Comparison of Two Companies Tesco and McDonalds


Few brief about those two companies started with Tesco:

  1. Tesco ( TESCO , Taiwan and Malaysia translated as Tesco, Chinese mainland called Tesco), is the United Kingdom , a large supermarket chain. It is now the UK’s largest retailer, is second only to Wal-Mart ( USA ), Carrefour ( France ) the world’s third largest supermarket group.
  2. Tesco first to sell food started, and gradually extended to clothing , appliances , customer Finance services, Internet services, auto insurance and telecommunications services. By the end of 2008, TESCO turnover of more than 480 million pounds.


TESCO British company is divided into five types, namely:

  1. Large stores (Tesco Extra) is a large Tesco warehouse stores, supermarket sales of all goods can be bought here. King’s first store opened in 1997, to the 2004/05 financial year, the British mega-stores have developed to 100. In general, the area of large stores are about 6300 square meters, in January 2006 in Slough built an area of about 18,300 square meters, the area has become the UK’s largest one large store.

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  2. Standard shop (Tesco Superstores) is a standard supermarket TESCO form, which sells food and a small amount of non-food goods. It is the most common Tesco store is also its main source of income.
  3. City store (Tesco Metro) is between the size of the store in the form of a standard shop and convenience store TESCO between generally located in the city center or the main street location.
  4. Convenience stores (Tesco Express) is a small-scale shops, mainly in sales of food-based, widely distributed in the busy city area or shopping area.

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    Until February 2006, the UK’s Tesco convenience store over 650.

  5. One-stop shop (One Stop) is not the only use “TESCO” the name of the store, is the smallest shops, they are often used by some small retailers TESCO merger, but was allowed to keep the original name.

Business oversea

May 2005, Tesco announced a trial operation in the form of non-food stores, and opened its first store in the same year in October – TESCO families, especially shop (Tesco Homeplus), this warehouse stores selling all commodities other than food, and the Tesco plans to open in 2006 at least another three such shops. 2007 Tesco Stores distribution statistics:

TESCO mainly in the business of other countries, a joint venture of the form, for example, in South Korea Samsung cooperation. TESCO in Taiwan has used the Chinese translation for “Tesco.” Tesco’s strategy to enter the Taiwan market is wholly taken way, but this strategy leads to Tesco stores in Taiwan market development as fast as Carrefour and RT-Mart , it has been unable to achieve economies of scale . Thus, in September 2005, TESCO announced the sale of its operations in Taiwan to Carrefour and Carrefour bought in the Czech and Slovak stores. In Ireland, TESCO is the major food retailers.TESCO also plans to enter the 60 million dollars of commercial profits US retail market, decided in 2007 to open several stores on the West Coast. Recently, TESCO announced in India to open a series of stores. [2] [3] [4] [5] [6] in September 2011, TESCO stores in Japan shut down part. April 17, 2013 Tesco announced the withdrawal of the US market, and sold in the United States 199 Fresh & Easy stores.


The McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. A McDonald’s restaurant is operated by either a franchisee, an affiliate, or the actual corporation itself.

The McDonald’s Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, the company had annual revenues of $27.5 billion and profits of $5.5 billion.] According to a 2012 BBC report, McDonald’s is the world’s second largest private employer—behind Walmart—with 1.9 million employees, 1.5 million of whom work for franchises. McDonald’s primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, anddesserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries.


The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California (at34.1255°N 117.2946°W). Their introduction of the “Speedee Service System” in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald’s was a man with a chef’s hat on top of a hamburger-shaped head whose name was “Speedee”. By 1967, Speedee was eventually replaced with Ronald McDonald when the company first filed a U.S. trademark on a clown-shaped man having puffed-out costume legs. On May 4, 1961, McDonald’s first filed for a U.S. trademark on the name “McDonald’s” with the description “Drive-In Restaurant Services”, which continues to be renewed through the end of December 2009.

On September 13 that same year, the company filed a logo trademark on an overlapping, double-arched “M” symbol. By September 6, 1962, this M-symbol was temporarily disfavored, when a trademark was filed for a single arch, shaped over many of the early McDonald’s restaurants in the early years. Although the “Golden Arches” logo appeared in various forms, the present version as a letter “M” did not appear until November 18, 1968, when the company applied for a U.S. trademark. The present corporation dates its founding to the opening of a franchised restaurant by Czech American businessman Ray Kroc in Des Plaines, Illinois on April 15, 1955, the ninth McDonald’s restaurant overall; this location was demolished in 1984 after many remodels. Kroc later purchased the McDonald brothers’ equity in the company and led its worldwide expansion, and the company became listed on the public stock markets ten years later.

Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast-food industry. Kroc and the McDonald brothers all feuded over control of the business, as documented in both Kroc’s autobiography and in the McDonald brothers’ autobiography. The San Bernardino restaurant was demolished in 1976 (1971, according to Juan Pollo) and the site was sold to the Juan Pollo restaurant chain. This area now serves as headquarters for the Juan Pollo chain, as well as a McDonald’s and Route 66 museum. With the expansion of McDonald’s into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.


McDonald’s Plaza, located in Oak Brook, Illinois is the headquarters of McDonald’s The McDonald’s headquarters complex, McDonald’s Plaza, is located in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook. McDonald’s moved into the Oak Brook facility from an office within theChicago Loop in 1971.

Facts and figures

By 1993, McDonald’s had sold more than 100 billion hamburgers. The once widespread restaurant signs that boasted the number of sales, such as this one in Harlem, were left at “99 billion” because there was only space for two digits.

The McDonald’s in Northport, Alabama commemorates President Ronald Reagan’s visit McDonald’s restaurants are found in 118 countries and territories around the world and serve 68 million customers each day. McDonald’s operates over 35,000 restaurants worldwide, employing more than 1.7 million people. The company also operates other restaurant brands, such as Piles Café. Focusing on its core brand, McDonald’s began divesting itself of other chains it had acquired during the 1990s.

The company owned a majority stake in Chipotle Mexican Grill until October 2006, when McDonald’s fully divested from Chipotle through a stock exchange. Until December 2003, it also owned Donatos Pizza. On August 27, 2007, McDonald’s sold Boston Market to Sun Capital Partners. Notably, McDonald’s has increased shareholder dividends for 25 consecutive years, making it one of the S&P 500 Dividend Aristocrats. In October 2012, its monthly sales fell for the first time in nine years.

Board of directors

As of November 2014, the Board of directors had the following members: Andrew J. McKenna, Chairman Susan E. Arnold, Operating Executive, Global Consumer & Retail Group of The Carlyle Group Robert A. Eckert, Operating Partner of Friedman Fleischer & Lowe Enrique Hernandez, Jr., President and CEO of Inter-Con Security Jeanne P. Jackson, President, Product and Merchandising for Nike, Inc. Richard H. Lenny, Operating Partner of Friedman Fleischer & Lowe Walter E. Massey, President of the School of the Art Institute of Chicago Cary D. McMillan, CEO of True Partners Consulting LLC Sheila A. Penrose, Non-executive Chairman of Jones Lang LaSalle John W. Rogers, Jr, Chairman and CEO of Ariel  Investments Roger W. Stone, Chairman and CEO of KapStone Paper and Packaging Donald Thompson, President and CEO Miles D. White, Chairman and CEO of Abbott Laboratories

Types of restaurants

Most standalone McDonald’s restaurants offer both counter service and drive-through service, with indoor and sometimes outdoor seating. Drive-Thru, Auto-Mac, Pay and Drive, or “McDrive” as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the latter two steps are frequently combined; it was first introduced in Arizona in 1975, following the lead of other fast-food chains. The first such restaurant in Britain opened at Fallowfield, Manchester in 1986.[26]

A Montevideo McCafé

In some countries, “McDrive” locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service. There are also a few locations, located mostly in downtown districts, that offer Walk-Thru service in place of Drive-Thru. To accommodate the current trend for high quality coffee and the popularity of coffee shops in general, McDonald’s introduced McCafé, acafé-style accompaniment to McDonald’s restaurants in the style of Starbucks. McCafé is a concept created by McDonald’s Australia, starting with Melbourne in 1993. Today, most McDonald’s in Australia have McCafés located within the existing McDonald’s restaurant. InTasmania, there are McCafés in every store, with the rest of the states quickly following suit.

After upgrading to the new McCafé look and feel, some Australian stores have noticed up to a 60% increase in sales. As of the end of 2003 there were over 600 McCafés worldwide. Some locations are connected to gas stations/convenience stores,[unreliable source?] while others called McExpress have limited seating and/or menu or may be located in a shopping mall. Other McDonald’s are located in Walmart stores. McStop is a location targeted at truckers and travelers which may have services found at truck stops. Since 1997, in addition to many in Israel, one kosher McDonald’s is located in the Abasto mall, in Buenos Aires, Argentina.

Global operations

Countries with McDonald’s restaurants, showing their first year with its first restaurant McDonald’s has become emblematic of globalization, sometimes referred to as the “McDonaldization” of society. The Economist newspaper uses the “Big Mac Index”: the comparison of a Big Mac’s cost in various world currencies can be used to informally judge these currencies’ purchasing power parity. Norway has the most expensive Big Mac in the world as of July 2011, while the country with the least expensive Big Mac is India (albeit for a Maharaja Mac—the next cheapest Big Mac is Hong Kong).

A McDonald’s Ebi Feast meal sold at Singapore branches in November 2013 Thomas Friedman once said that no country with a McDonald’s had gone to war with another However, the “Golden Arches Theory of Conflict Prevention” is not strictly true. Exceptions are the 1989 United States invasion of Panama, NATO’s bombing of Serbia in 1999, the 2006 Lebanon War, and the2008 South Ossetia war. McDonald’s suspended operations in its corporate-owned stores in Crimea after Russia annexed the region in 2014.

On 20 August 2014, as tensions between the United States and Russia strained over events in Ukraine, and the resultant U.S. sanctions, the Russian government temporarily shut down four McDonald’s outlets in Moscow, citing sanitary concerns. The company has operated in Russia since 1990 and at August 2014 had 438 stores across the country. On 23 August 2014, Russian Deputy Prime Minister Arkady Dvorkovich ruled out any government move to ban McDonald’s and dismissed the notion that the temporary closures had anything to do with the sanctions.


Introduction In this coursework I am going to compare the two companies Tesco’s and McDonalds and their aims and objectives. Both companies are two well known companies. The main difference between the two is that Tesco’s is a huge supermarket which sells a variety of products, such as food, clothes, electrical goods, cosmetics, and etc and McDonalds is a fast food venue. The reason for why I chose two contrasting companies is because it would be interesting to see how each company’s aims and objectives helps them to be so successful.

Obviously the aims and objectives will vary from one another but their also may be some similarities, even though the companies ate two separate stores. Definitions of aims, objectives and business activities

  • Aim – An aim is a purpose which is a anticipated outcome that is intended or that guides your planned actions. An aim is a set target which leads on to success in your goal.
  • Objectives – The smaller targets or steps which have to be taken in order to achieve your aim or goal.
  • Business activities – is an activity undertaken as part of a commercial enterprise The company I am first going to research will be Tesco Business activities for Tesco:

Tesco’s aims and objectives Aims


I will now be finding out the aims, objectives and business activities of McDonalds About McDonalds McDonalds began with one restaurant in the US in 1955 and today there are more than 26,500 restaurants in over 119 countries. McDonalds first opened in the UK in 1974. More than 2.5 million people in this country trust McDonalds to give them food of a high standard, quick service and value for money. In my opinion McDonalds create a high standard of customer satisfaction. My reason for thinking is this because customer convenience and research is driving force behind new restaurant locations – which had led to new McDonalds in sites as varied as cross- channel ferries, a bowling alley and London’s former county hall.

Currently there are more than 1000 McDonald’s restaurants throughout the UK. Main Aim & Objectives of McDonalds McDonalds’ aim is to be the ‘world’s best quick service restaurant experience. This means running and opening great restaurants and providing exceptional quality, service, cleanliness and value, so that they make every customer in every restaurant smile. McDonalds targets primarily children (Happy Meal, toys, and adverts) in the hope to build a life long customer relationship and future brand loyalty. McDonalds focuses on maintaining a powerful brand to differentiate its core products (Big Mac, French Fries)

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.


The advantages of using beak even analysis is the following: . It’s visual and easier to understand . It shows the amount of profit and loss for the company Also to see the effectiveness on the break even point. Output is measured on the horizontal axis. Which means Revenue costs and profits is measured on the vertical axis. A fixed cost is the amount of money that stays the same To find out the total cost we need to use the formulae we have to use is fixed costs +variable costs. The break even analysis helps the companies to achieve their aims and objectives.

However it helps the company to keep a estimate of the actual amount of the money taken in etc. it helps the companies aims as they can figure out what the actual profit and loss has been, taken by the break even chart. Tesco’s break even chart The use of graphs is helpful in break-even analysis/ it is possible to identify the break-even point by plotting the total costs (TC) and total revenue (TR) equation on a graph The reason why break even analysis is vital is because the break-even chart is an easy visual means of analysing the firms financial position at different levels of output. The chart can also be used to show the effect on the break-even point.

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Comparison of Two Companies Tesco and McDonalds. (2016, Sep 18). Retrieved from

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