Investigating a Small Local Business
The aims and objectives of News & Chews are not the same as those of Tesco’s as they are two different type of business. One is a small local shop ideal for cigarettes, magazines and chocolates and the other is a global success with ranges of food and economy prices. News & Chews need to make a profit to survive which is both of their aims so they are only surviving as they are bringing in profit. The owner of the shop, Ravinda Patel has overrun the business for sixteen years so he must bring in enough profit a year to survive. Tesco’s is a business that wants to make profits so they can pay shareholders and expand globally.
They also donate to charity, which shows they care for the area they are in which makes people want to buy groceries from that store. Tesco’s also need to beat competition which in my opinion is another aim for News & Chews, i. e. if there are five local shops in competition to Ravinda’s he need to be cheap, friendly and near to their customers, as the customer needs to be as near to a shop as possible. The activities that News
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The ownership in News & Chews is a partnership, as Ravinda owns the shop with his brother, Sanjip. He has owned co-owned the shop for sixteen years and is very financially aware of how much his profits have to be each month. He is not at the point of his ownership where he is struggling as he told me that when he started the business with his brother he had a very low income but is now happy that he stuck with the ownership structure. He told me that his father was a sole trader and he really struggled each month as he was in a lot of debt.
The Patel family home was taken away from his father and they had to move. So Ravinda says he is happy that he went into a partnership, as he is not fully liable for debt or failure. Being in a partnership means a group of individuals working together in business with the aim of making a profit. Ravinda has achieved the definition of a partnership and so he is seen as a recognised businessman. The location is set up in a good place as it is opposite a school bus stand and is on one of the main roads in Canning Town. Ravinda also has another successful shop, which his brother runs in Essex.
They chose to set up a business away from each other so they would not be taking each other’s customers away. When I asked Ravinda why he chose this area to open up a shop in he said, “It has good potential of doing business in this area” I think he said this because there are a lot of people who live in the Canning Town area. To reach customers he also has a website which people can ask he if could get them a special type of magazine or new products. He said the location he chose to set up this business was quite expensive and drained his bank account for the first year but now has enough profit to lease the rent.
A Company has shareholders when they need a lot of people to overrun the business, as different aspects of it need running by different people. Tesco’s is a Plc (public limited company) so appeal to a much brooder range of people. Partnership: Being in a partnership earns you a big cut of the company’s profit. It’s not as much as the board of directors at Tescos but more than the shareholders. Par4tners in a business have to invest a lot of capital with the chance of no money returning. Comparing Activities The basic activity for both Tescos and News & Chews is that they are in the tertiary sector i.
e. they both sell products. They also both specialise in client and Retail services. The only difference is Tescos also bake and manufacture this means they are in the secondary sector as well. This is the only main difference in activities except the scale of the business but that’s nothing to do with activities. When I asked Ravinda if he would ever open up a shop in baking or manufacturing he only said “no”. I think he said that because you need so much more equipment and so much more staff and time. There is also a big risk as you may cause someone to get ill and then get sued.
Comparing Location Tescos is a global success. News & Chews is not. This is all down to expansion and hard work. The founder of Tescos was Sir Jack Cohen he found it in 1924 it has grown over the years and developed to consumers standards and responding to new development becoming Britain’s leading food retailer. If Ravinda wanted to become a global success he would need to follow the footsteps of Sir Jack Cohen. They have expanded and moved across to different countries including Hungary, Poland, Taiwan, and many more countries.
Tescos always set up a store near transport or they create their transport i. e. a BT1 and BT2 bus in Beckton. Unlike News & Chews Tescos does not need to be near consumers as they attract them. They are not near consumers because they need a lot of square feet, which would cost a lot in suburban areas. News & Chews: Improving the business For News & Chews to become more successful they’d need to produce more products they are cheap but satisfactory. They’d also have to expand and add new products and go into other sectors i. e. secondary sector-Baking and manufacturing.
Ravinda would also have to employ more staff so that he would not get stressed. He would need to set some aims and apply himself to them, as he hasn’t got any at the moment. He could also buy existing shops and put the name News & Chews on it. He may also need to get an image for his business like the Tesco logo, he could also donate money to charity which would show that he cares for the people he sells to. Ravinda is at this moment planning to make his business bigger by adding another floor of groceries above the Balaam Street shop.