Economics growth task

Economics growth task

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  • Created on: 29-06-12 12:52
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Bannatyne came from a humble background which actually helped his business to
grow when he was told by his mother he could not have a bicycle due to having no
funds to do so He therefore went hunting for a job at the newsagent who offered him
a job on the terms that he would find 100 customers that would be interested in this
When he was 29 he moved to StocktononTees in North East England where he
would start his business career. He started this by buying am ice cream van and
expanded this business by buying more and then sold the business for £28,000 then
created a nursing home business called Quality care Homes which he then sold for
£26 million in 1997. He then created a children's nursery chain called Just Learning
which he eventually sold for £22 million.
Under his name he has created health clubs such as Bannatyne's Health club chain
and also done this with bars, hotels and property. Moreover, he has acquired 22
health clubs from Hitlton Hotels. Furthermore, in 2008 he opened the Bannatyne
Spa Hotel in Hastings.
The growth in this business was clearly advantageous as Bannatyne diversified his
business by creating completely different firms which allowed his business to
prosper more as it would not be held back if one aspect failed as he had other
aspects of the market he could rely on. He has also managed to develop a
prestigious reputation which has enabled him to name his businesses after his
Lemsip can now be considered as the leading cold and flu brand in the UK but this
is only thanks to the growth it has managed to achieve through its parent company
called Reckitt Benckiser.This company was formed in 1999 by a merger between
Keckitt & Colaman and Benkiser NV. This has led to the company employing over
30,000 people world wide with operations and sales in over 180 countries.
In 2008 the brand was able to grow due to its publication of their products which is
said to have `captured the shoppers' imagination'
In October 2005, the firm purchased the overthecounter drugs manufacturing
business from Boots Healthcare International which gained them control over new
brands such as Nurofen in analgesics Strepsils sore throat lozenges and Clearasil
antiacne treatments
In January 2008 continued to expand by aquiring the company Adams Respiratory
Therapeutics, Inc., a pharmaceutical company,: one of the major brands acquired
with this purchase was Mucinex.

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Then in July 2010, the company agreed to buy SSL International, the makers of
Durex condoms and Scholl's footcare products in a £2.5bn deal.[19]
Tesco is a company that was established in 1919 by Jack Cohen and has
constantly been growing throughout the years. It started from a stall in the East
London where surplus groceries were sold and then moved on to selling tea in
1924.…read more

Page 3

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Advantages and Disadvantages of firms growing internally(increase in sales) and
The advantages
Economies of scale reduces unit costs.…read more

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Moreover, it would have allowed him to focus on his business on something he
really believed in, which may have made him happy.…read more


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