- Shareholders have limited liability
- The sale of shares enables – capital to be raised.
- While the company has this money permanently, the individual owners can recoup their money by selling their shares to others.
- Directors may be brought in as experts in certain areas.
- High volume sales and turnover enables the plc to buy at large discounts and thus selling very competitive while maintaining sufficient profit margins.
- Obtains and keeps possession of multiple outlets or business centres to help the plc to dominate the market thus to control prices.
- The security provided by its many capital assets assists the plc in securing loans to fuel its further expansion.
- Its operating profit levels enable the plc to afford more back-up and technical supportive staff.
Establishing Safeway as a limited company brings its advantages but in doing so also brings its constraints (disadvantages). Most companies would take these into consideration before the establishment of there company to allow them to reduce the effects of these happening:
- There are a number of legal requirements to fulfil in setting up the company.
- Regulations mean that a company is more expensive to set up than a sole trader of partnership, although the cost may be as little as £100 and some already registered companies can be brought off the peg.
- The accounting of a company is less private than for other forms of organisation. Companies are governed by the Companies Act which state that financial records must be audited and made available to the Registrar of Companies at Companies House.
- Directors need to report back to the shareholders at the annual general meeting (AGM) where unpopular decisions and poor results must be explained.
E2, B1 – A clear description and explanation of the objectives of the business?
We find in Business that in all cases an organisation sets itself objectives and missions that affect the way they operate. The starting point into an organisation’s objectives is its mission statement. Management look at a mission statement to have each of the following qualities acquired for:
- be well written, simple and direct
- identify the values and culture of the organisation
- define its purpose
- identify its purpose
- identify its customers
- identify the scope of its activities, e.g. local or ‘world class’
- Set out its standards and the qualities that distinguish it from its competitors.
Mission Statement:
“At Safeway, we intend to ensure that we consistently provide excellent value, stock the freshest food, provide you with the best customer care and have the best availability in terms of range and products”
Using Backup Information from the internet. I found this to be a good indication into a mission statement, including objectives and missions for Safeway. Giving a clear written description and analysis:
Business Objectives:
A dictionary definition of an objective is a goal or a purpose. A business objective does very much the same thing as a Company or business sets out its goals to its customer hoping to increase sales with factual information and future prospects affecting the way the company operates. Business objectives flow from its mission and are the criteria against which its performance needs to be judged. They act as standard management targets against which performance can be measured and help to bring staff together - can be linked to pay/rewards. There are two types of objectives Short-Run and long-Run objectives, shown in the analysis below. Objectives change over time depending on conditions in the external environment and on internal policies. There are 5 keys to a successful business objective: using an acronym SMART; Specific, Measurable, Attainable or Achievable, Relevant or Realistic and Time constrained. There are two types of objectives/targets that Management set;
Quantitative and Qualitative objectives. Quantative objectives; are targets which can be aimed at. Every business is suggested and should have Quantative objectives/goals. There are certain categories of these objectives fall in to, these categories are listed below: Production, Stock, Sales, Market Share, Profits, Growth, and Survival
Qualitative objectives; provide a service to either the community or its staff. There are four main goals concerning these types of objectives:
They provide a service to the community, Tend to develop a more skilled workforce, usually consist of charitable or non-profit-making objectives, and provide a high quality of products and/or services.
Below are many examples of long-term business objectives included and detained on the Safeway website giving descriptions and analysis of each:
- The best promotional deals on those products which most of our customers regularly buy: A clear example of a Qualitative objective as it provides a service to the community at a shown non-profit making goal. People would consider this to be the case but under clever management I would see this to be a highly profited scheme. I give this reason because these products would increase in Sales due to the cut cost of their products. This is a very good sentence as it lures a customer in to thinking that such products as bread and milk will be cheaper conjuring them into trying Safeway’s out as their local retailer. On a larger scale the amount of customers lured into the realisation of this fact would amount to a huge increase in Sales, meaning more money into management’s pockets.
- The best and most innovative fresh food offer: always seen as a highlight or main objective in a customer’s conclusion as the stock and food on offer is served fresh. As a sentence it indulges into the customers needs classifying this to be a Qualitative objective as it provides a high quality of products and/or services.
- The best product availability, keeping our shelves full every hour of every trading day. Gives and provides customers with products and materials on offer at all times containing the best available range on the market at that or any allocated time. In my considerations I would state this to be a Quantative Objective distinguished or based under Stock. Most store/stock managers have a morbid fear of running out of either the components and raw materials, or the finished goods. This sentence does exactly the opposite bringing a clear and good reputation of there production/stock dept.
- And the best customer service, in a warm, friendly store environment. As previously written in the mission statement this sentence is very much a like as it offers them with a higher standard of possible care and a customer service. As it provides a service to the community it is a Qualitative objective, but using differentiation on other sentences this targets the customer rather than the community as a whole.
Looking thru the website I found other aims and objectives indulged within the company’s strategy. These were the set objectives and aims written to be proceeded with implemented in the forthcoming year:
- Product related issues, namely organic, assurance, GM, biodiversity, sustainable sourcing, ethical trade, animal testing, animal welfare, chemicals in products, nutrition. All mentioned to bring an advance to a higher quality product giving a decent example of a new and high ranged objective.
- Operational issues, including management of energy, refrigeration, waste, transport. Giving thought and consideration to the Environment providing use of inter thought business. Giving a sense of a secure and power friendly Safeway.
Also changes to the following are to be implemented to inflict a higher situated brand name and company:
- Our role in the community
- Our colleagues.
- Stakeholder engagement.
- Health and safety.
Over the past four years they have been working to make their vision a reality by delivering these objectives and mission’s meaning these objectives have been Long-term projects. After research into the website I found since the implementation of these objective there might be some outcomes produced:
- Over the past three years managed to grow sales by 14% and profit by 37%,
- Gained £335 million profit before tax and exceptional items, a small reduction from the previous year resulting from the uncertainty of the corporate situation.
- Sustained 2% like-for-like sales growth in the first half, and stable second half sales.
- Increased dividend per share held, resulting in a full year increase of 1.5%.
- Profit before tax and exceptional items up 37% since the launch of our new commercial strategy in 1999/00.
