BTEC Business UNIT 1 - LEVEL 3 (EXPLORING BUSINESS)
ASSIGNMENT 1
Unit 1: Exploring Business
1/A. P1 Explain the features of two contrasting businesses.
Introduction –
I will be comparing two chosen businesses and explaining their features. I have chosen Tesco and
Oxfam. This is because one of the businesses is a voluntary sector and is known as a ‘non for profit’
business. This means that volunteers run and organise the business. However, the other business is a
public sector; this means they make a profit. Furthermore, I will be exploring the businesses
stakeholders and comparing them based upon their ownership, liability and sectors.
About Tesco –
Tesco is a multinational retailer selling groceries and general merchandise. Tesco
has over 300,000 employees and over 2,900 stores. It is the ninth-largest retailer
in the world measured by revenues. It is a global scale organisation as it is located
over 14 markets within Europe.
About Oxfam –
Oxfam is an international charity, founded in 1942, that works within 98
countries worldwide that are big and small to address global issues such
as poverty. There are 20 charitable organisations. Since 2013, Winnie
Byanyima has been the executive director of Oxfam.
This table below shows the types of ownership that a business may have and examples of them.
Type of Ownership Examples
Public Limited Company – Tesco PLC
A public limited company is a company, which sells/trades Manchester United PLC
shares to the public. Rolls Royce Holdings PLC
Private Limited Company – Virgin Atlantic
A private limited company, which is privately held for small John Lewis Partnership
businesses. The liability of the people within a PLC is limited to River Island
the number of shares that are held by them. Estate Agents
Partnership – Spotify & Uber
A partnership is a legal form of business operation between two Dental Practise
or more individuals. They share the responsibility within the Solicitors
business. Including debts. An example of a partnership could be Accountants
Sole traders – Hairdressers
A sole trader is a person who is the exclusive owner of a Restaurants
business, entitled to keep all profits after tax has been paid but Electricians
liable for all losses. The sole trader is the most common form of Plumbers
ownership. Gardener
Non-profit organisation – Hospice UK
A non-profit organisation is an organised group for other World Wildlife Fund
1
,BTEC Business UNIT 1 - LEVEL 3 (EXPLORING BUSINESS)
purposes other than generating profit. An example of this could Oxfam
be charities.
Type of Ownership –
Tesco –
Tesco is a public limited company. As you can see in the table above. This means the company sells
and trades shares to the public. They do this through a stock exchange. Some examples of a PLC are
Manchester United PLC, Aer Lingus etc. Tesco’s purpose is to sell a wide range of products. For
example, groceries, clothing etc.
The advantages of this type of ownership is that the business can have a large capital sum because
there is no limit on the amount of shareholders Tesco has. This is because the Tesco have a limited
liability for the shareholders. However, the disadvantages are that the original owners may lose
control.
Oxfam –
On the other hand, Oxfam is a major non-profit organisation. A non-profit organisation is an
organised group for other purposes other than generating profit. An example of this could be
charities. There main purpose is to offer a service to make changes by giving money to causes to
improve social issues. Such as growing problems. Oxfam are working in 98 countries around the
world.
The advantage about their ownership is that they are raising money in able to help the people in
poverty, however, the disadvantage to this is that sometimes they do not have enough money to
help the people who may need it the most.
Main Purpose –
Tesco’s Main Purpose –
Tesco’s main purpose is to create value for customers to earn their lifetime loyalty. This could be
done through the Tesco Club card Value. Tesco’s aim is to maximise profits. They do this by offering
a wide range of products and services to the public. They offer a wide range of products, including,
groceries and clothing.
Oxfam’s Main Purpose –
Oxfam’s main purpose is to fight against many issues around the world and to make changes. They
want to empower people to create a secure future of their own and to be free from poverty. They
do this by working with many organisations. They plan to educate people in different countries and
make them aware of the effects of social issues on people.
Type of Liability –
2
, BTEC Business UNIT 1 - LEVEL 3 (EXPLORING BUSINESS)
There are two types of liability. There is limited and unlimited liability. Limited Liability is when they
do not have to face much personal financial risks for debts and unlimited liability is when someone is
liable for all business’s debts, exposed to potential losses.
Tesco –
As Tesco is a public limited company, it has limited liability. This means they do not have to face all
responsibilities and debts. An advantage that Tesco have of being a public limited company is that
they have limited liability and all shareholders and it is much easier for Tesco to raise funds.
Oxfam –
As well as Tesco, Oxfam also has a limited liability, which means they do not have full responsibility
over the business debts. There will be paid staff, and a CEO who deals with all the staff, but a board
of trustees makes all decisions.
Type of Sector –
Businesses operate in a variety of different sectors. These sectors are known as primary, secondary,
tertiary and quaternary. They are the four stages when getting a product ready to be sold.
1. The primary sector is the raw materials
2. The secondary sector is the manufacturing and assembly process
3. The tertiary sector refers to the commercial services
4. The quaternary sector are those industries providing the services.
Tesco –
As Tesco is a retailer, this therefore means it is the tertiary sector. A tertiary sector provides services
to the general population and to businesses. It specialises in food and drink. They buy majority of
their products directly from the manufacturer.
Oxfam –
Oxfam is in the private sector and the tertiary sector. However, instead of just selling products, it
also provides a service to other charities. It does this by selling clothes at a very cheap price. Also,
Oxfam is a non-profit organisation. Which therefore means they are in the voluntary sector. They
focus on changing policies etc in three global sectors to maximise poverty reduction.
1/A.P2 Explain how two contrasting businesses are influenced by their
stakeholders.
3
ASSIGNMENT 1
Unit 1: Exploring Business
1/A. P1 Explain the features of two contrasting businesses.
Introduction –
I will be comparing two chosen businesses and explaining their features. I have chosen Tesco and
Oxfam. This is because one of the businesses is a voluntary sector and is known as a ‘non for profit’
business. This means that volunteers run and organise the business. However, the other business is a
public sector; this means they make a profit. Furthermore, I will be exploring the businesses
stakeholders and comparing them based upon their ownership, liability and sectors.
About Tesco –
Tesco is a multinational retailer selling groceries and general merchandise. Tesco
has over 300,000 employees and over 2,900 stores. It is the ninth-largest retailer
in the world measured by revenues. It is a global scale organisation as it is located
over 14 markets within Europe.
About Oxfam –
Oxfam is an international charity, founded in 1942, that works within 98
countries worldwide that are big and small to address global issues such
as poverty. There are 20 charitable organisations. Since 2013, Winnie
Byanyima has been the executive director of Oxfam.
This table below shows the types of ownership that a business may have and examples of them.
Type of Ownership Examples
Public Limited Company – Tesco PLC
A public limited company is a company, which sells/trades Manchester United PLC
shares to the public. Rolls Royce Holdings PLC
Private Limited Company – Virgin Atlantic
A private limited company, which is privately held for small John Lewis Partnership
businesses. The liability of the people within a PLC is limited to River Island
the number of shares that are held by them. Estate Agents
Partnership – Spotify & Uber
A partnership is a legal form of business operation between two Dental Practise
or more individuals. They share the responsibility within the Solicitors
business. Including debts. An example of a partnership could be Accountants
Sole traders – Hairdressers
A sole trader is a person who is the exclusive owner of a Restaurants
business, entitled to keep all profits after tax has been paid but Electricians
liable for all losses. The sole trader is the most common form of Plumbers
ownership. Gardener
Non-profit organisation – Hospice UK
A non-profit organisation is an organised group for other World Wildlife Fund
1
,BTEC Business UNIT 1 - LEVEL 3 (EXPLORING BUSINESS)
purposes other than generating profit. An example of this could Oxfam
be charities.
Type of Ownership –
Tesco –
Tesco is a public limited company. As you can see in the table above. This means the company sells
and trades shares to the public. They do this through a stock exchange. Some examples of a PLC are
Manchester United PLC, Aer Lingus etc. Tesco’s purpose is to sell a wide range of products. For
example, groceries, clothing etc.
The advantages of this type of ownership is that the business can have a large capital sum because
there is no limit on the amount of shareholders Tesco has. This is because the Tesco have a limited
liability for the shareholders. However, the disadvantages are that the original owners may lose
control.
Oxfam –
On the other hand, Oxfam is a major non-profit organisation. A non-profit organisation is an
organised group for other purposes other than generating profit. An example of this could be
charities. There main purpose is to offer a service to make changes by giving money to causes to
improve social issues. Such as growing problems. Oxfam are working in 98 countries around the
world.
The advantage about their ownership is that they are raising money in able to help the people in
poverty, however, the disadvantage to this is that sometimes they do not have enough money to
help the people who may need it the most.
Main Purpose –
Tesco’s Main Purpose –
Tesco’s main purpose is to create value for customers to earn their lifetime loyalty. This could be
done through the Tesco Club card Value. Tesco’s aim is to maximise profits. They do this by offering
a wide range of products and services to the public. They offer a wide range of products, including,
groceries and clothing.
Oxfam’s Main Purpose –
Oxfam’s main purpose is to fight against many issues around the world and to make changes. They
want to empower people to create a secure future of their own and to be free from poverty. They
do this by working with many organisations. They plan to educate people in different countries and
make them aware of the effects of social issues on people.
Type of Liability –
2
, BTEC Business UNIT 1 - LEVEL 3 (EXPLORING BUSINESS)
There are two types of liability. There is limited and unlimited liability. Limited Liability is when they
do not have to face much personal financial risks for debts and unlimited liability is when someone is
liable for all business’s debts, exposed to potential losses.
Tesco –
As Tesco is a public limited company, it has limited liability. This means they do not have to face all
responsibilities and debts. An advantage that Tesco have of being a public limited company is that
they have limited liability and all shareholders and it is much easier for Tesco to raise funds.
Oxfam –
As well as Tesco, Oxfam also has a limited liability, which means they do not have full responsibility
over the business debts. There will be paid staff, and a CEO who deals with all the staff, but a board
of trustees makes all decisions.
Type of Sector –
Businesses operate in a variety of different sectors. These sectors are known as primary, secondary,
tertiary and quaternary. They are the four stages when getting a product ready to be sold.
1. The primary sector is the raw materials
2. The secondary sector is the manufacturing and assembly process
3. The tertiary sector refers to the commercial services
4. The quaternary sector are those industries providing the services.
Tesco –
As Tesco is a retailer, this therefore means it is the tertiary sector. A tertiary sector provides services
to the general population and to businesses. It specialises in food and drink. They buy majority of
their products directly from the manufacturer.
Oxfam –
Oxfam is in the private sector and the tertiary sector. However, instead of just selling products, it
also provides a service to other charities. It does this by selling clothes at a very cheap price. Also,
Oxfam is a non-profit organisation. Which therefore means they are in the voluntary sector. They
focus on changing policies etc in three global sectors to maximise poverty reduction.
1/A.P2 Explain how two contrasting businesses are influenced by their
stakeholders.
3
