United Biscuits :: United Biscuits Business Management Essays

United Biscuits1. IntroductionUnited biscuits were founded in 1948 with the merger of two Scottishfamily businesses, these were McVities and the Price and McFarlaneLang group. It was developed furthermore when they acquired CrawfordsBiscuits and MacDonalds Biscuits. more(prenominal) recently in 2000, UnitedBiscuits was bought by Finalrealm who were a consortium of investorsand the caller-out reverted to a private party status.2. OwnershipIn 2000 United Biscuits were bought by a consortium of fourbusinesses, these four businesses avow different percentages in thecompany which is dictated by the amount of money which they invested.The four businesses were Cinven who own 30%, PAI Partners who also own30%, Nabisco who own 25% and eventually MidOcean Partners who own 15%.United Biscuits were reverted to being a private express mail company, thisis unusual because private companies tend to be smaller than publiccompanies and a lot argon family businesses. To be a private companyth ere essential be at least two sh beholders, which United Biscuits acquittwo more than the minimum. Shares in privately owned companies cannotbe traded on the variant Exchange and often piece of lands can only be boughtwith the permission from the add-in of directors. The board ofdirectors is a group of officials whose job it is to protect theshareholders interests, they also make the managing director wholooks after the daily running of the company.With private limited companies the shareholders get hold of the board ofdirectors, who then choose the management, this is done at an annualshareholders meeting. Companies that are private have limitedliabilities and this may make them more amiable to stakeholders inthe company because they are only liable for their share value. Sharesare a good way of generating capitol for new ventures because they canrelease shares for a certain amount and depending on how many theysell they will have an instant rise in capitol. There are only a fewdisadvantages in comparison to an unlimited liability business, theyhave to share the profits out between the shareholders and decisionscant be do quickly, they also cost more to set up.United Biscuits could become a public limited company, and to do thisthey would have to float their stocks on the railway line Exchange.One of the main benefits of doing this is that large amounts ofcapital can be increase very quickly, to every up-side there must be adown-side and this is that the reign over of the business can be lostif large amounts of shares are bought because this would perchanceresult in a takeover.To become a public company the directors must apply to the Stock