My Research: P1
Introduction to the businesses
My research focuses on the difference between both businesses OXFAM (a voluntary sector)
and Tesco (a private sector). OXFAM is a non-profitable organisation which raises funds that
contribute towards the alleviation of poverty, making no money for their own personal gain.
Whereas Tesco is a profitable business which aims to provide customers with products that
are required for their everyday needs but with the intention of making a profit.
Tesco is one of the largest supermarkets in the UK, it was founded in 1919 by Jack Cohen.
When Jack Cohen turned 21, he decided to invest into NAAFI surplus groceries and then he
started to sell them on a stall in the east of London. The first Tesco logo was created in 1924
and then soon enough the first store opened in 1929. The main purpose of Tesco is to make
profit and expand their business, their second purpose is to become/stay the leading retail
supermarket in the UK by providing good quality services at a low cost (so that they are
cheaper than their competitors). According to yougov.co.uk this aim has been reached since
statistics show that in 2021 Tesco is the most popular supermarket at 75% positive ratings,
Tesco continues to create value for their customers in order to earn their lifetime loyalty. The
business offers a wide range of products and services from food, clothing, house-hold
products to insurance and phone contracts. Tesco falls into the tertiary sector due to the fact
that it is a retail service which provides a valuable service that customers and businesses are
prepared to pay for. However they do fall under the secondary sector as they manufacture
and sell their own products, such as groceries for example the business even launched its
own fine quality brand which includes top quality groceries named ‘Tesco’s finest’. Tesco
operates on a global scale, as of today there are almost 5,000 stores around the world. The
company has branches in countries such as the UK, Slovakia, Hungary and Czech Republic.
Tesco’s is a large business due to the fact that it employs roughly 360,000 people worldwide.
It is important for Tesco as a company to meet their aims and make profit due to the fact
that it is in the private sector, the company is owned as citizens such as yourselves, this
means if something were to go wrong the damage would fall into these individuals’ hands.
The company is not run or funded by the government. Tesco, also known as a public limited
company, falls under the private sector because its shares can be sold on the stock market to
the public. It is known to be one of the biggest private sector employers in the UK, since it
offers benefits of all jobs whether it’s an assistant, store manager or a more specialised role
involving finance of the business and HR.
Whereas OXFAM is an international charity that works with businesses to address global
poverty. It was founded in 1942 in oxford by a group of people who wanted to work for the
betterment of the woman in society, later the company objective shifted into
accommodating a major problem of the world such as poverty and unemployment. It is
currently one of the biggest charities globally, they sell books, clothes etc to make money so
,they can reinvest it into their company to cover expenses and support programs, they also
accept donations so they can help other third world countries that are suffering with the
consequences of poverty. Oxfam is in the tertiary sector due to the fact that it provides
services to everyone. Oxfam’s main objectives are to aid third world countries in any way
they can, to relieve poverty, distress and suffering, to educate people about the
nature,causes and effects of poverty and to overall campaign a fairer world. The ownership
of the company consists of 21 organisations who are the trustees of the organisation, they
are working in around 100 countries worldwide to find lasting solutions to poverty and
injustice. Oxfam operates on an international level with aspirations to create global
movement with hopes to help prevent these devastating circumstances, Oxfam states on
Oxfam.org that they work with people to bring change that lasts, our work is grounded in
the commitment to the universality of human rights. The Oxfam affiliates have around
10,000 staff and nearly 50,000 interns and volunteers around the world, they state they are
diverse as we are inclusive, people from all backgrounds work together within Oxfam to
make a better world. Oxfam falls under the voluntary sector due to the fact that its primary
purpose is to create social impact rather than profit.
The Ownership of the businesses
Tesco’s is owned as a private sector; this means it is owned by citizens and therefore are
liable for all aspects of the business. Meaning that its owners are likely to take risks in order
to make profit. Tesco is owned by a public limited company (PLC); this is where the business
is vast and very well known to the public. Being a PLC means that the shares of Tesco are
traded on the stock exchange. The features that consist of this is that Tesco’s profits are only
shared between shareholders, Tesco are able to raise money by borrowing and through the
share issue of ordinary shares, Tesco must be registered with the registrar of companies and
the legal setups become quite expensive. An advantage being a PLC is that it provides Tesco
with a prestige profile, allowing it to gain opportunities and have access to more efficient
and better suppliers; in addition , with this prestigious profile Tesco can easily expand and go
global due to the fact that anyone globally can buy shares in Tesco, allowing Tesco to have
more capital to invest in their company. Tesco can raise a large capital sum due to the fact
there is no limit. Another advantage is the fact that Tesco has the ability to liquidate
meaning that shareholders can buy and sell their shares making the company more money.
Because Tesco can sell shares on the stock exchange it allows Tesco to raise greater amounts
of money than other businesses, the shareholders have limited liability, so therefore they
can only lose the money they have invested if there was to be a downfall in the company,
they would not be forced to sell their own personal possessions. However, by law Tesco
must publish their financial position to the public, this acts as a disadvantage since the
businesses financial performance and actions are exposed creating a loss of privacy for the
business. Another disadvantage is the fact that there is greater risk of hostile takeover by
rival supermarkets, due to the fact they cannot control who buys shares. Moreover,
shareholders may clash when making decisions within Tesco as a business and they will
, expect to receive a percentage of profits as dividends. Tesco has limited liability, this helps
draw in shareholders to the business, since they have the knowledge that if Tesco was to
ever face the effects of bankruptcy, they would only lose what they had invested into the
business and would not risk losing their personal belongings.
In direct contrast OXFAM is a not-for-profit charitable organisation, these businesses do not
aim to make profit and are set up, organised and staffed by people working on a purely
voluntary basis. Charitable organisations bring together individuals who care about a cause
so that they can work together and make a change for the world. OXFAM has many aims;
one being to create a service, they are working to serve the society. By doing this they are
contributing to the benefit of society as a whole. Secondly, its profit is not the criterion – it is
therefore important that their funding goes to efficient use. Advantages of this ownership
means that all earnings are cycled back into the organisation to improve the quality of life
for individuals. The use of the business creates awareness of these ongoing inequalities in
society. Moreover the business can gain employee commitment due to the fact that most
employees have individual interest and commitment towards the work they provide.
Disadvantages of this ownership consist of the fact they depend heavily on unpaid
volunteers and workers, in order for the business to run efficiently they need the help of
employees to do this. The business also are under constant fundraising pressures, they
compete with a variety of different charities even those who also are focusing on the
alleviation of global poverty.
P2: Stakeholders
A Stakeholder is an individual who has interest in a company and can either affect or be
affected by the business. Stakeholders are divided according to their importance and can be
classified as primary or secondary. Primary stakeholders are typically what businesses
depend on to function; they provide financial investments that often fund a business’s daily
operations. They are those who also tend to be directly affected whether it's positively or
negatively by the actions taken by an organisation. Examples of primary stakeholders consist
of customers, employees and suppliers. Whereas a secondary stakeholder still does hold a
significant amount of influence over a business, but they are not deemed as important for
the business’s stability, and they do not directly engage in direct economic transactions with
the company. Secondary stakeholders are those that are indirectly affected by actions made.
Examples of secondary stakeholders consist of competitors and the government.
Moreover, Stakeholders are important and can affect how a business operates, there are two
types of stakeholders: internal and external. An internal stakeholder are those who interest
in a company comes through a direct relationship, for example employment. An external
stakeholder are those who consist of not directly working with a company but are still
affected by the actions and outcomes of the business for example a business’s customers.
Introduction to the businesses
My research focuses on the difference between both businesses OXFAM (a voluntary sector)
and Tesco (a private sector). OXFAM is a non-profitable organisation which raises funds that
contribute towards the alleviation of poverty, making no money for their own personal gain.
Whereas Tesco is a profitable business which aims to provide customers with products that
are required for their everyday needs but with the intention of making a profit.
Tesco is one of the largest supermarkets in the UK, it was founded in 1919 by Jack Cohen.
When Jack Cohen turned 21, he decided to invest into NAAFI surplus groceries and then he
started to sell them on a stall in the east of London. The first Tesco logo was created in 1924
and then soon enough the first store opened in 1929. The main purpose of Tesco is to make
profit and expand their business, their second purpose is to become/stay the leading retail
supermarket in the UK by providing good quality services at a low cost (so that they are
cheaper than their competitors). According to yougov.co.uk this aim has been reached since
statistics show that in 2021 Tesco is the most popular supermarket at 75% positive ratings,
Tesco continues to create value for their customers in order to earn their lifetime loyalty. The
business offers a wide range of products and services from food, clothing, house-hold
products to insurance and phone contracts. Tesco falls into the tertiary sector due to the fact
that it is a retail service which provides a valuable service that customers and businesses are
prepared to pay for. However they do fall under the secondary sector as they manufacture
and sell their own products, such as groceries for example the business even launched its
own fine quality brand which includes top quality groceries named ‘Tesco’s finest’. Tesco
operates on a global scale, as of today there are almost 5,000 stores around the world. The
company has branches in countries such as the UK, Slovakia, Hungary and Czech Republic.
Tesco’s is a large business due to the fact that it employs roughly 360,000 people worldwide.
It is important for Tesco as a company to meet their aims and make profit due to the fact
that it is in the private sector, the company is owned as citizens such as yourselves, this
means if something were to go wrong the damage would fall into these individuals’ hands.
The company is not run or funded by the government. Tesco, also known as a public limited
company, falls under the private sector because its shares can be sold on the stock market to
the public. It is known to be one of the biggest private sector employers in the UK, since it
offers benefits of all jobs whether it’s an assistant, store manager or a more specialised role
involving finance of the business and HR.
Whereas OXFAM is an international charity that works with businesses to address global
poverty. It was founded in 1942 in oxford by a group of people who wanted to work for the
betterment of the woman in society, later the company objective shifted into
accommodating a major problem of the world such as poverty and unemployment. It is
currently one of the biggest charities globally, they sell books, clothes etc to make money so
,they can reinvest it into their company to cover expenses and support programs, they also
accept donations so they can help other third world countries that are suffering with the
consequences of poverty. Oxfam is in the tertiary sector due to the fact that it provides
services to everyone. Oxfam’s main objectives are to aid third world countries in any way
they can, to relieve poverty, distress and suffering, to educate people about the
nature,causes and effects of poverty and to overall campaign a fairer world. The ownership
of the company consists of 21 organisations who are the trustees of the organisation, they
are working in around 100 countries worldwide to find lasting solutions to poverty and
injustice. Oxfam operates on an international level with aspirations to create global
movement with hopes to help prevent these devastating circumstances, Oxfam states on
Oxfam.org that they work with people to bring change that lasts, our work is grounded in
the commitment to the universality of human rights. The Oxfam affiliates have around
10,000 staff and nearly 50,000 interns and volunteers around the world, they state they are
diverse as we are inclusive, people from all backgrounds work together within Oxfam to
make a better world. Oxfam falls under the voluntary sector due to the fact that its primary
purpose is to create social impact rather than profit.
The Ownership of the businesses
Tesco’s is owned as a private sector; this means it is owned by citizens and therefore are
liable for all aspects of the business. Meaning that its owners are likely to take risks in order
to make profit. Tesco is owned by a public limited company (PLC); this is where the business
is vast and very well known to the public. Being a PLC means that the shares of Tesco are
traded on the stock exchange. The features that consist of this is that Tesco’s profits are only
shared between shareholders, Tesco are able to raise money by borrowing and through the
share issue of ordinary shares, Tesco must be registered with the registrar of companies and
the legal setups become quite expensive. An advantage being a PLC is that it provides Tesco
with a prestige profile, allowing it to gain opportunities and have access to more efficient
and better suppliers; in addition , with this prestigious profile Tesco can easily expand and go
global due to the fact that anyone globally can buy shares in Tesco, allowing Tesco to have
more capital to invest in their company. Tesco can raise a large capital sum due to the fact
there is no limit. Another advantage is the fact that Tesco has the ability to liquidate
meaning that shareholders can buy and sell their shares making the company more money.
Because Tesco can sell shares on the stock exchange it allows Tesco to raise greater amounts
of money than other businesses, the shareholders have limited liability, so therefore they
can only lose the money they have invested if there was to be a downfall in the company,
they would not be forced to sell their own personal possessions. However, by law Tesco
must publish their financial position to the public, this acts as a disadvantage since the
businesses financial performance and actions are exposed creating a loss of privacy for the
business. Another disadvantage is the fact that there is greater risk of hostile takeover by
rival supermarkets, due to the fact they cannot control who buys shares. Moreover,
shareholders may clash when making decisions within Tesco as a business and they will
, expect to receive a percentage of profits as dividends. Tesco has limited liability, this helps
draw in shareholders to the business, since they have the knowledge that if Tesco was to
ever face the effects of bankruptcy, they would only lose what they had invested into the
business and would not risk losing their personal belongings.
In direct contrast OXFAM is a not-for-profit charitable organisation, these businesses do not
aim to make profit and are set up, organised and staffed by people working on a purely
voluntary basis. Charitable organisations bring together individuals who care about a cause
so that they can work together and make a change for the world. OXFAM has many aims;
one being to create a service, they are working to serve the society. By doing this they are
contributing to the benefit of society as a whole. Secondly, its profit is not the criterion – it is
therefore important that their funding goes to efficient use. Advantages of this ownership
means that all earnings are cycled back into the organisation to improve the quality of life
for individuals. The use of the business creates awareness of these ongoing inequalities in
society. Moreover the business can gain employee commitment due to the fact that most
employees have individual interest and commitment towards the work they provide.
Disadvantages of this ownership consist of the fact they depend heavily on unpaid
volunteers and workers, in order for the business to run efficiently they need the help of
employees to do this. The business also are under constant fundraising pressures, they
compete with a variety of different charities even those who also are focusing on the
alleviation of global poverty.
P2: Stakeholders
A Stakeholder is an individual who has interest in a company and can either affect or be
affected by the business. Stakeholders are divided according to their importance and can be
classified as primary or secondary. Primary stakeholders are typically what businesses
depend on to function; they provide financial investments that often fund a business’s daily
operations. They are those who also tend to be directly affected whether it's positively or
negatively by the actions taken by an organisation. Examples of primary stakeholders consist
of customers, employees and suppliers. Whereas a secondary stakeholder still does hold a
significant amount of influence over a business, but they are not deemed as important for
the business’s stability, and they do not directly engage in direct economic transactions with
the company. Secondary stakeholders are those that are indirectly affected by actions made.
Examples of secondary stakeholders consist of competitors and the government.
Moreover, Stakeholders are important and can affect how a business operates, there are two
types of stakeholders: internal and external. An internal stakeholder are those who interest
in a company comes through a direct relationship, for example employment. An external
stakeholder are those who consist of not directly working with a company but are still
affected by the actions and outcomes of the business for example a business’s customers.
