Firstly I will be analysing Tesco, a global grocer and general merchandise retailer. Tesco has a massive 5380 store across the globe; located in Europe, north and South America and scattered across Asia. It is by far a top contender in the businesses ranks. Tesco's belong to the tertiary sector as it does not make products but they provide a service. Even though it is a enormous company, its headquarters is based in Chesnutt, United Kingdom, and is run by chairmen David Reid and Philip Clarke. Tesco is a Public limited company, which means it is owned by thousands of people who have bought shares and invested in it and is run by a board of directors, if a sole trader or partnership was to have ownership it would be extremely hard to raise the funds needed to run it. This is down to the fact of Tesco’s mammoth size. Being a PLC company makes it more appealing to potential share buyers as they have the luxury of limited liability, limited liability means that if the company goes bankrupt the shareholders only lose what they have invested in to the business, the business is then held accountable for all its debts and will be liquated from the assets left in the business. In conclusion there are many advantages to being Public limited company like lower corporation tax and limited liability for its shareholders.
What the purpose of Tesco? Well, the purpose statement found on the Tesco website says; “Understanding people – customers, colleagues, communities – and what matters to them, and then trying to make those things better, is at the heart of Tesco.” Tesco go on to boast. But the sole purpose of any business (including Tesco) is turning a profit for its shareholders and to invest. On the other hand one could argue that their purpose is also to provide customers with all their domestic buying needs under one roof, whether it’s buying broccoli or getting your Childs first pair of school shoes. Tesco provides it.
Chamberlayne leisure centres name was given to as it was built on the land that formally belonged to the chamberlain family. The Chamberlain family harvested apples on this land for generations’ right up to 1924 when it was donated by the family to the local community. A massive advantage to the land being donated by a private party is that the government don’t have to pay for it, or to this day pay to use that land. Chamberlain leisure centre is a public organisation which means it is owned by the government, Southampton city council to be specific and the government employee Active nation to run the leisure centre. Active nation are a charity orientated organisation so any profits go straight back into the business. The main purpose of the of the leisure centre is to provide the community with facility’s such as a fitness suit, an indoor hall so people can practice different sports, child care and even to hire out meeting rooms. The leisure centre is costly to run, maintenance, paying staff, bills etc. So hiring out rooms for events such as birthdays and meetings is a good way to earn extra revenue to keep overheads down. In conclusion its best to have a leisure centre under control by government as its sole purpose is to make money and invest it back into the business; it’s to provide a service to the people.
In the following report I will be examining and looking at chamberlain leisure centre and the effects it that would follow if they were to change ownership from a government run to a private limited company. Firstly if Chamberlayne leisure centre were to change from a government run organisation to a private limited company the leisure centre would immediately lose funding from the government and tax payers, meaning they will have to find…