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Exploring business activity - Oxfam and Audi.

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BTEC NATIONAL CERTIFICATE IN BUSINESS UNIT 1 EXPOLRING BUSINESS ACTIVITY ASSIGNMENT 1 This investigation will contrast the different types of organisation; it will help develop your mind to the wide range of organisations that are available. I have chosen one private sector business, which is a type of business that is owned by an individual, group of people or shareholders. However companies owned by shareholders are often run by directors or managers who make decisions and control the business. Shareholders are people who fund the business and for their risk they can receive a reward such as a dividend paid out which is from the company's profit. I have also chosen one voluntary sector business also know as 'not-for-profit', which is a type of business that is created, organised and run by volunteers, and all the profit is given to the charity, the good cause or for the funding of the organisation such as the NHS, which is in the public sector. The government owns public sector businesses such as the DVLA. Audi is a strong business within the private sector; it is a strong contender in the competitive automotive industry. They are a German company with many years of experience who produces luxury cars. They are also part of the very successful Volkswagen group. ...read more.


Audi is in the tertiary, secondary and manufacturing sector as it manufactures the quality parts needed such as the engine and body parts to compile the car. The cars are then put through the manufacturing stage where controlled robotic arms assemble and paint the car. Human workers then paint and weld where the robots cannot reach. They then transport the cars to the dealers. Then sales team then use their persuasive skills to sell the product (cars) to the public and businesses. The purpose of this business is to make profit. Profit is the difference between revenue (money coming in) and costs paid out, such as fixed costs (rent). Profit could be used to increase growth of the company or higher development of their products for example increasing the amount of branches. Audi's products are sold to individuals, businesses and the government. The amounts of cars produced are in response to demand. The higher the demand the higher the profit as Audi can increase the price but this can be risky. In contrast Oxfam is in the tertiary, retailing sector as they sell donated products to raise money to create solutions for poverty and starvation. The volunteers work at the branches all around the world. The purpose of the businesses is to fund the charity and to pay for fixed costs such as rent and utility bills for the branches. ...read more.


People with an interest in a particular business or organisations are known as stakeholders. For example if a person likes Audi's cars and buys them, they are known as the customers. Customers are key stakeholders in the running of the business, as they expect nothing more than high quality cars and value for money. Companies need employees so they provide them with their livelihood to create a successful company for example Audi may give a discount to their employees. If their any problems for the employees they can ask for help from their trade union. The trade union's main job is to secure higher wages and better working conditions. However employers also need guidance when they have problems so they have the employers associations. They are equivalent to trade unions. Owners such as stakeholders are regarded as the most important stakeholder. As they are risking their finical life by setting up the company and like to see their share of the profit increasing. Suppliers are another key stakeholder, as they want steady orders and prompt payment to create a successful business relationship. Governments are in favour of new businesses as they create jobs and pay taxes. However local and national communities and pressure groups are an external risk to any company as something may be non-environmentally friendly. In conclusion to my investigation good stakeholders are the main bases of a good business. By Kishan Chamber ...read more.

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