Business Studies Gcse Coursework 1 Types And Styles Of Business's

707 words - 3 pages

Payment'. Many high street name are Franchises: Benetton, Mc Donalds and Pizza Hut.AdvantagesA franchisee benefits from having an already well-established brand name, and bank's are more likely to lend money to franchisee's because of this. This position is much more reliable than being a sole trader.DisadvantagesA franchisee has very limited independence and is ruled by the franchisor. The business cannot be sold, and regular 'Royalty Payments' have to be made.My DecisionI came to the conclusion that I would not like to become a franchisee. I decided this, as I had wanted to start up my own business with my own rules. I would have not been able to survive successfully as a franchisee. Multi-NationalsThese are the biggest companies in the business world, and they produce items for sale or services to more than one country. A multinational that makes and sells a number of different products is called conglomerate. Multinationals normally have their headquarters in one country. Multinationals must have strategies to cope with a number of different problems, as becoming so large is complicated. Good communication is necessary.AdvantagesThe first advantage in becoming multi-national is competition. Size can lead to lower costs of production, or may able the company to shift labour to a lower cost country. This is called economies of scale. In some industries a manufacturer can gain higher priority by having research, design facilities and development all over the world. Businesses profit from this by knowing how to cater for the local market better.DisadvantagesA business with many diversifications may lose direction. Individual sectors of the company may compete against each other. A multinational must always have clear objectives to prevent this. Multinationals may have a hard time dealing with all the laws of each company they operate...

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