Unit 1 Assignment 1: Features contributing to the success of contrasting businesses
Business 1 (PLC) – Mercedes Benz
Business 2 (Non-Profit) – Cancer Research UK
Business 1: Mercedes Benz Group
Characteristics
M-B was founded in 1926 and is one of the world’s leading car manufacturers. M-B’s marques are
Mercedes Benz for cars and vans and Smart. It has shares in other vehicle manufactures such as Daimler
Truck (founded as a wholly owned subsidiary of the group), Denza, BAIC Motor and Aston Martin. They
currently have around 172,000 employees. M-B manufacture multiple types of automotive vehicles from
everyday cars, trucks, vans, lorries, and high-performance sports cars. They have motorsport teams in
Formula 1, Formula E. Subsidiaries of M-B group include Mercedes AMG who manufacture high
performance engines. M-B Group is a for profit business, meaning the main aim of the business is to make
a profit on the products and services they sell. In 2021 M-B Group turned over a revenue of 167.9b Euros, a
13.6 billion euros increase on the previous year in 2020. Businesses like M-B group usually measure their
success on statistics like units sold, revenue, profit, and market share.
Ownership
Mercedes Benz Group is a Public Limited Company, meaning that the company is listed on the stock
exchange and the general public can buy shares and become a shareholder of the business. Being a PLC has
advantages for both the company and shareholders. Firstly, the company can raise large amounts of capital
through the public issue of shares, this capital can be used to expand the business physically, expand into
new markets, fund research and testing of products or pay off existing debt. Currently one share for M-B
Group is $58.83. Furthermore, having public shareholders means that the risk of ownership is spread over
a large number of shareholders, leaving less risk for majority shareholders. An advantage for the
shareholders is that M-B Group pay dividends per share, last year M-B Group paid a 5-euro dividend per
share. However, there is also disadvantages to being a PLC. For example, companies have more regulatory
requirements such as they must be more transparent around their accounts and have to publish their
annual account reports within 6 months of the end of the financial year. Additionally, PLCs require at least
two directors whereas only one is required for a Private Limited Company. PLCs are also more vulnerable
to takeovers if a majority of shareholders agree to bid. Finally, PLCs are also more vulnerable to ownership
and control issues. LTDs are more selective on who can buy shares in the company, so these shareholders
are known to company owners and directors. Whereas in a PLC anyone can buy large shares in the
business. Being a PLC means that M-B Group has limited liability. This means that shareholders are only
responsible for company debts to the extent of the value of their shares in the business. This could
encourage potential shareholders to invest in the business knowing that they will only lose what they
invest if the company goes bankrupt.
Size and Scope
Mercedes-Benz Group is classed as a large business, with over 172,000 employees it is a huge international
business and has a large share of the international car manufacturing market. M-B group operates
internationally meaning it operates in multiple countries across the world. The company headquarters are
based in Stuttgart in Germany, but they have production plants in 22 countries and sell their products and
, Unit 1 Assignment 1: Features contributing to the success of contrasting businesses
services in nearly every country in the world. They sold between 1.9m and 2m vehicles across the world in
2021. M-B group has been one of the biggest automobile manufacturers for decades, Mercedes-Benz as a
name is often associated with high-end, high-quality products. This reputation helps to drive sales because
people know when they purchase a vehicle from them, they can expect high quality. Furthermore, the
huge size and finances of the business allow them to advertise in thousands of locations from posters on
public transport, TV adverts or having the naming rights of sports arenas. Also, the large number of
employees that M-B Group has means they have thousands of highly skilled individuals and creative minds
that help the business run smoothly and efficiently whilst producing high quality products, as a result
Mercedes-Benz produce and sell millions of vehicles every year. The Mercedes brand may also attract
people who want to work for the business. Mercedes offers a pension scheme, discounts on holidays,
insurance and shops and some employees even get their own Mercedes-Benz. They are able to offer this
because Mercedes-Benz is a multi-billion-dollar business, and they also want to attract the best candidates
to work in their business.
Sector
M-B group’s main purpose is to manufacture products such as cars, vans and lorries to sell to the general
public. They have been manufacturing vehicles since 1926 so this is definitely their main business
operation. This means that they are part of the secondary sector. They also offer services such as repairs
and car servicing to vehicles they have sold; and of course, they do research and testing on vehicles they
are developing because Mercedes-Benz are considered one of the pioneering and most influential vehicle
manufacturers in the world.
M-B Group is a for profit business meaning that one of, if not their main aims is to either turn over or
increase profit at the end of the financial year. For example, according to www.just-auto.com M-B Group
made a net profit of up to 14.2b euros, so their main aim for the next year may be to increase profit to
possibly 15.5b euros. M-B Group operate in the private sector, this means that they are not funded or run
by the government or state and instead they are privately owned. There are currently over one billion
outstanding shares in M-B group across the globe, 53.1% of these are institutional investors such as the
Chinese BAIC Group who currently hold 10% of the voting rights. Whilst 20.4% of the shares are retail
investors, these are non-professional investors who can buy shares on the stock exchange.
Aims and Objectives of Mercedes Benz
Aims of Mercedes-Benz:
• Increasing annual profit
• Providing high end products
• Reducing environmental impact
• Increasing market share
Objectives of Mercedes-Benz
• 5% increase in sales each year
• Reducing number of entry level models, without reducing sales volume in this
• Minimising the use of raw materials
• Using renewable energy
A huge business, like M-B Group, can have multiple aims and objectives that can be things to do with
finance, carbon emissions or the products they sell. For example, Mercedes has many aims that the
, Unit 1 Assignment 1: Features contributing to the success of contrasting businesses
business has published on their website. Firstly, by 2026 they want to achieve around 5% more sales per
year, particularly in their top-end luxury and core luxury products. They will want to do this because
increased sales means increased revenue which often means increased profit as long as their expenditure
doesn’t increase more than their revenue. When a business set aims & objectives, they should consider
whether they are SMART. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant
and Time-bound. These are 5 things that any aim or objective should be. Specific means that there has to
be a clear vision of what the business wants to achieve. For example, Mercedes-Benz want to achieve 5%
higher sales each year. This is specific because they have a figure they want to achieve. Measurable mean
that they can measure their progress towards achieving their aim, Mercedes’ aim of increasing sales is
measurable because Product Sales is a figure that can be tracked and checked. Achievable means that the
aim or objective has to be realistic to the size, growth and state of the business. For example, Mercedes’
aim of increasing sales by 5% is realistic because they are a huge business who have a large share of the
market and have been leaders in the vehicle sector for decades. When considering aims & objectives the
business needs to ensure they are relevant, meaning they need to consider how it will benefit the business
and whether it is something they need to achieve at this moment in time. Using the same example of
Mercedes’ sales aim, this aim is relevant to Mercedes because achieving this means they can have a larger
share of the market and with increased sales is increased income from those sales, leading to potentially
higher profits each year. Finally, aims & objectives need to be time based. The business needs to be able to
have an idea of when they want to achieve this target, this allows them to know if they are on track to
achieve it and when to review their aims and objectives. Mercedes aims to increase their sales by 5% each
year, so they know they will need to review this objective each year. Aims and objectives help every
business, no matter the size, to grow and expand physically and financially. For example, Mercedes-Benz’s
objective of reducing their carbon footprint and impact on the environment. The fact they are sourcing
energy and materials from sustainable sources this may be a factor in a customer deciding whether they
want to purchase their products over their competitors. A lot of potential customers now look at how a
business tries to reduce their impact on the environment because a lot of people are trying to reduce their
own carbon footprint. So, if a customer sees that Mercedes source their own energy or use recycled metals
this may be a reason, they decide to purchase a Mercedes-Benz product, and this may contribute to their
aim of increasing sales and market share.
Reasons for Success
Different types of businesses measure success in different ways. For example, a for profit business such as
Mercedes-Benz are likely to measure their success on figures such as units sold, revenue and profit and
their market share. This is because the main aim of the business is to make money and top their
competitors in doing so. Mercedes-Benz is an incredibly successful business in the automobile industry. We
know they are successful because they had a revenue of 167.9bn euros in 2021 which is an increase of 13.6
billion euros on the previous year. They also sold 2.75mn units in 2021, which is actually 90,000 less units
than 2020 but yet their revenue increased. A for-profit business such as Mercedes would consider that a
successful year because their revenue increased, and they also turned over a profit of 14.2b euros. There
are many reasons for the continued success of Mercedes. Firstly, the brand of Mercedes-Benz is recognised
worldwide as a high-end brand that manufactures some of the most reliable, high performance and
aesthetically pleasing vehicles ever made. With this comes a loyal customer base, people who buy a
Mercedes vehicle usually buy one due to this reputation and often their next vehicle purchase will also be
a Mercedes. Some of the main reasons listed for customer loyalty to Mercedes are the quality of their
products, reliability both with the product but also their customer service and also brand affinity.
Business 1 (PLC) – Mercedes Benz
Business 2 (Non-Profit) – Cancer Research UK
Business 1: Mercedes Benz Group
Characteristics
M-B was founded in 1926 and is one of the world’s leading car manufacturers. M-B’s marques are
Mercedes Benz for cars and vans and Smart. It has shares in other vehicle manufactures such as Daimler
Truck (founded as a wholly owned subsidiary of the group), Denza, BAIC Motor and Aston Martin. They
currently have around 172,000 employees. M-B manufacture multiple types of automotive vehicles from
everyday cars, trucks, vans, lorries, and high-performance sports cars. They have motorsport teams in
Formula 1, Formula E. Subsidiaries of M-B group include Mercedes AMG who manufacture high
performance engines. M-B Group is a for profit business, meaning the main aim of the business is to make
a profit on the products and services they sell. In 2021 M-B Group turned over a revenue of 167.9b Euros, a
13.6 billion euros increase on the previous year in 2020. Businesses like M-B group usually measure their
success on statistics like units sold, revenue, profit, and market share.
Ownership
Mercedes Benz Group is a Public Limited Company, meaning that the company is listed on the stock
exchange and the general public can buy shares and become a shareholder of the business. Being a PLC has
advantages for both the company and shareholders. Firstly, the company can raise large amounts of capital
through the public issue of shares, this capital can be used to expand the business physically, expand into
new markets, fund research and testing of products or pay off existing debt. Currently one share for M-B
Group is $58.83. Furthermore, having public shareholders means that the risk of ownership is spread over
a large number of shareholders, leaving less risk for majority shareholders. An advantage for the
shareholders is that M-B Group pay dividends per share, last year M-B Group paid a 5-euro dividend per
share. However, there is also disadvantages to being a PLC. For example, companies have more regulatory
requirements such as they must be more transparent around their accounts and have to publish their
annual account reports within 6 months of the end of the financial year. Additionally, PLCs require at least
two directors whereas only one is required for a Private Limited Company. PLCs are also more vulnerable
to takeovers if a majority of shareholders agree to bid. Finally, PLCs are also more vulnerable to ownership
and control issues. LTDs are more selective on who can buy shares in the company, so these shareholders
are known to company owners and directors. Whereas in a PLC anyone can buy large shares in the
business. Being a PLC means that M-B Group has limited liability. This means that shareholders are only
responsible for company debts to the extent of the value of their shares in the business. This could
encourage potential shareholders to invest in the business knowing that they will only lose what they
invest if the company goes bankrupt.
Size and Scope
Mercedes-Benz Group is classed as a large business, with over 172,000 employees it is a huge international
business and has a large share of the international car manufacturing market. M-B group operates
internationally meaning it operates in multiple countries across the world. The company headquarters are
based in Stuttgart in Germany, but they have production plants in 22 countries and sell their products and
, Unit 1 Assignment 1: Features contributing to the success of contrasting businesses
services in nearly every country in the world. They sold between 1.9m and 2m vehicles across the world in
2021. M-B group has been one of the biggest automobile manufacturers for decades, Mercedes-Benz as a
name is often associated with high-end, high-quality products. This reputation helps to drive sales because
people know when they purchase a vehicle from them, they can expect high quality. Furthermore, the
huge size and finances of the business allow them to advertise in thousands of locations from posters on
public transport, TV adverts or having the naming rights of sports arenas. Also, the large number of
employees that M-B Group has means they have thousands of highly skilled individuals and creative minds
that help the business run smoothly and efficiently whilst producing high quality products, as a result
Mercedes-Benz produce and sell millions of vehicles every year. The Mercedes brand may also attract
people who want to work for the business. Mercedes offers a pension scheme, discounts on holidays,
insurance and shops and some employees even get their own Mercedes-Benz. They are able to offer this
because Mercedes-Benz is a multi-billion-dollar business, and they also want to attract the best candidates
to work in their business.
Sector
M-B group’s main purpose is to manufacture products such as cars, vans and lorries to sell to the general
public. They have been manufacturing vehicles since 1926 so this is definitely their main business
operation. This means that they are part of the secondary sector. They also offer services such as repairs
and car servicing to vehicles they have sold; and of course, they do research and testing on vehicles they
are developing because Mercedes-Benz are considered one of the pioneering and most influential vehicle
manufacturers in the world.
M-B Group is a for profit business meaning that one of, if not their main aims is to either turn over or
increase profit at the end of the financial year. For example, according to www.just-auto.com M-B Group
made a net profit of up to 14.2b euros, so their main aim for the next year may be to increase profit to
possibly 15.5b euros. M-B Group operate in the private sector, this means that they are not funded or run
by the government or state and instead they are privately owned. There are currently over one billion
outstanding shares in M-B group across the globe, 53.1% of these are institutional investors such as the
Chinese BAIC Group who currently hold 10% of the voting rights. Whilst 20.4% of the shares are retail
investors, these are non-professional investors who can buy shares on the stock exchange.
Aims and Objectives of Mercedes Benz
Aims of Mercedes-Benz:
• Increasing annual profit
• Providing high end products
• Reducing environmental impact
• Increasing market share
Objectives of Mercedes-Benz
• 5% increase in sales each year
• Reducing number of entry level models, without reducing sales volume in this
• Minimising the use of raw materials
• Using renewable energy
A huge business, like M-B Group, can have multiple aims and objectives that can be things to do with
finance, carbon emissions or the products they sell. For example, Mercedes has many aims that the
, Unit 1 Assignment 1: Features contributing to the success of contrasting businesses
business has published on their website. Firstly, by 2026 they want to achieve around 5% more sales per
year, particularly in their top-end luxury and core luxury products. They will want to do this because
increased sales means increased revenue which often means increased profit as long as their expenditure
doesn’t increase more than their revenue. When a business set aims & objectives, they should consider
whether they are SMART. SMART is an acronym that stands for Specific, Measurable, Achievable, Relevant
and Time-bound. These are 5 things that any aim or objective should be. Specific means that there has to
be a clear vision of what the business wants to achieve. For example, Mercedes-Benz want to achieve 5%
higher sales each year. This is specific because they have a figure they want to achieve. Measurable mean
that they can measure their progress towards achieving their aim, Mercedes’ aim of increasing sales is
measurable because Product Sales is a figure that can be tracked and checked. Achievable means that the
aim or objective has to be realistic to the size, growth and state of the business. For example, Mercedes’
aim of increasing sales by 5% is realistic because they are a huge business who have a large share of the
market and have been leaders in the vehicle sector for decades. When considering aims & objectives the
business needs to ensure they are relevant, meaning they need to consider how it will benefit the business
and whether it is something they need to achieve at this moment in time. Using the same example of
Mercedes’ sales aim, this aim is relevant to Mercedes because achieving this means they can have a larger
share of the market and with increased sales is increased income from those sales, leading to potentially
higher profits each year. Finally, aims & objectives need to be time based. The business needs to be able to
have an idea of when they want to achieve this target, this allows them to know if they are on track to
achieve it and when to review their aims and objectives. Mercedes aims to increase their sales by 5% each
year, so they know they will need to review this objective each year. Aims and objectives help every
business, no matter the size, to grow and expand physically and financially. For example, Mercedes-Benz’s
objective of reducing their carbon footprint and impact on the environment. The fact they are sourcing
energy and materials from sustainable sources this may be a factor in a customer deciding whether they
want to purchase their products over their competitors. A lot of potential customers now look at how a
business tries to reduce their impact on the environment because a lot of people are trying to reduce their
own carbon footprint. So, if a customer sees that Mercedes source their own energy or use recycled metals
this may be a reason, they decide to purchase a Mercedes-Benz product, and this may contribute to their
aim of increasing sales and market share.
Reasons for Success
Different types of businesses measure success in different ways. For example, a for profit business such as
Mercedes-Benz are likely to measure their success on figures such as units sold, revenue and profit and
their market share. This is because the main aim of the business is to make money and top their
competitors in doing so. Mercedes-Benz is an incredibly successful business in the automobile industry. We
know they are successful because they had a revenue of 167.9bn euros in 2021 which is an increase of 13.6
billion euros on the previous year. They also sold 2.75mn units in 2021, which is actually 90,000 less units
than 2020 but yet their revenue increased. A for-profit business such as Mercedes would consider that a
successful year because their revenue increased, and they also turned over a profit of 14.2b euros. There
are many reasons for the continued success of Mercedes. Firstly, the brand of Mercedes-Benz is recognised
worldwide as a high-end brand that manufactures some of the most reliable, high performance and
aesthetically pleasing vehicles ever made. With this comes a loyal customer base, people who buy a
Mercedes vehicle usually buy one due to this reputation and often their next vehicle purchase will also be
a Mercedes. Some of the main reasons listed for customer loyalty to Mercedes are the quality of their
products, reliability both with the product but also their customer service and also brand affinity.
