Investigation into Cadburys.

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To: Ms Sweet

From: Katherine Suttie

Reference: Unit 1 Business at Work

Date: Nov 2002

Title: Investigation into Cadburys

1.0 Introduction

This report will show the type of ownership of the businesses. It will also be discussing the business’s objectives and the reasons for these. It will look at and explain the functional areas of the business, and how these contribute to the meeting of the business’s objectives.

Also it will describe the management style, organisation structure and the culture of the business, and how these interrelates in the business. Also how these affect the performance and operation of the business and how they help the business to meet its objectives.

The report will then explain how the production process, quality control and quality assurance helps the business to add value to its product. The report will then go onto describe the effects that would happen if the business used a different type of quality control and quality assurance. Lastly it will look at how ICT is used for internal and external communication of the project.

2.0 Information.

2.1a Introduction to types of businesses.

There are three types of sectors. Voluntary, Private or Public sector.

Public Sector.

Public sector businesses are run by the government and paid for by taxation. Such businesses are the police, fire department, Ambulance, the NHS or teachers.

Private Sector.

Private sector businesses such as Sole traders, Partnerships and Franchise. They are privately owned and are there to make a profit.

Voluntary.

Individuals who have volunteered run a voluntary sector business. It is a non-profit business and people do not get paid to work. An example of a voluntary sector run business is Oxfam, who receive donations from people.

Size.

There are three different sizes of business.

Small, which has under £2.8 million turnover. They have a balance sheet total under £1.4 million and under fifty employees.

Medium has between £2.8 million and £11 million turnover. A balance sheet total between £1.4 million and £5.6 million and between fifty and two hundred and fifty employees.

A large business has over £11.2 million turnover. A balance sheet total over £5.6 million and more than two hundred and fifty employees.

The business that has been chosen is Cadburys. Cadburys is in the Private sector, and is a large business. There are Cadburys factories all over the world. It also has a large turn over each year and a high balance sheet total. The business is very large, and has a lot of employees.

2.1b Sole Traders.

A sole trader is where one person owns a business. This is a very common form of

Organisation in the UK. The number of sole traders has increased greatly over the

years. Most sole traders work on their own. But not all, some people employ hundreds

of people. Typical sole traders are shopkeepers and market traders, or they are self

employed in occupations such as plumbers, electricians, hairdressers and consultants.

The sole trader has full responsibility for the financial control, for meeting capital

requirements and running costs, and unlimited liability in the case of debt. Which means that if the business comes into debt their personal possessions come into danger of being repossessed till the debt is cleared.

The advantages of a sole trader are:

  • Easy to set up as no special paperwork is required.
  • Generally these are small businesses, so less capital required.
  • Speedy decisions can be made as few people involved.
  • Special services can be offered to customers.
  • Profits do not have to be shared
  • Business affairs can be kept private

The disadvantages are that:

  • Having unlimited liability endangers personal belongings
  • Finance can be difficult to raise
  • Small scale limits discounts and other benefits of large scale businesses
  • Prices are often higher than those of large businesses
  • Ill health/ holidays may affect the running of the business.
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2.1c Partnership.

Partnerships are easy to establish. It is an agreement between two or more people who

take joint responsibility for the running of the business, the share its profits and share the risks. There are from two to twenty owners, so work roles can be allocated, and so problems experienced from sole traders may be eliminated. The business can also obtain greater finance than a sole trader through having more owners. But decision making may be slower. The business also has unlimited liability.

Also the partnership will have a deed of partnership. This is an agreement, ...

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