If my uncle is sick this would cause a great deal because this would mean he is losing money, which is very bad and could harm the business. The owner has unlimited liability for any debts this means id the business is unsuccessful the owner have to sell personal possession (house, cars e.t.c).
1b)
Interlink provide a service, he provide a service by letting people use the Internet and using phone to call other countries.
The reason why my uncle is a sole trader is because he wants to keep all the profit to himself and not give it to any one else. He knew that a sloe trading would easy to setup. I asked my uncle why don’t you make a limited company and he said he wanted to keep it small because he wanted to improve his financial status. Also he preferred to make the decision him self and not any one else basically he wanted to run the business the way he wanted it.
The body shop sells hand made product, which have not been tested on animal because the shop strongly doesn’t agree whit animal testing.
The reason why the bodies shop suites its ownership is because the body shop is a franchise so it keeps on opening new shop and I think this is good because this will increase the profit of the company.
The only reason why the body is a franchise is that it doesn’t need to find any outlet the franchisee would find it without the help of the franchisor also the franchisee would work hard for the success of the franchise.
2a) INDUSTRIAL SECTOR
All business belongs to three main sectors it doesn’t matter whether they are private or public:
Primary industry - That part of the economy concerned with agriculture and the extraction of raw materials
Secondary industry - That part of the economy concerned with the manufacture of goods
Tertiary Industry - That part of the economy concerned with the provision of services
The Primary sector
The primary sector, whose goods are sold in , forms the basis of many developing economies. As economies develop the primary sector becomes less important and the and sectors take over
Many primary products are “non-renewable”: which basically means limited in supply and will eventually be completely run out
Secondary sector
The secondary sector, whose goods are sold in in recent decades the secondary sector, has declined in importance for many developed economies. Certainly in the UK, the secondary sector, and manufacturing in particular, has rapidly declined in importance. Operating in the secondary sector poses many problems, but increasingly the key issue for UK manufacturers is that of to their products. Faced with cheaper imports from developing economies like Bangladesh.
The secondary sector is that of ensuring they can turn raw materials, into something that consumers will pay for example tables cars glass.
In the UK we have examples of successful secondary sector businesses e.g. who manufacture vacuum cleaners and washing machines. But equally we have many examples of secondary sector business that have failed to stay “one step ahead” of the competition. The motor vehicle industry is possibly an example of this.
The Tertiary sector
The tertiary sector, whose service is sold in .In recent decades the tertiary sector has increased in importance for many developed economies, In the UK the tertiary sector is by far the biggest proportion of the economy. Operating in the tertiary sector poses similar problems to that of the : they still need to to their products and they still face competition.
Yet because a good deal of service sector business requires “face to face” contact with the customer, it is a little harder for overseas competition to take customers away. More significant is the idea that much of the service sector is based on the knowledge economy i.e. that knowledge and information is worth money and those who posses it have the upper hand.
One good example of this is the Banking industry, which has gone through enormous changes in recent years. Using information and communication technology, banks have vastly reduced the number of staff they need. Many banks and building societies have merged to form much leaner businesses capable of extracting more profit from a wider customer base. The key to this process is gaining information about their customers and constantly communicating new products to them.
2b) The body shop belongs in two industrial sectors which are Secondary and tertiary because they pack their products and sell them in their shop.
Interlink is only in the tertiary sector the tertiary is split in to 4 groups public service, financial and business service, transport and communication and retailing, distribution, hotels and catering and Interlink Belong Into uncle belong to the retailing.
2c) There are also other business in the same sector as mine these include businesses like Iceland, Safeway’s, Ford, Honda e.t.c
Interlink belong in the tertiary sector He provides a service here are some other business that provides a service, Adam’s solicitors Shadwell, Hair dressers e.t.c
2d) This chart below show the UK employment by sectors (1989-1997)
Graph A Employment trends
As you can see in graph and it show how many people were employed through 87-97 the reason why I have chosen this graph is because I couldn’t find the most up-2-date records.
In this graph it shows that the tertiary sector is increasing so this means that there are more jobs in this sector, however the primary and secondary sector is decreasing because it show that there are more and more people moving to the tertiary.
Graph b What is produced by these sectors
As you can see in this graph it shows what each sector is producing.
You can see that the primary sector is declining this show that there are less products being produced whereas in the tertiary sector it so a slow increase the reason why I think this is because if there are less people in the primary and the secondary sectors because they have moved in to the tertiary sector so there out put has increased because there a many more people working in this industry.
3a)
The Body shop Core business is to sell hand mixed products to people in 50 countries; this is the biggest income for the business because this is there main activity. The business carries out these activities buy placing adverts in international and national newspapers, internet also on bill boards this will bring customers into the business and this will help the body shop achieve its core activities. Also the business carries out other activities for example sell men aftershave also they sell Home Fragrance, they sell hair products, and it isn’t just an ordinary shampoo it’s made with fruits extracts.
In order to do this they have to buy a premise also they’ll need some equipment for example they would need EPOS (electronic point of sale) Tills the reason why they would need this is because if a customs buys a cream the system automatically updates the system basically they could tell if one product has ran out so they could order new ones, they would need members of staff like Sales assistance, manager, supervisors e.t.c.
Interlink is a Internet café
The business has a lot of activities they do thing like ‘Sending money all over the world’ the reason why they do this is because the shop is located in the Bengali community and Bengali people always send money to the home land to help the parents also he sell Air plane ticket to people he does this because some people go to other countries and others go on HAJJ (holy pilgrimage) he sell the air tickets at very low prices.
Interlinks core business activities is to let people use the internet and use the phone booth to call international countries but it also has other activates such as selling phone facieses.
In order to do this he need to buy a place in a suitable location then he need to get some fast computer to cope with the T1 connection after that he needs to get some phone booths and to enable international call dialing.
He provide this by letting people come in to the some and use the facilities he doesn’t allow more than two people at the computer the reason for this Is because if there are a lot of people next to the computers one of them could brake and some might get stolen. The opening hours for the shop are 9:00am to 10:00pm Monday to Sunday.
The beauty business in general is increasing because you could tell this by how many out are open, here are some shops in the beauty industries BOOTS AND THE BODY SHOP, these shop are everywhere because male and females want them self to look good you could tell this when you ever you go to a shopping center you would see a beauty shop either BOOT or THE BODY SHOP also the other reason for this is because there is more demand for beauty products and people don’t wan tot travel far distances.
Task 4 a,b,c
The body shop has many outlets for example there is one in Stratford shopping centre London here is a map of the shopping centre also the shopping centre has it own car park this is only available for people who are willing to pay a small amount of money to park the car park is situated very close to the shopping centre.
As you can see there are tube stations and a bus station this is good for the customers they can travel by train, bus and car. The reason why the body shop is located there is because they have done some market research you could tell this because how many people go through the shopping centre every day.
There are many factors that concern the business for example safety they must have a fire exit the reason for this if there is a fires and there is over 100 people in the shop where would they go? They would have to go through the fire exit.
Interlink is located in Vallance Road E1, the shop is right next to a School (3) and plus next to a street market (2) here is a map
As you can see it is very close to Whitechaple Tube Station (3) so you could tell that many people are going to go to the shop because the shop is advertised next to the tube station also there is a shopping center close by. Interlink is very close to a street market this is good because if someone need to phone another person they could go to his shop and get a phone card.
There are many factors that concerns interlink for example Competition because if there is another shop close by and they are doing the same activities and interlink thee people might want tot go to the new shop therefore interlink business will go down.
Task 5a
Stakeholders are individuals or groups who have an interest in what a business does and either is affected by what the business does or affects the business by what they do.
Who the stakeholders are for interlink?
Who are the stakeholders for The Body Shop?
5B
All of the stakeholder have an interest in the business for example the employee are interested in wages and working conditions because if the business did not pay the employees then the business will crumble and employers like to work in a safe environment and if the business did not provide that then it would loose employees and then the staff turnover would be very high.
Also the communities are interested because if a new shop comes in the community they this would mean less noise and crime because the business would try to prevent Anti social Behavior.
Customers would be happy because if the business meets it needs they the customer will all ways come back to the shop because it had the right item that the customer wants.
Suppliers would have an interest because if they get a new client this would mean money and if the supplier has money then they could keep the cost low and it would help other business as well.
