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Unit 1 - P1

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Describe the type of business, purpose and ownership of two contrasting businesses [RL]

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Escuela, estudio y materia

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Subido en
8 de febrero de 2021
Número de páginas
2
Escrito en
2019/2020
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In this report I will set out to discuss the different business environments in which two sep-
arate organisations operate in. Uber and Emirates Airlines are two individual transporta-
tional organisations that are both limited liability companies, however are contrasting in
that the sectors they operate in. Uber being in the private sector and have a private limited
company and Emirates being in a public sector as its own by the government. Both organi-
sations will be explored in terms of their economic activity, ownership, purpose and geo-
graphical nature.


Uber, founded in 2009, in San Francisco, United States, serves as a transportation service
provider. The business operates on a global scale, offering a variety of services to the food
delivery industry, taxi service operator and helicopter tour unit in select countries. Being a
service run company the business falls under the category of tertiary sector. This means,
Uber does not produce raw materials, nor does it produce goods to sell. Their purpose is
to produce profit alongside of providing a service for their customers.


Uber is a private limited company, meaning that both drivers and employers personal as-
sets are unaffected in the case of legal wrongdoing, so stakeholders will not be responsi-
ble in paying off debt incurred by the company. As a business Uber does not currently sell
shares on the stock market. However, the company has plans to go public in 2019. In do-
ing so, and listing on the stock market it can allow Uber to build or raise capital. In raising
capital it allows public funds to support the businesses growth and expansion, as deter-
mined by the businesses strategy. Uber is a well known and popular company in many
countries. Many investors would therefore be interested in buying and purchasing shares
in the company, as the margin for perceived gains seem to indicate value in holding
shares. Having the public as investors, opens the business up to a new market where the
public are able to purchase shares to significantly help increase the total profit. In 2017 for
example, Uber experienced serious losses of 4.5 billion however its revenue spiked. The
business does however stand a chance of being taken over if an already existing share-
holder decides to purchase more shares in the company.


Founded in 1985, Emirates Airlines, based out of Dubai is a transportational service
provider. Emirates purpose is to provides flights and Chauffeur services, and merchandise.
Their service is a global scale, connecting cities and countries via flights and airports from
their operations in the Middle East. Emirates Airlines is run by the parent company The
Emirates Group which in turn is run by the government of United Arab Emirates. The com-
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