In this unit I will be writing about the activity of Tesco and news box and how it has changed over the years. I will also be discussing about the purpose of the business and its sectors.
Tesco is a UK based international retail chain providing grocery and general merchandise. It is known to be the largest British retailer by both market shares and global sales. Tesco is a company in the tertiary sector that provide products and service to the general public. When Tesco first started out, they only sold food and drinks however now they have diversified into areas such as petrol, insurance, cloths and many more. Tesco branches are based in various locations from the centers of towns to in the middle of high street.
Tesco is a public limited company which means Tesco can buy and sell their shares in stock exchange. This type of ownership has limited liability, which means if the business goes bankrupt then they can only lose the money invested within the business and not personal assets. They can also raise a large capital sum as there is no limit on the number of shareholders. The main disadvantage is original owner may lose control so they have to put strict control and regulations to comply in order to protect the interest.
The main purpose of Tesco has been to earn profit just like other businesses. Tesco specializes in food products and is currently the market share leader. Tesco provide their products and services based on the demand of customers, so if a certain style of clothing comes into fashion, Tesco will act fast and buy items in stock and sell them to increase profit. In order to draw more customers, they will also lower the essential prices of products such as milk and bread to sell them at a fair price while beats competitors. This strategy enables Tesco to attract customers of competitors.
Newsbox is a private limited company. It’s a small shop which sells range of products such as sweets, magazine, newspapers, drinks etc. it’s a small business and is in the tertiary sector. It provides service and goods to its customers. It started as a small shop but It changed overtime as they sell more range of products. It is harder for Newsbox to expand as it’s a small business as it has a less of a budget then its competitors. They get their products from large retailers as newsbox is a small business and commentating with other businesses in the area. The main purpose of the business is to survive, make profit and expand. As Newsbox is a sole trader the owner keeps the profit after paying taxes and decide what is best for the business. The main disadvantage of being a sole trader is that you have unlimited liability meaning the owner is liable for the debt. If the owner can’t pay the debt their asset will be taken away.