...type of business, purpose and ownership of two contrasting businesses. The business I have chosen to do is Tesco and the Oxfam. Tesco is a supermarket in the UK and 11 other countries in Europe and Asia. Tesco was established in 1919 which means the business has been running for 96 years. Since then Tesco has the third highest retailer in the world measured by the company’s profit. It also has the second biggest retailer in the world measured by the company’s revenues. Tesco is mainly known for selling food and drinks. However, couple years ago they expanded their business as the company has now began to sell different types of goods such as electronics, cloths, toys and etc. This means Tesco has now got more people to come into the supermarket for a reason to buy goods. The other business I will be looking at is Oxfam. Oxfam is an international charity. Its aim is to find ways to stop poverty from happening in places like Africa and Asia. They do this by getting people to donate money clothes and money which will then get off loaded to countries in Africa, Asia and even to the poor people in Europe. The organisation ‘Oxfam’ was established in the UK on 1942 at 17 Bond Street in Oxford. The business has been going for 73 years and since then the organisation has helped over a million people all over the world who are suffering. In business there are two types of companies. One is a profit making business (like Tesco) and the other one is a non-profit making business (like charities...
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...The main goal of most businesses is to gain profit and have less spending costs all together. If a business is not making money, the owner of that business really has no reason to keep that business open. It is both a waste of time and a waste of money if there is no profit to be made. Many businesses deal with money all the time but how do they really know how much profit was made at a certain point of the year or a certain time of the month. If a business cannot keep track of the money coming in and the money being spent it cannot keep track of whether it is making money or loosing money. Fortunately, we have a solution to keep track of the money our businesses are making and the money our business are spending. Our Solution to our questions about cash flow is financial statements. Financial statements can be beneficial to internal and external sources that are interested in making a business grow. There are four basic financial statements that makeup the backbone of financial accounting. These four statements are balance sheets, income statements, retained earnings statements, and statements of cash flow. A balance sheet is used to show your business’s assets, what your business owns, and the business’s liabilities, what your business owes. It can paint a picture of your business’s finances at a specific point in time. An income statement shows how successful the business was for a certain season of the year or a certain period of time. Expenses are subtracted from revenues...
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...on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t make profit within a couple of year or more then it is suggested to close up the business or start to plan any new strategy that will allow a business turnaround by earning money rather than losing money. Starting...
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...on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t make profit within a couple of year or more then it is suggested to close up the business or start to plan any new strategy that will allow a business turnaround by earning money rather than losing money. Starting...
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...In the world there are a lot of people with all different types of characteristics. Some of those people open their own businesses, provide services and make money in doing so. Entrepreneurs of all different business industries carry a lot of the same types of characteristics. In fact, it is probably why they become successful in the first place, but people are motivated by different things which are what drives them in the first place. Some people are motivated by pure profits. Donald Trump is an example of this type of entrepreneur. He entered a business that he was very comfortable with in order to tap the market and make money. The other type of entrepreneur is one that makes money while serving their community. Oprah Winfrey is a perfect example of this type of entrepreneur. Her goal is to be socially responsible and puts her community service in front of money making. Although both of these people are rich and share similar characteristics, their business principals and leadership strategies are very different. Donald Trump was born into the real estate business. His father raised him in the lifestyle and prepared Trump with the tools he would need in order to be successful. When it comes to business Trump has a pretty straight forward out look on things. If it made him money he would dive in full force and once he took on a project there really was no stopping him until her reached his goals. Trump’s style was based off of his own intuition and charisma. “He has mastered...
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... Contents Page 1. Front Page 2. Contents page 3. Introduction 4. Business Costs 5. Carrying on Business costs 6. Carrying on Business Costs 7. Cash flow forecasts 8. Financial documents 9. Carrying on financial documents 10. Carrying on financial documents 11. Managing business finances 12. Managing business finances Introduction In this assignment I will summarise the difference between start-up and running costs, which will include a table showing these. Along with, summarising the difference between fixed and variable costs which will also including a table showing these. I will then write a summary explaining the importance of the following: * Sales revenue * Calculating total revenue (unit sales price x number of units sold) * Gross and net profit * Maximising profits (increasing revenue and/or decreasing costs) Later I will then calculate the profit or loss for the first year, using the data in Project 3 and advise him as to how he can make his Business more profitable. Secondly, I will create a PowerPoint presentation showing the usefulness of break-even analysis. I will start by writing a detailed description of what is break even analysis and explain the reasons why break even analysis is important to a business. I will then construct a Break Even chart using the data given for Julian & Johns’ business. I will finish the presentation off by Analysing and explaining the effects of changes...
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...The Business Environment Unit 1/Assignment 1 Callum Whitehead Introduction In this assignment I am going to be describing the type, purpose and also ownership of two contrasting businesses. I will then look at stakeholders and look how they influence the businesses, look at how they are organised and explain how their style of the organisation helps to fulfil their purposes. Task 1 (Part A) My 2 contrasting organisations: 1. NHS 2. Microsoft Location – Explain different locations and give examples. Below are some types of locations within a business and how different they could become 1. Local: Local area/ Spilsby/ Spilsby theatre/ hair dressers/ local plumber. 2. Regional: Lincolnshire – based in this region, for example, swimming pools 3. National: UK, e.g. Morrison’s 4. International: only some businesses, for example, Tesco 5. Global: Most businesses, for example, McDonalds and Microsoft However, relating this to both of my contrasting organisations, NHS is more of a National Organisation as they are only working for people within the country as it is a government run Organisation. However, if I was to relate this to Microsoft then it would be different because Microsoft is a Global Organisation, they will produce their products to be sold to everyone. An example of this would be selling phones to people around the world and making money for the Organisation. This could lead to a rolling circuit. For example, if Microsoft was to...
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...Stakeholder rank of importance | Business | | Costa coffee | The dogs trust | 1st | Customers – customers are the people who buy products/services from a business. Customers are interested in the business because they are the ones who use the products/service which it provides. I think the customers are the most important stakeholders for costa as without the customers they would make no money and the business would shut down. Therefore costa has to keep regular customers happy at all times so they return and also try to bring in new customers or there is no point in the business existing. | Customers – customers are the people who buy products/services from a business. customers are affected by the business as they are the ones who are helped by the charity, and the reason the charity started up. I put this group first as if the group didn’t exist neither would the company as a company revolves around its customers and if there were no customers to use the service there would be no business. | 2nd | Owners – owners are stakeholders because it is their business which they have invested money and time into so they want it to be successful and make a large profit. They are important because they are the ones who set up and invested the most money into the business. They would probably have the highest level of interest in the business as they want it to make as much profit as possible because the more money the business makes the more money they will earn. | Local community...
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...have said you are facing trouble with making a profit in the small business of Riverside then I will look at your accounts and see where they can be improved. Also just to say thank you for coming to me with your issues. A budget is an estimate of expenditure for a set period of time. Small businesses like yourself prepare budgets for many reasons, firstly the reason being budgets set targets so then the business can successfully save some of the profit they generate and then can save up for stuff in the short term and long term. This is a very good idea and way of budgeting as if you save up the profit from Riverside then if the business does go into any debts then it can be paid off through this method. Also if either of you two have new ideas that need funding heavily then saving up again, for example out of the budget you can just take one or two hundred pounds out a month that won’t take a massive percentage of the profit out of the business but will add up and be a good savings amount if things go wrong. As on the balance sheet I can see that you are not making profit, so for this moment in time this will not be available so it shall happen when the business starts generating profit again. Another reason why the budget is so important is that with the priorities set out (Priorities set from the balance sheet.) Then everyone in the business knows what the aims and priorities are of the business. As the business isn’t making any money you two need to be able to be in full...
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...Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer. Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior. Good business ethics should be a part of every business. There are many factors to consider. When a company does business with another that is considered unethical, does this make the first company unethical by association? Some people would say yes, the first business has a responsibility and it is now a link in the chain of unethical businesses. Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor. If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental laws and received fines worth millions. The problem is that the amount of money...
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...Business Planning Business Plan Introduction My idea for the business that I will be planning is a ‘dog grooming’ business, offering a range of treatments that can be purchased and used in order to care for dogs, ensuring that they are as healthy and clean as possible. This isn’t a very competitive market to enter as there aren’t many dog grooming companies that operate within the UK that can dominate the market nationwide; there will be larger ‘regional’ dog groomers that could possible dominate a specific region/county of the UK. I believe that I will benefit from creating this business and so will the community that is within the surrounding/local area. A lot of people own a dog(s) as pets, with stats from 2013 showing that there are roughly 8.5 million dogs kept as pets within the UK (25% of households) (app 3). A huge amount of people love their dogs and love to care for them, ensuring that they are treated the best way possible, so taking them to a dog grooming service is a great way of caring for them. * Aims & Objectives An aim is a specific goal or purpose, whilst an objective is a specific result that a person or system aims to achieve within a time frame and with available resources. In general, objectives are more specific and easier to measure than goals. Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance. Some examples of business objectives...
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...on making decision whether they have enough money to progress through to the next step of planning, expanding the business and earning profit for themselves. If budgeting or planning doesn’t exist in management, there is a risk on business spending more money than earning it, in other words, not spending enough money to expand the business and stay on competitive level. Budgeting is also helpful in planning the years ahead. For example if a company are planning to purchase a new product, budgeting may help to decide whether how much money are needed to spend. All these planning takes time and money, so budgeting is a key component here by acting as a timetable on when the money is needed, how much amount is needed and what results to expect as the money and effort have been use on whether the company is making any profit. Budgeting is an important planning tool, as other planning strategy such as marketing expenditures or salary levels failure to compromise it will affect the company planning term. So every decision must be well plan and decide to meet the objectives in order for the company to be successful. A budget also helps to keep track on the business whether the company is earning profit and making any necessary changes if needed. If a new business doesn’t make profit within a couple of year or more then it is suggested to close up the business or start to plan any new strategy that will allow a business turnaround by earning money rather than losing money. Starting...
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...have an impact on Costa Coffee because they are going to have to pay business tax and this also means that the government is following their fiscal policy. If the government decides to increase tax it is going to slow the economy down and if the government decides to low tax it is going to speed up the economy. If the government decides to lower taxes, then Costa is able to invest money into their business. This is going to result in a positive impact because Costa are able to keep most of their profit and invest it into their business which is going to allow their business to grow and expand. There are many way in which the government is able use taxation to make sure that they are receiving money. Some of the ways in which the receive taxes are income tax, national insurance contributions, VAT, council tax, business rates, corporation tax and other tax. All these are a mixture of direct and direct tax. There are many ways in which taxes are bringing advantages to Costa Coffee and disadvantages. In the Government Spending 2010 review, it shows that the government had a total of £548bn coming in through different taxes. It shows that a small amount of the money coming in was from business rates. This shows that this must have had a positive impact on Costa Coffee because they are a large business and they didn’t have to pay a large amount of money for taxes in 2010 – 2011. This also shows that the business rates were low and they didn’t have to pay high taxes and they were...
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...methods would have been to the business Internal Secondary Sources This will be useful for the business as they will be able to get data from the business itself. This method will give the business information but there are weaknesses. The weaknesses of this research method would be that the business would have to spend a lot of time researching as the business would be holding a lot of information so it may be hard for them to decide which information to use. The business could be finding information whether or not to stop selling a certain product to the customers as it may not be selling or profiting the business. But the information which they have will be valid as it’s from the business itself. All of the sale figures of the products would be on the businesses system which the business would be able to access....
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...35% return on capital would appear obviously desirable. This means that it would be easier to see if the business is doing well using percentages because using the profit doesn’t really show if the business is doing well overall. This will help motivate staff as they have a target set for them to achieve, this means to keep their job they will work more harder, which means the quality of production will increase. One other strength is it evaluates the project on the basis of its profitability; which shows whether the business should put more money in or less money. So if they are making a lot of profit they would put less money in but if they are making less profit they would put more money in to invest and grow the business. A limitation to the company would be The Timing Problem (The business may have spent a lot on R&D or NPD – Otherwise may be higher.). This doesn’t help the company because for example, if the company was to make £1m profit from the start, this is really good it shows the business is off to a good start. However, because we would want to help grow the business we would spend a lot of this profit to advertise the business, recruit more people and improve buildings and facilities, but we were left with £1000, the figures of the ROCE doesn’t really represent how much profit we made from the start, so outsiders who may want to invest in the business, would not want to and they would...
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