What it’s about?In this report there would be two businesses mentioned: public limited company- BBC and a private limited company- Tesco plc. These two businesses will be analysed to see what makes them successful and explore the different features of these businesses. BBCThe BBC is the world’s leading public service broadcaster. Its aim and objective are to enrich people’s lives with programmes that inform, educate and entertain. It is the largest international broadcaster broadcasts radio, television news, speech and discussions in over 30 languages to many parts of the world and also provide online services. It is established by a Royal Charter; the BBC is a public service broadcaster funded by the licence fee paid by UK households.
They use the income from the license fee for investment in new programming and services and also to provide services including: 9 national TV channels, 10 national radio stations, 40 local radio stations and an extensive website. The BBC would be a limited liability. The British broadcasting corporation is found in the tertiary sector whilst it provides public services- like the NHS or the civil services. Therefore, it is also considered as a public limited sector. Through the measure of employees, we can deduce that BBC is a large business while they have 20,916 employees. History The BBC was formed on the 18th October 1922 by a group of leading wireless manufacturers including Marconi. On November 14, 1922 the BBC daily broadcasting began in Marconi’s London studio.
John Reith a 33-year-old Scottish engineer was appointed general manager of the BBC at the end of 1922. Following the closure of numerous amateur stations, the BBC started its first daily radio service in London – 2LO. After much argument, news was supplied by an agency, and music drama and ‘talks’ filled the airwaves for only a few hours a day. It wasn’t long before radio could be heard across the nation. Thirty-three-year-old John Charles Walsham Reith became General Manager of the BBC on 14 December 1922.
There were no rules, standards or established purpose to guide him. He immediately began innovating, experimenting and organising, and with the help of his newly appointed chief engineer, Peter Eckersley, the service began to expand. Using BBC frequencies, John Logie Baird broadcast some of his first experimental television broadcasts from studios near Covent Garden in London. Pictures were in black and white, created by mechanical means, and flickered, consisting of just 30 lines definition.
In November 1936 the BBC was the first broadcaster in the world to provide a regular ‘high definition’ television service. Programmes we would expect to see today such as drama, sport, outside broadcasts, and cartoons all featured, but not for long. The outbreak of war in 1939 brought programmes to a sudden halt. In 2013/14, BBC Worldwide generated headline profits of £157.4m and headline sales of £1,042.3m and returned £173.8m to the BBC.
Tesco Tesco plc, trading as Tesco, is a British multinational groceries and general retailer with headquarters in Welwyn Garden City, Hertfordshire, England, United Kingdom. It is the third largest retailer in the world measured by gross revenues and the ninth largest retailer measured by revenues. Tesco offers a wide range of products and services from groceries, household products, clothing to insurance (travel insurance). Its main purpose is to create value for customers to earn their lifetime loyalty.
This business can be set to the financial sector. Tesco follows a hierarchical organizational structure. In this structure, positions and obligation are divided into many parts to ensure work will be done efficiently and smoothly. Tesco has a limited liability for the shareholders; the business has no limits to the number of shareholders. This is an advantage of this business however it also has a disadvantage- They have to publish their accounts so therefore competitors can see them, they have to pay dividends to shareholders. Tesco is a retailer therefore it is in the tertiary sector as it doesn’t make the products it sells it just provides a service, it buys products in from the primary and secondary sectors. We can examine Tesco plc to be a large business due to the fact of it having employed 476000 employees and over 6800 shops around the world.
Tesco International operations. Tesco has expanded its operations outside the UK to 11 other countries in the world.History The Tesco brand first appeared in 1924. The name came about after Jack Cohen bought a shipment of tea from Thomas Edward Stockwell. He made new labels using the initials of the supplier’s name (TES), and the first two letters of his surname (CO), forming the word TESCO. During the 1950s and 1960s, Tesco grew, until it owned more than 800 shops.
The company purchased 70 Williamson’s shops (1957), 200 Harrow Stores outlets (1959), 212 Irwin’s shops (1960), 97 Charles Phillips shops (1964) and the Victor Value chain (1968) (sold to Bejam in 1986). In May 1987, Tesco completed its hostile takeover of the Hillard’s chain of 40 supermarkets in the North of England for £220 million. On 21 March 1997, Tesco announced the purchase of the retail arm of Associated British Foods, which consisted of the Quinn worth, Stewarts chains in Ireland and Northern Ireland, and associated businesses, for £640 million.
BBC TescoFeatures Large business Large businessLiability Limited LimitedScope and sizes Large businessInternational20,916 employees Large businessInternational 476,000 employees Sector Public sectorTertiary sectorOwned by government Private sectorTertiary sectorOwned by shareholdersPurpose Television, radio, online, commercial wide range of products and services from groceries, household products, clothing to insuranceFeaturesBBC, British broadcasting company, is a public limited company which provides services. Its headquarters are at Broadcasting House in Westminster, London and it is the world’s oldest national broadcasting organisation and the largest broadcaster in the world by number of employees. Whereas Tesco is a private limited company which supply products and services rom groceries and etc. Both businesses are large business therefore would have a competition between the two businesses.LiabilityTesco has a limited liability, due to its size it would be hard to raise enough funds for Tesco if it was owned by a sole trader or by partners whereas in a Plc (like Tesco) the company is owned by shareholders who fund the company. However, they have to publish their accounts so therefore competitors can see them; they have to pay dividends to shareholders. Similarly, BBC also has a limited liability as itScope and sizes We can deduce the fact that both businesses are large international businesses while measuring the number of employees.
We can state that Tesco is a larger business than the BBC as it has 476,000 employees where as BBC has 20,916 employees. This is because even though BBC provides more service they are all via technology or media therefore not many employees are needed where as in Tesco more practical and online services are used therefore more employees are needed. Tesco has 6800 shops over the world which is another reason for Tesco to be a larger business than BBC.Sector The British Broadcasting Company is a public limited company therefore is considered in the public sector as it provides public services just like the NHS and is owned by the government.
On the other hand, Tesco is a private limited company and the company is owned by shareholders. Even though Tesco is a private limited company and BBC is a public limited company they both fall in the same sector; tertiary sector. Tesco is a retailer that’s why it falls in the tertiary sector as it doesn’t make the products it sells it just provides a service, it buys products in from the primary and secondary sectors.
BBC is a tertiary sector as confirmed while it provides public services such as: news, commercials etc. PurposeTesco’s main purpose is to create value for customers to earn their lifetime loyalty by providing a wide range of products and services from groceries, household products, clothing to insurance. BBC’s purpose is to inform, educate and entertain their audience: “Our five public purposes are central to us serving the public and help us achieve our core mission to inform, educate and entertain”. Both businesses aim to impress their audience or customers but in different ways for different reasons. For example Tesco impresses their customers by providing them with products such as groceries, clothing and online services whereas BBC impresses their customers by providing public services such as news, television and online services.P2: Explain how two contrasting businesses are influenced by stakeholders.
AM1: Assess the relationship and communication with stakeholders of two contrasting businesses using independent research.A stakeholder is anyone who has a vested interest in the activities and decision making of a business. There are two different types of stakeholders: internal stakeholders and external stakeholders. Internal stakeholders are entities within a business for example, the manager, employees, owners and directors of the businesses BBC and Tesco whereas external stakeholders are entities not within a business itself but who care about or are affected by its performance for example consumers, regulators, investors and suppliers of these two businesses. Both the businesses use communication to share the information between people within the business that is performed for the commercial benefit of the organization. In addition, business communication can also refer to how a company shares information to promote its product or services to potential consumers. Communication can be internal which is between people in the same business for example: formal meetings and briefings, informal meetings where employees can meet with senior management, e-mail, conference calls, or, external which is with people outside the business for example: press meetings, social media feeds, online videos and webinars, reports. Communication is essential for a business to provide their servicers effectively.
In Tesco, to communicate they use: reports, emails and fax as non-verbal communication and for verbal communication they have meetings, conversations, telephone conferencing and telephone calls. In BBC….Stakeholders within Tesco are shareholders, customers, employees, local communities.
The internal stakeholders such as: shareholders, employees, and managers and external stakeholders such as: customers, suppliers and the government are all important for the business as they can help to make the business grow higher. Employees are able to help the business become successful. One of the most important factors in an employee’s performance is to achieve goals. Successful employees meet deadlines, make sales and build the brand through positive customer interactions. Successful employees lead to a successful business. Employees are important for the business, Tesco, as they help to make profit… for the company which allows the business to grow.
They are stakeholders affected by Tesco’s decisions in the way that the decisions affect the company’s profitability. Tesco has a high credibility-the quality of being believable or worthy of trust- therefore there is a high possibility of the employees may be interested in Tesco. In order to make the business successful they use verbal and non-verbal communication to make this happen. One way the business communicate with the employee is writing reports; write staff reports to see how well the staff are doing and what they can do to help improve their service. Another way they communicate is by having face to face meetings to inform managers about the progress and new initiatives. A time to hear and be motivated by others ideas.
Staffs also use e-mails to communicate as it is easier to send messages to each other and are also good when communicating with other local or international branches. Also, e-mails are quicker to send than letters and allows to send as much information needed. However, this can be faulty and are not secure also it is not guaranteed that it will be read. Therefore, this eliminated from being the best way of communicating and allow writing reports and face to face meetings as effective. However, the most effective way of communication would be the staff reports as this is aimed directly to the staff and they know what their mistakes are and how to improve where as the meetings is aimed at everyone doesn’t give a chance of knowing how each individual can improve. Also, meetings would be useless if some staffs are unable to attend these meetings.
Similarly, another internal stakeholder, manager, could also help to make a business successful and has the important role in making the business and employees successful too. These managers are able to set tasks to the employees in order to allow the customers to get the best service. Therefore, employee motivation is an important task for the managers. Managers job is keeping shareholders happy; meeting their expectations will certainly reduce the risk of negative influences affecting the business. Tesco takes its employees very important in the business as they all work together to support the development of the business. They also are determined to look after their employees in a way they are expected to deliver to the customers.
This is a reason why managers are important to make the business successful and annual reports to show and tell the shareholders how well Tesco have been performing. While internal stakeholders are important to make a business successful, external stakeholder also play the same amount of role to make the business successful in Tesco. Tesco customers contribute to profit levels through buying products and services.