Background History of Sainsbury’s plc’s
The Business I have chosen is Sainsbury, Sainsbury Supermarkets was established in 1869 by John James and Mary Ann Sainsbury and is's longest-standing major food retailing chain, their vision or their mission statement is "Sainsbury plc's vision is to improve the performance of the core supermarket chain. Whilst doing so we will continue to explore and develop growth opportunities in other markets. Through implementing 'Managing for Value' we will stretch our ambitions and challenge the conventional wisdom within the Company, thereby unlocking our potential and delivering value." Source: Sainsbury Web site
There are several different business ownerships:
- Franchise
- Sole Trader
- Public Sector
- Co-operative
- Partnership
- Company
- Public Limited Company
- Private Limited Company
Public limited company
The type ownership that I have chosen is a “Public Limited Company.” This means it is a type of limited company whose shares may be offered for sale to the public on the Stock Exchange. As a shareholder in a limited company, if it were to become bankrupt you would only be liable to contribute the amount remaining unpaid on the shares this is like limited liabilities. A plc has shares, but the key difference is that these shares can be bought by anyone freely on a stock exchange. Ownership is therefore open to anyone who wants to buy shares. When you are a plc you will have the option to “float” your company over the stock exchange market, a stock market flotation involves selling a percentage of your business in the form of shares (which is always in pence) on one of the stock markets. There are three stock markets in the UK. At the top is the main market of the Stock Exchange, which is generally populated by large companies such as Sainsbury's, tesco's and HSBC. The other two markets are aimed specifically at smaller companies. When you decide to float a business, you get it independently valued and then decide what proportion of shares to sell. The amount you decide to sell will depend on how much money you want to rise. You might need enough to buy a piece of plant, for example, to pay back a venture capital investor who wants to realise their investment, to expand your team or to launch a product overseas.
