BUSINESS MANAGEMENT

Business Management

Business Management

Question 1:

The main purpose of this paper is select one public sector and one private sector organization and describes the purpose and from of ownership. The public sector organization, which I have chosen for this paper is National Audit Office and the private sector organization are Tesco PLC. The main purpose of National Audit Office is to check, audit and monitor the financial records of different companies, government bodies and agencies. National Audit Office is owned by the local authorities (Child, 2006, p. 167). The privately held organization is Tesco. Tesco is a retail organization that caters millions of customers around the globe. As a global business, the company perceives itself as having a vital role to play in helping to minimize its environmental impacts. Although based in the United Kingdom, Tesco PLC has developed into an international grocery and general merchandising chain, employing 440,000 staff worldwide and with sales exceeding £59 billion (in the year ending February 2009).

Question 2:

Difference between Public and Private Limited Company

There are many differences between the private a public limited companies. A public limited company can sell off its stocks in the common market, whereas, the private limited company can not sell it shares in the common market. It is necessary for a public limited company to show and publicize its financial statements in public. On the other hand, it is not necessary for the private limited company to show its financial data to public (Zeira, 2007, p. 259). The members of private limited company cannot exceed from 50 members, whereas, there is no restriction on the maximum number of members in terms of public limited company. It is necessary for the private limited company to write the word “Private Limited” with its name. On the other hand, it is not necessary for the public limited companies to write the word public limited with their names.

Question 3:

Four different ways in which a business might seek growth

Following are the four different ways in which a business might seek growth:

1- By increasing the number of customers- a business can get growth by increasing its number of customers. The main advantage of this method is that, by increasing the number of customers the company can increase its business. One disadvantage is that in case of customer dissatisfaction they can ruin the image of your brand. 2- By improving the effectiveness of advertising- Advertising is the biggest medium through which a company can attract a number of customers (Lenke, 2006, p. 268). It is a good medium to attract new customers, and the disadvantage is that it is a costly procedure. 3- Get the customers/clients to buy more frequently- Mostly business focus on their first sale and do not give focus on their second sale. In order to grow the business, it is necessary for companies to make focus on their second sales. This is advantageous in order to maintain the customer's retention. On the other hand, one disadvantage is that sometimes by focusing on ...