The founder of company can usually keep control of it by holding majority of the shares. Disadvantages 1. The company is not allowed to appeal to public for extra capital. 2. The accounts of the company must be filed annually by the Registrar of the company. 3. The shareholders of the company may be able to transfer his/her shares to someone else only with the consent of other shareholders. 4. The company is unable to trade shares publicly on the stock market. Public limited company (plc) The second type of limited company is public limited company (plc). This is largest and most important business unit. Public limited company must stated in the Memorandum of Association that the company is public. The process of creating a public limited company is very similar to that of creating a private limited company.

Middle

Their own labels are sub-brands amongst the best in United Kingdom. They are developing stronger complementary non-food offer through Adams children's clothes, Jeff & co. and a trial of home enhancement range. They are working to develop their own health and beauty offer through up-grading their in-house capability. Great Service Delivering great service is a main objective of Sainsbury's business transformation programme. Sainsbury had made great strides last year by retraining their staff to serve their customers better. Their mystery shopper is now embedded in the company, this and their customers satisfaction index demonstrates the progress they are making. Their mystery shopper measure is now embedded in the company; this and their customer satisfaction index demonstrate the progress they are making. They have achieved cost savings of £ 160 million in the year delivering a total of £ 250 million since they began the programme. These savings will be reinvested in enhancing the customer offer, building sales and in improving their operating margin. Competitive Cost Sainsbury monitor 10,000 lines weekly to ensure that they remain competitive in the market. They have reinvested some of their cost savings in price adjustment. Alongside this they continue to run a highly attractive, sustainable promotional programme. They have set up many promotion plans to attract more customers to their business, like buy 1 get 1 free policy. Customer Satisfaction Despite all the work in stores Sainsbury still focused on the high standards their customers expect. They know that their customer's satisfaction drives sales and that the investment they have made in improving their stores. Store Refurbished Their store reinvigoration has now been implanted across more that a third of their estate and they plan to improve further 70 stores during the coming year. A major refurbished now takes place in under 12 weeks ensuring that the improved offer is available to customers as quickly as possible. Improving Shares Sainsbury will improve their market shares by 2/3% to increase sales of food by 3.5%.

Conclusion

3. It is concerned with looking after people at work and their needs. 4. It is concerned with acting as an intermediary between different groups. 5. It is also concerned with compensation, remuneration, bonus pays and fringe benefits such as implementation of health and safety rules. 6. It is also concerned with educating the employees to make them capable of competing in the changing circumstances. The key areas of Sainsbury's Human resources department: Area Reasons Manpower planning To identify and meet Labour shortfalls; and to review employees' current skills; and to help employees achieve their potential. Recruitment and selection To ensure organizational objectives are met, bringing in new ideas, to appoint suitably qualified and skilled employees. Training and development To allow new employees to settle in quickly, to help employees develop and contribute more to work of the organization. Appraisal To encourage employees to achieve their potential, to support employees in their attempts to achieve personal goals. Welfare To help employees satisfy their personal needs. Consultation and negotiation To communicate key policies, to motivate employees through involvement, to anticipate and identify employee concerns. Marketing Marketing is essential to the survival of most organization. It is fast paced, dynamic, highly visible and rewarding to its successful practitioners and frustrating. The main purpose of using marketing is that to find out what customer needs and providing it. In other words, marketing is looking to the business through customer's eyes. When the need is identified the company will try to sell these needs to customers. These needs can be identified through market research. Marketing is useful for further success and profit, like Sainsbury marketing is a huge part of the activity. Their main aim is to one step ahead of their customers by identifying and anticipating their needs. Asking someone for his/her views and opinions is called market research this has to be carried out by asking appropriate questions. In marketing terms this is called survey. Sainsbury conduct this survey by face to face, through Internet and through customer's suggestion boxes by asking questions like. For e.g.

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