Learning aim A: Explore the features of different businesses and analyze what makes them successful.
Explaining the features of 2 contrasting businesses
For my report I will be discussing the differences between 2 different types of business. Tesco- A public limited company, and Willen hospice- A non-for-profit organization. I will be explaining the differences between both businesses and the differences that their types of business have. Which can affect a company’s income, as well as their aims to the business.
Tesco is a large UK supermarket chain based in Welwyn Garden City in the UK. With over 7000 stores nationwide. With the first store opening in 1929, Tesco sells a variety of goods and outputs and goods from consumer non-durable goods like food such as bread, milk, sweets, drinks, cakes for regular shoppers on their weekly shop. Tesco’s also sells consumer durable goods. Tesco’s has its own home furnishings brand named ‘Fox and Ivy’ It specialises in smaller furniture such as towels, vases, picture frames and larger furniture such as chairs and sofas. Tesco’s also sells other types of consumer durable goods such as mobile phones and clothing. The clothing brand F and F has a large market segmentation and reaches out to all age groups and genders. It ranges from baby and school clothes to maternity wear and suits. Tesco’s also offers services for its customers such as a café and restaurant, bakery, Deli, butchers, fishmongers, opticians, pharmacy, and even helps with the way customers receive their shopping, such as online shopping, home delivery and click and collect. Which can reach out to a wider range of customers. Tesco’s also has in store franchises within the store such as Curry’s pc world and Claire’s. Tesco’s also has its own brand so the company is also a secondary as well as a tertiary sector.
Tesco’s is a private sector company; a private sector company is a non-government owned or non-government funded firm/ company. A private sector company can be several types of businesses. Examples of types of private sector companies would be a sole trader, partnership, a co-operative society, cooperate society, public and private limited companies and multinational co-operations. There are several private sector companies. Such as McDonalds, a local nail salon, new look, BandQ, Home bargains, pets at home, boots, dwell, t mobile, costa coffee and several others. All offering a wide variety of products and services.
Tesco is a public limited company, a public limited company is where the company’s shares can be sold off to the public. There are several advantages of being a public limited company. If the company were to go in debt the problem is passed onto the shareholders and not the private individuals who own the company. Compared to a private limited company, where it will affect the private individuals if the company were to go in debt, facing unlimited liability and loss of personal possessions. Such as a car or property. Specifically to Tesco. A benefit of being a public limited company would be that risk is low. For example, if one shareholder goes into debt. The company will not be affected as Tesco is a large co-operation. There are still over 7000 other stores. So the main headquarters ad the company itself are not necessarily affected if one store were to close down.
Tesco also is a limited liability company. Limited liability is when a private company’s owners are legally responsible for its debts. This could individually affect Tesco if the company were to go into severe debt. Losing shareholders.
Tesco’s has a wide range of aims and objectives. (According to Prezi.com) Tesco’s Overall aim is to become the largest retail supermarket, proving good quality services and products at a low cost to their competitors such as asda, Lidl, Sainsbury’s, Morrison’s, Aldi and The coop. Although they have achieved this aim in the UK with 27.9%. Tesco’s had set themselves a time constraint of 3 years to achieve this. Tesco has 5 objectives for the company as well. (According to Prezi.com) these 5 objectives are
• To maximise sales and with doing so increase their profits.
• Decrease their prices. Tesco aim to make shopping cheaper everyone. They aim to do this by cutting prices and offering more in store deals.
• Introduce more healthy eating products into the wide range of groceries they supply. The advantage of introducing more healthy living products is that Tesco will attract many more customers that are interested in healthy eating products.
• Tesco aim to develop a large Internet shopping site. To provide groceries, electronics and clothing goods as well as a number of their services online. Tesco are aiming to develop the online shopping experience, if they are successful in doing so they may attract a larger market segmentation.
• To provide jobs to their local community. Tesco aim to reduce the unemployment in local areas where Tesco Stores are built.
Tesco features all sectors of production, with primary sectors, it creates and grows products with its own name brands such as everyday value and Tesco finest. It makes secondary products in store such as the bakery and fish mongers. As well as providing tertiary production with services tailored for the customer, such as a restaurant and click and collect delivery.
Tesco is an international chain, expanding to 11 counties across the globe, such as: Czech Republic, Ireland, Korea, Malaysia, Poland and Thailand. Although in some countries it operates under a different name, such as Korea, where it is named Homeplus.
Reasons for Tesco’s success. Tesco’s is an ever-growing company and overtime has provided more varieties of different products and within its stores, and can cater to a wider market segmentation, such as with gluten or dairy free products, or products tailored to a certain age range, such as baby food. Tesco has also innovated in a wider variety of services for its customers. Such as a café and restaurant, bakery, Deli, butchers, fishmongers, opticians, pharmacy, home ware section and clothing range. As well as other bigger services, such as range car or home insurance. They have also improved their online services for the customers and for the company. They tailor to all sorts of customer’s needs, for those who might not be able to shoo you can order food online and have it delivered to your house. Or you can order food online and collect it in store with click and collect for busier families. E-commerce can also benefit the business by not having to hire as many staff or open as many stores, because people can easily do their shopping online. Tesco’s also manages to keep more regular customers with a loyalty scheme called Tesco club card. It is something they do so well that it has become the largest loyalty scheme in the UK, with an estimated 13 million members. The cards tell Tesco what their customers spend, and when they spend it. As a result, Tesco has been able to give appropriate discounts tailored to every customer and innovate in more frequently used products. Tesco’s vision to become the most largest retail supermarket, their process in reaching that objective has lead for the company to become a well know and well trusted company with a variety of innovative products and processes for all its customers.
Willen Hospice is a non for profit Charity, originated in 1974 based in Willen Lake, Milton Keynes. Willen Hospice is a care home for those with lifelong illnesses. Keeping them happy and well cared for in a peaceful environment, According to their website, they offer a wide variety of services for their patients, such as: An in-patient unit, Community Palliative Care Team, Day Hospice, A special Lymphedema Clinic Aswell as Patient and Family services, such as support for young people, chaplaincy, maintenance, bereavement support, housekeeping and catering.
Willen hospice is a private Sector company. This means that Willen Hospice is run by private individuals or groups, and is not controlled or run by the government. Examples of private sector companies are H and M, Apple, Disney, coca cola, Primark, The local fish n chip shop.
Willen Hospice is a non for profit organisation. This means it is a charity designed to generate profit to fund a certain cause and help people no part of the organization’s income is distributed to its members, directors, or workers. They all help in funding the business. Many workers at non for profit organisations are volunteers are a non for profit organisation is usually backed by the local government and donations from the public. Expecting nothing in return. Examples of non for profit organisations are dogs trust, the Red Cross, Hula and age UK.
Willen hospice uses limited liability. This means that there are shareholders in this business and if the company were to go into debt. The owners would be put into limited liability and lose personal necessities, to pay off debts. If the company were to decline.
Willen hospice has several aims and objectives for their organisation. According to the Willen hospice website (www.willen-hospice.org.uk) The Company’s overall objective is described as their ‘vision’. It says: Our vision is to be the lasting and thriving provider of free care to all people affected by life limiting illness in our community. This will be made possible by a community working together continually to share in the delivery of the most assuring, equally accessible and advanced care available.
Willen Hospice aims are very different compared to Tesco. They are a non for profit organisation and rely on. Willen hospice says it will achieve its aim by “a community working continually to share the delivery of the most assuring, equally accessible and most advance care possible.” Scoring to their website. They aim to do this by donations, charity shops selling a range of goods for people to purchase to support the charity. Fundraising Events Such as midnight moo walk, parachute jumps and charity shops. These bring in 78% of funds, Lottery, Marketing Campaigns, Gift in Kind support, Sponsorship, Legacy, In Memory Giving. Willen hospice also receives grants from the NHS. According to the presentation. 22% of Willen Hospices funds are through NHS grants. According to the presentation. “The Milton Keynes Clinical Commissioning Group, Nene Clinical Commissioning Group and Bedfordshire Clinical Commissioning Group which are a group that help commission and fund several healthcare services for their communities. Fund approximately £1m = 23% of the running costs.
The Willen Hospice Business Development Team need to raise £3.6 million to cover the rest of the costs for the charity.” Which is done through other means as listed earlier.
Willen hospice is a part of the tertiary sector. This means that they provides services to its consumers and patients. According to the presentation, Willen Hospice offers a wide variety of services in the tertiary sector, Such as an In-patient unit, Community Palliative Care Team, Day Hospice for those with long-term illness in a peaceful environment, Lymphedema Clinic, Patient and Family services, young people’s support, chaplaincy- emotional and spiritual care, bereavement support, maintenance, catering and housekeeping as well as other medical services.
Willen hospice is a local business, as pictured in the presentation their catchment area only spreads around areas of Milton Keynes and a few miles out aswell. To areas such as Towcester and Olney.
Reasons for its success. Willen Hospice’s primary goal is to make profit to continue and fund its business, as it is a non for profit organisation. Willen hospice has several funding growth and techniques that have been introduced overtime. They have also increased their services to cater for all sorts of patients
According to Willenhospice.org.uk. The business has been running since 1974. Overtime the business has run a homecare service (1979), In-patient services (1981), Bereavement and patient services (1991), Hospice at home service (1998), Befriending service (1999) and psychotherapy service (2014)
They now have a wide variety of fundraising events that have been introduced overtime. Examples of fundraisers by Willen hospice are lake runs around Willen Lake, the local lake which Willen hospice is attached to. Auctions, Quiz nights, Golf and horse racing days, Fashion shows and community events.
Some events have now become a yearly or monthly event for Willen hospice, which the community know about and get involved in, such as the twilight walk, Midnight moo walk and fun runs. They also do fundraisers with included services for their patients and family members coping with bereavement. Such as the Lights of love service. Which has been happening annually since 1997.
They also do fundraisers seasonally, such as the Santa race.