Comparing Examples of Business Ownership and Objectives.

by derecome (student)

Unit 41 P1/P2/P3/M1

P1/P2/M1

There are three categories of organisations and these are the public sector, private sector and the voluntary sector. The public sector includes organisations such as the NHS, Police force and all publicly funded education facilities. The public sector is owned by the government and its aims and objectives are different to the private sector as they are not aiming to make a profit, this is for the reason that whatever money they make gets put into a different project in order for their services to run effectively as well as efficiently. The way in which this is funded is via taxes of which wage earners from the local area pay. Its other aims and objectives are to provide customer satisfaction as well as efficient services.

The private sector includes businesses such as Tesco, easyJet, Walkers and Banks. The private sector is the reverse of the public sector for the reasons that their aim and work is driven by making a profit. They then use this profit to expand their business which would then further increase their profits. To make this profit they depend on customers to buy their products and services and for this reason there is large competition within this sector. Businesses such as Tesco and Sainsbury’s are constantly lowering their prices and increasing their customer satisfaction in order for them to increase their customer sales ratio. Although some banks are owned by shareholders and the government, they are still under the private sector as their aim is still to maximise their profits. Because there is constant competition within this sector, not all businesses are making a profit and so their aims are to keep current customers and survive through the difficult times rather than making risky decisions to make a profit.

The voluntary sector includes businesses such as NSPCC, Oxfam and BHF. This sector also seeks to make a profit although for different reasons to that of the private sector. This sector aims to make a profit for the charities of which they are representing in order for the unfortunate people and animals to receive the care and food they should have in order for them to live a more manageable life. The voluntary sector is run by trustees appointed by the organisations.

There are six different types of ownership and these are;

Sole trader - A sole trader is a person who sets up and owns their own business. They may decide to employ other people but they are the only owner. A sole trader has unlimited liability

Partnerships - A partnership is where two or more people share the ownership of a business and so any decisions must be jointly made. Profits and losses are also split between the owners according to the percentage of which they have in the business.

Public limited - Public limited are usually large, well-known businesses such as Tesco and Sainsbury’s. Shares are open to the public via the stock exchange and so if a large amount of shares are brought, the original shareholders could lose control. Capital can be raised quickly as the banks know the businesses assets could likely pay off the loans.

Private limited - Private limited companies are smaller than public limited companies and have at least two shareholders. Shares require the permission of the board of directors of the business to be both sold and brought. These companies have limited liability.

Franchise - Franchise is when someone asks for the rights to run the store under the company’s names as well as sell the same products into an existing business and gain the right to use an existing business idea. An example of a business of which has done this is McDonalds. The person being the franchisee makes monthly payments to the company.

Worker co-operative – worker co-operatives are businesses owned and controlled by its workers rather than outside shareholders. In some worker cooperatives each member worker has one vote at meetings, despite the number of shares they own.

SMART objectives of:

Sainsbury’s (Private sector)

Over the coming year we will recruit and train more than 500 new counter and café colleagues to meet increased demand at the counters and to support the growth in our cafés

By 2020, our suppliers will also be leaders in meeting or exceeding our social and environmental standards

By 2020, our own brand products won't contribute to global deforestation.

By 2020, we'll double the sales of lighter alcohol wine and reduce the average alcohol content (ABV) of own brand wine and beer.

Between now and 2020, we'll continue to reduce salt, saturated fat, fat and sugar in our own brand products and we will lead on providing clear nutritional information, enabling our customers to make informed choices.

By 2020, we'll double the amount of British food we sell

NSPCC (Voluntary)

Create and deliver the services that are most effective at protecting children by 2014

Work with organisations to ensure they effectively protect children and challenge those who do not by increasing amount working with us by 10% by 2015.

Campaign for changes to legislation, policy and practice in order to keep children safe. These campaigns we aim will have an effect by the end of 2014.

NHS (Public sector)

A maximum wait of one month from diagnosis to treatment for all cancers by 2014

NHS Breast Cancer Screening Programme will be extended to all women aged ...

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NSPCC (Voluntary)

Create and deliver the services that are most effective at protecting children by 2014

Work with organisations to ensure they effectively protect children and challenge those who do not by increasing amount working with us by 10% by 2015.

Campaign for changes to legislation, policy and practice in order to keep children safe. These campaigns we aim will have an effect by the end of 2014.

NHS (Public sector)

A maximum wait of one month from diagnosis to treatment for all cancers by 2014

NHS Breast Cancer Screening Programme will be extended to all women aged 47–73 by end of 2012

To create a new NHS 111 telephone service for patients with non-emergency health needs to replace the 0845 4647 service by 2012

Southern waters (Private sector)

To provide resilient, sustainable and value for money services to current and future customers.

We aim to reduce our carbon footprint by 10% by 2020.

No more than 10% leakage by 2035

To give customers every opportunity to manage their water usage by 2015

Deliver the planned level of security of supply during dry periods

Reduction in properties at risk of flooding by 2017

BP (Private sector)

To use the latest technology to maximise recovery from the fields by 2013

To have a relentless focus on safety and managing risk by end of 2012

To ensure use of cash flow for reinvestment and distributions is efficient

Virgin Mobile (Private sector)

To raise awareness of Virgin Media HD by end of 2012

To create a new game called ‘super-fluid’ by end of October 2012

To allow passengers to use Wi-Fi 120 in underground stations by end of 2020

How organisations meet their objectives

Sainsbury’s

Sainsbury’s have a variety of objectives of which they aim to achieve and I am going to now explain how these are planned to be achieved. The first objective of which I am going to talk about for Sainsbury’s is ‘Over the coming year we will recruit and train more than 500 new counter and café colleagues to meet increased demand at the counters and to support the growth in our cafes’. Sainsbury’s will achieve this by creating more job roles for potential employees as well as building more counters in the more popular stores in order for them to keep up with the demand during their peak times. With the café jobs, Sainsbury’s will again recruit suitable employees with the correct qualifications as well as perhaps creating cafes in more of the Sainsbury’s shop to support their growth.

The 2nd objective of Sainsbury’s of which they are aiming to achieve is ‘By 2020, our suppliers will also be leaders in meeting or exceeding our social and environmental standards’ the way in which they will achieve this objective is by working with their branded and goods not for resale suppliers to meet or exceed their social and environmental standards. Another way in which they will achieve this will be by putting in place a research and development programme to drive practice in social and environmental standards in their supply base.

The 3rd objective of which they are aiming to achieve is ‘By 2020, our own brand products won't contribute to global deforestation.’ The way in which they will aim to achieve this objective is by sourcing all commodities which can cause deforestation (timber, palm, soya, beef, leather, bio fuels) from the most sustainable sources, set up a research and development programme with the objective of reducing our dependence on commodities sourced from regions at risk of deforestation and plant new trees, both at home and abroad, and protecting and preserving existing forests.

The 4th objective of which they are aiming to achieve is ‘by 2020, we'll double the sales of lighter alcohol wine and reduce the average alcohol content (ABV) of own brand wine and beer.’ The way in which they will achieve this objective will be by creating promotions such as including these in meal deals and BOGOF. These will achieve this objective for the reasons that customers will then see that they will be getting more for cheaper and so will influence their purchases. The way in which they will reduce the ABV of their own brand wine and beer will be by altering the level of alcohol within their products.

The 5th objective of which they are aiming to achieve is ‘Between now and 2020, we'll continue to reduce salt, saturated fat, fat and sugar in our own brand products and we will lead on providing clear nutritional information, enabling our customers to make informed choices.’ The way in which they will achieve this objective is by carrying out research for them to get an idea of possible replacements for salt fat and sugar content in order for them to reduce these within their own brand products. Another way they are also aiming to achieve this objective is by making their nutritional information more clear. To do this they will make the font sizing on their products larger as well as make the boxes of which the information is displayed in bigger and eye catching.

The final objective of which I am going to discuss is ‘By 2020, we'll double the amount of British food we sell.’ The way in which they will achieve this objective is by creating more contracts with various suppliers within the UK as well as increasing business with existing suppliers. The way in which they would do this will be by offering a competitive price for suppliers for them to want to supply Sainsbury’s.

NSPCC

The first objective of which they are aiming to achieve is ‘Create and deliver the services that are most effective at protecting children by 2014’. The way in which they aim to achieve this objective is by researching which methods are the most effective at protecting children, then once they have found the most effective methods, they will put these methods into place all over the country and see whether they have a greater impact than those currently in place.

The 2nd objective of which they are aiming to achieve is ‘Work with organisations to ensure they effectively protect children and challenge those who do not by increasing amount working with us by 10% by 2015.’ The way in which they aim to achieve this objective is by putting forward their work and records to organisations for them to persuade the organisations in working with them to support their work.

The final objective of which they are aiming to achieve is ‘Campaign for changes to legislation, policy and practice in order to keep children safe. These campaigns we aim will have an effect by the end of 2014.’ The way in which they aim to achieve this objective is by creating a campaign of which will highlight problems with the current legislations and policies as well as ways of which these could be improved. They aim to achieve this objective as they believe changes within the legislations can make a difference with the security of children.

NHS

The first objective of which they are aiming to achieve is ‘A maximum wait of one month from diagnosis to treatment for all cancers by 2014’. The way in which they aim to achieve this objective is by increasing the pace of which the medical notes and personal information is transferred between sectors within the NHS. Although some cases will need to be treated faster than others, they have created this objective for a deadline of which no cases will take longer than a month to be treated.

The 2nd objective of which they are aiming to achieve is ‘NHS Breast Cancer Screening Programme will be extended to all women aged 47–73 by end of 2012’ the way in which they will aim to achieve this objective is by increasing the number of breast cancer screening appointments per day as this will allow the NHS to cope with the new amount of extra people wanting screenings as well as they will also increase the places of which can carry out these screenings by investing money into the machinery as well as the staff who are capable of carrying out these screenings.

The final objective of which they are aiming to achieve is ‘To create a new NHS 111 telephone service for patients with non-emergency health needs to replace the 0845 4647 service by 2012’. The way in which they will achieve this objective will be by creating a team to deal with all of the legal matters as well as promoting this to the members of public to let them know about the changed number.

Southern waters

The first objective of which they are aiming to achieve is ‘To provide resilient, sustainable and value for money services to current and future customers’. The way in which they will aim to achieve this objective will be by minimising expenditures so it allows the business to keep its prices to customers low for them to keep their current customers as well as gaining more customers. Although cuts will be made within the expenditures, the customer service will be one area of which the cuts will not effect for the reason that customers want good service as well as competitive pricing.

The 2nd objective of which they are aiming to achieve is ‘We aim to reduce our carbon footprint by 10% by 2020’. The way in which they are going to achieve this objective will be by researching into alternative ways of carrying out their work such as changing van models used as transport as well as using ship transport for materials rather than using lorries as this will be a cleaner way of transporting equipment and materials and so will help them to achieve their objective.

The 3rd objective of which they are aiming to achieve is ‘No more than 10% leakage by 2035’. The aim to achieve this objective by monitoring all leakages down to their sources such as loose piping and fix those problems in order for them to have a more efficient way of distributing their water. This is an important objective of theirs as a lot of water is being lost and water becomes precious at certain times during the year as well as decreasing water loss will increase profit once the maintenance has been done.

The 4th objective of which they are aiming to achieve is ‘to give customers every opportunity to manage their water usage by 2015’ the way in which they are aiming to achieve this objective is by raising awareness about water efficiency within primary schools as well as having full water metering by 2015. These methods will allow customers to know more about the control of water usage as well as informing their children about it.

The 5th objective of which they are aiming to achieve is ‘Deliver the planned level of security of supply during dry periods’. The way in which they will achieve this objective will be by working along with their statutory Water Resources Management Plan which involves plans about the amount left in reservoirs ready for the summer and other drought times. This will decrease the length of water ban in certain areas if they can stick to their plan.

The final objective of which they are aiming to achieve is ‘Reduction in properties at risk of flooding by 2017’. The way in which they will do this will be by increasing the rate of sewer replacements, design replacements to address impacts of growth and climate change as well as increasing the capacity of sewers. This will allow the sewers to cope during flood more effectively as it will allow the maximum capacity to be increased as well as make the sewers efficiently.

The first objective of which they are aiming to achieve is ‘To use the latest technology to maximise recovery from the fields by 2013’. The way in which they are going to achieve this objective is by including the first offshore deployment of advanced low salinity water reservoir injection capability as well as looking to employ polymer flood technology on the Schiehallion and Loyal fields redevelopment to improve the sweep of the reservoir and overall recovery of oil.

The 2nd objective of which they are aiming to achieve is ‘To have a relentless focus on safety and managing risk by end of 2012’. The way in which they are going to achieve this objective is by following health and safety regulations within their work worldwide as well as taking further actions before carrying out risky events to ensure the minimal amount of risk.

The final objective of which they are aiming to achieve is ‘To ensure use of cash flow for reinvestment and distributions is efficient’. The way in which they are going to achieve this objective is by using additional operating cash carefully for the reason they want to use around half for increased investment in our project inventory for growth, and the other half for other purposes such as increased distributions to shareholders through bonuses or share buybacks or repayment of debts.

Virgin mobile

The first objective of which they are aiming to achieve is ‘To raise awareness of Virgin Media HD by end of 2012’. The way in which they are aiming to achieve this is by promoting packages such as football packages via mobile advertising and to specifically target Iphone users as this is a new area in the market of which isn’t widely used by competition.

The 2nd objective of which they are aiming to achieve is ‘To create a new game called ‘super-fluid’ by end of October 2012’. The way in which they are aiming to achieve this objective is by sending the team to travel to the Eurogamer Expo to ask visitors to comment on the design, game play and characters in order for them to get feedback on what parts of the game need adjusting.

The final objective of which they are aiming to achieve is ‘To allow passengers to use Wi-Fi 120 in underground stations by end of 2020’. They aim to achieve this objective by providing broadband stations throughout London. Additionally to this, Virgin have been offering free internet over the summer period in order for them to compete with the like of Sky during the Olympics. By the end of July 80 locations such as London Vitoria and Eustor will have these underground stations.

Comparison

Sainsbury’s and Southern Waters have their own methods used to achieve objectives and here I am going to compare them to one other as well as how they achieve these objectives.

First of all I am going to compare the business objectives. Sainsbury’s business objectives are largely based around the time of 2020. This is for the reason that they want to achieve 20 objectives by 2020 as they believe the planet is under strain and the choices they make about the products will become important. They also know the global population is rising at a time when natural resources are decreasing and so there is increasing pressure on the food system. For these reasons Sainsbury’s believe that they need to find ways to make land more productive and to protect the forests of which food production ultimately depends on. These targets will help them and their customers to make more nutritious, sustainable and ethical purchasing decisions each shopping trip. This will not have an effect by 2020, it will be in effect from present, however the closer to 2020, the more effect the objectives will have on the market. Sainsbury objectives are also aimed to ‘transform’ the marketplace for greener, fairer and healthier products. Sainsbury want to help shift their customers behaviour in support of sustainability however still providing the value and quality the customers have they expected.

The way in which Sainsbury aim to achieve their objectives are by taking steps of which will benefit the environment as well as their market such as their objective ‘By 2020, our own brand products won't contribute to global deforestation’. With this objective they have taken steps such as becoming a member of the WWF Global Forest and Trade Network and starting a partnership with Woodland Trust. In their partnership they have been donating 2p from every Woodland chicken they sell, and 1p from every dozen Woodland eggs. This partnership has led to more than 500,000 trees being planted. These are helping towards this specific objective as half a million trees and been planted as well as preserving current natural locations such as rainforests. These are the current achievements Sainsbury have helped towards and so with another 8 years left in the scheme, a lot is more to come from this objective.

An objective of which is benefit their marketing is ‘Over the coming year we will recruit and train more than 500 new counter and café colleagues to meet increased demand at the counters and to support the growth in our cafés’. The way in which this objective will benefit their marketing will be that they will be able to cope with the demands from the customers and so will be receiving and making more money of which will increase their position against their competitors as they will have an increased profit.

However, the objectives of Southern Water are not connected in a specific way like Sainsbury as they are ranging from objectives with no specific deadline to an objective with a large time period ending in 2035. Another difference between these two businesses objectives are that Sainsbury’s targets seem not to be profit related as they make out that their objectives are more to make the marketing a more sustainable place as well as helping saving the earth which could also be seen as a ploy to give them an advantage over competitors as customers would see them as they are a green company and that they actually care about the planet and so they will then perhaps make purchases from Sainsbury as they will also feel they are doing their own part of saving the planet. However, Southern Waters objective seem to be mixed between customer awareness such as letting them know of water management as well as offering them the best deals available and profit related as they relate to customers and sorting out leakages. Although customer related awareness is about the customers, it also reflects upon the business as good customer service increases the business profit. Allowing customer the knowledge of how to control their water usage allows customers to keep an eye on their expenditures which will make customers see Southern Waters to be a company who cares about their customers which will then help them to retain their current customers therefore possibly increasing their profit as customers will also recommend them as a good supplier. Offering customers the best deals at competitive prices will also end in retaining current customers as they would not wish to move supplier when they are being offered the best possible offers. Sorting out leakages benefits the company as it will make the company become more efficient as more of its waters will make it to their customers and therefore their profit will increase. Additionally to this the government will see the improvement the company has done and so could invest more into this as this will help toward preventing droughts within the local areas therefore decreasing the hosepipe ban periods.

Comparing Examples of Business Ownership and Objectives.

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