The company is divided up into equal

The two businesses
I will be discussing are Sainsbury’s
and Oxfam. I will mention their
different ways around to owning a business and what their personal business
objectives are.


Introduction to Sainsbury’s

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Sainsbury’s was founded by John James and Mary
Ann Sainsbury in 1869 and is one of the largest operators of supermarkets in
the UK. It is the second largest supermarket chain in the UK, serving over 11
million customers a week. There are about 1,411 Sainsbury’s stores within the
UK, the largest of which stock more than 23,000 products, of which 40 percent
of the items carry the Sainsbury’s brand ‘taste the difference’. Sainsbury’s
‘taste the difference’ has over 1,141 products. Sainsbury’s belongs in the private sector and is a national public limited company. This
is a type of company that offers limited liability, or legal protection for its
shareholders but that places certain restrictions on its ownership. They are
owned and controlled by people and not the government.

Liability and ownership

Sainsbury has limited liability. A limited company is a ‘type of company
which when set-up, allows an entrepreneur to keep their own assets and finances
separate from the business itself.’ This means that people who have invested in
the business (such as shareholders) are in charge of any company debts up to
the amount that they have invested and no more, so if the company gets bankrupt
then the shareholders are only liable for the amount that they have invested
into the company and their personal belongings will remain unaffected. It is
therefore a good way for a business to get investment without risk to a
personal wealth. The ownership of a limited company is divided up into equal
parts called shares. Sainsbury’s

An advantage of
limited liability companies is that they are only taxed on their earnings and
as such are not subject to the tax rates placed on sole traders or
partnerships.  In
the case of private limited companies, the directors are also usually the main
shareholders of the company. Hence both the ownership and control of the
business remain in their hands. Decisions can be made easily, with little
hassle, allowing for a more successful business management platform. Being a
private limited company means Sainsbury is owned by separate shareholders who initially
fund the company.



Sainsbury’s main purpose is to make profit and to supply products and services at a fair price. Their priority is
to survive, grow and gain more customers by improving the quality of their
foods and adjusting prices. They also aim to build on and stretch the lead in
food. Customers are vital for the survival of a business. Without anyone
purchasing the goods and services a business cannot survive. It is vital for a
business to satisfy their customer’s needs. Market research is very important
to find out exactly what customer needs are. Sainsbury’s is strong on promoting
its goods and services to customers. Sainsbury’s usually use the ‘buy one get
one free’ strategy, which allows customers to purchase 2 of the selected items
for the price of one. This has a positive effect on customer satisfaction as it
helps them to save money, but also helps Sainsbury gain profit. Sainsbury’s
also sells products bought from other companies and suppliers, for example Coca
Cola and Cadbury.


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