Jake Watkins
Unit 1 Assignment 1
NKI
Features contributing to the success of a contrasting business
Explain the features of two contrasting businesses:
Tesco:
Tesco was founded in 1919 by Jack Cohen and is now the largest British supermarket in the UK with
a market share of around 27%, making Tesco the largest business in the supermarket industry in the
UK. Tesco has been voted Britain’s favourite supermarket by customers for the last 5 years and have
around 4,000 stores in the UK and employs 450,000 people.
Ownership and Liability:
Tesco is a for-profit and a public limited company (PLC), they sell shares on the London stock
exchange so they draw shareholders in so shares can be traded within the business. Because Tesco is
a PLC, they have limited liability meaning that they can only lose up to the amount they invest and
are under part of the economy that is not under direct influence through state control, the business
can raise a large capital sum because there is no limit to the number of shareholders. Furthermore,
Tesco being a PLC helps them bring more money into the firm for investment because they gain
extra cash through having more shareholders enabling them to use this cash for various things such
as paying suppliers or investment. In addition, Tesco is a for-profit business because they aim to earn
profit through their operations and are only concerned about their own interests. Law Aspect (n.d.)
Purpose:
The main purpose of a PLC is to provide high quality goods and services and to ensure they get the
products required. This enables Tesco themselves to maximise their profits from shareholders and to
maintain a good relationship with customers and stakeholders.
According to Tesco PLC themselves, their purpose is ‘serving shoppers a little better every day’ and
their motto is ‘every little helps’. Tesco aim to provide high quality products ranging from groceries,
electronics and clothing items, they approximately sell 40,000 food products in its superstores. Data
Monitor (2004)
Sector:
Primary sector- Involves acquiring raw materials. For example: oil must be drilled from the ground,
metal and coal must be mined. This can also be known as extractive production.
Secondary sector- This is the manufacturing and assembly process where the raw materials are
converted into components. An example is farmed vegetables, they need to be prepared in some
way by the secondary sector, so they are fit for sale.
Tertiary Sector- This refers to the commercial services which store and distribute the goods that
have been prepared or manufactured. E.g. advertising, transport and insurance.
Quaternary Sector- Employees make up approximately 75% of the UK workforce. The quaternary
sector provides support services and sometimes overlaps with the tertiary sector because they are
both service sectors. Industries in the quaternary sector include research and development (R&D),
ICT and consultancy.
1
,Jake Watkins
Unit 1 Assignment 1
NKI
Tesco comes under the tertiary sector because they do not make products, but they provide a
valuable service that customers and other enterprises will want to use.
Size and Scope:
Local- A local scope business is an enterprise that sells their goods and services around the local area
they operate in. An example of a local scope business is a hairdresser, they offer their service of
cutting people’s hair to the local area they operate in.
National- National scope businesses can be franchises; this is because they operate within borders of
a particular country and understand the culture of the company, so they use glocalisation with their
products and services to satisfy the market they are operating in. For example, McDonalds is a
multinational company that operates in 119 countries, so to reach their target market they glocalise
their menu to suit cultural differences. In India they have a McAloo Tikki Vegetarian burger to meet
the Indian market. In addition, national businesses have more locations than local businesses so they
can use competitive pricing to compete with rivals, this is because they buy their raw materials.
Therefore, buying more equates to a lower cost. Mathew (2019)
International- International scope business do business transactions that take place across national
borders and has access to a larger market than local and national businesses do. It includes
importing and exporting goods and direct investments. The largest international business activity is
the foreign trade comprising imports and exports.
Tesco operates as an international business because they have around 7,000 stores across various
locations, with over half of them being in the UK. Furthermore, because Tesco have access to a
larger market this means that higher profits are generated for them in comparison to local and
national businesses where they either operate in the local area or within borders of a particular
country.
Wunsch (2019)
https://www.statista.com/statistics/
238667/tesco-plc-number-of-outlets-
worldwide/#:~:text=Tesco's%20number
%20of%20stores%20worldwide
%202008%2D2019&text=Between
%202008%20and%202019%2C
%20the,risen%20from%203.751%20to
%206%2C993.
Tesco is considered a large organisation. They have around 7,000 stores worldwide in 2019 whilst
employing over 500,000 people worldwide where over half of their employees are in the UK and
having over 16 million Clubcard members, showing they are a brand loyal business.
British Heart Foundation:
The British heart foundation (BHF) was founded in 1961 by a group of medical professionals who
were concerned about the increasing death rates in cardiovascular disease. BHF have come a long
2
, Jake Watkins
Unit 1 Assignment 1
NKI
way since starting, in 2018-2019 BHF invested £9.4m into research for heart attacks whilst funding
over £100 million yearly for research into heart and circulatory diseases. Although, due to the
current pandemic BHF will probably have to halve its annual £100m into research yearly. BHF Annual
Reports and Accounts (2020)
Ownership and Liability:
BHF is a not-for-profit organisation. Non-profit organisations do not earn profits for their owners,
they have dedication to raising awareness for a social cause (BHF’s is helping fight cardiovascular
diseases.) Furthermore, BHF is a registered charitable trust in England, Scotland and Wales and is a
company limited by guarantee, meaning that BHF is a type of corporation used for non-profit that
require legal responsibility. Furthermore, BHF rely on donations from fundraisers, gifts in wills and
challenge events such as London to Brighton bike ride, so that they can conduct their research into
various heart and circulatory diseases. BHF Press Office (2015)
Similarly, BHF have limited liability like Tesco, meaning that they can only lose up to the amount they
invest.
Purpose:
According to BHF themselves, heart disease kills 1 in 4 people in the UK, so their purpose of the
research they conduct is to ‘protect the people’ they love. They research cures and treatments for
heart and circulatory disease and fund extra research into causes and diagnostics of heart disease.
To meet this objective, BHF rely on donations from the 750 UK shops they have, where they take in
furniture and electrical items.
This is how BHF invested their
money to serve their purpose from
2019-2020:
https://www.bhf.org.uk/what-we-
do/annual-report-2020
Sector:
3
Unit 1 Assignment 1
NKI
Features contributing to the success of a contrasting business
Explain the features of two contrasting businesses:
Tesco:
Tesco was founded in 1919 by Jack Cohen and is now the largest British supermarket in the UK with
a market share of around 27%, making Tesco the largest business in the supermarket industry in the
UK. Tesco has been voted Britain’s favourite supermarket by customers for the last 5 years and have
around 4,000 stores in the UK and employs 450,000 people.
Ownership and Liability:
Tesco is a for-profit and a public limited company (PLC), they sell shares on the London stock
exchange so they draw shareholders in so shares can be traded within the business. Because Tesco is
a PLC, they have limited liability meaning that they can only lose up to the amount they invest and
are under part of the economy that is not under direct influence through state control, the business
can raise a large capital sum because there is no limit to the number of shareholders. Furthermore,
Tesco being a PLC helps them bring more money into the firm for investment because they gain
extra cash through having more shareholders enabling them to use this cash for various things such
as paying suppliers or investment. In addition, Tesco is a for-profit business because they aim to earn
profit through their operations and are only concerned about their own interests. Law Aspect (n.d.)
Purpose:
The main purpose of a PLC is to provide high quality goods and services and to ensure they get the
products required. This enables Tesco themselves to maximise their profits from shareholders and to
maintain a good relationship with customers and stakeholders.
According to Tesco PLC themselves, their purpose is ‘serving shoppers a little better every day’ and
their motto is ‘every little helps’. Tesco aim to provide high quality products ranging from groceries,
electronics and clothing items, they approximately sell 40,000 food products in its superstores. Data
Monitor (2004)
Sector:
Primary sector- Involves acquiring raw materials. For example: oil must be drilled from the ground,
metal and coal must be mined. This can also be known as extractive production.
Secondary sector- This is the manufacturing and assembly process where the raw materials are
converted into components. An example is farmed vegetables, they need to be prepared in some
way by the secondary sector, so they are fit for sale.
Tertiary Sector- This refers to the commercial services which store and distribute the goods that
have been prepared or manufactured. E.g. advertising, transport and insurance.
Quaternary Sector- Employees make up approximately 75% of the UK workforce. The quaternary
sector provides support services and sometimes overlaps with the tertiary sector because they are
both service sectors. Industries in the quaternary sector include research and development (R&D),
ICT and consultancy.
1
,Jake Watkins
Unit 1 Assignment 1
NKI
Tesco comes under the tertiary sector because they do not make products, but they provide a
valuable service that customers and other enterprises will want to use.
Size and Scope:
Local- A local scope business is an enterprise that sells their goods and services around the local area
they operate in. An example of a local scope business is a hairdresser, they offer their service of
cutting people’s hair to the local area they operate in.
National- National scope businesses can be franchises; this is because they operate within borders of
a particular country and understand the culture of the company, so they use glocalisation with their
products and services to satisfy the market they are operating in. For example, McDonalds is a
multinational company that operates in 119 countries, so to reach their target market they glocalise
their menu to suit cultural differences. In India they have a McAloo Tikki Vegetarian burger to meet
the Indian market. In addition, national businesses have more locations than local businesses so they
can use competitive pricing to compete with rivals, this is because they buy their raw materials.
Therefore, buying more equates to a lower cost. Mathew (2019)
International- International scope business do business transactions that take place across national
borders and has access to a larger market than local and national businesses do. It includes
importing and exporting goods and direct investments. The largest international business activity is
the foreign trade comprising imports and exports.
Tesco operates as an international business because they have around 7,000 stores across various
locations, with over half of them being in the UK. Furthermore, because Tesco have access to a
larger market this means that higher profits are generated for them in comparison to local and
national businesses where they either operate in the local area or within borders of a particular
country.
Wunsch (2019)
https://www.statista.com/statistics/
238667/tesco-plc-number-of-outlets-
worldwide/#:~:text=Tesco's%20number
%20of%20stores%20worldwide
%202008%2D2019&text=Between
%202008%20and%202019%2C
%20the,risen%20from%203.751%20to
%206%2C993.
Tesco is considered a large organisation. They have around 7,000 stores worldwide in 2019 whilst
employing over 500,000 people worldwide where over half of their employees are in the UK and
having over 16 million Clubcard members, showing they are a brand loyal business.
British Heart Foundation:
The British heart foundation (BHF) was founded in 1961 by a group of medical professionals who
were concerned about the increasing death rates in cardiovascular disease. BHF have come a long
2
, Jake Watkins
Unit 1 Assignment 1
NKI
way since starting, in 2018-2019 BHF invested £9.4m into research for heart attacks whilst funding
over £100 million yearly for research into heart and circulatory diseases. Although, due to the
current pandemic BHF will probably have to halve its annual £100m into research yearly. BHF Annual
Reports and Accounts (2020)
Ownership and Liability:
BHF is a not-for-profit organisation. Non-profit organisations do not earn profits for their owners,
they have dedication to raising awareness for a social cause (BHF’s is helping fight cardiovascular
diseases.) Furthermore, BHF is a registered charitable trust in England, Scotland and Wales and is a
company limited by guarantee, meaning that BHF is a type of corporation used for non-profit that
require legal responsibility. Furthermore, BHF rely on donations from fundraisers, gifts in wills and
challenge events such as London to Brighton bike ride, so that they can conduct their research into
various heart and circulatory diseases. BHF Press Office (2015)
Similarly, BHF have limited liability like Tesco, meaning that they can only lose up to the amount they
invest.
Purpose:
According to BHF themselves, heart disease kills 1 in 4 people in the UK, so their purpose of the
research they conduct is to ‘protect the people’ they love. They research cures and treatments for
heart and circulatory disease and fund extra research into causes and diagnostics of heart disease.
To meet this objective, BHF rely on donations from the 750 UK shops they have, where they take in
furniture and electrical items.
This is how BHF invested their
money to serve their purpose from
2019-2020:
https://www.bhf.org.uk/what-we-
do/annual-report-2020
Sector:
3
