P1 Business Btec 2017

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In this article I am going to inform you about two companies/businesses, one profit making company and one non-for Profit Company. I will give you a short brief on what each company does and its background. Then I will highlight the differences and similarities in each company. [pic 4]

TESCO

Tesco was founded in 1919 by Jack Cohen. It was initially a few market stalls. Tesco got its name in 1924 when Cohen bought a shipment of tea from T.E. Stockwell and combined those initials with the first two letters of his surname. The first Tesco store opened in 1931 in Burnt Oak, Barnet.

Tesco today is a huge company. It was originally a UK grocery retailer, since the early 1990s Tesco has expanded its products and services into areas such as the retailing of books, clothing, electronics, furniture, toys, petrol and software; financial services; telecoms and internet services.

Tesco comes under tertiary sector which is where the final product is sold and where they make the profit however they also can come under the secondary sector because they sell and manufacture their own products e.g. Tesco value

Tesco is public limited company (PLC).  A public limited company (plc) is usually a large, renowned business. This could be a manufacturer or a large chain of retailers with many outlets in most city centres. A plc shares trade on then stock exchange. The reason for Tesco being a public limited company is because of how big the company is. Due to the size of Tesco, it would be extremely hard to gather enough funds for the business if it was owned by a sole trader or by a few partners whereas in a public limited company, the company is owned by a large amount of shareholders who each fund smaller percentages into the company. This happens by the people or groups investing into shares in the company and therefore becoming shareholders. Being a shareholder means that you get the privilege of having limited liability. Limited liability is where if the company stops making profit and goes bankrupt the shareholders only lose whatever they have invested into the company.

Tesco is a global company with 6,809 stores across the world. It is part of the Private sector

BBC -The British Broadcasting Corporation (BBC) is a British public service broadcaster with its headquarters at Broadcasting House in London. The BBC is the worlds largest broadcaster in the terms of number of employees. It employs over 20,950 staff in total, 16,672 of who are in public sector broadcasting. The total number of staff is 35,402.[pic 5]

1922 is when the BBC was formed. It started out just broadcasting a radio services. It has continued to broadcast radio stations to this day, with 10 national stations and many smaller county stations such as BBC radio Lancashire. In 1929, it broadcasted the first public television in the world using John Logie Baird's electro-mechanical television system.