Contrasting Two Business Organisations

Topics: Limited company, Stock market, Business Pages: 2 (700 words) Published: March 6, 2013
Contrast the ownership and purposes of two of the businesses used in P1. The two businesses chosen must have different ownership and purposes.

HSBC and my local newsagent are businesses with two different types of ownership and purposes. HSBC is a bank which is opened to all the public, all the public are entitled to use these premises only if they have a valid bank account. This is called being a public limited company. HSBC’s purposes are to help people manage their money as well as insurance for e.g. cars, their homes, business, to increase profits.

The newsagent is a LTD which makes profit using its customers and gaining customers through cheap product prices. HSBC is surviving the recession because it’s a global bank and from this it has an advantage to how many customers actually use the bank. Bigger companies normally have the chance to survive in a recession because of the popularity and so small business businesses like a newsagent sole trader has less likely the chances of survival because it wouldn’t be well known and makes little profit on what it sells.

On the other hand, HSBC makes its profit using their credit cards which they hand out to people using some kind of rates at which the customers need to pay back after they have used the card to buy something. The similarity that both have are in most circumstances they deal with their customers face to face.

The differences are that a newsagent would have one way of dealing with their customers and that is face to face, elsewhere, HSBC would have many different ways of dealing with their customers e.g. face to face, on the phone, via email etc... HSBC has 8,000 employees due to being a global business and having many branches whereas the newsagent has only 7-8 employees as they only run the one shop. HSBC has 210000 shareholders so if one decides to sell out there will be a discussion to if it’s possible and to if they should sell out, however, a newsagent has only the one shareholder...
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