Ownership and location of Tesco and McDonalds Essay

There atomic number 18 many a(prenominal) different roles of business experienceership. The four main privately pretend enterprises atomic number 18Sole bargainrs owned and brave by one person.Partnerships owned and run by cardinal or more people.Private trammel companies often a business run by a family protected by limited liability. domain limited companies salient organisations whose deals argon floated on the stock exchange.In addition in that respect atomic number 18 two different sheathsCo-operatives where a group of people run the enterprise together and sh be the profits or loses.Franchise where a grand organisation solelyows a person to sell its products and use its name in exchange for a fee and a share of the profits.All privately owned enterprises are able to be divided into two groupsThose with unlimited liability mend traders and partnershipsThose with limited liability all companies, some privilege and some co-operatives. bottomless li ability bureau that the owners are amenable for all the debts. They may fifty-fifty deplete to sell personal possessions to pay them. If this is non possible and so they leave declared shorerupt.Limited liability restricts the responsibility of being responsible for all you debts. You only feel to pay the debts to the limit of what was invested. Not usually do they deport to sell their personal possessions.There are many different advantages and disadvantages to all different types of ownershipSole traders owned and run by one individual.Advantages* The owner has full mesh of the business and all of its profits.* All profits go to the owner.* The owner seat make decisivenesss separately without the need to consult anybody else.* Can easily create a extend with customer.* Has the ability to exploit niche market.* No Set up for procedures.Disadvantages* The owner has unlimited liability.* The profits get ploughed back into the business.* To fly high the business, pay needs to be found.Partnerships Owned and run by two or more people.Advantages* The responsibility of running and managing the confederation is shared between the two partners.* Access to a wider range of skills.* more(prenominal) ideas and strategies.* Capitals from the partners give the bounce bring in more capital and expansion is possible.* great ability to gain bank loans/ financial backing.* No need to file accounts for the existence.Disadvantages* Partnerships have unlimited liability.* If a partner leaves or he/ she is non for filling his/ her position it could collide with the business.* A decision has to be made a partner can motor it upon his/ her self to make the decision and not consult the opposite partners.Private limited companies Often a family run business with the protective covering of limited liability.Advantages* Shareholders who own the company may have limited liability.* wrinkle finance and the owners finances are separate.* Can take more adven tures due to limited liability* Usually shareholders are close involved with the running of the business.* Can raise capital more easily.* More professional appearance more internal organise.Disadvantages* Shares can only be sold with the permission of the shareholders.* Shares cannot be sold to the public.* Due to their internal structure more formalities arise.* Larger over distributor point costs of running the companies.Public limited companies large organisations whose shares are floated on the stock exchange.Advantages* Shareholders who own the company have limited liability.* Business finances and the owners finances are separate.* Shares can be bought and sold on the stock exchange.* Greater ability to raise further capital and expand resources.* Additional shares can be issued for more accompaniment.* More professional appearance.Disadvantages* There is a peril of being taken over by another company with the trade of shares.* Less flexible in structure.* More formalities when dealing with decision making.* Larger overhead costs of running the company.Franchise this is a large company who you pay to use the name of.AdvantagesFor the franchisee* You leave own a business that is already running which factor it is nearly a guaranteed success.* You get out own an already realized company.* Capital should be easier to raise because you go forth be operating infra a well known name.* The franchiser will give advice foe the business running and equipment.For the franchisor* They have the possibility to expand very quickly.* It is easier to expand in foreign countries because you would be sell a franchise to somebody that knows the repair, language and people.DisadvantagesFor the franchisee* Start up cost so you can use the branded name is very costly.* A passel percentage of your profit will go to the franchiser and you will have to cloud your equipment and products from them.* You have to stick to the business core activities.For the franchiso r* They do not have full control over the organisation.Ownership of Tesco.Tesco un bid McDonalds is a public limited company (PLC). Tesco is a PLC because it is on suck a large scale. A group of partners would not be able to afford funding the company and it is super unlikely they could get big becoming loans, because Tesco is a PLC the shareholders fund the company. The shareholders fund the company by simply acquire shares. Investors acquireing shares in Tesco would recover safer profaneing because they will get limited liability. This office that only money that has been invested can be lost if Tesco fails. The shareholders do not get a profit from Tesco they make their money buy selling that shares for more than they originally paid. The advantages that Tesco have of being a PLC are thither is a limited liability for Tesco and all shareholders and it is much easier for Tesco to raise funds. The disadvantages are Tesco cannot make business decisions instantly because they need to confront company directors and study shareholders and the business can be taken over if somebody buy 51% of shares. I believe that this type of ownership is the most abstract for Tesco because they may need to raise capital fast and they dont need to be making rash decisions.Ownership of McDonalds.McDonalds is a franchise company which is completely different to Tescos PLC ownership. A franchise company allows people who currently have nothing to do with McDonalds to buy a eating place and use the already well established McDonalds name. This means that McDonalds do not need to fund their own company, the franchisees will do this. McDonalds have limited liability just like Tesco, meaning that McDonalds and franchisees can only loose investments. The advantages of McDonalds having this type of ownership for the franchisor are having the possibility to expand rapidly and the advantage for the franchisee are you will own a business that is already running which means it is nearly a guaranteed success, you will own a business that is already established, capital should be easier to raise because you will be operating under a well known name and you will have kick business advice from the franchisor.The disadvantage for the franchisor is you do not have full control over the business and the disadvantages for the franchisee are start up cost so you can use the branded name is very expensive, a represent percentage of your profit will go to the franchiser and you will have to buy your equipment and products from them and you have to stick to the business core activities. I think that this type of ownership is a good choice of ownership for McDonalds because they do not have to do research on locations because franchisees will do this. as well as McDonalds will be expanding rapidly and they do not have the risk of failing their business. They will be making profits when they arent hitherto setting up there restraints.Location.Tesco Location.To investi gate Tescos location I am going to select a small town and a large city to compare how Tesco position their workshops under different circumstances. whatever of the different circumstances I am going to look at are the size of the area in hand and the population.The town I have selected is Pembroke trail and the city I have selected is London. peoples cosmos of Pembroke Dock existence8,676Post townPEMBROKE DOCKPostcode districtSA72http//en.wikipedia.org/wiki/Pembroke_DockPopulation of London.Population Total DensityRanked 2nd7,512,4001 (mid-2006)4,758/km (mid-2006)http//en.wikipedia.org/wiki/Greater_LondonTesco localise their stores where there is a good ratio between population and competing stores. This is because it is highly unlikely Tesco could run a successful store next to an Asda store where the population of the town is 500 people. So it is important that Tesco choose their location wisely because building unsuccessful stores can be very expensive for Tesco.Tesco gener ally locate their stores on the outskirts of towns, as you can see on the below maps.Land in this area can range from 60,000 for a p raft of land where Tesco would not be able to fit a store on up to 250,000 where you still wouldnt be able to fit a store.Offers in Excess of 60,000Building P rotary at Cannons Lane, Pennar, Pembroke Dock, Pembrokeshire, Pembrokeshire250,000Plot 15 Barnlake Point, Burton, SA73Because I cannot find land that is big enough for Tesco to build a store on with adequate room for position as well as loading bays I dont feel as though I can comment on the cost of land in this area.Another Tesco stores location when I typed in London on the Tesco store locator it came back with 110 stores. This tells me that Tesco locate many stores in big cities to meet the needs of big populations.McDonalds Location.McDonalds is a franchise so it is not actually McDonalds that choose the locations of all eating houses. that the franchisors will try to locate in busy shoppi ng areas. I am going to pick a good and a pestilential example of McDonalds location and explain why I feel they are bad. On the below maps I am showing where McDonalds have recently set up a newfangled restaurant in Pembroke Dock next to the Tesco store.On both maps on the prior page you can see that the locations McDonalds have chosen both are competitor free. By this I mean that in both locations there are no other competing restaurants. This is good because McDonalds do not have to worry about losing custom to other restaurants.Also on the maps on the precedent page the McDonalds stores are in the center(a) a community. This means it should be relatively casual to find employees. This is because they are in the middle of two large populations. The populations of Haverfordwest and Pembroke Dock arePopulation of Pembroke DockPopulation8,676Post townPEMBROKE DOCKPostcode districtSA72http//en.wikipedia.org/wiki/Pembroke_DockPopulation of HaverfordwestPopulation10,8081Post town HAVERFORDWESTPostcode districtSA61, SA62http//en.wikipedia.org/wiki/HaverfordwestThe populations of these towns are on a reasonably large scale, so I think that it would be easy for McDonalds to find employees.As you can see from the maps on the previous page these stores are very close to raw material and have good travel systems around them. I think that they are in prime locations for travelling and raw materials. McDonalds will have a lot of choice for land because of the area in hand. It has a lot of budding areas in the towns.In Pembroke Dock there is now a new plot that already has a building on that McDonalds could take up. I think that this would be a more suitable location because they will be attract the custom that comes across the bridge.The ring on the unexpended of the above map is where McDonalds currently have a restaurant. The ring on the right of the above map is where property has become unoccupied. I think that McDonalds could relocate there restaurant here be cause there is a lot of traffic that come across the bridge and heads away from where the current restaurant is currently located. Although some traffic heads towards town more heads away. I have conducted my own survey to see how many cars that comes across the bridge head towards Carew and Pembroke and how many head toward Pembroke Dock over a one min interval. Below is my table of results that I recorded.Towards Pembroke Dock.Towards Pembroke and Carew.http//www.thedock.org.uk/Council%20Data/Pem_Dock_Traffic_Generators_2008%5B1%5D.pdfBoth Tesco and McDonalds could use this