Business studies – Foundation Essay
McDonald’s vision is to be the UK’s best quick service restaurant experience. McDonalds now serves over 45 million customers every day. McDonalds customers are mainly those young people, student, families, children’s and single young people. McDonald’s restaurants are family restaurants, and they make up by far the largest number of the 2. 5 million customers we serve every day in the UK The location of the business depends on certain things. Some businesses locate in particular area. For the reason that they may need to be near to: natural recourses, transport link, customers or because it has low cost of labour.
McDonalds business is located on the main street along with a large car park and that make’s it straightforward for drivers so that the customers won’t have to worry where to park, additionally it’s not far from Leytonstone underground which make’s it near to rivals. McDonalds is also located near to Leytonstone shopping centre and that is a big advantage for them but from being located to all that there is one disadvantage which is that the cost of land my be higher. That is why some times it is smaller in size Dixie’s is located on the main road
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The reason from it being located there is so that they can be near to their customers which will bring more profit to the business it is also easier for the suppliers to transport their goods to the business. The stakeholders have a big impact on business, for McDonalds shareholder are the most important stakeholder for the reason that they have invested in the business and their interest is the profit made from their shares. Customers are important and they are taken into account (their view wear the business) customers interest is to keep them happy and listening to them.
The government is also one of the stakeholder, they can have influence on the business and the way it is run, they tax the business and invest it on other areas i. e. education, health service and transport, the government also cover all laws. Dixie’s stakeholders are customers that are interested in getting good service, after sale service as well as having help and advised. The owner is one of the stakeholders and their interest goes on earning more profit from their business. The local community and government as a stakeholder are interesting in the business.
Both Dixie’s and McDonald’s activity is retailing which is selling fast food that’s why it will need to be near to customers and markets. The location of McDonald’s as it’s a large business and also large in size, depends on issues such as the cost of the land. It would locate where the cost of land is cheap and near to transport links where it would be easy for customers to reach. A smaller business such as Dixie’s, would locate in an area where there is more if it customers and where there is less competitors because more compatriots means more risk of loosing customers.
The ownership a sole trader such as Dixie’s is one person, so he runs the business and decides what product to by and how much will it be sold for. The investment of the ownership is limited for a sole trader such as Dixie’s because he would not have enough capital and he would not take any risks that could get hem bust for the reason that has unlimited liability, so if Dixie’s went bankrupt the owner could lose his own personal position in order to pay for the debit
McDonalds is a known as a PLC company, which has lots of shareholders, which mean that the have more capital that they an invest to expand the business, they will decides for example whether they need to lunch a new brand of sandwich and to find the best suppliers for their products. McDonalds is more likely to take risks, so if the business went bankrupt, McDonalds will only lose what he had invested in the business because of his limited liability so if Mc