Profits and the public
A better reputation increases market share and profits and the public will see the success and might choose to buy from that small organization e.g. swift supplies. To improve the business even more the aims and objectives act as targets for Swift Supplies which if a business achieves then this leads to better performance. The employees understand what they are aiming for and everyone is working towards the same targets and this makes the performance of Swift Supplies efficient and the aims are reviewed occasionally to determine if they’re being met.
Asda How successful is Asda in meeting the aims and objectives? Asda has been successful in meeting most of their aims and objectives but has lost the fight to earn major profits against companies like Tesco. This is the second consecutive year running that Asda has lost profits from 629.8m to 571.9m.The supermarket giant has faced fierce competition from a revived Sainsbury’s, as well as the continued supremacy of Tesco. Asda’s market share is now 16.6 per cent.
It is focusing on investing their profits in the near future, improving on fresh food, expanding the premium and organic ranges and extending the George clothing brand. Another factor which suggests asda is meeting their aims and objectives is the fact that sales have increased from 14.3 billion in 2005 to 14.9 billion in 2006. This suggests that customers are happy with Asda products and Asda are meeting their aim to be “Britain’s best value retailer.” However there is evidence to suggest that Asda are not meeting aims and objectives as their profits have fallen and they have received negative press and media.
Another factor contributing to suggesting that Asda’s aims are been achieved is the fact that Asda is constantly expanding and their market share has increased to 16.6 percent over taking Sainsbury’s and Morrison’s put together who own 15.7 of the market Looking at the above evidence, it can be concluded that overall Asda are achieving theiraims. Swift Supplies How successful is Swift Supplies in meeting the aims and objectives? Swift Supplies main aim is to engage in trading activities this includes selling goods in wholesales and distributing goods to all around U.K to gain profits. This in the past two years has declined slowly and Swift Supplies now do very little distributing but the wholesale industry is still running at a steady pace.
Swift Supplies has survived by selling products on the internet via their website but mostly via eBay. This means that they have failed their aim and now are reviewing itself in the new market of retail to increase their sales. Swift Supplies has served and satisfied the needs of its consumers by following their trend of shopping and selling online. This has made them popular in not just the U.K but all around the world. They have made new customers globally which wouldn’t have had been possible in the past. So they have successfully achieved their objective of following the market trend and providing customer demand.
Not only have Swift Supplies satisfied their customers but they also have made themselves earn sufficient income and profit to survive but they still have improvement to do in selling their products. They also need to improve their services towards customers to earn their trust. Their products have been the best in terms of quality from the last two years which have earned themselves customer trust and loyalty and that status is going to stay like that in the future. To conclude Swift Supplies hasn’t fulfilled the requirement of its aims and objectives but however it is steadily improving its performance and in the future it will take a turn and regain its highest market share and beat its competitors.
How Asda is suited to be a PLC Asda is suited to be a PLC because of a lot of factors. One of them is to receive more capital so it needs to trade on the stock market to sell shares publicly this way they get capital from investors which they won’t have to pay back and the company stays is in good publicity and they earn capital for investment and other financial matters. Asda is a large organisation and if the company goes down than it can go bankrupt and the company would be liable for paying back debt as it is a PLC but the shareholders wouldn’t lose their personal possessions.
Asda considering as such a large business it needs a group of company accountants and also a financial adviser to calculate the coming year’s expenses and they will advise if Asda will have enough money to invest or expand. The benefit of this is that employees are assigned to do their specific tasks and the employees work as a team for the advantage of Asda. How Swift Supplies is suited to be a Sole Trader Swift Supplies is a small company and it is a very recent company so a sole trader is an ideal type of ownership for a small business as it is very simple to start off with and the company doesn’t get the hassle of paperwork and shares.
The company isn’t fully publicized yet so it can continue selling its products without hassling from shareholders and its stocks. The owner can also work in his own business to save money from hiring staff and taking the risk. Swift Supplies will not go to the hassle of hiring a private accountant to do the accounts as the business is simple and basic plus depending on the skills of the owner he or she can also form the company accounts to the Inland Revenue. How Asda’s ownership has changed Asda originated in West Yorkshire in the 1920s.
It was a partnership of two brothers (Asquith Brothers). They were butchers. In the late 1920s Asquith brother’s butchers were expanding rapidly and wanted to continue growing. They decided to merge with associated dairies another West Yorkshire based company and they started to sell dairy products and meat. In 1950s Asda decided to become an Ltd (Private Limited Company) the reason was because they wanted to expand, have limited liability for assurance and sell shares privately to family and friends to raise additional capital.
The 1960s saw Asda become a PLC because they could sell shares publicly on the stock exchange to raise additional Capital. In 1999 Asda was bought by Wal-mart. This helped the company to become global. How Asda’s ownership could change Asda’s type of ownership is unlikely to change, however a change in ownership is still possible. This change could occur in several ways, the first way being that asda could become a Private Limited Company (Ltd), so that they can concentrate more on the business and improve their business activities and relieve themselves of the stock exchange and their stock holders. Asda can also choose to become a partnership if their competition e.g. Tesco is too strong.