Contrast the ownership and purposes of two different business organisations - Oxfam and Tescos.

by ashra007 (student)

M1Unit 1: Business Purposes Red Group 10A/Eb1Asid Ashraf 10L Assignment 6 (M1) Scenario: The Editor has asked me to identify and research two different businesses in the area to help promote them to the local community. Requirements of M1: Contrast the ownership and purposes of two different business organisations. Task 6(a): Select two businesses to contrast (your choices must be checked and approved by your teacher). The two businesses are Tesco and Oxfam. Task 6(b): Use the same format for the table as shown below to contrast the two different businesses and add a summary at the end: Aspects of ownershipName of 1st organisation: Tesco Name of 2nd organisation:Oxfam SimilaritiesDifferencesOwnership typePublic Limited Company Charity The differences are that Tesco is a PLC and Oxfam is a charity.Purpose Tesco purpose is that it is to make a profit and provide an excellent service to their customers.Their purpose is that everyone who is involved with

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Oxfam whether it is by contributing to their work, or those who are living in poverty should feel empowered.There other purpose: driven/results focused on the approach which holds themselves and others accountable.Both organisations are relatively similar because they are trying to provide excellent service towards their customers. Oxfam are ensuring that they give high level of service to poor people around the country Both organisations are relatively similar because they are trying to provide excellent service towards their customers. Oxfam are ensuring that they give high level of service to poor people around the country Both organisations are relatively similar because they are trying to provide excellent service towards their customers. Oxfam are ensuring that they give high level of service to poor people around the countryThe difference is that Tesco is here to make profit in order to survive. However everything that Oxfam are doing for their customers is free as there are making no charge at all.Type of liabilityLimited liability for all shareholdersThey form the Council of Trustees, which is the governing body of the Association of Oxfam (a not-for-profit limited-liability company).The similarities of both organisations are that they are limited liability company. ControlThe directors appoint shareholders to control the day-to-day duties and responsibilities of the business. Oxfam have a number of trustees who control the organisation which are: Karen Brown, ChairSandra Dawson, Vice ChairDavid Pitt-Watson, Hon. TreasurerVanessa Godfrey James DarcyMaja DaruwalaAndy FriendRajiv JoshiMatthew MartinMarjorie ScardinoNkoyo ToyoTricia ZipfelThey have various duties and responsibilities for example some are executive directors, vice chairmen and CEO’s. The similarities are that both organisations have control on the day-to-day duties and responsibilities. Each organisation have been appointed directors and CEO’s. The differences are that both organisations have different types of control. For example Tesco have directors to control the company. Whereas as Oxfam have trustees to control the organisation. CapitalTesco must have a minimum of £50,000 to set up which is provided by shareholders. To register as a charity Oxfam will need at least £5,000. The similarities are that both organisations have to have a good amount of money to set up. The differences are that Tesco have a higher amount to set up which is £50,000 whereas Oxfam have a smaller amount to set up which is £5,000. Sources of financeTesco have sales of shares on stock exchange. Tesco borrow loans from banks of specialist financial institution. They have rights issues.Oxfam have raised funds by trading sales of donated goods, which they raised up to £64m. They had trading sales of purchased goods which total up to £10.4m. They also had other various fundraising techniques. The similarities are that both organisations have to bring money in a way. The differences are that Tesco borrow loans from banks of specialist whereas Oxfam do fundraising to raise money ProfitTesco have profits which are paid as dividends to shareholders. Oxfam makes no profit because they are a non-profit-organisation There are no similarities between the organisations for profit. The differences are that Tesco are here to make a profit which is divided between their shareholders used for new shops and to save. Whereas Oxfam are not due to being a non-profit-organisation. Number of owners2 or more. Changing all the time as shares are bought and sold and the stock exchange. Oxfam do not have owners they have trustees who run the charity. They currently have 12 trustees. The similarities are that both organisation have people to run there Tesco and Oxfam. The differences are that Tesco have owners to run their business this is because they are making a profit. Whereas Oxfam have trustees to run their non-profit- organisation. and who do not get a share of the profit Summary: I have learnt that both organisations are very distinct this is due to having different organisation type, number of owners, control, capital and sources of finances. I also learnt that Tesco is a PLC and Oxfam is a charity organisation and that they have similarities and differences between themselves. Mrs Wint Edexcel Business BTEC Level 2 2010/2011