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Contrasting Two Business Organisations Essay Sample

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Contrasting Two Business Organisations Essay Sample

Contrast the ownership and purposes of two of the businesses used in P1. The two businesses chosen must have different ownership and purposes.

HSBC and my local newsagent are businesses with two different types of ownership and purposes. HSBC is a bank which is opened to all the public, all the public are entitled to use these premises only if they have a valid bank account. This is called being a public limited company. HSBC’s purposes are to help people manage their money as well as insurance for e.g. cars, their homes, business, to increase profits.

The newsagent is a LTD which makes profit using its customers and gaining customers through cheap product prices. HSBC is surviving the recession because it’s a global bank and from this it has an advantage to how many customers actually use the bank. Bigger companies normally have the chance to survive in a recession because of the popularity and so small business businesses like a newsagent sole trader has less likely the chances of survival because it wouldn’t be well known and makes little profit on what it sells.

On the other hand, HSBC makes its profit using their credit cards which they hand out to people using some kind of rates at which the customers need to pay back after they have used the card to buy something. The similarity that both have are in most circumstances they deal with their customers face to face.

The differences are that a newsagent would have one way of dealing with their customers and that is face to face, elsewhere, HSBC would have many different ways of dealing with their customers e.g. face to face, on the phone, via email etc… HSBC has 8,000 employees due to being a global business and having many branches whereas the newsagent has only 7-8 employees as they only run the one shop. HSBC has 210000 shareholders so if one decides to sell out there will be a discussion to if it’s possible and to if they should sell out, however, a newsagent has only the one shareholder so the person would still have to ask their family and relatives if he or she should sell the shop. HSBC has a wider distribution in the amount of services they sell to the public including the amount of people who have accounts with the bank. But the newsagent doesn’t have much of a distribution as they are a very small business.

Similarities: Both deal in there customers face to face. They are both open for the public to come in and out.

Mission statement: HSBC has a big regard when it comes to ethnical values, they would like to deal with their customers financial needs in the top way they can and which is suitable, they would like to work in an orderly manner, would like to achieve the best that they can, human resource with superior qualities. They would like to have communication with their customers online as well as on the phone or face to face, last of all they would like services package where they can offer their customers the best deal which is possible. This tells me that HSBC wants to the best for its customers in whatever area they want e.g. make an account, register for online banking, savers account, loans, business accounts, investments etc.

The difference in HSBC’s ownership with my local newsagent is that the bank is a PLC which means it’s a public limited company where anyone over the age of 16 is allowed to join and make a teenagers bank account which is a and as they get older and reach 18 it will change into a normal account. Whereas, my newsagent is a LTD which means it’s owned by family and friends who can be the shareholders.

A PLC trade there shares on stock exchange so anyone can the part of it. They can raise finance if they need as it is easy by store issue. LTD still financed by shares but with family and friends, therefore, problems can occur if one them wants to withdraw their investment. This can cause families to break-up.

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