Business and the Business Environment Report - McDonald

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organisation..........................................................................1
P2 Size and scope of McDonald and Burger king......................................................................2
TASK 2............................................................................................................................................3
P3 Different organisational functions and their link between objective and structure...............3
TASK 3............................................................................................................................................5
P4 Positive and negative of macro environment on business operations....................................5
TASK 4............................................................................................................................................6
P5 Internal and external analysis of McDonald..........................................................................6
P6 Strengths and weaknesses interrelated with external macro factors......................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is a vital part for an effective and efficient management of
enterprise. It includes two terms that is “business” and “environment”. Business includes human
activities that are carries out for earning profit while environment means the surroundings that
affects the operation of company. It can be stated that it is a set of uncontrollable factors that
affects the functions of an organisation (Klapper, Lewin and Delgado, 2011). This project report
is based on McDonald which is a multinational company and deals in fast food restaurant chain.
This report will explain about the different types of enterprise and their size or scope,
relationship between organisational objectives and structures in explained in detail. Furthermore,
positive and negative impact of macro environment on business, SWOT or PESTLE analysis of
an understanding is explained.
TASK 1
P1 Different types and purpose of organisation
There are many types of enterprises which are set up for the different objectives, are
given below-
 Public company- These organisations are those which can invite the public for taking the
shares. There are no restrictions on the number of shareholders, it can freely trade their
stocks throughout the market or stock exchange. It has to use “PLC” word after its name
and has to take decision related to business after consulting with its shareholders.
Generally, it is owned by government for the people which has main purpose is to
provide benefits to the public and to use resources in an effective and efficient manner for
giving the benefits to the society. It's rules and regulations are as follows-
◦ It has to publish its annual accounts to its investors or bankers.
◦ At the end of every year, it has to call a meeting that is known as “Annual General
meeting” in which shareholders vote on a certain issue etc.
◦ Must have at least two shareholders and should be registered at company’s house.
◦ Must have at least two directors in which one should be an individual who will be at
least 16 years of age (Chavis, Klapper and Love, 2011).
◦ All members have limited liability only up to unpaid amount on their shares.
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 Private company- Those enterprises which are controlled or owned by some private
people or has a small number of shareholders is known as private company. It cannot
offer their shares to the public and there is a specified limit on the number of
stakeholders. It can be known by the name of unlisted company or unquoted enterprise.
Its main purpose is to enhance profit, market share and sales by providing services to the
society. It' structure are as follows-
◦ It has to file its audited annual accounts on companies house.
◦ It has to make two documents which is “Memorandum of Association” and “Articles
of Association”.
◦ It does not need to appoint company secretary if it does then it has to give information
about it to the company’s house ( Welford, 2013).
 Voluntary sectors- These organisation is not owned only by an individual but is
controlled by a group of person. It can be known as “Non- profit organisation” which has
main objective to serve the society without any purpose of profit. It is willingly set up by
some person for doing social welfare. In this, there are numbers of members that provide
donation to it which can be used for the development of the society. Its main objective is
to improve living of standards of the people that also helps in the development and
growth of the country. Its legal structure are as follows-
◦ There should be some provisions related to continuing membership and future
existence of the group.
◦ It should set down the objects of association, it's membership and structure and the
the powers that assist in carry out its object (Commander and Svejnar, 2011).
P2 Size and scope of McDonald and Burger king
Size and scope of these organisations are as follows-
McDonald Burger king
Employees Approx 85000 in UK and one
million worldwide
34248 man power
Customers 68 million per month 54 million per month
Net income $104.42 billion $ 1.912 billion
Advertising budget $988 million $1000 million
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