Business Environment of McDonald

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Overview of the different types of the organisation....................................................................2
Interrelationship between various organisational functions and how they are link to the
organisational structure and business objective..........................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business environment refers to the collection of individuals, entitles and other factors
which can be controlled by the organisation but these all factors affect the performance,
profitability, growth as well as survival of the enterprise. Every business operates its business
activity in its environment and such an environment affect the overall performance of the
company(De Vries Bekkers and Tummers, 2016). Report will present the overview of the
different types of organisation including the background information of the various organisation,
their vision, mission, business objective, product and service, organisational & legal structure of
the various firms. Study will also highlight the interrelationship between various functions of the
organisation and how they are link to the organisational structure.
ACTIVITY 1
Public sector organisation
It refers to all those organisations which are accountable to the government. It includes
the organisation which are controlled and owned by the government. Government is contributed
more than 50 % money in its public sector companies. The main aim of public sectors firms is
to provide the goods and services to the community for the betterment of their life. For example
the National health service organisation, it provides the health services to the public with the aim
of not earning any money from them(Isaak, 2016).
Private sector firms
In this sector firms are not run by the private owners and individual rather than
government with aim of earning the higher level of the growth from the market place. It also
considers as the important part of the countries economic system. For example, McDonald is the
private company who's main objective is to earn the higher level of the profitability through
providing better quality goods and services to customers.
Voluntary organisation
It includes the organisation which are run for improving the life standard of the public in
terms of health issues. It refers to non profit making firms which provides the various health
services to the peoples who suffered from health injuries. For example the Oxfam is the
organisation which is provides the services for reducing the poverty(Ten Brink, 2017).
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Overview of the different types of the organisation
Basis Public
(NHS)
Private
(McDonald)
Voluntary
(Oxfam)
Background
information
It is publicly founded
national health system
in the UK. It was
established in 1948 in
the
England(Alderwick
and Ham, 2016).
It is an American fast
food company
which was
established in
1940 at the
California,
united states.
Oxfam is the
confederation
of
independent
charitable
organization
which is
focused on
the alleviation
of global
poverty. It
was founded
in 1942 at
united sates.
Product and services Its provides the
products related to
better health and also
provide the health
care services.
It provides the variety
of food
products such
as French
fries, Big
mac, snack
wrap, happy
meal, chicken
Nuggets and
premium
salads etc.
It is the global
organization
working to
end the
injustice of
poverty
through
selling
clothing(Stani
szewska,
2018).
Size and scope It employs more than
1.5 million people
It is the world;s fourth
largest
It is the confederation
of 20
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which deals with over
1 million patients
every 36 hours. It can
improve its business
operations through
maintaining low
administrative cost
and high use of
cheaper generic
medicines.
employer. It
has a 1.9
million
employees
which
provides the
goods and
services
across the
world. It is
one of the
worlds
leading food
service brand
with more
than 36000
restaurants. It
can expand
their business
at the global
level through
providing the
best delicious
food with
better sitting
facility to its
consumers(M
athur, 2017).
independent
charitable
organization
which
provides the
services in
terms of
reducing the
poverty
across the
worldwide. It
works to find
out practical
and
innovative
ways for
peoples left
themselves
from the out
of poverty.
Vision & mission The vision and
mission statement of
the NHS is to
The vision and
mission of the
company is to
The vision and
mission is
doing work in
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delivering better
health services for its
communities by
individually focused
initiatives which
helps in maximizing
health and well being
of the public.
provide the
customers
favorite place
to eat and
drink.
terms of
providing
world without
poverty and
also make the
world in
which peoples
are values and
treated
equally.
Business objective Ensure every child
has the best star in
life. Prevent and
maintain long term
condition to extend
length and quality of
life and reduce health
inequalities(Alderwi
and Ham, 2016.).
The business objective
of the
McDonald is
to drive their
business in
the profitable
growth and
serving
delicious food
to customer
around the
world(Green,
2015).
To help and create
lasting
solution to the
injustice of
poverty and
also
empowering
peoples to
create a future
which secure
and free from
poverty(Hajn
al, 2018).
Organizational
structured
NHS followed the
Hierarchy based
organizational
structure in its
business activities
which controlled by
the department
All the restaurant of
the McDonald
follows the
flat
organizational
structure in
which
It follows the flat
organizational
structure in its
business
environment.
In this Oxfam
supervise
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director of the NHS. manager of
each place of
business
control the
other assistant
and
employees.
employees
less while
promoting
their
involvement
in the
decision
making.
Legal structure NHS is proposed by
the health minister of
UK with the
publication of a white
paper. At present it is
governed by the
present version of the
national service act
2006(Simoens and
McMaster, 2017).
In its legal structure
the company
is owned by
the boards of
director
which is
elected by the
shareholders
of the
company(Ho
wse, 2018).
Its ownership is
depended on
the Oxfam's
trustees
because they
have ultimate
responsibilitie
s in law for
the charities
and its
activities.
They form the
council of the
trustee that is
governing
body of the
association of
Oxfam(Hilton
, 2018).
Stakeholders It includes its
employees and
Academy of health
It involves employee,
customer,
investor and
It includes peoples,
partners, staff,
volunteers,
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science, national
school of health care
science.
communities.
All of these
has a great
impact on the
productivity
of the
company.
donors,
coalitions and
governments.
Interrelationship between various organisational functions and how they are link to the
organisational structure and business objective
The McDonald follow the flat organisational structure which includes various functions
such as marketing, finance, human resource, production and research and development
department(Green, 2015).
The functions of the McDonald are runs together in the achievement of the organisational
goal. The interrelationship between all the functions are related to the organisational structure
because functions works according to the rules and activities of the structure towards gaining the
desired level of outcome of the company.
Inter-relationship between finance and marketing
The marketing department of the McDonald require working effectively with the to
finance department for getting appropriate budget for meeting the needs of market research
which plays an important role in providing important information about market position of the
company in the market place. Both functions are important part of the management in terms of
accomplishing organisational goals. Apart from this marketing department also helps the finance
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Illustration 1: Organizational structure of McDonald

department in terms of making an effective budget for the company through providing
information about the future requirement of the financial resources(Gassmann, Frankenberger
and Sauer, 2017).
Finance and production
Both the functions are runs together in the achievement of the business objective of the
McDonald because production department provides the information about the need of financial
resources and through this finance department provides the appropriate financial resources to the
production department for producing the better quality food products to its customers which
results in improving the productivity of the firm. Finance department also plays an important
role in improving the production procedures of the McDonald which can be possible only
through providing innovative and effective resources(Stevenson and Barnes, 2015).
Marketing and Human resource
The inter-relationship between marketing and Human resource plays a critical role in the
attainment of the organisational goal. It has great impact on the profitability of the McDonald
because human resource department provides employees with high skill and knowledge to the
marketing department for creating an effective marketing team which provides the information
about the various needs of the customers to the McDonald which ultimately results in the
increasing the productivity of the company because enterprise produce the food products
according the need of the customers(Eyring and Consuegra, 2017).
The business objective of the McDonald is linked with its interrelated function of
organisational structure because all of these function work according the business objective of
the company in terms of reaching the desired level of results of the McDonald.
The advantage of interrelationship between various functions, as better relationship
among various functions creates the healthy working environment at the work place which
encourage employees to give their best level of efforts in achieving the business objective of the
McDonald. The disadvantage, it sometime results in creating the conflict among the employees
which results in decreasing the productivity of the firm(Howse, 2018).
CONCLUSION
The above study has been summarized with that the every business is affected by its own
business environment because it includes various internal and external factors. For example
political factor affect the overall performance of the company due to instability in the
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government policies and rules. At the global level company needs to make their business policies
according to its state government policies which consumes high cost and these process influence
the profitability of the firm.
REFERENCES
Books and journals
Alderwick, H. and Ham, C., 2016. NHS in England embraces collaboration in tackling biggest
crisis in its history.
De Vries, H., Bekkers, V. and Tummers, L., 2016. Innovation in the public sector: A systematic
review and future research agenda. Public administration. 94(1). pp.146-166.
Eyring, A. and Consuegra, J., 2017. HR and Marketing: Partners in Growth. People & Strategy.
40(4), pp.6-7.
Gassmann, O., Frankenberger, K. and Sauer, R., 2017. A Primer on Theoretically Exploring the
Field of Business Model Innovation.
Green, S., 2015. McDonald's. Bellwether Media.
Hajnal, P.I., 2018. Oxfam International. In Civil society in the information age (pp. 57-66).
Routledge.
Hilton, M., 2018. Oxfam and the Problem of NGO Aid Appraisal in the 1960s. Humanity: An
International Journal of Human Rights, Humanitarianism, and Development. 9(1).
pp.1-18.
Howse, E and et.al., 2018. ‘Buying Salad Is a Lot More Expensive than Going to McDonalds’:
Young Adults’ Views about What Influences Their Food Choices. Nutrients. 10(8).
p.996.
Isaak, R., 2016. The making of the ecopreneur. In Making Ecopreneurs (pp. 63-78). Routledge.
Lewis, D., 2018. Oxfam crisis: we need a more informed debate about NGOs and international
aid. British politics and policy at LSE.
Mathur, S., 2017. Glocalization in Fast Food Chains Glocalization in Fast Food Chains: A Case
Study of McDonald's. In Strategic Marketing Management and Tactics in the Service
Industry (pp. 330-347). IGI Global.
Simoens, S. and McMaster, R., 2017. Institutional Change and Trust in the National Health
Service: Examining the Impact of Reform on the NHS Value Structure. Organisation
Development in Health Care: Strategic Issues in Health Care Management.
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Staniszewska, S and et.al., 2018. Reviewing progress in public involvement in NIHR research:
developing and implementing a new vision for the future. BMJ open. 8(7), p.e017124.
Stevenson, T.H. and Barnes, F.C., 2015. The Marketing-Production Interface: A Contingency
Framework. In Marketing Horizons: A 1980's Perspective (pp. 329-329). Springer,
Cham.
Ten Brink, P. ed., 2017. Voluntary environmental agreements: process, practice and future use.
Routledge.
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