Business Assessment
Unit 1: Exploring Business
Maisie Harris
18/01/2018
Summary
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In this report I compared a non-profitable and a profitable business. I chose Unicef uk, as my non-profitable business and BP as my profitable business. Both of these businesses are completely different, which I thought would be interesting to compare. Both of these businesses have been really successful, which allows them to be a good comparison, as they have both have achieved good outcomes in completely different ways.
The reason I did this report was because, my friend and I want to start a business, and we are not sure if we want it to be a profit or non-profit business.
After doing my research I personally found Unicef uk, was a much better business because, they had more statistics, and had a great outcome due to their high number of sponsorships and they also have a significant increase in the ambassadors which have joined, who are bringing in a new audience from all different age groups. I have chosen to do a non-profitable business because, I wanted to make awareness of an issue that i think is important, and try to gain sponsors from a number of different business, which would be interesting to talk to a variety of businesses.
Table of Contents
TOC h u z Non-profitable business PAGEREF _936lv1u7nuc h 4
Explain how the businesses are influenced by stakeholders. PAGEREF _gsn52xajxvik h 4
Explore the organisation structures, aims and objectives of the business. PAGEREF _fukcgff4nq7d h 6
Profitable business PAGEREF _lpdafio6dqy8 h 8
Explain how the businesses are influenced by stakeholders. PAGEREF _pvdmois5xndh h 8
Explore the organisation structures, aims and objectives of the business. PAGEREF _snc36fl1iewj h 10
The two businesses I will be contrasting are, Unicef UK for my non-profitable business and my profitable business will be BP. I chose these two businesses because, they have have different types of ownership and liability, and they focus on two completely different aspects. Both of these business have made a huge impact, on the economical side of the world, which has lead them to become extremely popular.
Non-profitable business
The non profitable business I will be focusing on is Unicef UK. The United Kingdom Committee is one of 36 UNICEF National Committees based in industrialised countries. The National Committees raise funds for the organisation’s worldwide emergency and development work. The formation of Unicef UK was in 1956, and the head, of this country is Mike Penrose with the headquarters in London.
Features of the business
Unicef uk, is a non-for-profit company, it also had limited liability because they are a charity because; it does not rely on the UN, it relies on donations. They are a Quaternary sector, as they are communicating to thousands of children, and to many companies to get as many donations as they can. Unicef UK has a national scope because; it helps raise money to a variety of different situations. They are a large business as they have around 300 employees.
Explain how the businesses are influenced by stakeholders.
Unicef UK, have several corporate partners who are companies, that are donating money, and promoting their business. Children are an important stakeholder for business – as consumers, family members of employees, young workers, and as future business leaders and employees.
Unicef’s life-saving work wouldn’t be possible without the extraordinary generosity of our corporate partners. Unicef is supported entirely by voluntary contributions, and donations from our corporate partners makes a significant contribution to that work. Unicef develop partnerships with companies across a wide range of industries, delivering clear business benefits for them, and vital funds for work across the world.
Andrex
The Andrex® Unicef corporate organization, propelled in September 2014, is enabling families and youngsters about sanitation. Together we’re attempting to give clean water and sanitation at schools in South Africa and enable groups to assemble sheltered, clean toilets in Angola. The organization has so far engaged more than 240,000 youngsters and families in Angola to have a perfect, safe latrine and helped prepare more than 98,000 kids in schools in South Africa on handwashing with cleanser, tooth brushing and sanitation rehearses.
‘For every pack of Andrex® Classic Clean 9 roll, Andrex® Classic Clean 16 roll, Andrex® Supreme Quilts 9 roll or Andrex® Supreme Quilts 16 roll purchased in Ocado between 6 September 2017 and 28 November 2017, 25p will be donated to Unicef.’
Ethical Tea Partnership
In September 2014, Unicef and the Ethical Tea Partnership (ETP) joined together to form a groundbreaking collaboration to help protect and change the lives of children and young people living in tea communities in Assam.
The association unites every single key partner in the tea business – open and private associations and the production network – to handle kid misuse over the division. Through associate help and instruction the organization is attempting to achieve 25,000 young ladies and 10,000 group individuals more than three years to help shield kids from viciousness, mishandle and misuse including trafficking and risky migration.The organization is working with more than 350 tea groups crosswise over more than 100 bequests in three areas in Assam, to guarantee powerful and positive change for kids. This venture is fortifying tyke insurance frameworks with nearby and national government and engaging the tea business to help positive change.
IKEA
IKEA is the largest corporate donor to Unicef, having committed more than $180 million in both cash and in-kind donations to Unicef programmes to save and improve the lives of children and their families.The partnership between IKEA and Unicef is very exciting, with IKEA having a true commitment to social responsibility. They have joined with Unicef using their expertise to tackle issues like child labour.
Since the beginning of our partnership in 2003, the Soft Toy for Education campaign has raised €67 million, which has helped improve the educational opportunities of more than 11 million children in 46 countries. A small contribution can make a big difference to a lot of children. The donations help Unicef and Save the Children train teachers in child-friendly teaching methods, improve child protection systems, supply educational materials, and increase school attendance rates.
It is important for Unicef uk, to have a good relationship with their stakeholders because, they are a charity and their business runs on donations made by other companies. As Unicef uk is a non-for-profit business, the stakeholders create a huge part in the business, as it still needs to produce and maintain the numbers which the business is known for. Many business are often holding meetings, with all their stakeholders, to discuss how successful the business is going, and if there are any changes that could be made to make the business more successful. It is very important that the business and stakeholders, have a very good communication method because, this is the best way for them to talk about any problems that may have occurred, and any issues that the business have.
Explore the organisation structures, aims and objectives of the business.
An organisation structure is important for any growing company to provide guidance and clarity on specific human resources issues, such as managerial authority. Small-business owners should begin thinking about a formal structure early in the growth stage of their business.
Unicef uk is a small part of the larger business Unicef. It is important for Unicef uk to have a clear organisation structure because; fundraisers who are interested in helping out their business need to understand who is the best person in each section, to contact. As Unicef uk work on behalf of Unicef,it is a key advantage, for them to have a organisation structure because, they are going to run their business differently to the way that Unicef, run theirs. This shows other key influences interested in this non-for-profit business that their are running their business in the way which is going to best help them, improve to become a much stronger
For 70 years Unicef uk have been there for children in danger. Unicef was created in 1946 to help protect children after World War 2 and the United Nations Convention on the Rights of the Child is the basis of all of our work. Today they are still helping children in some of the world’s most dangerous places.
The mission statement (referenced in the appendices) is also vital for any business because.; it gives anyone interested in researching the business a key idea, on what the business is focusing on. Unicef uk, is a charity so it is extremely important that the researchers to understand what the charity aims to focus on, and how it is different from many other charities.
Unicef uk focuses on helping every child who is in danger around the world. It is a leading organisation, they ensure that children from all around the world are vaccinated, education and protected. They try to influence laws and policies to help protect children, they believe they are not going to stop to the world is a safe place for all the children.
The vision for Unicef uk, is also very similar to their mission statement but, a vision for a charity is the idea that some time in the future the charity will eventually reach its vision. This is a clear demonstration for the charity, to communicate with their ambassadors, stakeholders, donations made by people and different businesses. The vision statement for Unicef uk, is based on the idea, that children from all around the world will all be given the same opportunities and be given the correct education, recieve the right medical treatment that should be entitled to.
Profitable business
The profitable business I will be focused on is BP. BP is formally known as British Petroleum, it is a british oil and gas company. ‘It is one of the world’s seven oil and gas ;supermajors;,whose performance in 2012 made it the world’s sixth-largest oil and gas company, the sixth-largest energy company by market capitalization and the company with the world’s twelfth-largest revenue.’
Explain the features of the business
BP, is a profitable business, which means is focuses on the profits the business makes.It is a public limited company, BP also has a Quaternary sector because, the business focuses on the communications between the customers and other businesses. BP, has an international sector because, it is based worldwide, it also has 74,500 employees, making it a large business.
Explain how the businesses are influenced by stakeholders.
BP have a very strong relationship with their stakeholders, and it is important for BP to engage with their stakeholders, as they need to make sure that the communication between each of the stakeholders is still vital for the business to manage.
BP also have a different number of internal and external stakeholders. The internal stakeholders for BP are their partners; who deal with communications, meetings, surveys and group discussions. BP uses a range of internal communications channels to keep our employees informed about the context within which they work. These include town hall style meetings where employees hear directly from the executive team. We maintain regular communication with unions at many BP sites around the world.’
The external stakeholders are local communities, who focus on interviews, surveys and polls, and work with the media. Customers are another stakeholder who function the global customer satisfaction programme, they also use feedback channels via the website, advertising and marketing. The media deal with press conferences, press releases, interviews and surveys, and most importantly social media which has had a huge increase with young people over the last few years.
BP try to engage with their shareholders and analysts through their annual general meeting and other events. They try to communicate via roadshows, webcasts and one-to-one meetings. ‘In 2013, this included a presentation on BP Energy Outlook, an upstream exploration day and briefings on oil sands and our progress against safety enhancements recommended in the Bly Report.
Environmentalists work with BP, to make sure that they are sustainably using the earth’s resources; such as water which BP maintains and operates its drilling rigs. When a crisis arises, such as an oil spill, environmentalists are eager to understand the nuances of how the spill will affect the ecosystems and their sustainability for present and future generations.
BP must communicate effectively to members of its environmental partnership. BP must report incidents in a timely manner with accurate information.
TOC h u z
Wildlife experts are also one of BP stakeholders because, in a particular crisis such as an oil spill in waters BP must consider the wildlife that make the oceans their home or sustain themselves from the waters. “The BP Deepwater Horizon catastrophe in 2010 spilled 205.8 million gallons of oil and 225,000 tons of methane into the Gulf of Mexico. Approximately 25 percent of the oil was recovered, leaving more than 154 million gallons of oil at sea. In addition to the oil, nearly 2 million gallons of toxic dispersants were sprayed into the Gulfs waters. This did not actually reduce the amount of oil left in the ocean, but merely broke it into smaller particles, which may actually make the oil more toxic for some ocean life and ease its entry into the food chain.” The spillage that took place, was one of the worst spillages in the world, this had an effect on BP as a company because, they were trying to play out the situation, and put the blame on to someone else, due to the media and press constantly producing new stories.
BP also work with Local communities, they try and engage with local communities through public consultations, as well as regular meetings with community representatives. BP believe they’re relationships with communities are very important in their existing operations, as they may be present for many decades. They are equally important for major new projects, that may bring about changes in the local area, such as jobs and support for community development, but also increased road traffic, changes in landscapes and increased demand for freshwater. If BP are working in a specific area, there may be a lot of disruption, to roads, an increase in noise, and the area may be slower if many of the roads are closed. BP have also increased their work with NGOs, as this has helped them view their company and the work it does on a local, national, and global scale. Their work as a partnership, has opened new opportunities for BP which has increased their objects and aims, as they try to make their business more diverse.
Explore the organisation structures, aims and objectives of the business.
The organisation for BP is relatively similar to other business but, instead there is a section for north & south America, Europe, Asia, Africa, USA, S.E. Asia, Australia and S. America. All of these continents and countries, are split between three sections; BP EXP/PROD, BP mark/refining and BP chemical.
BP’s, new ideas and strategies are all decide from the board, this is a group of people who are working together to improve the company, and discuss any changes that could take place. The board is responsible for the overall conduct of BP as a business. The directors have duties under both UK company law and BP’s Articles of Association. The primary tasks of the board include:
Active consideration and direction of long-term strategy and approval of the annual plan.
Monitoring of BP’s performance against the strategy and plan.
Ensuring that the principal risks and uncertainties to BP are identified and that systems of risk management and control are in place.
Board and executive management succession.
These tasks are then explored between the board, and the company are meeting with new people to explore in different parts to make sure that BP are constantly improving the company to make sure that the tasks are completed.
The world’s type of vitality, petroleum products and renewables are ending up more rich and less expensive. Through new innovations, vitality will be created all the more effectively and in new courses, meeting the normal ascent sought after. What’s more, the world is working towards a lower carbon future. BP are advancing their technique to enable the business to be aggressive in a period when costs, strategy, innovation and client inclinations are evolving. Their key needs assistance us to convey warmth, light and versatility answers for an evolving world.
Referring to the appendices, the table gives a key glimpse into the facts that BP have produced at the end of 2016, the statistics given show how well BP did improve at the end of the year and also how they can improve, to show a difference throughout the year. The information presented,provides the values that BP are producing, with statistics supporting them, which gives an idea of how the business is assessing and valuing itself at the end of the year, as this can help it understand, whether the business had a successful year in terms of the profits, products sold and the number of sales.
At the olympic and paralympic games in 2008 BP worked closely alongside this organisation, this then led them on to becoming a partner of the London 2012 Games.The opportunity to work alongside, such a worldwide event gave BP, a new platform to work along, and this has helped them gain global success. Since working alongside of the olympics, BP have a large number of support from a number of well-known sporting events including, ‘The commonwealth games which took place in Glasgow 2014, The European games in Baku 2015 and, the World Athletic championship in 2015. This was a huge success globally for BP, as they were recognised around the world, for a different reason then the company is known for. They were also asked to support the London 2017 world para athletics championships, which took place last summer. BP have also become an international partner of the International Paralympic Committee, which is known as the IPC. As Well, as supporting the events, BP have also supported a number of the teams who take part in the events including; UK, US, Angola, Azerbaijan, Egypt, Georgia, Germany, Singapore, Trinidad and Tobago.
Referencing to the appendices, the business model produced by BP, shows a very diverse portfolio which has been balanced across businesses, resource types and geographies. BP have constantly had a upstream and downstream business, which has resulted in them establishing a strong trading capabilities, which can help to mitigate the effect of lower oil and gas prices, which is one of their main aims as a company. The geographic reach which is vital BP, has given them secure access in developing markets and identifying new resources, as well as diversifying exposure to geopolitical events.
BP have produced a business model, to allow them to be able to create a visual product, that they can adjust and improve which allows them to complete the product that they have virtually created, into a product in real life. BP are also constantly trying to find, develop and extract oil and gas because, the result in this is the idea that in the future the fossil fuels will eventually run out. This has an overall effect on the world because, the world would not function properly without energy. This is the reason why BP, have created new products to help them find new oil and gas which is a reliable source, that can be used across the world. BP have a significant amount of pressure on the business because, they’re customers are relying on them to produce a new product that gives the same results now but, also for the future.
The BP Statistical Review of World Energy provides high-quality objective and globally consistent data on world energy markets. Oil remained the world’s leading fuel, accounting for a third of global energy consumption. Oil gained global market share for the second year in a row, following 15 years of declines from 1999 to 2014.
The Dated Brent oil price averaged $43.73 per barrel in 2016, down from $52.39 per barrel in 2015 and its lowest (nominal) annual level since 2004.
Global oil consumption growth averaged 1.6 million barrels per day (Mb/d), or 1.6%, above its 10-year average (1.2%) for the second successive year. China (400,000 b/d) and India (330,000 b/d) provided the largest increments.
A relentless focus on safety, reliability and the systematic management of risk.
The quality execution of Bp’s projects, operations, drilling, and managing their reservoirs – the greatest source of value and returns that they have. Growing value through improving returns and cash flow. BP actively manage their portfolio, divesting where it makes sense, and pursue acquisitions where value can be created.
The capability of BP’s people, are motivated and equipped to take on the world’s great oil and gas challenges. They have a global workforce that is embracing digital technology to drive improved productivity in everything we do. The strategy of BP is expressed in a number of different ways, to prove that the company is sticking to aims and objectives so the business carries on, to be as successful as it can.
Assess the relationship and communication with stakeholders of two contrasting businesses, reflecting on evidence gathered.
Both businesses are focused on completely different areas, Unicef uk is a charity that focuses on helping to save children all around the world, that are troubled, un-educated or not living in a safe place. They are sponsored by lots of different businesses, who put on different events to help raise money. Unicef uk, also has a large number of well-earned ambassadors that are making awareness through social media, which over the past few years has helped charities become more noticable and, leaving a wide variety of audience interested in, donating and finding more information about the charity.
The stakeholders for Unicef uk, can include ambassadors who are passionate about a particular charity, and feel as a well-known person they can spread the message to thousands of people, on why it is important for them to make awareness for a particular charity.
Compared to many other charities, Unicef uk is lucky to receive the support and commitment from someone, who has been idolised for years and for many people they are so fond of everything that David Beckham, has done they feel that they should donate, and sponsor the charity that he is so passionate about. There are also many other ambassadors which for Unicef uk, are counting as their stakeholders because, they feel strongly towards a particular issue, and they want to contribute in any particular way they can to help the charity reach the visions that it sets out to do.
On the other hand, BP is a oil and gas company, which have stations all around the UK, and even in certain countries. They are a leading business, which is known by thousands of people, and they have reliable customers which are keeping the profits high in the business. The use of stakeholders is particular important because, BP want to work with groups or individuals who are interested and passionate about BP, and they feel that they should invest their time and money in to this business, to make sure that it is as strong, as the business could be and help make any changes that the BP may need to improve.
Non-governmental organizations (NGOs) are helping BP work on new projects, this has helped BP gain communication methods as, they are working with a complete new team of people and they are often consulting with relevant local and international NGOs, who can give them opportunities to provide specialized expertise on managing impacts. BP also engage with NGOs at a group level. Referring back to 2013, BP discussed biodiversity, climate change and energy policy, financial transparency, human rights and operating in sensitive areas in arranged meetings where BP and NGO’s got to express their new ideas that they have which can give both sides completed control over an idea, if they feel that it will make a wide range of difference to the business however;it can also help with new levels of promotion that BP may not have explored but, with help from a variety of new people who may have experience in this section, which could help and train new employees to keep up to level with the levels of new customers interested, and helping people finding out more information. About 90,000 consumers in more than 15 countries participated in BP’s global tracking research programmes in 2013, answering questions ranging from how they rate BP on customer satisfaction in relation to its competitors to the degree to which they recognize the brand and use the products and services that they provide.
Social media, focus groups and in depth interviews with customers and online communications are rich sources of feedback for us. BP have started to launch a social media audience, from a variety of different channels including; facebook, twitter, instagram, youtube and many more. The use of a business using social media, is a strong way to attract a younger audience who are the vision for the future, and using a software which younger people are using every day is a strong way to address the message that the business is trying to promote, and interest a new audience of people. Social media, is also a strong way to promote any change in BP because, they can get the message across to variety of different people, and explain why they have made these particular changes, and how it is going to make the business much stronger.
Analyse how the structures of two contrasting businesses allow each to achieve its aims and objectives.
The aims and objectives of Unicef uk, are to promote the issue that they want to change, and how your help can improve the life of thousands of children. Their aim is to stop children growing up without an education, to stop children living in a violent area which is harming and changing the way a child should live its life, also they just want to stop children in danger. As charity, Unicef uk, needs to make sure that the priorities of the problem, is clear for people who are interested in donating, and trying to make the charity more public, and understanding that people are aware of the particular issue.
The structure of Unicef uk, allows them to try and achieve its aims and objectives, as the charity has a clear structure, on how they deal with a particular issue that it wants to try and resolve. As the charity focuses on receiving donations and fundraising events to keep the charity running, it is important that Unicef uk, prioritise a particular issue or a country that is in danger, to make sure that the money is being split equally, to try, and resolve and help the situation, in the best possible way which means, spending a larger amount of money that is expected because the situation was much worse but, then the charity needs to try and fund this money again, ensuring that the charity does not collapse.
However; BP also are trying to meet their aims and objectives but, are also gaining new opportunities. Referring to the graph in the appendices, BP is set to start eight tasks this year – incorporating into Oman and Azerbaijan – the biggest number in its history in a year. In the interim, it plans to include 800,000 barrels every day of new creation before the decade’s over.
"Rising production from new upstream projects is expected to drive a material improvement in operating cash flow from the second half of 2017," BP said in its results statement.
Michael Hewson, chief market analyst at CMC Markets UK, said: "Earlier this year BP management raised the price it needed oil prices to be to $60 a barrel to break even, after reporting an annual loss of $542m in its oil and gas upstream division at the end of the last fiscal year.
"Though Brent crude prices did get close to that $60 level in February they have struggled ever since, despite the output freeze by Opec that is due to be reviewed later this month."
This statement was released on the BBC’s website, it explains that BP profits have been helped by higher oil prices, this means that BP have had a successful year for a raise in their profits, which has helped them gain interests from other countries, so they are able to make the business more global, and reach out to new opportunities.
The aims and objectives of BP, are very different to Unicef uk because, BP want to try and gain as many new opportunities as they gain because, it means that their business is going to gain a new audience, and even new company who want to work with BP. BP believe that an objective of theirs, is to promote their business and gain more projects, which they can focus on and promote their business.
Evaluate the reasons for the success of two contrasting businesses, reflecting on evidence gathered.
Both businesses are very successful for completely different reasons but,underneath the business they are using the same techniques, to promote and make awareness of their business. Unicef uk, does not make profits as it is an non-profitable business but,the success and support behind the charity is extraordinary. Unicef uk, is supported by companies, who are constantly putting on different fundraising events, which are helping the charity, stay in the branch that they need to be but, also work with new people who believe that they can help the charity gain the skills and strengths that it needs, to become even more popular. As a charity the work for ambassadors can make a huge amount of difference. Unicef uk, has some of the most well-known, idolised celebrities supporting their charity, and using the fame, and fan base to try and promote the work that Unicef uk are doing, which can help the charity gain a wider audience which then will make the new members of the charity,donate, and tell more people about the work that Unicef uk are doing, try and stop every child in danger.
Global reach and expertise helps with humanitarian and development programmes in more than 150 countries, Unicef’s global reach is far beyond that of any other children’s charity. Their skilled field staff specialise in areas like health, nutrition and protecting children. They work with communities and governments to tackle the root causes of poverty, as well as to address children’s immediate needs. Wherever a humanitarian emergency hits, Unicef is already there. They have one of the largest supply networks in the world. This means we can deliver essential supplies like life-saving vaccines, mosquito nets and vitamin A capsules to help children. They can rapidly dispatch to wherever they’re needed by land, sea or air. On average over the last five years, for every pound spent by Unicef UK, 70p went towards their work for children around the world, 29p was spent on raising another pound and 1p was spent on governance of the charity.
UNICEF UK was and stays twofold. To begin with, the sheer size of UNICEF’s operation. No other single association works in the same number of nations, or on the same number of various exercises. Where should the UK Committee center their allure? Second, as the key backers of the UN’s Convention on the Rights of the Child, UNICEF are focused on chipping away at all parts of kids’ rights. This incorporates the privilege to be heard and the privilege to be dealt with reasonably. It was essential to UNICEF UK that these rights were express in the interest. However, they, similar to the administration focus likewise perceived that an exclusively ‘rights-based’ battle would not just make it difficult to connect with a few givers, yet may really push others away.
Working in association, UNICEF UK and the administration focus expected to build up an expansive crusade suggestion that would do equity to the decent variety and extent of the association’s work, that explained youngsters’ rights, and above all, that would move and test givers to burrow profound and have a genuine effect to the world’s kids.
In contrast, BP are a well-earned organisation who are one of the world’s most leading gas and oil businesses. BP have an operating income of US$ 2.89 billion from 2016, profits of around US$115 million from 2016, Total assets of US$263.3 billion from 2016 and the total equity of US$96.84 billion from 2016. The figures that BP have produced in 2016, are extraordinary and is one of the main reasons
BP currently now works in around 80 nations. It creates around 3.2 million barrels for each day. It is one of the biggest makers of oil and gas industry in the entire world. The organization has around 17,000 administration stations spread everywhere throughout the world. The organization has a portion of the stake on the planet’s biggest exchanged oil and gas organization, Rosneft. English Petroleum is additionally recorded on the London Stock Exchange. There are additionally the auxiliary postings of the organization also in Frankfurt stock trade.
The starting point of the organization goes back to 1909. It was initially the establishing of the Anglo-Persian Oil Company. By 1935, it turned into the Burmah Oil Company and it was built up to abuse the revelations of oil in Iran. The organization wound up plainly British Petroleum in the year 1954. BP was the primary organization to strike oil in the North Sea.
Both businesses, have had a very successful careers in terms of the how popular their businesses is, and how their customers are still sticking to the business. Both businesses are extremely popular and have used this to try and get their message across and promote their business. They are contrasting business but, the similarity is they have both become so successful by working towards their aims and objectives and completing them to their best abilities.
Bibliography
https://en.wikipedia.org/wiki/BP
https://www.bp.com/
https://en.wikipedia.org/wiki/UNICEF
https://www.unicef.org.uk/
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