Business and Business Environment Analysis: McDonald's and Burger King

This report provides an analysis of the business and business environment, focusing on McDonald's and Burger King. It explores the different types, purposes, size, and scope of organizations, including public, private, and voluntary sectors. The report examines the interrelationship of various organizational functions such as design and production, human resources, finance, marketing and sales, and administration, highlighting their link to the objectives and structure of the businesses. It further investigates the positive and negative impacts of the macro environment, using PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors. Additionally, the report includes internal and external analyses to identify strengths and weaknesses, and how these relate to external macro factors, providing a comprehensive overview of the businesses' operational environments.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Covered in PPT......................................................................................................................1
P2 Covered in PPT......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organizational function and how they link to objectives and
structure of the business..............................................................................................................1
TASK 3............................................................................................................................................4
P4 Positive and negative impact the macro environment on business and its activities.............4
TASK 4............................................................................................................................................6
P5 Internal and external analysis of organization to identify strength and weaknesses............6
P6 How strengths and weaknesses interrelate with external macro factors................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is a combination of internal and external factors which has impact
on all the activities that are performed in the organization. It is an effective process of
influencing the enterprise activities in order to run all the process in smooth manner. Business
environment is a wide concept that include collection of individuals and other factors which may
or may not controllable by the firm. It affect the performance as well as profitability of firm to a
great extent. It is very important process for the business to keep all factors in mind before
implementing its activities. Mainly it affect those businesses that operate in global level and
helps in making better strategies. This assist in providing effective guidance to manager of the
business to taking important and best decision regarding the business organization. Present report
is based on McDonald, which is an American restaurant that provide their services in various
countries. This company serve their services more than 70 million customers and generate large
amount of profit in every year. On the other hand another organization is also taken in this report
which is Burger king which is a private company dealing in same field. . In this assignment
various types of business and their main purpose, size and scope is also mentioned. Along with
this relationship with various function of company and their structure is also discussed in this
report.
TASK 1
P1 Covered in PPT
P2 Covered in PPT
TASK 2
P3 Relationship between different organizational function and how they link to objectives and
structure of the business
In organization many activities are performed in the different level in order to achieve
organizational goals and objectives in appropriate manner (Brinckmann, Grichnik and Kapsa,
2010). It is more important for the firm to perform all the functions effectively so that it assist in
maintaining quality of the products. There are some functions which define better relationship
with them:
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 Design and production: In this function it include design of the final products of
company which play an important role because it offer to the customers on the basis of
getting better returns. It is more important for the organization to define their design
effectively in order to invite more and more customers towards its products (Bryman and
Bell, 2015). McDonald use attractive design of its products with helps in invite large
number of customers. They offer their products to its service users as per their culture. Human resource function: In this function it is related to the employees of the company
and they are more important for every enterprise to get higher success in appropriate
manner. In the company the employee make final products to its customers in order to
satisfy their needs and wants and get higher satisfaction by them. In this function
McDonald is very popular firm in the market which achieve positive image by delivering
quality products to its customers. They also define talented employee in their process that
assist in achieving competitive advantage from its competitors. The manager of the
company use best strategy to ensure that all the resources are effectively used by the
employees and make quality food products. It is more important for the organization to
deliver al the important as well as relevant information to their staff member in order to
get desirable results in appropriate manner which aid in increasing goodwill of the
company at marketplace. Finance function: Finance is more important for every company which assist in running
their business activities smoothly. The main and important responsibility of finance
function is to identification of fund in all department, making appropriate budget to
evaluate the performance of the firm. Large business organization required more funds to
operate their various activities and on the other hand small business enterprise required
small funds because they operate their business activities at little scale. So that large
firms arrange their financial resources which is spend in production process in order to
serve quality products to its customers because less funds create more obstacles in the
process so that company arrange advance funds and provide better quality service to their
customers in order to get higher satisfaction by them (Cantwell, Dunning and Lundan,
2010). This whole process increase the important responsibility of a manager to allocate
all the financial fund in all the department so that they evaluate as well as perform their
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activities in effective manner and get positive end results. All these are contribute in
organizational success at marketplace. Marketing and sales function: In this function, it is more important for the business to
identify the customers needs and demand and make quality products according to their
needs (Carroll and Shabana, 2010). This department use various promotional activities to
promote their products in market and increase customers awareness regarding the
products and service. This assist in increasing sale of the firm. To achieve organizational
objectives marketing department collect all the important information and using in the
taking decision making process which is related to the firms activities. On the other hand
sales department also put various efforts in their marketing process which aid in
increasing loyalty of customers toward the company and well as its products.
 Administration function: In this department various type of issues as well as complaints
of the customers are included which is done in appropriate manner to get positive results.
If the company operate their business process at large level so that it increase the
complexity which is resolve by this department and take better decision for achieve its
goals and objectives in appropriate way.
All these department is more important for the McDonald and it is responsibility of a
manager to maintain better coordinate among them so that it assist in increasing the market share
and get higher success at marketplace.
Organizational structure of McDonald: Structure is an effective part of an organization
which help arrangement of all the parts and relationship in effective manner. Company used
various type of organizational structure to increase their effectiveness in the operation process of
the firm. So that it is more important for the McDonald to use appropriate structure for their
operating process. This company used divisional organizational structure in order to increase the
flexibility in appropriate manner (Drucker, 2017). All these functions of the company arranged
according to geographical area of the firm. The important benefit of the organizational structure
of McDonald is to evaluate continuous monitoring in appropriate manner so that company easily
get higher success. It assist in defining all the activities as well as task are relates to the
organizational aims. Is also maintain the coordination among all the level and formulate effective
information to every people if order to get positive results in better way.
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Organizational structure of burger King: Firm recently introduce a lot of changes in
its organization in leadership and ownership. It define all the activities of the firm which is set to
achievement of goals and objectives (Du, Bhattacharya and Sen, 2010). It is more important for
the Burger King is to evaluate all the changes and modify it accordingly which assist in resolve
all the issues that arise in business environment. Present days the company reform various type
of activities in their structure to improve their performance level and capture large market share
from its competitors. The important benefits of its organizational structure is global
centralisation and division which contribute in growth of the company in marketplace.
TASK 3
P4 Positive and negative impact the macro environment on business and its activities
Macro environment is that condition which exist in the economy and it is uncontrollable
factors. In this the company operate their business operation to improve their performance level
in appropriate manner. It also known as a external environment of the firm which include
inflation, GDP rate and many more elements which impact on overall performance of the
company (Gardner and Laskin, 2011). It is more important for the firm to evaluate this
environment before execute their activities so that they aware about all the economic factors that
impact on their process. In this PESTLE analysis is an effective tool which is used by the
McDonald for implement better policies in their organisational process are as follows: Political factors: This factors related to the government which set their rules and
regulations that must be followed by every country to maintain the economy and
currency value. Every company operate their business as per these regulation which is set
by the government authority. Sometime these create more obstacles for the company like
increase rate of tax and other elements which comes under the government regulations.
All these factors are affect the McDonald operation function which is more important
because it is formulate by the government in order to maintain economy effectively. Economic factors: This factors is related to the income of the person who execute their
operation of the firm in the economy. This factor include inflation, deflation, GDP, wages
of the employees which affect the operation process of the company (Kolk and Van
Tulder, 2010). In this people who have more and high level of income who increase the
sale of the company by buying their products. On the other hand who have lower income
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will reduce the sale of the company. All this factors comes under this factors which
negatively and positively affected the company performance. Social factors: It include life style of the people, habits, trends are part of the economic
factors (Kotler, 2011). It is important for the manager of the company to undertake
effective research to identify customers demands and satisfy their needs in appropriate
ways so that they increase customers loyalty towards its products and service. McDonald
undertake various research about their culture where they operate their process and then
provide quality products to their customers accordingly in order to get higher satisfaction
by them. Technological factors: In this factors it include that process as well as procedures which
used by the company to make products. Various type of technologies used by the
McDonald to update their products in order to attract more and more customers toward its
products. On the other hand they also used effective technologies to promotional
activities to promote their products and service like internet, media to invite more
customers to buy its products. Legal factors: In this factors the government set some rules and regulation in the nation
to save the basis rights of the employee and peoples which affect the organizational
process as well activities which formulate in in the firm. The main and important benefit
of this factors is that it helps the employees to get effective wages according their work
so that they are motivated and improve their quality of the work to achieve success.
 Environmental factors: The company activities are affect the environment negatively. So
that the government make many rules to save the environment. For this it is more
important for the McDonald to use quality raw material for making food products to its
customers according to their taste so that they it assist in decreasing the defective method
and it impact on environment positively (Kuckertz and Wagner, 2010). All the process
which is used by the company in ethically manner to evaluate the friendly environment.
All these factors are main part of the macro environment which affect the decision
making process of the firm and evaluate the impact on its activities. All these are aid in achieving
organizational goals and objectives in effective way.
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TASK 4
P5 Internal and external analysis of organization to identify strength and weaknesses
Internal and external analysis affect the commercial activities of company. It is more
important for the firm to identify these factors which assist for the manager for collecting all
the relevant information regarding their strength and weakness of the firm and also find the
better opportunities which exist in the business environment (Schaltegger and Burritt, 2010) .
All these aid for top level management to execute all the activities in appropriate manner and
provide best guidance to their staff member to achieve competitive advantage. SWOT analysis of
McDonald is mentioned below:
Strength Weakness
 Positive image of McDonald is one of
the best strength.
 They make and offer variety product to
its customers.
 They provide professional training to
its employees (Schaltegger, Lüdeke-
Freund and Hansen, 2012).
 Competitive price is also a strength of
the company which aid in capturing
larger market share.
 McDonald maintain clean environment
which help them in attracting more
customers.
 They operate their business globally.
 McDonald use best market strategies.
 Weak product development is one of
the big weakness of McDonald.
 Employee turnover is very high.
 Health conscious customers reduce the
sale of the firm because they fails in
satisfying their needs.
 Negative publicity is also a weakness of
McDonald.
 Lack of innovation in their menu is also
a weakness of the company.
 McDonald having diversifies
franchisees (Sekaran and Bougie,
2016).
 Legal action also create more issues in
their process.
Opportunities Threats
 Best Opportunity of McDonald is to
expand their business in other
 Intensity competitors is one of the big
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countries.
 Low interest rate increase the capital
growth of the company (Sheng, Zhou
and Li, 2011).
 Advertising strategies create more
opportunities in their business.
 Make and offer organic food to health
conscious customers.
treat of McDonald.
 Environmental issue is also a threats.
 Large amount of fund invest in
advertising.
 Change in income level of the
employees also affect the sale of the
company (Wheelen and Hunger,
2011).
All these strength, weakness, opportunities and threats define the actual performance. In
this both strength and weakness of the company comes under internal surroundings which is in
control of the firm but on the other hand opportunities and threats are part of the external factors
which is uncontrollable by the firm. From this analysis McDonald can take better decision in
their process regarding the operation activities in order to achieve positive results.
P6 How strengths and weaknesses interrelate with external macro factors
Strength and weakness affect the external environment of the company. In organization
environment all the external factors like change in customers needs, instability in political factors
and legal factors are included in it which impact on performance of the company (Yang, Hong
and Modi, 2011). It is more important for the company to identify that how both strength and
weakness are interrelated to the macro factors. McDonald operate their activities in various
countries therefore it is essential to evaluate their process to achieve more profits. There are
some points which define the interrelationship between external factors and strength and
weakness of the company:
Strength: Quality products of McDonald is one of the important strength which assist in
achieving competitive advantage in the market. These ability of the firm are affected to the
changes of the business environment like government do some changes and defines new rules
and regulations for business operation which is fallow by every company in order to evaluate
the effectiveness infirm. In this technology is the part of external environment which impact on
business performance. McDonald use new and effective technologies to make more innovative
products in order to invite large number of customers toward its products (Zott, Amit and
Massa, 2011). This affect the company as well as employee to learn how to handle new
technologies in appropriate way. In external factors there are many elements like lifestyle of the
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customers and market trends, all these are considered by the manager of the company to reduce
negative impact on its process.
Weakness: It define the areas of enterprise which are not performing as required. It is
more important for manager of the company to identify and also reduce negative impact. It
assist in achieving long term and short term goals (business environment, 2017). On the other
hand external factors reduce the weakness and its impact on the operation process of the
company. And some time it increase the negative impact. Relationship is define in below points:
External factors include rules and regulation of the government that increase the more
complexity in the business process so tat it negatively impact on the firms operations.
There are some another external factors like economy condition should be stable which
assist in establishing all the targets and objectives. Inflation and deflation is also affect the
business performance (Meskendahl, 2010).
In recent business environment it is more important for the firm to maintain their strength
so that they easily run their business in order to achieve higher success at marketplace. It is also
affect by the external factors so that it become more important to evaluate interrelationship with
strength and external environment so that the company operate their activities effectively and get
positive results.
CONCLUSION
From above mentioned report, it can be concluded that environment factors are largely
affect business process so that it is more important for the company operate their activities
effectively and get better end results. In this both internal and external analysis is done by the
manager of the McDonald to evaluate their strength and weaknesses. With the help of
organizational structure firm easily increase their efficiency and attain effectiveness in their
activities. They also implement effective strategies and policies to maintain their products quality
that helps in inviting large number of customers and increase their sale volume to achieve more
profitability.
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Online
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analysis.html>. [Accessed on 20th September 2017].
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