The workload can be shared. Fair trading regulations exist to protect the consumer from exploitation.
The consumer has basic legal rights if the product is:
- Given a misleading description
- Of an unsatisfactory quality
- Not fit for its intended purpose
There are two types of limited company that define the way money can be raised through shares. Private limited company's can sell shares only to designated people and there is a limit to how much capital can be raised through this method. Public limited companies can issue shares to the public so this means that any one can have a share in the business. In companies such as Sainsbury's shares are sold to gather capital, this is very different to a loan, as the money does not have to be paid back over a fixed period of time. When one shareholder sells his or her share(s) the company does not raise any additional funds. There are also preference shares and ordinary shares; ordinary shares are the most common form of share capital and these shareholders can vote at business meetings but the amount of dividends they receive will vary due to the share price. Preference shares do not have a say at meetings so they cannot vote. The dividends of these shares are usually fixed at a rate of five percent of the share price and are given out once a year. Preference shareholders receive their dividends before ordinary shareholders.
Stakeholders.
I am now going to investigate the stakeholders of a business. Stakeholders are anybody who has an interest or “stake” in the activities of a business. Stakeholders may be able to influence what a business does, but some may have more influence than others. For example the government can influence the location of a business and various other things like employees. For example the stakeholders of Sainsbury's are.
- Share holders
- Employees
- Local community
- Government
- Suppliers
- Management
- Banks
- Customers
- Pressure groups. .
All of the above have an interest in the activities of business, below shows how their interests and influences have changed over time. In business it is important that your business complies with the stakeholders needs to remain inline as a competitor with the competition. Below is an example of Sainsbury's stakeholders and how they influence or change over time. The following stakeholders of Sainsbury's in the chart below are shareholders, employees, local community and Government.
Stakeholder of Sainsbury's
Shareholders
Employees
What is their main interest in the business
High dividends and the business to expand and do well they also want the share prices to go up
Employees want Job security, good pay and good working conditions
What influence do they have over the business?
The share holders own the business
As a group, a union they may have a lot of influence in the business
What expectations do they have of the business?
High profit which leads to high dividends
Want pension schemes, good training, good rates of pay, social events and discounts
How have interests changed over time?
Looking to expand the business using the latest technology available. This may produce higher profits
Interested in the business doing well. They may have shares in the business themselves given as a staff bonus.
How has influence changed over time?
Employ more senior managers from other chains -Tesco manager- new ideas from outside the business.
More influential as there is a staff shortage in the area. Low level of unemployment. It costs 3000 pounds to train one person.
How expectations have changed over time?
Want greater profits and expansion to gain a greater share of the market.
Now expect better training, wages and conditions.
How is the business responding to any of the above changes?
They have tried to target other markets- electrical, insurance, petrol etc.
Always pay above minimum wage. Provide benefits so they don't leave to go to another store. Childcare flexibility maternity/paternity leave. Staff socials
Stakeholder of Sainsbury's
Local community
Government
What is their main interest in the business
They want the business to provide the public with good quality service and products
For the business to be successful and expand because the more money they make the more tax they pay.
What influence do they have over the business?
They have a say in the running of the business with regards to opening times and other things an example of this corresponding with Sainsbury's is the local community stopped the building of a petrol station.
They have an influence over employment, the selling of alcohol, and the location of the business.
What expectations do they have of the business?
They expect the area to be kept clean and tidy and they expect them to employ some of the local community
They expect them to abide by the laws and pay taxes on the goods they sell.
