Contrasting Differences Between “the Cooperative” and “Hsbc Plc”

Topics: Limited company, Corporation, Cooperative Pages: 6 (2046 words) Published: December 11, 2010
Business Environment - Internal

The purpose of this essay is to explain and analyze contrasting differences between “The Cooperative” and “HSBC plc”, and to explain its stakeholders. At the end I will explain and evaluate their mission aims, objectives and impact of their companies.

The simplest form of ownership and possibly the most common too, is sole-trading, which is owned by one individual. Possibly this individual opened his company by using his savings or quite commonly by means of a bank loan. He is capable of running every aspect of his business and is solely responsible for is business. Most multinationals generating billions of pounds per year of our days started as sole-trading companies.

Partnerships are the next evolutionary step. They are owned by two or more individuals, usually specialists who join venture. As sole-trading all parties contribute privately towards the business’ capital through savings or bank loans, usually profits are shared depending on how much capital was invested by each party. There can be partners who usually do not take part in the running of the company called sleeping or dormant partners they mainly invest and share the profits.

Private Limited Companies (Ltd) are companies whose ownership is divided into equal parts called shares, who own these shares in turn are called shareholder, only by consent of all shareholders can shares be sold to a particular buyer and usually who owns more shares ultimately has majority of the decision making. This type of company is considered to be an entity of its own, the owners only run it.

Public Limited Companies (Plc) follow the same principle has Ltd companies but they must first of all, raise sufficient capital, minimum of £50,000.00 by selling its shares in the stock market .A minimum of two directors, two members and a qualified secretary are needed to trade as a Plc and its directors must provide statutory documentation to the companies house.

Cooperative Companies are raised through an association between individuals united usually by socio-economical factors. Capital is raised privately and no matter how much one shareholder invests in contrast with others, shareholders he or she has only one vote, meaning this every shareholder has the same power. Democracy is the cornerstone of this type of company. Shared responsibilities towards decision planning policy making and aims of this company are done by every member, capital is owned in common property of the cooperative. Main advantages are equally shared ownership, equally shared profits depending on how much invested social and economic awareness services and products, environmental awareness. Main disadvantages can be financial control, management effectiveness poor planning, `and longer decision making less trust in the cooperative ideology.

Franchises are defined as trading under the name of a third party company. The franchiser gives a license to the franchisee to trade under its name. Its main characteristic is how the business is ran, the franchisee owns and operates the business but the franchiser maintains control over the products or services sold, its marketing, quality and standards of the entire business.

The two companies I will talking will be The Cooperative which falls into the cooperative type of company and HSBC Holdings which is under the public limited company category.

HSBC Holdings exist to provide financial services worldwide. The Co-operative are democratically run by members to meet their common needs and aspirations Their main reason is not chasing profits like other types of ownership businesses, but the ability to steer their products and services in a more responsible direction.

The Cooperative provides food and retail products, financial, funeral care, legal, pharmacy and travel services. HSBC Holdings provide a range of financial services, personal, commercial, corporate investment and private banking customers.


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