Unit 1 (Exploring Business)
BTEC National
(Learning Aim A, B, C, D, E)
Nike & British Heart foundation
In this Unit I will examine the purposes of different businesses, their structure, the
effect of the external environment, and how they need to be dynamic and innovative
to survive. I will also investigate how my chosen businesses are organised, in what
environment their businesses operate it and the impact PESTLE on their business
operations and what they do to be successful amongst their competitors. In addition I
will analyse the use of innovation of my chosen business and its advantage and
disadvantages they had and how they are improving their strategies.
Introduction:
Business is a profit-making activity that includes sale, purchase, exchange, or goods
and services; it is "any activity or enterprise entered into for profit." The common
thread in business is that owners and employees are striving to satisfy customers.
Business is a worldwide popular activity that people use to make money, buy,
purchase or invest. Within businesses, many functional areas are combined to make
the business operate in the market. Over the years the functional areas have
expanded to take into account the changing business environment. For example, the
majority of the businesses these days have links to social media platforms as well as
e-commerce platforms for selling and buying to the public around the global market.
The businesses in the markets have had to develop and sustain themselves
amongst the growing competition not just within the local, regional, national but also
from international markets whereby influx of imports is coming in and competing
against home-grown products and services. Therefore, the way a business is
managed and handled is important to its chances of meeting its objectives and
surviving in the market to make profits and sales.
,Therefore, exploring businesses will give a better understanding and insight into the
ways they operate and within trading rules and regulations in the market. The 5
areas I will be focusing the report on will be:
● Features of different business
● How businesses are organised
● The environment in which businesses operate
● Business market
● Role and contribution of innovation and in it is a proposition to business
success.
Features of two contrasting businesses
Nike and British heart foundation
Nike is an international brand that is known by every woman, man, and child in the
whole world. Nike was founded in 1962. Both Nike and British heart foundation are
two contrasting businesses, (BHF)is PLC (public limited company) whereas, Nike is
a private limited company and large organisation which is famous through its logo
and name and its products are made by their specialised organisation who are
professions in making goods for Nike. Therefore, BHF is an organisation that funds
research related to the circulatory system or heart which is known as a charity
organisation in the UK. Nike is a brand that offers high-quality clothing, shoes, and
bags, sunglasses, and sports watches. However Nike's target market is a peacock,
and they target young and active people between 15-25 ages. Nike energetically
communicates with its stakeholders and supports their feedback. Nike grabs
stakeholders’ attention in many gatherings, conferences, and assemblies, etc.
Features of businesses
Ownership and liability:
Businesses are owned in one of three ways; public and not-for-profit. Ownership in
business is the legal right to process something, and liability is legally capable of
something.
1. Private limited company
A private company is any enterprise that does not have shares publicly traded in the
impartiality markets. The managers of private companies have more ability to take
,estimated risks that focus on long-term business goals rather than just the income
envisioned for the next quarter. Privately individual businesses can be of any size
and amount which may demand many partners. Some of the largest private
companies such as Nike, greenery, john Lewis's partnership, and Swire, etc. these
companies may not offer their shares for sale to the public. Nike is a private limited
company due to it being owned by the government.
2. Public limited company
A public limited company corporation that has shareholders and shares publicly
traded in the impartial markets. Public companies offer the companies to share them
with the public. Public companies must have at least 3 directors. Some public
companies such as Apple, Tesla, Gamble, and Procter, etc. The focal features and
advantages of a public limited company are that you can fund through external
investors fundamentally and offer shares in your company to the public. to a large
extent, a public limited company is the same as a private limited company. LTD also
has disadvantages; they can get loss of individual control, the greater threat of
takeover, and more complicated to set up legal formalities. For example, BHF
(British heart foundation) is a public limited company that is owned by shareholders,
it also offers shares to the public.
3.) Sole trader
A sole trader is when one person owns the business by itself. Sole traders are small
companies such as butchers, hairdressers, and electrification, etc. they take all risks
when they start their own business which they can also have a loss of unlimited
liability. They also take all the profit that they make for themselves. Sole traders
depend on their savings; therefore, they can take bank loans or loans from friends
and family. Starting a new business as a sole trader is legally the easiest type of
ownership. Sole traders serve to do long hours work because they must take all the
responsibility to manage their business by themselves, they also promote their
business by purchasing, buying, and advertising intends to have profit. They
received a limited fiancé. They only take loans from the bank if the bank is convinced
that the sole trader’s business will work. Companies like Nike and BHF, are unique
profit-making and iconic organisations which are sole traders, these companies have
their name in the industries and they are far away from the sole traders, which is
cooperative business.
4.) Partnership
A partnership is when two or more people gather and work together as a partner who
shares their profits, and the loss they get in their company they face equally. The
partnership goes into many fields in business for example private partnership, in
private partnership the company or organisation that holds the minimum set of
people and without share marketing on a stock market. There are advantages and
disadvantages of partnership in business, partnership in business helps to
, understand collecting different ideas and suggestions from various people, increase
in profit when the interest rate is higher in the market then the profit will be higher, no
payroll tax or superannuation required can use losses against other income and
easy to wind up it fails. Whereas in some business’s partnership gets complicated
and gets hard to deal with, for example, decision-taking can be too long, partner’s
death can harm business, or can get profit-sharing problems, unlimited liability,
limited tax planning opportunities, and joint and several liabilities.
5.) Cooperative
A cooperative is a private business department that is maintained by itself and
commanded by the people who use its supplies, products, and services. Even
though cooperatives expanded in variety and membership size, all were initiated to
meet the specific objectives of members, and they are structured to modify to
member's changing needs.
Limited and unlimited liability
Unlimited liability means that the finance of the business is treated as inseparable
from those of the business owners. If the business has debts that the owner cannot
pay, they can personally make bankrupt two types of business that have unlimited
liability would be sole trader or partnerships. Limited liability means the legal duty to
pay debts. Run up by a business stays with the business itself, not the owners
(shareholders). If a company has 1 a million debts and they have insufficient cash to
repay them, the courts can force the business to sell its assets if there is still not
enough money, the company will close down but the shareholders or owners have
no personal liability for the remaining debts.
Public
A public company corporation that has shareholders and shares publicly traded in
the impartial markets. Public companies offer the companies to share them with the
public. Public companies must have at least 3 directors. Some public companies
such as Apple, Tesla, Gamble, and Procter, etc.
Not for profit
It is an organisation that does not earn profit for its owners. All the money is donated
by an organisation. Not-for-profit organisations do not operate to earn profit. They
are composing for some visionary purposes and in general, they supply service to its
members and the public. Their aim is religious, educational, charitable, or social
protection and the help of the people at large. People are working in large to small
companies in many varieties. Non-profit organisations balance a large group of
people. For example, BHF (British heart foundation) is a charity and a non-profit
organisation.
BTEC National
(Learning Aim A, B, C, D, E)
Nike & British Heart foundation
In this Unit I will examine the purposes of different businesses, their structure, the
effect of the external environment, and how they need to be dynamic and innovative
to survive. I will also investigate how my chosen businesses are organised, in what
environment their businesses operate it and the impact PESTLE on their business
operations and what they do to be successful amongst their competitors. In addition I
will analyse the use of innovation of my chosen business and its advantage and
disadvantages they had and how they are improving their strategies.
Introduction:
Business is a profit-making activity that includes sale, purchase, exchange, or goods
and services; it is "any activity or enterprise entered into for profit." The common
thread in business is that owners and employees are striving to satisfy customers.
Business is a worldwide popular activity that people use to make money, buy,
purchase or invest. Within businesses, many functional areas are combined to make
the business operate in the market. Over the years the functional areas have
expanded to take into account the changing business environment. For example, the
majority of the businesses these days have links to social media platforms as well as
e-commerce platforms for selling and buying to the public around the global market.
The businesses in the markets have had to develop and sustain themselves
amongst the growing competition not just within the local, regional, national but also
from international markets whereby influx of imports is coming in and competing
against home-grown products and services. Therefore, the way a business is
managed and handled is important to its chances of meeting its objectives and
surviving in the market to make profits and sales.
,Therefore, exploring businesses will give a better understanding and insight into the
ways they operate and within trading rules and regulations in the market. The 5
areas I will be focusing the report on will be:
● Features of different business
● How businesses are organised
● The environment in which businesses operate
● Business market
● Role and contribution of innovation and in it is a proposition to business
success.
Features of two contrasting businesses
Nike and British heart foundation
Nike is an international brand that is known by every woman, man, and child in the
whole world. Nike was founded in 1962. Both Nike and British heart foundation are
two contrasting businesses, (BHF)is PLC (public limited company) whereas, Nike is
a private limited company and large organisation which is famous through its logo
and name and its products are made by their specialised organisation who are
professions in making goods for Nike. Therefore, BHF is an organisation that funds
research related to the circulatory system or heart which is known as a charity
organisation in the UK. Nike is a brand that offers high-quality clothing, shoes, and
bags, sunglasses, and sports watches. However Nike's target market is a peacock,
and they target young and active people between 15-25 ages. Nike energetically
communicates with its stakeholders and supports their feedback. Nike grabs
stakeholders’ attention in many gatherings, conferences, and assemblies, etc.
Features of businesses
Ownership and liability:
Businesses are owned in one of three ways; public and not-for-profit. Ownership in
business is the legal right to process something, and liability is legally capable of
something.
1. Private limited company
A private company is any enterprise that does not have shares publicly traded in the
impartiality markets. The managers of private companies have more ability to take
,estimated risks that focus on long-term business goals rather than just the income
envisioned for the next quarter. Privately individual businesses can be of any size
and amount which may demand many partners. Some of the largest private
companies such as Nike, greenery, john Lewis's partnership, and Swire, etc. these
companies may not offer their shares for sale to the public. Nike is a private limited
company due to it being owned by the government.
2. Public limited company
A public limited company corporation that has shareholders and shares publicly
traded in the impartial markets. Public companies offer the companies to share them
with the public. Public companies must have at least 3 directors. Some public
companies such as Apple, Tesla, Gamble, and Procter, etc. The focal features and
advantages of a public limited company are that you can fund through external
investors fundamentally and offer shares in your company to the public. to a large
extent, a public limited company is the same as a private limited company. LTD also
has disadvantages; they can get loss of individual control, the greater threat of
takeover, and more complicated to set up legal formalities. For example, BHF
(British heart foundation) is a public limited company that is owned by shareholders,
it also offers shares to the public.
3.) Sole trader
A sole trader is when one person owns the business by itself. Sole traders are small
companies such as butchers, hairdressers, and electrification, etc. they take all risks
when they start their own business which they can also have a loss of unlimited
liability. They also take all the profit that they make for themselves. Sole traders
depend on their savings; therefore, they can take bank loans or loans from friends
and family. Starting a new business as a sole trader is legally the easiest type of
ownership. Sole traders serve to do long hours work because they must take all the
responsibility to manage their business by themselves, they also promote their
business by purchasing, buying, and advertising intends to have profit. They
received a limited fiancé. They only take loans from the bank if the bank is convinced
that the sole trader’s business will work. Companies like Nike and BHF, are unique
profit-making and iconic organisations which are sole traders, these companies have
their name in the industries and they are far away from the sole traders, which is
cooperative business.
4.) Partnership
A partnership is when two or more people gather and work together as a partner who
shares their profits, and the loss they get in their company they face equally. The
partnership goes into many fields in business for example private partnership, in
private partnership the company or organisation that holds the minimum set of
people and without share marketing on a stock market. There are advantages and
disadvantages of partnership in business, partnership in business helps to
, understand collecting different ideas and suggestions from various people, increase
in profit when the interest rate is higher in the market then the profit will be higher, no
payroll tax or superannuation required can use losses against other income and
easy to wind up it fails. Whereas in some business’s partnership gets complicated
and gets hard to deal with, for example, decision-taking can be too long, partner’s
death can harm business, or can get profit-sharing problems, unlimited liability,
limited tax planning opportunities, and joint and several liabilities.
5.) Cooperative
A cooperative is a private business department that is maintained by itself and
commanded by the people who use its supplies, products, and services. Even
though cooperatives expanded in variety and membership size, all were initiated to
meet the specific objectives of members, and they are structured to modify to
member's changing needs.
Limited and unlimited liability
Unlimited liability means that the finance of the business is treated as inseparable
from those of the business owners. If the business has debts that the owner cannot
pay, they can personally make bankrupt two types of business that have unlimited
liability would be sole trader or partnerships. Limited liability means the legal duty to
pay debts. Run up by a business stays with the business itself, not the owners
(shareholders). If a company has 1 a million debts and they have insufficient cash to
repay them, the courts can force the business to sell its assets if there is still not
enough money, the company will close down but the shareholders or owners have
no personal liability for the remaining debts.
Public
A public company corporation that has shareholders and shares publicly traded in
the impartial markets. Public companies offer the companies to share them with the
public. Public companies must have at least 3 directors. Some public companies
such as Apple, Tesla, Gamble, and Procter, etc.
Not for profit
It is an organisation that does not earn profit for its owners. All the money is donated
by an organisation. Not-for-profit organisations do not operate to earn profit. They
are composing for some visionary purposes and in general, they supply service to its
members and the public. Their aim is religious, educational, charitable, or social
protection and the help of the people at large. People are working in large to small
companies in many varieties. Non-profit organisations balance a large group of
people. For example, BHF (British heart foundation) is a charity and a non-profit
organisation.
