McDonald's Business Environment: Structure, Scope, and Macro Factors

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Business and Business Environment

Table of Contents
Introduction......................................................................................................................................1
LO1..................................................................................................................................................2
P1.Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures......................................................................................................................2
P2.Explain the size and scope of a range of different types of organizations.............................5
M1.Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
LO2..................................................................................................................................................8
P3Explain the relationship between different organisational functions and how they link to
organisational objectives and structure........................................................................................8
M2.Analyse the advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure......................................10
LO3................................................................................................................................................11
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples..............................................................................11
M3Apply appropriately the PESTLE model to support a detailed analysis of the macro
environment within an organisation..........................................................................................13
LO4................................................................................................................................................14
P5 Conduct internal and external analysis of specific organizations to identify strengths and
weaknesses.................................................................................................................................14
P6 Explain how strengths and weaknesses interrelate with external macro factors..................16
M4Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19

Introduction
Business Environment is considered as an integral part any organization for attaining
sustainability through efficient and effective management. Business Environment is effective in
supporting the success of an organization and it business in the existing environment.
Considering the economic, Business is human activities including purchase, production, sales etc
that is performed with a motive to earn revenue. Moreover, Environment is the surroundings.
Hence, business environment therefore can be considered as inclusion of political, conditions
institutional, legal, economical and social those are uncontrollable and can influence
organizational functionality.
In the current report, discussions are made regarding different organizational structure together
with their size and scope that determines difference between various organizations. In the present
report, McDonald is considered for understanding business and business environment. There are
various forces in the environment that influences the organizational business along with the
produced product line.

LO1
P1.Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures
Organization and their purpose
Private sector organization: It is that integral part of the economy; here the products and
services are distributed and produced by an organization or individual. These organizations are
not ca part of state bureaucracy or government.
McDonalds Corporation is one of the largest fast food chain restaurants; it is an American
organization with global identity. Presently, McDonalds has 37000 outlets globally covering 119
countries. This organization falls under private sector and Ray Kroc. McDonalds is the founder
of McDonald chain which now is serving more than 100 million customers per day.
Purpose of the organization is doing right thing with a “good” associated with its tagline.
McDonalds hence puts effective efforts to make the products and services good to its
customers. Customers are always attracted to good things that help in attaining sustainability and
profit.

Figure 1: MacDonald’s logo
(Source: https://all-free-download.com/free-vector/download/mcdonalds-logo_29788.html,
2019)
Public sector organization: In this type of organization, the general public can take membership
without any restriction. The organization that falls under this sector can use prospectus for
advertising their shares to the public (Bason, 2018). The organization is subjected to various
legal standards for offering shares and liability is limited. The organization can sell their shares
to the investors for raising capital.
TESCO Plc or Tesco is a merchandise retailer and multinational groceries store. In terms of
gross revenue, Tesco ranks third among the large retailer globally (Bouckaert et al 2016). The
purposes Tesco is to offer good product and services to the customers in reasonable prices with
"Tesco Value" and "Tesco Finest" range with proper resources utilization for community benefit.
Figure 2: TESCO Plc logo
(Source: https://www.brandsoftheworld.com/logo/tesco, 2019)
Voluntary organization: The organizations under this sector are unions or association of
individual who enter into a agreement voluntarily for accomplishing certain purpose.
Oxfam is a non-governmental organization that is a union of 20 charitable organizations that are
working together for mitigation of poverty globally; the organization was founded in the year
1942. This non-profit group includes various collection of operations (Crane, and Matten, 2016).

Main purpose of Oxfam is to eradicate powerlessness and poverty through political influence and
human actions for offering a sustainable living by offering basic human need to the
underprivileged people living in the community (Tomczak, 2016).
Figure 3: Logo of OXFAM
(Source: https://www.oxfamamerica.org/press/logos/, 2019)

P2.Explain the size and scope of a range of different types of organizations
Organizations are differentiated from each other on the basis of their scope and size. In the table
below different organisation and their types will be discussed:
Table 1: Different organizations
BASIS Tesco McDonald Oxfam
Mission and Vision The mission of Tesco
is to create value
product and services
for earning customer
loyalty. Tesco aims
to broaden business
scope for enabling
and delivering
sustainable growth
and expansion in both
home and
international markets.
Brand mission of
McDonald's is to
become favourite
place for eat and drink
amongst the
customers. The
operations of the
organization are
mainly aligned to a
global strategy “Plan
to Win”, for offering
services to enhance
customer experience
through product, price
and place (Testa et al
2016).
This organization
aims to address
various structural
causes leading to
poverty, injustice. The
organization works
with the help if local
accountable
organizations. The
main goal of Oxfam is
to help the people of
society directly during
insufficient capacity.
Purposes of the
organization are to
assist the structural
development for
benefiting the people.
Market Share The overall market
share of Tesco is 30.2
% in the groceries
market of UK.
It is the market leader
in the fast food
restaurant, it has about
21.7 % in this sector
The organization also
has seized control for
running Oxfam's
global aid that is
funded through annual

income of £
915million and half of
it is collected from
UK itself.
Growth The organisation
offers products to the
customers in low
prices for attracting
more customers with
the valued product
that increases the
loyalty and brand
image that helps in
attaining sustainable
growth.
With the rise of
popularity and living
standards overall
growth of McDonald
is significantly high,
provides
differentiated product
and services
according to the
customer demands
and trends and
changing food habits
Oxfam has supported
in raising the standard
of living among the
people minimising the
poverty and
encouraging fair trade
rules, developmental
work etc that has
ultimately leads to
growth of charity in
rapidly (Tomczak,
2016).

M1.Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation
The organizations are differentiated form each other in terms of size, scope and structure. Thus,
for effective functionality all the size and scope must be specified for attaining the determined
goals and objectives (Raja Sreedharan, et al 2017). The organization can be private, public and
voluntary but has a similar vision that is to serve the customers effective with the offered product
and services for attracting them towards the business process by offering customer satisfactory
services for increasing the overall sale and revenue. Oxfam is a voluntary organization that is a
non-government and non-profit organization that work for enhancing the living standards of the
community by minimizing poverty. The aims and objectives of the mentioned organization can
be attained effectively through proper functionality involving different departments working
collaborate within the organization.

LO2
P3Explain the relationship between different organisational functions and how they link to
organisational objectives and structure.
Employees within an organization need to perform various activities and functions with a motive
to make organizational business a successful one. Some of the important function within an
organization is: Finance, marketing, human resources management and sales. For an
organization like McDonald i.e. is involved with the restaurant business need to create a strong
customer base (Quinlan, et 2019). Thus, the marketing department of the organization needs to
be very functional and attentive. The resources of the market department must be utilized
effectively for introducing and implementing new ad advance marketing strategies with the help
of creativity and innovation for attracting more customers and for analyzing the current market to
understand the need and expectation and taste of the customers. Proper understanding and
identification will be helpful for introducing new policies and ideas for fulfilling all the needs.
Mix marketing tools like social media platforms, TV, print are used for promotion and
advertisement of product and brand to attract a large range of customers.
Changing taste, globalization, advance customers services and health consciousness has
effectively has raised level of competitiveness. Thus, for mitigating this issue MC Donald
implement effectual distribution system for controlling the need of supply and demand, attractive
packaging and availability for attracting more customers towards the products increasing the
revenue and profit.
Finance is yet another very important function of the organization (McDONALD, 2016). The
finance department is associated with fund allocation and distribution within the organization for
conducting various other processes seamlessly without effective the production or profit. The
Finance department of McDonald produces and maintains the financial reports the helps in
understanding the overall financial performance of the organization for undertaking effective
decisions accordingly with an aim to improve current conditions.
Considering the need of skill and knowledge in the organization the HRM department recruits
and selects the employees for the organization that can work according to the organizational

standards or delivering goods and services to the customer as per the defined protocols and
standards. The HRM department in McDonald is also responsible for offering training and
monitoring the employee’s performance for increasing their skills and efficiency. Maintaining
employment legislation for securing the customers also fall under the role and reasonability of
the HRM department.