Comprehensive Report: McDonald's Business Operations and Strategies

This report analyzes McDonald's business operations, covering various aspects of its internal and external environment. The report begins with an introduction to the business environment and its impact on organizations, using McDonald's as a case study. It then delves into the importance of accounting for business success, highlighting its role in evaluating performance, managing cash flow, and ensuring statutory compliance. The report further explores the functions of the Human Resource Department, emphasizing its role in recruitment, employee relations, and training. An analysis of a profit and loss account is provided, along with an examination of team roles, motivational theories, and leadership styles within a business context. The report concludes by summarizing the key findings and emphasizing the importance of understanding various factors for enhancing profitability and success in business operations. References to books, journals, and online resources are included to support the analysis.

How business operate

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
2.1 Importance of accounting for business success....................................................................1
5.1 Different functions performed by Human Resource Department.........................................2
5.2 Key features of employment legislations .............................................................................2
TASK 3............................................................................................................................................2
3.1 Information on profit and loss account.................................................................................2
TASK 4............................................................................................................................................3
4.1 Analysis to determine your own and others’ roles within a team.........................................3
4.2 Notes which can be used to support future training events..................................................4
4.3 Appropriate use of different motivational theories in business activities.............................5
4.4 Impact of various leadership styles on employees................................................................5
TASK 5............................................................................................................................................5
Covered in PPT...........................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment can be said as the combination of both external and internal factors
that help the organisation in having a control over the entire business in an effective manner
(Trevino and Nelson, 2016). It assist the company in having close and continues interaction
between companies and employees as well. McDonald is a huge food chain company and is
operating its business in various countries. The report, will include different types and structure
of both public and private organisations of United Kingdom. Apart from this, customer's services
and its benefits are mention in this assignment so that all the demands are fulfilled according to
the needs and wants of consumers.
TASK 1
Covered in PPT
TASK 2
2.1 Importance of accounting for business success
Accounting is one of the important procedures which define day to day operational
activities in order to improve the overall performance level of the company. Basically, it
summarized as well as analysed all the financial data to attain better at workplace. By preparing
accounting, company show quantitative information to investors which contribute in maintaining
the positive performance of the company. Apart from this it helps an organisation in some of the
activities that are mentioned below:
Evaluating the performance of business: With the help of Balance sheet, determining
the growth of the organisation will be easier as it will give a summary of profit and loss that the
company had gone through in one financial year.
Managing and monitoring of cash flow: By maintaining a proper accounting firm will
have an overview about the cash and capital which are required for handling the whole business
in an effective manner.
Helps business to be statutory complaints: Process of accounting helps the organisation
For preparing a budget as per the demand and wants as per the situations that are present in the
market area (Aronoff and Ward, 2016).
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Assist in creating budget and future: It assist the company in making policies and plan
of action so that firm can take appropriate decision that can be fruitful in future proceedings also.
5.1 Different functions performed by Human Resource Department
Human resource development department play important role in managing as well as
monitoring the overall activities of the workers in most effective manner. In this the main
function of HR department is to hire and select skilled and capable candidates who are contribute
in attaining desirable goals and objectives. Human resource department tries to maintain a good
relation in an organisation by resolving the conflicts and issues that can affect the business
operations (Finch, 2016). Compensation and benefits are also provided by them according to the
skills and knowledge that are acquired by an individual. Training and development related
programmes are are given by them so that new employees can learn the whole process about how
the company perform their functions and activities. Therefore, it can be said that department of
human resource management is like a backbone for any organisation.
5.2 Key features of employment legislations
For successfully operating business, it is important for company to follow all the acts that
formed by government bodies. By this firm improve workers retention at workplace by
establishing ethical work environment. Along with this various lows and act are there such as
anti discrimination, equality act and may more which helps in improving the productivity level
of the workers. Therefore, McDonald has adopted all the laws and while conducting the process
of recruitment they are selecting candidates only on the basis of talent along with the skills and
knowledge the person has possessed. Thus, company is able to sustain the loyalty of employees
as a result they are gaining a better position at market place (Foss and Saebi, 2017).
TASK 3
3.1 Information on profit and loss account
Income Statement of
McDonald's
All numbers in thousands
Revenue 12/31/2017 12/31/2016 12/31/2015
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Total Revenue 22820400 24621900 25413000
Cost of Revenue 12199600 14417200 15623800
Gross Profit 10620800 10204700 9789200
Operating Expenses
Research Development - - -
Selling General and
Administrative 1068100 2460200 2643700
Operating Income or Loss 9552700 7744500 7145500
Income from Continuing Operations
Total Other Income/Expenses
Net -57900 6300 48500
Earnings Before Interest and
Taxes 8573500 6866000 6555700
Interest Expense - - -
Income Before Tax 8573500 6866000 6555700
Income Tax Expense 3381200 2179500 2026400
Net Income From Continuing
Ops 5192300 4686500 4529300
Non-recurring Events
Net Income 5192300 4686500 4529300
Net Income Applicable To
Common Shares 5192300 4686500 4529300
Interpretation: As per above mentioned data, it has been concluded that the profit and
loss statement the net income of the company is 5192300 which is high as compare to previous
year.
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TASK 4
4.1 Analysis to determine your own and others’ roles within a team
Team is a combination of skilled and eligible people who constitute and work for a
common goal. Members have same thoughts and views and perform the task for gaining positive
outcomes. Therefore, it is developed as per the potential they acquire. Thus, it is important that
proper respect is given to all the person who are included in the squad (Chung, Yang and Huang,
2015). As a team leader it is my prime duty to manage and explain all the roles and
responsibilities that are required to be performed so that an effective outcomes can be gained.
Other than this, I try to maintain a mutual understanding between the members so that all the set
targets are achieved in specific time frame.
4.2 Notes which can be used to support future training events
It is important for business organisation to develop an effective as well as strong team
which helps in attaining set goals and objectives. In this context, there are some appropriate steps
which used by McDonald to developing an appropriate team at workplace:
Stages of team development
It is one of the effective theory which helps in developing an effective team in order to
improving the workers performance in a squad. In this leaders play an important role as they
guide the entire team for accomplishing the task in an effective manner. Basically, it include
various stages like forming, storming, norming and performing. With the help of this manage of
the company develop a strong team which contribute in attaining better success at market place.
Different types of motivational theories
Various motivational theories are used by business organization to motivate the staff
members in which they easily perform their task in most effective manner. By providing better
motivation, manager easily encourage their workers to perform their activities which directly
impact on attaining positive outcomes. In this company use various theories such as Maslow's
hierarchy needs, Herzberg's hygiene theory and McClelland's need theory. By using all these
theories company enhance workers productivity level which contribute in attaining better success
at market place.
Various kind of leadership styles
McDonald use leadership styles which may helps in providing better guidance to workers
at the time performing their activities. It includes democratic, autocratic and Laissez- faire style.
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If gives equal change to every individual so as to share their views in front of superiors.
Therefore,both the leadership style is providing maximum profits to the company (Buhmann,
2016).
4.3 Appropriate use of different motivational theories in business activities
For attaining better success at market place, it is important for McDonald to understand
the market trends and adopt changes accordingly (Demuijnck and Fasterling, 2016). With the
help of this company increase the chances of attaining positive outcomes. In context of
McDonald, they use different motivational theories within their business fir motivating their
workers at the time of performing their activities in effective manner. Like, McDonald adopt
Maslow Hierarchy theories which include various stages such as basic needs, physiological,
safety, esteem and self actualisation needs. By this workers get encourage towards their work
and activities and perform effectively in order to attain positive results in most effective manner.
Mainly, company use this theory for encouraging workers to attain better success.
4.4 Impact of various leadership styles on employees
Leadership styles are more important because it help workers to enhance their
productivity level. By using this manager of the company provide better guidance to their
workers in which they effectively perform their task for attaining set goals and objectives in
appropriate period of time (Carayannis, Sindakis and Walter, 2015). It also increase the workers
involvement in all the business activities which aid manager at the time of their decision making
process.
TASK 5
Covered in PPT
CONCLUSION
From the above mentioned report, it can be summarized that, it is important for business
organization to understand all the factors at the time of operating their operational activities. This
will aid in enhancing the profitability level of the company in most effective manner. Along with
this, company also use various motivational theories and leadership theories to develop better
workforce at workplace which may leads in attaining better success.
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REFERENCES
Books and journals
Trevino, L. K. and Nelson, K. A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Aronoff, C. and Ward, J., 2016. Family business values: How to assure a legacy of continuity
and success. Springer.
Finch, B., 2016. How to write a business plan. Kogan Page Publishers.
Foss, N. J. and Saebi, T., 2017. Fifteen years of research on business model innovation: how far
have we come, and where should we go?. Journal of Management. 43(1). pp.200-227.
Chung, H. F., Yang, Z. and Huang, P. H., 2015. How does organizational learning matter in
strategic business performance? The contingency role of guanxi networking. Journal of
Business Research. 68(6). pp.1216-1224.
Buhmann, K., 2016. Public regulators and CSR: The ‘Social Licence to Operate’in recent united
nations instruments on business and human rights and the juridification of CSR. Journal
of business ethics. 136(4). pp.699-714.
Carayannis, E. G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Demuijnck, G. and Fasterling, B., 2016. The social license to operate. Journal of Business
Ethics.136(4). pp.675-685.
Pereira, B. A. and Caetano, M., 2015. A conceptual business model framework applied to air
transport. Journal of Air Transport Management. 44. pp.70-76.
Online
The Effects of Customer Service on Organizations. 2017. [Online]. Available
through:<http://smallbusiness.chron.com/effects-customer-service-organizations-
10.html>.
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