Russ Berrie + Sparsholt A2

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Ownership

              Sparsholt and Russ Berrie both have similarities and differences in the way they are run and owned. There are very few similarities but the few I have noted are that they are both private sector businesses rather than public sector like the post office. Both Russ Berrie and Sparsholt both started their businesses as the same; both the company started as sole traders, which was very easy for them to set up. The differences for both the companies that I have found were more numerous, such examples for this would be that although Sparsholt and Russ Berrie both started as sole traders Russ Berrie has advanced into becoming a Public Limited Company, Plc whereas Sparsholt has not changed it’s status into either a Private Limited Company or a Public Limited Company like Russ Berrie has done.  

Russ Berries method of decision-making I have found is different in contrast to Sparsholt.  Sparsholt I have found to be a faster process of decision making because of its one owner however in comparison to this Russ Berrie must inform all of the directors and other owners before action can be taken this are done to make sure there is no conflict on ideas or opinions.

Mr Sparsholt is liable for everything that happens to Sparsholt Diary farm whereas in comparison to this I have found that Mrs Berrie is only liable for the amount of the business she has invested in / owns for example Russ Berrie makes £3mill last year because of Mrs Berries 51% holdings she receives more money than the other shareholders however not all the profits go to the shareholders some is reinvested back into the business whereas Mr Sparsholt would receive all the money. Another difference of the two companies I have found would be the land they were built upon. Sparsholt was built upon a Greenfield site whereas in comparison the new Russ Berrie site I found out was a Brownfield site however a similarity I found was that neither company was built in an area of high unemployment and that neither company receive grants for employing local people. I have found another difference between the two companies; Mr Sparsholt is in full control of his company whereas because of the shares available on the stock market many people have an investment and control in Russ Berrie. Another similarity I have noticed is due to the companies’ status, Russ Berrie because it’s a Public Limited company is classed as a stand alone company, this means that if any legal or financial action is taken towards Russ Berrie the company would be liable not the owner however in comparison to this Sparsholt dairy farm is not a registered company and therefore cannot be separately classed therefore if Sparsholt dairy farm is sued or requires legal action the farmer Mr Sparsholt would be liable for everything that happens.

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Aims and Objectives

                                I have found more similarities for this section compared to the ownership. A similarity I have found would be that both Sparsholt and Russ Berrie aim to survive as businesses. Neither of the companies wants to fall too much into debt or have to declare themselves as bankrupt as this would mean the company is out of business and would have to shut down meaning that both owners would receive no income from the businesses. Another similarity that I have ...

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