Ownership and location of Tesco and McDonalds Essay

There argon many distinct types of traffic featureership. The four main privately ca pulmonary tuberculosised enterprises atomic number 18 restore traders owned and draw by unrivaled person.Partnerships owned and run by two or more passel.Private exceptional companies often a melody run by a family protected by express financial obligation.Public check companies heroic organisations whose shares are floated on the stock exchange.In addition at that place are two other typesCo-operatives where a radical of people run the enterprise together and share the scratch or loses.Franchise where a self-aggrandising organisation all(a)ows a person to handle its products and intake its name in exchange for a fee and a share of the winnings.All privately owned enterprises are able to be divided into two free radicalsThose with un modified liability sole traders and partnershipsThose with limited liability all companies, some(a) franchise and some co-operatives.Unlimi ted liability actor that the proprietors are responsible for all the debts. They may even crap to interchange personal possessions to give birth them. If this is not possible then they result state bankrupt.Limited liability restricts the tariff of being responsible for all you debts. You exactly have to pay the debts to the limit of what was invested. Not usually do they have to sell their personal possessions.There are many different advantages and outrages to all different types of ownershipSole traders owned and run by one individual.Advantages* The owner has full entertain of the business and all of its scratchs.* All expediencys go to the owner.* The owner empennage make finales independently without the regard to advert anybody else.* Can easily create a report with customer.* Has the ability to lick niche market.* No Set up for procedures.Disadvantages* The owner has unlimited liability.* The profits get ploughed back into the business.* To flourish the bu siness, financing needs to be found.Partnerships Owned and run by two or more people.Advantages* The responsibility of cut and managing the fraternity is shared between the two partners.* Access to a wider range of skills.* More ideas and strategies.* Capitals from the partners burn bring in more uppercase and expansion is possible.* Greater ability to gain bank loans/ financial backing.* No need to file accounts for the public.Disadvantages* Partnerships have unlimited liability.* If a partner leaves or he/ she is not for filling his/ her position it could affect the business.* A decision has to be made a partner tramp take it upon his/ her self-importance to make the decision and not consult the other partners.Private limited companies Often a family run business with the protection of limited liability.Advantages* Shareholders who own the corporation may have limited liability.* Business finances and the owners finances are separate.* Can take more risks receivable to li mited liability* Usually shareholders are closely involved with the running of the business.* Can prink capital more easily.* More professional appearing more internal structure.Disadvantages* Shares can only be sold with the consent of the shareholders.* Shares cannot be sold to the public.* Due to their internal structure more formalness arise.* Larger smash costs of running the companies.Public limited companies ample 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 gunstocking.* More professional appearance.Disadvantages* There is a danger of being interpreted over by another company with the trade of shares.* Less fictile in structure.* More formalities when dealing with decisi on making.* Larger over take costs of running the company.Franchise this is a large company who you pay to use the name of.AdvantagesFor the franchisee* You will own a business that is already running which office it is nearly a guaranteed success.* You will own an already established company.* Capital should be easier to raise because you will be in operation(p) under a soundhead known name.* The franchiser will give advice enemy 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 selling a franchise to psyche that knows the location, language and people.DisadvantagesFor the franchisee* 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.* You have to flag to the business core activities.For the franchisor* They do not have full control over the organisation.Ownership of Tesco.Tesco unlike 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 enough loans, because Tesco is a PLC the shareholders fund the company. The shareholders fund the company by simply buying shares. Investors buying shares in Tesco would sense of smell safer buying because they will get limited liability. This means that only silver 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 before paid. The advantages that Tesco have of being a PLC are there 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 director s and major shareholders and the business can be taken over if somebody buy 51% of shares. I think that this type of ownership is the most appropriate 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 restaurant 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 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 last out 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. Also 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 dismissal to select a small townspeoplesfolk and a large metropolis to compare how Tesco invest their stores under different raft. Some of the different circumstances I am firing to look at are the coat of the area in hand and the population.The town I have selected is Pembroke chase and the city I have selected is London.PopulationsPopulation of Pembroke give chasePopulation8,676 denounce townPEMBROKE DOCKPostcode districtSA72http//en.wikipedia.org/wiki/Pembroke_DockPopulation of London.Population tally 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 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 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 below subprograms. reach in this area can range from 60,000 for a plot of field 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 Plot at Cannons Lane, Pennar, Pembroke Dock, Pembrokeshire, Pembrokeshire250,000Plot 15 Barnlake Point, Burton, SA73Because I cannot rise up get that is big enough for Tesco to build a store on with adequate room for parking as well as loading bays I dont feel as though I can comment on the cost of priming 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 restaurants. But the franchisors will discover to locate in busy shopping areas. I am goin g to pick a good 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 late set up a new restaurant in Pembroke Dock next to the Tesco store.On both maps on the previous varlet 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 rough losing custom to other restaurants.Also on the maps on the previous page the McDonalds stores are in the middle a community. This means it should be relatively easy 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, SA62htt p//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 get systems around them. I think that they are in prime locations for traveling and raw 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 that this would be a more sui bow location because they will be tempt the custom that progresss across the bridge.The ring on the left of the in a higher place 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 because there is a lot of traffic t hat 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 bailiwick 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 hour 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