BTEC National Subsidiary/Diploma/Extended in Business

UNIT 1: The business environment

Assignment

Tutor: KAG

Hand out Date: 21/9/15

Due in Date: 5/10/2015 Peer Assessment
Final Submission 16/10/15

Work Checked By ……………………..

Student Name: Ayotunde Ogunwale

Grading Criteria Covered P1,P2,M1,D1
I have been asked to write a feature article in the next edition of the new paper titled business review. In my article I am going to be exploring two different types of business a profit making and a non-profit making; I will be focusing on the business Tesco and havering sixth form college.
Here is a description for different types of business: * Local: a local business is a business that provides good or services to a local population. for example a corner shop which is a small business the support the area through their everyday need, there are so many benefits in having a local business; for example having a good customer service, you get to have a better interaction with the customer and attend to their needs. Small business experience less bureaucratic inertia. This enables them to respond faster to the changes in the market more quickly than the big companies.

* National: a national business has a trade all over one country usually having store in all the big towns and cities .an example of a national business could be a post office which provides services all over the country by delivering mail; benefit of a national business

* International: an international business comprises all commercial (transaction (private, governmental, sales, investment, logistics and transportation)
That takes place between two or more region countries and nation beyond their political boundaries. International business as a lot of benefits some of which are; less competition, better-margins and diversify risk.

* Global: a global is a company doing business across the world. The exchange of goods over great distance goes back a long time .having global business means cheaper product, wider market which helps you gain and make profit. * Public: public sector is company that has been set up and taken over by the government. Also known as the part of an economy that is controlled by the state. For example the police stations which ensure the people in the UK are safe and are controlled by the government.

* Private: a private sector is a part of a national economy that is not under direct state control, it is run by a private individual or a group, usually as a mean for profit.in private sector activities are guided by the motive to make money. The private sector is legally regulated by the state. * Profit: a profit making business is an organisation who primary goals is to make money by trying to take in more money than they had spent, the owner can decide to keep all the profit for themselves or they can decide to put some or all of it into the business or share with their employees by paying them their salary. * Not for Profit/Voluntary : a non-profit business is a organization that uses it surplus revenues to further achieve its purpose or mission, it serves some public purpose and therefore enjoys special treatment under the law. Business like charity and havering sixth form are non-profit making business.

* Primary: the primary sector of an economy is the sector of an economy making use of the nature resources around them such as crop, oil or ores * Secondary: The portion of an economy that includes light and heavy industrial manufacturers of finished goods and products from raw materials. Businesses that make up the secondary sector of industry often require substantial machinery to operate, and they create waste that can contribute to environmental pollution * Tertiary: The segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants. The tertiary industry is split into two main categories. The first is made up of companies that are in the business of making money, such as those in the financial industry. The second comprises the non-profit segment, which includes services such as state education.

Havering sixth form College
Havering Sixth Form College is a sixth form based in wingletye lane Hornchurch, the sixth form was founded in September 1991 and throughout the year it as grown into a larger business ,because of the fact that numbers of student are increasing each year. It is one of the largest providers for 16-19 education in London; they have approximately 2400 full time student. It is run by the Principal Paul walker. The College aims to be the first choice outstanding provider of full-time education for 16-19 year olds in the area embracing diversity and creating excellent opportunities for all. They also aim to provide the best quality education for student who go to their sixth form; to do this they hired some of the best staff to teach the subject and courses.

Havering sixth form is both a combination of a non-profit and a local business meaning that it provides services to the student that lives in Essex and it is also owned by the government and doesn’t make any profit from providing services: So where do they get the necessary cash to run the business? They do this by asking the government agencies for the funding to keep business running. The purpose of this business is to provide free education for the student also known as the customer because we are getting a service.
It is both in the tertiary and secondary sector which means that it is selling its service to the public in order to raise finance to fund the sixth form e.g. maintenance; new building or the equipment for the school .but builds it building from the raw materials.

Tesco airfield Hornchurch
Tesco PLC is a British multinational grocery and general merchandise retailer headquartered in Chesnutt, Hertfordshire, England, and United Kingdom. And it was founded by jack Cohen in 1919 but the name Tesco first appeared in 1924 after Cohen purchased a shipment of tea from T. E. Stockwell and combined those initials with the first two letters of his surname. Originally a UK grocery retailer, since the early 1990s Tesco has diversified geographically and into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and software; financial services; telecoms and internet services. The 1990s saw Tesco reposition itself; it moved from being a down-market high-volume low-cost retailer, to one which appeals across many social groups, by offering products ranging from its "Tesco Value" items (launched 1993) to its "Tesco Finest" range. This broadening of its appeal was successful, and saw the chain grow from 500 stores in the mid-1990s to 2,500 stores fifteen years later. Tesco airfield is one of the stores which are based in Hornchurch, the aim of Tesco is to provide and supply service to the customer or the consumer. Anyone buying more than 51% of all Tesco shares would be the new owner of the company Aims: Aims are set out to briefly describe what has to be done. Tesco's aims are set out below -: Objectives: Objectives are related to aims but present more information by maybe including a time period and percentage. Tesco's objectives are listed below -: Marketing - This department is responsible for controlling the sales of the product and actually putting it on the market to sell. They also carry out market research to compare and be competitive with other products which are similar on the market. They are also responsible for promotions of sales therefore they need to have a decent product on the market which is different from others and has a good chance of beating other sales. Tesco is a profit making business which means it makes it profit from supplying different kind of goods and product to consumers. Tesco is a public limited company (plc). A lot of big companies go public. The reason for Tesco being a Plc is because of its mammoth size. Due to its size it would be hard to raise enough funds for Tesco if it was owned by a sole trader or by partners whereas in a Plc (like Tesco) the company is owned by shareholders who fund the company. This happens by the people buying shares in the company and becoming shareholders. This is because unlike a private limited, a plc is able to advertise the sale of shares and sell them to members of the general public though the stock exchange. Being a public limited has loads of benefit for example, shares can be advertise ,shares can be sold through stock change and it is easier to borrow for the bank .although there are loads of disadvantage in being a plc like risk of taking over by a rival company for example Tesco as a lot of rivals company like Sainsbury, asda and Lidl; to try and beat their rival Tesco would try to sell their product at a cheaper rate by having a percentage off offers or in their advertisement they would try and compare their product to other company . The company is out to make profit as this is then reinvested to allow Tesco to run on a day to day basic. Tesco is also a franchise having over 3,561 stores and Tesco in 12 different county for example in china, Ireland and Poland, they are also known as different names like Tesco extra ,Tesco plus ,Tesco metro and one stop which are some of the franchise .

Tesco is currently in the secondary/tertiary sector as they produce their own local brand “Tesco value” they sell this product for less compare to the other brands that they sell. Tesco also provide service like Tesco delivery, which allows customer to order a list of item that they want from the location to be delivered to them and Tesco bank with offer a popular rang of simple personal bank like; mortgage, savings, credit card and personal loan.
Overall in this report I have looked at two different types of business a non-profit making and a profit making business. Their aims and objective are very different which provides them different outcomes, however I feel like the profit making business is better because it allows a business expansion and attracts a lot of investor. It is also better because the more your business expand the more employees you will need, this is good because it provide jobs for your local community.