In this assignment, I will explore different types of businesses. Some of these will include: Sole Traders, Private Limited Companies (Ltd), Public Limited Companies (Plc), Partnerships, Non-Profit Businesses, Franchises, Co-operatives. In this instant, I will be exploring a Public Limited Company. Tesco.
A public limited company can cause many advantages and disadvantages for a business. An advantage of being a PLC is that it will give the company more of a prestigious profile. This could be easier to gain access to better suppliers or opportunities for the business. Another advantage of being a public limited company is Liquidity this means shareholders can buy and sell their shares.
Downsides to being a public limited company is that there will be greater access to the company’s financial performance and actions which loses abut of the businesses privacy. The value of the company will be determined by financial markets through the trading of the company’s shares.
Tesco is the Public Limited Company I will explore. To understand the size of Tesco, it has stores in 12 countries across Asia and Europe. There is a sum of 3739 Tesco stores within the UK (as of 2017). They also have 460,000 Colleagues at the end of 2016. This shows the size of Tesco and gets us to understand the effect that Tesco has on the UK’s economy and needs and goods of UK’s communities.
Tesco has different aims and objectives that they wish to achieve every day. Some of these include: ‘Cutting prices and offering more in store deals’, ‘To reduce unemployment in local areas where Tesco shops are built’. However, the two main aims for Tesco is to ‘maximise profits’ and ‘Grow and maintain the number on retail in the UK’.
Tesco understands and receives several of these different advantages and disadvantages as they are a Public Limited Company (PLC). An advantage of the ownership of Tesco is that the business can raise a large capital sum as there is no limit, however there is disadvantages also, by law they must publish their financial positions and performance to the public, whereas is a Private Limited Company they would not. Another disadvantage is the original owners may lose control of the business.
As Tesco is a Public Limited
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However they are also liable to pay debts equal to the percentage of the company they own. The pros of this are they can increase how much money is put into the company by raising capital. Banks will be more likely to lend to PLC’s due to them being more financially stable. However some disadvantages are that the CEO can make decisions they may not benefit the shareholders, which can cause disagreements there is also a risk that somebody will by so many shares that they actually take over the business. Another positive of this particular type of ownership is that you have a greater chance for expansion and growth as a company and organisation. This is evident in Tesco as they have acquired a selection of companies to add a sister companies and have been integrated into the Tesco brand. For example; in larger Tesco stores they have implemented ‘Harris + Hoole café’s as a sub-section of the Tesco store where people can have drinks and order food in traditional café fashion. Another disadvantage however will be that as you are a registered company you will have more rules and regulations you will have to abide by, for example minimum wage law and employee safety
Tesco is a British multinational grocery and general merchandise retailer, it has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in UK, where it has a market share of around 30%.
Tesco’s is a private company which is owned by directors and shareholders who fund the business and the sole purpose is to make money. Tesco’s main purpose is to sell and make profit on products they sell such as food and online service. Tesco’s will provide excellent customer service and make sure all customers come back which
Tesco has increased their market share by increasing their product and service line. Moreover, the main target market of Tesco is the grocery market that covers the majority business of the company.
Another internal economy of scale from which Tesco benefit is technical. As they grow, they are able to use the latest equipment and incorporate new methods of production. An example of is their new self-service checkouts from which people can purchases their goods from a machine using a scanner. This increases efficiency and productivity, reducing average costs of output because it means they don’t have to employ as many workers.
An advantage of being a public limited company is having limited liability because of only being responsible to amount invested into Tesco PLC. Another advantage of a public limited company is being able to liquidate. This is when shares are bought or sold to shareholders if on the stock exchange it’s quoted. An additional advantage of a public limited company is the share value as Tesco PLC’s value will be shown by the market capitalisation from being the share price being what it’s based on. An extra advantage of a public limited company is having better access to capital because of the existing and new investor are raising share capital.
Tesco is a PLC which means it’s a public limited company therefore has limited liability. Limited liability is when only the money you invest is at risk and not your personal possession. Tesco is a British and Irish multinational grocery and general merchandise retailer and owns 27.8% of the market share in the United Kingdom. It has 6809 stores over 12 countries across Asia and Europe and it is a large company as it currently employs over 476,000 people worldwide. Tesco was founded in 1919 by Jack Cohen as a group of market stalls and on his first day he made a profit of £1 on sales of £4. The name Tesco came from
Tesco PLC is a major food retailer that operates primarily in the United Kingdom. The company operates 2,291 supermarkets, superstores and convenience stores in the United Kingdom, the rest of Europe and Asia. The company also offers financial products, such as insurance and banking services, as well as electrical appliances and telecommunication products. For the year 2007 to date, Tesco PLC achieved revenues that totaled £ 46,611 million, an increase of 10.9% against the previous year revenues that were £42,016 million. Tesco is one of the largest food retailers in the world, operating around 2,318 stores and employing over 326,000 people.
Tesco PLC, the top three retailer in the world, which was establish by Jack Cohen in 1919 year, which has near 100-Year history. In these days, it has been thrived to 12 country all over the world, including United Kingdom, Malaysia, India, Hungary, Ireland, Kipa, Slovakia, Poland, Czech, Thailand, even South Korea, and China (Tescoplc.com, 2012). Tesco is a public limited company. According to Marcouse (2011:92), “Public limited company (Plc) is a larger type of company that must have at least £50,000 of share capital and has its shares traded on the stock market”, therefore Tesco can have greater capital source and shareholders in their business.
Tesco PLC is a British multinational grocery founded by Jack Cohen in year 1919. As one of the world’s largest retailers with 476,000 colleagues worldwide, serve millions of customers a week in Tesco stores and online (Our businesses, n.d.). In addition, Tesco has stores in 11 countries across Asia and Europe. For example, Malaysia, UK, Hungary, Ireland, Poland, China, India, etc. Since its launch in 2002, Tesco have opened over 50 stores across Peninsular Malaysia.