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In this assignment I plan to investigate how two businesses develop.

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Introduction

Unit 2 - How A Business Develops Introduction In this assignment I plan to investigate how two businesses develop. The first company I have chosen to investigate is Morrison's, which is a public limited company is. The second business I have chosen to investigate is Medina Cash And Carry, which is a sole trader. Type of ownership Morrison's is a public limited company, which is normally larger than a private limited company. Medina Cash And Carry is a Sole trader who is an individual who has set up in a business on his own. A public limited company is larger than a private limited company. The share capital (money invested by shareholders), which has to be over �50, 000. Many plc's have a share of millions of pounds. A sole trader is an individual who has set up a business on his own. The sole trader is the person who owns the business and who is also in control of the business. Sole traders set up the majority of the businesses in the U.K. Liabilities of each business A public limited company would not lose all their money invested in the company. ...read more.

Middle

Part 1 Morrison's is a large company selling a wide variety of goods including groceries, electrical goods and clothing. Other changes have been in the number of stores built up in the north. Medina cash and carry continues to sell a wide variety of groceries, spices, and meat and although due to demand it also sells a variety of dairy products. Both businesses are part of the private services sector of the UK economy. For the next part my analysis is based on figures provided by the HSBC the UK economy 2000. (See assignment sheet). Employment in the private services sector has grown rapidly in the past 20 years at the expense of both the primary and the secondary sector. Supermarkets such as Morison's have seen a huge growth in employment in the past 20 years as the number of stores and the size of each store has increased. Further evidence of this is provided using Morrison's figures, in the past 5 years Morrison's has developed 90 new stores up in the north, clearly this has created more employment opportunities, in addition other supermarkets like Asda and Sainsbury's have been expanding at a similar rate. ...read more.

Conclusion

More goods can be sold because there they have more shelf space. They buy in bulk and save money and make profit. However Medina cash and carry buys what is needed. They have smaller square feet of selling space, which means that they have less shelf space to sell things. The sole trader would make a few pence on can of baked beans e.g. if he brought 25 can at 25p a can and sell them for 30p he would make only 5p profit on each can. Whereas if Morrison's brought baked bean cans they would buy them in a bulk because they have more selling space then the sole trader and would save money and make profit on each can. The sole trader would only make a few pounds profit on the goods he sells where as Morrison's would make millions of pounds profit on the goods they sell, they would make more profit on the things that sell then 20 years ago. One stop shopping The growth in one stop shopping has increased the number of hypermarkets over the last 20 years. They have a range of products, which are convenient for the customer, and have wider variety of goods to buy. This shows that the supermarkets sector has changed over the past 20 years. 1 TAYYAB IDRIS: T177006 CHALLENGE COLLEGE: 37235 ...read more.

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