Business and the Business Environment: A Case Study of McDonald's

Business and the Business Environment
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Table of Contents
Introduction:....................................................................................................................................3
LO1 - Explain the different types of organisations, including their size and scope........................4
LO2 - Demonstrate the interrelationship of the various functions within an organisation and how
they link to organisational structure................................................................................................8
 Due to excessive demand of the consumer the quality of the product may reduce sometimes,
thus affecting the brand name of the company and creating negative impact on the customers...10
LO3 - Use contemporary examples to demonstrate both the positive and negative
influence/impact the macro environment has on business operations. 625...................................11
LO4 - Determine the internal strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors................................................................................13
P5 - Conduct internal and external analysis of specific organisations to identify strengths and
weaknesses.....................................................................................................................................13
P6 - Explain how strengths and weaknesses interrelate with external macro factors...................15
Conclusion:....................................................................................................................................17
Reference list:................................................................................................................................17
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Introduction:
Business is the sole of the economy of any country. Business requires proper environment for the
growth and establishment. It includes various external and internal factors, which has a great
influence on the business and it works together to greatly affect the business. Business requires
establishment, however, for the successful establishment of the business it requires resources
such as finance, social norms and it acceptance, appropriate market conditions, sale of the
products and for this the business depend on the customers. The requirement of workers for
which, the business has to depend on the society. Business is also influence by external factors
like natural resources and it is totally dependent on nature. Legal support plays vital role in the
growth of the business for, which it depends on Government.
In this case study of business environment the company named McDonald’s has been introduced
to understand the various environmental factors affecting business. McDonald’s is one of the
leading fast food companies in the world.
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LO1 - Explain the different types of organisations, including their size and scope.
P1 – Explain different types and purposes of organisations; public, private and voluntary
sectors and legal structures.
According to Salamon and Sokolowski (2016 ), The growth of the business is totally affected by
different planning in their work. Different types of organisation public, private and voluntary
sectors and their purposes are stated below:
Public Sectors: It helps in the growth of the economic condition of the country. The capital
requirement for this organisation is easily available. It develops their organisation in the urban
areas thus brings growth in that area and it is mainly controlled by Government. There is huge
scope of employment in this organisation. Statoil in Norway, is the example of public sectors.
The MacDonald should look after the roles of the public sector and incorporate it in the
organisation (Rose, 2017).
Private Sectors: It is controlled by private individual as in the case of McDonalds. It reduces
the cost of the organisation by making huge profit and pressure of competition, which reduces
the cost. The main motif is to provide good quality product with different choice in the products.
There is always innovation in the products due to the need of the customers. It saves the capital
of the Government by replacing the earnings from the tax accumulated from business. It
increases it share in the business market by its own ownership (Salamon and Sokolowski 2016).
Voluntary Sectors: It is the sector mainly looks after the social activities and its motive is not
earning profit. There is no intervention of government in this sector. In this sector the money
earned by the organisation is generally invested again into the organisation. The organisation
mainly involves in solving the social issues. The examples of voluntary sectors are World
Vision.
There are various legal structures in the organisations that are stated below:
Sole Proprietorship: This can be found in individual or between married couple. It is simple to
operate and flexible with less legal controls and taxes.
General Partnership: Partnership can be found among two or more people by contribution of
fund, skill in the business. There is written agreements among the partners and the losses, debts
are liable to the partners.
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