Unit 1- Exploring Businesses Ahmed Mohamed
The two businesses I am going to compare are Tesla motors and Save the Children. These businesses have many reasons on why they are successful and here are a few features that make businesses like these how successful they are today.
Tesla Motors
Tesla, Inc. is an American automotive and Energy Company based in Palo Alto, California. The company specializes in electric car manufacturing. Tesla was founded in July 2003, by engineers Martin Eberhand and Marc Tarpenning, under the name Tesla Motors. The companies name was derived from engineer Nikola Tesla. Tesla was then joined by Elon Musk, J.B. Straubel and Ian Wright, all who respectively call themselves co-founders of the company. Tesla operates more than 200 stores and galleries around the world, 120 of which are outside the USA.
Tesla Motors is a public limited company (PLC). This is because of the size of the business. As a result of its size, this means that it would be hard to get enough profit for Tesla if it was owned by a sole trader. Sole Traders have unlimited liabilities and have usually a small business. Tesla have shareholders who have money invested in the company. Being a public limited company means high liquidity. This means that it is easier for a shareholder to sell their share quicker. Another advantage of being a public limited company is that it will appeal better to the investor. This is because the investors will have the luxury of having limited liability. Limited liability is where if the business goes bankrupt the people only lose whatever they invested in the business.
As there are many people involved with PLC, Tesla can gain more ideas and improve the way they provide service to the customers. This is a benefit for the shareholders of Tesla because the more people they have, the more ideas contributed they’ll likely to have.
Tesla have a large size of business which allows them to be different. This is because the company has many employees working for them, making Tesla grow and make profit. Tesla have 92 stores in the US and 96 in Europe. Overall, they have 212 worldwide stores. This shows how they have grown throughout the years and how they are a successful business. With all these stores you need employees and Tesla have over 45,000. As they have many stores around the world, this means that they are on a multinational scale.
Penultimately, Tesla are a Public Limited Company which means that they are not under the control of the US government. This makes them part of the private sector. This will allow the business to make their own decisions rather than co-operating and listening to the rules that the government have set. Tesla are in the secondary sector as they manufacture the goods and products. Their main focus is for them is to accelerate the world's transition to sustainable energy. This is in order for them to become the best company who sell cars.
Save the children
Save the children is Save the Children is a global movement made up of national member organisations. Save the Children UK is the oldest and one of the biggest members. We raise funds for our global work and advocate for children internationally and in Britain. They provide help for struggling people in difficult countries. It was established in the United Kingdom in 1919 in order to improve the lives of children through better education, health care, an economic opportunity, as well as providing emergency aid in natural disasters, war, and other conflicts.
One day a boy named Samuel was walking to a farm he slipped and fell. He thought nothing of it. Three days later his foot was so swollen he could not walk, and eventually his skin burst from the pressure. One month later Save the Children came to Samuel's town and helped get him medical care for his foot injury. This shows that if there is a problem occurring in the world, save the children will respond to it by trying to find solutions.
Save the children are under the volunteering sector which is when a person or a group of people carry out tasks in order to help people with no profit included. This means that they are starting and running a business. In order to help those less fortunate and not to be drained with money. Save the children also come under the tertiary sector. Businesses similar to save the children like Oxfam come under this sector because they sell things like clothes and blankets that people have donated and tertiary sector is the products that have been manufactured by others. Private sector is when businesses are not under direct control by the government. Save the children is in the private sector because they weren’t founded by the government and they are able to do things that they wish do to.
Furthermore, charities have limited liability and as save the children are a charity, they have it as well. This makes them a public limited company. It protects the individual trustees or board members from being personally liable for the debts of the charity. If the charity were to have some form of liability or debt, only the assets of the charity would be reachable to be taken.
The purpose of save the children is to provide lifesaving supplies and emotional support for children caught up in disasters like floods, famine and wars, campaign for long-term change to improve children's lives. The purpose is something that Save the children take seriously and is used to attract people to donate. This highlights to people what the charity wants to achieve and establish. Save the children has a large size of business and the scale of business operations is Global. They operate in 50+ countries which means that they are successful everywhere.
In conclusion, both businesses have many similar and different features. These are what makes them successful and how they run their business in order to achieve their overall mission/vision.
Information
Tesla Motors
https://www.tutor2u.net/business/reference/public-limited-companies
https://gpwrite.wordpress.com/2016/03/31/number-of-tesla-stores/
https://electrek.co/2018/10/15/tesla-45000-employees-elon-musk/
Save the children
https://www.savethechildren.net/what-we-do
https://www.savethechildren.net/about-us/our-vision-mission-and-values
https://www.savethechildren.org/us/about-us/why-save-the-children
A.P2- Explain how two contrasting Businesses are influenced by stakeholders?
A.M1- Assess the relationship and communication with stakeholders of two contrasting businesses
Stakeholders is a person who’s interested in the business and are people who are affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, employees, government, owners (shareholders) and suppliers.
External stakeholders are people who have an interest of the business but they are outside of the business. An example of external stakeholders are regulators, supplies and consumers. Internal stakeholders are people who are inside the business and are affected by the decision made. Examples of internal stakeholders are employees, CEO and managers. Both External and Internal stakeholders can have major impact on how Tesla and Save the Children run their business.
Save the children
Save the children isn’t as big as Tesla because they have less stakeholders compared to Tesla. Both of these organisations are different as they do not have similar visions and targets to reach. Save the children are a business who work in order to make the world peaceful, but Tesla are operating in order to gain profit. Save the children do not want to gain profit and want to make people in dangerous countries to live a better life.
Save the children have volunteer’s aswell as employees and these volunteers make them where they are. This means that the volunteers offer help and do not expect nothing back. These people are important to save the children because money can go to donating and making the charity better rather than keeping the money. These volunteers are flexible as they run the business and make sure everything is going smoothly whilst save the children are elsewhere aswell as making sure that the objectives and vision set out by the business is still being met. The employees are the backbone of the business as they are the one who travel to different and dangerous countries in order to help them.
Moreover, a key stakeholder in save the children is the trustees and executive directors. This is because the board of Trustees works closely with our executive directors to guide their decision-making on strategic issues and hold them to account for their leadership of the organisation. This means that any activity carried out by the employees of save the children, is down to the Trustees and executive directors. Any bad problems that occur to happen to save the children is down to them as they are held responsible for any activity. An example of this is that if save the children do not reach their mission which is “To inspire breakthroughs in the way the world treats children and to achieve immediate and lasting change in their lives”, the trustees will have to react properly and make sure they’re on the right track to be meeting it.
Furthermore, Save the children also have suppliers, they are extremely important to them. This is because Save the children need to find the cheapest way to get products to ensure they have the funds to support their cause. Save the children have to have good supplies as they’ll need products for a cheap price and the better the suppliers they have the higher chance they’ll have of getting a better deal. Therefore, save the children has to attempt to try selling these products to the community for a high amount so they can achieve the objectives. Therefore, if the suppliers wouldn’t supply the products for a low enough prices, Save the children would have to change their approach to things to ensure that they are still meeting their aims and objectives because they’ll be wasting money.
Additionally, stores like Asda, Tesco and other supermarkets influence charities because they donate money to them. They give them items that haven’t been sold depending on the charity for example charities like Water Aid will receive food from these stores. There are many companies who work with Save the children and one of them is Arsenal Football Club. In 2011, The Arsenal Foundation announced Save the Children as its global charity partner and since then has raised more than £2million for Save the Children’s vital work. In Iraq, Indonesia, Somalia and Jordan we have delivered football programmes which provide children with a safe space to play, build their confidence, encourage teamwork and give them hope for a better future. Another organisation they have also worked with is IKEA. The collaboration between IKEA and Save the Children began in 1994 when we played an instrumental role in formulating IKEA’s code of conduct, The IKEA Way on Preventing Child Labour. The IKEA foundation has helped grant £45 million to support and create awareness for the work done by Save the children. Without these donations and support from other businesses, it will stop them from carrying out the work classified as charity. This is because most of the money that Save the children operate with comes from donations. They wouldn’t be as successful as they are now if they were trying to make an impact by themselves. If the partners decided to stop working with Save the children, the charity wouldn’t be able to continue as they won’t be receiving money needed to carry out the jobs and meet their aims and objectives.
Tesla Motors
In addition to, external stakeholders e.g. customers are the most important ones for Tesla Motors because they allow Tesla Motors to run their business. This is done by every time a customer purchases an item from Tesla, the business will gain profit and the price may increase for that specific item. It will impact Tesla as a business if this happens because they will up rise the amount of goods they get from the suppliers as of the increase in demand. Customers will always want low prices but with good quality goods and not things that will break instantly. If they buy products from Tesla and are satisfied by what they have been given, they will increase the amount of customers Tesla gets by spreading it about to others. This will result in Tesla gaining profit and overall their success will increase.
The internal stakeholders include employees. Employees are employed for the purpose of working to obtain money. Their purpose is to make the company as much money as possible and to make sure they deliver exceptional service to the customers. Tesla have employed over 46,000 people to work for Tesla and they can influence how successful Tesla is. They can also get things to change if they disagree with factors such as the amount they get paid. Tesla think that their customers are the most important which means that the employees have to provide the best service they can. To ensure this happens, Tesla have to treat the employees fairly and make sure they remain positive and happy throughout the working day because with the employees feeling negative they’ll get less jobs done and feel demotivated.
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