United Biscuits :: United Biscuits Business Management Essays

joined Biscuits1. IntroductionUnited biscuits were founded in 1948 with the merger of two Scottishfamily businesses, these were McVities and the wrong and McFarlaneLang group. It was developed furthermore when they acquired CrawfordsBiscuits and MacDonalds Biscuits. More recently in 2000, UnitedBiscuits was bought by Finalrealm who were a pond of investorsand the friendship reverted to a occult company status.2. OwnershipIn 2000 United Biscuits were bought by a consortium of fourbusinesses, these four businesses own different percentages in thecompany which is hardened by the number of money which they invested.The four businesses were Cinven who own 30%, PAI Partners who to a fault own30%, Nabisco who own 25% and finally MidOcean Partners who own 15%.United Biscuits were reverted to being a hidden contain company, thisis unusual because private companies tend to be smaller than publiccompanies and a fair deal are family businesses. To be a private companythere must be at l east two shareholders, which United Biscuits permittwo more than the minimum. Shares in privately owned companies finishnotbe traded on the Stock Exchange and often shares can only be boughtwith the permission from the board of directors. The board ofdirectors is a group of officials whose job it is to protect theshareholders interests, they also choose the managing director wholooks aft(prenominal) the daily running of the company.With private limited companies the shareholders choose the board ofdirectors, who therefore choose the management, this is done at an annualshareholders meeting. Companies that are private have limitedliabilities and this may make them more attractive 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 procession in capitol. There are only a fewdisadv antages in comparison to an unlimited liability business, theyhave to share the profits tabu between the shareholders and decisionscant be made quickly, they also represent more to set up.United Biscuits could become a public limited company, and to do thisthey would have to float their stocks on the Stock Exchange.One of the main(prenominal) benefits of doing this is that large amounts ofcapital can be raised very quickly, to all(prenominal) up-side there must be adown-side and this is that the control of the business can be lostif large amounts of shares are bought because this would possiblyresult in a takeover.To become a public company the directors must accommodate to the Stock