For my portfolio, I was asked to do an assignment on two businesses. I have chosen Tesco, which is a public limited company and Vectone Gnanam Telecom, a private limited company.
INTRODUCTION:
For my portfolio, I was asked to do an assignment on two businesses. I have chosen Tesco, which is a public limited company and Vectone Gnanam Telecom, a private limited company.
Description of Tesco PLC.
Tesco is a private limited company founded by Sir Jack Cohen in 1924. The first three letters from the name of the tea suppliers name "T.E.Stockwell" and then joined these will his own surname this then formed the name "Tesco". He liked this name so much it became the company's own. Tesco is one of the United Kingdom's largest supermarkets They sell varieties of clothes, household items, gifts, kids items and food items. They produce their own breads and some product. They provide their own transport to carry their goods. They provide Internet services. Tesco provide car insurances and house insurances. Tesco have 1982stores all over United Kingdom and they have 164,500 shareholders.
Tesco is one of United Kingdom's largest supermarkets making 3millions profit a day. Tesco employs over 300,000. Tesco is a company dedicated to professional management of both people and property. Tesco is a caring organisation that endeavours to exhibit pride and excellence.
Description of Vectone Gnanam Telecom Ltd
Vectone Gnanam Telecom is one of the Telecommunication companies in London based at Regatta House 58-Marsh Wall London E14 9 TP. They provide Telecommunication facilities by having shops, which provide telephone service and telephone cards. They sell telephone cards worth £5, £10, and £20 etc. Vectone Gnanam Telecom provides local and international telephone service at reasonable cost as a limited company. They offer special rates to India and Sri Lanka they offer good rates to various parts of the world by providing different types of cards like Gnanam, India Direct, Call Lanka, Euro City, World Call etc which are associated with Vectone Gnanam ltd. The business previous names are Vectone Telecom Centres Limited and Gnanam Telecom Centre Limited. Vectone Gnanam liked to do their business at an international level because there is a larger profit outside the United Kingdom in addition they advertise their products through leaflets and they mostly receive payments in cash rather than credit. They have to pay before using the services in telephone cards like Vectone Gnanam Telecom while business like British Telecom they use to pay after the services Users can access Vectone services by the Internet or telephone services from their landline, mobile phone, PC or directly from a web site. Vectone Gnanam Telecom operates in around 60 countries around the world.
Task 1
Type of Ownership
Private Ownership
If individuals own the business rather than government is called private ownership there are six type of private ownership
. Sole trader: one person owns this type of business and he or she is responsible for the profit or loss of the organisation. If the business is successful he can keep all the profit if the business is unsuccessful the owner loses money. Sole traders have unlimited liability
2. Partnership: this type of business is set up minimum of 2 members to maximum of 20 members and they are responsible for the profit or loss of the organisation if the business is successful they will divide the profit according to investment, however if the business is unsuccessful they all lose money. Partnerships have unlimited liability.
3. Private limited company: in this type of business, the owner and family members have shares and the public can not buy shares. Shareholders are often directors they need to have 50% shares to have a control whether singly or together in this business there is a minimum of one shareholder and one director and they have limited liability.
4. Public limited company: this kind of business sells shares to the public and anyone can buy the shares. In this business directors are just salaried employees if a business want to go public they must have more then £50,000. They have limited liability
5. Franchises: a franchise is a way of owing or running a business without taking a risk of starting on your own. This kind of business has two responsible parties involved the franchisee and franchisor. The franchisee is the person running the business on a day- day basis and they keep most of the profit, but they have to raise most of the capital and pay initial licensing fees. The franchisor will often supply raw materials and give help and advice.
6. Cooperatives: cooperative is a business where there is no boss, the employees are owners and profits are divided equally and the business is run in the collective interest of the work force.
Public ownership
This sector in Britain relates to all the institutions and organisations, which are owned, and run by the state and are overseen by the government. It includes
. Central government: these are government departments, all dealing with different matters at national levels. A government minister oversees each department and it has own budget. Ministers bid for money each year and the amounts agreed forms part of the main governments budget and it is raised from taxes. It may be HM Treasury, Ministry of Defences, Department of Transport, Home Offices and Department of Health.
2. Local authorities: local authorities are responsible for local public services. The money is used to provide local government services are mainly from revenue grant, business tax, council tax and they provide services such as education, tourism and highways etc.
3. Public corporations: in this type of ownership, each industry is operated separately with a chairman and a board responsible for the day-to-day operations of the organisation. Annual reports are submitted to parliament and the accounts are published annually for scrutiny by the publish accounts committee. The organisation received subsidies and grants from the government but was usually expected to pay its way overall. Some of the main public corporations in Britain's are the post office, the Bank of England and BBC.
TASK 1A
Type of Ownership of Tesco
Tesco is a public limited company. Tesco is a supermarket where any person can buy shares. Tesco has 2291 stores around the world they have expanded over Europe and Asia. In Tesco the directors are just salaried employees. Shareholders own public limited companies like Tesco if the business is successful there will be increase in share value, which will increase overall the value of the company. If the business fails the shareholders may decide to sell their shares, which can lead to a fall in price this makes the company vulnerable.
Liabilities
The money owed by a business is called liability. There are two types of liability, unlimited liability and limited liability. The concept of unlimited liability means that the owner may also lose his or her personal possessions and be made bankrupt it is suitable for sole trader and partnership. The concept of limited liability means the owner can never lose more than they have invested no matter how much money invested.
Liability of Tesco
Tesco is a public limited company, which has limited liability. If the business fails in a public limited company the shareholders are not responsible for the debts of the company, the shareholders can never lose more than they have invested.
Type of Ownership of Vectone Gnanam Telecom Ltd
Vectone Gnanam is a private limited company, which started as a sole trader. They provide cheap Telecommunication services. When they started to sell only Gnanam cards when they have a demand in local and international market they thought to provide various kinds of customers from different countries. They provide euro city for Europe and America, call Africa for different countries in Africa, and India direct for India. Their main drawback is that phone cards can be duplicated, which will spoil their reputation.
Liability Of Vectone Gnanam Telecom
Vectone Gnanam is a private limited company, which has limited liability. If the business fails in a private limited company the shareholders or owners are not responsible for the debts of the company. The shareholders or owners can never lose more than they have invested. If the business fails in a limited company the owner does not go bankrupt, instead they go for liquidation, the bank and building society will check that the business they are dealing with is financially sound before lending them money.
Task 1B
Why does Public Limited Companies suit Tesco plc?
In public limited company like Tesco any person can buy shares. The shareholders in these companies are different from directors who are free to choose whether or not to own shares. Many directors are simply salaried employees. In public limited companies there should be minimum of two directors and two shareholders. They can be easily expanded as many thousand of people and organisations may buy shares in the company. Very large public companies can often operates more cheaply than small companies as they operate on economics of scales for instance, they can mass produce goods for sales and buy in bulk to save money. If the company is successful, the shares automatically increases this will increases the value of the company. If a company wants to go public must have more than £50,000 and must have a satisfactory financial track record.
In public limited companies like Tesco annual general meeting must be held each year and all shareholders must be invited. Shareholders who do not agree may raise objections or vote against a proposal made by the directors. The shareholder will expect to receive a dividend in return of their investment. They will also want their shares to increase value if the company has a poor year and the shares fall in value, they may be tempted to sell. This could make the company vulnerable to a take-over bid, as it is then relatively 'cheap' to buy. The shareholders must have little interest in the long-terms prospects of the company and simply be interested in quick returns on their investments while directors may be looking at the long-term security of the company. The original owners may lose most of their control over the company.
Why does Private Limited Company Suit Vectone Gnanam Telecom Ltd?
Many private limited companies like Vectone Gnanam Telecom started as a sole trader or partnerships. They are mostly in small-scale operations, often with family members running the business. A private limited company like Vectone Gnanam Telecom issue shares to the owners. Each share represent a share of the company equals one vote therefore a shareholder with more than half of the shares could always outvote the other shareholders. The person who has more than 50% of share have control on the business whether jointly by two people or singly.
Many limited companies have only three or four shareholders there is a minimum of one director or shareholders but there is no upper limit for shareholders. In limited company like Vectone Gnanam Telecom the shareholders or owners are often directors and they usually work in the business every day. Shares can not be sold to public. Shares can only be transferred with the agreement of all shareholders. This gives owners direct control over the business. Bank and building societies are more willing to make loans to a limited company particularly with good financial records.
A limited company is not allowed to trade under the name of an existing company as this likely to cause any confusion to the customers or suppliers. A limited company should work under the law. In a limited company the organisation has a separate legal identity and is known as incorporate. In a limited company they have to follow some procedures, they are memorandum of association, which relates to the structure of the company and articles of association, which say how it operates. In a limited company corporation tax is paid on the net profit.
Task 2
Industrial sectors.
A)
The three main sectors in the United Kingdom are
) Primary sector
2) Secondary sector
3) Tertiary sector
Primary sectors:
The primary sector deals with producing or extracting raw materials. This can be a natural resource. It includes farming, fishing, mining, forestry, oil and gas drilling.
Secondary sector
The secondary sector deals with manufacturing, processing, assembly and construction. Manufacturing is the process of turning raw materials from the primary sector into a finished product. This includes building construction, utilities like water, electricity and gas. Manufactured goods can be either capital goods or consumer goods. Capital goods are used to help make other goods or provide services. Consumer goods are two types of them they are consumables, consumer durables. Consumables are the product consumed, like pencils and food items. They are not consuming for a long time where consumer durables lasts for a long time like electrical items like television and radio.
Tertiary sector
The tertiary sector provides services to the public so it can also be called service sector. It divides into four sections they are
) Public services:
This includes personal services, defence, health, education and administration because they provide services to the public.
2) Financial services
This includes banks, building societies, insurances companies because they provide financial services.
3) Transport and communication
This includes transports companies like stagecoach for bus, British railways and airways for train and aeroplanes.
And communication facilities did by British Telecom.
4) Retailing, distribution, hotel and catering.
This includes services likes wholesales and retail trade. It includes shop, pubs, inn, fast food, and supermarkets.
My business belongs to both the secondary and tertiary sector.
Tertiary sector includes business activities such as retailing, distribution and transport. Tesco provides their own transport to carry their goods. Tesco provide retail services they sell household items, food items, kids items, and food items. In secondary sector they turn raw materials into finished products. Tesco produces breads, bags and labels their products.
Tertiary sector includes services like communication services Vectone Gnanam provide Telecommunication services and they produce their calling cards that have bought for use by customers so they come under both sector.
b) What other industries or business are in this sector?
. Public services.
It includes national and local government offices, which operate social security, health and social work such as public and private hospitals, nursing homes, vets, and social workers, the defence force such as home office, police, royal army, royal navy and royal air force, education department such as schools, colleges, universities and driving schools and personal services such as trade unions, employer organisation, news agencies, zoos, libraries, museum, dry cleaners, hair dressers, funeral directors, gambling and betting shops, theatre, amusement park and religious and political organisations. Examples of public services are new ham general hospital, New ham Sixth Form College, metropolitan police.
2. Financial services.
It includes banks, building societies, Insurances Company, credit agencies, pension companies and financial advisers. Examples of financial services are Barclays Bank plc, Nationwide Building Societies.
3. Transport and communication services.
It includes Stagecoach, British railways and airways, taxis, and bus and coach rentals because they provide transport services and various kinds of communication services such as Telecommunication services such as British Telecom and Argos Telecom, postal services like royal mail and courier services.
4. Retail, distribution, hotels and catering services.
It includes business like retail sales and wholesalers such as ...
This is a preview of the whole essay
2. Financial services.
It includes banks, building societies, Insurances Company, credit agencies, pension companies and financial advisers. Examples of financial services are Barclays Bank plc, Nationwide Building Societies.
3. Transport and communication services.
It includes Stagecoach, British railways and airways, taxis, and bus and coach rentals because they provide transport services and various kinds of communication services such as Telecommunication services such as British Telecom and Argos Telecom, postal services like royal mail and courier services.
4. Retail, distribution, hotels and catering services.
It includes business like retail sales and wholesalers such as Sainsbury, Asda, Safeway, Mcdonalds, K FC, Argos, Corner Shop, and Microsoft. In this sector it includes business like hotel, restaurant, bars and canteens.
c) Are those sectors growing or decline in United Kingdom?
United Kingdom employment according to trends
Sector
989
991
993
995
997
998
Secondary (%)
27.03
24.24
22.64
22.05
22.55
22.04
Tertiary (%)
68.96
71.16
73.09
75.62
75.9
76.45
United Kingdom output according to trends
Sector
989
991
993
995
997
998
Secondary (%)
31.16
27.48
25.86
26.76
25.73
25.45
Tertiary (%)
61.65
65.36
67.12
66.39
67.92
69.1
The secondary sector has not grown in the last ten years according to trends, but tertiary sector has grown steadily but there is a slight change in 1995 where tertiary sector declined a little while secondary sector grew.
Secondary sector is the sector, which includes many different types of manufacturing industries and construction. In this sector the employment, and output has shrunk and trend has shrunken in last 20 years many industries such as textile and ship-building industries has vanished due to cheap imports. Production of fuel has not changed while the production of computers, tobacco, and electrical and optical equipment has increased by 60%. Construction performed well in 1990 but there is fear it is temporary. Foreign companies today own many factories. In Britain many of their goods are sell in abroad. The manufacture is decline in Britain's according to trends.
Tertiary sector is growing compared to the other two sectors. Business and computing services have shown the most dramatic increases, while finance, communication and distribution industries also growing steadily. The financial business has expected to grow 2% from between 1997 and 2007. In the future the majority of the new jobs will be expected in education and health trends. In tertiary sector where growth is not predicated within transport services in the United Kingdom most people prefer to travel by car rather than public transport. Government should introduce measures to force private car drivers off the road. However, the communication sector has grown but employment is low due to increased computerisation. The growth of communication industry is in form of mobile phones.
e) Clearly explain how the growth or decline of a particular sector is affecting one of your chosen businesses. This should include whether the business is in line with the current trends or different from them. How is the business responding to trends or is influenced by them?
Tesco trends for last ten years
Tesco profit and sales for the year 1994 -2003
Tesco Earning per Shares for 1995-2003 (adjusted diluted)
Tesco dividend per shares for 1994-2003
The growth of tertiary sector has boosted people both in employment and output. Many people are interested in investing in the tertiary sector this enables public limited companies like Tesco to expand and make profit. Tesco is the leading supermarket growing at a higher level for last 20 years. Tesco employs nearly 300,000 people and have 164500 shareholders. The trends show that Tesco has expanded and make more profit than any other supermarkets in United Kingdom for the last ten years. The growth in secondary sector has shrunk both in employment and output but it has not affected businesses like Tesco because their core business is in tertiary sector. They used to make breads in bread factory and label some other product in their name.
The growth of tertiary sector has grown in output in communication business like Vectone Gnanam Telecom limited but influenced in employment due to computerisation but they have improved in services. Vectone Gnanam Telecom started their business as a sole trader and now expands their business over 60 countries. The employment and output was influenced in secondary sector but not affected business like communication business because there core business is in tertiary sector (communication services).
Comparison Between Tesco Public Limited Company And Vectone Gnanam Private Limited Company
Vectone Gnanam Telecom
Tesco
Type of ownership
Private limited company
Public limited company
Liability
Limited
Limited
Shareholders
They sells shares to the owners and minimum of two shareholders
They sells shares to the public and minimum of two shareholders
Core business
Communication services
Food and drinks
Directors
The owners are directors
They are just salaried employees
Sectors
They comes under both secondary and tertiary sector
They comes under both secondary and tertiary sector
Number of directors and shareholders
There is minimum of one share holders and one director
There is minimum of two directors and two share holders
Access to borrowing
It's not easy to borrow the money
It's easy to borrow money
Raising capital
It is difficult to raise capital because the shares can not sold to the public
It is easy to raise capital because the shares can be sold to the public
Accounts
They are private between their accountants, the owners and the inland revenue and their accounts are audited by the accountant
Specific accounts must be prepared each year and these must be audited and published
AGM
Shareholders are invited and held each year
Shareholders are invited and held each year
Continuity of ownership
The owners never lose control
The owners may lose control
Task 3
A) Describe the activities of the two businesses you are investigating for this unit.
Tesco
Tesco's core business activity is to sell food and drink but they sell clothes, household items, gifts, flowers, kids items, and food items. Tesco have coffee shop, optician, pharmacy, photo processing, automatic car wash and jet wash. Tesco manufacture their own bread, bags and some other products under their name. Tesco provides their own transport to carry their goods and Tesco provides communication services such as Internet and selling mobile phones. Tesco provide banking services at low rates and is providing insurances as well.
If the core business is not successful in Tesco then there business is in serious trouble while if there is unsuccessful in business like banking, insurances etc it does not going to affect them deeply.
I investigated the stores in Beckton about their sales of food and non-food and from the information of the store I came to know at present they are selling 40% of food and 60% of non-food and they are trying to achieve 50% in food and 50% in non-food.
Resources used by Tesco to carry out their activities
Refrigerators
Tesco use their own refrigerators to keep their products at standard level without the refrigerator they can not sell frozen food and they have a cold room to keep their frozen food with a temperature more than -20C.
Scanner
Tesco use scanners to provide quicker services by using barcodes the introduction of barcodes made work easier for Tesco they can find easily about the stock they sold and the remaining stocks they have and it cut the cost of recruitment of employees.
Baler
Tesco use baler a cardboard crushing machine to crush cardboards
Cleaning trolley
Tesco uses cleaning trolley which containing various cleaning material maintain in a convenient position for removal of spillages on the shop floor.
Coding guns
Tesco use codinguns, which is a hand, held machines used for printing and fixing data codes
Compactor
Tesco use compactor a machines that compacts plastic, cardboard and waste products.
Paper
Tesco use consumables paper for the till rolls and consumables plastics for the carriers bags and product packaging
Forklift
Tesco use forklift trucks to carry their products
Pricing guns
Tesco use pricing guns to price the products on the sales floor.
Tannoy
Tesco use Tannoy for public address system. Tesco use ovens in the bakery to produce bread.
Switchboard
Tesco uses switchboard to know about the profit and loss in the business.
Club card
Tesco club card contains the details of the product purchased by the customer and this will help them to know which product customer is buying and which has demand with them.
Future net
Tesco use future net to contact other Tesco store by entering the number of the stores not calling the telephone this will allow them to call freely with the other Tesco stores
Staff
Staff is the vital resources in any business they recruit staff for different kinds of jobs without staff they can not do any kind of business. Tesco employs many peoples for different kinds of jobs such as security guards, cashiers, shelves fillers, managers etc.
Advertising resources
Tesco uses television, newspaper, and leaflets to advertise their products or vacancies.
Internet
Shopping is done more quickly in Tesco on Internet. Tesco adverts their product through brochure and Internet and make people well aware of their new offers for their customer. Tesco advert their product in Internet let to know the customer who using Internet shopping. Tesco is the largest online grocery retailer in the world nearly 4000 customers use Tesco's online service everyday, generating yearly sales of £125 million. Tesco has more than 250,000 registered Internet customers.
CCTV cameras
Tesco use CCTV cameras to monitor the premises of the shop.
Pdcu
Tesco uses pdcu to confirm the prices of the product so they trade equally. They should print the price of the product for which they according to law.
The process of producing bread in Tesco
Tesco produce their own breads in their bakery. The flour needed for Tesco to produce bread is brought from mill in road tanker in large quantities and it is stored in a sila to use later. The sila is attached to flourlaft and the flour is transferred when it is needed. The sila is carried out into the next stage the mixing room where they use a large mixing bowl, Fat, yeast and water are added through special mixer called artofex mixer and the mixing takes 20 minutes time and the dough is sent to bake. The bread dough is divided into different type of weights and then put onto breadboards to recover and it takes eight minutes time afterwards the bread dough is moulded into different shapes and sizes. The dough has to recover again it is placed in the baker a warm moist cupboard called a proover it will take 30minutes and the yeast will raise once the yeast raises it then goes to oven for about 30 minutes to bake then the bread is taken out it is placed on rack cool. Then bread is sliced and packed for customers.
Tesco produce their own bags to help customers to carry their goods. Tesco provide good services to their customer with a title 'little helps' by providing various kind of training to their employees such as how to use scanners quickly and easily and they use some headers to help customers to know where the product has been shelved if the customers can not able to find the product the staff will help them. In Tesco they provides trolleys for customers to purchase product and they allows them to carry from till to free car parking area of customer.
Vectone Gnanam Telecom
Vectone Gnanam Telecom core business activity is to sell phone cards and providing communication services and they were not interested in any other business.
Vectone Gnanam Telecom use their telephones in their shop for their customers to call their destinations and the telephones are connected to computer to know the duration of the call. Vectone Gnanam Telecom use poster to advertise their products, they also used to fix the poster on their shop premises and on the premises of business customers. Vectone Gnanam Telecom considers staff as vital resources because they are the person operating the business. In communication business the computer do the most of the work and they used to operate it.
The method of producing cards in Vectone Gnanam Telecom
Vectone Gnanam Telecom used to produce telephone cards at their head office in canary wharf and harrow in London with a special printing process they used to print the cards separately for £5,10 and 20 and then they activated to the main frame computer. There method of choosing unique pin number is unknown due to security reason. The cards used to expire within 45 days after the first use or 1 year after the manufacturing date of the card.
The method of producing cards in Vectone Gnanam Telecom
Special printing paper is purchased
Special printing paper is installed in the machine
The chief programmer installs the programmer in the printer
The card is printed
The card is activated to the mainframe computer
The agents purchase the card
Agents distributes to the wholesales customers and sole traders
Purchased by the peoples
The process used in producing services
Vectone Gnanam Telecom used to produce their own cards and they have a batch number and pin number on their cards. The pin numbers and batch number are activated through a computer. If there is a theft on any cards they use batch numbers and stop their services and they use pin number to make customer know about their credit in the cards and time remaining for their call. They used to advertise their product thorough poster to their customers.
They sell cards directly to the public by having shops and they sell even to sole traders business and they pay through commission on it. They sell telephone cards thorough Internet and the customer used to pay them thorough debit or credit card.
The scale and scoop of the tesco
According to trends in Britain in 1998 there are 1202 large stores (10,000-24999 sq. feet) and 1092 super stores (more than 25000 sq. feet) in Great Britain. Tesco owns 210 stores out of 1202 large stores and 277 out of 1092 super stores.
Tesco plc is a United Kingdom - based global supermarket chain with annual revenues of £20 billion. Tesco is also the world's most successful and profitable online grocer Tesco is the number one retailer in the United Kingdom with 1982stores. I investigated Tesco plc branch at Royal Dock Road, Beckton, London, E6 7FB know about their scale of business. It opens 24 hours and they owns a off license, baby changes, coffee shop, crèche, optician, pharmacy, photo processing, toilets, chicken counter, deli counter, fish counter, meat counter, automatic car wash, jet wash and petrol station. The store is located nearly an area of 84,000 sq feet and the stores covers an area of 100,900 sq feet by length and width.
The scale and scoop of Vectone Gnanam Telecom
I investigated MR Khan at Vectone Gnanam Telecom in High street north in East ham and he is the only one person working in the shop and they sell only Telecom cards. Vectone Gnanam Telecom is well established in east ham because most of the sole traders sell telephone cards of Vectone Gnanam Telecom. The store is located with an area of less than 1000 sq feet.
B)
The core business activity of tesco is selling food and drink and household consumables to the general public. They are well known in United Kingdom because in United Kingdom many supermarkets such as Asda, Sainsburys, and Safeway etc are involved in the same activities as the business and are involved in providing the same services. The business with the activity of selling food and drink and household consumables is increasing steadily in the UK.
Vectone Gnanam Telecom core business activity is to provide communication services thorough telephone cards is less known in United Kingdom but they are well known in London. The people using telephone cards in London are more than the peoples calling from the rest of the United Kingdom.
The resources such as refrigerators, cool room, baler, cleaning trolley, fork lift, coding guns are common in United Kingdom many super markets in United Kingdom such as Sainsburys, Asda, Sommerfield using the same resources as tesco.
The resources such as tills, computers, and poster are common in United Kingdom because supermarkets such as Argos and many sole traders used to use the same resources used by Vectone Gnanam Telecom
Tesco is a supermarket doing their business at higher level and their trends affected in many ways such as competitions, legislations, stakeholders and environmental issues. Tesco has to ensure that they are working under laws, they are providing good services than their competitors and the stakeholders and the environment is not affected by them.
Competition
Tesco has many competitors such as Boots, Safeway, and Asda etc. Safeway lodged a complaint with the ASA to contest a claim on Tesco that it was 14% cheaper than them on food and drinks. But the ASA upheld Boots' complaint against Tesco, which included a claim that it was 16% cheaper than Boots on shampoos and conditioners.
The American company Wal-Mart, well known for its aggressive methods of conquering supermarkets entered United Kingdom in 1999 by buying Asda, the chain that already has the highest average store size of all British supermarkets. In order to keep up with the competition with Asda Tesco bought an entire shopping centre in Coventry with which to experiment with Wal-Mart who already has beaten Safeway and now standing next to sainsburys.
Legislation
Tesco is a supermarket undergoes many laws Tesco imports food and drinks from many countries and they have to undergo many laws. The British plan to protest against Tesco for paying less for their produce and Wal-mart planned to use this static's against Tesco.
Tesco lobbied successfully against government plans to tax the car parks out of town shopping centres in 1998. In May 1998 Tesco donated 12 millions to the millennium dome.
Tesco uses pdcu to confirm the prices of the products that they sell in the checkout because it is illegal in Britain to print a wrong cost on the product and to sell at any other prices in the checkouts.
According to children's and young person act 1991 it is illegal to sell tobacco to customers under 16 and they cannot sell alcohol to the customers under the age of 18.
Environmental issues
As Tesco is expanding more it has to ensure that they are not spoiling the environment. Tesco used to recycling 55,000 tonnes a year of packaging waste; 350 recycling facilities at stores; cutting packaging waste by 20%; cutting energy use and Carbon dioxide by 20%; removing all CFCs from refrigeration systems. Tesco also plays a part in being environmentally friendly by changing £1 for bags for life to customer so that instead of throwing away the bags they receive from shopping they can buy the bags for life and can reuse it over and over again instead of throwing it away. Tesco recycles their waste product without harming the environment
Stakeholders
The share holders in Tesco want their company to perform well as well they do not want to spoil the reputation of the company. If Tesco is not performing well the shareholders will not buy shares in Tesco. If shareholders decide to sell their shares this will make Tesco decline and the employees and the manager may look for a job, which is secure, but Tesco is making more profit than ever in the last ten years and expanding more in last 2 years so the shareholders are interested in buying shares. Tesco provide benefits such as shares to their employees and good pension pays and many other benefits to their employees and manager to retain them.
Vectone Gnanam Telecom is well known to the ethnic minorities race in the Britain such as many Asian and African peoples who live in Britain use their services to call their relations at home. They are not known all over the Britain because they are not expanded or not opening stores in the United Kingdom. The resources such as computer and tills are common in United Kingdom because many supermarkets such as Argos, b&q etc are using it.
Vectone Gnanam Telecom runs their business at international level but their business is not so affected compared to Tesco in legislation, stakeholders and environmental issues because Tesco core business is to sell food and drink while Vectone Gnanam telecom provide Telecommunication services and there business not expanded and they are running their business in London and they do not have more shop when you compare London to the rest of the United Kingdom. Vectone Gnanam Telecom has to undergo health and safety law for their employees during an accident.
The shareholders in Vectone Gnanam Telecom does not affect their business as much as in Tesco because Vectone Gnanam is a private limited company in a private limited company the shareholders are the owners and they used to work in the business. The employees and the manager working in Vectone Gnanam Telecom are low because computer does most of the work.
Vectone Gnanam Telecom is mainly affected only by their competitors like Voice Telecom, Euro call, Sigiri and Voicenet. Vectone Gnanam Telecom has to ensure that they offers rates similar to the competitors and also similar services to the customers.
Vectone Gnanam Telecom is affected in term of legislation they have to ensure that the company is working within law and the health and safety issues are met within the stores.
Comparison of the business activities of Tesco and Vectone Gnanam Telecom
Business activities
Tesco
Vectone
Resources
Tesco use scanners, computer, refrigerator, baler, coding guns, fork lifts and telephones etc
Vectone Gnanam Telecom use only computer and tills
Core business activity
Food and drink
Telecom products and services
Business
Tesco used to provide many kind of services such as banking, communications services such as selling mobile phones etc
They used to only provide communication services.
Product they produce
Bread and bags
Telephone cards
Scale and scope
The scale and scope of business is high
The scale and scope is not so high as Tesco
Employees
Tesco used to employees more than 400 employees in a Beckton.
Vectone employees only on person in east ham
Task 4
A)
Location: location refers to where the business is located choosing the right location is the difference between success and failure.
Factor influencing location
Supply of labour and Local skills: all organisation need to employ staff. They will need to locate near to densely populated areas. Workers may not be keen to travel long distances from and to work and the organisation can also avoid the transportation cost. Some organisation that require large amount of labour may choose to locate in areas where unemployment is high because workers may willing to work for lower wages.
In some part of the country skills are a tradition. If they have particular skills they need less training. For example if you want to make boot and shoes you can have a factory in Northamptonshire you can not get skilled workers at competitive wages. If you want to set up a large numbers of computer and electronics companies in United Kingdom then you can set up in silicon valley in Cambridge where there are many potential employees located nearly with specialist skills and already trained by other organisations. There are two aspect of labour. They are labour intensive and capital intensive. Labour intensive is when you require high number of staff to do work for examples schools while capital intensive is when you require high use of machine and technology to do the work for example modern electricity generating plant.
The cost of premises: the forces of demand and supply determine the cost of premises. A large factory need to locate on cheap land for example fords at Dagenham at Essex occupies 500 acres of land choosing among other reasons because it is so cheap while for a lease for a large store (60,000 square foot) in Oxford street was sold for £12 millions in 1997 because Oxford street is a primary site. In Britain many Local authorities offer 'packages' to encourage businesses to locate to their area. They may offer financial help for large organisation and reduce rent for small enterprises.
Financial help from the government: organisations may be offered financial help by both local and central government, in an area of high unemployment in order to create jobs and income. For example local authorities may offer rent-free premises or reduce the business rates for a period of time. Central government also offer special grants to pay for new machinery and to help pay for workers training and to carry out government works. Regional selective allowance is the main form of such aid in Britain. It is provided thorough the Scottish executive, the national assembly for Wales the Northern Ireland office and eight regional development agencies in England. In United Kingdom nearly 250,000 business getting help from the government.
In 1999-2000 regional development agencies has a total budget of £1 billion to spend in Britain to
> Encourage economic regeneration
> Promoting business efficiency, investment and competitiveness
> Promoting employment
> Developing and improving workforce skills
> Improving the environment
This financial help is divided into three types they are
Tier 1: firms in tier one regions can apply for grants up to 40% of the cost of the project. The areas included in tiers one are Merseyside, south Yorkshire, Cornwall, west Wales and the valleys. Northern Ireland is included as an area of exceptional concern.
Tier 2: firms in tier two regions can apply for grants up to 20% of the cost of the project. The areas included in tiers two are highlands and islands area of Scotland, Wales and England and parts of the East and West Midlands, the northeast and West Yorkshire and the Humber, East Anglia and London.
Tier 3: it was introduce to provide assistance to small and medium enterprises employing less than 250 peoples. This area includes local authority districts with high unemployment and rural development agencies.
Transport link for suppliers and distribution: transport is an important consideration for any firms. Raw materials need to be transported cheaply and easily to the customers and suppliers. Large super stores, supermarkets such as Sainsburys, Tesco, and large manufacturing industries locate close to the motorway because all of them need good transport facilities to operate profitably. Heavy goods are often transported better and cheaply some use rail, canal and rivers on the European mainland to transport them easily so they locate near to them. Business, which runs their business at international level, locates near seaports and airports so they can export and import more efficiently and cheaply.
Being near to suppliers and natural resources
This will help a business to avoid cost on transport. Sometimes business need to locate near to suppliers when their items are heavy and costly to transport or they need a item which is available only in selected areas of the country for example if you want to set up a steel production business then Sheffield is the best place for you because of nearby deposit of coal, iron and steel which cut the cost of transport. If you want to set up a paper mills you should find a place near water because paper cannot be produce without water.
Being near to rival firms
Most of the business likes to locate near their competing firms this is an advantage for their business for example when you look at the sea front in any famous British resorts such as Brighton or Blackpool with hotels and the Chinese restaurants are all together at China town this make people to taste different type of food but this can not match all kind of business. For example in the case of theatres, bowling, theme park, garden centres.
Nearness to customers
If a business want to be a successful they should locate near to the customer. Many supermarkets are located in highly populated areas and the petrol stations are located on main roads while business like industry there is no need to locate near to the customers because the transport cost is cheap and the customers are all over the country.
History and tradition
Many firms are located where there are started because of history and tradition for example Joseph Rowntree had started chocolate production in York because he want to live there and he did not want to move from there some business remains where it is due to tradition for example Lincolnshire is renowned for many horticultural firms and growers. This is partly for geographic condition such as climate, fertile soils and proximity to ports, such as Felixstowe, where flowers and bulbs are imported from continent.
B)
The factors that affecting the location of Tesco
Nearness to customers
The cost of premises
Being near to rival firms
Transport link for suppliers and distribution
The factor that affecting the location of Vectone Gnanam Telecom
Nearness to customers
The cost of premises
Location of Tesco
Tesco is a global supermarket, which has 2291 stores all over the world and they have more than 1982stores in United Kingdom. Tesco are mostly located nearly to customers otherwise the customers do not come to them and Tesco stores are located an average of 5 miles near to their customers. Tesco has located near to motorways and the places with good transport links so they can transport goods profitably to their stores and Tesco has several stores around the country where they hold bulk supplies and then they deliver individually to their stores Tesco also locates near to their competitors to maintain their competitions and make people to compare their product with their rivals. Tesco bought an entire shopping centre in Coventry to keep the competition with Asda. The cost of the premise of Tesco is high due of demand of the premises there is a high demand for the places due to its location of nearness to the customers with car park facilities and if it has a good transport links. Tesco wants their suppliers to deliver the raw materials in time so they can produce good services to the customers so Tesco choose their location nearness to their customers and they want their raw materials such as flour need to produce for the bread in time. Tesco also locate nearly densely populated areas so they can have more customers and labours.
Tesco choose the present location were near to their customers and to near suppliers so they planned open more stores so they can be nearer to customers, suppliers and near to their rival firms.
Number of stores
Sales area (m sq feet)
News stores opened in this year 2002-2003
New stores planned to open in 2003-2004
Country
,982
21.8
,265
59
United Kingdom
77
.7
6
Republic of Ireland
53
2.5
5
5
Hungary
66
3.4
20
5
Poland
7
.6
2
4
Czech republic
7
.4
4
4
Slovakia
52
4.8
7
6
Thailand
21
2.1
7
8
South Korea
3
0.3
Taiwan
3
0.3
3
Malaysia
Tesco opened 1325 stores in 2002-2003 and planned to open another 99 stores in 2003-2004.
The opening of the news stores and recruitment of additional employees made Tesco to serve the customers better than ever and it help to reduce the cost of the travel time to their stores by opening new stores it has also helped Tesco to cut the prices on their product because they transport their product from their supplier easily and they have high purchasing power so they buy their items in bulks for their stores and it enables them also closer to their rival firms.
Tesco is not the same Tesco that was founded by Sir Jack Cohen in the Leeds market stall it has grown and now become the second super market in the Europe's on term of sales.
I investigated a store in 1 ARMADA WAY ROYAL DOCK ROAD, BECKTON, E6 7FB which was opened on 16 September 2002 and I met Kate Madaza to know the reason why they locate there.
According to her Tesco is located in Beckton because there will be nearly 100,000 families by 2010 so it will be a huge residential area and there is also a plan from the government to construct a bridge called Thames Gateway to connect North and South Woolwich Tesco is not concerned about locating near to their suppliers because there suppliers are all over the world so they transport different kind of product from different parts of the Britain. Tesco transports 3500 deliveries a day within the organisation. Tesco used to transport their product in four different ways they are main field, top up, night field and fill up. From this interview with Kate Madaza I came to know that Tesco want to locate nearness to the customers with a good transport link. Tesco store is located in area of 84,000 sq feet and the stores are located with an area of 100900 sq ft of height and width so the cost of premise is also high.
Location of Vectone Gnanam Telecom
I investigated the Vectone Gnanam Telecom store in East Ham at 180 High Street North in east ham. Vectone Gnanam Telecom is located in area of within 1000sq feet.
Vectone Gnanam Telecom is located nearly to their customers because they used to provides communications services by selling telephone cards and by having a shop if they are not nearly to their customers will not come to their shop to use their phones as well to buy telephone cards according to Vectone Gnanam Telecom nearness to customers is very important than anything. Vectone Gnanam Telecom, which started their business as a sole trader, now expanded as a private limited company and there is influenced by the cost of the premises due to the demand of the premises in that area.
Tesco
Local employment trends
Tesco does not want to change their business position and they are already opening new stores so they can be very close to their customers and Tesco expanding and creating new jobs all over the world Tesco has created 60,000 jobs in the last year and Tesco already team up with esso and opened many new shops and created new jobs and they have changed the total value of their customers.
The opening of new stores has created many jobs all over the world Tesco employed nearly 260,000 employees in 2002 an increase of 20,000 in a year and Tesco now employees more than 300,000 employees all over the world.
I investigated a store in Beckton to find out know about the local employments trends in the area so, I met Kate Madaza (stores personnel manager) of Tesco and I came up with that Tesco store in Beckton has an agreement with government to give 50% of jobs those who are off the jobs for a long periods and in social benefits.
Consumer/customer pattern
The opening of new stores and high purchasing power made Tesco to cut the cost of the prices and made a good value for their customers. The opening of the new stores made them to go near to the customers. In Beckton they are more than 17000 peoples living there and Tesco serves more than 8000 peoples every day in Beckton. Tesco stores in Beckton is not only used by the people of Beckton it is also used by the peoples in the local areas. The opening of the new stores attract customers of barking Tesco and the customers of Asda in Beckton and Tesco working to become an destination shop (attract customers from any where)
Vectone Gnanam Telecom
Local employment trends
Vectone Gnanam Telecom does not provide employment as Tesco because they provide communication services in communication business most of the work is done by computer while Tesco is a supermarket employs more staff in counters, filling the shelves and security guards etc. in investigated the store in east ham and I was surprised to know that only one person is working in that shop.
Consumer/customer patterns
Vectone Gnanam Telecom had a made tremendous change in East Ham because in East Ham most of them are minority race and people from different countries who settle here. The sole traders in East Ham mostly used to sell Vectone cards and they have a demand for it. In East Ham there are more than 45000 peoples but Vectone used to serve less than 1000 peoples in a week because sole traders in manor park such as Seelan enterprises, KSP, Sakthi cash and carry, Judiya enterprises used to attract customers with special offers and the peoples doesn't spend more money in communication when compare to food and drink.
Location of Tesco in Beckton
Location of Vectone Gnanam Telecom
Comparison between Tesco and Vectone Gnanam Telecom in terms of location
Tesco
Vectone Gnanam Telecom
Location
It is located mainly nearness to the customers
It is also located mainly nearness to the customer
Employees in a store
Tesco employ more than 400 people in beckton.
They employ only one people in a store
Transport
They are located nearly on a high way road so they can transport cheaply and easily
They are not bothered about transport because the telephone can is lighter and they be transported easily
Customers
The percentage of customers is very high when compared to communication business
The percentage of customers is very low when compare to retail business
The cost of premises
The cost of premises is high because they need a big area to open a shop and the location is affected by many factors
The cost of premises is low when compare to Tesco because they can open a shop in a small area and they do not affect by many factors
Task 5
Stakeholders: stakeholders are the people or organisation that has an interest in or in influences of the actions or performances of the business. Stakeholders are the person who has an interest in or influences the way of the business operates.
There are different types of stakeholders they are
Customers: The customers want to know how the business is doing everyday
Employees and the manager of the business: They want to know their business is secure and make profit
Shareholders: The shareholders want to know the company is doing well and making profit and paying them good dividends on time
Local community: The local community want to know that no business is affecting the environment and it's surrounding
Government: government want to know that all the business is paying taxes and obeying laws.
Suppliers: they want to know there business is secure and they are paying on time.
Stakeholders Of Tesco
Customers: Tesco want to ensure that their customers has purchasing power to pay for the product or the services sold the business and the prices at which goods and services sold.
Employees and manager: Tesco employees should be treated fairly and equally and the manager should provide employees with training to provide good services to the customer.
Shareholders: Tesco shareholders want their company perform well and they do not want them to spoil their reputation
Local community: Tesco core business is to sell food and drinks and Tesco could guarantee that their own brand animal products did not come from animals fed on a GM diet.
Government: Tesco is a global supermarket has undergoes many laws such as health and safety laws and have to pay tax on time.
Suppliers: Tesco's suppliers are interested in whether the business is stable and is able to increases their sales.
Stakeholders Of Vectone Gnanam Telecom
Vectone Gnanam Telecom is a private limited company has been influenced by stakeholders they are
Customers of Vectone Gnanam Telecom want them to introduce new offers and clear connection to their destination as fast as possible.
Employees and managers want their company is doing well and make sure the business is secure and to treat them fairly and provide them with training.
Vectone Gnanam is a private limited company so the Shareholders or owners are mainly concerned about the profit and the performances of the business and they will consider about the secure of the business while Tesco is a public limited company where shareholders are concerned about the profit of the company.
Vectone Gnanam Telecom has to pay tax and have to obey laws and government were concerned they are providing employments in unemployment areas as well.
The suppliers of Vectone Gnanam Telecom also interested that their business is stable so they keep on purchasing from them.
B)
The Interest Of Stake Holders In Tesco
Customers
Tesco consider customers as their boss and there was a demand for the their product from the customers. Consumer demand is able to influence the following decision of Tesco in terms of how much to produce or to reduce the price of the product. Tesco serves more than million of customers in a day.
Customers of Tesco wants Tesco to make more profit and they like to expand worldwide, They want Tesco to be best retailer in the world and they want Tesco to expand in Asia and they want Tesco to overtake carreflour in terms of sales in Europe and be the number one retailer in Europe.
They want Tesco to reduce the prices on their product and to open more store so they can purchase easily and customers want to provide them a good services and mystery shoppers influence Tesco they used to come as a customers and purchases their product and they check their quality on their product and services and customers also influences the business of Tesco by giving advice to Tesco on goods sold and commenting on the services by using the customer commenting cards. Tesco considers customers complaints as serious and they take proper actions against it.
Employees and manager of Tesco
Employees and manager who work in Tesco is a key stake holders Employees who works in Tesco are depend on Tesco for their livelihood on the income they earn. The employees and manager of Tesco want them to be treated fairly by their superiors and they want to know the business is secure because if the business fails they may intent to lose the job but the employees are not concerned about this at present time because Tesco making more than profit than ever in the past two decades. The employees want their Tesco to pay them good benefits such as pensions, good salary and sick pay. The employees and manager expects Tesco to provide flexible working hours and good working condition. Tesco want their employees and manager to do not affect their business so they pay provides shares to their employees according to the years they worked for them and they pay bonus in term of profit to their employees.
Shareholders
Shareholders have an interest in the business because if the business is not performing well then their dividends will be low. The shareholders of Tesco want Tesco to make more profit and expand worldwide, they expect quick dividends for their money they invested and they do not want to spoil their company names. Shareholders expect the value of shares should be raised.
Local community
The local community want Tesco to do not affect the environment and they expect Tesco to produce the product without harming the environment. The local community expect Tesco to deliver their goods without harming the environment.
Government
Government expect Tesco to pay tax and business rates in time because the government is totally reliable on the taxes and revenue so they can invest in schools, college and improve many services in the country. Tesco pay more than 300 millions in a year.
Government want Tesco to open more stores so they can provide more jobs in Britain so they can reduce the amounts of peoples in job seekers allowances.
Suppliers:
The suppliers of Tesco have to be aware of their competition, as they want to be the main suppliers to their company. Tesco's suppliers are interested in whether the business is stable and is able to increases their sales
The Interest Of Stake Holders In Vectone Gnanam Telecom
Customer
Customers of Vectone Gnanam Telecom want them to provide goods services and they want Vectone Gnanam Telecom to provide good offers and better rates and they want them to give the exact minute the cards says and a quick line with the destination.
Employees and manager
They want their business to perform well and make sure the job is secure and they want their superiors to treat them fairly. The employees of Vectone Gnanam Telecom expect their employers to pay them a fair salary and good benefits such as pension and sick pay.
Shareholders
Shareholders in Vectone Gnanam Telecom want their company to make more profit and they want their business is to be secure because Vectone Gnanam is a private limited company and the shareholders are the owners of the company and they used to work in the business and they do not want to spoil their reputation in their neighbourhood.
Government
Government expect Vectone Gnanam Telecom to pay taxes and revenue on time and they may concern about the health and safety of the employees.
Suppliers
The suppliers of Vectone Gnanam Telecom have to be aware of their competition, as they want to be the main suppliers to their company. The suppliers of Vectone Gnanam Telecom also interested that their business is stable so they keep on purchasing from them.
C)
Expectation of stakeholders in Tesco
Tesco stakeholders expect Tesco to open more stores and make more profit and to increases their sales. Tesco responded to them and make more profit than ever in the last two decades and expanded all over the worldwide and they opened more than 1000 stores in this year and they cut their prices on their product according their customers and Tesco created more jobs than any other super markets in Britain. Tesco responds to their stakeholders and made many changes. Tesco recycles their product in a good way and avoid 90% of pollution and Tesco produce their product without harming their environment and Tesco pays a revenue tax of 300 millions a year and they provide job for more than 300,000 peoples. Tesco suppliers expect tesco to increases their sales and purchases more from the m and tesco responds to their suppliers and increasing their sales in the last two decades.
Expectation of stakeholders in Vectone Gnanam Telecom
Stakeholders of Vectone Gnanam Telecom expects there company to make more profit and increases the sales and to reduce their prices, to make profit and work within law and Vectone Gnanam Telecom reduce the price of telephone cards by 30% percent to make the business more secure and to attract more customers and they are providing a better services than ever now they allow customers to call their destination thorough internet and telephone. Vectone Gnanam Telecom obeys the government laws and they work under it. The suppliers of Vectone Gnanam Telecom expects them to increases sales and to purchases more and Vectone Gnanam Telecom respond to well and they are increasing their sales.
D)
Comparison of Influences of the stakeholders
The interest vary of stake holders according to the ownership and business activity
The stakeholder's interest may vary according to their ownerships and business activity. For example Tesco is a public limited company where shareholders are the owners but the interest is different when you compare to the owners or shareholders of private limited company. The shareholders of Tesco want there company make more profit than any other factor while the owners and shareholders of Vectone Gnanam Telecom want their company to survival than making their profit. If the business is not successful in Tesco the shareholders may intent top sell their shares further depressing while shareholders in Vectone Gnanam Telecom tries to find the solution and try to over come it.
Tesco's core business activity is to sell food and drink but they sell clothes, household items, gifts, flowers, kids items, and food items. Tesco have coffee shop, optician, pharmacy, photo processing, automatic car wash and jet wash. Tesco manufacture their own bread, bags and some other products under their name. Tesco provides their own transport to carry their goods and Tesco provides communication services such as Internet and selling mobile phones. Tesco provide banking services at low rates and is providing insurances as well.
Vectone Gnanam teleocm core business activity is to provide Telecommunication services.
Tesco is a global supermarket providing various kind of services while Vectone Gnanam Telecom provide only communication services and Tesco core business activity is to sell food and drink so they are affect by stakeholders such as local community. Local community want to know that Tesco recycles their waste product in a good way without harming the environment and the quality of their product in the store. Local community also interested that Tesco produce the product without harming the environment. While Vectone Gnanam Telecom is not affected by local community because their business activity is concerned with communication services.
The common interest of stakeholders in business
The customers in Tesco and Vectone Gnanam Telecom want them to reduce the price of the products while employees and manager of Tesco and Vectone Gnanam Telecom want their business to perform well and make more profit and they want to make sure the business and the job is secure and they want them to treat fairly. The government want them to pay taxes on time and want to them to create jobs in the country. The suppliers want them to increases their sales so they keep on purchasing from them.
The stakeholders like customers, employees and government have common interest in both businesses the benefit for the stakeholders is same in both kind of business.
Which Stakeholders influences the business than anyone
Customers
Customer's influences the business than any other stake holders because if the customers stop purchasing there they can not even get back the money they invested and the business may lose everything. If the customers do not buy any thing the shareholders will not like to invest money in the business.
Shareholders
Shareholders are the person next to customers influences the business. Share holders is the person who invest the money in the business if they did not enough in the business the business does not have the high purchasing power to but the stock and they can not expand and it is also difficult to make more profit.
Suppliers
The suppliers affect the business if they fail to deliver the product on time and this will make the business to lose customers and cannot able to produce their best services to their customers.
Employees and manager
Employees and manager are the person influences by making strikes if the employees strikes there is no one to serve the customers and they may intent to lose the customers to their rivals.
Government
Government may influences the business by making them to pay the tax on time but they do not influences the business as much as customers or shareholders because they will concern about the employees who works there and the benefit they have to pay for them if they lose the job.
Local community
Local community influences business like Tesco by striking against them and making complaints. They also an important person influences the business by spoiling the reputation and sometimes making customers to do not purchase product from them.
E)
Conflicts of interest of Stakeholders in Tesco
The customers in Tesco were interested in the prices of the product and they like the price to be reduced because they are going to benefit from it while the local community were interested in environmental issues because if they do not recycle the product it is going to affect them. The shareholders expect them to make more profit so there will be an increase in the price of the share value while employees and manager want their company to perform well so that their job will be secure and they want to be treated fairly. They cannot tolerate bad treatment because they are going to spend an average of nearly 40 hours in the stores and want them to pay them good benefits. The government expect them to perform well so they receive their tax and there will be job vacancies for the people who are out of jobs so they do not need to support them. The suppliers expect them to make profit and increase their sales so they purchase more from them.
The interest and the benefit for the stakeholders are different but everything has a link between profits. If Tesco makes profit then only they can respond to their stakeholders.
Conflicts of interest of Stakeholders in Vectone Gnanam Telecom
The stakeholders for example the customers in Vectone Gnanam telcom want their company to perform well and want them to reduce their prices on their products and want them to provide them a good service while employees and manager want them to treat them fairly and pay them good benefits and they want their job to be secured.
The shareholders in Vectone Gnanam Telecom want their business to make more profit and they want to know the business is secure because in a private limited company the shareholders are the owners and government want to know they are paying taxes and there business is secure and they want to know they are working under the laws. The suppliers in Vectone Gnanam Telecom want them to increases their sales so they on purchasing from them.
Task 6
Tesco
Vectone Gnanam Telecom
Ownership
Public limited company
Private limited company
Industrial sectors
Tesco belong to both tertiary and secondary sectors because they used to provide retail services and manufacture their own breads and bags
Vectone Gnanam Telecom belongs to both tertiary and secondary sectors because they used to provide communication services and manufacture their own telephone cards.
Activities
Tesco core business activity is to sell food and drink and they provide services such as banking, insurances and optician etc
Vectone Gnanam Telecom core business activity is to provide communication services and they do not provide any other services than that.
Location
Tesco location is affected by nearness to customers, the cost of premises, Nearness to customers, Being near to rival firms, Transport link for suppliers and distribution
Vectone Gnanam Telecom location is affected only by nearness to customers.
Stakeholders
Tesco is affected by stake holders such as customers, employees and manager, shareholder, local community and government
Vectone Gnanam Telecom is affected by stake holders such as customers, employees and manager, shareholder and government
6b) Explain how and why external factors such as legislation, competition, technology, taste, fashion and the general public is having on each business.
Legislation
Tesco is the super market, which has to follow many laws and regulations such as health and safety. Tesco has to employ people and to check the product and ensure they are maintained at standard level. They also need to ensure that the Inland Revenue and taxes have been paid to the government and details of their employees must be sent to the government and ensure the company work within law and let employee how to act on an emergency situation.
Tesco core business activity is to sell food and drink according to law in United Kingdom the food items they sell should contain the country of origin, manufacturing and expiry date of the product.
Tesco and Vectone Gnanam Telecom need to monitor the prices what they published in the catalogues because according to law in United Kingdom they have to sell the product for the price they published.
Competition
Tesco has many competitors such as Sainsburys, Safeway, and many supermarkets have made Tesco to improve quality in both product and services and to reduce cost in items to keep their customers.
Vectone Gnanam Telecommunication has many competitors such as Telecommunications cards such as world call voice Telecom, Sigiri, and selvam and Telecommunication business like BT, Argos. And they have to better services such as getting connections with the destinations easily at standard prices.
Technology
Improvement of technology such as introduction of barcode help to speed up the processing of goods at checkouts and price changes can be implemented quickly and easily and there is no recruitment to price individual items on display scanner made easily for employees to provides services to their customers Tesco sell different kinds of same varieties items according to customers. Improvements in technology made people to shop from home thorough Internet or by phone.
The improvement of technology has been boosted Vectone Gnanam Telecom because if cards have stolen they can stop them using the card immediately by entering the serial code of the code and improvement in technology made telephone cards can be used both phones, web and Internet.
Taste
Every individual people have different kinds of taste such as some need standard quality at a fair price some needed high quality product even if the price is higher they are not bothered so super market like Tesco should have different kind of varieties of same items according to customers preferred taste.
In communication business like Vectone Gnanam the taste of customers is different some customers want an easy connections whether the y are calling less than other cards. Some customers are bothered about calling time when compared to connecting time so they have introduce cards according to preferred taste
Fashion
In this modern world people want latest items they are not interested in old fashioned items so supermarkets like Tesco should introduced new items such as shopping from home rather than coming to the stores and getting everything through free delivery.
In communication business like Vectone Gnanam Telecom the fashions is different the peoples are allowed to use telephone cards on mobile phones and they can purchases cards at cornor shops.
General public
In supermarkets like Tesco there is competition so they intent to sell their items at a low profit to keep their customers this will benefit public people and Tesco expanding more than ever in the last six years. Tesco has created more than 40,000 jobs in the last 18 months.
In communication business like Vectone Gnanam Telecom they are benefits for people who do not rent a telephone line they can use public phones freely for using telephone cards.
TASK 7
The sources I used to obtain information in my portfolio
The books I used to obtain information in my portfolio are
Carol Carysforth, and mike Neild (2000), GNVQ Intermediate business, Hieneman
Kate Madaza, personnel manager of Tesco extra
ARMADA WAY
ROYAL DOCK ROAD
BECKTON
LONDON
E6 7FB
Khan, Manager of Vectone Gnanam Telecom
80
High Street North
East ham
The Internet website I used to obtain information in my portfolio are
www.Google.Com
www.tesco.com
www.tesco.com/corporateinfo
www.companieshouse.gov.uk/info