Aims + Objectives
The aim of boots is to make a profit, like most businesses become the market leader and become the best possible company that they can be the best possible company that they can be.
The objective of boots is to improve products and services, and to enhance the well being part of their company.
The reason
Boots is located were it is because it is in the middle of the shopping centre; this makes it easy to get and easy to find. Because of this people may go here rather than competitors that are located near the edge of the shopping centre and some people will not beable to walk that far.
Boots competitors are savers and superdrug this is because they offer the same sort of products for the same low price as boots.
External Costs
Businesses have benefits and disadvantages to the communities within which they operate. The main problems are the external costs – these are the costs, which are paid by the community rather than by the business.
Air pollution - when people try deodorants or perfume the waste products go into the atmosphere and add to global warming.
Noise pollution - When boots want to take products to their store they have to take lorries to and from the store.
Waste products – Boots will sell a lot of products that are wrapped in plastic packaging, which is not bio – degradable.
To make some of these costs to the public go away they could put fans in their store to take away the smell of unwanted perfume and make-up. Instead of having lots of deliveries they could only have 1 a day and not a few these could be made at night so that no one will tell that there are big lorries going down their street. And they could not wrap their products in so much non-biodegradable packaging.
Boots could respond to the changes in the local economy by
Comparison
Introduction
Similarities: Boots and Dixons were both started by 1 person and then developed with the help of their families. Dixons’ founders’ son told his dad to sell camera equipment and this helped them expand, When John boots son took over from his dad he helped the company expand also.
Boots and Dixons are both in the tertiary sector of business this is because they both offer a service to the public and other businesses. Differences: There is a difference in the sort of products that they sell boots is all about health care products and baby clothes and Dixons sells electronic things such as computers and t.v’s.
Activities
Boots and Dixons are both in the tertiary sector of industry, this means that they provide a service to the customers that buy products and also to different businesses that buy from them.
Boots and Dixons could respond to this by taking their company to a wider range market and bringing out a different range of products. They could also introduce new sectors into their stores, which is dedicated to a particular product they could also employ people who are specialised in these products.
Aims + Objectives
The similarities in Boots + Dixons aims and objectives is that they both want to make a large profit and expand their businesses to become bigger companies and become the market leaders. The differences is that Dixons want to create more places for their shareholders and Boots want to take the complexity out of their company.
The changes that boots and Dixons could do to make their aims and objectives better is they could create more objectives to reach their aims and become better companies
Location
Similarities: Boots and Dixons stores are both very similar because they are both located down the same isle and are fairly close to each other but they have big differences. Boots is a very large store with different parts and Dixons is a very small shop and cannot accommodate for many products.
Boots could not really improve were they are because they are in the centre but Dixons could place themselves nearer the centre of town and have a bigger store to accommodate more products.
Ownership
The similarities between Boots and Dixons ownership are that they are both companies with limited liability. They cannot lose control of the company to outsiders as all the shareholders have to agree to it for any place and the company will not cease trading if one shareholder dies.
Boots and Dixons could place more shareholders into the company making it more financially stable. They could change some of the directors of the company and this will make it have some new ideas, which could help them stay as the market leading company for the next few years.
External Costs
The similarities between boots and Dixons external costs is that they both produce the same noise pollution coming from lorries that take products to their stores. They both produce waste products from the packaging from which their products come in. The difference is that boots produces air pollution from all of the perfumes and deodorants that are tested and Dixons does not produce any air pollution at all. But both companies can rectify this in different ways for Boots can put fans in their stores and Dixons can use different packaging. But they can both do the same for big lorries they can take them at night and not make so many deliveries.
Sustainable development is meeting four objectives at the same time. This is important because they need to improve the efficiency with recourses.
They could be affected by Government laws to protect the enviroment because they could be producing a lot of waste products into the air and sea from mass production and be asked to cut down. This could affect there sales so they could lose a lot of profit.
The companies have introduced new policies in response to the new laws set by the government:
To develop, maintain, measure and implement policies, procedures and management systems which assess and minimise the environmental impact of its operations, particularly in relation to:
materials usage, chemical discharges, and emissions, waste management and energy management. They would go to the trouble of doing this because they to obey the laws, and if they companies went to court they would lose their customers. The two companies have been successful in overcoming these enviromental concerns because their profits have remained high so they are not losing customers and both of the companies still have a good reputation.
An interest rate is when you borrow money from a bank and the rate is how much you pay back to the bank per annum. For example if you have borrowed £1,000 and the interest rate is 10 % you will pay back £100 in interest. The government use it to control inflation, which is how prices rise or fall.
An exchange rate is how much an item is worth in a different country. For example if a computer is worth £1000 in the u.k. And the exchange rate is £1 equals 60 cents, then you will pay $600 for the item in America.
An inflation rate is the percentage increase or decrease in the prices of goods and services usually annually.
An economic cycle is where the economy passes through cycles of growth and decline.
For example boom: this means that customers are buying more goods and businesses therefore need to employ more workers. People then earn more money and spend it. Wages tend to increase, as businesses pay more to attract labour. As the boom continues, prices will be pushed up and so will the interest rates.
The government has to manage the national economy because it affects everybody, it is an objective of the government to make sure that the population is happy. To do this they may have to increase wages or lower interest rates.
A change in the interest rates would affect the companies because if they went up then people would have to pay more money back on their mortgages this means that people would not spend as much money and they would lose profits. But if they went down then people would not have to pay as much on their mortgages this means that they will spend more on different things and the companies profits would go up.
A change in the inflation rate can lead to different things, if it went up then the companies would make a profit because prices will have risen, if it goes down then they will lose profits because prices have gone down
A change in the exchange rate would affect the companies because if they went up then companies would have to pay more for their products from abroad, this would make them lose profit. If they went down then the company could buy more items for cheaper, then they can make a profit.
Boots and Dixons could be affected by the various stages of an economic cycle. If the economy is in a slump then people will not be buying from their companies because everything is too expensive for people to buy, this could lead to a decrease in profits. If the economy is in a boom then people will be buying more and they can gain big profits.
To minimise the effects of interest rates the companies could: If they went up then the companies can lower their prices so that people have enough money to but their products. If they went down then people have lots of money so the companies could rise the price of their products.
To minimise the effects of inflation rates the companies could: If they went up then the companies could lower their prices so that more people will go to their store instead of other rivals. If they went down then the companies would not change their prices but keep them the same as everyone else because no one will want to lower their prices than what they have to.
To minimise the effects of exchange rates the companies could: If they went up then they could buy their products from a different country, to try and get the best deal and make more profit. If they went down then they could still do this to make even more profit.
To minimise the effects of a slump in the business cycle the companies could: They could lower their prices just below competitors because people will be trying to get the best deal on the market because they are not earning that much money. This would bring lots more customers into the shop.
Boots could change to the changes in the local economy that the council put in by making sure that all of their products can be recycled and be reused. This is because the council wants this area to be good at recycling to cut down the waste.
Competitive Enviroment
Competition is important as an external influence because the companies can make profits from it. If Dixons have the best prices then they will get more customers to pay the best price for a certain product.
Price competition is where the prices of a company attract customers if their price is the best then they get the customers.
Non-price competition is where the adverts of a certain company will attract the company, or their reputation.
Dixons use price competition, they try to keep their prices the same as their competitors, but sometimes they will be either more expensive or cheaper than these.
Dixons uses radio and poster’s as their non-competition strategy, they have to make these better than the competitors to grab more customers attention.
Dixons segment the electronic goods market by offering the best products for certain ages:
They do this because they will advertise heavily on some of these segments e.g. the teenager column contains most products and more people are in this range. I would say that this is more advertised than the rest because there is more teenagers than older people, this will cause more teenagers to shop here then because of peer pressure other people will buy the same product this will cause Dixons profits to grow.
Dixons operate in a niche market (a gap in the market) e.g. computers use modems to get information from the Internet to your computer but there is a faster way, called broadband. Dixons responded to this by offering a service from BT to promote their broadband service this could cause more people to buy computers from their stores because of their links with other companies.
The market that Dixons operate in is pretty competitive depending on which product you are talking about. For example if you talk about mobile phones there is a big market so it is very competitive because there are lots of different stores that sell these including the carphone warehouse, orange, O2 and T-mobile.
Boots
Price competition is where the prices of a company attract customers if their price is the best then they get the customers.
Non-price competition is where the adverts of a certain company will attract the company, or their reputation.
They do this because they will advertise heavily on some of these segments e.g. the teenager column contains most products and more people are in this range. I would say that this is more advertised than the rest because there is more teenagers than older people, this will cause more teenagers to shop here then because of peer pressure other people will buy the same product this will cause Boots profits to grow.
The market that Boots operate in is pretty competitive depending on which product you are talking about. For example if you talk about make-up there is a big market so it is very competitive because there are lots of different stores that sell these including the body shop, body care, superdrug and bow bangles.
The pressure that this competition would bring to Dixons is to keep their customers coming in to their Store instead of their competitors. If they did lose these customers their customers then they would lose profits and their business would struggle. They would also have to make sure that they kept their deals with the main dealer’s e.g. Sony, Panasonic.
Some resent trends that have increased competition for Dixons is Mobile Phones. Dixons used to only stock these because not that many people bought them, but now there are Mobile phone shops e.g. carphone warehouse, O2 also supermarkets are starting to sell these. Recent trends that have decreased competition is that some shops are not open on a Sunday s this will make more people have to go to their shop. Also the opening and closing times affect competition, when people work late sometimes they will only get to town late and only some shops will be open.
The pressure that this competition would bring to Boots is to keep their customers coming in to their Store instead of their competitors. If they did lose these customers their customers then they would lose profits and their business would struggle. They would also have to make sure that they kept their deals with the main dealer’s e.g. Max factor.
Some resent trends that have increased competition for Boots are new shops. Boots used to only be the shop that stocked all of the beauty products but new ones have come onto the market including the body shop and body care these could be either cheaper or more expensive than Boots. Recent trends that have decreased competition is that some shops are not open on a Sunday this will make more people have to go to their shop. Also the opening and closing times affect competition, when people work late sometimes they will only get to town late and only some shops will be open.
Some recent trends that Dixons have used to overcome this competition is to buy out their competitors. This will make them get big profits because then they will be able to start rivalries with their own companies, they have also tried to do this overseas but they have not managed to capture the market their yet.
Some recent trends that Boots have used to overcome this competition is to buy out their competitors. This will make them get big profits because then they will be able to start rivalries with their own companies, they have also tried to do this overseas but they have not managed to capture the market their yet.
