UNIT 1 - Exploring Business Purposes

Introduction
This unit is based on exploring a business. There are two tasks in this assignment. I have been asked to do; Describe four types of business from the, primary, secondary, and territory. I will be describing their purpose, ownership, size, scale. Differences & Similarities between Business because each business are different from each other in so many ways. I need to illustrate how the 3 sectors are all linked together. All businesses have objectives which they aim to fulfill in order for their business to run smoothly and effectively as possible. I will also be, looking at the companies aims to see if they have reached them yet, or what they are doing to reach their aim. I will be explaining areas of growth.
As a result of the research I found the following information from research on the computer, getting help from teacher and by my own knowledge.

:Sainsbury’s:
Background information
Sainsbury's Supermarkets is the UK's longest standing major food retailing chain, having opened its first store in 1869. The Sainsbury's brand is built upon a heritage of providing customers with healthy, safe, fresh and tasty food. It differentiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation.
Size of business
J Sainsbury plc consists of Sainsbury's – a chain of 504 supermarkets and 319 convenience stores. A large Sainsbury's store offers around 30,000 products and an increasing number of stores also offer complementary non-food products and services.
Business sector
Sainsbury’s is currently in the Tertiary and Secondary Sector this is because Sainsbury’s provide services (they have banks), sell Food and also they have their own farm.
Main goals and purpose

At Sainsbury's they will deliver an ever-improving quality shopping experience for their customers with great products at fair prices. Their aim is to exceed customer expectations for healthy, safe, fresh and tasty food, making their lives easier everyday.

Type of ownership
The type of ownership is Sainsbury’s are public limited company (plc) – has its shares bought and sold on the stock exchange.

Key stakeholders
The key stakeholders for Sainsbury’s are;
Customers – they want a company to produce high quality, value for money products. They like to see improvements that give them better value for money.
Employees – their stake is that the company provides them with a livelihood. They seek security of employment, promotion opportunities, and good rates of reward. They also want to work for a company that they are proud of.
Suppliers – want steady orders and prompt payment. They also want to feel valued by the company that they supply. Name of Business: Iceland
Background information: A lakmi store is a store established primarily for the retailing of food. It is a grocery shop this shop of a grocery store, stocks different kinds of foods from assorted places and cultures, and sells them to customers. Business Ownership: Sole trade

Advantages and Disadvantages of ownership:

Advantages Disadvantages
Simple and inexpensive to establish. All profits go to the owner. Owner is personally responsible for business debts.

Products/Services: Frozen prepared meals, frozen vegetables and foods from different cultures.
Purpose: to get profit and provide service Size: Micro
Scale: Local Number of Employees: 3 employs Dentist office:
Background information
Dentistry is the known evaluation, diagnosis, prevention, and treatment of diseases, disorders and conditions of the soft and hard tissues of the jaw (mandible), the oral cavity, maxillofacial area and the adjacent and associated structures and their impact on the human body.

Size/ scale of business
Dentist size is large and the scale of the business is local
Business sector
Dentist is currently in the Secondary Sector this is because Sainsbury’s provide services.

Type of ownership
The type of ownership is dentist are partnership – has its shares bought and sold on the stock exchange.
Advantages and Disadvantages of ownership:

Advantages Disadvantages
A limited company sells shares to raise money for investment. Any company losses or debts are the responsibility of the shareholders (owners). More complicated to set up. Profits are shared between shareholders.

Young Veterinary Partnership
We treat animals. We aim to provide the best service by treating each animal patient as if they were our own pet and to give each the best possible veterinary care. Young Veterinary Partnership has been providing a high level of veterinary care for domestic pets for over 50 years. We offer the very best healthcare services for your pet in a friendly and efficient manner from our 4 surgeries in Ealing, Hounslow, Brentford and Chiswick.
Our experienced team consists of 4 veterinary surgeons who are partners in the business and 14 nurses. We can advise you how to keep your pet happy and healthy and are constantly updating our knowledge and skills to bring your pets the level of care and service they deserve.
Our purpose is that of a private profit making business.

Our Aims and objectives:
Aim: To make a profit by
• expanding in the local area
• offering more specialised services
• developing our administrative capacity to keep up with growth

Objective:
1. open up a new surgery in the Hounslow borough, initially offering part time services by the end of the year.
2. to employ one specialist vet in the area of internal medical cases in the next three months
3. to implement a more efficient computer system by the end of the year
4. to employ one new administrative assistant experienced in handling data bases by the end of the year.

Growth of the sector:
The veterinary practices in the UK are slowly growing especially in middle class areas where more and more people are taking pet insurance to cover the high costs of ever more sophisticated surgery. Around 17% of the UK pet population is now insured. There are now 18 million cats and dogs in the UK for a total population of 60 million people. About 7.5m cats are kept in households throughout the UK, this compares with 4.9m in 1979.

RSPCA
Background information
RSPCA stands for The Royal Society for the Prevention of Cruelty to Animals. The RSPCA's vision is to work for a world in which all humans respect and live in harmony with all other members of the animal kingdom. The RSPCA began in 1824 as the Society for the Prevention of Cruelty to Animals. The RSPCA is a registered charity (no. 219099) that receives no lottery or state aid. Its £82 million annual running costs are funded exclusively by voluntary donations and legacies.
Size of business
Regional inspectors were appointed, with local campaigners promising to raise £20 a year towards 'their' inspector's wages. This development created the nucleus of a national network of 172 branches in England and Wales that exists today. These branches run a further 38 clinics and 33 animal centres. In addition to the branch run establishments there is one other animal centre run by a trust and another run by a charitable company.
Business sector
RSPCA is currently is the tertiary sector this is because RSPCA provides services to help the animals that need care or special treatments.
Main goals and purpose
The main goals for RSPCA is reducing the use and suffering of dogs in medicines testing. The purpose is to give animals with special needs and give pets a loving care homes.
Type of ownership
The type of ownership RSPCA fit into is charitable trust; this is set up to raise funds and support other people and animals for good cause.

Key stakeholders
Employees – the employees will need to be happy to be working on a voluntary basis and also need to be caring for the animals that are suffering.
Governments – the government wants the business to be successful – it wants to see prosperous businesses that take a full responsibility in looking after the welfare of society.
Local and national communities – the actions of business can have a dramatic effect on communities. Community leaders therefore represent important interest groups.
Now I am going to Summaries the two businesses (Sainsbury’s and RSPCA) and I am going to compare the differences and similarities for both businesses that I have chosen.
The main differences between Sainsbury’s and RSPCA are that Sainsbury’s sell products, products like food, clothing and services for money. On the other hand, RSPCA provide services that can raise money for the services they provide for example they ask people to donate money and the money goes to the services they provide to animals that are suffering.
The main Similarities between Sainsbury’s and RSPCA are their sectors this is because Sainsbury’s offer services like banking and deliveries to people who can’t come to the store to buy their shopping. With RSPCA the provide services by giving animals a good, safe and caring homes and also to give medical cause an treatment.

Sectors In Business.

There are three sectors in a which a business operates:
Primary sector- The primary sector of a business involves changing natural resources into primary products. Most products from this sector are the raw materials and goods.
Secondary sector- The secondary sector of a business manufactures finished goods and all of manufacturing, processing, and building lies within the secondary sector.
Tertiary sector- provides services to directly to consumers.

Examples:
Primary sector Secondary sector Tertiary sect

I have chosen three different organizations covering the Primary, Secondary and Tertiary sectors.I have chosen to do: Primary – Cadbury Farm, Secondary– Cadbury Factory, Tertiary – Tesco

Primary – Cadbury Farm
The Cadbury Factory is supplied with Cocoa beans from Ghana in West Africa; it has been supplying the Cadbury factory for over 100 Years. Supplying the factories in Bornville - UK and both the Irish factories, Rathmore in Kerry and Coolock in Dublin. Ghana has been supplying the Cadbury factories with the tastiest Cocoa Beans since 1908 all the way till today.
As other chocolate brands make there chocolate with powder milk, Cadbury makes there’s with fresh milk to give it a more creamy taste and texture. The factories are supplies 365 days a year, from real farmers situated in Wiltshire in UK and Rathmore in Ireland. That’s 400,000Litres in Britain and 227,000Litres in Ireland everyday. In total – 17,000 Cows on a daily basis!
In every half a pound of chocolate a glass and a half amount of milk is added. The half cup is added for the enrichment on the chocolate as it is known to be a luxury chocolate since when it was first made.
The farms are made sure they are taken care of. They are visited on a regular basis to check the hygiene and health of the cows, to make sure they are well and are not suffering from any disease. This is done so that all the milk they are getting from these cows is fresh healthy and is not a health risk.
Attendance of workers is also checked to make sure all the work is getting done and is up to date. This is so the Cadbury factory workers know exactly what is being done and what isn’t. After finding out what is going on in the farm the workers who are doing badly either gets fired or is given warnings into becoming better workers.
Secondary – Cadbury Factory
Cadbury was a one man business. The name of the chocolate was the surname of the finder’s name, John Cadbury.
He moved to Birmingham from the West Country in 1704. Birmingham was the first shop he opened on 93 Bull Street Road, next door to his father’s silk business.
Cadbury then began to sell, Tea, Coffee, Hops, Mustard, Cocoa Drinks (Chocolate drinks). However Cocoa drinks was a luxury drink at that time and was only bought by the wealthy people. Drinking Chocolate was only introduced in the 1650’s. Back then cocoa beans were imported from the south and Central America and West Indies. Drinking chocolate was not powder back then either. It was served in a block that people would scrape chocolate of into a cup add boiling water or milk and drink it.
Cadbury then gradually started to see how popular drinking chocolate it. He than grew a passion towards chocolate and made his very first factory in Bornville – UK which has been open for over 100 years now and Rathmore in Kerry which has been open for 76 years and 76 years in Coolock in Dublin. Both the factories are supplied with the important ingredients which are; Cocoa Beans and milk. Once the factory receives these goods they roast the cocoa beans and begin boiling the milk whilst all the other ingredients such as; raisins are being prepared to be added into the mixture of making Cadbury chocolate.
Cadbury helps Ghana by paying them with money and also makes wells for them to supply the country with fresh clean water as most of them cannot access to clean water and drink dirty un-hygienic water which may kill them.

Tertiary – Tesco
Tesco is an international company. It is one of the most successful supermarkets in the world. It has different branches in different places. Some big supermarkets and some small local petrol stations. It plays a vital role as many people go there to shop for goods and essentials they need in daily life. These are things such as;
• Tesco Direct – PC, Photo & Gaming, Phones, Home Electricals, Sound and vision, Furniture & Kitchen, Home & Garden, DIY & Car, Jewelry& Watches, Sports & Leisure, Toys & Games, Baby & toddler.
• Groceries & Wine – Groceries, Recipes, Shopping Guide, Wine Club, Tesco VIN Plus.
• Entertainment & Digital – Tesco Digital, Books, CDs, DVDs, DVD Rental, Games, Tesco Jersey.
• Finance & Insurance – Car Insurance, Home Insurance, Insurance, Car Breakdown, Credit Cards, Business Cards, Loans, Savings, Travel, Online Servicing, Compare Car Insurance, Compare Home Insurance, Compare Motorbike Insurance, Compare Mortgages, Compare Gas & Electricity, Compare Credit Cards, Compare Personal Loans.
• Phones & Broadband – FREE SIMs, Tesco Mobile Pay As You Go, Tesco Mobile Top-up, Pay as you go mobiles, Contracts mobiles, Broadband & dial up, Internet Phone, Talk Wi-Fi, Home Phone, Ring tones & Games.
• More Online Stores – Tesco Diets, Travel, Photo Centre, Gas & Electricity, Opticians, Legal Store, Nutri Centre, Top Offers of the Weeks, Clothing, Flowers and Plants.
Tesco also do; Offers, Clubcards, Health, Community, Environment and Baby.
Tesco’s offers many brands to the public some of them are;
Tom Tom, Acer, Samsung, Logitech, DELL, Technika, HP Invent, Sony, Kodak, Canon and Fujifilm, Tesco Mobile, O2, Orange, T-Mobile, Virgin Mobile, Vodafone, LG, Motorola, Nokia, Sony Exricsson , BT, Binatone, IDECT and so on.

Growth / Decline.
Primary – Cadbury Farm
The Cadbury Farm is in growth. This is because so many factories depend on them. They have been supplying them since 1908 and every since have been making there country better by making wells for safe water for them to drink. The Provide Cocoa beans to the Factories that they make Chocolate out of for the public to enjoy the delicious Cadbury Luxury Chocolate.
The Cadbury Farm also provides the Factories with milk. However there are various farms like these that provide the milk to the factories in different countries. This is so that the milk stays fresh and does not go of if it is being transported.
The Cadbury Farm will continue to provide for the public and gain profit till the Cadbury Factory Decides to close down. Which means by then the Cadbury Farm will continue to remain in the Growth Sector.
Secondary – Cadbury Factory
Cadbury factories are currently in growth. They are not in decline because many people go to buy there chocolates which they make a high profit from. There are all different types of chocolate types they make such as; Whole Nut, Fruit and Nut, Caramel, Crunchy, ETC. They also make mini chocolate boxes that have a selection of all different types of Cadbury chocolate. They offer a wide range of chocolates to the public to suit there taste. They then sell it to companies such as; Supermarkets – Morrison’s, WH Smith ETC to sell there goods which the Cadbury Factory earns money from as they have given people to sell there chocolate.
The Cadbury Factory also tries out new flavors and kinds of chocolate to make there public try it out. This is how they earn more money as the more they sell is the more they will gain.
Tertiary – Tesco
The Tesco companies are currently in growth as many people go to shop there they have a high amount of money that they make. Many people depend on Tesco to go shop there which is why they have so much profit. They provide a wide range of goods to the public which helps them gain profit.
They sell multi cultural goods towards they public which helps them attract more people to there supermarket. They believe meeting people’s needs is highly important and they need to be able to make them happy for them to come back again to shop for more goods. Tesco also gets he latest products into the store so the public is not let down and they are able to receive what they were looking for. This could be anything from Crayons to Cheddar Cheese.

Comparing two business of different sectors
The two businesses I will be comparing to each other are going to be; the Cadbury farm which is in the Primary Sector and the other will be Tesco which is in the Tertiary Sector. The reasons why I will be comparing these two companies are because they have a lot of differences.
The Cadbury farm can only supply the public with raw materials such as; fruits and vegetables. It is situated in Ghana – West Africa. The Cadbury farms main customer that they supply is the Cadbury Factories, which is mostly cocoa beans and milk which enables them to make chocolate.
The farm has 100 -150 people working for them. You would normally expect the farm to have fewer people working for them however in this case there are many because they need to supply so many factories. They need more workers to get the work done and the farm has to supply the factories daily which is too much for a normal farm where only 7 people say would work.
The farm on its own is in growth as it sells many raw materials to the factories and gains money form it. The Cadbury factories also build wells fore Ghana as a way to say thank you. As in Ghana they have water problems and there isn’t much clean water there.
Tesco is an international company and is much different form the farm. It supplies the public however in a shop and you pay directly to the till point.
There is a wide range of goods sold in Tesco and it also sells organic foods that the farm would sell. The main reason of having a supermarket like Tesco is so that people are able to visit and buy different types of goods off the shelves. The main purpose of having this is so that people are able to buy the things they need all from one store and not go to others to buy different types as it would be much harder if everything was separate. It also supplies different ethic foods depending on the area that they are situated in.
Tesco is also in the Growth sector and it is still growing, this is because many people to there to buy there goods that they will never run out of money.
Tesco is an international company that is situated in many parts of the world allowing other people to shop at there store. This is making them much more popular in name and attracting more other people to buy goods from them. Tesco also has 205+ people working for them which means it is a large company. More jobs are invented everyday to make life easier at Tesco therefore it is still growing due to this situation.
However they both do have some similarities such as; they are both in growth and still growing and they provide the public with goods.
Another similarity Is that Tesco is a Public Limited Company and the Cadbury Farm is also one. This means that they are the largest type of business and they don’t close down until they have no money left to keep the company going as it is stably.
Functional areas in a business
There are functional areas in every business. There are different departments which help the business to flow easily as every department has it’s own requirements compared to other departments.

Functional Areas

Human Resources & Administration
This department is very important to the business, this is as in HR the staffs needs must be met. This may including things like organising training courses for staff, hiring and firing staff, making their working environment more comfortable, or even sorting out absences (this is called administration) and maternity/paternity leave. In HR this is all done by consulting legal experts to find out exactly what action must be taken and in what way it must be done. Then using the computers, prepared by the I.T. department (which work hand-in-hand with HR) all of this will be documented and planned. Human Resources, in its essence, is looking out for the employees of the company. If HR doesn’t think about the rights, and needs of the staff: then they are not doing their job properly. Human Resources are valued by other departments very highly as they help with such things as finding staff for the departments or anything else they need. Human Resources work with many services within the business, e.g. “central services” such as the switched board, reception, mail room, security, cleaning, building maintenance, and the staff canteen. Human Resources can be thought of as a helping hand for everyone.

Sales and Marketing
Sales and Marketing get the product out there and make it known, whether it be advertising on radio, billboards, posters or TV, or simply producing a catalogue. The three things Sales & Marketing specialise in are watching over the sales, preparing and distributing mail order/trade catalogues, and offering a high level of customer service. Customer service is very important to the success of Sales & Marketing as the aim of Sales & Marketing every year is to increase the number of items sold. If a customer has a problem and you aren’t helpful, then they most probably aren’t going to use your services again. This proves that customer services is very significant to the success of sales and marketing. Sales and Marketing have to work with other departments, to find out exactly what they are advertising, and how they must do it. After this, they will produce a catalogue which will be distributed to clients, giving them the options to buy from the company.

Production
There is a 3-part process to making the shirts & ties. These are:
1. Cutting – Placed by the stores. The material is cut then labelled standard, or customised.
2. Machining – Passed on to machinists who sew the materials together.
3. Finishing – Add the finishing touches like labels and buttons.

At Philip Markham, quality is taken extremely seriously and is kept to a high standard.
Production are responsible for hiring 2 types of staff: Purchasing, and designers. Purchasing are in-charge of keeping high-quality fabrics in stock. The designers keep with the fashion and try to create a new style each and ever year. They have to obtain new fabrics and create new attractive designs that will appeal to their target audience, and while doing all this, work 6 months ahead of the time (so that there is plenty of time to add them into the catalogues and have them printed). Sales and Marketing actually work together at times, as the feedback, and suggestions received must be passed on to the designers so it can be carefully taken into consideration, and changes made if necessary.

Finance
Finance is a small but necessary department, with a team of just 10, this department is always kept busy. Finance is in charge of making sure the business receives all its money that is owed, and makes any payments needed – this includes bills, wages, and items/materials bought. Finance monitors the budget of other departments, while the head of any particular department is in charge of what is spent and what on.
Finance can relay back information to you that is needed about the money of a department, when needed. Finance sort out all VAT and inland revenue (accounts). There will also be one or more staff working on checking if the number of necessary sales have been met, and that production levels are running well. Finance is necessary to the profitable success of the business. Finance works in co-operation with many of the other departments, mainly Sales and Marketing and Human Resources. Finance is critical to success. Many departments will have to work in co-operation with finance to check if what they are buying (and selling if spare materials are not needed) is alright and finance will sort out the money side of it and make sure it goes to the right place.

Catering Manager – This job role involves taking care of the employees needs for food:
Finding out the prices the employees will pay, finding foods they want to eat, making sure they are happy with what and how they are served, check if anyone has any major allergies and taking responsible action from there and just really seeing if the catering service is effective and making sure that the food is able to be served and consumed within the time given.

Sales and Marketing
Mail Order Supervisor – This job will entail such tasks as making sure all mail orders are sent out, maybe working with customer services to work out if there is a problem, checking that there are no oddities in postage prices, making sure that the mail orders are responded to quickly and the requested items are sent through to the customer as soon as possible. This also may include forwarding order details and billing details to the finance department so that they can receive and document the money going in and out.

Finance
Payroll Staff – this job title entails the task of managing all employees wages that must be paid and any other money that must go out to the employees. Payroll staff must ensure that everyone’s wages go out at the right time and that the right amount is being given to everyone. Payroll Staff have to take care of any problems that may occur with an employee receiving their pay. Payroll take into account tax, and national insurance of the employees that they need to take into account. They also take care of any deductions from pay for whatever reason.

Production
Designers – the designers must always be working ahead of the time to create the latest fashions that are ready to be printed by the time all the catalogue’s and leaflets/advertising go out. Designers must research up on the latest fashions and the fashions to come and create good-quality and cutting-edge designs. As well as recruiting new fashions, design aims to create some too, this could mean new fabrics, new items and materials, and cost would have to be worked out. Design works very closely with Sales and Marketing to get the best advertising and appeal out to the customer and to show the item to its finest extent.

Profit : The main purpose of a business is to make a profit, part of which will lend itself to investing in the business i.e. to plug money into stock and covering overheads (electricity, employees etc). Part of the profit will be used by the business owner as disposable income, to contribute to personal expenditure such as a higher living standard, motor vehicles, holidays etc.
Not-for-Profit: charities or State and Local authorities do not aim to gain money for private interests. They may provide services at costs, or below costs (if they are subsidised). If money is left over after deducting all the costs, this is called surplus and may be reinvested to improve services or expand the coveage.

Types of Business Ownership:
Sole Trader: A business owned by one person, even though there may be several employees.
Partnership: owned and run by two or more people. Partners are jointly responsible for the business, and if there are debts they are all liable (responsible) for them. Usually professionals: Lawyers, architecs, doctors, vets. etc…..Unless a business is registered as a company, its owners are liable for any debts incurred by the business and their private possessions may be empounded if they can’t pay.
Companies are registered with Companies House, and the owners are not personally responsible for the debts, they only lose as much as they put in. This is limited liability. There are two types of companies:
Private limited company (Ltd): The owners each own a share of the business and receive dividends from the profits according to how many shares they have. Usually family businesses. As well as being share holders they are also directors and run the company.
Public limited companies (plc): Large companies, their shares are sold to the public on the Stock Exchange. The directors are paid a salary to run the business for the share holders. By selling shares the business can raise large amonts of money to expand and develop.
Franchise: Usually a large plc called the franchisor sells the right to use its brand name and its products to a small business (the franchisee). In return the franchisor gives help and support to the franchisee to run the business.
Size-
The size of the businesses explains it’s growth depending on the number of employees it includes. The size of a business varies in the amount of the employees.
Micro size – 1-5 employees
Small- 6-99 employees
Medium- 100-249 employees
Large- 250 employees
Scale
There are different types of scales for different businesses such as international, national, regional, European, local.
International business is the business that is based worldwide.
National business is based all over a country.
Regional business is only in one part of the country but has more than one branch.
European business are only in Europe and lastly local business is the business in the area your living in for example- a off-licence shop.

Purpose
There are usually two purposes for a business and they
• To make a profit
• To provide a service.
Some businesses are to make profit such as supermarkets and some businesses are to provide a service without cost such as library that provides educational service and charity shops which help the poor.

Aims and Objectives
Aims and Objectives are set and used by every business. This is to help them reach their potential, and make it clear what they want to do. Aims and Objectives are linked in o a company’s Mission Statement - You can usually find out what a business does by looking at their mission statement. An aim, is what the company wants to achieve, e.g. “We want to expand”, an objective on the other hand is more of a specific task they want to achieve, e.g., “We want to open 2 more branches”.
Mission Statement
A mission statement sets out the business vision and values that enables employees, managers, customers and even suppliers to understand the underlying basis for the actions of the business.

How Functional Areas interact with each other?
Functional areas interact with each other to ensure that the business flows smoothly. For example, Production has to interact with Human resources if they have less staff. Finance links with Marketing because if the budget is low than the marketing team they might have to work something cheaper out. In a business all functional areas interact and link in with each other. If the functional areas don’t interact and there is break of communication than they business will suffer especially if it has just started. It is important they interact because the business will flow smoothly and it will achieve its aims and objectives. Small companies will have department but they will be managed by 1 person whereas in a big company there is more demand so there are different departments for every functional areas.