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How businesses develop

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Introduction

Sole Trader Ashley Cash and Carry One person owns the sole trader type of business. The sole trader can employ people but these employees are unlikely to be involved in the control, financing or decision-making of the business. Sole traders set up the majority of the businesses in the U.K. This type of organisation has unlimited liability which means that there is no limit to the amount of the business's debts that the owner is responsible for. If the business should fail, the sole trader may have to sell personal possessions- e.g. house and car- to pay off the business's debts. Ashley Cash and Carry is a Sole trader who is an individual who has set up in a business on his own. Ashley cash and Carry is located in Rayners Lane. Mr Dilip Chopra owns Ashley Cash and Carry and he employees 4 people who are working in his shop. He started his business about 10 years ago. The main product he sells is food, household products and vegetables. Dilip Chopra owns Ashley Cash and Carry. It suits the business because the owner wants to be in charge of the business and in control of all the key business decisions. Mr Chopra wanted to be his own boss. If another company came and took him over he would be disappointed. He would lose his independences and control over the business he would also have no control over the profit of the business. A successful Mr Chopra gets to keep all the business profits and does not have to share the profits with shareholders Advantages: * It was easy for Mr Chopra to set up a business as a sole trader as there are no complicated forms or procedures to follow before you can start. * Mr Chopra didn't need a lot of capital to start up Sole traders. * Disadvantages: * The business of Mr Chopra is a Small business and it is seen as more of a risk by financial institutions, ...read more.

Middle

So businesses in the secondary sector manufacture raw materials into good that can be sold to customers or used by anybody. The west midlands use to be famous for its spring making which went on to become car valves. But then there was the industrial revolution in Japan and they started making cars that were more efficient and lasted longer. This sector hasn't really changed much but there has been a decline. Tertiary Sector In the tertiary sector the final products are sold to customers, the tables have finally been made and are sold to furniture which sells them to the public. Shops like hairdressers and bookies are also in the tertiary sector because they supply a service to people. So businesses in the tertiary sector are business that sell products to customers or other businesses and are also businesses that sell services to people. Government services e.g. schools and hospitals also come under the tertiary sector. This sector has grown a lot over the years, even though thing are mainly produced abroad, importing services like international motors have thrived. Asda is in tertiary sector, because Asda sells goods to the consumers. Supermarkets are in tertiary sector, because they sell their products to the customers and they are providing consumers different kinds of services. Asda is not just selling food to their customers but they also provide them with other kinds of services such as banking, insurance, delivery of food to the customer's house etc. Ashley Cash and Carry belongs into the tertiary sector, because the business is selling different kind of product such as vegetables, fruit, dry products (biscuits, cakes etc), cosmetics, meat, top up cards etc. Retailing, distribution, hotels and catering This part of the tertiary sector includes shops, services, pubs, fast food outlets and many others. As Ashley Cash and Carry is involved in providing food and other services it lies in the Retailing section of the Tertiary sector. ...read more.

Conclusion

This will increase their chances of attracting customers and, therefore, increasing sales revenue. Asda and Ashely Cash and Carry also need to locate their business near to high-population so they can sell their products and services. They can achieve this through market research. Transport links Businesses need to make sure that their business is easily accessible, both for customers and staff. This is because a deprivation of either factor will cause the business to not run smoothly. Asda need to make sure that the location they choose has enough people to come and work for them. They also have to employ staff with the right qualities i.e. people with the right educational and training background. They also have to be available at the right price. 80% of deliveries are made by road. This is also the most common way businesses receive their goods. Air and rail transport are also under this category. However, air transport is quick but too expensive and rail transport is cheap but also unreliable in this country. Competition Businesses also need to check the amount/intensity of competition in and near their location. It will not be wise for a small start-up to locate near big, established businesses that sell the same or similar product. Asda in Wembley Park is the only big retail shop in the area so they don't have to fear competition from their competitors such as Tesco, Sainsburry's, waitrose etc. Grants Government or city councils some times provide grants for businesses that will locate in a run-down area or an area with high unemployment. The area where Asda is Located at the moment in Wembley Park was a run down area and Brent Council gave funds to Asda to reduce unemployment and to regenerate the area. Introduction: In this assignment I have been instructed to investigate how businesses develop. The first company that I have chosen is Ashley Cash and Carry, which is a sole trader, and the second company is that I have chosen is ASDA, which is Public Limited Company. How businesses develop Name: Khalid Zamani Lecturer: Dorothy Moore ...read more.

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