Tesco & NHS Business Introduction

Niya Mignott Brock

Business Studies

Miss Smith

Task 1

Introduction

For this a task I will be identifying my two main businesses that may be eligible to relocate the new business park. The first business I am going to talk about is Tescos, which is a Public limited Company. The second company which I am going to identify is the NHS (National Health Service), which in the voluntary sector.

Tescos

Tescos is a UK based international grocery and general merchandising retail chain. Their HQ is located in Cheshunt, England UK. Tescos originally specializing in food, it has into areas such as discount , , consumer . Tescos currently have 273,024 employees which are on the rise because of the increases of new stores and also a large increase in profits. Tescos is listed on the under the symbol TSCO. It also has a secondary listing on the with the name TESCO PLC. Tescos was put on the stock exchange in 1947 and in 1995 took over rival Sainsbury’s position as the UK number one. The company launched a home shopping service in 2000, allowing customers to order their shopping online which furthermore added to their profit

The disadvantages for Tesco’s being a public limited company are that shareholders expect dividend of Tesco’s profits. Another disadvantage for Tescos being a public limited company is that the original owner may lose control over Tesco if too many shares are sold.

Tescos was founded, as a one-man business, by in 's . He came from a modest background, being the son of a Polish tailor. He began selling groceries in Well Street market, , in 1919 after World War 1. The Tescos brand first appeared in 1924. The name came about after Cohen bought a large shipment of from T.E stock well. He made new labels by using the first three letters of the supplier's name (TES) and the first two letters of his surname (CO) forming the word ‘TESCO’.

There are many different formats of Tescos. They are divided into five formats, differentiated by size and the range of products sold. Theses five formats are:

Tescos Extra: which are larger, mostly out-of-town that stock all of Tesco's product ranges - with free car parks. The first Extra opened in 1997. The number of these is now being increased by about 20 a year, mainly by conversions from the second category. The largest Tescos store in England is Tesco Extra with floorspace of 11,055sq m.

Tesco: which are standard large supermarkets, stocking groceries plus a much smaller range of non-food goods than Tescos Extra.

Tesco Metro: which are stores that are sized between normal Tesco stores and Tesco Express stores. They are mostly located in city centres and on the high streets of small towns or villages. The first Tesco Metro was opened in , in .

Tesco Express: which ae stores that are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products.

One Stop: which is the only category of Tesco ...

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Tesco: which are standard large supermarkets, stocking groceries plus a much smaller range of non-food goods than Tescos Extra.

Tesco Metro: which are stores that are sized between normal Tesco stores and Tesco Express stores. They are mostly located in city centres and on the high streets of small towns or villages. The first Tesco Metro was opened in , in .

Tesco Express: which ae stores that are neighbourhood convenience shops, stocking mainly food with an emphasis on higher-margin products.

One Stop: which is the only category of Tesco store which does not include the word Tesco in its name. These are the very smallest stores.

: which are stores that offer all of Tesco's ranges except food in warehouse-style units in retail parks.

Tescos is a public limited company. It takes a minimum of £50,000 to set up a public limited company. Public limited company means that Tescos is listed on the London stock exchange which means that Tescos can advertise their shares to the public. When a new company like Tescos is incorporated in either or , it must be registered with , which is an of the . Some of the requirements to be able to become a plc are:

Company must be worth at least £50,000
Company must have at least 2 share holders
Company must have at least two directors, one of whom may also be the .
A certificate of entitlement (the trading certificate) to do business and borrow capital

Because Tescos have all of these requirements, it is qualified to be a public limited company. When a public limited company is formed, like Tescos, the person or people forming it decide whether its members' liability will be limited by shares. The memorandum of association (one of the documents by which the company is formed) will state:

The amount of share capital the company will have
The division of the share capital into shares of a fixed amount.

The members must agree to take some, or all, of the shares when the company is registered. The memorandum of association must show the names of the people who have agreed to take shares and the number of shares each will take. These people are called the subscribers.

Tescos is largest British by both global sales and domestic market share. Tesco now controls just over 30% of the grocery market in the UK, approximate to the combined market share of its closest rivals, and . In 2007, the supermarket chain announced over £2.55 billion in profits

Share holders from Tesco are entitle to attend an annual general meeting that happen every 18 months. An annual general meeting not just limited to Tesco it happens in most big public limited companies. Tesco sell share to raise capital .There are many reasons the public would buy shares some of them are:

To be in control of the business (depending on how many shares the person buys )
To invest money within shares
To be entitles to a percentage of Tescos profits
To be invited to attend annual general meetings every 18 months (if you attend annual general you can vote for director of the company).

Documents of a Public Limited Company

There are 4 different documents need to start a public limited company. They are the memorandum of association, articles of association, form 10, and form 12.

Memorandum of Association

The Memorandum of Association sets out the company name, the registered office address and the company objects. y. The company's memorandum delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

Articles of Association

The Articles of Association is document which set out the rules for the running of the company's internal affairs. The company's articles delivered to the Registrar must be signed by each subscriber in front of a witness who must attest the signature.

Form 10

The Form 10 gives details of the first directors, secretary and the intended address of the registered office. As well as their names and addresses, the company's directors must give their date of birth, occupation and details of other directorships they have held within the last five years. Each officer appointed and each subscriber (or their agent) must sign and date the form.

Form 12

Form 12 is a statutory declaration of compliance with all the legal requirements relating to the incorporation of a company. It must be signed by a solicitor who is forming the company, or by one of the people named as a director or company secretary on Form 10. It must be signed in the presence of a commissioner for oaths, a notary public, a justice of the peace or a solicitor. There is usually a £ 5 fee payable to the person that witnesses the statuary declaration.

Sectors

Because Tescos are providing a service to the public, it qualifys to be in the tertairy sector. The tertary sector is one of the three main industrial categories of a developed , the others being the sector (), and primary secotor (extrating raw materials). The tertiary sector involves providing services to businesses as well as final consumers. Services may involve the , and sale of goods from producer to a consumer as may happen in and , or may involve services such as in or .

Tesco are involved with all three sectors:

Primary: Potatoes are extracted from a farm.

Secondary: The potatoes are then washed and bagged.

Tertiary: The potatoes are sent to Tesco and sold to customers.

NHS (National Health Service)

The National Health Service is the of . The NHS provides the majority of healthcare in England, including (such as ), , , and (NHS is done by dentists in private practice doing sub-contracted work for the NHS). The NHS has employed about 980,000 full-time workers (recorded in 2005).The came into effect on 5 July 1948; subsequently it has become an integral part of British society, culture and everyday life.

The costs of running the NHS (est. £104 billion in 2007-8) are met directly from general taxation from the government.

NHS Structure

This is a structure of the NHS, because it if funned by the government it will start with a government company which is the Department of health, then comes secretary of state for health. Then comes Strategic Health Authorities., and last comes primary care trust.

Department of Health

The Department of Health (DH) aims to improve people's health and wellbeing through its strategic responsibility and accountability for the health and social care system in England. The DH does not directly run the National Health Service, manage individual hospitals or directly employ doctors, nurses or dentists. Rather it sets the national standards for patient care and regulates health provision. The Healthcare Commission inspects health services. When problems occur, the Department intervenes to put things right. The DH also sets priorities and targets, including those for improving cancer and heart disease treatment and reducing hospital appointment waiting times. It works to improve public health, for example by reducing smoking, and stopping alcohol and drug abuse. It also seeks to improve mental health and the care of those with mental illness. Social services are the responsibility of individual local authorities, which also employ social workers. But the Department sets the strategic direction for children's care services, such as adoption and fostering, and services for elderly people, including old people's homes. The Commission for Social Care Inspection is the single, independent inspectorate for all social care services in England. The Department also provides specialist guidance to health practitioners and social workers, and supports research to improve the quality of health and social services.

Primary Care Trust

The primary care trusts are responsible for spending 80% of the total NHS budget. They are responsible for delivering and improving the health of people in local areas. This means that the government most primary fund the area that needs most health care. Some Primary care trusts provide family doctors (GPs), the PCT’s community teams, pharmacists (chemists), dentists and optometrists (eye care).

NHS Ambulance Service

Sectors

NHS is in the tertairy sector because it provides a service to the public. The tertiary sector provides a service to customers .These are businesses such as retailers, travel agents, banking, education as they all provide a service or product. The tertiary sector is involved with selling products that have been though the primary and secondary sector, its one big cycle.

Bibliography