P1/P2 - the Type of Business, Purpose and Ownership of Two Contrasting Businesses

HELPSHEET For PART 1 - Create a ‘brochure’ using publisher - the layout / format is as follows:

P1/P2 - The Type of Business, Purpose and Ownership of Two Contrasting Businesses

Introduction - Explain what your brochure is about. For example: There are different types of business organisations all over the world, all belonging to different sectors of industry. In this task, I am going to explain the range of different business purposes, business ownership and business sectors, then investigate two local contrasting businesses.

Business Explain what the term business means and why businesses exist

Range of Different Business (using page 4, 5 & 6, plus the internet for evidence / screen shots) Research and explain the following in detail with a relevant business example for each:  Local  National  International  Global  Public sector business – GOVERNMENT RUN FOR THE PUBLIC  Private sector business – PRIVATELY OWNED TO MAKE MONEY  Not for profit business – CHARITIES  Primary sector business  Secondary sector business  Tertiary sector business

Types of Ownership - (using page 9-10, plus the internet for evidence / screen shots) Research & explain each of the following bullet points in detail (include the type of liability they have, the limitations of that liability, and the risk they run having that liability) with a relevant business example for each:  Sole trader (Unlimited liability) – A Sole trader is usually a person who works on their own, with sole ownership of the business. They can employ others to help. A sole trader has unlimited liability which means that if they run up debts these become the responsibility of the owner. The risk of this is if he cannot pay his debts he will have no legal protection and may have to declare himself bankrupt. As he has unlimited liability the court can ask him to sell him personal possessions as well as his business possessions to pay his debts. An example of a sole trader in Folkestone is. . .  Partnerships (Unlimited liability)  Private and public limited companies (Limited liability)  Government departments  Government agencies  Worker cooperatives (limited liability)  Charitable trusts

For two contrasting businesses explain the following: o Range (local, national, multinational, global)

o Activity Sector (primary, secondary, tertiary)

o Business Sector (public, private, not for profit/voluntary)

o Ownership (see list above)

o Implications of that type of ownership

o Business aims

For PART 2 – ON A WORD DOCUMENT

What is a Stakeholder – explain what a stakeholder is. (using page 11)

How different stakeholders affect (name 1 st business) You will need to explain how each of the following stakeholders has an affect on your business. (using pages 11 & 12, plus the internet for evidence / screen shots

 customers  employees  suppliers  owners  trade unions  employer associations  local and national communities  governments

How different stakeholders affect (name 2nd business) You will need to explain how each of the following stakeholders has an affect on your business. (using pages 11 & 12, plus the internet for evidence / screen shots

 customers  employees  suppliers  owners  trade unions  employer associations  local and national communities  governments

M1 - The points of view of 4 different stakeholders groups seeking to influence the aims and objectives of two contrasting organisations. You have already identified there are different stakeholders and they have different impacts on your two businesses. Now you need to explain this in more detail and explain how their points of view can influence the objectives of two contrasting organisations (these may be the same businesses or you may wish to choose two different businesses Use page 20 for guidance.

For each organisation you have been researching, choose a minimum of 4 stakeholders:  Explain how they influence the organisation IN DETAIL  Explain why they are trying to influence the organisation IN DETAIL  Explain what each stakeholder is trying to achieve by influencing the organisation  Then explain how this could influence the aims and objectives of the organisation

NB: Remember the organisation will aim to make as many of their stakeholders happy as possible, therefore their points of view will be considered as part of strategic planning

D1 - Evaluation of Stakeholder Influence  Make a judgement on how much influence you think each stakeholder group has and explain why.  You must include a evidence from a variety of sources to support your judgements and assess the validity of the sources

To enable you to do this in detail you may need to include information about the relationship between the business and their stakeholders

For example - At Asda, the employees try to develop good working relationships with all their customers by being polite and friendly at all times and always willing to go the extra mile if needed. (screen shot evidence) This creates a very relaxed and stress free environment for the shopper which means their relationship is a good one. However, when customers do raise relevant points through feedback, (screen shot evidence) such as why stock is not replaced quickly enough, Asda make every effort to ensure their suppliers are delivered on time. (screen shot evidence) Whereas, when looking at the shareholders relationship with the business we find it is mainly driven by how much profit the business can make, which can make the relationship difficult to manage when balancing customer’s needs against potential profit. (screen shot evidence) This is highlighted when shareholders demand higher annual dividends, however, in these cases, Asda do their best to ensure profits increase every year through the negotiation of special offers with their suppliers, (screen shot evidence) which in turn creates good working relations with suppliers.

When looking at the managers we see...... when looking at the competitors we see...... when looking at the government we see . . . .. and so on!

 The influence each stakeholder has by raising relevant points and the criticism each stakeholder may make  How your business responds to this criticism

You will need to make sure you:  use evidence from different sources (if stating a website address within your text as evidence you must make it clear what point you are trying to make).  asses the validity of the evidence e.g. is there any bias, is the information transparent

ADD A BIBLIOGRAPHY: (ie: where you got the information from. . . BTEC level 3 business book, www.Tesco.co.uk, www.nationalstatistics.co.)