Jamie Dundas
Non-Executive Director
Appointed September 2000. Currently Non-Executive Director at Standard & Chartered Bank. Previously Chief Executive of MEPC Limited (1997-2003) and Finance Director of Hong Kong Airport Authority (1992-1996). Chairman of Macmillan Cancer Relief. Age 54.
Bob Stack
Non-Executive Director
Will be joining in January 2005. Bob Stack joined Cadbury Beverages in the US in 1990 and joined the Cadbury Schweppes Board in May 1996 as group human resources director. In March 2000 he was appointed chief human resources officer and took on responsibility for communication and external affairs in addition to HR. Age 54
Gary Hughes
Non-Executive Director
Will be joining in January 2005. Gary Hughes joined Emap in October 2000. Prior to this he was group finance director of SMG plc, deputy finance director of Forte plc and held a number of senior management positions with Guinness plc. Age 42.
Ownership of J.Sainsbury’s
J.Sainsbury’s is a public limited company. A public limited company must also consist of 2 or more directors of the company. This type of ownership is based on shares, anyone can buy these shares, they are openly traded on the stock market, this then allows the company to make extra funds from the public. The control people have, is the more value of the shares a person has the more of the say they have in the company. companies cannot control the market value of the company as it all depends on the shares the conpoany has sold, therefore this means that if the share value and performance falls, people will start to sell their shares, and the copany will loose out and won’t be worth as much. As it is a public company, this allows the public to view the buisnesses accounts and to view information about the company.
A business wanting to ‘go public’ will then arrange one of the merchant banks to handle the paperwork. Selling new shares is quite a risky business. The stock exchange has ‘good days’, when a large amount of people want to buy shares, and ‘bad days’, whena large amount of people want to sell their shares.
The advantages for having this type on ownership are:
- Sainsburys can easily raise large amounts of capitals by selling shares. If they do this they can have more money invested
- Sainburys shares can be bought and sold by the public
- Producing large scale is learned economies of scale. Where these economies exist, firms will attempt to take a greater share of the market. This allows then to manufacture their products more cheaply, and to sell them at lower price, increasing their profits.
- Limited liability – the good thing about limited liability is that the organisations owners only put at risk the money they actually invest into the company. also it is a benefit for businesses that they are able to raise capital more easily under the protection of limited liability. This is good for sainsburys because the owners don’t put at risk everything, they just put at risk their money.
The disadvantages of this type of ownership are:
- A legal document needed
- If on a bad day a lot of people sold there shares they would go in loss this means it is a risky business.
- Costly to establish
- Accounts must be published. Sainsburys must publish their accounts because the public can see whether the company is doing well or not, so people can choose if they don’t want their share
- Risk of takeover by other firms buying shares on the stock exchange. Sainsburys ownership can be changed quickly because other companies buying shares can achieve takeover bids.
Profit is distributed by shareholders receiving a dividend, dividend could depend on type of shares.
Here are the other types of ownerships:
- Sole trader- these are businesses owned by a single person, like a window cleaner or a corner shop. The advantages of this type of business is that the person gets to keep all the profit, they also get to make all the decisions as well as be there own boss. Another advantage is that it is one of the easiest businesses to set-up. The disadvantages include the fact that it’s harder to take a break and all responsibility lies on you. They will also have unlimited liability which means that they will have to pay for all losses. And working for you self means that you have to work as hard as possible in order to make a good amount of profit.
- Partnership businesses will consist of 2-20 people; examples of these are doctors, solicitors and dentists. The advantages of this type of business is that the burden of the company is split so less tension. If there is more people there it is more specialisation as the different people are differently skilled so this means as there is multi skill within the business more work can be produced in different areas. In this sort of business it is easier to take holidays as the company can still operate. Disadvantages of this is that there is once again a unlimited liability this means if 1 of the owners were to leave then the other owners must sign another deed of partnership; this is a contract outlining the deeds set out for each individual this maybe how much each individual has to put in or maybe how much percentage they will own and other important details. Another problem is that the partners will tend to complain as one may not produce enough work, another thing is that its harder to make decisions as others have to be consulted and it takes longer for everyone to agree.
- Private limited company is nearly the same as the public limited company the only difference are that the shares are not sold on a stock market but people are invited to buy shares, which reduces that number of people who can control the company. There must be at least two shareholders, share will be brought with permission of the board of directors. The advantages of this sort of business is that it is easier to raise capital by selling shares and there is a protection of limited liability for each share holder. The disadvantages will be all profit must be shared between the shareholders and this sort of business will prove expensive to set up and run.
- Not for profit- these are basically charities, these are here to fill gaps in services, or to change the environment we live in. making profit is a secondary aim for these companies
- Franchises are like hiring out. Or buying a store of a company is like saying your buying one of there franchises. The advantages of this are that the company it self gets to expand, for less of there own invest meant which means less risk this is because the person buying the franchise has to put more money in than the actual company it self.
Proof of ownership of J.Sainsbury’s
Other types of ownerships are:
Sole trader- this type of business is owned by a single person, an example is a cornershop. The owner is able to keep the profit. The advantage is that it is easy to set up, and it is also easy to run because you make all the decision.
The disadvantages are that all responsibility lies on you and it’s hard to take a break.
Also in events of sickness, there is no one to take over.
Partnership- consists of 2-20 people and a sleeping partner. People in business partnerships can share skills and the workload, and it may be easier to raise the needed capital. Examples of a partnership are doctors, solicitors and dentists. Profit is distributed by sharing between the partners. The advantages are that you can share ideas, each person is specialised which makes it easier to raise finance, each person contributes.
Disadvantages are that you have to draw up a deed of part, this costs money and also profits and losses are shared.
Private limited company- this is similar to public limited company except the shares are not sold on a stock market, shares are only sold to family and friends. The advantages are that it is easy to raise finance.
The disadvantages are that the ownership is shared, profits are shared. A legal document is also needed (memorandum and articles) and it is more expensive.
The profit is distributed by shareholders receiving a dividend and then managing director(s) decide how much dividend is received.
Franchise – are like hiring out. Or buying a store of a company is like saying your buying one of their franchises. The advantages are that it is already a well established business and advertising is done for you. Also the company it self gets to expand, for less of their own investment which means less risk; this is because the person buying the franchise has to put more money in than the actual company it self.
Profit is distributed by franchisee keeping the profits after paying royality to franchisor.
http://www.j-sainsbury.co.uk/files/pdf/company_profile.pdf
