Tuesday 23 October 2012

OWNERS AT CADBURYS & ASDA



Owners

Owners are people who own and have invested money in to the business.  The number of owners and the roles they carry out differ according to the size of the firm. In small businesses there may be only one owner (sole trader) or perhaps a small number of partners (partnership). In large firms there are often thousands of shareholders, who each own a small part of the business. Owners are internal stakeholders. This is because they work within the business and have an influence. Similar to those interests expressed by employees, the persons who run the business will have similar concerns. Depending of the liability status of the entity, the owners might have risk to their personal wealth and would therefore have this additional concept to consider. Owners are the most important stakeholders. They decide what happens to the business.They're the ones who make a profit is the business is successful. In a sole trader or a partnership, they are the owners. In a limited company, they are the shareholders.



Cadbury owners

Cadbury is owned by Kraft Foods. Cadburys is subsidiary of Kraft foods. This means that a subsidiary company subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that owns more than half of the subsidiary's stock. Kraft Foods Inc is an American multinational confectionery, food and beverage company. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide, for example: Cadbury. Kraft Foods is a public company. A public company or pubic liability company is a limited liability company that offers its securities (stock/bonds/loads, etc.) for sale to the general public, typically through a stock exchange, or through market makers. Public companies, including public limited companies, can be either unlisted or listed on a stock exchange depending on their size and local legislation. Which means that Cadburys is a PLC (Public Limited Company) that means they allow shareholders from the public.

Shareholders are another very important stakeholder group. They should be kept well informed of the financial state of the organisation, so as to encourage them to keep investing in the company. If they are not confident that they will get a good return on their investment, they may sell their shares and there won’t be enough money invested in the company. Shareholders want the company to do well – the better it does, the more money they stand to make.

What a Cadbury owner might say: ‘I am a shareholder in Cadbury. That means I own part of the company. I get a share of the profit, called a dividend, every six months. I want Cadbury to do really well because if they do it will make a good profit. Which means my share will be good too. It is also important to me to know that the company is behaving ethically. I like to know, for example that they treat their staff and their suppliers in the third world properly.’

How Cadbury owners influence aims:

Owners influence business decisions, as they desire a return from the company in the form of profits so owners make decisions to make this possible. Owners have a big say in how the aims of the business are decided, but other groups also have an influence over decision-making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits.

This news article shows that the Cadbury Owners, Kraft Foods have made new job vacancies. This will influence aims and objectives of the business as there will be a better production line which will benefit the owners and shareholders as they are looking for return on what they have invested in the business. - http://www.bbc.co.uk/news/uk-england-birmingham-14946665

How Cadbury owners interests may conflict with other stakeholders: 

http://www.dailymail.co.uk/news/article-1249728/Cadbury-sacks-400-workers-Kraft-breaks-promise-shut-factory.html - This article shows conflict between employees and owners as the owners of Cadburys (Kraft Foods) have sacked 400 employees which means that employees will not be pleased and happy therefore it created conflict between the employees and the owners of Cadburys. 

Asda owners 


Asda became a subsidiary of the American retail giant Wal-Mart, the world’s largest retailer, in 1999. Walmart branded as Walmart since 2008 and is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores. The company is the world's third largest public corporation. It is also the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family - owned business, as the company is controlled by the Walton Family who own a 48% stake in Walmart. Therefore, Walmart is the parent and Asda is the subsidiary. This means that subsidiary, or daughter company is a company that is completely or partly owned and partly or wholly controlled by another company that
owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company.  

Shareholders are another very important stakeholder group. They should be kept well informed of the financial state of the organisation, so as to encourage them to keep investing in the company. If they are not confident that they will get a good return on their investment, they may sell their shares and there won’t be enough money invested in the company. Shareholders want the company to do well – the better it does, the more money they stand to make.

How Asda owners influence aims:

Owners influence business decisions, as they desire a return from the company in the form of profits so owners make decisions to make this possible. Owners have a big say in how the aims of the business are decided, but other groups also have an influence over decision-making. For example, the directors who manage the day-to-day affairs of a company may decide to make higher sales a top priority rather than profits. 


How Asda owners interests may conflict with other stakeholders: 

http://www.guardian.co.uk/commentisfree/2009/oct/12/bananas-supermarkets-asda-price-war - This shows that there is conflict between the owners and the customers. This is because the owners have increased the price of bananas and the customers are used to cheaper prices, therefore this is conflict. Also, there would be conflict between shareholders and customers because the owners and shareholders want good return on their investment however the customers want cheap prices. This means that the shareholders will only be getting a good return on investment if the prices are slightly higher. However customers will disagree due to them wanting cheaper prices and they want to save money. 





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