I will be looking at two businesses that have different ways of making their money. These companies are Oxfam and Tesco. Here I will explain exactly what makes these two businesses so different. Core and Peripheral Activities
First we need to explore what the two businesses actually do in terms of how they make their money. We will start with Tesco; Tesco are an enormous business with their core activity being retail. However with the popularity of the brand name and their positive image they have been able to differentiate and branch out into different markets, some of these peripheral activities include: ‘Tesco Mobile (Tesco’s mobile network) and more recently Tesco Bank
They also have differentiated as they expand internationally.
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In September of 2013 it was reported by the BBC that Tesco ‘offloaded’ the Fresh and Easy name not long after it filing for bankruptcy: (http://www.bbc.co.uk/news/business-24040346)
Oxfam on the other hand is a charity organisation that helps to ‘end poverty’ they do this completely using funding from the general public and organisations that choose to affiliate with them. They get their money by people donating online or by mail and they also have a few National funded stores dotted around the country. (http://www.oxfam.org.uk/what-we-do/about-us)
“Oxfam is a movement of millions of people, all working towards one goal - an end to poverty for everyone.” (http://www.oxfam.org.uk/what-we-do/the-impact-of-our-work)
In their stores, they also accept donations (in most stores not all.) on a section of their website you can check where the nearest “Donation Point” is to you if you wish to know.
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However they are also liable to pay debts equal to the percentage of the company they own. The pros of this are they can increase how much money is put into the company by raising capital. Banks will be more likely to lend to PLC’s due to them being more financially stable. However some disadvantages are that the CEO can make decisions they may not benefit the shareholders, which can cause disagreements there is also a risk that somebody will by so many shares that they actually take over the business. Another positive of this particular type of ownership is that you have a greater chance for expansion and growth as a company and organisation. This is evident in Tesco as they have acquired a selection of companies to add a sister companies and have been integrated into the Tesco brand. For example; in larger Tesco stores they have implemented ‘Harris + Hoole café’s as a sub-section of the Tesco store where people can have drinks and order food in traditional café fashion. Another disadvantage however will be that as you are a registered company you will have more rules and regulations you will have to abide by, for example minimum wage law and employee safety
This means that any funds that Tesco earns from their sales goes directly to them while with Oxfam any income they make is only used for charitable causes and paying their staff. However one big difference is that if in the unfortunate event that both companies fell into any kind of debt then a company such as Tesco could use its assets to pay of the debts. With Oxfam they would have to rely on the donations they receive from their customers. And may even have to pay of their debts with the money they have and use for
In this section of the report I will be analysing how business activities from each factor; political, legal and social, have impacted on two contrasting organisations. The two contrasting organisations I will be focusing on are Tesco's and Amazon.
These two organisations contrast with each other because Sainsbury’s is a business that they are trying to make as much profit as possible, and Oxfam is a charity that are trying to make a change to individuals who are living in poor
This article will be about local, national and global businesses, this article will be discussing two contrasting organisations. The two businesses that will be investigated in this article are Oxfam (voluntary sector) and ASDA (public sector).
Another internal economy of scale from which Tesco benefit is technical. As they grow, they are able to use the latest equipment and incorporate new methods of production. An example of is their new self-service checkouts from which people can purchases their goods from a machine using a scanner. This increases efficiency and productivity, reducing average costs of output because it means they don’t have to employ as many workers.
Tesco understands and receives several of these different advantages and disadvantages as they are a Public Limited Company (PLC). An advantage of the ownership of Tesco is that the business can raise a large capital sum as there is no limit, however there is disadvantages also, by law they must publish their financial positions and performance to the public, whereas is a Private Limited Company they would not. Another disadvantage is the original owners may lose control of the business.
Oxfam’s marketing objectives would be to open more Oxfam shops across the u.k, so they can benefit their programs resources etc.
Oxfam is an organisation that has a goal, they say creates lasting solutions to the injustice of poverty. They strive to bring positive energy to those in poverty and they try to put a smile on their face to make very day a brighter day. Oxfam works with original and trees strait islander people and strive to answer all the problems these people might have. On the Oxfam website they tell us that they have helped the self determination for individuals along with communities for over 30 years. the reason for doing this to help social and cultural well being.
Tesco and Oxfam are both huge global businesses who both sell products to the general public however are organised completely different. In this leaflet I will compare and contrast organisational structures of both companies.
Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are
My first business is Tesco the biggest retail company in Britain. My second business is McDonald’s one of the largest franchise fast food outlets in the world.
Tesco also have social factors that affect them, as the business have charity centre in helping the less privilege people and the more these people gets poor, the more they will have to stretch to help out which also spending money.
In order to maintain a business effectively it needs to be successful, Tesco’s have been one of the most successful companies’ worldwide selling products and opening stores in 12 different countries. Research shows that Tesco’s profits are getting higher and higher as they are developing into their new E-Business. There are many ways to now access Tesco’s which is making it easier for customers to buy from them. The Daily Mail states that Tesco’s are earning a £105 profit each second.
Tesco can be said to be a global leader in the UK retail business. It is one of the leading world retailers. The company started using the trading name TESCO in the 1920s and since the group has expanded in many ways venturing in different markets and with interest in different sectors. Over the years, Tesco has recorded growth which has been achieved through different strategies. There has been emphasis on the growth of Core UK business in order to expand internationally. This growth has allowed the company to position itself in food and non-food sectors based on retailing services. Over the years, the company has witnessed financial fortunes which have been reflected in its growing sales. Sales have risen from 31,726,280 from 2013 to 32,074,650 in 2014 (Kantar, 2014.) This has been achieved through growth strategies which have seen the company expand its retail outlets and at the same time enter into new markets with high growth potential using their famous ‘every little helps’ branding along the way. The ‘Every little helps’ branding helped Tesco’s attract 1.3 million new customers in the period from 1990-1995, and the campaign achieved good effects on staff morale, attracting quality marketers to join Tesco, directly affected the share price and allowed the brand to move into non-grocery sectors where brand credibility is a key requirement. Disadvantages….limitations etc
Development, Education & Awareness – majority of the people involved in Oxfam’s relief and aid programmed are volunteers. A key component of supplying aid and relief to communities is knowing the background of the people you assisting. Another key area of Oxfam’s operations is ‘Clean Water’, those involved in this programme, need to be well educated regarding water, sanitization and the environmental impacts.