Comparing the ownership, aims and stakeholders in Tescos and Rice Bar Ltd.

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                                                                    Introduction to Business

                                                                                                 Exploring Business Activity


 I’ve done a research on two worlds leading business organisation which are UK’s supermarket Tesco PLC, and the world’s most well known broadcasting company BBC. I’ve decided these organisations because they’re the leader and providing/ doing the efficient services to all of us.


1. Tesco is a Public Limited Company first found in 1919 by Jack Cohan with the sales of only 4 pounds. But now Tesco is the one of the biggest supermarket in the world with the sales of billions and billions of pounds and has everything which their customer needs. It has many types of stores such as Tesco Extra, Tesco Metro and Tesco Express. It sells many things including food and non-food items. These items include: toys, food, drinks, toiletry, CDs, videos, DVDs, books, cosmetics, medicine, tobacco, alcohol, fruits, vegetables, electrical goods, clothes, organic food etc.

2. Rice Bar is a Private Limited Company, first opened in 2005 in Piccadilly Gardens, Manchester. They offer different selection of world cuisine such as Jamaican Jerk Chicken to Indonesian Nasi Goreng. Their entire dished are served with the RICE that’s the meaning of its name. Now they have four branches in total, two in Manchester, one in London, one in Newcastle.

In this task I’ll write about a) types of their businesses, b) form of ownership and c) purpose of the organisation of two organisations that is listed above.

a) Type of Businesses

Industrial Sector- primary, secondary or tertiary sector

Tesco and Rice Bar they both are included in Tertiary sector. This is a sector which provides goods and services for the public/ companies. In other words they sell products which are ready to be sold to people. For example: hotels, banks, and supermarkets.

Nowadays Tertiary sector is growing fast in the UK. For this matter I would like to say two reasons of why they’re growing fast.

  1. In the UK using electron, gas and fuel is so much expensive then abroad. Almost most of the clothes we wear and machinery is MADE IN CHINA. That’s because its cost very low to manufacture these goods in China. That is the one of the main reason for primary and secondary sector is declining in recent years.
  2. It’s easy to set up a corner shop and a restaurant if you have the money and if it’s successful it’s likely to grow fast.

Geographical Scale- local, national, international, global

Local businesses are the ones which are only serve their surrounding areas such as corner shops, fish and chips shops etc.

National businesses have branches in different areas of one particular country.

Global businesses they operate in every glob in the world.

For Tesco they’re an International Company that means they operate their business in more than one country. For example Tesco have stores in Japan, USA, China, Poland, and Malaysia etc they’re well known in lots of different countries around world.

Rice is a National company as they have a branch in London and Newcastle.  

  1. The purpose of the organisation

 I believe that every businesses main purpose is to make money if it’s there to make a profit, but if its non-profit company their main purpose would be to work for the benefit of the community.

Tesco- their core purpose is to create value for their customers and to have lifetime loyalty from their customer (). From this statement I think Tesco is more concerned about their future relationship with their customers. To gain this loyalty from its customer what is company doing is that they’re trying to be the ahead of the competition like doing the promotions to attract huge number of customers as well as increasing sales. Offering them a loyalty card which enables them to keep a hold of its customers information, also having 24 hours stores, and online grocery service is the best way to achieve its purpose.

Rice Bar- if you ask anyone on the street the purpose of the Sole Traders, they would say to make profit and it’s true. As well as making profit they aim to provide good quality service, good value for money and fresh food everyday for its customers, in order to make them come back.

c)  Form of ownership- Private, Public, Voluntary/ non-for-profit sectors

Public sector is run and funded by that particular country’s government and provide their services to the public such as BBC.

Voluntary sector they’re neither seeking for profit nor making profit from their services such as charities, trusts. They may be funded from government or individuals/companies.  

Tesco is included in Private sector these are sectors which are owned by the individual/group of people who are make profit from their business. holder is if the company you’ve invested in goes to bankrupt you’ll lose only amount you’ve invested in the company, that’s because you’ve Limited Liability. Limited companies must show their financial information to its owners and shareholders as well as to the public each year. Anyone who is under 18 years old can invest in a share for Tesco through the Stock Exchange. Tesco is owned by thousands of people as because it’s Public Limited Company (PLC). I think reason for Tesco’s been a PLC is because of its huge size. In other words if it was owned by only one person it would be extremely difficult to fund and raise money/afford to run this monster company. Instead of this it would be much easier to get fund from every individual/ group of people. So that means everyone who is investing in the company will be shareholders.

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Rice Bar is also in Private sector as it’s a sole trader, which means its owned by an only one person. Rice Bar is a Sole trader. The most common and easy to set up enterprise. Sole traders do not offer their share like Tesco PLC. Advantage of being a sole trader are owners control everything in their business, and they get the all the profit the business made. However, if the company goes to bankrupt owners will lose their money, in one word they’re risking their money, but No risk, No gain as we like to say.     ...

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