Disadvantages of becoming a public limited company:
- Plenty of paperwork.
- Expensive to set-up since it’s large in size.
- The business is subjected to be taken.
Dixie’s is a sole trader defined as a small business.
Sole trader is: someone that runs his or her own business under a trading name.
The owner personal position are at risk if the business goes bankrupt, they could lose everything in view, of the fact that they have unlimited liability.
Advantages of becoming a sole trader:
- The profit goes to one person.
- Less red tape.
- You are in control of your business.
Advantages of becoming a sole trader:
- Hard to raise money
- No one to cover on you.
- Fewer skills.
- Unlimited liability.
P. 3
The location of the business depends on certain things. Some businesses locate in particular area. For the reason that they may need to be near to: natural recourses, transport link, customers or because it has low cost of labour.
McDonalds business is located on the main street along with a large car park and that make’s it straightforward for drivers so that the customers won’t have to worry where to park, additionally it’s not far from Leytonstone underground which make’s it near to rivals.
McDonalds is also located near to Leytonstone shopping centre and that is a big advantage for them but from being located to all that there is one disadvantage which is that the cost of land my be higher. That is why some times it is smaller in size
Dixie’s is located on the main road as well as it is located inside the shopping centre of Crouch End. The reason from it being located there is so that they can be near to their customers which will bring more profit to the business it is also easier for the suppliers to transport their goods to the business.
P. 4
Competitors:
McDonalds competitors are any one who offers an alternative eating-out experience.
Burger King, Dixie’s, KFC, and any local Kebab shop are example of McDonalds competitors.
Dixie’s for example sells similar produces e.g. cold drinks, Burger and also provides take-away service, therefore Dixie’s falls under one of McDonalds competitors.
In addition Dixie’s is located on the main road of Crouch End and more to the point it’s in the heart of the shopping centre. Dixie’s customers are commonly young people, families and children.
That is why it becomes a competitor of McDonalds
P. 5
Stakeholders:
The stakeholders have a big impact on business, for McDonalds shareholder are the most important stakeholder for the reason that they have invested in the business and their interest is the profit made from their shares. Customers are important and they are taken into account (their view wear the business) customers interest is to keep them happy and listening to them.
The government is also one of the stakeholder, they can have influence on the business and the way it is run, they tax the business and invest it on other areas i.e. education, health service and transport, the government also cover all laws.
Dixie’s stakeholders are customers that are interested in getting good service, after sale service as well as having help and advised.
The owner is one of the stakeholders and their interest goes on earning more profit from their business. The local community and government as a stakeholder are interesting in the business.
As it is a small business it has les stakeholders, which means less pressure the business.
M1
There is a link between the activity of my both business and location.
Both Dixie’s and McDonald's activity is retailing which is selling fast food that’s why it will need to be near to customers and markets. The location of McDonald's as it’s a large business and also large in size, depends on issues such as the cost of the land. It would locate where the cost of land is cheap and near to transport links where it would be easy for customers to reach.
A smaller business such as Dixie’s, would locate in an area where there is more if it customers and where there is less competitors because more compatriots means more risk of loosing customers.
The ownership a sole trader such as Dixie’s is one person, so he runs the business and decides what product to by and how much will it be sold for. The investment of the ownership is limited for a sole trader such as Dixie’s because he would not have enough capital and he would not take any risks that could get hem bust for the reason that has unlimited liability, so if Dixie’s went bankrupt the owner could lose his own personal position in order to pay for the debit
McDonalds is a known as a PLC company, which has lots of shareholders, which mean that the have more capital that they an invest to expand the business, they will decides for example whether they need to lunch a new brand of sandwich and to find the best suppliers for their products. McDonalds is more likely to take risks, so if the business went bankrupt, McDonalds will only lose what he had invested in the business because of his limited liability so if Mc
M2
Stakeholders: E.g. shareholder, employees, local community and customers.
Dixie’s, as a sole trader will not have to worry about any shareholders because all the profit goes to him. The local community has interests in full employment and supporting local event and charity as a result Dixies is unlikely to make much impact there. Dixie’s is a one-person business so he will not worry about any employees.
Customers is the only stakeholder that have the most impact on the business and it should be taken into account otherwise the business might lose the customer and a business like Dixie’s without customers is bust.
McDonalds is a large company, which is likely that the entire stakeholders will have influence in the business e.g. Customers need to be treated good and meeting their needs, Employee need to be treated well, paid well and also the will need to be trained, good employees would help the business to be successful. Stakeholders and owners have common interest over the business. Stakeholders’ interest is they want a business to be run appropriately and the owner wants to be successful and expand in the future.
M3
List of resources used:
- Schoolbooks: intermediate business study book.
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Internet: (to search for the map location of MacDonald’s), (to search for more information about McDonald’s product.)
- Interview: the manager of McDonald’s (to ask for more information new brands and on how the build a strong relationship with the customers.)
D1
If a business such as Dixie’s or McDonalds were located in an area where there are lots of competitors it would have a major affect on the business because customers may prefer to by from the other competitors, which mean less profit. Burger King, Nando’s, KFC, and any local Kebab shop are example of McDonalds competitors. McDonalds customers for example may prefer to by chicken from the other competitors like KFC because it specialise more on that than McDonalds. Customers may also prefer to buy from Dixie’s or a Local Kebab shop because it might sell for lower price.
Burger King and Local Kebab shop are example of Dixie’s competitors. Burger King will be bigger competitor than the Local Kebab shop because it is well known and it has lots of branches.
Some times businesses need to be seen located as it’s competitors, because customers expect to see similar businesses at the same place.
The compaction between Dixie’s or McDonalds with the other shops around that area may become little if they are selling different product with different prices, which mean different customers, more chance of making more profit and less risk of loosing your customers.
D2
Conflicts may occur from time to time between the stakeholders, which the business has to handle e.g. Customers may want longer opening hours which may effect on the employees and be forced to work longer hours, McDonalds customers for example may want lower prices, which mean a lesser amount of profit for the shareholders, business such as McDonalds need to take in account that the local community is one of the stakeholders who demand in a clean environment and charities which could trim down the profit.