Unit 1 Exploring Business
Assignment One: Features contributing to the success of contrasting
businesses
,This assignment will examine two diverse businesses, which will then analyse their different
characteristics and structure while determining their reasons for success.
One of the businesses that will be investigated is Footlocker which operates as a global
retailer of athletically inspired shoes and apparel. It was founded in 1974 California United
States. The Woolworth corporation was primary responsible for the operation of the
footlocker stores.it also owns the champ’s sports division. Following the closure of
Woolworths in 1997 the company aggressively expanded into the athletic industry. In 2001
Woolworth changed its name to footlocker inn 2004 the company reported a 10.9 percent rise
in its sales referenced by https://www.footlocker-inc.com/pdf/2004/3Q04_Sales_Release.pdf.
Islamic Relief is the second organisation that will be investigated in this report. It was
established in 1984 by Dr Hany El-Banna and fellow students from the University of
Birmingham in the UK in response to the famine in Africa. It has started to work in different
countries responding to emergencies, distributing clothes, food and offering health services
and beginning long-term projects. Islamic relief is guided by the teachings of the sunnah and
the Qur’an. These timeless values apply to their work and are rooted in the Islamic
commitment to humanity.
Features of Business (P1)
Ownership and Liability
The liability of a business is divided into two categories: limited and unlimited. Limited
liability is a protection against creditors debts. However unlimited liability can be risky
strategy for businesses. If the business goes bankrupt, the owner/s would be required to pay
all the debts that they accumulated. This type of liability can affect the owner’s personal life
and business operations.
Whereas if a business is registered as a private limited company or a public limited company
then its liability is limited to the number of shareholders that own the company’s shares. This
concept is known as limited liability.
Private
Most businesses are privately owned which means they are not bound by the government or
state. There are various types of private ownership each of which has its advantages and
disadvantages.
Sole Trader
, Sole traders are those who are a single exclusive owner. This means that the owner has
complete control over the business and have full control over the profits earned from the
business.it also gives the owner full leadership to make all the decisions without having to get
approval from other board members and can save time as getting all board members approval
is time consuming.
But full control over many of the company’s decisions can be a disadvantage as its limits
one’s ability to make informed decisions the autocratic leadership of a business can lead to
the failure of the company. This can also lead to the personal bankruptcy of the owner.
However, this can also be a good thing as it allows the company to focus on its core business.
Partnership
A partnership is a type of business ownership that gives two or more individuals the
opportunity to share in the management and profits of the business. Since decisions are made
by the owners, they are more inclined to make them in the interests of the business instead of
just their own personal gain. However, since there is now a requirement for partners to agree
on all decisions it takes longer to process them.
A partnership business allows a broader network by sharing contacts and connections with
business partners and can develop new relationships and expand the professional network.
Also, a partnership allows stronger financial position allowing to pool resources can provide
the business with more capital and access to new investors. Also sharing the businesses
expenses can save more money than on your own.
Cooperative
Cooperatives are private businesses that are operated by their members who use their
products and services, and whoever is a member can democratically elect a board director
who will manage the business operations for a period. A cooperative business is one that aims
to provide its members with the best possible service or product without making a profit.
Building societies and credit unions are an example of cooperative businesses and are
operated by their members. Building societies are organisation that handle financial
transactions and stores money on behalf of its members. Unlike banks they do not have
shareholders on a stock exchange which allow costs to be kept down. also, credit unions help
provide loans to its members and is a non-profit making organisation. They help people who
cannot get a loan from a bank.
Private Limited Company
Assignment One: Features contributing to the success of contrasting
businesses
,This assignment will examine two diverse businesses, which will then analyse their different
characteristics and structure while determining their reasons for success.
One of the businesses that will be investigated is Footlocker which operates as a global
retailer of athletically inspired shoes and apparel. It was founded in 1974 California United
States. The Woolworth corporation was primary responsible for the operation of the
footlocker stores.it also owns the champ’s sports division. Following the closure of
Woolworths in 1997 the company aggressively expanded into the athletic industry. In 2001
Woolworth changed its name to footlocker inn 2004 the company reported a 10.9 percent rise
in its sales referenced by https://www.footlocker-inc.com/pdf/2004/3Q04_Sales_Release.pdf.
Islamic Relief is the second organisation that will be investigated in this report. It was
established in 1984 by Dr Hany El-Banna and fellow students from the University of
Birmingham in the UK in response to the famine in Africa. It has started to work in different
countries responding to emergencies, distributing clothes, food and offering health services
and beginning long-term projects. Islamic relief is guided by the teachings of the sunnah and
the Qur’an. These timeless values apply to their work and are rooted in the Islamic
commitment to humanity.
Features of Business (P1)
Ownership and Liability
The liability of a business is divided into two categories: limited and unlimited. Limited
liability is a protection against creditors debts. However unlimited liability can be risky
strategy for businesses. If the business goes bankrupt, the owner/s would be required to pay
all the debts that they accumulated. This type of liability can affect the owner’s personal life
and business operations.
Whereas if a business is registered as a private limited company or a public limited company
then its liability is limited to the number of shareholders that own the company’s shares. This
concept is known as limited liability.
Private
Most businesses are privately owned which means they are not bound by the government or
state. There are various types of private ownership each of which has its advantages and
disadvantages.
Sole Trader
, Sole traders are those who are a single exclusive owner. This means that the owner has
complete control over the business and have full control over the profits earned from the
business.it also gives the owner full leadership to make all the decisions without having to get
approval from other board members and can save time as getting all board members approval
is time consuming.
But full control over many of the company’s decisions can be a disadvantage as its limits
one’s ability to make informed decisions the autocratic leadership of a business can lead to
the failure of the company. This can also lead to the personal bankruptcy of the owner.
However, this can also be a good thing as it allows the company to focus on its core business.
Partnership
A partnership is a type of business ownership that gives two or more individuals the
opportunity to share in the management and profits of the business. Since decisions are made
by the owners, they are more inclined to make them in the interests of the business instead of
just their own personal gain. However, since there is now a requirement for partners to agree
on all decisions it takes longer to process them.
A partnership business allows a broader network by sharing contacts and connections with
business partners and can develop new relationships and expand the professional network.
Also, a partnership allows stronger financial position allowing to pool resources can provide
the business with more capital and access to new investors. Also sharing the businesses
expenses can save more money than on your own.
Cooperative
Cooperatives are private businesses that are operated by their members who use their
products and services, and whoever is a member can democratically elect a board director
who will manage the business operations for a period. A cooperative business is one that aims
to provide its members with the best possible service or product without making a profit.
Building societies and credit unions are an example of cooperative businesses and are
operated by their members. Building societies are organisation that handle financial
transactions and stores money on behalf of its members. Unlike banks they do not have
shareholders on a stock exchange which allow costs to be kept down. also, credit unions help
provide loans to its members and is a non-profit making organisation. They help people who
cannot get a loan from a bank.
Private Limited Company
