Unit 1 Business Environment Assignment with ASDA and WellCare (GC01261)
Table of Contents
INTRODUCTION
TASK 1
P1 Describe the type of business, purpose, and ownership of two contrasting businesses
P2 Describe the different stakeholders who influence the purpose of two contrasting businesses
TASK 2
P3 Describe how two businesses are organized
P4 Explain how their style of organization helps them to fulfill their purposes
TASK 3
P5 Describe the influence of two contrasting economic environments on business activities
TASK 4
P6 Describe how political, legal and social factors are impacting upon the business activities
CONCLUSION
REFERENCES
INTRODUCTION
In modern times, the internal environment of a company has been to be managed and controlled with the help of new and smart technologies. It is very important to properly analyze and evaluate the external market environment as well as major factors that can be impacting on operations and their production level (Baxter, 2012). This research project will be explaining about different type of businesses and their major purposes as well as major factors such as social, legal, political, etc. which be influencing the firm. ASDA is the fastest growing and leading retail company in the UK, which is dealing with different types of home products. Its already set a brand image in the external market place and customer’s mind.
TASK 1
P1 Describe the type of business, purpose, and ownership of two contrasting businesses
Types of two contrasting businesses
Asda Stores Limited, commonly known as ASDA, is the second-largest retail store and a national public limited company. It is a profitable business and it is the subsidiary of American company Wal-Mart. It was founded in 1949. Furthermore, as Asda is a profitable business it is also in the private sector (Breton‐Miller and Miller, 2013).
WellCare is a local charitable, non-profit organization. They earn no profit out of their work however do accept forms of donations and fundraisers. The charity was set up by a church over 100 years ago. It was originally founded in 1894. Furthermore, as it a non-profit business and is giving service it is in the public sector.
Purpose of the business
A charity is a group of profitable people whose aim is to give service and help those in need. WellCare charity provides services that include social work and family support, support groups and life skill workshops, and a children’s health clinic. They work to keep families together and encourage parents to give their children a happier childhood (Chaffey and White, 2010).
Asda is a retail supermarket and the purpose of Asda is to make a profit and to supply goods to customers. It sells general merchandise such as food, drink, clothing, and various other items. It also has services such as insurance, financial services, and a mobile telephone network.
Business Ownership and level of liability
Asda was founded by Associated Dairies & Farm Stores Limited in 1949. This is situated in Leeds. The company has limited liability, therefore any debts within the company are paid by shareholders investment and this means the owner wouldn’t have to sell their assets and belonging to pay the debt. Being a shareholding company, they can freely sell shares; this is an easy way to have money contributed to the company.
WellCare was founded in 1894 and was originally called The Diocesan Association for the Care of Friendless Girls. This company has limited liability, this means any debt is paid for and the owners do not have to sell any assets (Cauchi, Pena and Sneha, 2012).
P2 Describe the different stakeholders who influence the purpose of two contrasting businesses
There will be explained about companies and major stockholders, ASDA, and WellCare Charity. Firstly, Stakeholder is an individual or a group who has an interest in the success of a business that delivering high results and maintaining the viability of the business’s products and services. There are internal and external stakeholders of ASDA and WellCare are stated as follows:
Stakeholders of ASDA
Employees: Employees are people who have contracts with two parties, one being the employer and the other as employees. Employees rely on their job for pay. Most employees work for money but there are some who work voluntarily. Employees can work part-time, full time, temporary, and permanent all depend on their commitments (Greenrooms, 2011). Employees are one of the Stakeholders, they are interested in the business and want it to do well and succeed. The employees will have job security as they will be well secured by the business. Employees are interested in good sales and good service to the customers therefore they can get rewards/ promotions and bonuses.
Suppliers: Suppliers want to feel valued by the business and get regular orders and get paid quickly and on time.
Owners: Owners mostly spend a lot of time and money on a business. Therefore, shareholders or the owners like to see that their business is at a high rate of profit and increasing the profit and, they would like to see the values of their business are rising.
Customers: Customers want valuable and high-quality products at an acceptable and average price. The primary purpose of providing goods and services is to fill needs. Understanding the needs of an organization’s core customer base, and optimizing operations to best fill those needs, is therefore a significant part of managing a business. Interacting with customers through social media, emails, storefronts, user testing groups, and the delivery of services and goods is an important aspect of maintaining a strong community.
Local and National Communities: Employers of local people often have a stake in the businesses within the community. Financial activities and events significantly affect the local environment (Hahn and Gold, 2014).
Stakeholders of WellCare
Beneficiaries: The people and parties who actually use the services and goods created, distributed, or allocated by the WellCare are the users.
Donors and funding sources: Those who help in funding the operations of the WellCare are the donors and the funding sources.
Community: The surrounding community as a whole has a stake in how well WellCare completes its mission and objectives.
Employees and volunteers: Employees and Volunteers provide vital services to keep the WellCare running and are important stakeholders for WellCare. In return, it seeks emoluments or recognition of its services. It also seeks protection from personal liabilities.
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