• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

McDonald's restaurant owner chose to locate its business in Stratford, because it is near customers. Stratford is a very busy place; people come to the shopping centre, in which McDonald's restaurant is located, to shop around

Extracts from this document...

Introduction

Task 3: Business location Choice of ownership : Franchise Name of business: McDonald's Area: Stratford To all businesses one of the most important things is where the business is located. The correct location is crucial in order for business to be successful. Bad location can cause a lot of problems and cut down the profit. Good business location attracts more customers and increases profit. The following are factors considered by McDonald's when choosing their location. McDonald's restaurant owner chose to locate its business in Stratford, because it is near customers. Stratford is a very busy place; people come to the shopping centre, in which McDonald's restaurant is located, to shop around. If customers get hungry they can always come to McDonalds, because they don't need to go far away from the shopping centre, McDonald's restaurant is right there. In Stratford people come to the library, which is only few meters away from McDonald's. ...read more.

Middle

So customers can come from different parts of London. Also it has access to trains, so customers can event come from outside of London. Stratford has very big bus stop. Buses go to very different areas, so again customers can come from very different places. Stratford has few buses which go Stanstead airport, people who are traveling to Stanstead might want to go to McDonald's to eat something before a long journey. Customers who come with cars, do not have any problems with can parking, Stratford shopping centre has 4 floor car parking. McDonald's restaurant is located in very board road, so it makes easier to suppliers to deliver products. In some cases it might be better for a business to locate near its competitors because customers 'shop around'. A business locating away from the others might be at a disadvantage because customers visit where there are many shops or restaurant to look at and choose from. ...read more.

Conclusion

But this is what more sole trader business does; franchisors usually decide to open up a business where they know that they can make a big profit. Business generally need to pay rent to hire their shop/premises and also have to pay high rates to the councils if located in a sought after area. In Stratford rent is very high, because it is a popular place, it's near the tube station, and it is in a shopping centre. A lot of people come to Stratford every day. McDonald's chose to locate the business in Stratford with very high rent because they thinks that they can make a lot of profit and cover the rent. The closer the business is to the inner cities the higher rent and rates you are likely to pay. Feedback - a very good pass. You demonstrate a good understanding of the factors affecting location. ?? ?? ?? ?? Agne Griauslyte ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Business at work Mcdonalds.

    He doesn't give clear directions and has little input in how things go. This style can work well in small businesses, but it wouldn't work in hierarchical structures because the employees tend to be unproductive. McDonald's restaurants are working with the autocratic style.

  2. In this coursework I need to produce a detailed business report on one medium-sized ...

    At 100,000 square feet or more, hypermarkets give Tesco the space to offer customers extensive food and non-food ranges at outstanding prices. Tesco is learning all the time. The format is internationally transferable and adaptable to different regions, and part of the success has been to supplement UK skills in grocery retailing and customer service with international expertise.

  1. This coursework that I intend on completing will be based around setting up a ...

    x 30 titles = �1,650 I would also be interested in purchasing other music in order to increase the services. Information about the special offers that the Kingdom Records offer were supplied from my questionnaire I gave to the Hitman owner.

  2. Articles on franchise

    Geographical Area- Franchisees are given a geographical area knowing there won't be another franchise by the same firm within the area. Advertising And promotional Support- The franchisees will benefit from this especially as advertising will take place both locally and nationally by the franchisor.

  1. This report will look at McDonalds as an international business, but also focus on ...

    The other type of ownership that McDonald's employs is franchising. The franchise agreement grants to the franchisee the right and authorisation to operate a specific McDonald's restaurant, at a single address, usually for a period of 20 years. These rights include the use of McDonald's trademarks, restaurant decor designs, signage

  2. My business idea is to open a fish and chip shop.

    who during this year will open three more shops in north of UK. Market size of the fish and chip market Great Britain In order to find out if demand exists for my service I conducted secondary research on the net on bbc.co.uk and on marketresearch.com.

  1. Morrison's is located on Binley road in Coventry. Binley road is located on the ...

    Passing trade is also important when the location of a business is being located. Passing trade is when people are going somewhere else and because there's a shop there they would just go in to buy something. * History and tradition- some businesses are located in a particular area because that area is famous for that kind of business.

  2. How Technolgy effects some in the work place

    if they know were the information can be found, wasting a lot time. The overall effect is that Chris spends a lot of time on his computer and less time walking around looking for things. Chris is more confident that the information he is using is accurate and correct.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work