As well as this aim Carphone Warehouse also has five “fundamental rules”.
- If we don't look after the customer, someone else will.
- Nothing is gained by winning an argument but losing a customer.
- Always deliver what we promise. If in doubt, under promise and over deliver.
- Always treat customers as we ourselves would like to be treated.
- The reputation of the whole company is in the hands of each individual.
It is important for the Carphone Warehouse to set aims and objectives because then they have a goal to aim for and when they reach this aim the public consider them a better company.
The Carphone Warehouse is a successful company. They have won the awards for Retail Week - Customer Service Initiative Award in 1998, 1999 and 2001, Mobile News - Large Retailer of the year between the years 1995- 2001, Best Customer Service in 1998, 2000 and 2001, Arthur Andersen Enterprise Award: Customer Service in 1997 and 1999 and Mobile Choice Consumer Awards High Street Retailer of the Year 2005. The Carphone Warehouse was also in the finals for the e-tailer of the year.
If the activities of the company changed the aim would probably change, but not drastically because this aim would be relevant for most companies.
As a PLC the company's shareholders can be any member of the public, although shares are likely to be concentrated within institutional portfolios, at the moment each share will cost you over £150. The owner of the Carphone Warehouse is Charles Dunstone.
- The capital is increased because the public can now buy shares.
- Limited liability.
- A minimum of 2 directors and 2 shareholders.
- Shares increase in value if the company is successful so it’s a good investment.
- Operating large scale can lower costs per unit.
- Many regulations to comply with
- Accounts (and problems) are public knowledge.
- Shareholders may sell shares if dividends poor.
- Original owner may lose overall control.
It is important for Carphone Warehouse to set aims and objectives because if they meet their aims they are aware that they have a successful business, if they do not set aims they would not be aware that their business was failing or succeeding. I think that Carphone Warehouse being a public limited company is a good thing as the public are allowed to buy shares in the business which means the public can show their interest in the business and possibly make some money out of it. I think Carphone Warehouse is a successful business, this is shown by the amount of awards the business has won over the past few years and also by the amount they are charging per share.
If Carphone Warehouse changed its business activities I think the type of ownership would need to be changed as the public may not be as interested in CPW and they would decide not to buy shares in the company which means CPW would not have enough money to support them, so I would have thought they would change to a private limited company as they would no longer have to rely on money from the public. I do not think the aims of CPW would need to change as they are universal aims which could quite easily be suited to any business.
Andrew Adkins Page