Business Environment Impact on McDonald's Operations Report

This report provides a comprehensive analysis of McDonald's business environment. It begins with an introduction to the business environment, highlighting the micro and macro factors that influence a company's operations. The report then delves into McDonald's organizational structure, examining its internal relationships and functionalities. It further investigates the impacts of the macro-environment (political, economic, social, technological, legal, and environmental factors) on McDonald's business operations. A SWOT analysis is presented to identify the company's strengths, weaknesses, opportunities, and threats. The report also differentiates between SWOT and PESTLE analyses, explaining their relationship. The conclusion summarizes the key findings, emphasizing the importance of understanding the business environment for McDonald's success. References are included to support the analysis.

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P3. Organisational structure and their internal relationship of functionality. between their
functionalities.........................................................................................................................1
TASK 2............................................................................................................................................4
P4. Impacts of macro environment on McDonald's business operation.................................4
TASK 4............................................................................................................................................7
P5. SWOT analysis for McDonald's.......................................................................................7
P6. Differentiation of SWOT and PESTLE analysis. Relationship between SWOT and
PESTLE analysis....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
Business environment is the collection of micro and macro elements which basically
affect company in operating their functions either directly or indirectly. All these factors affect
the performance and business of company. In this report, there is discussion done in different
types, size and scope of organisations. Along with this, they also highlight one of the
multinational establishments that is McDonald's which is very popular for fast food items and
variety of beverages which would be attracting number of customers over seas. This report also
discusses about SWOT and PESTLE analysis for the selected company and also how it impacts
on the activities of the organisation. In the last section of report, business environment basically
talks about the way in which external and internal factors on McDonald’s affect its functioning
in the market.
TASK 1
Covered in PPT
P3. Organisational structure and their internal relationship of functionality..
McDonald's which is an international brand has expanded their boundaries from the
national border to international areas (Blanchardand Mencken, 2011). They are serving to every
part of the world in all round the corners of the globe. This might include domestic as well as
foreign consumers by introducing some kind of catchy ads or tag lines for the product item so
that it will become attractive and influential so that more customers would get attracted towards
the firm. This company is basically famous for their variety of products and quality of items
which they focus on making with full dedication and innovation at reasonable price as per the
tastes and preferences of customers. Basically, this company is famous for its qualitative
products with best of their services in terms of food and beverages and provide services for
capturing the attention of millions of customers. Their enterprise is usually specialised in
manufacturing good quality food items, fast food centres and junk food availability with some
drinks. These subsidiaries in various field of the countries which basically need to follow some
kind of hierarchical structure. Their main focus is on to focus or manage all the branches of
company by satisfying the needs of customers. These structures have been established for
meeting the needs of customers and satisfying them with their demands so that they will remain
happy and entangled with continuously using of same company’s products. According to this
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firm, there are so many possible ways in which McDonald's can mark the outlines and objectives
of their firm (Bill Pasmore and CMC, 2011). These are mentioned as below:
 First and foremost aim of firm is to establish their company with reasonable price in the
market by introducing some kind of innovative products.
 Their primary job is to provide delivery products on time with the best suitable services
which can be perfect for the company to improve their performance skills.
 They might also try to develop some power which would be useful in uplifting their
condition from the previous position and improve the society conditions also.
 They also tend to focus on working in given interval of time where on time delivery
would be very useful for attracting customer attention.
 They are required to manufacture good quality products which should be free from
harmful diseases or toxic elements. That might influence them in surrounding for the
society.
 Increase amount of sales which is used for implementation of various promotional
strategies.
There arevarious organisational functions which would be available for running business
in a smooth manner which is mentioned below.
Financial Revenue which is used like a lifeblood
necessity for every organisation and all the
tasks and activities that might be depend on
providing funds for an enterprise. Their main
focus for the financial function is to keep the
record of all the economical statements for
preparing an appropriate budget with accurate
estimation (Belás and et. al., 2015). There fore
there would be proper estimation of a future
cost which is basically required and this
basically consider previous year budget and
also the budget sheets.
Sales and marketing Promotion of these existing products is very
essential for bringing new and innovative kind
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of products in the market place for attracting
and capturing maximum amount of customers.
Human resource management Personnel managers of this firm is basically
responsible for assigning right type of person
to do the rightful job on the basis of their
knowledge and skills.
Research development On contrast to this public sector which is
organised in a proper manner which basically
symbolises that power is basically distributed
among all the sections which are mentioned in
this report. Investigation process of
McDonald's for acquiring accurate data and
statistics which can be used by them in
decision making process.
Administration Main role of this kind of authority is to extend
their support to employees and workers at the
time of any disaster and trying to fulfil their
needs in the department requires them.
Marketing department One of the major role in functionality of this
organisation for producing some unique and
attractive items and products for fulfilling the
demands of various customers.
TASK 2
P4. Impacts of macro environment on McDonald's business operation
Internal and external factors which have a great impact on the operational department for
McDonald's by keeping their eminent role which is played towards the enterprise (Aula, 2010).
Basically their production of the department for the organisation to consist of many more
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activities which would be affecting some kind of macro factors in both ways that is positive as
well as negative. Their broad concept basically involves some types of advantages and
disadvantages which are given below.
Political factors: This includes governing body for the country in which firm operates
which is basically responsible for making essential laws, norms, duties and regulations that have
to be followed by McDonald's for running their business effectively. Usually these norms and
beliefs which is adopted by this company during expansion process for trading across national
borders.
The positive effect of this law and rules which are equally applicable for small and large
system. Thus main motive for enacting new rules which is used for creation of environment
which is free from any discrimination. Advisory body that would want to provide equal chance
for production McDonald's for development for their organisation.
The negative impact is that it restricts the selected business at the time of exchange of
their goods and services for selected business. Thus, it acts as a major barrier in achieving some
success for this firm (Cantwell, Dunning and Lundan, 2010).
Economical factor: When there is any change in the exchange of rate or taxation which
would directly affect the economic factor, these reformations in the currency rate can influence
overall efficiency in economy in various ways.
The positive effect of emergence for free trade policy is that it encourages existing
company to increase their export and import those across borders which will be beneficial for
McDonald's.
Exchange in currency rate for foreign country has a great impact on the past deals and
sometimes, these organisations which will be going to suffer a heavy loss will affect the success
for this country (Chow and et. al, 2012).
Social: Society which is necessary for extreme precedence for McDonald's as they are
final consumers of their products and services which is factory-made by them. They are thus
essential for analysing the tastes and preferences of available customers at market place for
considering recent trends.
The positive impact is that launching of new and creative goods with their best services
would capture attention of number of domestic as well as foreign consumers.
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The negative impact is that emergence of various foreign products which are affecting the
sales of McDonald's might influence performance of company by decreasing their sales.
Technological: Introduction and use of advanced techniques are basically affecting the
quality of products immensely. They have both the effects on company.
The optimistic effect includes use of these scientific render can fabrication goods in
proper and efficient manner. They help in completing the task in given amount of time. They
tend to improve employee’s performance and skills as well.
The negative impact is that less knowledgeable employees may not be able to handle or
regulate these advanced equipment and may get danger to their life.
Legal: According to the external factors of legal bodies which play a vital role in
operational management by basically implementing various legal rules which would be followed
by this company while performing their business. All this is responsible for influencing whole
organisation in every way possible.
The positive effect is to prevent buyers as well as sellers from harmful effect which
would cause exploitation that may also influence their lives (Commander and Svejnar, 2011).
The negative effect would include number of laws that might be amended by legal
authorities which do control and bound this organisation to perform well in the business
functions.
Environment: These involve business which mainly depend on the surroundings of
nation as well as natural environment which might be useful in influencing the business
operations of McDonald's in every possible way.
The positive effect is that raw material which would be helpful in arranging of necessary
resources like land and building plan and machinery which might play major role in converting
the essential for output (Cordes, Richerson and Schwesinger, 2010).
The negative effect which will provide insufficient resources that would affect the
production department.
P5. SWOT analysis for McDonald's
McDonald's is a multinational brand for fast food centres and their trendy and tasty
products which are actually satisfying the needs and wants of domestic and foreign products.
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With their best services, this enterprise has actually expanded across UK's boundaries by having
their branch in different places with various motives (Cronan and et. al., 2011). SWOT analysis
is conducted by the organisation for identifying their hidden problems which might affect their
success factor. Thus, SWOT analysis of McDonald's is conducted as follows:
STRENGTHS
As the elements mentioned in the organisation which is going to be aware of hidden talent and
skills of employees due to McDonald's that can easily achieved their desired goals and aims
which is decided in minimum duration. Thus there would be strength of this company which is
mentioned:
 One of the major positive aspects of McDonald's is its quality of products which may
attract number of customers.
 Services of products and items delivered by them are on time.
 Effective strategies are being used to carry out the execution and running of their
business.
 Skilled and knowledgeable employees which might be useful for management or
bringing new equipments which has helped in improving efficiency.
WEAKNESSES
This shows invisible barriers of the firm which would affect the success of company (De Jonge,
2011). Thus, McDonald's has opened its branch at so many international as well as national
areas due to which they are basically facing large number of challenges like:
 Lack of communication in between the higher authority and lower level people.
 When not enough funds are collected which becomes a major challenge for this
enterprise as the whole company is basically dependent upon capital.
 Emergence of disputes which might occur between the employees as well as supervisor.
OPPORTUNITIES
By expanding the existing business at international level for this organisation, they need to
adopt various attractive strategies to modify current products which would be seeking attention
of the customers. Some of these opportunities are mentioned as below:
 Emergence of advanced technologies are basically providing many advantages to
achieve company's aim and objectives.
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 Availability of new products with innovative schemes
 Changes in the recent trends and products which would help in enhancing the product’s
quality and their services
 Availability of new and advanced equipment for accomplishing their tasks and activities
within minimum time period by attaining company goals and objectives as soon as
possible.
THREATS
Competitors of McDonald's have major threats which might influence their current plans and
policies.
 Entrance of foreign companies is a major threat for operational management.
 Changes in customer tastes and preferences is another big threat for the firm.
 Availability for close substitutes which is effective sales of this company.
P6.. Relationship between SWOT and PESTLE analysis
Analysis of internal and external factors that has great impact on success for McDonald's
due to their roles and responsibilities towards the firm (Erving and et. al., 2011).
Micro factors
(SWOT)
Macro factors
(PESTLE)
Strength: Quality products is major strength
and it would be essential for satisfying
domestic and foreign consumers.
Weaknesses: Lack of communication which
would lead to confusion and dispute among the
supervisors and workers (Fernando, 2011).
Political: Government has enacted number of
laws which would influence marketing
strategies (Gebauer, Paiola and Edvardsson,
2010). if the policy is in favour it will bring lot
of benefits to the business.
Economical: Change in the currency has great
impact on current economy of UK which will
affect the success of business. It will cause lack
of money at some point of transaction but later
all the money which would be used for
transaction should be all legal.
Social: Society is a cluster of number of
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individuals and other people which would have
end users of the products which mainly depend
on choice of customer. These are people who
can provide economy to business and they are
the only one who will buy the product.
Technological: Advanced technology provide
opportunities to achieve goals in minimum
duration. Latest technologies would bring best
outcome possible.
Legal: These bodies are liable to amend
various laws and sections to protect people
from exploitation.
Environmental: Resources are needed form the
surroundings to make impressive products that
would manufacture some raw materials.
CONCLUSION
From the above report, it has been analysed that the market of various types of
organisation includes private, public and voluntary. They have different size, scope and
structure which is used for attaining goals and objectives of the company is also discussed din
this report. It has been assessed from the report that McDonald's managers have to do proper
analysis by evaluation of various techniques like SWOT and PESTLE analysis which will help
company in easily achieving their targets. While doing this analysis, they try to identify the areas
which would be used for development of company and achievement of success in an effective
manner.
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