Business Principles Assignment Sample
1. Question 1
1.1 Discussion on the types of organization of Beaverbrooks
The type of organization of Beaverbrooks is a partnership business as the total ownership of the business is divided on the hand of owners of the organization. The owners of Beaverbrooks are Maurice, Harry, and Isaac as they founded the retail business in 1919 (Beaverbrooks, 2021). The predecessors of the owners of Beaverbrook concentrated on running their family business. As opined by Bag et al. (2020), the profit-sharing ratio of an organization is decided based on the ratio of investment by its owners. However, the current owners of Beaverbrooks changed the deed of the business and made the profit sharing ratio of the business based on the participation of the operational activities of the company. Contractual relationships among the partners of Beaverbrooks helped in maintaining the integrity of its financial operations.
1.1.1 Explanation of the benefits of its organizational type
One of the benefits of forming a partnership business is that its incorporation procedures are easier than joint-stock or limited liability companies. The partners of Beaverbrooks have to pay attention to minimum legal formalities in its business. As stated by Plaskova and Prodanova (2021), all the partners of a partnership business have shared the risks of the organization in their profit-sharing ratio. Hence, it helped the business for eliminating the chances of liquidation in the future. Due to the minimal incorporation activities in Beaverbrooks, the owners of the organization are able to minimize the operational costs of the business. Thus, it helped in presenting more business opportunities in making operational expansion of the business in the upcoming years.
1.1.2 Identification of two limitations of Beaverbrook’s’ organization type
The partners of Beaverbrooks have to share the financial losses of the business in their earnings ratios. The partner who is gaining the maximum percentage of the profits from the business activities needs to reserve a certain portion of the profit for incurring the future losses of the business. As believed by Zoschke and Bock (2018), loss of autonomy and emotional issues among the partners creates certain gaps in the financial activities of the business. Another limitation in the partnership business of Beaverbrooks is future selling complications in its business. Future selling complications are considered as deficiencies of a particular product of an organization. The partnership deed among the partners of Beaverbrooks may be changed in the future as it is going to be difficult to make instant changes in the regulatory policies of the business. There is not any regulatory authority within Beaverbrooks as the conflicts among the owners of the retail business may tend to the liquidation of the business.
1.2 Comparative discussion on two different types of organizations with Beaverbrooks
Two types of organizations such as joint-stock companies and corporate society have been selected in this section for comparative discussion with partnership business. The minimum number of members of the partnership business is two whereas that of public joint-stock and corporate society is seven and ten respectively. As narrated by Schoop and Haendel (2021), a partnership business has no separate legal existence; the partners and the partnership business have the same legal existence. However, both the corporate society and joint-stock company have a separate legal entity and it is considered as the artificial person created by the UK law.
Transfer of shares of the partnership business is not possible without the consent of the partners of Beaverbrooks. However, the shares of joint-stock and corporate society can be shared freely in the domestic and international markets. As idealized by Wickramasinghe and Sajeevani (2018), the stability of the public joint-stock company and corporate society is not affected by the insolvency or death of the partners. In contrast, the stability of the partnership business is affected due to the insolvency, lunacy, or death of partners as it requires modifying the partnership agreement among the existing partners of Beaverbrooks.
Figure 1: Business analysis of Beaverbrooks
(Source: Beaverbrooks, 2021)
1.3 Evaluation of two legal structures of Beaverbrook’s
Two legal structures can be formed with the help of partnership business trust business structure and limited liability business (LLP) structure. The main prospects of forming a trust partnership business are to provide assets protection and maintain limited liability to the owners of the business. As stated by Zhitia (2020), the shareholders of the limited liability ownership business can only the value of its shares in the case of the organization as they are not considered as liable for the total debts of the organization. These two legal structures of partnership business are widely spread all across the UK.
1.3.1 Discussion on the two advantages of its legal structures
One of the advantages of forming LLP is that there is no restriction on the total number of members of the organization as the willing persons can be able to participate by bearing certain responsibilities of the organization, Furthermore, trust maintains flexibility in the operational activities in its operational activities as its main role is to provide the required flexibility in the capital and income distribution among the beneficiaries of the company. As opined by Siregar and Suparno (2021), the formation of LLP does not require a wide range of paperwork and it can be formed by the consent of participants of the organization.
1.3.2 Identification of two disadvantages of Beaverbrook’s’ legal structure
The establishment cost of a trust is comparatively more than that of other forms of partnership and sole trading organizations. Transferring the ownership of LLP is very difficult as the participants became rigid in transferring the ownership of the business. As idealized by Naway and Rahmat (2019), the trustee of an organization has to manage and maintain the property of the beneficiary without concentrating on taking certain benefits from the other parties. Extensive regulatory policies have been applied towards LLP as it enforces rigidity in its financial policies.
2. Question 2
2.1 Pestle analysis of Beaverbrook’s
Figure 2: PESTLE analysis of Beaverbrooks
(Source: Created by learner)
Political
The intervention of the government policies of the UK makes its sustainable impact on the financial performances of Beaverbrooks. As discussed by Ogada et al. (2020), the financial activities of Beaverbrooks have to follow the industry regulation act of the UK as it needs to modify its financial policies according to the norms of the country. However, global trade restrictions make a crucial impact on the operational growth of Beaverbrooks.
Economic
Change in the exchange rates of dollars with other countries’ currencies makes its impact on the financial performances of the Beaverbrooks. As stated by Khalfan et al. (2021), inflation is considered as one of the crucial factors in the change in the total change in the operational performances of retail companies. Furthermore, the cost of living and change in the total costs of the UK visualizes its impact on the operational performances of the Beaverbrooks.
Social
Modification in the customer trends and changes in the preferences of the consumers of Beaverbrooks make a sustainable impact on the operational strategies and financial policies of the retail industry. As opined by Chin and Jing (2018), work-life imbalances among consumers make a sustainable impact on the marketing strategies and financial policies of the company. However, demographic factors are concentrated on implementing operational strategies and financial activities of the organization.
Technological
Beaverbrooks is concentrated on improving its service quality and is associated with using digital platforms in the financial activities of the organization. As narrated by Mohamad and Bakar (2018), usage of innovative and disruptive distributional channels within the retail industry6 can be effective to increase the overall profitability of the business. Furthermore, application of the artificial technologies within Beaverbrook’s retail industry can improve the operational efficiency of the organization.
Legal
Beaverbrooks require being aware of the rules and regulations of employment and co0mmon law of the UK. As opined by Trach (2018), without following local labour laws and regulations policies creates certain conflicts within the financial activities of the organization. Meanwhile, it is required to remove the ethical dilemma of its operational activities.
Environmental
Environmental restrictions enforced by the country make a sustainable impact on the marketing strategies of Beaverbrooks. As idealized by Ha (2021), corporate social responsibilities (CSR) should need to be performed by each and every organization in the UK. Thus, supply chain management, sourcing strategies, and procurement policies need to be maintained based on the CSR strategies of the UK.
2.2 SWOT analysis of Beaverbrooks
| Strengths | Weakness |
| ● The brand authenticity of Beaverbrooks has helped in maximizing the total selling activities of the organization.
● Customer concentrated approaches and zero credit interest facilities of Beaverbrooks facilitated in attracting the customers (Sony, 2019). ● The improved supply chain management system of Beaverbrooks facilitated maximizing the total wealth of the organization. |
● Different brands of products sold by Beaverbrooks as it increases complexity in the operational performance of the organization (Bigley, 2019).
● Extreme labour flexibility and low wage rate in the organization make certain gaps in its business. |
| Opportunities | Threats |
| ● More collaboration among the various departments of the organization can improve sustainable growth in the business (Bigley, 2019).
● Implementation of an advanced customer retention management system can be effective to implement location-based marketing in its business. |
● E-commerce discrepancies in Beaverbrooks can mitigate the effectiveness of the financial activities of the organization.
● New business firms can mitigate the monopoly power of the retail industry and enhance certain obligations in their business (Pambreni et al. 2019). |
Table 1: SWOT analysis of Beaverbrooks
(Source: Created by learner)
2.3 Explanation of the two operational areas of Beaverbrooks
The main concentration of Beaverbrooks is to sell the jewellery to the various companies in the organization. Furthermore, it is focused on selling the jewellery directly to the consumers. As narrated by Yaemjamuang (2017), change in the marketing patterns and modification in the distributional activities into the company. An increase in the total volume of the business can help in increasing the total financial activities of the business. However, it is concentrated on selling engagement rings and watches through its retail outlets.
2.4 Identification of two important environmental factors within Beaverbrooks
Ethical sourcing environmental factors impacted the operational activities of Beaverbrooks as it needs to make sustainable changes in its managerial policies. As opined by Dalaien et al. (2020), corporate social responsibility have to be performed in its business as it helps in performing managerial roles in its business. Furthermore, the distributional policies of the Beaverbrooks should need to be implemented in such a manner as it helps in maintaining natural resources in the operational activities of the organization.
3. Question 3
3.1 Discussion on the two main drivers of international trade
Two main drivers of international trade are global marketplace and technological development as Beaverbrooks can gain a huge amount of demand from the international market. One of the basic objectives of international trade is to expand the financial activities of the organization. As idealized by Bag et al. (2020), expansion of the operational activities of the organization is associated with increasing financial polices and marketing development of that organization. Hence, it can be viewed that one of the basic perspectives of international trade is to implement marketing activities and increase the production level of the organization.
3.2 Impact of international trade on Beaverbrook’s
Beaverbrooks can be able to export its products to other countries of Europe as it helps in increasing the total business viability of the organization. The target market strategies of Beaverbrooks can be expanded as it facilitated improving the financial operational activities of the company. As narrated by Zoschke and Bock (2018), improvisation into the business activities and implementation of the financial activities can help in improving the financial growth of its business. International collaboration can be made with the help of international trade as a result Beaverbrooks expanded its business with the help of implementing international policies and making sustainable development of the organization.
3.3 Discussion on the globalization
Globalization helps in expanding the financial performances of the company as it helps in selecting the most effective way to reduce operational costs of the organization. It facilitated increasing competition into the global market as the monopoly power of a company vanished. As opined by Schoop and Haendel (2021), in retail industries globalization increases the flow of goods into the market as it presents several opportunities to increase the financial performance of the company. Importing and exporting activities are expanded with the help of globalization. On the other hand, globalization helps in making sustainable growth into her multinational companies of the UK.
4. Question 4
4.1 Evaluation of two operational activities of Beaverbrooks
The operational activities of Beaverbrooks are basically associated with the production of engagement risks, watches, jewellery, and wedding dresses from its various distributional channels (Beaverbrooks, 2021). Innovative business plans and marketing policies have been implemented in its business as it can help in maximizing operational policies in its business activities. However, Beaverbrooks concentrated on selling the products with the help of both retail stores and digital platforms. In addition, two separate sections are present in the financial activities of the Beaverbrooks as they are concentrated both on men and women jewellery in its financial activities. Making sustainable modifications in Beaverbrooks’ business is concentrated on improving the operational efficiency and financial strategies of its business.
Figure 3: Brands used by Beaverbrooks
(Source: Beaverbrooks, 2021)
4.2 Role of two operational activities in achieving operational objectives
The main focus of its operational activities is to improve the financial activities and marketing performance of its business. Modification in the financial planning strategies and making development in the operational strategies can expand the financial performances of the business. As idealized by Trach (2018), improvisation in the operational techniques and making development into the financial projection procedures expand financial activities of the business. Adequate analysis of the financial policies and making modifications to the business strategies can be effective enough to utilize operational growth in the business. Meanwhile, the main role of the operational activities of Beaverbrooks is to maximize the operational profitability of the business.
4.3 Key consideration required for managing operational plans
Firstly, one of the important considerations required to manage operational plans of the business is to track operational performances and measure the financial stabilities of the organization. Secondly, it is required to eliminate wasted resources from the operational activities as it can be able to manage operational plans of the organization. As idealized by Bigley (2019), modification into the operational activities and giving concentration on the goals and objectives of the organization is one of the important areas of making financial growth. Thirdly, organizations should focus on aligning objectives and goals of the company with their operations to achieve financial stability. These three key considerations are required to follow for maintaining sustainable growth into the company,
4.4 Discussion on two techniques to execute operational plans of Beaverbrooks
Operational planning and tactical planning are examples of two planning techniques that an organization can be implemented to execute the operational plans of the organization. As believed by Yaemjamuang (2017), planning techniques are used within an organization to maintain financial stability and improve the operational activities of the company. Furthermore, Beaverbrooks need to implement financial policies and marketing strategies in such a manner as it can be able to implement financial strategies of the business in the upcoming years.
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