Business Ownership's
Many businesses can be classified in different ways according to the type of ownership it may have. Businesses can either be voluntary, private or public sector. Below are the different type of businesses:
* Sole Trader
* Partnership
* Private limited company
* Public limited Company
* Co-operative
* Non Profit or a charity company
* Franchise
The economy of today is divided into three sectors, which are called voluntary, private and public sector.
Voluntary sector
The Voluntary sector consists of mainly of non-profit making organisations this is an organisation that does not to financially reward the owner. The objectives of these types of organisations are non-financial. Businesses like the NSPCC this is a charity that is set up to help children. There are other companies like the NSPCA they are there to help animals. Most of these charities are registered charities. The majority of the people that work there are usually volunteers and are mainly from around that area and just want to help out. But within these charity based organisations there will always be paid managers. These charities usually ask for donations on the road or they will write to you all of this is for a good cause.
The voluntary sector of these businesses have a total income of £15 billion, £4 billion of which comes from the voluntary donations. The balance comes from charity shops and rental of properties.
Private sector
The public sector consists of three parts they include:
. The financial sector this consists of financial institutions such as banks and building societies. In addition to making and receiving payments on behalf of customers these act as the link between those groups that have money to save and those that need to borrow.
2. The personal sector deals with the economic decisions of individuals and house hold for example, how much income that they may receive, how they spend there income, how much saving they do. The amount that people spend and save will directly affect the economy as a whole by generating goods for demand and services.
3. Corporate sector covers those businesses that are privately owed such as soletraders, partnerships, companies and franchises. With the exception that all businesses are in the private sector.
Public Sector
The public company has its shares bought and sold on stock exchange. The main advantage of selling shares through the stock exchange is that large amounts of capital can be raised quickly. One disadvantage is that control of the business can be lots by original shareholders if large quantities are share are purchased as part of a take over bid.
For a business to create a public company the directors must apply to a stock exchange council, which will then carefully check the accounts. Then you will automatically be a public sector.
The public sector basically covers all activities carried out by central and local government.or are publicly funded.
Sole Trader
A Sole Trader is a business that has one owner. This is the most common form of business ownerships and is the easiest to set- up. Sole traders can trade under the owner's name. For example, Joan Willis the greengrocer could trade as the southern fruit centre, if they wished. The business name does not have to be registered but care must be taken not to use the same name that is already registered as a property of another business. There are a few restrictions words such as international, royal cannot be used without proper entitlement. If the business name is used the owners name must always be used on stationery.
Below are the advantages of being a sole trader
The advantages are:
* Easy and quick to set up
* You as the owner can enjoy all the profits The
* There are fewer regulations concerning accounts than with other organisations
* There are no legal fees
* You don't have to consult anyone if you want to make any changes to the business
* There are fewer regulations concerning accounts
The disadvantages are
* The owner cannot afford to be unwell at any length of time
* Long hours may have to be worked to make ends meet or keep the business expanding
* There will always be a lot of pressure on you
* Any losses will all be down to the owner.
* The owner will have limited funds and may find it difficult to borrow where money is borrowed.
* The owner has personal responsibility for all the debts of the business, and has unlimited liability this means that there is insufficient money in the business to pay creditors then the owners private property may be sold off to raise funds.
A sole trader offers a lot of freedom but can all so have risks, it demands a lot of commitment and it can bring you wealth and all that is for one person. That then means all the risks and debts will be on that one person as well.
Partnerships
A partnership in most cases has two owners but can have a maximum of 20. People in business such as partnerships can share skills and the workload, and may be easier to raise the needed capital. Partnerships are usually used as a form of of organisation by professionals that specialise in things such as dentists, doctors, or solicitors who find that they can offer a wider service with colleges who have different specialism Three dentist who are all partners in the practice for example a group of friends could set up a partnership to run a small business.
Partnerships are entitled to trade under each others name or a name of there own choice on once they don't choose a name that is already registered. The same restrictions that apply to the sole trader are the same restrictions that apply to the partnerships. The partner's real name however must always appear on the stationary.
Partnerships will usually go to a solicitor to avoid any confusion and they will usually write up an agreement plan that both parties are happy with. This will usually state the amount of hours that each of them are required to work. It will also have the amount of capital each person will have to put in. Most importantly what every agreement must have on it how the profit will be shared. The above agreements are very vital because without this, this could cause conflict between the two parties. In the absence of the partnership agreement the partnership act 1890 is used to settle disputes.
Below are the advantages of being in a partnership
The advantages are:
* More capital is available than for a sole trader
* You can share the work load
* There are fewer regulations through the partnership act
* It will be easier to borrow money because more owners' means that their more security is available then there is for a sole trader.
* There are few regulations through the partnership act does apply
* Responsibility for any losses are shared
* The running of the business will be taken care of by the partners
* A wider variety of expertise will be needed for the business then to a sole trader.
The disadvantages are:
* There can be conflict between the two partners
* You will have to consult one another when you want to make changes to the business
* Freedom than with a sole trader
* Profit will always have to be shared.
* As with sole traders partners are responsible for business debts although responsibility is shared. As a rule partners have unlimited liability status may be extended to a sleeping partner who invests money in the business but takes no part in management decisions. Where this arrangement exists there must be at least one partner with unlimited liability for business debts.
With a partnership you will have to get on well with each other and also be able to communicate and listen to each other in order for the business to function well.
Limited liability companies
A limited company is owned by its shareholders. Complains can be set up with just one director. With a limited liability company there is not set amount of shareholders there can be as much as you like. A limited company cannot be compared to the ones that I have mentioned above because they are all very different. All limited companies must be registered with the register of companies at company's house to whom financial information must be sent each year. This information is available for inspection by any member of the public.
If someone by any chance wished to sue the company they would not be suing us the shareholders they will be suing the company this will then mean that will are safe and are stake is not at any risk what so ever.
However on the other hand if they were to sue a partnership or a sole trader and they were taken to court they will be suing the owners of the business unfortunately.
If a company gets into financial difficulty and goes into liquidation the share holders tend to loose at most only the amount they have invested in the business. Their liability is limited to the amount. Even if there are unpaid debts after the business have broken up the shareholders will not be called upon to forfeit there personal assets in repayments.
Limited liability was introduced in the mid nineteenth century at the time of great industrial development where share holding has a particularly bad press.
While sole traders and partnerships both own and control their respective business, a company is not necessarily run by all of its shareholders. Instead a board of directors is elected by the shareholders to run the company in a small company the shareholders may also be the directors. A large company however may have thousands of shareholders. These people have bought shares as an investment and both have neither the ability nor the desire to run a company in any case there would be far to many of then to make this possible. The election of directors with special expertise is usually the solution.
Limited liabilities give the shareholders a distinct advantage over the unlimited liability of the sole trader and partnership. From the point of view of those dealing with a company, however, there is a risk that if the business fails they may not be paid, for this reason a private limited company must display the word limited or ltd in it's name. While a public limited company must always display the words PLC.
Private limited Company
A private limited company is much smaller than a public limited company by far. This type of company does not offer their shares to the general public. Private limited companies are formed by more mediums to large size business.
Companies that are known to be private limited companies are Local garage or a farm.
These are forms of organisations that are used by most of the clubs in the football leagues.
Public limited Companies
Public limited companies are able to offer their shares to the general public, often through the stock exchange. It is the share prices of these companies that are displayed in the daily press. Most of the large companies like Tescos and Iceland are both public limited companies.
Most Companies today start up as private limited companies and then go on to something bigger and end up being a public limited company. Manchester took this route and eventually became a PLC. A minimum of £50,000 in share capital is required before a company can go public, through most they can have considerably more than this.
J Sainsburys is a (plc). A plc as I said above has a share capital of £50,000, which can be issued for sale to the public but must have a plc at its name.
A plc is owned by ...
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Most Companies today start up as private limited companies and then go on to something bigger and end up being a public limited company. Manchester took this route and eventually became a PLC. A minimum of £50,000 in share capital is required before a company can go public, through most they can have considerably more than this.
J Sainsburys is a (plc). A plc as I said above has a share capital of £50,000, which can be issued for sale to the public but must have a plc at its name.
A plc is owned by shareholders, run by directors, set up by a body, which is separate from its owners (the shareholders).
There are advantages in being a public limited company
Below are the advantages:
* A plc can offer its shares for sale on stock market in order to raise finance
* Because of there size plcs can often dominate the market
* It is also easier to raise finance as financial institutions are willing to lend to plcs
* Production costs may be lower as firms may gain economies of scale.
* Shareholders have limited liability
* Creditors may be brought in as experts
* While the company has the money permanently, the individual owners can recoup there money by selling there shares to others.
There are disadvantages of being a public limited company
Below are the disadvantages:
* Money invested by shareholders you will have to pay back dividends this basically means that you have to pay back shareholders more money than they invested, dividends. Just like profit in case of a sole trader.
* Cost of flotation can be high
* Setting up costs can be very expensive
* Since anyone can buy their shares, it is possible for an outside interest to take control of the company.
* The way that they operate is controlled various company acts that aim is to protect shareholders.
* Directors need to report back to the shareholders at the annual general meeting (AGM) where unpopular decisions and poor results must be explained.
* The accounting of the company is less private than for other forms of organisations. Companies are governed by company's act, which state that financial records must be audited and made available to register of companies at company's house.
* There are a number of legal requirements to ful fil in setting up the company.
Co-operatives
Co-operatives is a business owned by and operated by its members. Each member of the co-operative can:
* Vote at meeting
* Take part in paking decisions
* Receive a share of the profit
There are two types of co-operatives. The retail co-operative its customers or members normally own this, each of who receives a share of the profit called dividend these are based of the accounts of purchases made. They manage the business. These co-operatives can be found in primary and secondary of the economy.
There is no legal definition of a c-operative, but there are certain features, which make most of them different from other types of the firm:
. Each member has one vote, no matter how much work or money that they put into the co-op
2. Shares keep the same value
3. All profits made belong to the members. Some may be kept for future investment. but the remainder is distributed to members in a previously agreed way.
4. The level of interest that can be paid for borrowing is limited.
5. Many are involved in political and social work, and the co-operative movement sponcers several members of the parliament.
Holding Companies
This is where plc have developed different areas of activity for which they set up theypanies or have acquired other companies on take over for the stock market; they will then become holding companies, while takempanies which the own are called subsidiaries. An example is the king fisher group, which owns retail outlets such as comet and Woolworth's.
Non Profit Organisations and Charities
Non-profit organisations may range from small local clubs and societies to large organisations with a big annual turnover such as the cooperative society, the trade unions, some building societies and charities. What these have in common id is that they plough back any surplus that they may make to benefits their members in the future. In this respect although they make money on the years activities it is still not known as a profit, because no owner is entitled to take the money. These types of organisations are known as the voluntary sector. These include well-known names like Oxfam, Greenpease and the well-known National Trust.
Public Co-operations
Public Co-operations have tended to be in heavy industry, energy supply and communications. Such industries have been government controlled because they fell into one of the following categories:
* They are a strategic importance to the country
* They are unattractive to the private sector because enormous capital investment is required and profits will take years to come through.
* They may be essential services which should be run for the benefit of the community
* They may be natural monopolies, which could be exploited by private owners concerned with profit.
Public co-operations are set up by the act of parliament. Any profit made are ploughed back into the industry or are taken by the government.
Since the Second World War the attitudes of different political parties have caused various industries to be nationalised and to be denationalised in line with the government policy
Local Authority Control
With the introduction of privatisation by the government the responsibilities of local government have declined. Local authorities have been forced to privatise many of there traditional services by a process called compulsory competitive tendering (cct). This means that private companies can bid or tender to provide, for example, school meals and household refuse collection.
Franchise
The franchise, an increasingly popular form of business organisation, Is a particular advantage of decentralisation. Here the parent company called the franchisor will sell the right to its name to the independent operator, called the franchisee. The operator will then buy a certain amount of stock from the parent company, pay a percentage of annual profits and agree to provide a certain standard of service. In return they will usually get help in setting up the benefits of national promotion and ready made image.
Advantage and disadvantage of a franchise
Advantages
For the franchisee
* Gain from national advertising
* Get a well known name and logo
* Simple to set up and relatively cheap
For the franchisor
* Little capital required for expansion
* Quick, simple low risk route to expansion
Disadvantages
For the franchisee
* Could require a large capital outlay
* Limited scope for individual action
For the franchisor
* Need to monitor and control the franchisee
* Franchisee may not achieve required standards.
Local Regional and National Businesses
A local ownership could be your local sweet shop or local drycleaners; this is a business that is round the corner from your home. Regional is when you have a certain company and they are in different parts of the united kingdom for example there may be one in Bromley, Lewisham, Kent this is what we all regional. National however is when it is in all different countries like the gap is in England as well as America.
International business
When a growing business cannot expand any further in domestic and market it may need to export. The process may begin with direct sales overseas. If this is successful a local agent could be appointed. If demand continues to grow the UK business could set up manufacturing facilities, perhaps as a joint venture with a local overseas company.
Global Business
A global business is one of which has design and development facilities, production and marketing operations fully integrated all over the world. This is a multinational business.
Business Ownerships
Every business exists to provide goods and services. All businesses whatever there objectives have to make products or provide a service that satisfies customers want and needs. Businesses set themselves objectives that affect the way that they operate. These objectives flow from its mission and are the criteria from what the performance needs to be judged.
Before most businesses set their objectives they will decide on there mission first of all.
The mission will have the following questions and the answers must be based upon it. With a mission you usually would writ what business you were in and what you are trying to achieve. However not all businesses will have a written version, businesses like a sole trader will not have a written one because the owner is more likely to keep it in there head. Unlike my business they will always do a written mission statement for the company.
Organisations objectives are always there mission statement. A mission statement is a written document setting out the organisations purpose.
A good mission statement should include all of the following below:
. Be well written simple and direct
2. Identify the value and culture of the organisation
3. Define its purpose
4. Identify its customers
5. Identify the scope of its activities
6. Set out its standards and qualities that distinguish it from its competitors
Mission statements are very easy to understand and are also set out in a very simplified way so that every one within the organisation are able to understand it.
Short Run and Long Run Objectives
Long run objectives are usually a three to five year period this is mainly the organisations main aims or primary. A company's long-term objective could be to increase the profits by 20 per cent.
Short run objectives are usually set up for one year ahead and they are mainly used to support the long run objectives. A short run objective for a business could be to increase profits in the southeast by 25 percent. Objectives are very likely to change over a certain period of time depending on conditions on the external environment and on the internal policies. Small high tech companies working in a small dynamic and risky environment currently set objectives for a maximum of 12 months.
Smart Objectives
For a business to be effective there objectives should be smart:
Below is a smart way of how objectives should be layed out
* Specific this basically means for a particular product in a certain place
* Measurable: This should show the percentage sales or profits
* Attainable or achievable with extra effort
* Relevant or realistic
* Time constrained that is in a set time period or deadline.
Below I have done a business and have shown how well this particular business has met the smart criteria.
This mission most definitely meets the smart criteria all of the way because it is specific they get straight to the point by showing us that they are selling beers, they have also made there mission statement relevant to what they are promoting. It has also succeeded the mission statement because there points are straight forward the company just goes all the way. They also identify their customers because it says they focus on community life. It also defines its purpose it simply states that it is a European beer and drink industry.
How business set its objectives
Cyert and March, in a behavioural theory suggests that:
* The managers of the business will have there own personal objectives, This could be to having the biggest salary all the way to controlling a large budget or being responsible for a large amount of staff.
* Managers take pride in working for their business and running there own departments.
* This pride can then cause a conflict of interest between managers each of whom tries to push the interest of his or her department.
* There are various groups, stakeholders who have a stake in the business for example shareholders customers or employees. These people however do not have any business in the way the business is being run because fortunately they have been compensated for not interfering.
* The managers of the business determine its objectives by the process of bargaining.
Why have objectives
The reason for businesses having objectives are all because of the following:
* They act as management targets
* When liked to pay and rewards they can encourage staff.
* They are also a standard against which performance can be measured. They help to bring staff together.
The mission statement and the objectives basically state the following, the objectives are chosen because they are inoffensive and will be acceptable to everyone.
* 'Our staff are here to help you'
* 'we provide the best quality service'
* 'We aim to serve the community'
* 'Service with a smile
* 'The best after sales service for life'
Quantitative Objectives
Quantitative objectives are targets which are aimed at, for example £300 000 a year profit; or 600 units sold or 30 000 produced or a market share of 21 per cent. Every business will have to have all of the five quantities goals.
. Stock
2. Production
3. Market Share
4. Sales
5. Profit
Stock
Every store stock manager has a fear of running out of running out of either components or raw material needed by the business, or the finished goods. Stock managers know that stock is important to them as well as there customers because if they run out then this will mean they will loose customers and will no longer have money coming in.
The main benefit of this approach is that:
* The production department knows that there will be no hold up in production because of a shortage component.
* The sell department knows that they have enough stock available and are able to guarantee delivery.
Stock companies need to make sure they have the right amount of stock at the right time at the right place and perfect conditions.
Production
The goals of the production department:
* To maintain out put levels regardless of sales volume.
* To achieve high volume production runs with require only minimum changes to machine settings.
* To run the equipment at the most efficient level, so avoiding breakdowns and the need for continuous maintenance.
Market Share
This is closely related to the business desire to receive sales revenue or volume. The market share is the fraction or part of a market in which the business controls. A bigger share of the market brings more power into the business. If the business goes and acts against the public interest, this could be by changing the price and making it higher the competition commission could investigate this.
Market share is also related to geographical spread of the market. For example a corner shop is likely to have a large share of a local market but be insignificant in regional terms; nokia which sells 41 million out of the world total of 163 million sold each year.
Sales
Depending on the organisation and whatever it is selling goods or services, both sale revenues and sale volume can be relevant.
The local library or careers centre will measure its success in terms of volume, that is the number of the people who us4ed the service, whereas for a manufacturing business volume may only be achievable with a price and a consequent loss in revenue. Businesses can be in conflict if it tries to achieve maximum sales and maximum volume. It has been put forward that managers aim to maximise sales revenue of the business while at the same time making just enough profit to satisfy the shareholders. Managers get rewards for sales rather than profits.
Profits
All firms attempt to make a profit. They there fore adopt pricing and production strategies that specifically aim to achieve this goal. Profits are defined as rewards for taking risks; this then means that high profit means high risks. Strategies have been adopted. Satisfactory profits mean means that a cautious approach has been taken.
Growth
Many managers in businesses are motivated by their desire for money, status, power and prestige. In most cases the only way that these ambitions cam be realised is if the business grows. Growth will then become a ma or j management. They can merge or go with other firms if they wish to increase the size of the business. Once one company takes over a competing company, it will gain a greater share of market and gives it bargaining power.
Survival
Survival is the main objective of every business. This is particularly relevant during recession. Most new businesses have survival as there main aims of the first years of operating.
When managers are concerned with survival they tend to be very cautious and reluctant to take any risks, this can mean that profits stay very low and the policy is self-defeating.
Providing High Quality product/and or services
Being able to provide permanently high quality goods or services are now significant aim for many businesses. It helps to differentiate them from there competitors and gives a perfect sustainable competitive advantage. This aim ISO 9000 which is an independent guarantee that the business is operating to quality standards. The business has to balance the benefits of increased quality, for example fewer complaints, against the cost of achieving it, for example better materials.
Qualitative Objectives
Providing Service to the community
This is business that strictly provides a se to the community and its purpose is to raise money to help them carry out all of there activities. They are interested in profit to provide an even better service with the extra money.
Developing a more skilled work force
'Our greatest asset is people' for sainsburys this means achieving its objectives through the motivation and development of its staff
It is committed to provide all staff with:
* A regular performance appraisal
* A personal training and development plan
* The information they need to perform more effectively.
Commitment is important if they want to produce quality goods and services.
Charitable or Non profit making Objectives
A charities objective is to help someone in need or too work for the common good.
Oxfam is a charity whose aims are to relieve poverty stress and suffering in every part of the world and to raise public awareness of the problems it operates in over 70 countries and has an annual budget of approximately £70 million. The greenpeace is an independent organisation whose main aim is to protect the environment. It has approximately 300 000 members in the United Kingdom. The current aims of greenpeace are to prevent global warming, stop toxic pollution and prevent the destruction of the rain forest. While the are all high profile non-profit making organisations there are many small local charities, which exist to help people in the local community.
In many organisations of today it is now almost obligatory for staff to put in voluntary time working in the local community.
J Sainsbuurys Plc objectives are to meet its customer's needs effectively and there by provide shareholders with good, sustainable financial returns. It aims to ensure that all employees have opportunities to develop their ability and are well rewarded for their contribution and success of the business. Its policy is to work with all of its suppliers fairly recognising the mural benefit of satisfying customers needs. It also aims to fulfil it responsibilities to the community and environment in which it operates.
Sainsburys has quite a few objectives within their company
Some of the objectives are:
* Customer satisfaction: Customers are always right even if they are wrong according to the sainsburys policy if customers are unhappy they are most unlikely to come back and that will look bad for the business and will show that the people in the business are not worthy of being in the business
* Serving the community; a business that is seen to be socially responsible will retain the respect of the other customers. Also a business that advertises its good work is likely to gain new customers.
Sainsburys also have a supply chain the overriding of sainsbury supply chain is to provide outstanding availability of product optimum costs. This basically means that sainsburys must get the right product in the right place, at the right time. This is what our customers expect and deserve. Sainsburys supply chain is focused on meeting anticipated customers customers demand not direct replenishment sold.
Sainsburys supply chain process requires one effective management of over 2000 suppliers at one end of the chain and at the other end they have 12 million stocking points in there store, at the other end of the chain.
With the introduction of home shopping and different store formats, such as sainsburys local area town stores, plus the increasing variety of commodity that they sell, sainsburys are developing a number of chain channels or levels or services to manage their complexity.
Historically, logistic teams have been responsible for managing the flow of information along the distribution has been responsible for the physical storage and delivery of the goods. These two areas have to achieve shared objectives and make the supply chain a truly successful one.
Sainsburys also have objectives, which are to recognise the importance to the people in providing a foundation for delivering with an excellence. Sainsburys also provide employment stimulated and well-equipped working environment. Sainsburys workers work in a flexi environment that encourages creative thinking and flexible working with colleagues. Teams are focused on achieving clear business objectives, but people are also encouraged to save personal development objectives and career aspirations.
Sainsburys also try to focus on there consumer demands, there relationship with suppliers and other supply is becoming one of strategic collaboration.
Sainsburys is a company that is committed to their environment they try to reduce the impact of their operations on the environment.
As I have said about the above that sainsburys always try to care for their customers they always try to provide a good service for the elderly people. They also have an objective that is never to keep customers waiting so they try to minimise their cheque out ques. They also try to treat complaints and refunds as a benefit to the company and it also gives the customers o speak how they feel.
Sainsburys also try to set themselves priorities and goals. The three key priorities and goals were developed in 1998. They are all based on those environmental impacts that are considered the most significant for the business.
Priorities
* Reduce the environmental impact of the product
* Reduce waste
* Reduce co2 emissions
Sainburys goals are the following:
* Environmental Management: Manage the significant environmental effects over which they have direct control and seek to influence those of there customers and suppliers who reduce the impact the organisation has on the environment.
* Transport: They increase the efficiency of transporting their products and address employee and customer travel, with the aim of reducing co2 emission while achieving customer satisfaction and business growth.
* Waste: They reduce the wastes that they produce from there operations, recover as much as is practical, ensuring that the remainder is disposed of responsibly. They encourage their customers to recycle their approiate.
* Energy: In this operation they reduce co2 emission from energy for building service through responsible energy sourcing minimising demand and efficiency.
* Property and store operations: They develop, design, and operate their stores and distributions centres to reduce their environmental impact while achieving customer satisfaction and business growth.
* Own Brand product and suppliers: They try to influence there suppliers by reducing there direct environmental impacts and improve the environmental of quality of own brand products through more sustainable sourcing
Sainsburys supermarket waste and packaging
Targets
Saisburys also set themselves targets in the year 2000 this was to develop and implement a strategy to reduce the amount of waste sent to the landfill by 10 percent from a baseline of 1999/2001, and increase the amount of recycling receive to turnover.
Progress
They have improved on data and accuracy made new outlets for recycling plastic trays introduced. Increase in both donation and composting tonnages.
In 20002, they have not made any changes to their targets.
Sainsburys supermarkets property
Targets
The targets were set in 2000 and they were to innovate building designs, particularly the Greenwich peninsula low energy super market and by march 2001 identify measures that can be adopted at other stores.
Progress
They achieved it and the evaluation was completed.
Sainsburys are meeting their objectives quite well compared to other business. I have noticed from visiting the store on a couple of occasions that as they have said in there objectives that they cater for the elderly, I myself have realised and sainsburys as a large organisation have realised that the elderly like to retain there independence by doing there own shopping, as sainsburys is large store it can make there shopping very tiring experience. As sainsburys enjoy helping customers, I have noticed that they put chairs near the checkouts for the elderly people to rest on. They also help elderly people with
They're packaging and help them take their bags to the car. This is not only done in this particular store, but many more that I have visited too.
They are also being successful in their checkout ques because they minimise the waiting in the checkout. In addition, I have realised that many of sainsburys collegues are multi skilled because at busy times they are always able to call out on more colleagues to operate the tills. They are definitely meeting their objectives in this area.
Complaints are taken seriously, no matter how small it is sainsburys employees always go through the right procedures. Sainsburys is most definitely meeting its objectives because they are showing that customers that they are right and going through the procedures and making sure they are being dealt with in the right and proper way. Sainsburys consider complaints systematically. Fortunately, most can be dealt with quickly in store by refund, with proof of purchase, or by replacement, to complete satisfaction of the customer. Serious complaints like contamination of food poisoning, for example are sent, are sent to the product quality team for their analysis and expert opinion. The store duty manager deals with service complains but if customers are still dissatisfied, there details are taken for a written reply. Larger claims for compensation are sent to our customer management team, where they are immediately acknowledged. Customers receive a reply after full consideration of their claim. Group legal services or insurance departments deal with more serious complaints, for example accidents in store.
Sainburys also serve the community and charities well because I noticed they done something for comic relief, I have researched and it shows that sainsburys have been exclusive red nose retail partner for comic relief red nose day, this is a fundraising campaign that raises cash for the poorest and most disadvantaged people across Africa and the uk.
Sainsburys have helped the fundraising effort by selling the familiar red nose as well as products that promote the campaign and include a donation in their price. At this part they have shown that they have met there objectives well because not only did they participate in red nose they also donated money to comic relief, so this shows they put allot of commitment into the charities as well as achieving there objectives.
Measuring the success of the Business
Every business today whether they are big or small or even a medium to large size business will always have to measure the success of the business. There are many different methods that exist for many type of businesses to measure how successful the it is. The reason for businesses to measure how well they are doing is to see if they are making a profit or a loss. And if the business notices that they are making a loss they will have to then find out where they are making a loss and where the problem is accruing.
Some businesses are more likely to look at there annual report, on this type of document it shows how well the business has done over the year, wit this you can compare each year. For example take year 2000 and year 2001 and see the difference you can check if you have made more of a profit in the first year than you have in the last year, and if you have made a profit try and if you have not made a profit try and find out how come, and where you went wrong in that year. However if you are lucky and have made a profit you can then try and build on that and make a higher profit for the year ahead. This is why it is always good to measure how well your business is doing so you are able to check the good points and the bad points of the business.
Another well-known method is market research. This is one that Sainsburys tends to use, with market research the following is likely to be used.
Market Research
. Questionnaires
2. Surveys
3. Interviews
Sainsburys workers will usually take it in turns at the door of the store to give out questionnaires to customers and they will usually collect them as they are coming out. Sainsburys questionnaires will usually be based upon sainsburys food and there workers. Questions will vary all the time but will be similar to the one below.
Are sainsburys workers working to your satisfaction?
These are the types of questions that are likely to be asked on questionnaires because sainsburys will then know how customers fell about the staff and the store in general.
From doing this type of market research sainsburys will then be able to recognise points that customers are not satisfied with and points where they are satisfied.
Sainburys also do surveys this is another part of market research that large businesses tend to use. A survey is like a questionnaire but instead they will usually tally the answers. They also do interviews with customers and they would usually ask them questions personally on what they think of the store. To me this method is not a good one because it puts customers under pressure and that will make them feel that they have to say something good about the store.
Sainburys also look at their profit and loss accounts this method is where they see where the company is making a loss and where the company is making a profit. On this
Accounts they will be able to recognise where to much money is being spent and try and spend less so this section is then a profit.
There is also another method that businesses use its is called performance Ratios in this area there are three sections:
Performance Ratios
. Return on capital employed- Roce
2. Return on investment-ROI
3. Profitability ratio
Another important way for businesses to measure their success is by looking at the market share price
Other businesses sometimes look at their market sale prices this is where a particular business will look at there competitors prices and compare all the prices and then they will see if there market price is too high or too low. In these cases it will usually lead to price wars for example if a company is selling an item for £40 and another company is selling theirs for £35 it will then lead to a price war because the first company will have to lower there price to be able to sell there items.
The most common and easiest way for sainsburys to measure there success is by looking at there complains and refunds. The less complaint sainsburys gets means that there will be fewer problems and the business is then unlikely to get a bad reputation. They also look at the amount of refunds the less refunds will mean less money going back out all the time and it also shows that customers are happy with the products that they are purchases. This then leads to bigger success and more people will start shopping with us because friends and family may tell them about the company and how good the quality of there food are.
Some companies also look at there share price and their market share, this form of measuring there success is once again looking at the competitors and what they are up to and what there market share price is.
Saisburys compactors is a good way for them to measure there success because they are able to see how well there competitors are doing, and if they are doing better than them they will try and find out how and try to obtain I higher level than other companies.
The Functional Areas
Within many businesses today they have to carry out a range of functions, in order for the business to function effectively.
The functions will include the following:
* Finance
* Production
* Human Resources
* Marketing
* Administration
* Research and development
Each of the following areas contributes to the running of the business.
Finance Department
The finance department of sainsburys is responsible for financial record keeping of the business. This involves keeping records on computer file, of money received from customers, banks etc and money paid to suppliers, employees, banks etc. The financial records will be used to produce the financial statement of the business, which is required by law in case of limited companies.
The finance department helps oversee the payments of wages and the handling of cash by the cashier. It also helps produce the management count of the business, the figures show how well sainsburys is performing in terms of expenditure and income in comparison with budgets prepared in advance. It also helps raise the finance needed for the business.
The finance department contributes to the running of the business because if we never had the finance department, all of our accounts would go down hill because there would be no there to finance the business. Another reason why the finance department is important to sainsburys is because it plays a big role through out the business; this department deals with money coming into the business and money coming out. And in order for the business to work effectively they will need this for all there accounts and up to date record keeping.
The finance department in sainsburys is carried out well because they section their department into groups. Within the sainsburys organisation they will have the financial accounting function this area is responsible for keeping records of financial events as they occur. Accounts are kept of all money paid to for by a company, and records are kept of all creditors and debtors transaction. This area also keeps day-to day records, the financial accounting function is also responsible for producing periodic records such as the annual accounts.
The next section is called management accounting function they are responsible for giving figures for the present and prediction for the future. Management accounts will break down figures, to extract information with a companies present performance and about what sort of improvements can be made in the future.
Within the finance and accounts department, they will have a cashier department and wages department. The cashier department will deal with handling all cash transactions, as well as cheques and other payments through the bank accounts. These records are usually kept in cashbooks or on the computerised systems.
The wages department is responsible for looking after the payroll. This will include calculating and paying the wages.
The finance department helps sainsburys meet its objectives because, as I have said on the previous pages, that one of there objectives were to raise money for charity and donate money to them as well. If our finance department were not effective then saisburys would not have been able to donate money to the charity. If the finance department was not set the way that it was then they would have been unable to meet there objectives.
Production Department
The production department is in charge of all manufactured goods sainsburys produce. The manufacturing process will have to be strictly controlled in order to maintain quality and keep to production targets. The purchasing function must ensure that it obtains raw materials from the right supplier, at the right place and the appropriate quality. They must also make sure they have the right equipment required too keep the production process running smoothly.
They will also have a store department who is responsible for stocking all the necessary tools, spares, raw material and equipment required to manage the manufacturing process.
You will also have to design a technical department this area is responsible for researching new products or modification to existing ones. This area is also responsible for estimating costs of using different quantities and different methods. It is also responsible for the development of prototypes through the final product.
The work department
This area is concerned with the actual manufacture of a product. This work department is also involved with quality control and inspection.
Production contributes to the running of the business because the process is where sainsburyys products are made and have to pass quality standards and has to pass ISO 9000 standards. The production department helps sainsburys meet it's objectives because one of sainsburys objectives are to sell good quality products, the production helps them to meet there objectives because this department has to make sure all of the products are fit and of high quality to go onto the shelves.
Human Resources Department
The human resources personnel function fulfils a number of needs; it is responsible for hiring and firing employees, for staff training and development. The human resources department draws up a policy setting out what the business does about health and safety, e.g. procedures for emergencies like fire. They set up a safety officer and make sure that health and safety is being monitored. They also make records of accidents. There are many different kind of work concerned in the human resources function they may include the following below.
* Administration
They are concerned with the payment of the wages
* An education and development role
They are concerned with helping people with their education and the work force.
* A bargaining and negotiating role
This area is concerned with acting as an intermediary between different groups and interest with trade unions.
* Welfare Role
Concerned with looking after people at work and their needs.
Human resources contribute to the running of the business because it covers many different aspects and deals with all different people. Every single aspect is to help employees that work within the business. This helps the running of sainsburys because it shows that the company is looking out for them so this could motivate employees to work harder.
The business is most definitely meeting its objectives because one of there objectives were to appreciate the employees, the human resources department do this because they are always concerned with looking after people at work and there needs.
Marketing and Sales Department
The marketing department requires satisfying customers needs at the right price. It means
Identifying this involves answering questions such as how do we find out what consumer requirements are? And how do wee keep in touch with their thoughts and perceptions about our goods or services?
Anticipating: Taking into account that consumer requirements change al; the time. For example as people become richer, they may seek a variety of goods and services. Anticipation involves looking at the future as well as the present.
Selling on the other hand involves persuading customers to buy their products sainsburys have already produced. The sells function will coordinate the selling programme. Sainsburys also have a customer service section, which answer customer enquiries and deals with customer complaints.
Marketing definitely contributes to the running of the business because this area finds out what customers needs and wants are. If they did not know this, they will produce the wrong product and it will fail to sell.
Therefore marketing is very important to the business because it deals with the customers.
This area helps it meet its objectives because they are strictly there to find out what customers want, as one of my objectives was to find out customers needs and wants, so this most definitely meets the objectives because the market department carries out marketing activities they help to find out what customers like.
Administration
All large organisations like sainsburys have administration. This area deals with enquiries; communicating messages and producing documents for the workforce are all examples of administration tasks. Administration is very important because they service the work of the company.
Sainsburys has a central office that is responsible for controlling key aspects of the firms paper work. This department manages the filling of materials, the company mail, word processing and data handling facilities.
It is common in sainsburys store to have an office service manager with the responsibility for co-ordinating office services and for offering expert advice to depart mental managers.
The work of an office manager will usually include the following:
* To organise training and administration staff
* Report and provide statistics for the company
* Co-ordinate supply the office equipment stationery
* Advice department about office lay out office equipment, staff development
Administration contributes to the running of the business because they can deal with any queries customers may have, this area also deals with how well the business is being run. This area helps the business meet its objectives because they ensure that sainsburys is managing well and that they are well organised.
Research and Development
In sainsburys research and development has strictly commercial functions to further the companies business aims by creating new and better products, improving better operational process and developing new ones, and providing extra advice to the company and to customers. Without the flow of new improved products and processes, no company can help to remain successful. Research and development meets sainsburys objectives because they always look for quality and so does sainsburys objectives.
It is essential that the functional areas meet effectively for sainsburys to meet its objectives.
The finance department are connected with production in certain because if the finance department was not receiving enough income, then the production department will be easy to produce any goods. In order for the production department to operate, they will need to find out how well the finance and accounts are doing.
The finance and Human Resources department are connected because in order for the human resources department to deal with education and development, they will need to find out how well the finance and accounts are doing.
The finance and administration are also connected because in order for them to operate they will have to make sure the finance department is financially stable in order to maintain this department.
In order for research and development to take place, they need money from the finance department.
