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sole traders and franchise businesses- unit 1

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Jasdeep Sahota 11x2 Business Criterion 1 Ms Spreadbury > Criterion 1 McDonalds - Criterion 1F - Criterion 1C - Criterion 1A Sole trader (Sandhu Wines) - Criterion 1F - Criterion 1C > Criterion 2 McDonalds - Criterion 2F - Criterion 2C - Criterion 2A > Criterion 3 McDonalds - Criterion 3F - Criterion 3C - Criterion 3A > Criterion 4 McDonalds - Criterion 4F - Criterion 4C - Criterion 4A Sole trader (Sandhu Wines) - Criterion 4F - Criterion 4C - Criterion 4A Criterion 1 McDonalds CRITERIA 1F - McDonalds. In this section of criteria 1 I will be describing McDonalds main activities, their aims and objectives and what type of ownership McDonalds is. I will also explain what factors influence where McDonalds restaurants are located Main activities of McDonalds: McDonalds is one of the world's most popular fast food chains. More than 26,500 McDonalds restaurants in have been opened in119 countries worldwide and every day McDonalds serves 39 million customers on average. McDonalds carries out many activities but the one most would say they are world famous for is selling fast food. To carry out this task the first thing they need to do is purchase supplies from nearby suppliers, they can then begin preparing food we all love to indulge in. A meal in McDonalds would consist of a burger, fries and a drink and if you were to purchase a "happy meal" you would also get a kids toy free with your meal. McDonalds need to advertise; Advertisements are put on T.V, radio, billboards, newspapers, booklets, and magazines. They also have their own website, www.mcdonalds.com, which advertises new products. They also use clever ideas to advertise, such as getting famous faces such as Justin Timberlake to endorse their products. Another one of McDonalds main activities is employing staff, they employ millions of people to work in McDonalds restaurants and prepare and serve food to customers. McDonalds restaurants are sold to individuals, selling them are another one of there important activities. ...read more.


This means that at the end of the day their profit will have gone up. All of these things help to increase profit- if McDonalds profit increases then in theory they have more money to spend on trying to become more environmentally friendly. Some of the profit could be put towards setting up an environmental group to help keep young children educated about the importance of keeping our environment clean. If there is a customer of McDonalds who regularly visits a specific store they will become familiar with staff operating at that branch, as it is a franchise. This will persuade them to continue visiting McDonalds on a regular basis and therefore sales will increase along with profit. Location of McDonalds restaurants. If McDonalds decide to locate somewhere where the price of land is fairly low then it would be very beneficial for the business. This is because it would mean they are spending less money on buying the property and therefore are able to spend more money on improving the service or quality of food. It will mean that they are more appealing to people meaning more people will dine at McDonalds- increasing sales and profit. The need for a business to locate where customers are is strong because it will increase customers visiting McDonalds by a large amount. If it is close to where large amounts of people stay then more people are able to visit the restaurant quickly and conveniently. This convenience will leave the customer feeling content with there visit so McDonalds would've met one of there main aims. McDonalds employees play a large role in there success- without them may things would not be possible. For this reason McDonalds restaurants must locate in an area where people are able to work, if there are residential areas located closely this will help as people living there would be able to work in the restaurants. ...read more.


Because Sandhu Wines is located in an area easily accessed for a large number of people customers are more likely to leave the store feeling satisfied. Mr Sandhu finds his own suppliers; if he feels his current ones are not offering value for money he can look around to find cheaper suppliers. This means than they can then reduce prices of products, to satisfy customers. Attract customers with cheap products and special offers. Being a sole trader, Mr. Sandhu has the right to provide customers with special offers of his choice, which may help him to make his shop become more competitive. Because they are situated on a busy road, whilst people are walking or driving in cars, they will see Sandhu Wines and the special offers which they have put up on the windows, this may encourage them to come in and purchase something. Because Mr. Sandhu personally transports goods from the suppliers to the shop, he is able to save money, as it is cheaper to collect goods yourself rather than having them delivered. This means he can sell products cheaper than perhaps other shops. Communicate with many customers on a one to one basis. Because Mr. Sandhu runs Sandhu Wines seven days a week he will know many customers well, so he can address and communicate with them on a one to one basis. Sandhu Wines is located close to flats and other residential areas, the same customers are likely to visit the shop more than once, so they can communicate with them regularly and they may become friends. As Mr Sandhu works and lives at the same address he may already know some customers which is good because they are then more likely to visit the shop regularly. It is normally Mr Sandhu who works on the shop floor providing customer service. This means that customers will eventually familiarize with him and therefore he will have an advantage over other shops located in the area- making his shop more competitive. ...read more.

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