An Analysis of Boots

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Recommended: Importance of communication IN THE ORGANIZATION

An Analysis of Boots

Introduction

The business I have chosen is Boots due to my interest in health and

beauty products. Boots is a multi-national company. It has branches

all over the world including Thailand and Japan. Boots was established

by John and Mary Boots. The first ever Boots store opened in 1849 in

Nottingham selling herbal remedies for poor city people. One hundred

and fifty four years later Boots now owns 700 retail units which have

a value of £740 million and a gross income of about £900 million.

The Boots organisation is a public limited company (PLC); Boots is a

company run by a set of directors and a chairman for investing

shareholders. Boots has its shares bought and sold at the Stock

Exchange. By this it is open to anyone who trades in this market. When

dealing with shares the organisation can issue different types of

shares called preference and debenture shares. These shares have a

higher status than ordinary shares.

Advantages of being a PLC

The organisation can become multinational or conglomerates. A good

example of this is Boots as they have been bought by BASF a German

owned company and due to this they have opened Boots stores in many

other countries. Also the organisation can expand to third world

countries which Boots has also done. By doing this Boots can use raw

materials and nationalise even further. Public limited companies have

advantages that they can expand their organisations into different

businesses and conglomerates. This protects the firm from dealing in

one market.

Ø The organisation can be on the stock exchange and this enables them

to offer shares for sale publicly. Due to this PLC's can acquire ready

capital for further development if they ar...

... middle of paper ...

...communication will be better because it is

multidirectional unlike M.I.R stationers. The benefits of a flat

structure are that the employees feel valued and are treated quite

fairly, their ideas and opinions are also took in consideration. The

hierarchical structure is quite complex and different to a flat

structure; there are levels of importance and authority from the very

beginning. This makes it difficult for staff to communicate to each

other. And when communication is poor in any organisation, this has

bad effects on the businesses aims and objectives.

P6 list appropriately the sources of evidence you used in your

research

The sources of information I used for my research are: -

Boots annual report

Hodder GNVQ Business Intermediate

GNVQ business

Heinmann intermediate Business

www.boots-plc.co.uk

A leaflet called All about Boots

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