Report on Contrasting Businesses

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The sue Ryder have many retail store in UK. It sell the product and use the profit for supporting the patient who need help. (Gendron, 2015).

Liability status

Sue Ryder is mainly run on the donation money. If there is any situation occurred for closing the business, the asset will be transfer to another non – profitable organization[b].

P2- Stakeholders of M&S and Sue Ryder

Task 1

See the attached PowerPoint file[c]

Task 2

Shareholders report:

Introduction:

Every shareholders want to maximizing their own benefit, they also try to influence the aim and objective to secure their interest .so, the policy taken by the different shareholders are different due to different interest of the shareholders (Kruse, 2013)..

The shareholders of marks and spencer:

Owner:

Owner of the business try to influence the strategic aims and objectives of the organizations for wealth maximization. When the value of firm increase, it will increase the share price of the .owners want dividend from the business. The instructional investors are more powerful, the influence the management team to set objective that increase the value of the firm. Owner’s wants invest high returnable risky project (Gendron, 2015).

Creditors:

Creditors are external financers of the organization. They want the interest amount timely. Influence the company to set objective that ensure their return for giving loan. The creditors gives restrictions to invest risky project and give dividend to the investors.

Management:

Management is mainly take all the decision for the operations. The management always try to incase their remuneration. Sometimes they take big bath policy to increase the incentive. They work based on short term goal to increase the incentives (Dunning, 2010.

Government:

Government collect tax from the business (Lawson, 2013)... Government impose different regulations to ensure the financial performance and financial position are shown properly. As a result, the listed company must do audit for each financial year.

The shareholders of the sue Ryder:

Owner:

As it is a non-profitable organization, owner main purpose is to increase the quality of the service as well as increase the value of the organization to give service to more needy people (Lasher, 2015).. Find out different sources of donations and expand the business operation to collect more profit

Management:

Management try to ensure their remuneration. But as it is service center, there are less chance to dominate. But in the business center, management takes the policy that will increase their incentive.

Government:

Government don’t collect tax from non- profitable organization. Government give donation to the non-profitable organization. But, mandatory audit have to do to ensure the funds are used properly.

Conclusion:

Different regulation by accounting board are impose to restrict policy that are harmful for the business. IAS, IFRS are impose different standard to regulate the business.

Task 4:

The evaluation of shareholders of marks and spencer

Creditors give condition that company can’t invest in the risky project and provide less dividend to the owner to ensure their interest. Government impose regulation to maintain the business. The tax effect the business profit. Management have the great influence to the organization. The management take main policy for the organization sometime it is difficult to manage them (Hillstrom, 2012). The management try to invest in low risky project and set short term goal for the organization that will increase their remuneration but not profit. The M&S give ownership to the management to business by share based payment, incentive to take high profitable to risky project and mandatory share ownership to the directors by a certain %. The owner and management are work together. The common interest is to increase the value of the firm as the management have ownership in the busiess.but the management main price is to increase the incentive and remuneration which is conflict with the owner. The difference can be solved by independent monitor of the management team, incentive to take long term project, give ownership to the business and ensure good corporate coherence to the organization.

P3-Task1- Leaflet

Task: 1

Leaflet Preparation

Marks and Spencer is a profit based and Sue Ryder is a non-profit organization. Both the organizations launched their operations with different purposes. The organizatinations are organized by division, function, structure . With a leaflet, the idea is given below:

Marks and Spencer

How Marks & Spencer Organized

Objective:

The Marks and Spencer is to become leading organization in the world. It is expending the business in france, Canada to fillfull the prupose.In 1884. Marks and Spencer is opened a stores which is run by the partnership of the Marks and Spencer. In 1973-1975, Marks and Spencer open its operation in France and Canada. Thus Marks and Spencer is increasing its retail stores in the different countries. They are few level of management between administrative and employee by the Marks and Spencer organization structure (Lawson, 2013).

Organization structure:

CEO take the major decision M&S and monitoring the department works. Each department have mangers to monitor the whole department work. (Lasher, 2015).Assistent manager to help the managers. There are also foreman , saleperson and workers to run the operations

The following is the picture of the M&S structure:

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