P1 Business Communication

573 Words3 Pages
In this assignment I am going to describe two types of business organisations and the purposes of it. Also I am going to describe the form of ownership and the different stakeholders who influence the purpose of the organisation. The two businesses I will be describing are Tesco and McDonalds. Name of organisation: McDonalds Type of business: McDonalds is a PLC. They are under the private sector. This means there are certain people who own it. McDonald’s is in the tertiary sector which offers a fast-food service. McDonalds is a global business because they have many branches which then go across the world. It serves 64 million customers daily. McDonald’s revenue grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operation income to $3.9 billion. McDonalds UK Ltd. Employs 440000 people in this country. Purpose of the Business: The purpose McDonalds is to make profit and to provide a return for investors in the business, (That's why most businesses really exist). And to provide a service making a decent profit, off the fast food (goods). The form of ownership: McDonald’s is a franchiser. McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder is operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the

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