How businesses develop
One person owns the sole trader type of business. The sole trader can employ people but these employees are unlikely to be involved in the control, financing or decision-making of the business. Sole traders set up the majority of the businesses in the U.K. This type of organisation has unlimited liability which means that there is no limit to the amount of the business’s debts that the owner is responsible for. If the business should fail, the sole trader may have to sell personal possessions- e.g. house and car- to pay off the business’s debts. Ashley Cash and Carry is a Sole trader who is an individual who has set up in a business on his own.
Ashley cash and Carry is located in Rayners Lane. Mr Dilip Chopra owns Ashley Cash and Carry and he employees 4 people who are working in his shop. He started his business about 10 years ago. The main product he sells is food, household products and vegetables. Dilip Chopra owns Ashley Cash and Carry. It suits the business because the owner wants to be in charge of the business and in control of all the key business decisions.
Mr Chopra wanted to be his own boss. If another company came and took him over he would be disappointed. He would lose his independences and control over the business he would also have no control over the profit of the business. A successful Mr Chopra gets to keep all the business profits and does not have to share the profits with shareholders
Only two people are needed to set up a public limited company and there is no upper limit. It has plc at the end of its name, which distinguishes it from a private limited. Members of the general public, as well as other businesses and financial institutions, can buy shares in a public limited.
The shareholders have limited liability; this means that if the company goes bankrupt then the shareholders are only responsible for the value of the shares. The company has its own legal status separate from the shareholders. This also means that the company can sue or can be sued. Most of PLCs start of as Private limited companies and then may want to grow but since it cannot sell its shares to the general public so it decides to be a PLC.
My chosen business is ASDA PLC. ASDA chooses to be a public limited company because it is a national company and it wants to expand and have the capital. Asda public limited company can sell shares to acquire capital and expand. Some of Asda’s profits are shared with the shareholders through an annual dividend payment. ASDA is Britain’s best value retailer; it provides Britain’s best value weekly shop with prices that are independently proven to be lower than their main competitors. ASDA has been voted again for the fifth successive year ‘Britain’s best value supermarket’ by leading trade magazine, The Grocer.
ASDA became part of the Wal-Mart family – the world’s largest retailer with an unrivalled reputation for delivering the lowest prices in June 1999. ASDA was originally formed by a group of farmers from Yorkshire and now has 259 stores and 19 depots across the UK. ASDA employ 122,000 colleagues and have a good reputation for being the best and friendliest in the industry. They have for the third year running been voted a top 10 UK employer (Sunday Times Top 100 Best Employers Survey) and were awarded the Nestle Social Commitment Award in 2002 by other businesses in the food industry.
In conjunction with Welsh Country Foods in July 2002, they set up ASDA Lamb Link to help British sheep farmers. Lamb Link now has 2,600 members, all of whom get paid within one or two working days for their lambs. In addition, lambs are collected direct from farms, saving the Lamb Link farmer time and hassle. We are now handling nearly one million lambs a year and sales of ASDA British lamb are up by 10 per cent Aberdeen Angus The Extra Special Aberdeen Angus range of beef, launched six months ago, has already developed into a ï¿½3 million-per-year business. Not only are customers trading up to Aberdeen Angus, but they are also trading up to better cuts of meat such as fillets.
This is equivalent to 200 British Aberdeen Angus cattle per week. ASDA Pork Link Pork Link encourages producers to supply heavier, leaner pigs, and aims to reduce farmers’ costs by between five pence and ten pence per kilo. The scheme, set up in August last year in conjunction with Grampian Country Pork and Grampian Pig Producers (Scotland’s largest pig marketing cooperative) started with just one Scottish farmer.
It now boasts over 35 producers supplying more than 3,500 heavier pigs into the Grampian Buckie plant each week. Farmers on the scheme get paid within 48 hours for their pigs. In addition, farmers who are making the transition to breeding heavier pigs are offered interest free loans to ease cash flow problems. Extending the British growing season In the last three years ASDA has extended the British carrot-growing season from 46 to 49 weeks. This year ASDA expect to source all of our carrots from British farmers. This means an additional 4.5 million kilos of British carrots will reach their shelves in 2003 compared to 1999. We have also extended the British season for new, baby and salad potatoes by 10 weeks. In the past ASDA had to start importing these ranges in November.