DISADVANTAGES AND ADVANTAGES
Advantages
- Because Macdonald’s is well popular and recognized, they benefit from any advertising or promotion by the owner of a franchise
- Financing MacDonald’s is easier because many banks or more likely to lend money to the company because of its good reputation
Disadvantages
- The running cost of Macdonald would be higher than they expected because they are many businesses worldwide
- Other businesses could give MacDonald’s a bad reputation.
SIZE
Richer Sounds is currently a national business. It has 44 stores nationwide.
SCALE
The business is local, regional and national.
PURPOSE
Their purpose is to sell hi-fi, home cinema and flat-panel gear and they try to give a good customer service so that they make a fair amount of profit. They have made a mark in the Guinness Book of Records (last 15 years) and they have the highest sales per sq. ft of any retailer in the world.
OWNERSHIP
Richer Sounds is an unlisted PLC, 100% owned by Julian Richer, its founder. Although they have relatively few outlets they are the UK’s biggest hi-fi and home cinema retailer and are proud of their quite incredible turnover, which is made by the customers.
DISADVANTAGES AND ADVANTAGES
Advantages
- If any other normal limited company fails the limit of liability an owner must pay is governed by how many shares he has, i.e. a Director with 100 x £1 shares would only owe £100 to creditors. But an PLC would not
- Not many problems could arise with liability issues
Disadvantages
- The business only has 44 stores nationwide
- The business is not popular enough so other business may be in the lead like Argos.
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. Some even sell clothes and bags. It also offers financial services such as its own credit card, personal loans and various types of insurance, in addition to providing a home delivery service for its online shoppers.
OWNERSHIP
It has shares in the business because many go to work everyday. The business is run by paid directors. It specializes in food most of the time. Tesco is a PLC and its shares are owned by members of the public. And by doing this it can raise large amounts of money to expand or develop the business.
DISADVANTAGES AND ADVANTAGES
Advantages
- The business sells a wide range of products, other than food. It has great customer services like its Tesco Club card and its internet, loan and insurance offers.
- It has 3 different types of quality food for customers. Tesco Value for the low-earning customers, the Basic Tesco product range for mid-earning customers and Tesco’s Finest or Organic for the higher earning customers.
Disadvantages
- Because of the foot and mouth disease, the meat products and their produce are decreasing in the profits
SIZE
Marks and Spencer plc (known also as M&S) is a major United Kingdom plc retailer concentrating on clothing and food. They also have international outlets. The headquarters of M&S is currently in Baker Street, London; during World War II these offices were used by the Special Operations Executive for secret missions in Occupied Europe. They moved in to Paddington, London in the UK. It owns more than 760 stores in more than 30 countries around the world, which means that M&S is international.
SCALE
The scale of the business is international and making a huge profit by selling products to customers. M&S is the biggest clothing retailer in the country and at the same time a multi-billion pound vendor.
PURPOSE
The purpose of Marks & Spencer is to sell high-quality food and clothes to customers. Their mediums are the most popular food advert – The slow recording and the extradonairy food and the internet. 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
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May become too large resulting in poor labour relations.
- They may have conflict of interest between shareholders and the Board of Directors.
