Advantages And Disadvantages Of Tesco

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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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