U1A1 – EXPLORING BUSINESS
Features contributing to the success of contrasting businesses.
In this report I will be looking at the features contributing towards success for both contrasting
businesses, The British Heart Foundation and Tesco.
Explain the features of two contrasting businesses (P1)
Tesco is a profitable British company and is one of the largest retailers across Europe - measured by
profits. The British Heart Foundation is a British Charity from Camden, London, with the main
intention of generating funds to research preventions, treatments, and cures for all heart and
circulatory diseases.
Ownership and liability
Tesco is a private sector organisation with the main intention of making a profit. Tesco’s legal form
of ownership is a public limited company (Tesco PLC), and its shares are exchanged on the London
Stock Exchange (TSCO) where any UK resident can purchase a share. Being a PLC means that the
shareholders in Tesco have limited liability. This prevents individuals from being held personally
responsible for financial losses of Tesco. Additional impacts of being a PLC include Tesco having the
ability to raise additional funds through share capital and see an increase in negotiation
opportunities with suppliers in terms of prices because larger businesses can achieve economies of
Tesco PLC’s share price on the London
Stock Exchange
Evidence of Tesco’s ownership type being
a private sector organisation as it is a
Public Limited Company.
https://
www.londonstockexchange.com/stock/
TSCO/tesco-plc/company-page
scale.
, U1A1 – EXPLORING BUSINESS
The British Heart Foundation is a not-for-profit organisation with the main intention of making funds
to fight heart and circulatory disease either through financial support or physical means. Money is
divided between efforts to generate more funds, support & treatment, and research & prevention.
Being a not-for-profit organisation means that they do not have any shareholders. BHF is not held
liable for financial loss or loss of life – as stated on their website “liability to third parties for
accidental loss or damage to property or for death, injury or disease” arising out of the activities of
the group and including 'liability arising from goods sold or supplied'.
Purposes
Tesco provides both products and services. Their products are predominantly food, drinks, books,
clothing, electronics, furniture, toys, and petrol. Their services are predominantly software, financial
services, Tesco Café, Tesco mobile and delivery for their products. Tesco focus on ease for the
customer with different shopping methods (Click & Collect, Scan-As-You-Go, Home Delivery and
traditional walking around the shop). In addition to this, Tesco UK have varied shops such as Tesco
Express, Tesco Extra, and One Stop. These iterations of Tesco are more local and more convenient
for the customer. They do this in order to attract greater encouragement to shop at Tesco and
further make a profit for themselves and their shareholders, this granting them a return on
investment.
British Heart Foundation offer products to customers with 100% profit going to the charity’s funds.
As stated by the BHF, they raise funds for research to overall prevent, detect, treat, and cure all
heart and circulatory diseases (bhf.org.uk). Products sold by the charity are donated goods, these
are predominantly (clothes, electronics, furniture, and toys).
Sector
Tesco is a tertiary sector operator. This is as the company offers a service to customers and does not
have their own farms, Tesco are seemingly misleading by selling products named after farms;
Rosedene Farms, Boswell Farms, Willow Farms – this is to assist in selling the product and not an
indication that they have grown the produce themselves. This being considered, Tesco do still come
under the secondary sector as they manufacture and sell their own products e.g., Tesco value, Tesco
finest etc. Predominantly Tesco acts as a retail distributor, taking products from its suppliers to sell
to its customers on the internet and in-store.
The British Heart Foundation is a registered charity in England, Wales, and Scotland Whilst being
registered as a company in England and Wales. The British Heart Foundation only falls under the
tertiary sector operator title. This is as the company offers products to customers.
Scope
Tesco is a multinational business as they operate In 4 other countries outside the UK. They have
previously retained their scope from North America and Asia back down to just Europe. Now Tesco
only operate in Hungary, Slovakia, Czech Republic, Ireland, and the UK. However, they still trade
globally, yet are now setting preference to products made in the operating country.
https://www.tescoplc.com/about/our-businesses/
BHF, on the contrary, is a national charity operating research and retail projects in the UK. This being
considered, funding from UK based income streams sees a percentage sent to other research
scientists which may use the money abroad. This can be seen stated on:
https://www.bhf.org.uk/what-we-do/bhf-strategy
, U1A1 – EXPLORING BUSINESS
Size
Tesco, in their 2021 annual report, have stated they employ 169,852 male employees and 191,919
female employees globally. For a total 361,771 employees. This places Tesco in the large company
category.
BHF, in their 2021 annual report, have stated they employee over 4000 people – not including
volunteers*. This also places the company in the large company category, despite being significantly
smaller than Tesco.
Explain how two contrasting businesses are influenced by stakeholders (P2)
Assess the relationship and communication with stakeholders of two contrasting businesses using
independent research (M1)
In this section of my report I will be looking at two contrasting businesses; how both of them
communicate with their stakeholders, their relationship with their stakeholders, and how they are
ifluenced by their stake holders.
There are stakeholders for every company- stakeholders range from individuals, people's groups, or
businesses and organisations. Stakeholders can have frequent contact with the company or just
occasional contact with the company. Stake Holders can be internal and external.
Different types of stake holders
Internal Stake holders
Employees
Employees within a business play a significant role in what direction the business goes. The
employees do the physical labour and are the workers – without them, majority of the time, the
business will not be able to operate. This depends on the type of business. As a result of this,
employees must have workers’ rights as well as given various exclusives.
Volunteers
Volunteers are the same as employees but do it out of their own time and are not paid for their
work. Volunteers can often have less responsibility and less decision making says because they are
often less senior than employees – especially with in a trust.
Owners
Owners and shareholders are some of, if not the most important stake holders, they control and
strongly influence the business. If they are unsatisfied then decisions directors or managers have
made, they can inform them and or sack them. No business can stay afloat and generate continuous
profits if they ignore their customers. With no profit a company will go bankrupt.
Trustees
, U1A1 – EXPLORING BUSINESS
Trustees only really appear in non-profit organisations; they take similar roles as owners but do not
receive a salary. A trustee also takes legal ownership of the assets held by a trust and is responsible
for managing those assets and carrying out the purposes of the trust.
Board of Directors
The board of directors is a group of people who collectively supervise and oversee the activities and
operations of an organisation. They play a similar role to trustee’s however these are paid positions
and are not volunteers.
Managers
Manager’s roles are to oversee, control, lead and undertake the administering of an organisation or
group of staff. Managers have chosen to work at a company or worked they way up through a
company to get to where they are, they also must hold an interest to take up such an important role
within an organisation.
External Stake Holders
Customers
Any company that retails a product or service to customers, subconsciously suggest that customers
are significant stakeholders and have a great influence over the company. This is as their money is
what is funding their operations. Customer feedback and interaction is vital for a company.
Companies that take a blind eye to criticism often do not need to care or have no need to get a
competitive edge over their competitors (market leader or no competition). If a consumer decides
they do not like one company, they can choose to take their custom elsewhere hence influencing the
actions of major companies.
Suppliers
Suppliers have a direct influence on the company, their problems, needs, and interests are priority
for an organisation. Without them, shops have nothing to sell. Problems for suppliers can range from
sourcing raw materials to helping ramp up the effectivity of production. Businesses should work
closely alongside their suppliers to get the most out of their products and relationship. The price of
supplies will be directly corelated to how much it costs the company to produce a product. Suppliers
can charge what they like but if they are excoriate to a business, a business can seek to find a new
supplier.
Donators
Donators often support non-profit organisations. They can donate tangible goods or just money,
they often do this as they believe in an organisations mission. This also highlights how they are
interested in the company’s success, which makes them a stakeholder. This makes them a
stakeholder.
Local and National Communities
The actions of a business can have a dramatic effect on communities. If a supermarket brought a
vast amount of land the public may not be pleased by the noise pollution and changes to
Features contributing to the success of contrasting businesses.
In this report I will be looking at the features contributing towards success for both contrasting
businesses, The British Heart Foundation and Tesco.
Explain the features of two contrasting businesses (P1)
Tesco is a profitable British company and is one of the largest retailers across Europe - measured by
profits. The British Heart Foundation is a British Charity from Camden, London, with the main
intention of generating funds to research preventions, treatments, and cures for all heart and
circulatory diseases.
Ownership and liability
Tesco is a private sector organisation with the main intention of making a profit. Tesco’s legal form
of ownership is a public limited company (Tesco PLC), and its shares are exchanged on the London
Stock Exchange (TSCO) where any UK resident can purchase a share. Being a PLC means that the
shareholders in Tesco have limited liability. This prevents individuals from being held personally
responsible for financial losses of Tesco. Additional impacts of being a PLC include Tesco having the
ability to raise additional funds through share capital and see an increase in negotiation
opportunities with suppliers in terms of prices because larger businesses can achieve economies of
Tesco PLC’s share price on the London
Stock Exchange
Evidence of Tesco’s ownership type being
a private sector organisation as it is a
Public Limited Company.
https://
www.londonstockexchange.com/stock/
TSCO/tesco-plc/company-page
scale.
, U1A1 – EXPLORING BUSINESS
The British Heart Foundation is a not-for-profit organisation with the main intention of making funds
to fight heart and circulatory disease either through financial support or physical means. Money is
divided between efforts to generate more funds, support & treatment, and research & prevention.
Being a not-for-profit organisation means that they do not have any shareholders. BHF is not held
liable for financial loss or loss of life – as stated on their website “liability to third parties for
accidental loss or damage to property or for death, injury or disease” arising out of the activities of
the group and including 'liability arising from goods sold or supplied'.
Purposes
Tesco provides both products and services. Their products are predominantly food, drinks, books,
clothing, electronics, furniture, toys, and petrol. Their services are predominantly software, financial
services, Tesco Café, Tesco mobile and delivery for their products. Tesco focus on ease for the
customer with different shopping methods (Click & Collect, Scan-As-You-Go, Home Delivery and
traditional walking around the shop). In addition to this, Tesco UK have varied shops such as Tesco
Express, Tesco Extra, and One Stop. These iterations of Tesco are more local and more convenient
for the customer. They do this in order to attract greater encouragement to shop at Tesco and
further make a profit for themselves and their shareholders, this granting them a return on
investment.
British Heart Foundation offer products to customers with 100% profit going to the charity’s funds.
As stated by the BHF, they raise funds for research to overall prevent, detect, treat, and cure all
heart and circulatory diseases (bhf.org.uk). Products sold by the charity are donated goods, these
are predominantly (clothes, electronics, furniture, and toys).
Sector
Tesco is a tertiary sector operator. This is as the company offers a service to customers and does not
have their own farms, Tesco are seemingly misleading by selling products named after farms;
Rosedene Farms, Boswell Farms, Willow Farms – this is to assist in selling the product and not an
indication that they have grown the produce themselves. This being considered, Tesco do still come
under the secondary sector as they manufacture and sell their own products e.g., Tesco value, Tesco
finest etc. Predominantly Tesco acts as a retail distributor, taking products from its suppliers to sell
to its customers on the internet and in-store.
The British Heart Foundation is a registered charity in England, Wales, and Scotland Whilst being
registered as a company in England and Wales. The British Heart Foundation only falls under the
tertiary sector operator title. This is as the company offers products to customers.
Scope
Tesco is a multinational business as they operate In 4 other countries outside the UK. They have
previously retained their scope from North America and Asia back down to just Europe. Now Tesco
only operate in Hungary, Slovakia, Czech Republic, Ireland, and the UK. However, they still trade
globally, yet are now setting preference to products made in the operating country.
https://www.tescoplc.com/about/our-businesses/
BHF, on the contrary, is a national charity operating research and retail projects in the UK. This being
considered, funding from UK based income streams sees a percentage sent to other research
scientists which may use the money abroad. This can be seen stated on:
https://www.bhf.org.uk/what-we-do/bhf-strategy
, U1A1 – EXPLORING BUSINESS
Size
Tesco, in their 2021 annual report, have stated they employ 169,852 male employees and 191,919
female employees globally. For a total 361,771 employees. This places Tesco in the large company
category.
BHF, in their 2021 annual report, have stated they employee over 4000 people – not including
volunteers*. This also places the company in the large company category, despite being significantly
smaller than Tesco.
Explain how two contrasting businesses are influenced by stakeholders (P2)
Assess the relationship and communication with stakeholders of two contrasting businesses using
independent research (M1)
In this section of my report I will be looking at two contrasting businesses; how both of them
communicate with their stakeholders, their relationship with their stakeholders, and how they are
ifluenced by their stake holders.
There are stakeholders for every company- stakeholders range from individuals, people's groups, or
businesses and organisations. Stakeholders can have frequent contact with the company or just
occasional contact with the company. Stake Holders can be internal and external.
Different types of stake holders
Internal Stake holders
Employees
Employees within a business play a significant role in what direction the business goes. The
employees do the physical labour and are the workers – without them, majority of the time, the
business will not be able to operate. This depends on the type of business. As a result of this,
employees must have workers’ rights as well as given various exclusives.
Volunteers
Volunteers are the same as employees but do it out of their own time and are not paid for their
work. Volunteers can often have less responsibility and less decision making says because they are
often less senior than employees – especially with in a trust.
Owners
Owners and shareholders are some of, if not the most important stake holders, they control and
strongly influence the business. If they are unsatisfied then decisions directors or managers have
made, they can inform them and or sack them. No business can stay afloat and generate continuous
profits if they ignore their customers. With no profit a company will go bankrupt.
Trustees
, U1A1 – EXPLORING BUSINESS
Trustees only really appear in non-profit organisations; they take similar roles as owners but do not
receive a salary. A trustee also takes legal ownership of the assets held by a trust and is responsible
for managing those assets and carrying out the purposes of the trust.
Board of Directors
The board of directors is a group of people who collectively supervise and oversee the activities and
operations of an organisation. They play a similar role to trustee’s however these are paid positions
and are not volunteers.
Managers
Manager’s roles are to oversee, control, lead and undertake the administering of an organisation or
group of staff. Managers have chosen to work at a company or worked they way up through a
company to get to where they are, they also must hold an interest to take up such an important role
within an organisation.
External Stake Holders
Customers
Any company that retails a product or service to customers, subconsciously suggest that customers
are significant stakeholders and have a great influence over the company. This is as their money is
what is funding their operations. Customer feedback and interaction is vital for a company.
Companies that take a blind eye to criticism often do not need to care or have no need to get a
competitive edge over their competitors (market leader or no competition). If a consumer decides
they do not like one company, they can choose to take their custom elsewhere hence influencing the
actions of major companies.
Suppliers
Suppliers have a direct influence on the company, their problems, needs, and interests are priority
for an organisation. Without them, shops have nothing to sell. Problems for suppliers can range from
sourcing raw materials to helping ramp up the effectivity of production. Businesses should work
closely alongside their suppliers to get the most out of their products and relationship. The price of
supplies will be directly corelated to how much it costs the company to produce a product. Suppliers
can charge what they like but if they are excoriate to a business, a business can seek to find a new
supplier.
Donators
Donators often support non-profit organisations. They can donate tangible goods or just money,
they often do this as they believe in an organisations mission. This also highlights how they are
interested in the company’s success, which makes them a stakeholder. This makes them a
stakeholder.
Local and National Communities
The actions of a business can have a dramatic effect on communities. If a supermarket brought a
vast amount of land the public may not be pleased by the noise pollution and changes to
