Business Environment

Business environment

PART A

Introduction

An Organization is a group of two or more people working together to achieve one common goal.

There are different types of organisations such as:

* Sole traders

* Private limited company (LTD)

* Partnership

* Public limited company (PLC)

P1.1

J Sainsbury’s Supermarket is a Public limited company. John James and Mary Ann started Sainsbury’s supermarket in 1869 and Sainsbury’s now have a total of 890 store in the U.K and USA 547 out of 890 is supermarkets and 343 out of 890 is convenience stores. In 1922 J Sainsbury’s was a limited company and in 1973 J Sainsbury’s become plc.

Sainsbury’s now serve over 19 million customers a week and have a market share of over 16 per cent. Sainsbury’s large stores offer around 30,000 products. Sainsbury’s also offer non-food products such as household, mobile phones etc. and self-services in many they stores. They also have an internet-based home delivery shopping service which is used by nearly 90 per cent of UK households and they employ 150,000 colleagues.

ADVANTAGES OF A PUBLIC LIMITED COMPANY

The shareholders have limited liability, the company can raise additional capital by issuing more shares. The company have greater borrowing power and shareholders in the company can sell or transfer their shares freely

DISADVANTAGES OF A PUBLIC LIMITED COMPANY

* There is a loss of overall ownership, there is a loss of control of the business, decisions will take longer and there may be disagreement, the personal touch may be lost, significant expenses are incurred when setting up a company, there are more statutory regulations to conform to, profits are shared between lots of people public disclosure of the financial affairs is necessary and published accounts have to be prepared

Sole trader organization

Sole trader is an organization owned and run by one person and there is no lawful distinction between the owner and the business. The owner holds...