Unit 1 P1 Research Paper

+- Unit 1 - Exploring Business Activity

Assignment: P1

How different can two business organisations be?

This research examines the two business organisations with a presence in the local area and discusses their very different purposes and ownerships. The two businesses are Tesco PLC and NHS.

Tesco PLC:

Tesco is an international public limited company headquartered in Chesham, Broxbourne Hertfordshire England. Hence, the company specialises in the retailing, multinational grocery and general merchandise retailer industry. Moreover, Tesco is the third largest retailer in the world measured by revenues, thus the second largest in profit (second after Wal-Mart.) Tesco proudly has 6,351 stores internationally and has roughly 520,035 employees

noted in 2012. Tesco was found in 1919 by Jack Cohen and was set up in order to provide to customers as a business and as a retailer. Ever since, the store has expanded a phenomenal performance has been seen by Tesco. Thus, as a retailer, it belongs to the tertiary sector. Its first purpose is to make a profit for its shareholders. One of Tesco plc’s purpose is to create value for customers. By meeting this purpose, Tesco plc can make profit and therefore pay their shareholders in return. They believe their success depends on their people and therefore state: the people who shop with us and the people who work with us.

Tesco hence wants their service to customers to be shaped by two important values, which are given on the company’s website: www.tesco.com.

• No one tries harder for their customers

• Treat people as you like to be treated.

Tesco PLC is a wholesaler and retailer and is therefore part of the tertiary sector as it provides a service. Tesco proudly has 6,351 stores internationally and has roughly 520,035 employees globally and nationally noted in 2012 and clearly at lease 15% more noted in 2014. Around 75% of group sales and profits come from the UK Business. Thus, NHS states that their main purpose as an organisation, locally Tesco’s activities will be: sustaining performance and earning a profit; delivering a service to their customers and carrying out sales. Moreover, as a national organisation and as an international organisation, Tesco will carry out the exact same activities but instead they will try to keep Tesco as a reparative company across the

globe.
Thus, Tesco is a Public Limited Company (PLC) which is a business that is owned by its shareholders, run by directors and, most importantly, whose liability is limited.

Limited Liability means that the investors can only loose money they have invested and no more. This is what encourages an individual to invest in the company. When shares in a plc are first offered for sale to the public, the company is given a “listing” on the London stock exchange. This means it has sold all or part of its business to outside investors. This generates additional funds for the business and can be an important form of fundraising. Tesco PLC is a wholesaler and retailer and is therefore part of the tertiary sector as it provides a service. Tesco is a supermarket that would receive the wholesale and retail trade service from the tertiary sector. This means that all wholesalers (Tesco) and retailers are entitled to receive this type of trade service from the tertiary sector. Tesco is also involved in the tertiary sector through receiving private services from the sector. Tesco hence purchases in the private service and they provide to Tesco as they are considered as a wholesaler or

retailer.

NHS:
NHS is a national business and therefore has a plc ownership. The four publicly funded healthcare systems in the countries of the United Kingdom may be referred to as the National Health Service (NHS).The systems are primarily funded through central taxation. They provide a comprehensive range of health services, the vast majority of which are free at the point of use for people legally resident in the United Kingdom. The four systems are entirely independent, and operate under different management, rules, and political authority. The individual systems are:
• National Health Service (England)
• Health and Social Care in Northern Ireland (HSCNI)
• NHS Scotland
• NHS Wales
All services are often referred to as "the NHS", although only the English NHS is officially called the "National Health Service". All of the services were founded in 1948, based on legislation passed in 1946, 1947 and 1948. NHS Wales was part of the same structure as England until powers over the NHS in Wales were transferred to the Secretary of State for Wales in 1969, and responsibility for NHS Wales was passed to the Welsh Government under devolution in 1999. Thus, NHS was setup in order to provide a medical service to the nation and provide them with a service. Alternatively, because the NHS provides a service, they are considered to be in the tertiary sector. Nonetheless, the main activities of the NHS being local include things like: providing a medical service, giving to their customers and treating customers. In contrast, the fact that the NHS is national means that the activities will most likely remain the same and the same activities will be carried out as a result. Furthermore, the NHS has not really got any liabilities as an organization, but their liability strongly lies with the government. Hence, the NHS states on their website: www.nhs.co.uk that their main purpose as an organization is “to provide a professional service to their customers.” Finally, because the NHS provides a service, they are referred to as a business that is in the tertiary sector. As a business, the NHS receives the local and national service from the tertiary sector as the size and scale of NHS is local and also national.
How different are two business organisations?

This research proves that the two business organisations with a presence in the local area vary in purpose and ownership and both differ and contrast from each other in a variety of ways. This is what I have investigated from this research.