Investigate three contrasting businesses and describe their aims and objectives and current forms of ownership
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AO1 Investigate three contrasting businesses and describe their aims and objectives and current forms of ownership Businesses are different from each other in what they want to achieve and in their ownership. I will investigate these areas. Aims Aims are goals of a business. Businesses usually have lots of aims to achieve, as they influence whole company and behave within company. Shared aims helps to build loyalty within a business and it helps employees understand what a whole business is about. Some of the businesses have a mission statements by which they shape long-term aims of a particular business. I will talk widely about couple types of aims, such as financial, ethical, market centred and customer centred. Financial The owners of a business sometimes risk their capitals and their profit is a reward for risk-taking if successful. If a business is grown, it needs to start making profits. Profits can be reinvested like be spent on buying new equipment or vehicles for a business; also, it can be spent on increasing staff or premises. However, profits have to be spent on running business and make sure it will survive. To better understand role of profits I will show it on the graph. Ethical Business has strong ethical position on the environment or on fair trade. For example, the Phones4U, known fair trade company in the UK, their aims are to provide reasonable incomes for the mobile network operators. Market centred Some of the businesses are market centred; examples of market centred businesses are McDonalds, Tesco, Coca Cola and KFC. These companies are market centred as they have market centred aims like maintaining market leadership. The Mars Incorporated, which owns brands like Uncle Beans, Pedigree, Orbit and Skittles, states 'Our portfolio of brands offer quality and value to consumers around the world.' By having this position they have a key objective for a business.
There are couple disadvantages of franchises like: big amount of capitals is needed to buy franchise, like KFC by less known brand, as this is cheaper; franchises need to be ready to strict guidelines so they do not have as many independence as business settled up individually. Building and friendly societies Building societies have limited liability and they are owned by memberships. When an investor opens an account with building society, he automatically becomes a member of the society. These are mutual societies, what means that any profits made are kept for the members. Some of the building societies now become banks as public limited companies. Friendly societies are another type of mutual societies. They can be found in financial services which provide savings and life assurance services for their members. Charities There are many charities within the UK. All of them must be registered with the Charity Commissioners. Charities do not exist to make profit, but to help people in needs or in special disease. Charities are made for one of the four purposes: to help people in poverty; to help with improving education; help with improving religion; to help animals or reduce environmental issues. Some of the charities work on large scale, they raise million of pounds and employs huge amount of staff, also they run professional marketing campaigns. To cover these expenses, they are run by the businesses. Other type of charities are working on small scale, they usually hire voluntary workers. Without looking on size of charity they need to have some money to promote their acts. The Charity Commissioners are able to measure any frauds. Sole traders Sole traders also called sole proprietors, are the simplest form of business in the UK. There are some legal needs to run this kind of business, such as licenses in types of business such as own pub or a taxi firm. The company can employ people, but there is just one owner.
Lots of the shareholders have just little shares of the company so they cannot have a power of how business is running. Good example of the public limited company is Morrison's. Morrison's have many aims but I will talk about some of them. They want to provide best customer service by which they can have more customers what equals with more profit. They are eco friendly and Morrison's aims to save 50 million shopping bags a month. Also, they aim to provide fresh food and to provide all their customers with very best value for money on their weekly shopping. They want to become unique by offering freshly prepared food, ensuring that their food is of quality and aiming at bringing their store to every neighbourhood in the UK such that they are reachable in a radius of 15 minutes drive. Also, on their website states: 'Our programme is consistent with our vision and values and reflects sound commercial thinking, being run by our team as part of every day business and with our customers always in mind. It is structured around three principal areas: environment: taking good care of our planet; society: taking good care of our shoppers, our colleagues and their communities; business: taking good care as we go about our business. Their objectives are freshness - make freshly prepared food; values - they offer quality freshness at a price what people like and to provide good service. There are couple advantages of public limited company it has separate from management and members; limited liability; name of the company is protected; lots of way of borrowing; death, illness or bankruptcy of one of the shareholders does not influence of running of the company; pensions are higher than in self-employment; There are couple disadvantages of public limited company it is expensive; company is open for a public; some of the shareholders are not bothered about what is going on inside the company; company can be taken over someone if this person bought big amount of shares; lack of control; decision making is spread on directors what makes it longer.
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