TATE & LYLE

Business Environment - Tate & Lyle

Business Environment - Tate & Lyle

Introduction

This paper looks into the various operations of Tate & Lyle. It takes under consideration the objectives of the business, the perspective of different stakeholders and sheds light on how Tate and Lyle work towards achieving these goals. It considers the business environment of Tate & Lyle and how the government policies might affect business.

Discussion

Task 1

Part 1.1

A business is always owned by a person, but what differs is how the business operates. The different types of business organizations that exist are a sole proprietor, partnership, private and public limited companies, co-operatives, public sector and franchises.

The main objective of sole proprietorship is to maximize its profit. Since, it is one person owned business; he/she seeks to achieve this vital goal by limiting risk and controlling cost as much as possible (Strickler, 1951, pp. 874)). This form of business requires few legal requirements to start up and due to the fact that it can offer customized services to its customers, it is the most common form of business in the United Kingdom.

Partnerships are businesses that are owned by two or more owners. It requires a formal partnership deed which specifies the investment, duties, remunerations, rules or actions according to specific scenarios which might arise (Mohr & Spekman, 2006, pp. 135-152). Unlike sole proprietorship, it is not a single owned business; hence the decision making becomes a bit complex - mainly because the suggestions of all partners need to be considered as per the partnership deed.

The major difference between the private and public limited companies is that the former cannot trade its stock in the open market while the later can. However, a public limited company requires a complicated and lengthy process to start up, but due to its ability to float shares on the open market, it can easily raise large sums of capital.

The main objective of co-operatives is to provide incentives to its members. This incentive can be in various forms, such as discounts (Porter & Scully, 1987, pp. 489-512). Whereas, in franchising, the owner of the business sells the right to operate the business under the same name to a franchisee - the person who buys the franchise.

Part 1.2

The objective of the stakeholder varies according to their link t the company. The main objective of customers is to get the best services/products at the lowest price possible. Employees on the other hand want to achieve a steady career growth, coupled with an increasing pay scale and job security. However, the supplier's main objective to get prompt payments against the materials sold to the company (Atkinson, et. al., 1997, pp., 25-37). Tate and Lyle have ensured that these objectives are met accordingly in the following manner.

Tate and Lyle have established various joint ventures to produce innovative and high quality products such as Polylactic acid. There dedicated production facilities which specialize in different forms of products ensure that high quality products are made, so that the ...