In this assignment I shall compare two businesses. The two businesses I’ve decided to compare are Asda and New Driver. They are very different, but are also similar in some ways. Both are in the retail section of the tertiary sector of the economy. They’re both located in Bournemouth, Asda is at St. Pauls and New Driver at Moor Road. It’s not surprising that these businesses have been chosen because they represent different and contrasting aspects of the growth areas of Bournemouth. Most people in Bournemouth work with the tertiary sector, and a large population requires many retail outlets to provide for them.
Both of these businesses are in the sector of tertiary but they are not both shops. Asda is a shop whereas New Driver offers a Service. Asda sells a whole range of goods and services from groceries to electrical appliances including Food, drink, clothes, beauty products, medicine, books, travel and information. New Driver offers a range of driving lessons from normal driving licences to advanced instructor courses. This is a table of what Asda ; New Driver had in mind when they were starting their business. New driver didn’t need to consider all of these factors because they are not a huge company and they couldn’t afford all of it.
However Asda considered most of them except for staff quality and skills. Because they are so huge they have no personal concern for any of their staff. One business is a PLC (Public Limited Company) and the other is a partnership. Asda is a PLC because it is owned by shareholders. It’s the largest sort of business and is allowed to invite members of the public to become shareholders. The shareholders have limited liability. New driver is a partnership because two or more partners own it. Its partners have unlimited liability. A key factor is business size.
A big business like Asda or Wal-Mart can afford to employ experts because they receive money from investors. A small business like New Driver can only afford necessary equipment or materials because they are restricted to how much they can borrow. Another key factor is liability. This is the difference between unlimited liability and limited liability. Asda has limited liability, which is having responsibility for debts limited to the amount invested. New Driver has unlimited liability which is being responsible for an unlimited amount of business debt. The ownership matches the size of the business.
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