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AS and A Level: Structures, Objectives & External Influences
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Thus it is more crucial than ever for a business to ensure its best cash flow during a recession. Rickmers said it is only giving out about 14 per cent of its distributable cash flow because it is continuing its cash conservation efforts amid unresolved financing issues. Its charter revenue rose 29 per cent to US $38 million in the quarter. The constraints of this strategy are plentiful. If the business must take tight control of its cash flow then it will be rigid and less able to respond to sudden one-off increases in demand, and so miss possible greater profit (the opportunity cost).
- Word count: 1902
With manufacturing plant in Warrensburg, Missouri, SMC owned an annual capacity of 10,000 riding mower units on a single 40-hour-per-week shift with distribution mainly in non-metropolitan areas. About 75% of sales of SMC were made in non-metropolitan areas. SMC sold 30% through wholesalers, 25% through direct-to-dealer, 40% as private-label, and the rest 5% as exports. It sold the Ride King through wholesalers, who located throughout the country, focusing on farm dealers situated in the south central and southeastern US. SMC remained a profitable company since its founding with a net profit return on sales of 10 percent or more annually.
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Describe how political, legal and social factors are impacting upon the business activities of Tescos in the UK and China.4 star(s)
Spending on infrastructure is another political factor that can affect a business. The government uses money they receive from taxes to improve the road, rail and communication infrastructure. The government has improved the roads service enabling Tesco to locate in various areas and have their products distributed with ease. With Tesco having the ability to locate anywhere and still being able to supply an extensive range of products, this could increase the business Tesco attracts. By enhancing the skills of population the government has established and education framework in order to ensure that the population is well trained and the country has the ability to compete internationally.
- Word count: 1381
I am going to write about the different stakeholders who influence the purpose of the two contrasting businesses, Cadburys and the Association of Organics Recycling .4 star(s)
The more products that they buy the higher Cadburys profits and sales will become. The sales revenue will be increased therefore the aims and objectives of Cadburys will be met. * Shareholders - They have part ownership of the business and they influence the purpose of Cadbury because they are giving capital into the business from buying shares on the stock exchange. By doing this they help out financially and therefore Cadbury can operate more smoothly, giving a better service.
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"Continue to invest in and grow our core UK retail business, by introducing new goods and services" Marks and Spencer are currently providing their customers with food and clothing service. Marks and Spencer are aiming to continue investing in and grow with providing service to their retail businesses. Marks and Spencer update their products they do this by introducing new good and services. They have currently succeeded in introducing new products like clothes wear for all ages and gender. By doing this will help them to meet their long term objective of growing and investing within UK retails.
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This would lead to share prices raising therefore, the link between customers and shareholders, in that good relations with one, leads to good relations with the other. There is evidence of this link on the Sainsbury website, which shows that when money was spend reducing prices, share prices fell, but as more customers were attracted, due to the lower prices, the share price increased due to a larger market share, which lead to increased profits. This is where Sainsbury have to decide, which stakeholder to satisfy or try to satisfy both, since they can retain profit for development or pay it out as dividends.
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As well as a PLC and Partnership, there are also other types of businesses. There are: * Franchises * Private Limited Companies * Co Operatives * Sole Traders Franchise A Franchise is a business, but it doesn't involve the normal risks of starting of as a sole trader. To sum a franchise up, it is a little business that gradually expands. It's like a growing child. It starts of as a baby (the start of the business) and grows into a man (the end of the business growing). Typical examples of a franchise are, The Body Shop, BSM and Kentucky Fried Chicken.
- Word count: 8815
Discuss the impact of recent changes in the UK economic environment on UK retailers and manufacturers3 star(s)
However BMW are concerned about the wider economy, for example, the large fall in the US exchange rate because this makes exports from Germany more expensive and the US is a major market for premium cars. Also the car industry is dependent on raw goods, steel and other components which are affected by worldwide prices and exchange rates. These markets can fluctuate overnight so manufacturers of raw goods can be most affected. The recent credit crunch and the problems within the banking industry generally will have had a huge impact on all sectors but, particularly retail.
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and . Unlimited liability is where if a business goes bankrupt the money invested by the sole trader or by the partners is lost and to recover the debts owed their personal assets (their personal money and buildings like houses owned) would also be lost. The shareholders make their money by selling their shares back to the company for a higher price than they bought it for, and earning dividends. The company makes its money from the shareholders investing their money 'in the first place.'
- Word count: 754
easyJet favours an informal company culture with a very flat management structure, which it believes eliminates unnecessary and wasteful layers of management. easyJet has a casual dress policy for all office based employees and bans ties with the exception of pilots. The airline is based at Hangar 89, a bright orange building adjacent to the main taxiway at Luton Airport. In an industry where corporate HQs are generally considered to be the ultimate status symbol, it underlines the low cost approach of easyJet.
- Word count: 897