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Size, Scale, Purpose and Ownership

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Introduction

SIZE MacDonald's is very large business which actually is a franchise. Which means that the founder of the company is not in own of the all the businesses worldwide. MacDonald's is international so it clearly employs over 250+ people. MacDonald's currently have around 447,000 employees. Also MacDonald's sales turnover is clearly over 10 million pounds in the UK. It is currently in the head of other huge successful companies like Pizza Hut and KFC and other leading fast food shops. SCALE When you see the MacDonald's Logo or restaurant you've probably may have seen it worldwide in America, Asia and elsewhere from the UK. This means that MacDonald's is a global or international business. It also consists of the Local Regional, National and European scales. PURPOSE MacDonald's purpose is visibly to sell burgers and chips at an affordable price to customers across the globe. The company is currently making a lot of profit. They also use pricing strategies as BOGOF deals and Extra Value Meals. OWNERSHIP As a condition of the franchise agreement, the Corporation owns the properties on which most McDonald's franchises are located. The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. ...read more.

Middle

SIZE Tesco is the largest British retailer by both global sales and domestic market share is the world's third-largest grocery retailer, behind Wal-Mart of the United States and Carrefour of France. Tesco now controls just over 30% of the grocery market in the UK, approximate to the combined market share of its closest rivals, Asda and Sainsbury's. In 2007, the supermarket made over �2.55 billion in profits. SCALE Tesco is a national business which has the scale over many regions in the UK. Tesco has many competitions: Sainsbury's, Asda and Iceland, but the company currently has won the competition with these big companies and improved their customer service and other important stuff. Tesco even sent some of their staff to China to investigate how a Chinese family spends their money and leisure time. The Ambition of the owner is to sell high quality products to customers. Tesco had to use money to expand far and wide over the nation. PURPOSE Tesco has a diversification of their shops which include Tesco Extra, Tesco Metro and the normal Tesco. Both Tesco and Tesco Metro (express) sell normal products like any other supermarket would do, but Tesco Extra sells many other ranges like Furniture, Electronics and home equipment. ...read more.

Conclusion

The customer service offers emailing newsletters and delivery for the clothes and other similar items. OWNERSHIP M&S is unlisted PLC, which means it does not sell their shares on the stock market. The company is an Unlisted PLC inside the UK and LTD franchise outside the UK. Benefits of being a PLC include having a chance to raise capital from members of the public unlike private companies, and they are more likely to employ specialist machinery and equipment. Also being a PLC usually means that you're larger than other types of companies and you gain from economies of scale. DISADVANTAGES AND ADVANTAGES Advantages * Through their greater size and their ability to ask the public to buy shares, Marks and Spencer finds it easier to obtain capital * Financing Marks and Spencer's is easier because many banks or more likely to lend money to the company because of its good reputation Disadvantages * Marks and Spencer is more likely to suffer from red tape because everyone can see their details and have access to their accounts, and they more like to suffer from diseconomies of scale, their unit costs may start to rise * May become too large resulting in poor labour relations. * They may have conflict of interest between shareholders and the Board of Directors. ...read more.

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