Boots is one of the best known retail names in the UK. In addition to retailing, the group includes product development and manufacturing, international marketing, and property management businesses. It was first opened as an herbalist shop by John Boot in Goose Gate, Nottingham. Inside of The Boots Company, there are many products and services they provide like toiletries, medicine, baby products, opticians, healthcare, contract manufacturing and many more.
Boots The Chemists are probably the most well-known part of The Boots Company. With over 63,000 staff and over 1400 stores, Boots The Chemists is the UK’s leading retailer health and beauty products. One in three people shop at Boots The Chemists every week. Boots make their own products and they also buy stock to resale, similar to Asdas. Boots business stores are located on High Streets, Retail parks and also shopping centres throughout the country. Some are also located in Airports.
Boots is a public limited company (PLC). This means that they offer their shares to the public. The sector is owned by individuals or other businesses, called shareholders. Before Boots was allowed to start trading they had to fill out some extremely important paper work. The Memorandum of association, this contained the, purpose of trading, amount of capital it will raise and the name and address and also the article of association, which says things about inside the business from the rules of company meetings, the director’s power and the shareholders rights. These documents are sent to a place that records all companies in Britain.
After that Boots is issued a certificate that allows you to start trading. Shareholders are what own the companies, a shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in Boots. A company’s shareholders collectively own that company. Thus, such companies strive to enhance shareholder value. When a Boots earns a profit, that money can be put to two uses: it can either be re-invested in Boots (called retained earnings), or it can be paid to the shareholders of Boots as a dividend. Paying dividends is not an expense; rather, it is the division of an asset among shareholders. Many companies retain a portion of their earnings and pay the remainder as a dividend. Publicly-traded companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a special dividend to distinguish it from a regular one.
Dividends are usually settled on a cash basis, as a payment from the company to the customer. They can also take the form of shares in the company (either newly-created shares or existing shares bought in the market), and many companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder. Boots being a public limited has its advantages, for example they have limited liability, they have easy access to finance, more funds available for investment, and they can use the publicity to give them status. As well as these advantages, being a public limited has its disadvantages. For example all results must be published which is bad for the company because if the results are bad they still must be published, which gives them bad publicity. Also the owners of the company might lose control.
Aims and Objectives
Each company has specific aims and objectives in which they all want to succeed in and I have chosen four aims and objectives in which I believe are Boots main aims and objectives. Aim 1 – Boots have a goal to maximise their sales in every aspect and this can be achieved by decreasing their prices and having special offers to attract customers. This will sure to be a good investment because many customers would think of buying as much of the product that is on a sale because they believe it would save them precious money and the bonus of it being cheap. They could put the items which are not bringing in that much money to the company on a special offer and it could make them valuable money, and once all of the items on special offer are out the company could never bring it back to purchase because of its poor sales before on a special offer.
Aim 2 – Boots have another aim to grow and expand. If Boots open more branches, even branches around the world, Boots will become a well known beauty and toiletry retailer around the world. To finance such a big project like this they could either take a loan from the bank or they could wait till they have enough money before they buy the land for the new stores. Aim 3 – Boots also have another, to be highly competitive. By becoming competitive they can steal customers from other rival businesses e.g. super drug. They can do this by doing the thing that makes companies so individual and more. They could beat there rivals by offering better prices for items, more variety in stock, and providing more services with better customer care.
Aim 4 – They can also provide range of goods and services. This involves the company expanding upon there idea on what they are going to sell, and what services they are going to provide. By developing upon those ideas they might be able to find an idea that everyone will like. These ideas could involve having an in store health consultant for all health questions that need answering. With all of these aims they al result in more profit.
It is very important for business to set aims an objectives, because without them, the business wouldn’t know what they are aiming to do or how to achieve these aims. Aim 1 – Boots set an aim to maximise there sales. It is important for Boots to set this aim because they need to sell items to make a profit. For a business to be successful they need to make a significant amount of profit, this can be done by maximising there sales which is why this was set as an aim.
Aim 2 – Boots also set an aim to grow and expand, this basically means that they open more Boots stores may it be in a new shopping mall or a entirely different country. By opening new stores the Boots name would become well known world wide meaning that people are buying things from Boots meaning that they again make more money. Aim 3 – Boots also set aims to become more competitive, this means out selling other businesses like Superdrug. It becomes a success you would need to separate yourselves from the other businesses like yours. By offering something that another business doesn’t offer gives you a competitive edge on the opposition. Meaning you make a bigger profit buy selling something other businesses don’t.
Aim 4 – Boots again set another aim to provide a range of goods and services. This then again talks about the uniqueness of the actual business, providing something other businesses don’t. By providing something other businesses don’t, you attract the people that want to buy these items, thus resulting in more profit. In the end that’s what all businesses want to make a large some of money in the end. Before businesses can set these aims and objectives, they need to think if it is a SMART objective. This basic acronym basically means:
Specific – Objectives should specify what they want to achieve. Measurable – You should be able to measure whether you are meeting the objectives or not. Achievable – Are the objectives you set, achievable and attainable? Realistic – Can you realistically achieve the objectives with the resources you have? Time – When do you want to achieve the set objectives?
They need to see if there objective follows these criteria’s, because if it isn’t suitable to be used. Most important out of the five criteria’s is that it is achievable and realistic.