P1 TESCO AND WATER AID: PASSED
In this report I am going to compare two contrasting businesses a
PLC and a Not-for-profit organisation. I have chosen Tesco and Water
aid and will be comparing there features which are forms of
ownership, size, purpose and scope.
History
Tesco is the third largest retailer in the world for gross profit, having
chains of their stores across nine countries around the world
including the United Kingdom, the republic of Ireland, India, south
Korea, Czech Republic, Slovakia, Hungary and Thailand. The company
was founded in 1919 by Jack Cohen. Tesco sell a range of products
from food to clothing as well as having their own banking and phone
services.
Water aid supply taps and toilets with clean water to 28 countries
and since they were founded in 1981 by a man named David
Kindersley, they have provided water to 27 million people as well as
providing clean water to so many people they also help laws get
changed to benefit people at risk.
Forms of ownership
Tesco’s form of ownership is a public limited company meaning their
shares can be sold to the public some benefits of this is easy way to
raise funds for example if you need one hundred thousand pounds
you can sell one hundred thousand shares for one pound, another
benefit is limited liability meaning you are only at risk for what you
put into the business so you cannot lose personal assets, the last
benefit is the status of the company is increased so banks are more
likely to lend the business money. Some disadvantages of being a plc
are risk of takeovers, slow decision due to all decision needing to go
, through the directors and finally all previous and current profits and
financial records are public to everyone including competition.
Water aid’s form of ownership is a not-for-profit organisation
meaning the company does not aim to make profit. Some
advantages of this are, no taxes are paid by non-profit organisations,
they are also eligible for grants which is money given to the business
by the government and the final benefit is limited liability meaning
founding a non-profit has little risk. Disadvantages of a non-profit are
stricter requirements to record financial transactions, it takes time to
register to receive the benefits like the grants and finally with over
one and a half million non-profits competition for fundraising is high.
Purpose
The purpose of a business can be a wide range of thing for example
supplying a product or service either in exchange for money or not or
possibly filling a gap in the market. The purpose of Tesco is to supply
a wide range of goods which it sells, both in store and online. It also
offers services such as its own credit card, personal loans and various
types of insurance, in addition to providing a home delivery service
to its online shoppers and a mobile service. Another purpose for
Tesco is to make profit, whereas a not-for-profit organisation such a
water aid will not. Water aids purpose is to supply taps and toilets
with clean running water to less fortunate countries.
Sector
There are 3 different types of sector: primary where raw materials
are extracted, secondary where the materials are manufactured and
tertiary where the product or service is distributed or provided.
Tesco is in the tertiary sector and is the leader grocery market leader
in the UK; it has a market share of 30%, as well as being the market
leader in Malaysia, Republic of Ireland and Thailand. Tesco’s
In this report I am going to compare two contrasting businesses a
PLC and a Not-for-profit organisation. I have chosen Tesco and Water
aid and will be comparing there features which are forms of
ownership, size, purpose and scope.
History
Tesco is the third largest retailer in the world for gross profit, having
chains of their stores across nine countries around the world
including the United Kingdom, the republic of Ireland, India, south
Korea, Czech Republic, Slovakia, Hungary and Thailand. The company
was founded in 1919 by Jack Cohen. Tesco sell a range of products
from food to clothing as well as having their own banking and phone
services.
Water aid supply taps and toilets with clean water to 28 countries
and since they were founded in 1981 by a man named David
Kindersley, they have provided water to 27 million people as well as
providing clean water to so many people they also help laws get
changed to benefit people at risk.
Forms of ownership
Tesco’s form of ownership is a public limited company meaning their
shares can be sold to the public some benefits of this is easy way to
raise funds for example if you need one hundred thousand pounds
you can sell one hundred thousand shares for one pound, another
benefit is limited liability meaning you are only at risk for what you
put into the business so you cannot lose personal assets, the last
benefit is the status of the company is increased so banks are more
likely to lend the business money. Some disadvantages of being a plc
are risk of takeovers, slow decision due to all decision needing to go
, through the directors and finally all previous and current profits and
financial records are public to everyone including competition.
Water aid’s form of ownership is a not-for-profit organisation
meaning the company does not aim to make profit. Some
advantages of this are, no taxes are paid by non-profit organisations,
they are also eligible for grants which is money given to the business
by the government and the final benefit is limited liability meaning
founding a non-profit has little risk. Disadvantages of a non-profit are
stricter requirements to record financial transactions, it takes time to
register to receive the benefits like the grants and finally with over
one and a half million non-profits competition for fundraising is high.
Purpose
The purpose of a business can be a wide range of thing for example
supplying a product or service either in exchange for money or not or
possibly filling a gap in the market. The purpose of Tesco is to supply
a wide range of goods which it sells, both in store and online. It also
offers services such as its own credit card, personal loans and various
types of insurance, in addition to providing a home delivery service
to its online shoppers and a mobile service. Another purpose for
Tesco is to make profit, whereas a not-for-profit organisation such a
water aid will not. Water aids purpose is to supply taps and toilets
with clean running water to less fortunate countries.
Sector
There are 3 different types of sector: primary where raw materials
are extracted, secondary where the materials are manufactured and
tertiary where the product or service is distributed or provided.
Tesco is in the tertiary sector and is the leader grocery market leader
in the UK; it has a market share of 30%, as well as being the market
leader in Malaysia, Republic of Ireland and Thailand. Tesco’s
