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Exmaining different types of business ownership with examples of each.

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Introduction

Unit 1P1 & P2 Kaviayi Kunnul In this term we have being doing two parts of Unit 1: P1 and P2. P1 is about understanding what is the purpose of business like McDonalds or D&G. We looked four different business organisations. P2 is about being able to describe different ownership so being able to say if McDonalds is a sole trader, partnership, PLC or a franchise. Then we linked what we had learned about different types of ownerships to four real businesses P1 -identify the purpose of four different business organisations P2 -describe the different types of business ownership, linking this to the size and scale of four different organisations. Sole Trader A sole trader is a small business which is usually run by one person who employs 1-5 other people. A sole trader is a person who is the only owner of a business which is not a partnership or a company. These businesses usually don't make a lot of profit but there are a lot of them. The sole trader can make a lot of changes to the business easily and quickly because they are the only person at the top and there are few people to convince. An example is a local shop or takeaway. It is the simplest way to run a business. Advantages of being a Sole Trader Disadvantages of being a Sole Trader All decisions made by you Bankruptcy All profits go to you You are responsible for your actions Less people employed=more money Unlimited Liability Not too much tax Might be to stressful You can hire and fire at your own free will Business at all times fails to continue when owner dies You work when you want to You might not make money Business Purpose Radiant hair and beauty is my local hairdressers. Their aim is to sell good quality hair and beauty products which they have bought from other companies to their customers who live locally. ...read more.

Middle

More connections are another advantage because Ben might know someone who might invest in them making drinks etc. and Jerry might not have known this person. Another advantage is they divide working hours which is good because they feel less overworked and don't feel pressurised etc because if they did the business might not run as smoothly as they want it to. The disadvantage of Ben and Jerry's being a partnership is Conflict of interest this means that Ben might want to do something which might, in reality make a lot of profit but jerry doesn't like it Ben might have to back down - and this causes the business to lose profit. If Ben had been a sole trader he could have carried on with his plan and made a lot of profit. Another disadvantage is that they share profit which means that if Jerry wasn't in a partnership he could be making double that amount of money he is now. This might cause disagreement between the two because Jerry might want to earn more money and Ben is getting in the way of him doing so. Size Ben and Jerry is a large business because they employ 2782738918 people. They need this many employees because they have lots of stores worldwide and they have employees all over the world. They make lots of profit-their business is worth around 326 million. They also have lots of customers. Scale Ben and Jerry's is a global business because they have shops all over the world and their products are in most superstores all over the world but they are mostly in the USA, Europe and Asia. PLC PLC stands for Public Limited Company. A PLC the largest type of business ownership there is. They sell share to the public. PLCs are usually listed on the stock market - where most PLCs trade their shares (an equal part of ownership.) ...read more.

Conclusion

Another purpose is to increase their market share because they don't have the biggest market share- they have the second largest, though. They also want to attract customers from other sandwiches shops (or places that sell sandwiches) such as M&S so to do this they have to see what M&S are doing that they aren't and try and apply this to their shops i.e. if Marks ad Spencer's are selling tuna sandwiches Subway might try and sell tuna sandwiches in order to attract customers who go to Marks and Spencer's to buy their tuna sandwiches. Another business purpose to is to have more shops worldwide and although they are the second fastest growing franchise, they want to be first. They also want to have cheaper prices that their competitors - to attract more customers. The advantage for Subway to be a franchise is that they will have instant customers because the customers know what kind of food they are getting, the level of service and roughly the amount of money they will be paying. Also they are instantly recognisable .Also it is easier for Subway to advertise their products because they don't have to make one advert saying "come to the subway on ......" and another saying "come to the subway on.........." Because they can say "come to subway stores all over the world". Another disadvantage is that they will have to share their profits with the franchise while that money could have gone into making more interesting burgers. Also they are under pressure to keep up the standard and if it is a world famous franchise their standards will be quiet high. A disadvantage is that it is difficult for the franchisee to sell off the franchise because it can only be sold to someone approved of by the franchise. Size Subway is a large business because it has a large amount of business share, it employs many people and makes a large amount of profit. Scale Subway is a global business, the biggest restaurant chain in the world after Yum! Yum! Brand. THE END ?? ?? ?? ?? ...read more.

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