Introduction 1934. Tesco was established to sell dry

Introduction to Business

Tesco

 

Tesco
was founded in 1919 in East London where it started of just only as a market
stall and then in 1924 the first brand of Tesco was made which was ‘Tesco Tea’.
The name Tesco came from the name of the supplier (TES) and the two letters of
his surname (CO). Jack Cohen expanded his business in 1929 and the headquarters
was made in Edmonton in 1934. Tesco was established to sell dry food and other
things at an affordable price for consumers. Tesco had some competition so they
decided to buy 19 burnards stores and many others Tesco was floated on the
stock exchange in 1947 and the price of stocks was 25p per share but today, it
is £176.60. Tesco’s aims and objectives is to maximise profit and to give customers
good quality products and also keep a good customer service . Source: http://www.s4rb.com/the-history-of-tesco-98-years-of-every-little-helps/

           

 

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tesco
works in the private sector which means it is privately owned and does not work
for the government. Additionally, private sector businesses are often profit driven
which means that they work to get a profit. Tesco is a ‘Public Limited Company’
which means it is owned by shareholders and the shares are floated on the stock
exchange – considering it consists of many owners, it is therefore a bigger
business with more opportunity in the market. The people that mostly control
the company is the Board of Directors and they are appointed by shareholders.
The people that have the legal responsibility is the shareholders, they have
limited liability which means that the bank cannot take possessions they only
take money invested in the business; the people that earn the profits are the
shareholders and they get profit in terms of dividends, the business was
established by the shareholders. The amount of shareholders is large, there is
no single legal identity. An advantage of a public limited company is that it
easier to raise funds, this is because Tesco’s float their shares on the stock
exchange with the share price of £176.60 meaning that they are able to issue
shares in order to gain extra financial capital essentially leading to increase
which may enable growth in the future as they want to increase share price so
they can get extra dividends. Another advantage is that the company has limited
liability which means that personal belongings cannot be taken, this leads to not
being able to lose your belongings if the business is sued, therefore you can
start up a business again as you don’t have to purchase the personal belongings
prior to the sue. A disadvantage is that you need to make a business plan
because the bank would want to know if you are a large risk or not, this leads
to time being wasted therefore profit is reduced. Another disadvantage is that
you have to publish accounts online which means that competition will know what
you are doing and could potentially adapt a similar idea, this is consequential
as there will be a loss in profit as well as your share price. Tesco falls into
the secondary and tertiary sector. Secondary
means that it is manufacturing of products there are factories that work for
Tesco.

 

https://www.tescoplc.com/assets/files/cms/CR_Policies_2016/Copy_of_Bangladesh_factories_working_with_Tesco_April_2016.pdf

 

Tertiary means that it is the
selling of products or service from its established branding such as Tesco’s
own brand. Tesco works globally because it has shops in other countries as it
has 6,809 shops around the world such as in India and china. 

 

https://www.tescoplc.com/about-us/our-businesses/.                    

 

Oxfam

 

Oxfam was founded in 1942 they
are motivated to reduce poverty that is there main purpose already they have
seen a reduce in poverty for at least 50 percent and they predicted that it
will irradiated in the next fifteen years they work with many different
countries. Oxfam has some competition such as the British Heart Foundation and
Water Aid Here is some information on their expenditure. These figures are the
expenditure of Oxfam and it shows that they receive a lot of money from the
government and donations and the left one shows where their money goes, most of
the money spend went to developments which is making their business successful.         

file:///N:/GoogleDownloads/OxfamAnnualReport201516%20(4).pdf

 

Oxfam
is not on the stock exchange as it is a non-profit organisation which means it
is no profit driven so it serves the people and they aim to help many people
and in the world and local community, Oxfam has roughly 6000 staff some are
paid and some are not paid this means they are a large business. Oxfam works in
the voluntary sector so it relies on volunteers and because of this they are
not profit driven. The advantages if being a non-profit organisation is that it
will improve standard of living in developing countries because they provide
aid and money this leads to people being able to get out of poverty which would
therefore reduce poverty globally. Another advantage of a non-profit
organisation is that they can focus of non-financial targets because it will
help people all around the world and it is not for own gain this will lead to
them focusing there end goal which is to irradiate poverty therefore the world
will be a better place to be in. A disadvantage of a Non-profit organisation is
that you don’t make any profit so It will be hard to expand the business this
will lead to the business not being able to grow therefore they will not be
able to pay their paid workers. Another disadvantage is that it might be hard
to get volunteers because people might not be interested in working for no pay
which will lead to a lack of workers which would therefore make the business
not being able to run. Oxfam is in the tertiary which means it sell products
which is what Oxfam do to raise money to give to the poor as they don’t need
profit. Oxfam work international because they help people in developing
countries such as in Afghanistan, Zimbabwe and Nigeria.

 

https://www.oxfam.org.uk/what-we-do/countries-we-work-in 

             

 

Stakeholders for Tesco

 

The
term Stakeholder is a person or company that are curious of all the decision of
a business such as customers as they are the main income of a business so they
want high quality and most of all they want cheap prices, this type of
stakeholders is external as they are outside the business. The government is
also a stakeholder because they want to create jobs and they want people to pay
taxes and they want to see the business looking after its people, this type of
stakeholder is external as they are outside of the business. Another
stakeholder is the trade unions they are interested in the employees of a
business and they want employees to have higher wages and better working
conditions, this stakeholder is external as they work outside of the business.
Another important stakeholder is owners as they want to see an increase in
profit and they want to see the net worth of the business to grow, this stake
holder is internal as they work in the business. Another stakeholder is
suppliers they want to see people ordering their products and they want to see
their money be paid straight away, this stakeholder is external as they work
outside the business. Another stakeholder is local and national communities
they want to see businesses making the right choices as it will impact the
local and national community such as businesses making the decisions to reduce
pollutions, these stakeholders is external as they are outside of the business.

Stakeholders for Oxfam

 

Communication between
Stakeholders

      

Stakeholders
in Tesco need to communicate, this is a large part of being a stakeholder. A Stakeholder
that needs to communicate is a shareholder, their role is to invest in a
business and they plan to a make money off of that investment in the form of
dividends. They need to communicate with the board of directors to see what is
going on with their business and to increase the growth of Tesco and which
would therefore satisfy the shareholders. They will communicate in the form of
meetings and they can bring up anything that has been brought up to their
attention.

 

Another
stakeholder that has to communicate is a manager their role is to manage the
staff of the store and see if the store is running well. They both want
employees and customers to be happy and satisfied. Managers communicate in
manager meetings where they talk about the company’s problems such as if there
customers are happy they communicate with the employees and the customers to
try and keep their prices low as well as maintaining profit.

 

Additionally,
employees have to communicate their role is to work for the business and keep
customers happy. They also have to ensure that the business is staying
competitive with Sainsbury as without the employees the business will not be as
successful.

 

 

Stakeholders
in Oxfam need to communicate as without communication the smooth running of the
business is not obtainable. A Stakeholder that will need to communicate is
volunteers their role is to help out the business without being paid Oxfam
relies on these people as they will not be able to run without them their role
is extremely important. The Volunteers communicate with the managers to ensure
the smooth running of the Charity without this communication the Charity would
be less successful.

 

Another
Stakeholder that needs to communicate is a manager they observe the Charity and
ensure that the volunteers are doing as much as they can to help their role in
the Charity Is Extremely important as they ensure the smooth running of the
business. They communicate with volunteers to come up with new ideas with new
campaign ideas.

 

Another
Stakeholder that needs to communicate is the board of trustees they need to
communicate with the managers to see if they are doing their job right and to
see if the Charity is getting closer to reach their final goal. Their role in
the Charity is important as they own the Charity and bring up Ideas. They
communicate in meetings with the senior management to discuss issues with the
business.

 

 

Why these Businesses are Successful

There
are many reasons why Tesco is successful one of them reasons is that Tesco has
many different branches in the UK and also they branch to other countries,
which has helped them to become successful. These leads them to being able to
have different types of stores such as Tesco Extra and Tesco Petrol Stations.
Tesco is also successful because their stores are open for 24 hours which as
easy access all day long.

 

Another
reason why Tesco is successful is because they sell high quality products for reasonable
price this makes them competitive compared to Sainsbury’s so they are
successful, they also have products that are Fairtrade which makes people more
willing to buy their products. This leads to Tesco having lots of customers
supporting the fact that they are successful. Tesco have a large range products
so customers can buy all of their items from Tesco making it more convenient
for the customers. Tesco are also able to negotiate prices with their suppliers
to get a lower price from the consumer this adds to their competitiveness.

 

One
of the main reason why Tesco is so successful is because of their promotion,
Tesco has clubcards so customers can get rewards and discount which would want
people to buy at Tesco’s. They also have TV advertisements which lure the
customers in as it shows people that Tesco is better than the rest. Tesco also
has some sponsorships with The British Heart Foundation and Diabetes this helps Tesco because it
gives awareness for problems in the world and it gives Tesco bigger recognition
around the world, this leads to them attracting the consumer’s attention and
allows them to help a big cause.

 

Conclusion

Tesco
is Successful for many reasons however the most important is their high quality
products this allows Tesco to be competitive with other supermarket. The next
most important reason why Tesco is successful is Tesco’s use of promotion this
is important as it shows people that they should buy from Tesco as they promote
their shop well which means they will get a lot of sales. The least important
reason why Tesco is successful is that Tesco has lots of branches this is
important as people can go to Tesco as it is convenient but this reason is not
as important compared to Promotion. In the long term Tesco’s would fall off unless
they can reduce prices even more because discount shops like Lidl and Aldi are
becoming big, so if Tesco wants to stay top in the market they will need to
reduce prices to remain strong.            

      

 Oxfam is successful because of its brand name
it is well trusted in many countries as it was established in 1942, which
allows Oxfam to build up its brand name and become well known. Another reason
why Oxfam is successful is their brand name is so popular people will be more
willing to donate, and also their aims and objectives makes people want to
donate so Oxfam will get extra money to get closer to their objectives.

 

Additionally,
Oxfam are successful because of their location, Oxfam has many stores which has
very cheap prices which were donated to Oxfam this allows poorer people to get
goods for a very cheap prices. Another reason why their location is the reason
to their success is because it is easy to donate as there are food banks,
clothes bank and they can donate online or in stores. Finally Oxfam is a
successful business as they work internationally which means there are shops
around the world and they work with other counties to reach their goals.

 

Another
big reason why Oxfam is successful is because of its volunteers they are very
important as they give awareness to other people about the aims and objectives
of Oxfam. They also are word of mouth of Oxfam as they can tell people about
Oxfam which could result in lots more donations so if more people know about
Oxfam this means people will be more willing to donated to them. Volunteers
also help deliver Campaigns which gives Oxfam more awareness as people would
want to join in because it is a good cause.

 

Conclusion

Oxfam
is Successful in many ways however the most important reason is the brand name
as it is iconic which means they will get a lot of donations so they can get
closer to their end goal. The next most important reason is because of the
volunteers as without them the business would not be able to run as it is a
non-profit organisation. The least important reason why Oxfam is successful is
because of the location this is important as it allows people to donate easier
this is important as if it is hard to donate then people will be less willing
to donate. In the long term Oxfam could continue going strong and getting
closer to their end goal however there are some things that could stop this
such as natural disasters in developing counties which would slow down
progress, political conflict could affect the rate at which Oxfam could help
the developing countries.

 

Tesco’s mission statement

 

Like
all businesses Tesco has a mission statement, Tesco’s one goes as follows ‘Serving
Britain’s shoppers a little better every day’ https://www.tescoplc.com/about-us/core-purpose-and-values/
this is very important for Tesco in many ways, one of them ways is that Tesco
wants customers to have a good life and live in comfort knowing that Tesco will
have all the things the people need. The mission statement is made as it is a
goal that Tesco want to strive for so in this case they want to serve the
customers and give them better prices as they can. They have these objectives
as the main income of the business is coming from the customers so the happier
the customers the more money customers are willing to spend so if they fulfil
the mission statement this will lead to having more income and will lead to
even cheaper prices.

 

Oxfam’s mission statement

 

Oxfam
also has a mission statement which is ‘To create lasting solutions to poverty,
hunger, and social injustice.’ This shows that their aims and objectives is to
make a new world that doesn’t have hunger or poverty this will be achieved by
Oxfam saving lives and helping the poorest community’s they also invest in
programs that helps people make sure they have human rights so they can get on
the right track out of poverty. Oxfam has this objective as they believe that
no one should be poor this allows them to be successful 

 

Tesco’s structure

Tesco like many other
businesses has a business structure Tesco has a tall structure this is a
picture of the structure  

 

 

 

 

 

 

 

The span of control is quite wide as on one of the layers
there is 8 junior employees which makes it a wide span of control. The Chain of
command in Tesco is quite tall as there are many layers. Tesco has functions
that helps them achieve their aims and objectives there are six of them
starting off with sales this is important as this allows them to make more
profit. The second function is production this is important as Tesco want to
insure the customers get the best quality products so production is very
important for the business to make profit. The third function is finance this
is important for Tesco as they can create a budget so they can plan there
expenditure so they don’t fall into debt. The fourth function is human
resources this is very important as well and it shouldn’t be undervalued
because it give the staff and the workers motivation and will make them to
strive and achieve their aim and objectives. The fifth function is marketing
this is one of the most Important one for Tesco as it brings up awareness about
their company and it can attract more customers. The sixth function is
operation is the process e.g. the delivery of products and production of
products this also very important as it allows Tesco to achieve their aims and
objectives because they can get their products to the shelf’s very quickly
which insures they will make a lot of revenue as they can sell their products
really quickly. These functions will impact decision making as if they can make
enough sales then they will be able to make more open opinions such as getting
into a new market in addition if they produce a lot of products they can open
up new stores if they have a surplus of items. The function that will impact
the most is finance and their budget if they have a very large budget they can
make more risky decisions whereas if they have a limited budget they wouldn’t
be able to make a big decision. The Tall structure also affects the decision
making in the business as it will take longer to make a decision as they have
to tell all the layers that could take a long time. This impacts the aim and
objectives as if it take them a long time to make a decision then I could
eventually lead the business to a slow rise in profit whereas if it was a flat
structure they could make a decision much quicker which would lead to a quicker
rise in profit.

Oxfam’s structure

 Oxfam’s structure has a tall structure but a
bit flatter that Tesco as it is a slightly smaller business compared to Tesco
here is a picture of it

 

Oxfam is quite a big business so it has a wide span of
control as the Chief Executive has control of multiple different junior
employees this means that the chain of command is quite tall. Like all
businesses Oxfam has functions so they can achieve their aims and objectives
the first one is sales they sell the items for very cheap as they are not
trying to make profit so they can allow people to get out of poverty so they
can get closer to their aims. The second function of the business is production
In this case it is different as Oxfam does not make any products Oxfam does
provide services such as homeless shelters for the poor and they provide help
in developing countries. The third function of the business is finance like all
businesses Oxfam

*-+has
to make a budget so they plan expenditure in the best way possible in Oxfam’s
case Oxfam want to give as much money to the poor that they can so they have to
see if they can cover the cost of all the aids they provide without making a
loss so they can get closer to their aim and objectives. The fourth function of
a business is Human resources the volunteers need to have the motivation to
make their aims and objectives real without the motivation the Oxfam would not
be able to provide the aid in developing countries. The fifth is function of a
business is marketing this is very important for Oxfam as without it they
wouldn’t have the donations because they would be unknown. The sixth function
is operation