The changes that each business could make to enable the aims and objectives to be met more effectively for example one of Nike’s aims is to help the company achieve profitable and sustainable growth. Objective to this aim to this is to open more stores each year. Nike could me more effectively by opening 50 more stores each year for example in most busy places such as: Central London, so this might give profitable and suitable growth for company. Coca Cola Enterprise to enable their aims and objectives to be more effectively as one of their aims says that need to be the best sports company in the world. the
TASK 3
Unit 1: Investigating Business
Task 3 Business Ownership
The business Ownership of Coca Cola Enterprise and Nike
The there are different types of ownership
- Sole trader- is a business owned by one person with unlimited liability.
- Partnership- Examples of this type of ownership include doctors, dentists and solicitors. This type of ownership can benefit from shared expertise, but like the sole trader, have unlimited liability. There must be two or more people in this type of ownership.
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Companies- This type of business must have a minimum of £50,000 in share capital. Being part of this type of ownership means that you are not personally liable for the firm’s debts (). The ownership of a limited company is divided up into equal parts called shares. Whoever owns one or more of these is called a . Also companies divide in two groups: Private limited companies and Public limited companies. Private limited companies are often a family-run business with the protection of limited liability. Public limited companies are large organizations whose shares are traded on the Stock Exchange.
- Franchises- As part of this type of ownership companies make agreements for private individuals to buy the right to sell their goods, for example Burger King. The franchisee runs a private business, with the franchisor being a percentage of the profits. In return, the franchisee can use the company’s logo and have the shop fitted out in the company style.
- Public sector- This ownership refers to a service or industry owned by the state (controlled by central government), for example: National Health Service, Emergency services, State education
The Coca-Cola enterprise is private limited companies. The benefits of forming a private limited company are that for example all shareholders have the protection of limited liability and can lose only the amount they have invested no matter how much money is owned. Also if for example CCE needs some extra money then bank is more willing to lend money to Public limited companies. Setting up a private company as well is quiet easy and there is no fixed amount which has to be invested. So for example coca-cola enterprise would be needed £100 or £200 from the outset. Shares also cannot be transferred to other people unless all the shareholders agree, so for example if coca cola wants sell to someone 1% shares then all shareholders need to agree with this. As well they cannot be bought by members of the public. This gives the owners direct control of the business.
The drawbacks of forming a private limited company are for example Coca-cola and have to comply with more regulations than sole traders or partnership. They have to register with the Registrar of companies and large companies such as Coca-cola must have their accounts audited by an accountant. Also the owners must not choose a name which is the same as the existing company if this would cause confusion to suppliers or structure of the company and other details before formation can be agreed and the documents completed. There are also costs involved, usually about £200 so it is another drawback of forming a private limited company. Coca cola enterprise and choose this type of ownership because of benefits which I said before. Also they choose this type of ownership because for example there are more sources of finance available to companies such as Coca-coal, particularly those also with a good track record. Sources can include local authorises such as European grants for development areas.
The Nike is a Public Limited Company (PLC). The benefits of this type pf ownership are for example a public limited company can remain a small enterprise. The minimum is two directors and two shareholders. Large public company can achieve savings which smaller company cannot. For instance, they can mass produce goods for sale and buy in bulk to save money. Also other benefit of forming a PLC is that if there are many shareholders in Nike then the amount of capital for expansion and development is greatly increased because there are many shareholders in Nike so it also increases the overall value of company.
The drawbacks of forming a PLC are for example Shareholders expect a dividend in return for their investments and will also want the shares to increase the value. If for example Nike would be in difficulties and their share values fall, then many shareholders may sell, which the company vulnerable to a take over bid. Also a public limited company is registered as such with the Registrar of Companies and must comply with many external regulations. The financial affairs of the company the discussions and votes at the annual general meeting are often reported in the media. Because Nike is such a big company and they have for example financial difficulties, this quickly becomes public knowledge. So it is another drawback of forming PLC.
Nike chooses this type of ownership because as they are PLC they can sell their shares globally. This will increase their profit so they can for example build for those money new factory or new store. Also if there are more shareholders then the value of shares increases and then Nike will get more money.
This type of ownership affects the responsibilities and involvement of the owners in CCE because as they are LTD the owner for example can decide if he wants to sell CCE to someone else or not so, it means that owner controls the company and basically he makes decisions.
- Unlimited Liability means that the owners are responsible for all debts. If the business struggles, then the owners may have to sell personal possessions to pay the debts. If they cannot do this, they are declared bankrupt.
- Limited liability restricts this responsibility. The owners are liable to pay debts only up to the limits of their investment. They would not usually have to sell their personal possessions.
Comparison and Suggestions of business ownership
Nike is PLC company so it means they can sell shares to the public, CCE is Ltd company so it means that they can’t sell their shares to the public. The two differences between my two businesses ownership are that firstly as Nike is a PLC they can sell their share to shareholders this increases their amount of capital. But CCE cannot sell their shares because they are Ltd Company. Secondly in Ltd company shares cannot be transferred to other people unless all the shareholders agree, and cannot be bought by members of the public. In PLC company shares can be transferred to other people unless all shareholders agree, so it shows also that PLC Company can lose their control over the company if they sell a big amount of shares to people, when in LTD Company the owners get direct control of the business. The two similarities between Nike’s business ownership and CCE business ownership are that firstly both companies must not choose a name which is the same as an existing company because this would cause confusion to suppliers or customers. Secondly, additional finance for example for expand the company, my both business can borrow from a range of financial institutions to ask for special loans called debentures from e.g. bank
TASK 4
Unit 1: Investigating Business
TASK 4 Business Locations
The business location of Coca Cola Enterprise and Nike
Here is the biggest factory of CCE’s in Edmonton.+
The reasons that CCE located their factory in Edmonton are for example in Edmonton there are many transport links so, if trucks are collecting CCE’s goods then they can move easily to their customers because the links of transport.
This map shows how coca-cola enterprise is spread out across the UK. Also this map shows how CCE distribute their products.
The sales techniques (telephone, internet and mail order) have influenced on my businesses location because for example if Nike and CCE would locate their factories where there is no telephone and internet then it would influenced company and customers because, company would not communicate with distributors so for example CCE could not sale their goods because they could not contact with their distributors and this would influenced on company because they will not get money for their products because they did not sale it. The same thing is with Nike.
Financial help (local, national or European funding) have influenced on my business location because Nike and CCE need some extra money for example to expand. So they would locate their factories where for example government is more likely to give out money.
Local government charges have influenced where the business is located because for example Nike would wants to locate their factory where TAX is low so then they would pay less money for it and save money to use for other things such as expand. Also Nike would not locate their factory where for example TAX is extremely high. So local government charges have a big influenced where to locate business.
The Cost of labour have influenced where the business is located because Nike and CCE need people to for their factories. So for example if CCE locate their factory where accommodation and life is very expensive and also if transport from each labour’s house to CCE is expensive then if they would like employ a labour from that place then that person would expect to get more money from CCE for his work because where he lives in place where life is So it means that CCE locate their factories in places where accommodation and life is cheap so they may pay less for labour. The number of people with appropriate skills available to work in a particular area have influenced where Nike and CCE is located because they need actually a big amount of numbers of people to work for their factories because. They also need a people with appropriate skills to work for them. So, firstly they would locate their factories where there is enough amounts of people to work of them. For example they would not locate their factories in small village because there aren’t enough amounts of people to work for CCE, without workers CCE would not survive. Secondly if CCE needs people with appropriate skills then they need to locate their factories where there are many very good skilled people.
Comparison and Suggestions of Business Location-
Nike and CCE are located in different location and also they are spread out differently. The two similarities between location of Nike and CCE are that they locate their factories near good transport links because of better distribution their goods. The other similarity between location of Nike and CCE is that local government charges really influenced on location on my both businesses because they both locate their for example factories where they would pay e.g. TAX less than the other places. So, they would not locate their factories for example in Central London because the Tax would be extremely high. The two differences between location of Nike and CCE are that Nike locates differently their factories and their stores or headquarters. So for example Nike don’t locate their factories where their stores.
An aim of Nike is to increase their profit they could do this by locating in even more places, locating in areas with the opportunity to receive local government funding, locating in places where there is high unemployed as they will have new and lots of stuff. Also an aim of CCE is to distribute their goods as much they can. So they could do this by locating in good transport link area for suppliers and distribution.
Task 5 Business Activity
The Business Activity of Coca Cola Enterprise and NIKE
The main activity of CCE is manufacture and distribute of 'CocaCola' products in Great Britain.
The main activity of Nike is manufacture and distribute of sport clothes and footwear.
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Sale of goods- Both Nike and CCE sale their goods. Even if they are in different industry position. Nike sells clothes and trainers for people; CCE sells bottles and cans to their distributors so, Coca Cola soft drinks so this is the core activity of this business.
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Manufacturing of goods- Only CCE manufacture their goods. CCE makes bottles and cans for the Coca Coal soft drinks. .
Service is the non-material equivalent of a . It is an experience. It is something which is not touchable. Good is something that you can touch it, feel it and see it.
Primary sector generally involves the changing process of natural resources into primary products. Most products from this sector are considered raw materials for other industries. Major businesses in this sector include , , , and all and .
Secondary sector includes those economic sectors that create a finished, usable product: and . This sector of industry generally takes the output of the primary sector and manufactures finished goods or products to a point where they are suitable for use by other businesses, for export, or sale to domestic consumers.
Service sector is one of the three main industrial categories of a developed , the others being the (), and (extraction such as , and ).
My both businesses CCE and Nike are the service sector because the manufacture their products and also distributing.
CCE is a company that sells goods such as bottles, cans.
Nike is a company that sells goods such as clothes, trainers, accessories.
The main customers of CCE are Retailers - ranging from large multiple supermarkets to corner shops, newsagents and petrol forecourts. Organisations - schools, colleges, hospitals, workplaces, pubs, clubs, restaurants, cafes and cinemas, Wholesalers.
The main competitors are companies which as well distribute soft drinks.
The main customers of Nike are all people.
The main competitors of Nike are companies which manufacturing as well clothes and trainers, such as: Adidas.
- Level of consumer spending on different goods and services-
- Number of people employed in different activities-
- Value of the goods and services produced-
- Effects of technological developments-
In recent years the number of people employed in different activities increases as the, CCE is a service sector so they manufacture and distribute their goods and as they get more jobs they need more people employed in company in different activities. expand every year they need So, if company develop and expand every year like CCE then they need to employ more people. Also as Nike is the service sector same as the CCE it means that they manufacture and distribute their goods so the number of people employed which they need in recent years in different activities also increases as well as in CCE. One of the reasons is expanding.
Task 6 Functional Areas
Functional Areas within The Coca Cola Enterprise
The spider diagram below shows the main functional areas of Coca Cola Enterprise.
Marketing is the wide range of activities involved in making sure that you're continuing to meet the needs of your customers and getting value in return.
Sales is the exchange of goods or services for an amount of money or its equivalent; the act of selling.
The finance in CCE and Nike is responsible for checking the money going in and out of a business. If there are problems, action must be taken swiftly. Computers and IT means that financial transaction can be recorded immediately and analyzed.
Administration and IT support – Nike and CCE receive information daily, in many different ways. This must be dealt with quickly so that customers and suppliers receive prompt answers. Also Nike and CCE generate its own paperwork which must be stored safely in case it is needed again. Computers are an essential part of many businesses as they are used for many administrative tasks. For this reason, many, organizations have a section responsible for maintaining the IT system.
