Tesco PLC is a Multinational British Retail and Food Company (Coursework Sample)

Tesco PLC is a Multinational British Retail and Food Company

Business Principles
Q1
* Using research on your chosen organization, identify its type (e.g., partnership, public limited company, private limited company, cooperative, etc.) and explain the benefits and limitations of such an organizational type on its performance.
Tesco PLC is a multinational British retail and food company with head office in Hertfordshire, UK. Tesco is not just among the most well-known brands in the UK, yet it is also the fifteenth most valued retail company worldwide as of 2016. (Bedford, 2022). Tesco, along with Morrisons, Sainsbury's, and Asda, is the leading grocery retailer in the UK, with a share of the market of more than 25%. Tesco is a public limited company.
Advantages of a public limited company
Continuity of Operations
A public limited company will remain to function provided that a board member and management staffs assume the firm's leadership. In other businesses, the corporate entity stops to exist after the original members are no longer present or if the business's ownership structure has changed (FinancialWeb, no date).
Finance Availability
A public limited corporation may readily receive capital to run its business. Banks and other financial institutions are more inclined to lend to this corporation than to smaller business organizations.
Disadvantages of Public Limited Company
Expensive
A PLC is often a sophisticated piece of equipment, to begin with. The company must engage an investment banker as well as a securities lawyer. The banker then sells the first shares to the general public. The costs of starting a public firm and steering an Initial Public Offering may sometimes reach hundreds of thousands of dollars.
Greedy shareholders
Those who acquire shares have no special stake in the corporation other than that it produces fast cash. Conversely, most businesses are concerned in developing a lasting growth policy that requires tolerance and preparation. It is rare for many stockholders to perceive it in this light.
* Identify two different types of organizations from that identified in (a) above and compare and contrast their purposes to your chosen organization.
The stockholders own a public limited company. Shareholders can range between two or a handful of owners who own 100% of the firm to millions of stockholders scattered across many nations. Because it is impracticable for all shareholders to manage and operate the business daily in these organizations, they normally designate a board of directors to do so on their behalf. In contrast, a cooperative is managed by its members. Anyone can join by purchasing a share, and each member has only one vote regardless of the number of shares they own. Shareholders can vote on corporate policies and elect a board of directors. Workers in the company organization are members or shareholders in worker cooperatives.
A public limited corporation is registered on a stock exchange and whose shares are openly traded. Alternatively, a private limited company is not registered or traded on a stock market. It is exclusively owned by its members (LegalDocs, 2019).
* Research and identify two contrasting legal structures of businesses. Outline two advantages and disadvantages of each of the identified legal structures.
Sole proprietorship
A sole proprietorship is a form of unincorporated business created and operated by a single individual. A single owner may profit differently from a partnership because a single owner operates the company. In terms of tax policy, the proprietor of this kind of corporate organization is taxed just one time instead of other firms. The proprietor only pays individual corporate tax on earnings (Dungan, 2017). It is quite simple to start this business because many regulatory limitations do not apply to the method.
The business owner may face the following challenges: Being the only decision-maker has both advantages and disadvantages. If the issues are complex, it may be good to consult with like-minded individuals whose primary interest is to see the business succeed.
Limited Funds: One drawback of not having other investors or partners in a company is that it cannot acquire significant funds to start and manage the business. Even though the firm concept is realistic and seems to be gainful, formulating a substantial amount of cash to get the company started may be hard if further finance is not accessible (Dungan, 2017).
Partnership
It is a group of two or more individuals who work collectively to run a corporate and generate a profit. A partnership agreement is necessary when two or more people are engaged, although a partnership can be formed with minimum formality. On the other hand, a partnership arrangement lays out the circumstances and organization responsibilities. A partner must file a yearly report with the IRS to document gains and losses from operations; nevertheless, each member is required to pay taxes reliant on their share of the profit or loss. The liability of stockholders is less constrained. Because the business comprises varied individuals coming together and sharing thoughts. It is always simple to form since the members can choose to begin the firm through verbal agreements or written agreements (Hurt, 2018).
Registration with the companies is not always needed, but it is a simple process. The partnership corporate structure is also involved in sharing losses and obligations within the organization. For instance, establishing a partnership company comes with its limits. Because the firm lacks a unique legal framework, the partners are individually accountable for any obligations or losses. Furthermore, since every partner must be asked, this business structure faces the challenge of slow decision-making (Hurt, 2018).
Q2
* Using relevant tools or models provides a detailed assessment of your organization’s external environment.
PESTLE analysis provides a framework for management to examine the macroenvironment in which a firm works to make strategic choices more effectively. It is also critical to assist the company in reviewing its position in the business and understanding market growth and decline, opportunity, and business operations direction (Adamyk, 2019). The application of this approach will assist Tesco in avoiding unjustified assumptions and effectively adapting to the reality of its macroenvironment.
Political
Tesco operates shops in 10 countries. As a consequence, the political and legal conditions in these countries, as well as the European Union, have a significant effect on its performance. As a result of the international financial crisis, governments are encouraging merchants to create a varied variety of job opportunities for the resident workers. Retail is a very labor-intensive sector (Adamyk, 2019). As a consequence, Tesco creates employment, increasing demand for its services and goods. Such policies may have a negative influence on the corporation's business income from particular items offered.