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Investigation of a Medium or Large Firm

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Investigation of a Medium or Large Firm Section 1: Businesses exist to provide goods and services. All businesses, wether they aim to make a profit or not, have to make products and/or provide services that satisfy customers wants and needs. Businesses set themselves objectives that govern the way they operate. The main aims and objectives of most businesses are: * Making a profit (or surplus) * Increasing sales or market share * Surviving * Providing services to the community * Offering charitable or non-profit services, such as caring for the environment * Developing staff skills * Producing high-quality products or offering high-quality service McDonald's main aims and objectives are to be the world's best quick service restaurant experience. Which to McDonald's means providing outstanding quality, service, cleanliness and value, so that they can make every customer in every restaurant smile. To achieve their aims and objectives, they are focused on three worldwide strategies: 1. Be The Best Employer Be the best employer for every person in each community around the world. 2. Deliver Operational Excellence Deliver operational excellence to every customer in each of our restaurants. 3. Achieve Enduring Profitable Growth Achieve enduring profitable growth by expanding the brand and leveraging the strengths of the McDonald's system through innovation and technology. McDonald's mission statement sums up what McDonald's aims and objectives are in the UK and how they will achieve them: McDonald's aims and objectives are to be the UK's best quick service restaurant experience. This will be achieved through five strategies: Development, Our People, Restaurant Excellence, Operating Structure, and The Brand. ...read more.


pay the franchiser on every sale-which is usually 10%; * The length of time the franchise will last; * The method of withdrawing from the franchise or disposing of it to another person; * The initial, and on-going, support that the franchiser will provide; * Where the franchisee should buy surplies for his or her business. For franchisers, the main advantages are: * They can expand their business without investing large amounts of money; * Risks are reduced as they are shared with the franchisee; * Regular royalty payments are received from the franchisees; * Franchisees are usually more ambitious and hard working than some employees; * Most franchised businesses are profitable. The main disadvantages for franchisers are: * The company's trade name-and reputation-can be ruined if franchisees do not maintain standards; * The initial cost of the trial period; * On going costs of national advertising and support of franchisees. For franchisees, the main advantages are: * They have a much bigger chance of succeeding than small traders, as their product is already successful and has a secure place in the market; * Banks are usually more willing to lend money to a franchisee as they know how well other franchises have done; * The franchisee benefits from continuous support from the franchiser. If there are any problems, the franchisee may often know the answer straight away, as similar problems may have occurred in other parts of the country. The main disadvantages for the franchisees are: * Less independence than a small trader; * Continuing royalty payments; * May not be able to sell the business without franchiser's approval; * Sometimes tied in to buying all surplies, at higher prices, from the franchiser. ...read more.


Public Limited Company's advantages and disadvantages are the same as a Private Limited Company except Ltd. shares cannot be sold to the general public, only privately and all shareholders have to agree to the sale. Public: Are owned by the state and are services such as health, police, roads, forces etc, but the government mostly contract out-getting private firms to do the job. Other public firms are the BBC and Consignia. McDonald's opened it's first restaurant in the United States in 1955 as a Private Limited Company (Ltd.), as a family business and paid employees to run it for them. To McDonald's, this seemed a good way to start the business, as there is only limited liability, so if the business failed-they would only lose the amount of money they invested. It paid of and McDonald's is one of only a handful of brands that command instant recognition in virtually every country of the world. McDonald's is also a franchise, with 70% of the restaurants, worldwide today run by independent entrepreneurs. They saw franchising as a low cost and risk way of expanding the business nationally and globally, aswell as making a good profit. Franchisees are crucial to McDonald's success and today there are more than 26,500 restaurants in over 119 counties-making McDonald's far the largest food service company in the world. Section 3: In all organisations (other than the very smallest) it is necessary to organise or group the work and employees in order to: * Benefit from specialisation; * Simplify the task of management; * Maintain control. These are the different types of organisation structures: A geographical based structure: ...read more.

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