OCR Level 3Cambridge Technicals

in Business

Unit 1:Business Environment

Two very different Two very different businessesbusinesses

Oxfam continues to support relief for poverty via direct action projects all over the world, often in areas of severe deprivation.

In October 1942, following the setting up of a national Famine Relief Committee, the Oxford Committee for Famine Relief met for the first time and Oxfam was born.

In 1919, Jack Cohen started selling surplus groceries from a market stall in the East End of London.

In 1924 Jack sold his first own-brand product. This was tea from a firm of tea suppliers of whom T E Stockwell was a partner.

These initials, along with ‘Co’ from Cohen, gave Jack the idea for the name of his own label – TESCO.

Two very different Two very different businessesbusinesses

Oxfam uses a combination of rights-based sustainable development programs, public education, Fair Trade, campaigns, advocacy, and humanitarian assistance in disasters and conflicts.

The purpose of Oxfam is to help create lasting solutions to the injustice of poverty.

OxfamOxfam

a growth company

a modern and innovative company and winning locally, applying their skills

globallymost highly valued by the customers they serve, the communities in which they

operate, their loyal and committed staff and their

shareholders

Tesco’s vision is to be:

TESCOTESCO

A registered charityWorks primarily in the

retail sector

Performance is measured by profit and

revenue levels

A public limited company with clear aims to grow its position

in the market place

Oxfam International is a confederation of 15

organisations

Has no commercial or financial aims in its

vision statement

Oxfam and Tesco are both major businesses, but are very different.

Business EnvironmentBusiness Environment

CharityCharity

Retail Retail SectorSector

No No shareholdersshareholders

Respond to worldwide Respond to worldwide emergencies/disastersemergencies/disasters

No maximisation No maximisation of profitof profit

Relieve suffering Relieve suffering of those in needof those in need

Income from Income from donationsdonations

Business EnvironmentBusiness Environment

GrowthGrowth

Customer Customer satisfactionsatisfaction

Customer Customer loyaltyloyalty

Fierce Fierce competitioncompetition

Retail Retail SectorSector

Public Limited CompanyPublic Limited Company

ShareholdersShareholdersCustomer Customer

preferencespreferences

Value for Value for moneymoney

Brand Brand valuevalue

Maximise profitsMaximise profits

Business EnvironmentBusiness Environment

Are efficient and effective organisations that achieve

their very different purposes

Business EnvironmentBusiness EnvironmentOxfam and Tesco

represent very different organisations operating

in very different business environments.

However both:Have strong core values

and strategies which are

paramount to their success

Operate within a business

environment where global economic uncertainty can have a major

impact

What will you learn?What will you learn?After completing this unit you will:

Know the range of different

businesses and their ownership

Understand how businesses are

organised to achieve their purposes

Know the impact of the economic

environment on businesses

Know how political, legal

and social factors impact on

business

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