Proposal for Changing Aspects of Two Businesses

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Proposal for Changing Aspects of Two Businesses

Now I have looked at and explained the individual areas of Land Rover

and Tesco and also compared the two and stated the main differences

and similarities, I am going to suggest and justify changes that could

be made in each area of the two companies to change it for the better.

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OWNERSHIP

Tesco could form a partnership if the owner decides to team up with 2

or more people to increase the input of ideas into Tesco.

A partnership is when two to twenty people join together to run a

business. Each member has an equal share and say in the business,

solicitors and accountants are the most often to be seen as a

partnership. Brothers paring up is common.

The advantages and disadvantages of a partnership are as follows:

ADVANTAGES

* Having partners can be less stressful than being a sole trader.

Partners are available to cover for holidays and during periods of

illness.

* Partnerships normally find it easier to raise capital than sole

traders do. There are more owners to invest money, and banks may be

more willing to lend to partners. Some partnerships have sleeping

partners, who invest money but take no part in the management of the

business.

* It can be comforting for partners not to have sole responsibility

for a business, especially when major decisions have to be made.

* Partnerships are less likely to suffer from a lack of specialist

skills than a sole trader.

DISADVANTAGES

* Most partnerships have a really big unlimited liability as with sole

traders, if the business fails, the partners' personal possessions may

be sold to settle its debt.

* Partners often disagree. Discussions may be helpful when new ideas

are being considered, but disputes can be disruptive and lead to the

break-up of the business. Some people enjoy having complete control

over a business and find it difficult to work with partners.

* Many partnerships still find it difficult to raise the capital they

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