The type of business, purpose and ownership of two contrasting business

P1 Describe the type of business, purpose and ownership of two contrasting business The aim of this report is to describe the type of business organization that operates in United Kingdom and United Sates of America and they are two contrasting business. This will entail comparisons between a Public limited company (Plc.) and a Private limited company (Ltd) in their footings of their ownership, purposes, and sectors of activity and key stakeholders. For this report I have selected to investigate Yum! Brand Inc. and Fish to Go Leigh on Sea. In order to extract the information I require and want I utilize the following methods.

Yum! Brands Inc. based in Louisville, Kentucky, is an American restaurant owning company and is the world’s biggest restaurants company in terms of system restaurants. The company operates and licenses KFC, Pizza Hut, and Taco Bell. Additional restaurants are newly added are Wing Street and East downing. These restaurants are global leader of Chicken in KFC, Pizzas in Pizza Hut and Mexican-style food in Taco Bell. These categories which they have been placed in are renowned of it. Yum! Brands Inc. has franchises that function with a license and they are 80% of the restaurant.

Size of Business

There are above 39,000 restaurants in accumulation of 130 countries and territories since 1997 subsequently when KFC, Pizza Hut and Taco Bell came to be the spun-off from PepsiCo. Yum! Brands Inc. is ranked number 201 on the Fortune 500 which is the section of CNN that deals with Money: CNN Money. Ranked number one was Wal-Mart stores with profits of $16,999 mm however Yum! Brands Inc. profits are $1,597 mm. Yum! Brands Inc. opens more than five restaurants per day; by doing this it makes Yum! Brands Inc. a leader in international retail development and demonstrates they want to amplify their company to auxiliary success. Geographic structure of Yum! Brands Inc. would be that they operate in U.S which is where their headquarters are, China and India divisions.

Business Sector

Yum! Brands Inc. is presently in the tertiary sector because tertiary sector stresses for commercial service; it advertises other company’s products and their own as well. They have services that sustain production and distribution for example transport, marketing and insurance. It is in the tertiary sector because it serves consumers to make and increase profits. It is not in the primary sector because that is where there suppliers supply to them with ingredients that Yum! Brands Inc. require.

Mission statement

“We’re building a vibrant global business by focusing on four key business strategies: Build leading brands in China in every significant category Drive aggressive international expansion and build strong brands everywhere Dramatically improve U.S brand positions, consistency and returns Drive industry-leading, long-term shareholders & franchisee value ” Moreover their mission statement is also “We're proud of the unique culture we've built, one that's filled with energy, opportunity, and fun. We believe in our people, trust in their positive intentions, encourage ideas from everyone, and have actively developed a workforce that is diverse in style and background. Yum! is a place where anyone can, and does, make a difference.”

Type of ownership

The type of ownership of Yum! Brands Inc. is Public Limited company (Plc.) this means that Yum! Brands Inc. have their shares bought and sold on the stock exchange, and conducts trading in the stock exchange. The main advantage of this is that large amount of capital can be raised very quickly. One disadvantage is that the original shareholders can lose domination of a business if large quantities of shares are purchased as part of a takeover. It is also costly to have shares quoted on the stock exchange. Another disadvantage would be the financial disclosure where Yum! Brands Inc. has to publish a report of their financial information for the public to read also involving their competitors.

Key stakeholder

A stakeholder is anyone an interest in a business; stakeholders are individuals, groups or organizations that are affected by the activity of the business. For Yum! Brands Inc. the key stakeholders include; Consumers would want a company to produce extraordinary quality that serves its values by the amount of money the consumers pays, the consumers like to see improved products that gives better value for their money Employees’ stake is that the company provides them with livelihood. They seek security in employment, promotion prospects and good rates of wages. Furthermore they want to work in a company which they take pride in. Suppliers want steady orders and prompt payments. They also like to be valued by the company they supply for instead of their ‘last resort’.

Employment

Yum! Brands Inc. employ 300,725 as of 2013 people, they obtain numerous and talented employee to manage various departments for example the sales, purchasing, competitor, manufacturing, marketing, finance, operations, human resources and administrations. These people all communicate interlink and aid each other to make the mission statement of Yum! Brands Inc. become successful. Now I am going to do the same for Fish to Go Leigh on Sea that I have done for Yum! Brands Inc.

Fish to Go Fish to Go is based in Leigh on Sea, Essex: it is a local English fast food takeaway. Fish to Go concentrate on Pizza, Chips and fish food. Due to it being a small business it does not have franchises or partnerships, it has a sole trader who is Mr Mehmet Hussein. Mr Mehmet Hussein can set partnerships with a family relative but has not maybe because the disadvantage of partnerships is the disagreement and conflict when making decisions. They have fifteen employees in every four takeaways that are owned solely by Mr Mehmet Hussein. The reason as to why few employees is because their business is small and family owns it: furthermore the number of employees in a business shows if the business is small or big, this is a small business.

Fish to Go is a Private Limited company (Ltd) this legal term represent that if the business fails, the owner loses the money that is invested in their business and their personal assets for example their home or car, are not at risk of being taken away their will. Fish to go is in the Private sector because it is a Ltd and only positioned themselves in Leigh on Sea and have not expanded except four other takeaways. Being the sole trader Mr Mehmet Hussein encompasses all profits business that are not owned or operated by the government.

What is required to set up a Private Limited company type of ownership; Memorandum and Articles of Association are required to set up the business, the company issues a certificate of incorporation and after this Ltd can commence trading. Mr Mehmet is the sole trader of Fish to Go, advantages of that is he had domination over his business, greater opportunity for flexible working hours, it is easier to set up a Private Limited company and this type of ownership requires few legal requirements. Fish to go is a local business; it provides good service and goods to the local consumers or consumers in the surrounding area. Fish to Go is in the tertiary sector of business sector. It purchases food from a supplier to the local people. The mission statement of fish to is; Provide for the public with healthy meals