Samina Khasiya
Unit 1 - Exploring Business
Assignment 1
Miss Akhtar
Operation of the business
McDonalds was originally a small burger joint owned by two brothers Dic and Mac McDonald. Ray
Rock started it all when he bought a franchise of the burger joint in 1955 and 5 years later, he
bought the exclusive rights of the name, McDonalds. 1 Gradually the food menu has diverted from
selling chicken, cheese and fish filet meals to breakfast combos mainly targeting parents with young
children, young children, business customers, and teenagers. 2 McDonald’s headquarters is based in
Chicago, Illinois, United States amongst the largest of cities. 3
The British Heart Foundation (BHF) is a charity organisation in the United Kingdom. It funds research
to beat heartbreak from heart and circulatory diseases and their risk factors. “We fund over £100
million of research each year into all heart and circulatory diseases and the things that cause them.
Heart diseases. Stroke. Vascular dementia. Diabetes. They're all connected, and they're all under our
microscope.”4
Structure of the business
McDonalds and BHF are private limited companies. 5 A private limited company is a company where
every person has shares of the business which are privately owned. This would benefit McDonalds
and BHF as this type of ownership is the most likely to be lent to because there is a high financial
security which comes with the business. Also McDonalds and BHF will gain more trust with the
public and the capital can be raised by selling shares. Another benefit is that all liabilities are limited
to everyone’s individual share which means that if there are any debts or loss within part of the
business, it will only be liable to the particular shareholder of that area. However this type of
ownership is expensive to maintain and all financial affairs are public. This means the businesses
internal information has no privacy and this limits investments. As McDonalds is a global, private
limited company, this means that they have shareholders across the world which diversifies their
decisions and ideas when wanting to meet customers’ needs in different sectors of the world. Also, it
can make it easier to borrow money and raise capital in the different countries the shareholders
operate in.
The McDonalds and BHF companies are large size types as it has over 100,000
employees/volunteers.67 The advantage that large businesses have is that typically, they are more
established and have greater access to funding. It is only in a large business that every person can be
put on the job that he can best perform. McDonalds and BHF thus gets the best out of every person
that gets employed. McDonalds and BHF will also have a strong brand recognition which help to
increase sales and donations by popularity. The popularity is enhanced as McDonald’s trade
1
https://www.mcdonalds.com.ph/content/page/about
2
https://www.quora.com/What-is-the-target-market-of-McDonald-s
3
https://www.google.co.uk/search?safe=strict&rlz=1C1GCEV_enGB831GB832&q=Where+is+McDonald
%27s+main+headquarters+located
%3F&sa=X&ved=2ahUKEwju3f3h3qHgAhXzURUIHVTeDtoQzmd6BAgFEAc&biw=1280&bih=882
4
https://www.bhf.org.uk/what-we-do/where-your-money-goes
5
https://heyleungbusinessblog.weebly.com/blog/mcdonalds-private-sector-or-public-sector
6
https://www.statista.com/statistics/819966/mcdonald-s-number-of-employees/
7
https://www.bhf.org.uk/how-you-can-help/volunteer
Unit 1 - Exploring Business
Assignment 1
Miss Akhtar
Operation of the business
McDonalds was originally a small burger joint owned by two brothers Dic and Mac McDonald. Ray
Rock started it all when he bought a franchise of the burger joint in 1955 and 5 years later, he
bought the exclusive rights of the name, McDonalds. 1 Gradually the food menu has diverted from
selling chicken, cheese and fish filet meals to breakfast combos mainly targeting parents with young
children, young children, business customers, and teenagers. 2 McDonald’s headquarters is based in
Chicago, Illinois, United States amongst the largest of cities. 3
The British Heart Foundation (BHF) is a charity organisation in the United Kingdom. It funds research
to beat heartbreak from heart and circulatory diseases and their risk factors. “We fund over £100
million of research each year into all heart and circulatory diseases and the things that cause them.
Heart diseases. Stroke. Vascular dementia. Diabetes. They're all connected, and they're all under our
microscope.”4
Structure of the business
McDonalds and BHF are private limited companies. 5 A private limited company is a company where
every person has shares of the business which are privately owned. This would benefit McDonalds
and BHF as this type of ownership is the most likely to be lent to because there is a high financial
security which comes with the business. Also McDonalds and BHF will gain more trust with the
public and the capital can be raised by selling shares. Another benefit is that all liabilities are limited
to everyone’s individual share which means that if there are any debts or loss within part of the
business, it will only be liable to the particular shareholder of that area. However this type of
ownership is expensive to maintain and all financial affairs are public. This means the businesses
internal information has no privacy and this limits investments. As McDonalds is a global, private
limited company, this means that they have shareholders across the world which diversifies their
decisions and ideas when wanting to meet customers’ needs in different sectors of the world. Also, it
can make it easier to borrow money and raise capital in the different countries the shareholders
operate in.
The McDonalds and BHF companies are large size types as it has over 100,000
employees/volunteers.67 The advantage that large businesses have is that typically, they are more
established and have greater access to funding. It is only in a large business that every person can be
put on the job that he can best perform. McDonalds and BHF thus gets the best out of every person
that gets employed. McDonalds and BHF will also have a strong brand recognition which help to
increase sales and donations by popularity. The popularity is enhanced as McDonald’s trade
1
https://www.mcdonalds.com.ph/content/page/about
2
https://www.quora.com/What-is-the-target-market-of-McDonald-s
3
https://www.google.co.uk/search?safe=strict&rlz=1C1GCEV_enGB831GB832&q=Where+is+McDonald
%27s+main+headquarters+located
%3F&sa=X&ved=2ahUKEwju3f3h3qHgAhXzURUIHVTeDtoQzmd6BAgFEAc&biw=1280&bih=882
4
https://www.bhf.org.uk/what-we-do/where-your-money-goes
5
https://heyleungbusinessblog.weebly.com/blog/mcdonalds-private-sector-or-public-sector
6
https://www.statista.com/statistics/819966/mcdonald-s-number-of-employees/
7
https://www.bhf.org.uk/how-you-can-help/volunteer
