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Location
Both businesses are in Bournemouth.
One is at St Paul’s and the other is at moor road.
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Location Factors
This is a table of what Asda & New Driver had in mind when they were starting their business. New driver didn’t need to consider all of these factors because they are not a huge company and they couldn’t afford all of it. However Asda considered most of them except for staff quality and skills. Because they are so huge they have no personal concern for any of their staff.
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Ownership
One business is a PLC (Public Limited Company) and the other is a partnership.
Asda is a PLC because it is owned by shareholders. It’s the largest sort of business and is allowed to invite members of the public to become shareholders. The shareholders have limited liability.
New driver is a partnership because two or more partners own it. Its partners have unlimited liability.
A key factor is business size. A big business like Asda or Wal-Mart can afford to employ experts because they receive money from investors. A small business like New Driver can only afford necessary equipment or materials because they are restricted to how much they can borrow.
Another key factor is liability. This is the difference between unlimited liability and limited liability.
Asda has limited liability, which is having responsibility for debts limited to the amount invested.
New Driver has unlimited liability which is being responsible for an unlimited amount of business debt.
The ownership matches the size of the business.
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Aims & Objectives
Asda expresses its aims and objectives as a mission statement, a purpose statement and a list of values. The mission and purpose are aims that they think are important.
Asda said:
Our mission is:
“To be Britains best value fresh food and clothing superstore”
Our purpose is:
“Satisfying the weekly shopping needs of ordinary working people and their families who demand value”
In order to achieve our mission in our everyday work we have an established set of Asda values.
The Asda Values:
- We are all colleagues one team
- What we sell is better value
- Selling is our universal responsibility
- Through selling we make our service legendary
- We hate waste of any kind
- We each need to improve the business everyday in every way
Asda make their Aims & objectives very clear, and detailed.
However New Driver said, “they would like to become the most popular driving school in Dorset”
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Improvements
In order to improve the business, and to help the business gain its aims & objectives I would suggest that:
Asda needs to work on staff improvements because they are not very friendly with their staff and some of their employees aren’t skilled enough for the job.
New driver need to work on advertising because it is not very well known. With better advertising they could receive more pupils and afford to employ more instructors.
Both businesses might consider lower prices because I believe this would encourage more people to shop with them.
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Functional Areas
Asda do not divide their business into the functional areas that one would expect.
The St. Paul’s Asda centre is structured like this:
I have chosen to describe, explain and evaluate 3 FAs
Together they represent important aspects of the business.
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FA 1
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FA2
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FA 3
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These functional areas, with others work together to support Asda in gaining it objectives and goals. Each functional area helps the others to do its job.
For example
Another example
I think that the functional areas work together reasonably well.
I think this because
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Communication
Here are some examples of what kind of communication Asda use.
Oral:
Telephone
Handheld portable VHF radios
One to one
Cameras and television
Written:
Fax
Mail post/Standard letters
Text messaging (mobiles)
ICT Communication:
Email
Instant text messaging
Live voice chat
Video conferencing
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How effective are these communications?
Inside an FA normal conversation is the most effective communication because they are all in the same area.
However when communicating between FAs the best thing is the handheld portable VHF radios because they can work anywhere in the store and are very fast and they are also free!
But when trying to communicate outside the business telephone, mobile or some form of ICT communication is the best because they are designed to communicate world wide with anybody.
I think Asda are very efficient in the way of communication.
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External Factors
Business competitors
In order to be competitive businesses should pay particular attention to price, quality and availability.
Businesses need to know what their competitors are doing.
They may need to change their prices or range of goods.
Business customers
- AGE – Some products are more attractive to a particular age group.
- GENDER – Men and woman may like different things.
- INCOME – Do customers come from rich or poor areas?
- LIFESTYLE – How do customers see themselves?
- WHERE PEOPLE LIVE – People in different parts of the country behave in different ways.
Economic conditions
- INTEREST RATES – When it is expensive to borrow money, people will not spend. When it is cheap to borrow money they will use their plastic.
- PRICES – Every business requires supplies. If the cost of the supplies goes up the businesses may need to put up its own prices as well.
- EXCHANGE RATES – This is how much one currency can be exchanged for another.
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Environmental constraints
- AIR POLLUTION
- WATER POLLUTIOIN
- NOISE POLLUTION
- WASTEFULL USE OF RESOURCES
(All of these things can affect decisions that a businessman has to make)
Changes that may happen
All have to change to keep up with the changes in lifestyle.
Asda carrys out surveys on various people to know what people want and what to buy and sell.
A driving agency doesn’t have as many fashions and trends that it needs to follow.
Economic
- Asda needs to know how much people will spend and what the economic condition is like.
Environmental
New Driver had some bad impact on business when some newer driving schools started up in the area of Bournemouth.
Asda was faced with the Castle Lane redevelopment, they changed and modernised.
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Future Changes
- Economic
- Shopping habbits/Environment
That concludes my project on the differences of Asda & New Driver
DamiG
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