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, 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...