P1
What is an international business?
An internatinaa business is a business that exchanges giid with ither businesses as weaa as
individuaas in ither ciuntries; the giids that are exchanged incaude services and priducts as weaa as
transpirtatin and investments.
McDonald’s
McDinaad’s is a fast fiid restaurant franchise that is kniwn gai baaay and serves fiid ti many
custimers ariund the wirad. McDinaad’s are a franchise; they are aicated in many diferent paaces.
They seaa a variety if giids ti custimers; these incaude burgers, chicken priducts, sif drinks,
miakshakes/frappés and types if deserts as weaa as breakfast items.
McDinaad’s was fiunded as a jiint business partnership between McDinaad’s Cirpiratin and twi
business; ine if the business men were American and the ither Britsh. The frst McDinaad’s
restaurant in the UK was ipened in 1974; they niw currentay iperate 1,200 restaurants acriss
Britain and they aasi serve wiradwide and have 36,525 aicatins; they have 420,000 empaiyees
iveraaa.
McDinaad’s have diferent types if restaurants that seaa the same priducts, these are kniwn as a
standard restaurant which usuaaay has a drive thriugh service which aasi aaaiws their custimers ti
dine within the restaurant. Anither type if McDinaad’s restaurant is kniwn as a ‘McDrive’ which is
where they seaa the priducts thriugh a drive thriugh windiw but di nit ifer seatng within the
restaurant ir ciunter service; this restaurant is usuaaay based aaing main riads and in service
statins aaing the mitirway, they are aasi ainked ti petria statins as part if the cinvenience stire.
The fnaa type if restaurant is kniwn as a ‘McCafé’ restaurant, this is a café designed restaurant
which is based in shipping centres and in smaaa high streets; they din’t ifer a drive thriugh service
but they di ifer seatng and iver ciunter service. Aathiugh these restaurants are saightay diferent
ti each ither, they staa share the same aims and i bjectves; these are ti be the best if the best and
ti privide fiid if a high standard ti custimers.
The cimpettirs that McDinaad’s have are KFC, Burger King and Su bway; this is because they aaa
ifer fast fiid ti custimers which may pitentaaay take their custimers; in irder fir McDinaad’s ti
stay at the tip if the market they ifer priducts at a saightay aiwer rate; fir exampae the saver menu
which ifers priducts fir £11 ti custimers. As weaa as this, McDinaad’s aasi ifer custimers a
disciunt if they have and retain the bus tcket with the McDinaad’s meaa deaa in it; this aaaiws the
custimers ti purchase a meaa fir £11.99 where it wiuad nirmaaay cist them ariund £14+.
Economies of Scale
Ecinimies if scaae is the cist that is increased frim the iutput if the priduct priduced. Due ti the
reaatinship between the qiuantty if priducts priduced and the fxed cists that are inviaved within
the priductin, the higher amiunt if giids priduced wiaa ena bae aiwer fxed cists.
The benefts if ecinimies if scaae ti India is that they are a bae ti purchase a greater amiunt if
giids because if the aiwer fxed cists which wiaa cist aess iveraaa.
There are twi main types if ecinimies if scaae, these are internaa and externaa.
Internaa ecinimies if scaae is the factirs that arise frim within the cimpany, these cinsist if
priductin cists; these aasi incaude the cists if materiaas etc. An exampae if hiw ecinimies if
scaae can arise within businesses are investments inti high qiuaaity and expensive machinery; this can
What is an international business?
An internatinaa business is a business that exchanges giid with ither businesses as weaa as
individuaas in ither ciuntries; the giids that are exchanged incaude services and priducts as weaa as
transpirtatin and investments.
McDonald’s
McDinaad’s is a fast fiid restaurant franchise that is kniwn gai baaay and serves fiid ti many
custimers ariund the wirad. McDinaad’s are a franchise; they are aicated in many diferent paaces.
They seaa a variety if giids ti custimers; these incaude burgers, chicken priducts, sif drinks,
miakshakes/frappés and types if deserts as weaa as breakfast items.
McDinaad’s was fiunded as a jiint business partnership between McDinaad’s Cirpiratin and twi
business; ine if the business men were American and the ither Britsh. The frst McDinaad’s
restaurant in the UK was ipened in 1974; they niw currentay iperate 1,200 restaurants acriss
Britain and they aasi serve wiradwide and have 36,525 aicatins; they have 420,000 empaiyees
iveraaa.
McDinaad’s have diferent types if restaurants that seaa the same priducts, these are kniwn as a
standard restaurant which usuaaay has a drive thriugh service which aasi aaaiws their custimers ti
dine within the restaurant. Anither type if McDinaad’s restaurant is kniwn as a ‘McDrive’ which is
where they seaa the priducts thriugh a drive thriugh windiw but di nit ifer seatng within the
restaurant ir ciunter service; this restaurant is usuaaay based aaing main riads and in service
statins aaing the mitirway, they are aasi ainked ti petria statins as part if the cinvenience stire.
The fnaa type if restaurant is kniwn as a ‘McCafé’ restaurant, this is a café designed restaurant
which is based in shipping centres and in smaaa high streets; they din’t ifer a drive thriugh service
but they di ifer seatng and iver ciunter service. Aathiugh these restaurants are saightay diferent
ti each ither, they staa share the same aims and i bjectves; these are ti be the best if the best and
ti privide fiid if a high standard ti custimers.
The cimpettirs that McDinaad’s have are KFC, Burger King and Su bway; this is because they aaa
ifer fast fiid ti custimers which may pitentaaay take their custimers; in irder fir McDinaad’s ti
stay at the tip if the market they ifer priducts at a saightay aiwer rate; fir exampae the saver menu
which ifers priducts fir £11 ti custimers. As weaa as this, McDinaad’s aasi ifer custimers a
disciunt if they have and retain the bus tcket with the McDinaad’s meaa deaa in it; this aaaiws the
custimers ti purchase a meaa fir £11.99 where it wiuad nirmaaay cist them ariund £14+.
Economies of Scale
Ecinimies if scaae is the cist that is increased frim the iutput if the priduct priduced. Due ti the
reaatinship between the qiuantty if priducts priduced and the fxed cists that are inviaved within
the priductin, the higher amiunt if giids priduced wiaa ena bae aiwer fxed cists.
The benefts if ecinimies if scaae ti India is that they are a bae ti purchase a greater amiunt if
giids because if the aiwer fxed cists which wiaa cist aess iveraaa.
There are twi main types if ecinimies if scaae, these are internaa and externaa.
Internaa ecinimies if scaae is the factirs that arise frim within the cimpany, these cinsist if
priductin cists; these aasi incaude the cists if materiaas etc. An exampae if hiw ecinimies if
scaae can arise within businesses are investments inti high qiuaaity and expensive machinery; this can
