Brief Description of the Assignment Essay
The organisation that I have chosen to base my assignment on is Asda. The reason why I chose Asda was because my parents do their shopping from Asda, so if I need some information I can easily go there with them. The aim of this company is to make profit. Also, another reason why I chose Asda is because it is a well-known company. Asda provides products in the form of goods and services. It sells all sorts of products such as clothing, home, leisure and foods, which are frozen, tines and refrigerate. It is well known for its cheap, fresh and good quality fruit.
It also sells alcohol, sweets, cigarettes, newspapers and magazines. Asda usually has good promotions on their products. That way they sell more and at the same time they satisfy their customers too. Asda is said to be Britons best value retailers, it became part of the Wal-Mart family in June 1999. Asda was formed by a group of farmers from Yorkshire and now has 259 stores and 19 depots across the UK. It employs people and they have a well-deserved reputation for being the best and the friendliest in the industry.
Firstly, I am going to describe
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After completing all that, I will evaluate how important the organisational structure, business culture, management style and ICT are in achieving its objectives. Finally, I shall give a clear explanation of how the production process and quality assurance/control system employed by the business, helps it to add value to its product or services. Also, I will evaluate an alternative approach to quality control or quality assurance and the effect it could have on the functions of Asda and how it achieves its objectives.
Asda is a Public Limited Company, which has limited liabilities. It can offer its share for sale on the stock market in order to raise finance. Public limited company’s has its shares available for any one to purchase on a stock exchange. In order to become a public limited company a company needs to have i?? 50,000 worth of its shares purchased and a quarter of them must be fully paid up. That is to say, their owners must have paid to the company the fully asking price. PLC tend to be ‘the big league’ or first division of business companies.
‘Money makes money’ and many public companies like Asda take the form of multiples companies with many branches, stores or outlets. The trading edge of the larger PLC’s derives from the capital and human resources skills they command. A company like Asda can pump millions of pounds into research and development and sometimes come up with a world-beating product. Asda originally is an American company by Wal-Mart. As Asda is a company with limited liabilities, it is a type of business ownership, which combines several features of corporation and partnership structures.
What are the advantages and disadvantages of this type of ownership? The advantages of Asda being a public limited company is that it has limited liability of share holders. This means that the shareholders only lose the value of the share, they don’t lose their personal assets. Also, it is easier to raise large amounts of capital to extend. This is possible because there are so many people that have shares in businesses. People such as business workers, investors, they could be either male or female.
The shares are freely transferable on the stock exchange and it is also easier to borrow money from the banks as well. E. g. you could always take a loan out. The disadvantage of Asda being a public limited company is that the whole organisation can become very large and impersonal meaning, people may not feel that they belong to the organisation, because so many people become involved in the business. Once the organisation becomes quiet large, it can be very difficult to manage. This is because the shareholders may be doing some kind of fraud and taking other members money.
Shares can be easily brought on the stock exchange, so there is a risk of someone overtaking if their bid is higher. If this happens, then the person that bids higher is buying al the shares, leaving the other bidders with nothing to buy. They are left angry, and they unfortunately can’t afford the shares but where interested in buying one. As the organisation that I have chosen has limited liabilities, it means that the business is a separate entity to the owner. The owner is not personally responsible for the debts of the business. Owners may lose value of shares in the business.