P1 Unit 1 Business Environment
Unit 1 – the Business Environment
Assignment 1- Types of Business
Task 1
Tesco is a private organisation from the UK. Tesco is a supermarket which provides people with things they need like food and drink. It provides people with both a product and a service. In competition with Tesco are the other three major supermarkets from the UK, Morrisons, Asda and Sainsbury's. Sainsbury's increased its market share over the past year, it grew from 16.4% to 16.6% and had a growth of 5.1%. The other retailers (Asda, Morrisons and Tesco) have all lost market share over the past year, although Asda is ahead of Tesco and Morrisons in terms of its year-on-year sales growth, which stands at 2.4%. [1]
Tesco is a supermarket which operates in the UK, …show more content…
The advantages of the business ownership is that it can sell shares and can raise more money than other types of business in this way. As the shareholders have limited liability it means that the only money they can lose is what they have invested in Tesco, so if it fails they aren't forced to sell their own possessions. However there are disadvantages of this type of ownership, for example if shareholders aren't happy with dividens they can sell their shares. And they have to report to city workers every three months about their profits and performance so they tend to make a lot of short term decisions. This type of ownership suits Tesco because Tesco is a very large company, and because of this it would be hard to raise enough funds for Tesco if it was owned by one person or by partners, but because it's owned by shareholders it can have enough funds for the the company.
The ownership of the NHS is the government, but it is funded by taxes from people in Britain. This is an advantage because it means that the healthcare people receive is free and that is an advantage. However a disadvantage is that the funding is limited so the NHS doesn't always get enough money for things it might need to help the people it is providing a service
Assignment 1- Types of Business
Task 1
Tesco is a private organisation from the UK. Tesco is a supermarket which provides people with things they need like food and drink. It provides people with both a product and a service. In competition with Tesco are the other three major supermarkets from the UK, Morrisons, Asda and Sainsbury's. Sainsbury's increased its market share over the past year, it grew from 16.4% to 16.6% and had a growth of 5.1%. The other retailers (Asda, Morrisons and Tesco) have all lost market share over the past year, although Asda is ahead of Tesco and Morrisons in terms of its year-on-year sales growth, which stands at 2.4%. [1]
Tesco is a supermarket which operates in the UK, …show more content…
The advantages of the business ownership is that it can sell shares and can raise more money than other types of business in this way. As the shareholders have limited liability it means that the only money they can lose is what they have invested in Tesco, so if it fails they aren't forced to sell their own possessions. However there are disadvantages of this type of ownership, for example if shareholders aren't happy with dividens they can sell their shares. And they have to report to city workers every three months about their profits and performance so they tend to make a lot of short term decisions. This type of ownership suits Tesco because Tesco is a very large company, and because of this it would be hard to raise enough funds for Tesco if it was owned by one person or by partners, but because it's owned by shareholders it can have enough funds for the the company.
The ownership of the NHS is the government, but it is funded by taxes from people in Britain. This is an advantage because it means that the healthcare people receive is free and that is an advantage. However a disadvantage is that the funding is limited so the NHS doesn't always get enough money for things it might need to help the people it is providing a service