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How businesses develop.

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Introduction

Private limited company Introduction In this assignment I will be writing a report on a Private limited company. The private limited company that I will be writing a report on is Littlewoods. Littlewoods is one of the largest private limited companies in England. Littlewoods also is famous for its stores, football pools competition, and mail order catalogues. Littlewoods is a family run firm and is privately owned. There is a chain of stores all around England. Benefits for the owner A private limited company is not very hard to set up. Sometimes owners may only invest �100 or �200 each to start of with. A private limited company can stay small; this is because private limited companies have only three or four shareholder. The minimum is one director and a shareholder. There is not a limit of shareholders. The owners and shareholders work in the business everyday, and have a lot of interest in the business and the success of the business. The shareholders and directors are responsible for the running of the business. Shares cannot be sold to the public, but can be transferred with the agreement of all shareholders. The reason why shares cannot be sold to the public is because with the public owning shares it will mean the owners will not have direct control over the business. Banks are more willing to make loans to a limited liability; therefore it must have a good financial track record in business. Because of limited liability (if business fails, owners do not loose personal possessions) the owners can never lose more than they have invested - no matter on the amount of money owed. Drawbacks for the owners It is not possible for the company to sell shares to the general public to raise money. Limited companies have to meet more regulations than sole trader or partnerships. These regulations include things such as Littlewoods plc have to register with the registrar of companies and have to have their accounts checked by an accountant. ...read more.

Middle

External influences The external influences that have affected littlewoods are Foreign competition New methods of retail i.e. Internet, Tele sales Consumer demand Foreign competition This means that because people are buying abroad for various reasons such as cheaper goods. Because more and more people are buying abroad this means that littlewoods are having less sales. This affects the company quite badly because the figures of income are going to be more low. Because Littlewoods is a family owned business and it doesn't have any stores abroad littlewoods find it hard to compete with foreign companies. New methods of retail The number of people leaving their house to go shopping is decreasing by the day as there are other ways of shopping e.g. you can purchase things go the Internet. This way of shopping is going through the Internet. If you do shop of the Internet a delivery is inclusive of this sale. You will need a credit card for this type of shopping, as the money will be debited from the account. Telephone sale is also similar to Internet shopping, as credit card details will have to be given in order to purchase a product. Consumer demand This means that there is less demand for the products that littlewoods is selling. This again will also affect the company a lot as if no one is buying the products that is sold there will be no money coming into the business. Industrial sectors Trends in the industrial sectors The trends in the industrial have changed a lot over the years, and also over the world. About a decade ago in England no one knew what a burger and fries is. Today, therefore the burger business has expanded hugely. In some countries where fast food doesn't exist, even this has grown rapidly. The primary sector The primary sector is involved with producing or obtaining raw materials This means extracting natural minerals such as coal and gas or hunting for animals or fishing only small businesses operate in this section there are three sections in this sector. ...read more.

Conclusion

If an employee is employed training can be provided afterwards. If there was going to be a specialist shop open it would mean that trained staff is necessary. If you would want to open up a business making pottery it would be sensible that it is opened in the midlands, therefore it would not be that sensible to open it up in the middle of the London city centre this is because London is more known for it financial side and not pottery side. Transport links A large manufacturing company is always careful as to where to open the business, as many angles have to be considered e.g. how the goods will be delivered to the customers, and how the goods will be delivered to the store. That is why a lot of the large organisations have stores on the motorway this is so that the goods can be distributed independently. For my sole trader business it doesn't really matter about transport links, Littlewoods and Mirza has good access to the city centre, this is good as most of the goods are delivered from the city centre. Although Mirza also makes regular trips to the cash and carry, which are based in the city centre. Conclusion Although the two businesses are in the tertiary sector the two businesses do have differences. Mirza newsagents is a very small business and it is not a nation-wide business therefore Littlewoods Ltd is. Both of the companies are family run businesses and members of the public do not have shares. Both of the companies sell goods and do not offer a service, but both of the companies sell different things. The customer's influence on the business is yet the same. Because Littlewoods Ltd is a large company the store doesn't know the customers as much as Mirza newsagents. If Mirza newsagent loses a customer they will be affected a lot as the only customers that go in are regulars, but if Littlewoods loses a customer they will not notice as hundreds of customers visits the stores a day. ...read more.

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