The type of business, purpose, and ownership Essay Sample
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Introduction of TOPIC
Sainsbury’s is the UK’s third largest chain of supermarkets, it’s also the longest standing major food retailing chain, which was founded by John James Sainsbury’s in 1869 as a partnership with his wife Mary Ann. The holding company J Sainsbury’s PLC, is split into three divisions which are: Sainsbury’s Supermarket Ltd, Sainsbury’s Local and Sainsbury’s Bank. The Sainsbury’s Supermarket is built upon a heritage which provides their customers with a healthy, safe, fresh and tasty food. It differientiates itself by offering a broad range of great quality products at fair prices with particular emphasis on fresh food, a strong ethical approach to business and continuous leadership and innovation. Sainsbury’s Plc consists of a chain of 592 supermarkets and 611 convenience stores.
A large Saubsbury’s store offers around 30,000 products and an increasing number of stores also offer complementary non-food products and services. Sainsbury’s employs around 161,000 people. Sainsbury’s is currently in the Secondary Sector. This is because the organisation provides services (Sainsbury’s Bank), sell food but also have their own farm. The service at Sainsbury’s will deliver an continuously-improving quality shopping experience for their customers with amazing products at affordable prices. Their aims are to exceed customers expectations for healthy, safe, fresh and tasteable food, making their lives easier everyday. The type of ownership is Sainsbury’s are a Public Limited Company (PLC). Public Limited Company is usually a large, well-known business, shares trade on the stock exchange.
Oxfam is an international charity which is focused on fighting poverty but also empowering poorer individuals around the world. Oxfam has 13 partner organisations, working with 100 countries worlwide to provide donations to legal public support. Oxfam is a highly rated charity within rating organisations but also is well respected in the Internation Aid community. Oxfam started in the UK in the early 1940’s as the Oxford Community for Famine Relief, this was later shortned to Oxfam. This was established by the Quakers and other social justice advocates who were concerned by the starvation which was happening in Greece. It later evolved to enclose all poverty issues in general. The first international Oxfam office opened in Canada, this was in the 1960’s. It was eventually joined with an office in the USA, France, Australia, Spain, Neitherlands, Germany, Hong Kong and Quebec.
These countries together formed the 13 partner organisations which created Oxfam Internatio in 1995. Oxfam is a tertiary (secondary) sector because the charity provides services to people which are in need of survival but also need epowering due to their imporivishing. As I explained before, Oxfam’s main purpose is fighting poverty but also empowering poorer individuals around the world. The type of ownership Oxfam fits into is charitable trust, this is because the charity is set up to raise funds but also supports poorer individuals around the world. P2: Describe the different stakeholders who influence the purpose of two contrasting businesses. In this task, I will be describing the different stakeholders who have an influence on the purpose of my chosen organisations. The key stakeholders for Sainsbury’s are:
Customers: Customers are also known as buyer, client or purchaser of a good/ product. They want a companies to produce high quality, value for money products. They always want to see improvements that can give better value to their money. Customers like seeing promotions and other sort of offers that give their money better value. Certain customers like seeing products which are friendly to the environment. Customers can influence Sainsbury’s by deciding either or not to continue purchasing goods and services from Sainsbury’s. Customers could decide to start purchasing products from a different store and therefore this could affect the company’s profits. Employees: Their stake is that the company provides them a livelihood. They seek security of employment, promotions opportunities, and good rates of rewards. Employees rely on their job for pay. Employees can work as part-time, full-time, temporary or permanant, this however depends on their commitments. Certain employees work for money, others work for voluntarily.
They also want to want to work for an oragnisation which makes them feel proud. Employees influence Sainsbury’s by being main human resources to run the business successfully. Employees are interested in good sales within the business to customers, this leads to rewards, promotions but also bonus’. Staff at Sainsbury’s must offer good service towards the clients, this will please them and therefore they’re most likely to come back. Sainsbury’s employs 161,000 individuals across the UK. Without employees, Sainsbury’s would not be able operate and offer customer service to the public therefore the business would fail without their participation. Suppliers: They want steady orders but also are looking for prompt payments. They also want to feel appreciated and valued by the company they’re supplying. Suppliers can be primary or secondary or from the tertiary sector. Suppliers hould have a good relationship with the business, so they can continue ordering and making more sales to them, this could lead to a good word which means their business will expand. Suppliers should be reliable.
Flexibility is also a important trait to meet the requirments for example a one off goods or service. Suppliers are interested in supplying for Sainsbury’s stores, this is due to the business received from them aswell as the profits. Sainsbury’s suppliers are fairly close to them, therefore if they wanted ‘next day delivery’, they would be able to make it. They influence Sainsbury’s because if the suppliers go out of business then then company will be forced to go find new suppliers however their service standards may not fully satisfying as the previous suppliers. Owners: These are the individuals who have spent the most time in investing into the business setting up, maintaining but also making sure it grows. Owners are interested in long term return investments therefore they invest as much they want into the business. They have an influence on Sainsbury’s because owners have the responsibilty to make decisions as they desire concerning the development, impovement of their business. The key stakeholders for Oxfam are:
Donators (Suppliers): Donators are the most important stakeholders to the charity Oxfam, if it weren’t for these individuals, the charity wouldn’t be successful. The donations are the key to the money being raised. Donators are the largest investors to charities such as Oxfam and have an amazing impact on the charity. Without this support, goods would not be sold, vacancies would be limited and therefore the business would die. Employees: Employees can ifluence the charity enormously because they are another reason to why the charity is successful. They provide great service to the customer who decide to purchase at Oxfam. Employees often work for free, this allows the charity to spend more funds on improving third world countries, this is another word for an impressive influence. Governments: The gove
rnement wants the organisation to be successful. It wants to see businesses doing well but also take
The government is therefore going to want to expand but also raise money to show support to Oxfam. The government influences Oxfam by donating to the charity. The government would also pass laws to affect the charity amazingly! Local/National Communities: Certain actions taken by businesses can have a dramatic effect on communities. Community leaders represent important interest groups. The community are often interested by Oxfam’s work because individuals are either interested in buying good in a Oxfam store or help raising money. The community helps the charity by offering its support to help with und raising. Without these individuals, the charity Oxfam would not be able to keep stores open and raise finance because custom will not be involved.
M1: Explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organisations. The stakeholders of Sainsbury’s: Customers: Customers are a very important stakehlders of Sainsbury’s because the aims involves them. The company wants to offer an ever-improving quality shopping experience to their customers. If customers are not satisfied with the quality of the products or services offered by Sainsbury’s, it is they’re full responsibility to fix their issues. Sainsbury’s have an aim to provide ‘great products at fair prices’, this is an ethical ability from Sainsbury’s to offer their customers with products priced fairly, therefore if a customers decides to stop buying products at Sainsbury’s, this would mean they are either unpleased with the quality or the price of the products. Their main aim is to please and satisfy all customers therefore if the company ignores the customers’ concerns, they find themselves losing sales to rivals. Employee: Employees at Sainsbury’s want to earn wages but also keep their jobs.
Employees are more of a internal stakeholder therefore their stake is that the company provides them a livelihood. Employees seek security in their jobs, promotion opportunities and good rates of rewards. They’re main objectives are most likely to improve their working conditions but also raise their wages. Owners: Sainsbury’s owners are the individuals who have invested the money which was needed in setting up, maintaining but also allowing the business to grow. The owner has a big say on how the aims of the business are determined. The owner has a great influence on the deicisions makings. The stakeholders of the charity Oxfam:
Donators: The donor’s interest with Oxfam would be that they want to help the charity improve the thirds world countries. The donors have a massive infuence on the charity Oxfam as they provide the donations for the charity to improve lives of others around the world. If Oxfam didn’t receive donations, the business would die out because they won’t have no customs. Employees: Employees and volunteers are the people who are helping the charity become a sucess. They provide the great service to the customers who decide to come purchase at Oxfam. They would both be concerned for the success of the business as the employees would want to be getting paid aswell as volunteers wanting to gain experience in customer service. Communities: National/ Local Communities have a great influence on the success of the charity because they provide jobs for the local people but also they may feel the need to donate unwanted items to the charity, their donations may be an influence to the charity because they might need the local community to donate items or simply voulunteering to help the charity out. If the community doesn’t help with the charity, this could be due to a negative reputation.
If they aren’t able to get donations but also volunteers to help Oxfam raise funds and make their charity a success, this means that they wouldn’t be meeting the purpose of helping people in the third world countries. Government: The government has a vast influence on Oxfam as they are mainly funded by the governement. Eventhough, Oxfam relies on the community/donators to make donations aswell as volunteering to the charity, the governement also invests money into them so they are able to run and function well. Government would expect the charity to help those in need within the local community by providing jobs or even donating items to those in serious need. Without the government, the charity wouldn’t be able to run as the government are the key investment to the charity Oxfam.
D1: Evaluate the influence different stakeholders exert in one organisation. Every organisation has stakeholders: these are the individuals, groups or organisations that affect or are affected by the business. The term ‘stakeholder’ was first used in the late 1960’s. A stakeholder has a deep interest in the finncial activities of a business, this can include profits, ownershipm etc. The number of stakeholders a business holds depends on the important and influence of the business. Stakeholders can be internal or external to a business: Internal stakeholders- individuals, groups within the organisation. eg. owners, employees, investors. Employees want to earn high wages and keep their jobs.
Owners are interested in maximising their business’ profits. Investors are concerned bout earning income from their investment. External stakeholders- individuals, groups outside the organisation. eg. communities, customers. Customers want the business to produce quality products at fair prices. The community has a stake in the business as employers of local people.
A company such as Sainsbury’s has much more stakeholders than a family business, it’s therefore more influenced and affected actions, aims and objectives taken by its stakeholders. In this task, I will be evaluating the influences different stakeholders exert in my chosen company which is Sainsbury’s. Customers are the first group of stakeholders, I will be evaluating in this task. Customers are external stakeholders. Customers contribute to a business through buying products and services, therefore contribute to profit levels. Stakeholders who affect or are being affected financially by a business. Customers are not willing to spend an excessive amount of funds to purchase a product this can influence their decision in deciding weither to continue to purchase goods and service from the organisation, for that reason if a company sells a product at a fair price such as Sainsbury’s, this will defintely attract customers. Sainsbury’s survives through the customer’s loyalty (regular customers), promotions ‘buy two for the price of three’, discounts and other offers. Sainsbury’s have been getting regular customers which means more profit, this is a great opportunity for the expansion of the retail to grow.
Customers demand cheaper products therefore local stores such as Sainsbury’s must try have to the cheapest prices so that customers arre drawn to their stores. This, therefore encourages copetition between the stores, whichever stores have the cheapest. Employees are the second group of stakeholders, I will be evaluating in this task. Employees can influence the success of an organisation, they are also very crucial individuals for the running of the company. Sainsbury’s employs around 161, 000 people around the UK. An employee is a individual which is hired to complete a specific task within the organisation, Employees are internal stakeholders. Employees are important stakeholders to a business because they have the first contact with the public (consummers) therefore if a customer has an equiry concerning the organisation or a product being sold within the organisation, employees are the ones which will help customers. Employees will also help recommend products to customers.
The quality of an employee depends on the way human resources are maintained within the organisation. An employee’s most interest are salaries, wages and job satisfaction. When employing new staff but also when managing old staff, managers must consider multiple elements. Employees can influence Sainsbury’s influence in many ways but also because different reasons, which include: skills and qualifications, personal views and opinions, employees performances, training and dimissal. Employees are seen as important stakeholders for Sainsbury’s, they’re considered as human resources of the company therefore their performance can highly influence Sainsbury’s. If the employees are not satisfied with their salary, wages or even their working environment, their customer service will not be a satisfactory standard.
Motivation is one method to motivate employees in improving their performance twoards the public, eg. the shop floor could be untidy, shelves un-stocked, short amount of staff at the tills. An employees skills and qualification is a crucial characteristic because if an employees doesn’t have the right of skills or comprehesion to perform a certain task, their performance standards are going to be low therefore their service to customers won’t be at high standards, this could affect the business’ profit. Sainsbury’s needs to emply more people in busy times such as Christmas, Easter, Haloween etc. because these are the times the number of customers rises greatly due to Christmas sales and this therefore attracts people to shop in Sainsbury’s due to special offers and deals. If employees are unavailable, the productivity and sales will fall, this is will therefore lead to profits dropping. Sainsbury’s employee more people which are young of age, eg. 16-21 because they’re considered cheap workers, this means Sainsbury’s would pay them minimum wage, this would mean more benefits would be granted onto older workers.
Owners are the individuals which control the business day to day, they have the most interest in the business and constitently want the business to succeed. They are also the ones who make the rules and regulations of the business. The owner of Sainsbury’s is considered the most important stakeholder because they’re the individuals which have spent the most time setting up, maintaining but also making the business grow. The owner makes sure the business succeeds but also makes sure the profits are constitently raising. Sainsbury’s is a public limited company therefore the owners are shareholders. Sainsbury’s has managers for different departments within the business. Sainsbury’s owners main interest is to share prices to go up but also to increase profits yearly, they also want to be informed on how well the business is doing so they can hold a positive reputation. They influence the business Sainsbury’s owners are interested in a long term return when it comes to their investments therefore they can invest as much as they want, they also have the power to make any decisions they desire concerning their aims and objectives of the business.