Features contributing to the success of contrasting businesses
Introduction:
In this report, I’ll be contrasting two businesses one business which is from the
private sector and one from a non-profitable organisation (also known as a charity).
In my report, I will be looking at two businesses and exploring their features and
analyse what makes them successful through my independent research. In the
report I will research and contrast the features of the two businesses, for example I
will include information about the ownership and liability, purpose, sector, the scope
of activities and size, organisational structure, the business’s mission, vision and
values, aims and objectives, the relationship with internal and external stakeholders,
and possible reasons for its success. The two businesses that I will be contrasting
with are Tesco and Oxfam.
Private sector organisation
Background of Tesco’s PLC
Tesco PLC is a retail company that is a British multinational groceries and general
merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire,
England. Tesco was founded in 1919 by Jack Cohen as a group of market stalls, in
the East End of London. The Tesco name got created and first appeared in 1924,
after Cohen purchased a shipment of tea from T. E. Stockwell and they then
combined those initials with the first two letters of his surname, and that is where the
first Tesco shop opened in 1931 in Burnt Oak, Barnet. Originally, Tesco’s started off
with selling multinational groceries and then later on diversified by 1960 into areas
such as the retailing of clothing, electronics, books, furniture, toys, software, petrol,
financial services, telecoms, and internet services.
Business Features (P1, P3 & M2)
Ownership and Liability
As a UK retailer Tesco’s PLC operates almost 7000 stores worldwide, as a big
retailer Tesco’s have promised to be committed in order to deliver goods and
services which will have a sustainable value to both its customers and stakeholders.
Tesco’s is a private sector organisation and as a PLC it means that the company has
multiple shareholders and has no involvement or ownership through the government.
The ownership of Tesco’s is as a PLC (Public Limited Company) and its shares have
the ability to be sold freely to the public on the Stock Exchange Market. BlackRock,
Inc is one of the major shareholders of Tesco’s PLC they hold around 6.64% of
shares. Tesco’s is a public limited company that’s national, spread all over the parts
of the UK and it’s also in every local borough in London.
Tesco’s have limited liability for the shareholders, the business can raise a large
capital sum as there is no limit to the number of shareholders. The liability of Tesco’s
is financial debt and obligations that arise over the course of their business
operations. Limited liability means that the shareholders are legally responsible for
the debt of the business, only to the extent of the initial value of their share. This
means that shareholders are safe and secured, in the terms that company debts
aren’t an issue for them and it won’t affect their personal possessions, so they can
, lose their investment of the share in the company and nothing more. However, the
disadvantage of Tesco’s having limited liability is that they could potentially lose
control. Ultimately, shares control a companies ownership, this means if you sell off
more than 50% of your company, there is a potential for shareholders to take over
and remove you from the business. This is especially dangerous in situations when
two directors have different visions and high share volume because if they can
gather enough support, they can oust another director.
Purpose
The main purpose of Tesco’s is to make a profit and expand their business. Their
second purpose is to help customers save money by selling their product cheaper
compared to other supermarket stores, and provide its customers with the best
service possible while ensuring that they have the products required. This would
mainly maximize profits for its shareholders, whilst having a good reputation and
relationship with its customers and stakeholders. Tesco’s core purpose is to ‘serve
shoppers a little better every day’. “Their business was built with a simple mission
which is to be the champion for customers, helping them to enjoy a better quality of
life and an easier way of living. Customers want great products at great value which
they can buy easily and it's our job to deliver this in the right way for them. As a
business, serving customers is at the heart of everything we do – from colleagues in
our stores to those of us in supporting roles.”
Sector
As a huge retailer, Tesco’s PLC is under the tertiary sector because they buy all their
products directly from manufacturers expect bakery products which they make
themselves. Tesco’s buys lots of different ranges of products from different
manufacturers this is to cater to everybody’s needs, and this is one of the ways in
which they are so successful.
Scope and Size
Tesco’s PLC is an international scope business that has almost 7000 stores
worldwide. They have the majority of their stores in Europe, with over 5000 in
Europe alone and the remaining few hundred stores in Asia, specifically in India and
the Middle East. Tesco’s growth over the last two or three decades has involved a
transformation of its strategy and image. Its initial success was based on the “Pile it
high, sell it cheap” approach of the founder Jack Cohen. Tesco is one of the leading
supermarket brands in the United Kingdom (UK), consistently ranking highest in
terms of grocery market share. In the UK, they provide about six different store
formats to their customers which vary in size and range of products. Tesco
Superstores, for example, are standard large supermarkets that sell mostly food
products and a much smaller range of non-food products in comparison to Extra
stores. Most of Tesco’s annual revenue is generated from its key market in the
United Kingdom. Additionally, they sell products in stores located in other European
and Asian countries. Based on market share, Tesco’s main rivals in the grocery store
business include Asda and Sainsbury’s.
Aims and Objectives
The main aim of Tesco’s is to maximize profit and other aims and objectives are to
create value for customers to earn their lifetime loyalty, to provide goods and
services that are cheap and affordable to their customers, to maximize sales, to grow
Introduction:
In this report, I’ll be contrasting two businesses one business which is from the
private sector and one from a non-profitable organisation (also known as a charity).
In my report, I will be looking at two businesses and exploring their features and
analyse what makes them successful through my independent research. In the
report I will research and contrast the features of the two businesses, for example I
will include information about the ownership and liability, purpose, sector, the scope
of activities and size, organisational structure, the business’s mission, vision and
values, aims and objectives, the relationship with internal and external stakeholders,
and possible reasons for its success. The two businesses that I will be contrasting
with are Tesco and Oxfam.
Private sector organisation
Background of Tesco’s PLC
Tesco PLC is a retail company that is a British multinational groceries and general
merchandise retailer with headquarters in Welwyn Garden City, Hertfordshire,
England. Tesco was founded in 1919 by Jack Cohen as a group of market stalls, in
the East End of London. The Tesco name got created and first appeared in 1924,
after Cohen purchased a shipment of tea from T. E. Stockwell and they then
combined those initials with the first two letters of his surname, and that is where the
first Tesco shop opened in 1931 in Burnt Oak, Barnet. Originally, Tesco’s started off
with selling multinational groceries and then later on diversified by 1960 into areas
such as the retailing of clothing, electronics, books, furniture, toys, software, petrol,
financial services, telecoms, and internet services.
Business Features (P1, P3 & M2)
Ownership and Liability
As a UK retailer Tesco’s PLC operates almost 7000 stores worldwide, as a big
retailer Tesco’s have promised to be committed in order to deliver goods and
services which will have a sustainable value to both its customers and stakeholders.
Tesco’s is a private sector organisation and as a PLC it means that the company has
multiple shareholders and has no involvement or ownership through the government.
The ownership of Tesco’s is as a PLC (Public Limited Company) and its shares have
the ability to be sold freely to the public on the Stock Exchange Market. BlackRock,
Inc is one of the major shareholders of Tesco’s PLC they hold around 6.64% of
shares. Tesco’s is a public limited company that’s national, spread all over the parts
of the UK and it’s also in every local borough in London.
Tesco’s have limited liability for the shareholders, the business can raise a large
capital sum as there is no limit to the number of shareholders. The liability of Tesco’s
is financial debt and obligations that arise over the course of their business
operations. Limited liability means that the shareholders are legally responsible for
the debt of the business, only to the extent of the initial value of their share. This
means that shareholders are safe and secured, in the terms that company debts
aren’t an issue for them and it won’t affect their personal possessions, so they can
, lose their investment of the share in the company and nothing more. However, the
disadvantage of Tesco’s having limited liability is that they could potentially lose
control. Ultimately, shares control a companies ownership, this means if you sell off
more than 50% of your company, there is a potential for shareholders to take over
and remove you from the business. This is especially dangerous in situations when
two directors have different visions and high share volume because if they can
gather enough support, they can oust another director.
Purpose
The main purpose of Tesco’s is to make a profit and expand their business. Their
second purpose is to help customers save money by selling their product cheaper
compared to other supermarket stores, and provide its customers with the best
service possible while ensuring that they have the products required. This would
mainly maximize profits for its shareholders, whilst having a good reputation and
relationship with its customers and stakeholders. Tesco’s core purpose is to ‘serve
shoppers a little better every day’. “Their business was built with a simple mission
which is to be the champion for customers, helping them to enjoy a better quality of
life and an easier way of living. Customers want great products at great value which
they can buy easily and it's our job to deliver this in the right way for them. As a
business, serving customers is at the heart of everything we do – from colleagues in
our stores to those of us in supporting roles.”
Sector
As a huge retailer, Tesco’s PLC is under the tertiary sector because they buy all their
products directly from manufacturers expect bakery products which they make
themselves. Tesco’s buys lots of different ranges of products from different
manufacturers this is to cater to everybody’s needs, and this is one of the ways in
which they are so successful.
Scope and Size
Tesco’s PLC is an international scope business that has almost 7000 stores
worldwide. They have the majority of their stores in Europe, with over 5000 in
Europe alone and the remaining few hundred stores in Asia, specifically in India and
the Middle East. Tesco’s growth over the last two or three decades has involved a
transformation of its strategy and image. Its initial success was based on the “Pile it
high, sell it cheap” approach of the founder Jack Cohen. Tesco is one of the leading
supermarket brands in the United Kingdom (UK), consistently ranking highest in
terms of grocery market share. In the UK, they provide about six different store
formats to their customers which vary in size and range of products. Tesco
Superstores, for example, are standard large supermarkets that sell mostly food
products and a much smaller range of non-food products in comparison to Extra
stores. Most of Tesco’s annual revenue is generated from its key market in the
United Kingdom. Additionally, they sell products in stores located in other European
and Asian countries. Based on market share, Tesco’s main rivals in the grocery store
business include Asda and Sainsbury’s.
Aims and Objectives
The main aim of Tesco’s is to maximize profit and other aims and objectives are to
create value for customers to earn their lifetime loyalty, to provide goods and
services that are cheap and affordable to their customers, to maximize sales, to grow
