Disadvantages of being an unlisted public company:
- The company needs to write some reports every year. For example: an Annual Report with the financial information about the business.
- Most of the public companies have their affairs on newspaper and television. As soon as they can get good publicity, they also get bad publicity.
- Owners of the company will need to give out more money than starting their own business of being a sole trader.
Location:
Richer Sounds’ first store was at London Bridge Walk, and in December 2002, Richer Sounds had totally opened up 48 stores in UK and 2 stores in Ireland. The locations are as follow:
- 44 in England.
- 2 in Scotland- Glasgow and Edinburgh.
- 1 in Wales- Cardiff.
- 1 In North Ireland- Belfast.
- 2 in Republic of Ireland- Dublin and Cork.
They use two principles to choose the new locations for their stores:
- There must be sufficient potential customers.
- The store must not be too near another Richer Sounds store.
How they choose their properties:
- It doesn’t include having large, fancy and expensive stores.
- Their stores are small.
- It won’t be found in expensive shopping centres.
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They are nearby parking.
- The sites are easily visible.
The aim is to find a site in an inexpensive area, on an easily found route and preferable in a student area too. They also prefer to buy freehold sites, because this saves money, too.
How staffs contribute to their location:
Staffs are encouraged to suggest a new location for Richer Sounds’ new store, if any of them found a suitable place that fits the demands; they will receive £250 for reward.
Two factors influenced their choice of location for their warehouse:
- The cost – a warehouse should be big enough to save a lot of ware, and a big place will be so expensive to rent or buy. Therefore the cost of the location is a problem.
- Accessibility to motorway networks – because warehouse contains all the wares, and to deliver them quick, they will need the warehouse to be near the motorways.
The business activity of Richer Sounds:
Richer Sounds is in the retail business. Their stores sell hi - fi separates, home cinema equipment, TVs, DVD players, etc. Details of all the products that they sell will be shown on the web site of Richer Sounds.
They sell their products in three different ways:
- Direct from their stores.
- By mail order.
- Through the Internet.
Richer Sounds have many competitors who also sell the same products. However, most of them are large chain stores, for examples: Comet and Dixon, who also sell other products. The difference is that the products that Richer Sounds sells are different to normal shops; they employ people who are knee on hi - fi equipments and also train them, so that they are very knowledgeable on their products. That’s meant the products that Richer Sounds sells are higher quality than the others.
Change to their activities
Richer Sounds are proud of themselves of being creative, but they still want to improve themselves, and they make some changes from outside the company (external changes), and others from inside (internal changes).
External changes that affect them and what they do
The main changes and what they do are listed below:
- Technological changes and developments.
- Customer tastes and fashions change.
- Investigation problems.
- Methods of selling.
Internal changes and what they do
They never stop trying to improve the business in all sorts of ways.
- Ideas from staffs.
- Suggestion evening - they always encourage their staffs to give suggestions about the shops, that’s why they decided to have a meeting group in the evening, everyone who attend the meeting will be paid £6.
- Consulting colleagues.
Chrissie D’s
Aims:
There are few aims for Chrissie D’s that are to make as much profit as possible, provide the best quality, improve the quality of their shoes, provide the best service and try to get the best supplier which sells the shoes for less and good quality.
Objectives:
The main objectives for the businesses to sell more different type of shoes than their competitors provide more different services than the previous year Produce as much new goods or new service as possible.
Ownership:
Own by: Mr Steven Yong and Mrs Ro Ro Yong
Type of business: Shoe shop (services sector)
How long have the company had been open: About 18 years
Ownership: Partnership then change to Private Limited Company (A company with protection of limited liability)
Chrissie D’s started off as a Partnership company, but after Mr. Steven Yong and Mrs. Ro Ro Yong married, they changed it into a private limited company. Only family members can join the company.
Benefit of being private limited company:
- The company will be safer- most of the private limited companies are family firms, so that only family members can be shareholders.
- Even only one person can easily manage the company- there is no fixed amount of profit that has to be invests.
- Protection of limited liability- if the company owns other companies’ money; they only lose the amount of money that they invested.
- Bank will be more willing to lend money- the company is protecting by limited liability.
- Share cannot be transfer to anyone, unless all of the shareholders agree.
Disadvantages of being private limited company:
- Limited company has to comply with more regulations than any others- they have to register with the Registrar of Companies; large companies must have their account audited by the accounted.
- Owner is not allowed to choose a name that is the same as other company- suppliers or customers might get confuse.
- The proportions of the shares need to be carefully thought out.
Location of Chrissie D’s:
Address: 42Whalebone Lane South Dagenham Essex
Benefits of the location:
- It is a residential area.
- That is the only shoe shop in that area.
- People can reach the shop easily.
Disadvantages of the location:
- The shop won’t be to popular- people will only know about the shop if they leave around that area.
- Hard to find other new providers for the shoes.
The business activity of Chrissie D’s:
Chrissie D’s is also in the retail business. Chrissie D’s mainly sells shoes, shoe polish and socks, but for earning more money, they also sells bags that suits some of the shoes.
To improve the shop, Chrissie D’s did some changes in the shop:
- Sell more different type of goods.
- Improve the design of the shop.
- Ask for suggestions from customers and friends.
- Look for more suppliers.
Although Chrissie D’s try to improve their quality and earn more money, but they still keep their principle of not selling trainers.
As soon as there is not much shoe shop around Whalebone Lane, Chrissie D’s won’t have too much competitors; till now, the only competitor of Chrissie D’s are from Ilford, ‘Linzi’.
They Compete on:
- Price of the shoes.
- Type of shoes.
Although Linzi got more different type of shoes and the decorations of the shop are better, but Chrissie D’s still get more customers, because the price of their shoes are lot cheaper than Linzi.
Comparison
Aims
Between the two contrasting businesses there is similarities and differences in the aims such as the similarities are that both businesses wants to provide excellent service than their rival and also to make profit as what most businesses would expect to make. The difference is that Richer Sounds like to reward their staffs for a good work whereas Chrissie D’s don’t have any staffs because the owner is capable of handling the business by himself
Objectives
It is mainly similar has both business want to sell better quality products and cheaper than their rivals.
Ownership
He ownership off the two companies is totally different as Chrissie D’s ownership is private limited company and Richer Sounds’ is unlisted public company and I personally prefer to have private limited company because there is no boss of your own and you are in charge of everything
Activity
Entirely different to each other because Richer Sounds’ sells products like all electronical items whereas Chrissie D’s only sells shoes
Location
Richer Sounds’ location can be know better than Chrissie D’s location as Richer Sounds is located in the main road where people passing through can look at it whereas Chrissie D’s is in a residential area where the people living their will only know about it
Improvements to both businesses
Richer Sounds
Aims and objectives
For their aims and objectives I think that Richer Sounds should try to be know by customers by using many techniques such as advertising on the bill boards
Ownership
It is good to be unlisted in the public company because shares are not sold and the owner stay the same.
Location
It would be better for Richer Sounds’ if they continue to purchase commercial properties on the main road and turn it into their shop, which will attract more customers.
Activity
I think all the items that Richer Sounds’ sell is ok but if they can try they should sell all types of parts for electrical items
Chrissie D’s
Aims and Objectives
I think Chrissie D’s aims and objectives are alright for a retailer but they should also should aim to be helpful to all customers and try to meet all the needs of their customers
Ownership
It is good to be private limited company because the owner is the boss and also that it may not need any staff and 1 person can run the business which makes all the profits go to him/her
Activity
As Chrissie D’s has recently started selling school bags they should also sell school clothes because as it is a residential area every children will need to buy their school clothes and so they can just go the Chrissie D’s
