Merit 1 – Compare and Contrast Two Businesses

Topics: Corporation, Limited company, Stock market Pages: 3 (760 words) Published: November 1, 2010
Merit 1 – Compare and Contrast two businesses

For this assignment I am going to compare and contrast two selected businesses. I will concentrate on their ownership and their aims and objectives.

My first business is Tesco the biggest retail company in Britain. My second business is McDonald’s one of the largest franchise fast food outlets in the world.

The aim of McDonald’s is to serve good food in a friendly and fun environment and to provide good returns to their share holders. So the purpose of McDonald’s is to satisfy their customer with high quality of food, quick service and value for money.

The purpose of Tesco is to sell every day necessities to the whole population such as food, clothes, electric goods such as well as services such as banking and insurance.

The businesses are owned in two different ways. Tesco’s ownership status is a public limited company, whereas McDonald’s runs as a franchise. Tesco the public limited company has thousand shareholders. They own and control the public limited company so they will have say in major decisions In contract to McDonalds who is owned by a Franchisee who get support from a franchiser from the same parent company.

Many decisions for McDonald’s are made by the franchisee about the control, which employees to hire, services to offer, the prices of the product and so on. A Plc is controlled by a board of directors. As a public limited company anyone from the public can buy shares when they are floated on the stock market. McDonald get support from their parent company like training and giving advice to the franchisee on how the business can be run and to set up.

One of the advantages of being a franchise is that you get support from the franchisor. The business will have connections and assistance to obtaining financial support from the bank it that would be easy to buy a franchisor with high reputation because the bank would lend money as the risk of bankrupt is low.

One of the advantages...
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