Topics: Private sector, Economics, Economy Pages: 5 (1576 words) Published: September 22, 2013


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. P3 Describe how two businesses are organised.

P4 Explain how their style of organisation helps them to fulfil their purposes. P5 Describe the influence of two contrasting economic environment on business activities within a selected organisation. P6 Describe how political, legal and social factors are impacting upon the business activities of the selected organisations and their stakeholders M1 Explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organisations. M2 Compare the challenges to selected business activities within a selected organisation, in two different economic environments. M3 Analyse how political, legal and social factors have impacted on the two contrasting organisations. D1 Evaluate the influence different stakeholders exert in one organisation. D2 Evaluate how future changes in economic, political, legal and social factors may impact on the strategy of a specified organisation

I work for the Kent Messenger and I am writing a report on two contrasting businesses within the local area. The two businesses that I have chosen to report on are JD Sports and British Heart Foundation. These two businesses contrast significantly. The Four Business Types

There is four main types of business that all organisations will fall into, they are: Local, National, International and Global. Local business organisations only provide and make custom within a small area within a country, typically this would be regional, or even restricted within a County. Ownership would usually be limited to one or two individuals therefore the profits would be split accordingly between the limited numbers of shareholders as opposed to dozens of shareholders. Employees within a local business (typically small business) are able to connect more easily and quickly with customers and as a result, are more likely to develop better customer service and develop long term customer loyalty. These attributes ultimately leads to improved sales and larger profit and success for the business. However being restricted to a town or county, would restrict the business’s ability to grow and create business elsewhere within the country. National businesses operate within the whole country, therefore capitalise on sales from many different areas which ultimately increases profits. There would typically be more stakeholders of a national business, unlike a local business who would have one or two. The running costs of a national business would be significant as there would be several assets such as office locations, depots or factories, compared to a local business that may simply consist of a single warehouse or shop. Communication between stakeholders would be more complicated and sophisticated due to the fact that the business is spread all round the country. Many different people would be holders of a percentage of this type of organisation therefore profits would be spilt. However being national not local the profits would be considerably higher. A national business would most often be seen on the stock market where shareholders purchase shares within the business and would be rewarded with depending upon the success of the business. A dividend is a certain percentage that is worked out according to the amount of money you have contributed. This money is only assessable if the business turns over a profit at the end of the year. International businesses would have assets in multiple countries and would provide a service or product to many different parts of the world. This gives company owners more ideas and creativity to what services or products to produce and sell in different locations. Highly likely to be in the stock market and being international, would produce many...
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