Phoenix collegiate 12H Unit 1 The Business Environment Contents Task 1 Two Businesses on our door step * Types of businesses, purpose and ownerships of two contrasting businesses * Different stakeholders who influence the purpose of two contrasting businesses * How are two contrasting business are organised? * How the styles of organisation help them to fulfil their purposes? * Points of view of different stakeholders seeking to influence the aims and objective of two contrasting organisations Task 2 Similar businesses in different worlds The influence of two contrasting economic environments on business activities within a selected organisation * How political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders * Comparison of challenges to selected business activities within a selected organisation in two different economic environments * Analyse how political, legal and social factors have impacted on the two contrasting organisations Introduction In this assignment I will be describing different types of business and the purpose of the businesses.

Also this assignment will have a description of ownership f two contrasting business which will be Asda and Oxfam. For Asda and Oxfam I will be also describing different stake holder who influence the purpose of Asda and Oxfam and it will show how the businesses are organised. Within in this assignment I will explain how Asda’s and Oxfam’s style of organisation helps them to fulfil their purposes. I will also explain the points of view of different stakeholders seeking to influence the aims and objective of Asda’s and Oxfam’s organisations.

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In the second part of the assignment I will be describing the influence of two contrasting economic environments on business activities within selected organisations; also I will give description on how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders. Within the second part you will get chance to read and see the caparisons on the challenges to selected business activities with in a selected organisation, in two different economic environments.

Also you will see a part which has been analysed on how political, legal and social factors have impacted on the two contrasting organisations. Task 1 Two Businesses on our door step Types of businesses, purpose and ownerships of two contrasting businesses A sole trader is when a business is owned and controlled by one person, although they may employ workers, e. g. a newsagent's shop. Individuals who provide a specialist service like hairdressers, plumbers or photographers, are also sole traders. Also this business has unlimited liability meaning it’s a type of deal in which you could lose some amounts of money.

In the sole trader there are many advantages which are involved in the business such as it is small and easy to set up especially for people who are new in the business sector. In this type of business the wage bill will usually be low, because there a few or no employees. Also it is easier to keep overall control, because the owner has hands – on approach to running the business and can make decisions without consulting anyone else. Besides the advantages of this business, there disadvantage which has a huge impact on the business.

The disadvantage could be that the sole trader no one to share the responsibility of running the business with, or some sole traders often work long hours and find it difficult to take holidays, or time off if they are ill. Partnership is when a business is owned by two or more people and share in the decision making. Also each partner is self-employed and takes a share of the profits. Partnership has unlimited liability. A partnership can also have a sleeping partnership that invests in the business but does not have dealings in the day to day running of the enterprise.

In partnership each partner is personally responsible for paying tax on their share of the profits and gains, and for their National Insurance contributions. Also each partner must register for Self Assessment with HM Revenue ; Customs and complete an annual tax return. Partners in this type of business need to raise money for the business out of their own assets or with loans. Within this business there advantages which can help the business to succeed in the business sector are that it is shared responsibility and more people are also contributing which allows for more flexibility in running the business.

Also there is less time pressure on individual partners. The disadvantages in this type of business are that the distribution of profits can cause problems and if you break up with your partner in the business then you business will no longer exist. Also if one of the partners gets in to dept then the whole company does. A private limited company is owned privately by a small group of people such as a family. They are not allowed to offer shares (in the company) to the general public and can operate through just one director. A private limited company cannot trade its shares on the stock market.

Although private limited companies are usually small in size, they are expensive to set up and have to produce proper accounts. Furthermore unlike a sole trader, private limited companies have to pay auditors, hold meetings as stipulated in the Companies Act and share profits between all of the shareholders. The advantages of this type of business are that if the company runs into financial problems, and has to be wound up, then you are not personally liable for more than ? 1 of its debts. Also it enables you to be taken more seriously than a sole trader status does.

The disadvantages which are related to this type of business are that you have to pay the cooperation tax and there is lack of capital due to no share issue. A public limited company is a type of company which is able to trade on the stock market. In order to gain plc status the company must achieve the following; Minimum share capital of ? 50000 Minimum of two directors Its name must contain “plc” or “public limited company” The advantages for this type of business are that the shareholders have limited liability and company can raise additional capital by issuing more shares or debentures.

Also shareholders can sell or transfer their shares freely. The disadvantages for this type of business are that decisions take longer and there may be disagreement and there is a loss of overall ownership. Also there is loss of control the business. Charity is particular type of voluntary organisation and it can be organised in a number of different ways such as they can be a trust or a company limited. This has a different governance structure, for example, a charity that is formed as a registered company will be governed by a board of directors, a charity that is set up as a trust will be governed by a board of trustees.

Also to register as a charity, an organisation must have purposes that are defined under law as charitable. Ownership ASDA is a private limited, and American retailing company called WAL-MART owns ASDA. Its shareholders own the company and this causes the ownership to constantly change, as the shares are constantly bought and sold. Shares which Asda has cannot sell to the public because it’s private limited company and shares given to those who are Asda’s s shareholders. Also shares are given to the owners of Asda. Purpose

The purpose of Asda is to supply goods and services of a certain quality to consumers. Other supermarkets such as Waitrose for instance, supply a higher quality of food but at a higher price. Also Asda provides the variety of food, aimed across the market. It is very important for Asda to stick with the purpose and fulfil the purpose in other to succeed and if they do not fulfil their purpose then there chance of losing customers and profit. Stakeholders Asda has to type types of stake which are called the internal and external stakeholders.

The internal stakeholders are the following: Owners - Owners of Asda are often thought to be the most important stakeholders because they have set up the business and give a lot of time into the company to make it successful. Owners like to see their share of profit increasing, and the value of their business rising. Employees - – employees will influence the business a lot because they would like work in a pleasant environment and place. Also employees will want less profits and more wages or payments for their goods, whilst shoppers simply want cheaper goods.

If employees give the quality of service to a customer then it will increase the influence of Asda’s purpose. Mangers – the manger influences the business by keeping staff in line and makes sure you the products are given in god conditions. Also there are in charge of employing good employees for the business. The external stakeholders of Asda are the following: Suppliers - They want to feel valued by the company and want frequent orders with prompt payments. Also suppliers can also influence the purpose by bringing good quality of product for customers to buy.

Government - The government wants businesses to become successful, to create jobs and to pay taxes. They want to see good businesses that take a full responsibility on looking after the welfare of society and this is how the government influence the business. Customers – Customer’s influences the business a lot and customers want value for money which involves providing the highest quality products at competitive prices. Ownership Oxfam is a charity which doesn’t have any ownership and Oxfam has volunteers who take part in this business.

Also Oxfam has 15 organisations working together in 98 countries and with partners and allies around the world to find lasting solutions to poverty and injustice. Oxfam works directly with communities and the organisation tries to ensure that poor people can improve their lives and livelihoods and have a say in decisions that affect them. Purposes The purpose of Oxfam is to help create lasting solutions to the injustice of poverty. Oxfam is part of a global movement for change, one that empowers people to create a future that is secure, just, and free from poverty.

In order to achieve their purpose Oxfam has to recognize the importance of gender justice and good governance. Also the Oxfam will have to go around world find where poverty is occurring and how it is going to stop in order to achieve their purpose. Stakeholders In the Oxfam organization, there are stakeholders who influence the organization. Here is the following stakeholder which involved in this organization: * Donors – Donors influence this organisation a lot because donors are the people who provide money to the organisation to give to the people who are suffering poverty or the money is spent on resources. Trustees – trustees influence the business by taking a big responsibility in law for the charity. Also there are appointed because they have put a lot of commitment in this charity and their experience and skills enables them undertake the responsibilities of trusteeship of a large and complex charity. * Volunteers – volunteers influence Oxfam by fundraising in different activities to provide support to the people who are suffering from poverty and also volunteers been helping to provide equipments and resources to those who are in bad situations.

Task 2 Similar businesses in different worlds The influence of two contrasting economic environments on business activities within a selected organisation India’s economic environment India has undergone a concept shift owing to its competitive stand in the world. The Indian economy is on a strong growth rise and their annual growth rate are going very good in the business sector, and their capital markets have increased among others.