How Political, Legal and social factors impact on Asda

P6 – describe how political legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders

How Political, Legal and social factors impact on Asda -

Political impacts –

Political stability is usually defined as the state of peace that is normal experienced in a country from the activities from the government and also the government in this situation will make decisions and keeping the best interests in mind for people.

The conservative party that is normally referred as the Tory party and is a centre – right political party in the UK and as of 2013 it has become the largest political party in the UK and also the largest single party in the house of commons with 303 MP’s. Govt initiatives: is when the Government can support business through grants and tax reductions and an example of this is the solar panels grant.

Also when the government chooses to Investment finance this then involves selling part of your business (‘shares’) to an investor. The investor will then take a share of any profits or losses that the company makes.

The International Monetary Fund describes itself as “an organization of 188 countries that works to foster global monetary cooperation, to then secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduces poverty around the world.

The Government may change the tax rates up or down this will be to try help boost the economy, an example of this is VAT this means all non food and adult clothing range will need different prices on the shelf edge labels this then means staff will then have to go change the SEL’s ( shelf edge labels). Although this then will change the profitability and finance department of the company as they will then need to change the profit sheets that report back to the business.

The government have their own initiatives for companies and these are the healthy eating and fit for life, these are the type of campaigns that the supermarkets will try to support to then try get more funding or advertising for the company  from the government, this is  by the prime minister if he mentions how good ASDA has been supporting the certain campaigns.

Also the government are also offering support and funding to business that will or are offering apprenticeships, to then try getting more people in to a job and working life.

Legal impacts –

The legal impacts are that ASDA must follow the law, and an example of this is the trade description act, this is where the product most be described accurately otherwise it can cause an issue and an example of this the big issue with meat earlier this year, so it is extremely important that you describe the product well and accurately if not then the trading standards will have no other choice but to get involved.

Consumer protection is when a group of laws and organisations  have designed to ensure that the rights of consumers, these are put in place to hopefully prevent businesses that engage or are planning on engaging  in fraud or specified unfair practices to try and gain or taking an advantage over competitors.

FSA is the foods standards authority, this is where they regulate the amount of salt that is allowed in products and also the amount of palm oil that is allowed in the products and this is from the sustainable rain forests.

Health and safety standards are the most important, and for all the new workers will have a full day having an induction before that are allowed to start their job, they are also shown around their work place and they are also shown the areas that they won’t be allowed to go due the dangerous machinery.

The legal frameworks is where the business chooses the way it operates, this will then determine who has what role and share to the business, this will also determine the relationships between investors, employee’s customers etc.

Social impacts - 

The social impacts that ASDA may face are the difficulty to recruit the right people for the job in the stores or the offices depending on where they will be based, also most of the workers that are in the stores are an unskilled workers on the minimum wage given .

ASDA is a company that will support charities and the main one they support every year is tickled pink, they are always thing outside the past ways they have raised money to, give customers a new product to buy to support the charity.

ASDA has a company cannot discriminate anyone from having a disability, different religion or if they are pregnant and other things on this terms and when they are employed by the company or if they are in the HR Department they are then recruiting they are also not allowed to ask questions in these areas.

ASDA like to support their local community and an example ASDA helped out in a local park in Bradford, by tidying it up and planting new plants to make it look more presentable and cleaner, they also do talks in schools in local areas and give out free stock for sports days.

Demographics are the main numbers in a given population these can also be used to identify gender, age, ethnicity, also the knowledge of languages, disabilities, mobility, home, and employment status, and even the location you live in also most of the times these types of data are used widely in public opinion’s, polling and marketing.

Organisational Structures

Organisational Structures

P3 – Describe how two businesses are organised

Matrix –

The matrix structure is usually found in organisations that can deal with the special one off type of projects, also these companies can also work on several projects all at the same time.

Although while all of these projects are ongoing, they have and expert team seeing it through making sure it goes well.

 And the experts also support the major functions of the organisation, and by this I mean the financial, human resources and production.

Product –

A product structure is the way an organisation represents the parts of a product and the way they fit together and interact, also the organized levels in the detail based on the type of structure. Also this type of structure that is also used to manage the changes, testing and the problem resolution for the complex products with a large number of parts and functions.

Functional –

The functional structure is more of an organisational structure where the employees are all grouped hierarchically and then these are managed through the clear lines of authority and then only report to the only person in charge

Geographic -

The geographical structure is the way an organisation put things into a geographical units which are regional, national, and international, this means that they will need to report to one central headquarter, by doing this is administers to the core functions such as the planning and marketing.

Customer

The purpose of a structure –

Diagrammatic representation of structure (charts)-

This is a diagram that shows you the initial structure of a company, from showing who each employee has to go through to get a job done for example- you have the manager, a few deputy managers and then the workers. ASDA as six to seven layers below the CEO, this means that they have a lot of people to go through.

Divisions of work –

The divisions of work are where a company has different types of works and these are the manager, a few deputy managers and then the workers. Having these divisions at work means that the employees know, who to talk to if they need help.  

Lines of control -

This is important that they have deputy manager just in case the manager is in a meeting, and the workers need help the deputy mangers are second in line to be in charge if help if needed or if there is a problem. This also means that each layer in the structure for ASDA has a certain amount of control.

Communication –

Communication is where each layer of the structure passes on information and the changes a business may take to make the business more successful, this means also from the top layer to the bottom, everyone will find out things, having this structure will make things easy for ASDA to get information across.

Span of control –

Span on control is where each person in the structure can have control over a certain amount of people. For example for this is like a deputy manager has, a span of control over the admin sections and then the admin sections, would have a span of control over the other departments etc.

Chain of Command –

Chain of command is how many layers in a structure will need commands, for example ASDA has seven layers, this means that six of them layers will need commands.

Hierarchical structure/pyramid

This is used to show the organisation of a company from each level, it is important that the managers for ASDA are not responsible for more people than they cannot control the number of people a person can control is classed as the span of control

ASDA’s Organisational Structure -

The organisational structure ASDA has is a hierarchical style and this means, that there will be fewer people at the top of the company managing the people below. Plus this also will allow the managing directors, at the top of this chart to make the big decisions about which way the business should take next. These decisions are important and should be made by the top executives with the right experience and intelligence in this type of experience.

ASDA’S structure consists of seven layers; and these are each linked with a chain of command of six, this then means some messages may become distorted, also the CEO has authority over everyone but direct responsibility of 6 subordinates which means he has a span of 6. Also this structure is helping the company stay on top of issues and to stay organised by having one person send a direct message to everyone so everyone will know how it will need to be done on the day also each section will have one person in charge making sure they all are working and being sensible and making it look presentable.

Airedale Fisheries Organisational Structure -

 

Airedale Fisheries structure consists of one layer below the manager this means that the manager as a span control of four, this means that information can be passed through to everyone quite easily

 

 

The functional areas of ASDA

The finance department will manage the payrolls, invoices, P&L also balance sheets and the businesses performance, the finance department will also report how well the business is doing to the rest of the company departments. This will happen each day if there is any major area of concern, plus there will also be a monthly late lunch meeting for everyone in the ASDA house this then will be videoed and sent out to all of the stores.

Also the Human Resources department will work with all the different departments and will offer the training that will be needed, and will also help when recruiting the key people for the different areas. Also an example of this is the buyer may also leave a produce and then they will need to recruit someone who has an experience and knowledge about buying products.

Also the IT department will also work with all the other departments, because this department are always looking for new ways of doing things to help the business progress and move forward.

Also these people are not skilled buyers or interviewers for the business but they are also skilled in the ICT section and can fix problems and also design a new system for the whole business which they then may use.

Also the PR Department work extremely close with the press and they will let them know if there are any stories to report about ASDA, as they try to ensure that ASDA will be seen in a positive light, but this is not always possible for example when there was the big crisis over the meat.

The functional areas of Airedale Fisheries

The manager will manage the payrolls, invoices, P&L also balance sheets and the businesses performance, the manager will also report how well the business is doing to the rest if the employees.

Also the old employees will offer the training that will be needed and they are always looking for new ways of doing things to help the business progress and move forward.

Also the PR Department work extremely close with the press and they will let them know if there are any stories to report about Airedale fisheries as they try to ensure that Airedale fisheries will be seen in a positive light, but this is not always possible.

The business plan for ASDA is to sell their products to then make a profit to make the businesses more successful. Asda’s mission statement is "At ASDA, we value the trust placed in us by customers, suppliers and colleagues who give us their personal data. Data security is one of our highest priorities and we aim to be as clear as possible about what we do with personal data and why we do it."

The business plan for Airedale Fisheries is to sell their products to then make a profit to make the businesses more successful.

P4 – Explain how their style of organisation helps them to fulfil their purposes.

ASDA is a public limited company it is formally known as a PLC, they have a lot of stores across the UK, plus they sell a wide range of products, and this variety from food, toys, electronics, drinks, clothes, toiletries.

The background of ASDA started out as a group of Yorkshire Farmers and this was the beginning of ASDA in the 1920’s, also in the 1999 ASDA became more of a successful business when the parent owner brought in (WAL-Mart), in the beginning they started out from a market selling products in Leeds, but since then they grew out in to the northern area, then up to being a big based supermarket, and most successful in the European area.

The organisational structure ASDA has is a hierarchical style and this means, that there will be fewer people at the top of the company managing the people below. Plus this also will allow the managing directors, at the top of this chart to make the big decisions about which way the business should take next. These decisions are important and should be made by the top executives with the right experience and intelligence in this type of experience.

An example of this is that Andy Clarke was a regional store manager for many years until he was promoted to the main board and that is where he is now. Under Andy there are several layers of the hierarchy and “This is a relatively flat structure” Sarah Colclough – buyer at Asda “as there are thousands of people that work there and only 6 or 7 layers”

This helps ASDA fulfil there roles by having a director that is going to be responsible for each different area in the business.

 An example of this is that the customer services team is extremely important to the company so one person manages a large team in head office, or at call centres and in stores where every colleague is responsible for taking care of customers

Also the sales director is responsible for making sure that all the right products are bought for the store, although he doesn’t have change to check every individual one he knows they must ensure that the right people are buying these products. Also there are different types of buying teams that will need to focus on their area and then leave the other teams to look after their products.

Also by having this type of organisational structure it also allows each team to run in their own areas and research about them properly to help them find out about the new trends across the world and also try to be one of the first to market or offer out the best deals.

Examples of how each section of the business works will be explained below:

This will help the finance department fulfil their purpose by making sure the payrolls, invoices, P&L also balance sheets and the businesses performance, is up to date regularly and on time. The finance department will manage the payrolls, invoices, P&L also balance sheets and the businesses performance, the finance department will also report how well the business is doing to the rest of the company departments. This will happen each day if there is any major area of concern, plus there will also be a monthly late lunch meeting for everyone in the ASDA house this then will be videoed and sent out to all of the stores

 This will help the human resources department fulfil their purpose by communicating well with the other departments and making sure the training is done correctly. Also the Human Resources department will work with all the different departments and will offer the training that will be needed, and will also help when recruiting the key people for the different areas. Also an example of this is the buyer may also leave a produce and then they will need to recruit someone who has an experience and knowledge about buying products.

This will help the IT department fulfil their purpose by keeping focus and working and communicating well with the other departments. Also the IT department will also work with all the other departments, because this department are always looking for new ways of doing things to help the business progress and move forward.

Also these people are not skilled buyers or interviewers for the business but they are also skilled in the ICT section and can fix problems and also design a new system for the whole business which they then may use.

This will help the PR department fulfil their purpose by making sure the only thing the press talks about is good and also they will make sure there isn’t anything bad that can be said about ASDA.  Also the PR Department work extremely close with the press and they will let them know if there are any stories to report about ASDA, as they try to ensure that ASDA will be seen in a positive light, but this is not always possible for example when there was the big crisis over the meat.

Business Ownership

Know the range of different businesses and their ownership

P1 - Describe the type of business, purpose and ownership of the two contrasting businesses

Introduction -

In this task I will be looking at how two different businesses that contrasts with each other and I am going to find out the main purpose and ownership of these businesses.

Local –

Local is a company that will provide either a goods or a service to the local area and although a local business is most often used when referring to a locally owned type of business, and an example of a local business near me is Farmer Copley's. The types of things Farmer Copley's provide are a farm shop, a moo cafe, corn maze, florists and fishmongers.

The farm shop started off as just a small business that sold meat, fruit and vegetables, and it now has expanded itself into a cafe and runs events and they also put in place children's activities during the seasons.

The types of events they have in place are; in March they provide an Easter festival, and more, in April there is a cookery demo and book signing, also in may there is a food festival and many more in the other months. These are provided for children to adults then to family events.

They also have a florist and fishmonger that pay rent to be on Farmer Copley's land, also Farmer Copley’s is located in Pontefract West Yorkshire, and this is a local company where I live.

 And to say it’s a local company it’s still pretty known, they advertise themselves by having a Facebook page and they also have one advertisement on the TV and they also hand out leaflets from time to time, but they mainly hand out leaflets when they have an event on. They do this to try getting more people to visit Farmer Copley's.

National –

A national business is the business that is just across the UK only and an example of this is Morrison’s and also Morrison’s did start out as a local company in my area but then branched out so it became a national supermarket across the UK.

Morrison’s is a supermarket that is placed all around the UK.  It’s one of the 4 largest  supermarket in the UK, with over 400 stores, it first started off as a stall in the Bradford Market to then become what it is today a well know supermarket that sells food and your local groceries.

To make Morrison’s different to other supermarkets is by being distinctive and offer customers around fresh food craft skills though the manufacturing business.

These are these different sections on the website this is good as they have a separate section for family life. This is the only supermarket I know that has different sections for different things and it’s the only supermarket website I’ve seen have a family life section.

European –

 A European business is a business that is just in Europe and an example of this is ASDA Europe (WAL-Mart parent company) Asda started out as a group of Yorkshire farmers this was the beginning for ASDA in 1920’s. In the 1999 ASDA became more successful when the parent owner of the company bought in and made ASDA one of the biggest and most successful in the European area.

Asda don’t just sell groceries and general food shopping that you will need they also sell clothes, summer accessories, electrical appliances, DVDs, pretty much anything you will need you will probably find in an ASDA store near you.

International –  

An international business is a business that is worldwide and is a well known business and an example of this is apple. Apple was founded on April the 1^st in 1976; Apple is a Public limited company.

The type of products Apple sell is the Mac computers and there is arrange of Mac’s, they also sell iPads, iPods, iPhones these are very popular products these days. Apples was mainly known to the people that worked for the company at first but now is extremely popular and well known anywhere in the world you go.

Public, Private, and not for profit –

Public –

Public businesses are owned by the government these types of businesses are the NHS, Fire services, and these are a limited liability company Public companies, including public limited companies, can be either unlisted or listed on a stock exchange depending on their size and local legislation.

Private - 

private businesses are owned by a non government organizations, or a small number of shareholders who don’t offer or trade the stock to the general public that are on the stock market and by this I mean that the company’s stock is then offered and then traded privately.

Not for profit –

A not for profit organization uses revenues to achieve its goals rather than distributing them as a profit or dividends. The revenues must be retained by the organization for expansion or plans for the company, most not for profit companies don’t pay staff they employ unpaid volunteers these people usually work with or without compensation.

What does primary, secondary and tertiary mean?

Primary is the extractive source for a business, secondary is the manufacturing section for a business and then tertiary means it’s giving the service for the customers and this means then the business can sell a product to make money.

Primary businesses –

Most local and National types of Primary businesses you will find are farms and mines; this is because you are extracting the product from the natural area. Bp is an example of this

Secondary businesses –

Most local and national types of Secondary businesses you will find are the factories and machinery this is because you are manufacturing the extracted product from the natural area. Bp is an example of this

Tertiary businesses - 

Most local and national types of Tertiary businesses you will find that they are shops, restaurants and this is because it’s a service and you are selling the manufactured product. . Bp is an example of this

Sole trader –

A sole trader is a business that is controlled by one person and they make all the decisions, but although they can have employee’s. Also the sole traders do not have a separate legal existence from the owner. “This is known as being ‘self-employed’. You can keep all your business’ profits after you’ve paid tax on them.”

Advantages –

Advantages of a sole trader is quick and easy to set up and the business can always be transferred to a limited company once launched and its simple to run and the owner has complete control over the decision making and there is a minimal paper work involved.

Disadvantages –

The disadvantages of a sole trader are a full personal liability it’s also harder to raise finance and also they have limited funds of their own and security against which to raise loans. And also the business may suffer and if the owner becomes ill and loses interest and pay more tax than a company.

Partnership -

Partnerships are businesses that are owned by two or more people and a contract is called a deed of partnership is normally drawn up, and this is the type of partnership it is and how much money each party is contributed and how profit losses will be shared. “A partnership is an arrangement where parties agree to cooperate to advance their mutual interests.”

Advantages –

Advantages of this are that more people that will know about the business and if the business gets in to difficulty then there are more people to share the debt, and the partner may bring money and the resources to the business. And also the partner of your company may bring in different skills and ideas to the business. 

Disadvantages -

The disadvantages of this are that you will have to share the profits and you will have less control of the business for the individual it also disputes the workload and the problems and if the partner disagrees over the direction of the business

PLC –

A public limited company is a limited (liability) this is whose shares are freely sold and traded to the public and with a minimum share of money and the letters PLC after its name. “Whose shares are freely sold and traded to the public, with a minimum share capital of £50,000 and the letters PLC after its name.”

Advantages –

The main advantages of being a public limited company is that you have better access to money, by raising the share money from the existing and new investors and also the liquidity is where the shareholders are able to buy and sell their shares and the value of shares are showing the value of the firm and is shown by the market capitalization 

Disadvantages –

The disadvantages are that once listed on a stock exchange and the company is likely to have a much larger number of external shareholders to the company directors and will be accountable. And also the financial markets will govern the value of the company through the trading of the company’s shares and this will show the performance for the company over time.

LTD –

A limited company is a company in which the liability of members or subscribers of the companies is limited to what they have invested or guaranteed to this company; also limited companies can be limited by shares. “A limited company limited by shares, may be further divided into public companies and private companies.”

Advantages –

The advantages of a limited company are that the company has a legal existence which is then separate from management and the shareholders; also limited liability is perhaps the most important advantage, and the member’s liability is for the amount unpaid on their shares. The choice of company names is restricted and providing a chosen name with the rules and no one else can use it.

Disadvantages –

The disadvantages of being a limited company is that they have greater admin costs and also the public disclosure of the company information and this is about the annual reports and annual return and the directors legal duties.

Franchise –

It’s a type of business that sells the rights of another business to operate the franchise; this also means that the owner of the franchise might want to let others run the business in other parts of the country.

A franchise is bought by the franchise company and once they have purchased the franchise they will have to pay a proportion of their profits to the franchiser on a regular basis. “The franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain.”

Advantages –

The larger companies see this has a means of rapid expansion with the franchise providing the most finance and the franchise are large profits by selling franchises, royalty payments and selling the raw materials and equipment. The franchise is a way to benefit from national advertising and being a part of a well known organization with the established name, and the less investment is required at the start up stage since the franchise business idea had already been developed.

Disadvantages –

The disadvantages are the costs to buy a franchise has it can be very expensive, and you have to pay a percentage of your revenue to the business and you have brought the franchiser from and you will have to follow the franchise model and so it’s less flexible and you would probably be told what prices to set, and what type of advertising to use and what type of staff to employ.

	Prince’s Trust	Asda	Small Business - ladybirds
Purpose	The purpose is to get young people get their life back on track, they give them the most key skills back and these are confidence and motivation which then can enable young people to move into work, education or training.	The purpose of ASDA is to sell products to customers as it’s a supermarket, and they sell food, clothing, general merchandise, toys	To look after children aged 0-5 years
Ownership	The ownership of the Prince’s trust is one of the Prince’s charities which the Prince of Wales is president to 17 out of the 19 charities in this group got founded personally by the Prince himself.	The ownership of ASDA is Wal-Mart. PLC (public limited company)	Ownership is by a woman that cares about young children
Size	The Prince’s charities are the ones that form the largest multi cause charitable company in the United Kingdom which they raise over £100m annually.  Also the Prince’s Trust could not achieve the results without the work and support of the Prince’s trust volunteers and of which it has approximately 7,000 across the 9 regions and the 3 countries of the UK.	There are 565 locations for ASDA which means they have loads of stores across the UK.	The size of the nursery is only quite small but has time goes on it will grow and become bigger and successful.
Scale	The scale for the Prince’s trust is based all over the United Kingdom, and goes through the 9 regions, this makes them a popular charity that works with young children but they are a small charity as well.	There are 175,000 employees that ASDA has which shows it’s a big business.	They have 13 employee’s, that all have different roles
Sector	Tertiary	Tertiary	Tertiary

Limitations of business -

The limitations that are affecting some businesses are that money is dropping because there is a recession but that is not the only thing that’s affecting some businesses the profits levels drop and also with the rise of competitors, and also the location of the business.

The government have been spending cuts and they grants for new businesses and also they have funding for charities.

I am going to be comparing these two companies which are ASDA and Ladybirds, this is where I will talk about the type of business they are and the purpose as well as the ownership.

M1 – analyses the type of business, pupose and ownership of two contrasting businesses

A description of two contrasting businesses –

ASDA – PLC -

The type of ownership that  ASDA is a Public Limited Company; this means that they are protected legally and they float the company in the stock market, and with ASDA being a Public Limited Company it means they are a big company but people can buy shares into the company.

The main purpose at ASDA is to sell things and serve them to the UK customers; they also sell a range of different products that are IT products, food, and clothing. They are also trying to get more people to do their shopping from home by using the online shopping system. This shows us the different types of products that ASDA sell.

These are all for good purpose as they don’t just have one store in one location they have their stores up and down the country, it’s great to see that they sell a range of products so the customers can buy all these things in one place rather than all over the place. 

It’s also great to see that ASDA are trying to get more people to use the home shopping online, this is good because it will be easier for them single mums that don’t drive to go shopping and wait for it to arrive. Instead of going into a busy supermarket trying to shop, because they will also need to find a way to get there shopping home, this is showing you that you can sign in and order your shopping online and can get it delivered to your door.

At the moment ASDA is using a new advertisement which it’s called the price lock, this is showing you that they try to keep their prices as low as possible and stick to one price throughout the year. This is also good for ASDA’s purpose as its showing us as customers that they are the cheapest supermarkets in the UK.

ASDA also try to raise a lot for charity whether it’s a big national charity down to being a little fundraiser for the community. This also tells me that ASDA will have a great customer service, as they don’t just help massive charities in the UK they are willing to help people in the community.

I have been on ASDA’s website and this is their mission statement ‘"At ASDA, we value the trust placed in us by customers, suppliers and colleagues who give us their personal data. Data security is one of our highest priorities and we aim to be as clear as possible about what we do with personal data and why we do it."’

Ladybirds – LTD –

Ladybirds is a private  limited company this also means that they are protected legally, with Ladybirds being  an Limited Company this means that only the people that are involved it this will have the shares to the company.

The purpose of Ladybirds is to provide a service to parents that need daycare for their children so they can go off to work, they don’t just offer a great service to they parents they also offer a great service to children, the children they offer great care for is 0-5’s.

They also offer to educate all of the age groups and also they have great nutrient food recipes, they also have great indoor and outdoor facilities.

Ladybirds also have a mission statement and this is what it is ‘'Our aim is to exceed all standards in care & education for young children through a highly qualified & caring team, in a well equipped environment allowing children to mix & learn together & independently grow in confidence each day.   Here children are prepared to take on their next challenge.'’

You can find these mission statements on their websites it’s important that a company has a mission statement because this helps the company know what they are working towards this it’s practically like a target.

Comparison to ASDA and Ladybirds

The two businesses I am going to be comparing are ASDA and Ladybirds and the different types of ownership these businesses have.

The differences between the ownerships of ASDA AND Ladybirds are:

 ASDA is a Public Limited Company this means that they are protected legally and they float the company in the stock market. Ladybirds is a Private Limited Company, this also means that they are protected legally.

Also the difference is that with ASDA being a Public Limited Company it means they are a big company but people can buy shares into the company.

Also with Ladybirds being a Limited Company this means that only the people that are involved it this will have the shares to the company and only them.

Differences –

 The difference about ASDA is that it’s a company that helps people across the country, and gives them a place to shop, and provides everything they need. Also ASDA is the type of business that’s their to sell you food, clothing, general merchandise, toys.

Also the difference about Ladybirds is that it’s a company that’s there to help parents in the local area to where this company is based, the company is not also there to just help the parents they help the children too, by giving the children chance to have fun and give them confidence and let them learn new things. Also Ladybirds is a type of company that’s their to give you a service.

Similarities –

The only thing that is similar about the two is that they both want to make a profit, and bring in new custom. This is important because making profit is the only thing keeping these businesses going, also if they don’t make a new profit then ASDA cannot sell the products and Ladybirds won’t be able to buy new things for the children to use.  Also another similarity is that they are both limited but ones a PLC and the other is a LTD, they both can have shares but for the PLC the public can buy shares into the company.

P2 – describe the different stakeholders who influence the purpose of contrasting businesses

Stakeholders –

Stakeholders is where a person or a group that either has an interest of concern in an organization, also they can have an affect or can affect on the actions an organization and the objectives and policies put in place.

Trade Unions -

Trade Unions are a membership group that looks after the interests of the employees so in some cases it may lead to strike action if the Union decide to disagree with the company.  Asda don’t have Union membership anymore and neither do Ladybirds usually just public owned businesses like schools / fire brigade

Owners –

The owners are there to make sure that the business expands and to make sure it makes a healthy profit every year after the sales, also the owners will be willing to take risks that will involve the business and will get a reward when the risks will pay off. And the owners are responsible for the business and they will make sure that the company is set up and running well financially.

The owners have the main impact on ASDA but if there is more than one and then the disagreements are discovered, then ASDA cannot bring in new ideas and expand the business and also they then may want different things to happen for the business.

Customers –

The customers are the very important part of the company as they are expected to purchase products from the business, and also they should by products from the company because they will give the business the profit to carry on running well and successfully, but without the customers the business wouldn’t be able to stay open and make money.

The customers have a major impact on ASDA because if they are not completely satisfied with the business, then they could dislike the product they have brought then they can bring it back for a refund, but that may be unhappy with the customer service that they have received from the staff then this could cause complaints, this may lose custom. This also means that if this happens then ASDA may lose profit and sales may drop.

Financiers –

Financiers should invest an amount into the business for it to start up and run before it makes a big profit from sales, but also then when the business starts to get profit money than they should pay it back to the financiers with interest on the investment, so they are also making a profit from the business.

The financiers are every important to a company as they are able to make the business and start up with a good amount of money, and they can pay back with interest in the future,  although the financiers can have the chance to increase the interest on the financial loans.

Employees –

The employees are employed to expand and develop their career and then they are also there to get promotions for the good and hard work and also they should be working in a calm and orderly manner whilst respecting every other member of staff as well as the customers.

Also the employees are the ones that make it successful as well has the customers and they can also have a negative impact on the company and this is because the company can employ the wrong type of people  and give the wrong standard of employment that’s needed for this job.  

Also if ASDA’s employees show a bad reputation for the business this may have an impact and it could be that ASDA’s shelves are not well presented and customers may then not shop there meaning they will lose sales and profit.

Suppliers –

The suppliers should be given the orders to supply the company with the correct things that they will need and, also they should be trusted with getting the supplies to the company on time and undamaged with the correct order that they asked for.

The suppliers are extremely important for the company because they deliver the products that the company will want to sell to make money. But if the suppliers don’t bring the products to the company it means that they cannot make a profit.

An impact that may happen to ASDA if the stakeholders give up and leave then ASDA are probably going to lose suppliers.

Local community -

The local community should then help the employment or the people in the area so that they then can have money to spend locally, as well has the local services and it will the benefit the community as a whole.

The local community is still important as they will provide the financial to help the communities through the sales in that particular area.  Also an impact may be that ASDA can or will get a bad reputation.

Government –

The government is important to the company because they will need to make sure that they are legally and successfully running, this is also important as the company will oversee the work that gets done.

Also an impact may be that ASDA will have to pay staff to make changes in stores / plus increase in tax may mean that customers don’t buy as much and sales could go down.

Stakeholders - CAFE

Trade Unions -

Trade Unions are a membership group that looks after the interests of the employees so in some cases it may lead to strike action if the Union decide to disagree with the company.  A cafe don’t have Union membership usually just public owned businesses like schools / fire brigade

If a stakeholder gives up or wants to leave a businesses like a café this means that it will have an impact on the owners I know this because for the café there could be more than one stakeholder this then means the disagreements are discovered, then the Café cannot bring in new ideas and expand the business and also they then may want different things to happen for the business.

The customers have a major impact on the Cafe because if they are not completely satisfied with the business, and that may be that they are unhappy with the customer service that they have received from the staff then this could cause complaints, this may lose custom. This also means that if this happens then Café may lose profit and sales may drop.

Also if the Café is not are not well presented and customers may then not shop there meaning they will lose sales and profit. Also the suppliers are extremely important for the Café because they deliver the products that the company will want to sell to make money. But if the suppliers don’t bring the products to the company it means that they cannot make a profit.

An impact that may happen to Cafe if the stakeholders give up and leave then Cafe are probably going to lose suppliers.

The local community is still important as they will provide the financial to help the communities through the sales in that particular area.  Also an impact may be that  the café can or will get a bad reputation.

Also an impact may be that Café will have to pay staff to make changes in stores / plus increase in tax may mean that customers don’t buy as much and sales could go down.