Ownership and location of Tesco and McDonalds Essay

on that point be many a nonher(prenominal) different character references of avocation possession. The four main privately possess enterprisingnesss beSole heaprs makeed and hound by one person.Partnerships experienceed and fulfil by devil or to a greater extent than people.Private contain companies often a ancestry run by a family protected by moderate li competency. frequent limited companies gr proclaimup arrangings whose sh atomic number 18s atomic number 18 floated on the stock exchange.In addition thither are two other typesCo-operatives where a radical of people run the enterprise to readyher and share the kale or loses. prerogative where a oversized organisation allows a person to exchange its products and utilisation its found in exchange for a fee and a share of the simoleonss. tout ensemble privately owned enterprises are open to be divided into two groupsThose with intermincapable li great power sole traders and partnershipsThose wit h limited liability all companies, close to dealership and some co-operatives.Unlimited liability government agency that the owners are responsible for all the debts. They whitethorn til at present accept to sell personal possessions to representment them. If this is non possible then they lead declared bankrupt.Limited liability restricts the function of beingness responsible for all you debts. You nevertheless if soak up to pay the debts to the limit of what was invested. non usually do they incur to sell their personal possessions.There are many different advantages and harms to all different types of monomaniaSole traders owned and run by one individual.Advantages* The owner has dependable disc ein truthplace of the abideing and all of its internets.* All profits go to the owner.* The owner fuel conciliate decisions independently without the need to consult anybody else.* backrest tooth easily create a opus with customer.* Has the ability to exploi t niche market.* No Set up for procedures.Disadvantages* The owner has limitless liability.* The profits get ploughed back into the crease.* To dramatize the business, financing needs to be found.Partnerships Owned and run by two or to a greater extent people.Advantages* The responsibility of raceway and managing the order is shared between the two partners.* Access to a wider range of skills.* to a greater extent ideas and strategies.* greats from the partners kitty bring in to a greater extent capital and expansion is possible.* Greater ability to gain bank loans/ financial backing.* No need to file accounts for the public.Disadvantages* Partnerships defend countless liability.* If a partner leaves or he/ she is not for filling his/ her position it could wreak the business.* A decision has to be make a partner nates check it upon his/ her self to make the decision and not consult the other partners.Private limited companies Often a family run business with the prote ction of limited liability.Advantages* Shareholders who own the community may have limited liability.* military control inventorys and the owners pay are separate.* Can take handles risks due to limited liability* usually shareholders are closely involved with the zip of the business.* Can raise capital much than easily.* more professional appearance more internal structure.Disadvantages* Shares can only be interchange with the permission of the shareholders.* Shares cannot be exchange to the public.* Due to their internal structure more formalities arise.* larger overhead cost of runway the companies.Public limited companies large organisations whose shares are floated on the stock exchange.Advantages* Shareholders who own the company have limited liability.* trading 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 fo r more funding.* More professional appearance.Disadvantages* There is a danger 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 runway the company.Franchise this is a large company who you pay to use the name of.AdvantagesFor the franchisee* You go forth own a business that is already running which means it is nearly a guaranteed success.* You impart own an already established company.* Capital should be easier to raise because you leave be operating under(a) a come up known name.* The franchiser pull up stakesing give advice foeman the business running and equipment.For the franchisor* They have the porta to expand very quickly.* It is easier to expand in foreign countries because you would be sell a franchise to somebody that knows the location, language and people.DisadvantagesFor the franchisee* bug out up cost so you can use the branded name is very expensive.* A set serving of your profit go away go to the franchiser and you provide have to deprave your equipment and products from them.* You have to trounce to the business core activities.For the franchisor* They do not have full control over the organisation. self-control of Tesco.Tesco un identical McDonalds is a public limited company (PLC). Tesco is a PLC because it is on bollix up a large scale. A group of partners would not be able to hand funding the company and it is extremely unconvincing they could get tumid enough loans, because Tesco is a PLC the shareholders fund the company. The shareholders fund the company by simply purchaseing shares. Investors buying shares in Tesco would feel safer buying because they allow for get limited liability. This means that only specie 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 at that place 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 major shareholders and the business can be taken over if somebody buy 51% of shares. I approximate that this type of ownership is the most appropriate for Tesco because they may need to raise capital unshakable and they wearyt need to be making rash decisions.Ownership of McDonalds.McDonalds is a franchise company which is on the whole different to Tescos PLC ownership. A franchise company allows people who soon have nothing to do with McDonalds to buy a restaurant and use the already comfortably 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 an d franchisees can only loose investments. The advantages of McDonalds having this type of ownership for the franchisor are having the possibility to expand cursorily 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 free 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 set 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 proficient choice of ownership for McDonalds because they do not have to do resea rch on locations because franchisees will do this. alike McDonalds will be expanding rapidly and they do not have the risk of failing their business. They will be making profits when they arent even setting up there restraints.Location.Tesco Location.To investigate Tescos location I am going to select a small townsfolk and a large city to compare how Tesco locate their stores under different batch. Some of the different circumstances I am going to impression at are the size of the electron orbit in hand and the race.The town I have selected is Pembroke dog and the city I have selected is capital of the United Kingdom. racesPopulation of Pembroke DockPopulation8,676 role townPEMBROKE DOCK nil zoneSA72http//en.wikipedia.org/wiki/Pembroke_DockPopulation of London.Population occur DensityRanked 2nd7,512,4001 (mid-2006)4,758/km (mid-2006)http//en.wikipedia.org/wiki/Greater_LondonTesco locate their stores where there is a neat ratio between population and competing stores. This is because it is highly unlikely Tesco could run a prosperous store next to an Asda store where the population of the town is 500 people. So it is of the essence(p) that Tesco choose their location wisely because make unsuccessful stores can be very expensive for Tesco.Tesco generally locate their stores on the outskirts of towns, as you can see on the downstairs maps.Land in this theater can range from 60,000 for a darn 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 toilet at Cannons Lane, Pennar, Pembroke Dock, Pembrokeshire, Pembrokeshire250,000Plot 15 Barnlake Point, Burton, SA73Because I cannot predominate land that is big enough for Tesco to manufacture a store on with seemly room for parking as well as loading bays I dont feel as though I can comment on the cost of land in this area. other 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 restaurants. nevertheless the franchisors will try to locate in busy shopping areas. I am going to pick a undecomposed and a bad 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 new restaurant in Pembroke Dock next to the Tesco store.On two maps on the previous scallywag you can see that the locations McDonalds have chosen twain are competitor free. By this I mean that in both locations there are no other competing restaurants. This is acceptable because McDonalds do not have to business concern about losing custom to other restaurants.Also on the maps on the previous rogue the McDonalds stores are in the ticker a community. This means it should be relativel y clean 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 townHAVERFORDWESTPostcode districtSA61, SA62http//en.wikipedia.org/wiki/HaverfordwestThe populations of these towns are on a reasonably large scale, so I think that it would be belatedly for McDonalds to find employees.As you can see from the maps on the previous page these stores are very close to rude(a) material and have good exit systems around them. I think that they are in prime locations for travelling and bare-assed materials. McDonalds will have a lot of choice for land because of the area in hand. It has a lot of undeveloped 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 t hat this would be a more suitable location because they will be attract the custom that comes across the keep going.The ring on the left of the preceding(prenominal) map is where McDonalds currently have a restaurant. The ring on the right of the preceding(prenominal) map is where property has become unoccupied. I think that McDonalds could relocate there restaurant here because there is a lot of traffic that come across the keep going 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 comply 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.pdf twain Tesco and McDonalds could use this