Btec National Business Level 3 Year 1 - Exploring Business Activity

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Unit 1 Different types of business activity and ownership

Pass 1

A) Type of businesses activity

If I live in a city of any size especially in an area where new people are moving in people are increasingly using the Internet to find local businesses. Microsoft can't be local because people search jobs by region: United States, Europe and Asia etc. Oxfam is a local as well such as located in Watford High Street.

Some of the businesses that can be helped by local Internet marketing include: chiropractor, computer retailer, travel agent, locksmith, massage therapist, insurance agent, real estate agent, mortgage broker, maid service hardware retailer, plumber, auto repair etc. How to use the Internet to market a local or regional business.

There are many businesses in UK. It is located sites across a country. For example, Microsoft Company is found in Cambridge that is UK. Of course Oxfam is collecting money to save people and it is every where in the UK, i.e. London, Hertfordshire, Oxfordshire and Birmingham etc. they will be called National Businesses.

An International business company is a legal entity incorporated in a tax haven which is free from all local taxes (except small fixed annual fees). Typically the IBC cannot conduct business in the country of incorporation. Oxfam International is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice. Microsoft International Careers Newsletter, a free quarterly e-publication that will give us timely information on career opportunities at Microsoft, i.e. from Europe somewhere else.

Both Microsoft and Oxfam are global companies, but Microsoft careers can take us to a global presence. They offer opportunities around the world to make an impact with the next generation of technology they're building today. They invite us to explore, dream big and learn more about what they can offer us. Oxfam is a development, relief, and campaigning organisation that works with others to overcome poverty and suffering around the world, these are the largest global organisations.

Public, Microsoft operates in public businesses in the world wide. This meaning of a "public company" comes from the tradition of public ownership of assets and interests by and for the people as a whole (public ownership), and is the less-common meaning in the United States.

In the UK there are vital public organisations that left. For example, of public businesses include:

* Customs and Revenue - collecting our people tax.

* The National Archives - The body is responsible for looking after government records and records from the courts of law.

Private, Microsoft Corporation is an American multinational computer technology corporation with 79,000 employees in 102 countries around the global. Private companies may be called corporations, limited liability companies, partnerships, sole proprietorships, business trusts, or other names, depending on where and how they are organized. Each of these categories may have additional requirements and restrictions that may impact income tax liabilities, governmental obligations, employee relations, marketing opportunities and other business decisions. Private businesses include: For Example,

* Virgin, Intel, Tesco, Cadbury, Schweppes and

Not-for-profit/voluntary, Oxfam operates in voluntary business; it is a confederation of 13 organizations working with over 3000 partners in more than 100 countries to find lasting solutions to poverty and injustice. these are the businesses are to set up to make a profit. For example, a voluntary business operates on quite various lines. I am sure about `not-for-profit` business. It will to set up to organised staffed and run by people who are working purely on a voluntary basis, usually for a nice cause. For examples,

* Voluntary organisations ate Women's Royal Voluntary Service and Voluntary Service Overseas.

Sectors of business:

The primary sector involves many businesses which produces and obtain raw materials and natural products from forest, land, mountain and sea. That can be produce for other industries. Major business is Microsoft surrounded anywhere in the world, but it can't be this sector because it is manufacturers and it can sell goods and services as well. Oxfam is collecting raw materials like clothes, shoes, foods from agriculture etc, services can be donations.

The secondary sector industries Secondary industries engage (interest) in the manufacturing and production of goods. The word "secondary" implies that such companies are engaged in the second stage of economic activity. They use the natural resources of the primary industries (and possibly the goods of other secondary industries) to make products. Secondary industries

Microsoft can be as well but they build new software's. Oxfam is not manufacturer, but they get clothes or shoes from the manufacturers as a charity.

The tertiary sector of industry involves the provision of services to businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer as may happen in wholesaling and retailing, or may involve the provision of a service, such as in pest control or entertainment. E.g. Microsoft is selling software or other services etc and Oxfam is selling goods like clothes and services like donations etc.

B) Business purposes

Reason why businesses exist

Microsoft Corporation is an American multinational computer technology corporation with 79,000 employees in 102 countries and global annual revenue of US $51.12 billion as of 2007. It develops, manufactures, licenses and supports a wide range of software products for computing devices. Headquartered in Redmond, Washington, USA, its best selling products are the Microsoft Windows operating system and the Microsoft Office suite of productivity software. These products have prominent positions in the desktop computer market; with market share estimates as high as 90%.

Products and services supplied for:

> Profit - It is one of the businesses that are illustrated by the growth of the. Microsoft profits increasing day by day. They increased in an online discount that they make benefits. Oxfam Control of its coffee names through trademarking would give Ethiopia a fairer share of the profits of the global coffee trade.

> At cost and below cost - Many businesses not always to seek and to sell their goods for profit. Sometimes they are willing to do so `at cost`. It will be supplying at cost happens when money taken from selling a product is equal to the cost of supplying that product. For example, Microsoft or some other businesses like this one; they may offer software's to schools low cost seats at Educations Subjects fixtures to increase interest in the jobs.

The businesses are able to supply products at below costs of production. It may be because the business is trying to generate interest in a new product. Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s. The company released an initial public offering (IPO) in the stock market, an initially they sell it at below cost price.

Supply products and services in response to demand to:

> Consumers - some of the products will be supplied straight to consumers. For example, Sainsbury's organises the supply of groceries, including tinned, chilled, frozen, and fresh produce. People to get these products from Sainsbury's have to organise a supply chain of activities. Also this business has a good idea, to supply chain is organised through a computer ordering system that tells them how much is in stock and when new order should be made.

> Other businesses - there are many goods are supplied by businesses to other businesses. E.g. builders' merchants supply builders with bricks, cement, tools and equipment. These demand industrial goods and commercial services to enable them to continue with production.

> Central government and local government agencies - many other goods are supplied by businesses to the government. E.g. private stop collecting firms will take away our bins and other forms of rubbish. The local council has brilliant services to pay them to do this. The local council gets its funds for this and other purposes by charging taxes. Using taxpayers money such as public spending to build, run and maintain public services, i.e. hospitals, roads etc.

C) Business owners

The public sector includes everything that is owned by the government. This is things like the army, the police force, and most schools and hospitals. Public means that they are owned by the government for the benefit of everyone. It has wider objectives than profit often has wider social service aims. The government assists Oxfam to give the charities to save from homeless, poverty and disease etc.

The private sector, Microsoft is owns by Bill Gates, which he is the main co-founder. Contains all the businesses owned by the private individuals. Private means that these businesses are run for the benefit of the people who own them. Profit is often major spinning force. Private sector organisation is Microsoft etc.

The voluntary sector of a nation's economy consists of those entities which are not for profit and yet, at the same time, are not agencies of the state - e.g. charities, volunteer community centres and religious organizations. Oxfam has a number of successful fundraising channels in addition to its shops. Over half a million people in the UK make a regular financial contribution towards its work, and vital funds are received from gifts left to the organization in people's wills. They may, in some countries, be subject to state scrutiny if they wish to qualify for charitable status. Voluntary sector organisations are Oxfam.

Types of ownership

Sole trader - most small businesses are sole trader. Examples include plumbers, hairdressers, newsagents and fishmongers. Bill Gates didn't need to do anything except start trading they are dead easy to set up. Get an idea and he's in business. He gets to be my own boss. He is alone to decide what happens to any profit. He has to work long hours.

Partnerships - partnerships are not that common, but the business gets them a lot in jobs like accountancy, solicitors and doctors. By law a business can have between 2 and 20 partners. Partners have an equal say in making decisions and an equal share of the profits unless that is they an agreement called a deed of partnership that says different. More owners means more ideas, and more people to share work. More owners means more capital (money) can be put into the business. In 2006, Bill Gates announced a two year transition period from his role as Chief Software Architect, which would be taken by Ray Ozzie, and planned to remain the company's chairman, head of the Board of Directors and act as an adviser on key projects.[44] As of July 2007, Windows Vista is Microsoft's latest operating system, released in January 2007. Microsoft Office 2007 was released at the same time. So the Microsoft has four partners.

Private and public limited companies - private means that shares can only be sold if all the shareholders agree. The shareholders are often all members of the same family. Private limited companies have Ltd, after their name. The big benefit over sole traders and partnerships is limited liability. Google and Yahoo have created billion dollar businesses primarily based on advertising revenue generated by providing search facilities for their users. Microsoft were a little late seeing the potential in this market and are now working hard to bring themselves up to speed. The new live search technology is the latest advance from Microsoft in their attempts to challenge Google and Yahoo for supremacy of the search market.

Public means that Microsoft can have anyone can buy shares in the company - If they can find someone who wants to sell them. Public limited companies have PLC, after their name. Firms generally become PLCs when they wish to expand. Much more capital can be raised by a PLC than by any other kind of business that helps the company to expand and diversify.

Franchises - for years some manufacturers have given other companies the right to sell their products. For example, Microsoft manufacturers sell their software's through dealer franchises. These franchises trade under their own name but advertise that they sell a particular manufacturer's products. The franchiser (brand owner) uses this to increase outlets and markets while the franchisee gets a ready made a business with proven goods.

Government departments and government agencies - they are the businesses who owned by the people of UK and run their benefit. The government is elected to set policy for agencies. The department for Customs and Revenue works on behalf of the government and is staffed by civil servants, known as customs and revenue officers. Their jobs are to take out income tax and other taxes on behalf of the government, to collect repayments on student loans, and to make payments known as tax credits. Even the government can take the tax payment to the Oxfam as a donations and later government pay them back to the people who are sick or to over 60 ages.

Government agencies - these are bodies that have been set up by the government to take responsibility for a particular activity. For example, the government is the Oxfam saver as well and the child protection agency is a government - funded body responsible for looking after the rights of children.

Charitable trusts - a charitable is one of the successful organisations anywhere in the world. They set up to raised funds and support other people or good cause. Charities have a register as such and must produce annual accounts that are available to be viewed. For example, the business is Oxfam etc. They are helping for homeless people, poverty, diseases etc.

Pass 2 D) Key Stakeholders

Customers: Each customer wants a company to produce highest quality, value for money goods. They will often identify with the brands that they buy. E.g. software purchasers want their software to be the best available within a particular bracket. They like to see improvements that give them better value for money.

( Microsoft want a customer to access to online by giving them discount price with promotional code and to increase their business profits or benefits and to take business to the advantage.

( Oxfam is thankful to customers for annual event and helped to boost this worthy environmental charity scheme because of providing natural shelter food resources.

Employees: They are at stake with their company to provide them with livelihood. They can take seek security of employment promotion opportunities, and nice rates of reward. They can also want to work for a company that they're proud of in business.

( Microsoft employees to function at optimal productivity levels, to deliver high quality service and responsive communications, and to obtain better results sales & services business.

( Oxfam employee by paid managers and workers (unlike voluntary organisations, which rely on the goodwill of their staff).

Suppliers: They want steady orders and prompt or quick payment. They will also want or deserve to feel valued by the company that they supply.

( Two of the language tool suppliers have Microsoft windows firmly in their sights for a renewed push into the application development market.

( Since 2002 Oxfam has been holding an annual supplier day. The purpose of this day is to give key suppliers a better understanding of Oxfam GB as an organisation, to improve Oxfam's awareness of how the organisation is perceived as a customer and to bring about general improvement in working relations between Oxfam and its suppliers.

Owners: It may individual owner in a sole trader business or the partners in a partnership. In a company it would be the shareholders. The owners are again regarded to be the vital stakeholders because they might put a nice part of their life into setting up a business. They see themselves as being the principal risk takers and also want to see the reputation of their business grow overtime.

( Microsoft owner Bill Gates and his career has hold the positions of CEO and chief software architect, and he remains the largest individual shareholder with more than 8% of the common stock.

( Oxfam has no owners and it's supervised by trustees and usually set up to provide a service to the wider community.

Pressure group: They are seeking to exert the pressure on business decision making. E.g. pressure groups are Greenpeace and friends of the Earth that see themselves as defending the environment. They will try to press environmental concerns on to the business.

( Microsoft faced the potential of being broken up by a decision taken by the former presidency and recent president expressed his belief that Microsoft owner represented success story.

( Including Greenpeace, Oxfam, friends of the Earth and WWF, have condemned the summit as failure and a missed opportunity.

Trade Unions: It will represent the interest of groups of employees. They seek to secure higher wages and better working conditions for their members.

( The Microsoft groups of employers or employees, which are seeking to secure highest wages with well conditions for their members to get new skills day-by-day.

( Oxfam employees, for example in shop and they seeking to secure minimum wages and good working conditions as a team to save people from the poverty.

Employer Association: There are employer's equivalents of the trade unions. These bodies represent the interests of groups of employers. For example there are employer's associations repressing the interests of employers in specific industries.

( Microsoft is an active member of several leading European public policy and industry Employers associations. They work closely with these organisations to develop initiatives and programmes that seek to advance the debate on industry and regulatory issues that affect the economy, as well as consumers, businesses and industries in the region.

( In the Oxfam, Employers associations are also required to give all volunteers the information, instruction, training and supervision necessary for their health and safety.

Local and national communities: They might generally concern or worries of business activity. E.g. a local social cost could be pollution from a local factory, when a national social cost might be carbon emissions fro air traffic.

( Microsoft actions of business can have a dramatic effect on communities. For example, the company have many wires somewhere, which relates to the computing systems. The fire will be very dangerous and cause to local communities.
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( Oxfam use of harmful materials or high energy consuming processes in the production of the items it purchases, disposal of waste products, relationships with local communities where activities take place. Community leaders therefore represent important interest groups.

Government: They have their authority to either block, promote or regulate firm activity. They will also can influence or persuade profitability through taxation. E.g. Business rates, PAYE, VAT, NIC, corporation tax etc.

( Government can influence both Microsoft and Oxfam profitability through taxation. E.g. Business rates, PAYE, VAT, NIC and Corporation tax etc. So the government ...

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