Investigating Two Types of Businesses
In this report in am going to investigate The Body Shop and Interlink
which are two different types ownership PLC (Public limited company)
and a Sole Trader.
[IMAGE]Task 1a)
Information about each of the companies
THE BODY SHOP plc ©2003
The Body Shop rapidly evolved from one small shop in Brighton on the
south coast of England, with only around 25 hand-mixed products on
sale, to a worldwide network of shops. Franchising allowed for rapid
growth and international expansion as hundreds of entrepreneurs
worldwide bought into Anita's vision.
INTERLINK®
[IMAGE]Interlink was opened in Vallance Road E1 by my uncle M.K Azad
he started with two computer and one phone box and a couple of phones
card the company grew larger and larger over the years until there was
20 computer and 15 phone boxes.
[IMAGE]
The body shop is a PLC but is does franchise which basically means way
of owning a business but not taking the normal risk of buying
expensive goods. I think the main the benefit of being a franchise is
that if the body shop is successful as in getting more money the
shares will increase in value, which will increase the overall value
of the company so this mean that is the company get more money the
body should could invest or it could open more franchise but I think
it would be more better if they open more franchise it would give a
name to the company. Also the body shop can often operate more cheaply
than a Sole trader as the operate on "Economies of sale" because if
the body shop buy 100 Bags they would but it in bigger quantity which
means the bigger the buy the cheaper it get, whereas a sole trader the
price will increase because they are buying a small amount than the
body shop.
But the body shop has some disadvantage for because of unwanted taker
over people from outside of the company can buy shares in the company
Bass Pro shop started as an 8-foot-long display area in the back of a liquor store in 1971 and has expanded into a Fortune 500 company that employs over 8,800 employees and has annual sales estimating somewhere around $1.25 billion today. The question at hand is: should Bass Pro Shops continue to expand, and if so at what rate should they? The primary problems they might face when expanding are as follows. Could expansion hurt their brand image and if so how? The Competition outside of Missouri is going to be much greater. They will not have the publicity and brand recognition as they do in Missouri. Does Bass Pro have the financial resources in order to open new stores, if not then what are some options they can exercise? Will Negative publicity threaten their brand image as they continue to grow? Is the cost of overhead going to be too high initially for Bass Pro to expand at a fast rate, if so then at what rate should they expand yearly? These are all problems Bass Pro is going to have to face in the future. Through research and extensive problem solving, they will be able to make an accurate decision on rather they should expand.
This essay will focus on two companies Tesco and Chester Zoo. I am writing an essay to identify and describe these two companies. I will look at their ownership and explain how the businesses are organized to achieve their purposes. I will also compare both of them to find out the differences between these two companies.
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Task One E1 They type of businesses 1. Private and Public enterprise 2. Limited Liability 3. Franchising I will define each type of business with some advantages and disadvantages. For The Coca-Cola Company ... ...
The acquisition of Elgee Drugstores which was operating a chain of five stores by Superdrug in 1972 created a rapid growth expansion of the chain up to 40 stores around early 1970s. In 1973, a computerized system for stock control came into use. Over the next decade, the chain expansion reached as many as 143 outlets with the opening of the first store in Wrexham, Wales in 1980 as well as the opening of the current head office complex in Croydon took place. Also with the record sales following on, the continuing success of the Goldstein brothers’ business methods gave rise to the extension of head office and expansion of stores and the increasing profits arising out of own-label brands. Moreover, semi-automated distribution centre was completed ...
Like many others who start out, BP Plc. was a small company struggling to succeed after experiencing almost two bankruptcies. B...
Q2 what is intrapreneurship? How can a business organisation incentivise it and benefit from it?
Business to business or B to B (B2B) different from business to consumer (B2C) in many ways:
We will only be examining the functions of management where the basics of planning, organizing, leading, and controlling apply to The Body Shop. In 1976 an inexperienced Anita Roddick got tired of unsubstantiated Management and The Body Shop claims of the cosmetics industry that their products couldn't deliver. She decided to make a decision that would change her life forever. Anita became a manager of her own small business in Brighton England. Selling the natural secrets found throughout the world; learned from extensive travel while employed as a teacher with the U.N., she created a cottage industry of exotic personal body care products.
Sole tradership is when the business is fully owned and managed by one person, though others can be employed to help run the business. As the sole traders only financial income is from the business and/or bank loan, they do not have the resources to expand and cover regional or national areas. These types of businesses are located in the small business sector and usually cover local areas. Such businesses could be hairdressers, corner shops or market stalls etc. Sole traderships have unlimited liability so if the business fails to pay its debts the financial responsibility falls on the owner/s to pay the debts in full even if they have to sell their business, personal possessions and assets.
Manufacturing Franchise: These types of franchises provide an organization with the right to manufacture a product and sell it to the public, using the franchisor’s name and trademark. This type of franchise if found most often in the food and beverage industry. Most bottlers of soft drinks receive a franchise from a company and must use its ingredients to produce, bottle, and distribute the soft drinks.
Making the decision to open your own business is a major life event. Starting a new venture can be exciting as well as rewarding. The first step to becoming a business owner is choosing the type of business you would like to run. This business can be something that you have wanted to start up yourself or you can go with an established franchise. Are you willing to share the profits in exchange for the relative safety of a franchise or would you prefer the risk and rewards of pursuing your own vision? Franchising is a continuing relationship wherein a franchisor provides a licensed privilege to the franchisee to do business and offer assistance in organizing, training, merchandising, marketing and managing in return for a monetary consideration
There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).
A franchise is simply investing money in a location or store, and then having the store become your own business after learning how to manage the entire business. You earn the majority of the profits, and you also don't have to worry about operations. You'll be taught by the company on how it run the entire business, and this is the reason why this is a huge and very easy way to become rich. Franchises require quite a hefty investment depending on the business you plan to buy. However, if the business is in high demand, there is profits to be made. Take for exMple the Cold Stone Creamery business. Countless people purchase one of their many franchises. The money is very good, the opportunities are endless, and the fact that there is no more need for advertising is what makes this more worth the investment in the long
The definition of a sole proprietorship is essentially a business that is run by one person and owned by that person as well. Specifically, a sole proprietorship is separated from the other business entities because of the specific the legal dynamics between the business and the owner of the business. Moreover, because of this factor, sole proprietorships are usually easy to both form, maintain as well as dissolve if need be. In a New York Times article, the authors expressed that small businesses are typically sole proprietorships and as such, this is why it was selected as the business entity (1). Furthermore, the aforementioned reasons allowed for a rather rapid decision on the basis that with this entity, there is an ability of the owner to run it how they see fit.