Contrasting Business Types by Purpose, Ownership and Stakeholder Impact
For this assignment I have decided to use two separate and contrasting companies both having separate business purposes. The two businesses I have chosen to write about are UNICEF and John Lewis partnership.
UNICEF is a non- profitable international organisation whose main purpose is to address the needs of struggling children around the world to ensure that all children can at least get their basic needs that they deserve and have the human right to. UNICEF was created on December the 11th 1946 and was original called the United Nations international children’s emergency fund which then became UNICEF ...view middle of the document...
Employees can vote at least 80 per cent of the partnership council, the rest are decided upon by the chairman. The partnership council also get to designate five directors for the board and the chairman again will pick the rest. Employees also get to tell the management how they feel through the companies own magazine which is the oldest in-house magazine still going. Employees can send anonymous messages to the magazine voicing their opinions to their management and chairman. The John Lewis partnership has limited liability due to the fact that one partner is not legally responsible for each other’s actions. John Lewis partnership operate in Britain with 30 John Lewis stores and 9 John Lewis at homes. They also have Waitrose which has around 300 branches mainly around London area. The John Lewis partnership has performed very well and outshone the market for over 4 years. Their market share is 4.9 per cent which is 0.3 per cent higher then what it was last year. Due to the John Lewis partnership providing a service they are located in the tertiary sector of the market.
John Lewis partnership’s main goal is to provide high quality goods for reasonable and prices and attract more middle-higher class customers, ultimately the aim for the partners is to make a profit as this means more money for all the employees.
Stakeholders have a lot of influence on the company and how it will be run and in general. There are two types of stakeholders. These are:
Internal stakeholders – These are the groups inside the business which run the company. The internal stakeholders for UNICEF are its volunteers who go around the world doing work for them and not getting paid for it, trustees which are chosen by the president who are still volunteers who help determine what the charity does and try and complete the mission set by the president which is to give every child in the world the basic requirement’s to get them off in life the best way possible and address the needs of both the children and mothers, also staff members from all over the world working who work on different jobs for the charity. The president is also a stakeholder who oversees everything; he sets the targets for the trustees to achieve and is in charge of everything including the allocation of their workers to making sure the day to day tasks are met. Also any other worker working under UNICEF is an internal stakeholder of the business. The internal stakeholders for the John Lewis partnership are mainly the employees who are the partners of the business. There is the management who are also stakeholders of the business. Due to it being a business predominantly for making profit the employees are motivated to work hard and to try and make money for the business as they get a share of the annual profits. Also by having employees as partners, they are able to create better working environments for themselves which again will help the partners to work more efficiently and if...