Unit 1: The Business Environment
Task 1: P1 – Here I will describe the type of business, purpose and ownership of two contrasting businesses. HSBC – The for profit business I have chosen is HSBC. It was founded in 1865 in Hong Kong. They are now based in Canary Wharf, London. HSBC offer various different financial services all over the globe. These include securities, multinational banking, loans and holdings. They are in the service sector. Profit in 2013: £10.4 billion
Employees: 254,066 worldwide
London Stock Exchange: 618.40 (as of 02/10/2014)
Oxfam – The not for profit business I have chosen is Oxfam. It was founded in 1942, in Oxford, England. Oxfam is also in the service sector, offering relief across the Globe. This means they are an international company. Their mission statement is as follows: ‘Working with thousands of local partner organizations, we work with people living in poverty striving to exercise their human rights, assert their dignity as full citizens and take control of their lives’ Employees: 2000 in the UK
Oxfam is a private company limited by guarantee. This is a rare sort of corporation, used by organisations who may need legal representation whilst still acting in the interest of the public. Instead of shareholders, companies limited by guarantee have members who act as guarantors instead of shareholders. These people will be liable for any debts if the company winds up. HSBC on the other hand is a Public Limited company. This means they are traded on the stock exchange and can be purchased by anyone. The advantage of this is that it can raise capital. Additionally, as a limited liability company, if they were to get into financial trouble, their personal would be separate from the business and not held responsible for any debts. A disadvantage is that they must report the state of their finances to the public, so their worth can be evaluated by potential investors. They are also more strictly regulated than Private Limited Companies.
Task 2: P2 – Describe the different stakeholders who influence the purpose of two contrasting organisations. Both organisations have internal and external stakeholders. In business, a stakeholder can be described as someone with an interest in a business being successful, whether that’s for financial gain or a different reason. HSBC and Oxfam will both have similar types of stake holders, as they are both businesses and aim to prosper, therefore they will share similar structure. Internal Stakeholders
CEO – A CEO otherwise know as Chief Executive Officer is usually recognised as the most senior figure and leader of an organisation. CEO’S ultimately have the biggest influence on the purpose of the business as they are in control. Despite this, they must still act with in the interest of the business and its other stake holders. If they do not then other members of the board may come together and choose to terminate them as CEO of the company. CEO’s must know the business they head inside out. They are responsible for creating an organisations strategy and then communicating that to the public. Then they must put this plan in to action and make sure it is enforced.
HSBC’S current Chief Executive Officer is Stuart Gulliver
Born on the 9th of March 1959, Stuart Gulliver has been moving up the ranks at HSBC since the early eighties. His work has seen him travel all over the globe and based in locations such as London, Hong Kong, Tokyo, Kuala Lumpur and the United Arab Emirates. After leading HSBC through the Asian financial crisis in the nineteen nineties, at the turn of the millennium he was then appointed Group General Manager. The next decade saw him move back to London, and then eventually be appointed as group CEO in 2010.
Oxfam’s current CEO is Mark Goldring. He was born in 1957. He lives in Richmond, Surrey. Oxfam is not the fist company or organisation Goldring has been Chief Executive Officer of. Prior to Oxfam, he was in charge...
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