Mgt 401 Week 2 Essay Example for Free

Mgt 401 Week 2 Essay Business Model Comparison Most small businesses require some outside funding. Not many entrepreneurs have enough personal capital to open and maintain funding for a business. To attract investors and attain partnerships, a business owner should consider a business model necessary. This paper will compare two restaurant businesses, identify the business model and forms of ownership for each business by completing a Comparison of Business matrix, describe benefits by building a sustainable competitive advantage, and giving advantages and disadvantages of each business ownership. Great introduction. You state the purpose and what you plan to address! McDonald’s restaurants are among the most recognizable in the world. Their quintessential arches can be identified in almost every country. This fast-food mogul is one of the biggest and most profitable corporations in the industry (what industry? Make sure you provide information on the restaurant industry). Serving as a polar opposite is Datillo’s restaurant in Hemet, California. This small restaurant is known as the only fine dining experience in town and has only one location. The companies both represent the polar opposites of forms of business ownership. Comparison of Businesses Matrix |Comparison Items |McDonald’s |Datillo’s | | |Fast food, low quality, low prices. |Sit-down restaurant, high quality, and | | | |mid-level prices | |Value Proposition |â€Å"We place the customer experience at the core|â€Å"Welcome home, here you can enjoy a casual | | |of all we do† |lunch or dinner in a warm, festive | | | (Values In Action, 2013). |atmosphere.† | | | | (Datillos Ristorante: About Us, 2013). | |Target Market |All Markets, all classes |All Markets, all classes | |Value Chain |Attractive to people looking for inexpensive |Attractive to people looking for a fine dining| | |and fast food. Fast growth rate. |experience. Can compete with rivals on quality| | | |and service. | |Revenue |In 2012 gross income was $27.6 Billion. |In 2012 gross income was | | | |$459,000. | |Position |More opportunity for expansion and |Unique cuisine (niche) offers competitive | | |competitive advatange |advantage, less opportunity for expansion | |Competitive St rategy |Serving food at the lowest possible price |Only fine dining in town. Authentic Italian | | |while reserving as much quality. Also reliant|food, very high quality products. | | |on nostalgia to bring customers back. | | |Form of Ownership |Corporation: When a business is owned by |Sole Proprietorship: a business that is owned | | |multiple people and run by lower-lying |and managed by one person. | | |managers and employees. | | Good information! Benefits To Building A Competitive Advantage When evaluating the benefits of each business, it is important to consider the size of each business. As an example, both sole proprietorships and partnerships are relatively small in size and may perhaps provide more personalized service to each of their clients. In many businesses, customers appreciate personalized service and may in turn hire small businesses for that service. On the other hand, a larger business, like McDonald’s, typically is composed of more resources and may offer the prospective customer a lower price. Another competitive advantage of a smaller business, like Datillo’s, is the ability to provide customers with a higher level of quality. Because customers of small businesses deal more closely with a ‘tight nit’ group of employees, the quality and service provided to the customer is much greater than a larger corporation composed of numerous locations. Both small and large businesses each have distinct advantages that enable them each to thrive. Although some customers may appreciate the more personalized service of small businesses, others may prefer a lower price and a larger name brand. Make sure paragraphs are a minimum of 3 sentences! Advantages and Disadvantages of Business Ownership McDonald is known for the quality the restaurant serves, and the opportunities the McDonald restaurant offer. McDonalds has been number one in the fast-food market in the United States, and the most memorable brands, products, and mascots. McDonalds franchise owner can be safer than lesser-known franchises because the McDonalds name and operational model comes packaged with its own legion of loyal customers and industry-best practices for restaurant success. A franchise store such as McDonalds can help business owners to achieve financial independence by associating with an international powerhouse that can almost guarantee a certain degree of success. Another advantages of McDonald have is that McDonald’s cis that they can invest behind any market research it does and eliminates the need for a franchisee to do expensive research. Although McDonald it has its advantages, there are disadvantages associate with McDonalds. The restaurants have been target in a battle against what has been term the obesity epidemic, casting McDonalds outlets along with their owners in a highly negative light in the media, and their communities. McDonalds and its peers respond to this negativity by attempting to add healthy options to their menu, but the stigma is likely to linger. One of the advantages Dattilo’s Restaurants is that the restaurant’s offers an extensive classic Italian menu, comprised of items made from locally sourced premium quality ingredients, cooked to orde r for each guest. The restaurant uses authentic and healthy Italian accent. Dattilo’s also offers Internet special discounts and family gathering for its customers (Dattilo’s Ristorante, 2013). The disadvantage is Dattilo’s restaurant location are limited, the restaurant has not expanded their services statewide. Confusing sentence, consider rewording! Conclusion A business model is one essential factor in the success of a business. The business models of McDonald’s and Dattilo’s are much different but both successful. McDonald’s is a major corporation with thousands of locations and Dattilo’s with just one, but both have been in business for many years. There are advantages and disadvantages of both types of businesses, but regardless building a sustainable competitive advantage is achievable. The two restaurants compared in this paper offer different levels of quality, service, and cuisine, thus requiring a different level of ownership that each business model relays. References Datillos Ristorante: (2013).About Us, 2013, rRetrieved from: http://dattiloristorante.com/?page_id=8 McDonald’s: Values in Action, 2013, retrieved from: http://www.mcdonalds.com/us/en/home.html |Content and Organization |Points |Comments: | |70 Percent |Earned: 6.5 | | |Profile of a Small Business (Week 2) | |All key elements of the | | | |assignment are | | | |covered†¦good job! | | |Y | | | | | | | | |You clearly identify the| | | |two businesses but make | | |Y |sure you clearly | | | |identify the industry. | | | | | | |N |Good job explaining the | | | |advantages and | | | |disadvantages. | | |N | | | | |Make sure you provide | | | |academic and business | | | |research to validate | | | |your thoughts and | | |Y |opinions. | | | | | | | | | | | |Your introduction | | | |clearly states your | | | |purpose and what you | | | |plan to address. | | |Y | | | | | | | | |Your conclusion needs to| | | |review the major points | | |Y |of the paper- good job | | | | | | | | | | | | | | |Y | | | | | | | | | | | |Y | | | | | | | | | | | | | | | |Y | | |All key elements of the assignment are covered in a substantive way. | | | |700 to 1050 word count | | | |The content is comprehensive, accurate, and/or persuasive. | | | |The paper develops a central theme or idea, directed toward the appropriate | | | |audience. | | | |The paper links theory to relevant examples of current experience and industry | | | |practice and uses the vocabulary of the theory correctly. | | | |Major points are stated clearly; are supported by specific details, examples, | | | |or analysis; and are organized logically. | | | | | | | |Identify an industry with which you are familiar, and then choose two | | | |businesses in that industry. | | | | | | | |Identify the business model and forms of ownership for each business, then | | | |complete the Comparison of Businesses Matrix. | | | | | | | |Describe benefits associated with each business by evaluating how they built a | | | |sustainable competitive advantage. | | | | | | | |Explain advantages and disadvantages of each business’s ownership. | | | |The introduction provides sufficient background on the topic and previews major| | | |points. | | | |The conclusion is logical, flows from the body of the paper, and reviews the | | | |major points. | | | | | | | |Readability and Style |Points Earned: 1.5 |Comments: | |15 Percent | | | | | |Great job†¦your sentences| | | |are well-written and | | |Y |error free. | | | | | | |Y | | | | | | | |Y | | | | | | | |Y | | | | | | | | | | | |Y | | |Paragraph transitions are present and logical and maintain the flow throughout | | | |the paper. | | | |The tone is appropriate to the content and assignment. | | | |Sentences are complete, clear, and concise. | | | |Sentences are well-constructed, with consistently strong, varied sentences. | | | |Sentence transitions are present and maintain the flow of thought. | | | | | | | |Mechanics |Points |Comments: | |15 Percent |Earned: 1 | | | | | | | | |Research adds validity | | |N |to your thoughts and | | | |ideas. Continue to | | | |expand your use. You | | |N |provide no business | | | |research or materials | | |N |from class. | | |Y |Ensure paragraphs are | | | |complete thoughts and | | |Y |flow into each section. | | | | | | | | | | | |Please continue to | | | |review the CWE and APA | | | |guidelines. | |The paper, including the title page, reference page, tables, and appendices, | | | |follow APA guidelines for format. | | | |Citations of original works within the body of the paper follow APA guidelines.| | | |The paper is laid out with effective use of headings, font styles, and white | | | |space. | | | |Rules of grammar, usage, and punctuation are followed. | | | |Spelling is correct. | | | | | | | | | |Comments: | | | |Great work team! | | |Points earned: |9 |