In this assignment I will describe the type of business, purpose and ownership of two contrasting organisations and I will also describe the different stakeholders who influence the purpose. My two chosen contrasting businesses are ASDA and Newham Local s

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Omobolanle Salami                19/01/2010

Assignment No.1        Unit 1

BTEC National Diploma in Business

Exploring Business Activity

Introduction:

In this assignment I will describe the type of business, purpose and ownership of two contrasting organisations and I will also describe the different stakeholders who influence the purpose of two contrasting organisations. And then I will outline the rationale of the strategic aims and objectives of two contrasting organisation.

My two chosen contrasting businesses are ASDA and Newham Local service center.

Task 1.1

ASDA is a British supermarket chain which retails food, clothing by george, toys , car wash and general merchandise such as electrical products and cooking appliances. ASDA also have a mobile network called ASDA mobile. ASDA is Wal-Mart's largest non-U.S. subsidiary, accounting for almost half of the company's international sales. They aer currently the 2nd largest chain in the UK.

ASDA is a plc which means a public limited company, plc is owned by a group of people called share holder, this share holder are those who invest their money in the business, they also contribute or vote on issues affecting the business and those are also the one who will choose their board of director and this board of director is the one who makes decisions on behalf of the shareholders. Anybody can buy shares in a public limited company as long as there are shares available in the market. Shareholders are a minimum of two peoples and there is no maximum.

Shareholders have limited liability because if the business goes bankrupt the shareholder can only lose the money they invested in the business and not their personal money.

Newham Local Service Centre is owned by the Newham local government. Newham local service centre provide services to the local people who live, work or go school within the Newham borough. The business aim is not really about making profit but if they do make profit they will send it to the central government and they will then use the money to fund projects. Newham local government is the most multi cultural borough within the UK. Newham is the host city for the 2012 Olympics and their duties are only to the local people who are living within the Newham Borough because the make sure of policies, provision of amenities like libraries, recreation facilities, good road, good drainage systems, good homes, keeping the borough clean, sponsoring youth programmes good education for people within the borough and social services to support young people with issues. They also support environmental issue like planting of trees. The local government gets most of its funding from the central government who raises the fund from taxes, fines, rent and licences. The other source of funding for the local government is council tax. Decision making in the local government are made by the local councils.

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Task 1.2

Now I will describe the different stakeholders who influence the purpose of my two chosen businesses.

ASDA

Customers: Customers are the most important stakeholders who influence the purpose of ASDA, because if there are no customers the business will not be exist for long. Customers expect quality products and services from ASDA and if ASDA is unable to meet customers’ needs and requirements they could be forced to move to other organisations that could fulfil their needs.

Employees: Employees influence the purpose of ASDA because without employees customers won’t be provided with the goods and services ...

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