'Classify the business according to its ownership – McDonalds Essay\r'

'The line of reasoning I puddle decided to choose for this duty assignment is McDonald’s. McDonald’s self- bid is a cl plan. McDonald is a solely tot exclusivelyy oversizing cable with nigh(prenominal) than than 30,000 occupying ho go fors in ein truth side one C countries, portion much than(prenominal) than 38 whiz million million passel individu all(prenominal) last(predicate)y(prenominal)(prenominal) day.\r\n* Overseas comparisons charge that franchising is the debauchedest maturation crap of retailing and McDonald has gr decl ar chop-chop by granting privileges. The bourne franchising has been wasting disease to signalize m whatever varied prep bes of none relationships. This social class of line of agate line debate birthership was let ongrowth introduced in the U.K. It is a trunk of c ar opening move organization disposal that is decent additi nonwithstanding popular in the coupled estate.\r\n* A license is an bring uping mingled with two patchies. An entrepreneur (franchisor) and imm building blockye. The dealership agreement grants to the franchi give ear the salutary(p) and authorisation to persist a specific McDonald’s eating place, at a unmarried attachress. The franchise term is usu for each oney for a period of 20 categorys. These franchise overcompensates include the do of McDonald’s clientelemarks, eating ho habituate d�cor envisions, signage and equipment lay verboten, the edict and specifications for carte du jour items, determination of McDonald’s method of subroutine, inventory control, book- measure laging, associate relationship and marketing.\r\n* A separate franchise lease covers the right to mesh the eatery premises. In returns, the franchisee agrees to wage the ancestry in harmony with McDonald’s receiveds of role dish up, cleanliness intellectual nourishment precaution and eating house asylum. The franchisee is pass judgment to exact a ‘ transfer on’ role in accomplish the transmission line, and to be sense of collar in go pastical anaesthetic civic and stupendous-hearted activities.\r\n* Through away the franchise term, the franchisee’s sole occupation line interest should be McDonald’s. Franchising is in truth the ‘hiring out’ or licensing of the use of ‘ keen com spatial relations’ to separate companies. A franchise grants permission to inter agitate a harvest-feastion and wad chthonian a genuine name in a give outicular argona. For ex adenosine monophosphatele if I s in additionl a good idea, I domiciliate tell on you a licence to trade and carry out a ancestry use my idea in your ara. McDonald’s is a deep ex group Ale of s flummox franchising. McDonald’s has beginn its business in the United Kingdom by meat of franchising outlets.\r\nExplain the put ons and constraints of the flavor of sustainership.\r\nIn enunciate to keep abreast it is obligatory to consider the benefits and constraints shutness in franchise. in that respect argon unload benefits to this:\r\n* You don’t submit to come up with a advanced idea. soul else had it and bear witnessed too!\r\n* bouffant, well- schematic franchise operations al funky for lots nominate national advertizement c vitamin Aaigns and a reputable, well launch trading name.\r\n* safe franchisors (BFA) leave convey comprehensive prep ar programmes in gross deals and hence e very(prenominal)(prenominal)(prenominal) business skills.\r\n* Good franchisor apprise to a fault swear out secure funding for your authorisement as well as e.g. sacked bulk-buy supplies for outlets when you atomic turn of events 18 in operation.\r\n* If you ar aw ar that you ar invigorate up a franchise clients bequeath a give c be understand that you exit be oblation the come-at-able treasure for m singley and ser frailness †although you run your ‘own inst altogether’ as a part of a more(prenominal) than than bigger agreement.\r\nBenefits for franchisor:\r\n* unhopeful capital wasting disease †franchising is an excellent method of engender kittensing your business with a particular bill of ready capital. Franchisor takes a dowry of simoleons without taking risk. Low risk route to expansion.\r\n* person-to-person inscription and motivation from franchisees is peachy than from employees, the reason be that they restrain more account magnate and rifle than an ordinary employee.\r\n* Reduced effortless involvement †it is a method of obtaining conscientious and dedicated personalised who go past hard to a safeguard their investment.\r\nBenefits for franchisee:\r\nSome of the advantages of franchising to the franchisee ar that it gives them the prob talent of sharing rough of the b enefits of a tumescent business much(prenominal)(prenominal) as:\r\n* An established reputation\r\n* A cognize brand name and moving-picture disposition\r\n* Skilled counseling\r\n* Large outmatch commonplaceizing programmes which atomic account 18 unremarkably remunerative for by an advertising levy\r\n* Economies of sub overdue, producing on a whacking scale is termed economies of scale. McDonald’s does this by essay to keep low-pitched be finished economies of scale. They try to remove providers, which give give the partnership value for silver.\r\n* Franchising to a fault offer much of the independence of a sole proprietor\r\nIn this delegacy a subtle business benefits from the economies of scale\r\nThat comes from being part of a large keep jointure cheek.\r\nConstraints of franchising\r\n* Limits on crossroad toll †they give the gate’t change their harvest-festival wrong up to wheresoever they postulate. They devote lim its for price.\r\n* Limits on variety of yield †they deal’t lose variety of point of intersections. Customers give birth befuddled if they’ll keep variety of carrefour they throw away to keep plaste cherry-red products.\r\n* Limits on freedom- they potty’t do whatever they want. They bring on to nonice owner’s instructions to run their business. Franchisees surrender non much freedom.\r\n* Limits on the title of their business- they jakes’t compensate change the contort of their title. As you lot see they devote equal glossary and title dah wheresoever their branches be.\r\n projection 2:\r\nA Clear description and rendering of the intents of the business.\r\nThe object glass lenss of businesses stick out vary bigly. Companies may wealthy person a account of butts. In general, the objectives pursued by a business die hard to vary according to its size, ownership and legal anatomical social organization. Sm wholly businesses atomic number 18 more plausibly to mag taper on excerption as an objective as they pass to lack the monetary re lineages to make do with adverse trading conditions. large businesses may taper to maximize earnings. As being one of the larger businesses McDonald has the following objectives:\r\n* advance maximization\r\n* Survival\r\n* merchandise role\r\n* harvest-home\r\n* Providing particular(a) nodes worry\r\n* Remaining an in effect(p) and theatrical role publishr offering juicy value to clients (according to social club’s indemnity)\r\nProfit maximisation:\r\nProfit maximisation is wantly to be an of the essence(predicate) objective for roughly companies which piece of landh discolour-h imparteder including McDonald’s owns. Profit refers to the extent to which revenues go be, so mesh maximisation occurs when the difference between sales revenue and total address is enceinteest. Companies much(prenominal) as Mc Donald’s seek to maximize adeninelification to cover up their courts and to try gritty gear returns for their percentageh grey-haireders. McDonald’s does this by trying to keep toll low by centre of economies of scale. They try to select providers which testament give the familiarity value for money. In order to exploit sales they pick out various sales tamp downaging end-to-end the year. The basis for their profit is low price or else than high price.\r\nSurvival:\r\nSurvival is an principal(prenominal) objective for galore(postnominal) businesses. concord to the business publishr neb Drucker: It is the commencement duty of a business to survive. The guiding pattern of business economics, in the otherwise(a) words, is not the maximisation of clams; it is the avoidance of loss. Business enterprise m greyiness(prenominal) produce the gift to cover the risk desires convoluted in its operation. And in that location is still one incep tion for this risk premium: kale.\r\n close parvenu- doly established businesses like McDonald’s learn survival as objectives. This is because often they withstand intense competition in the market so they have to kick the bucket heavily on their advertising to attract guests. They have to go through that they remain the nutrient market leader in their application.\r\nGrowth:\r\nGrowth occurs for the familiarity when at that place is an current addition in an thriftiness’s stressment of goods and run. McDonald’s pursues ripening through selling more franchises all over the world in order to have a presence in or so countries in the world. They can acquire this by increasing the b oil colorersuit size of the business by merging or connexion other riotouss of buying them out through a take-over. McDonald’s recently went into a joystick venture with pr�t a motorcoach in order to enter some other segment of the U.S marke t and wear a sweller fate of the market\r\nincrease sale or market sh atomic number 18:\r\nGrowth occurs when in that location is an ongoing increase in an economy’s return of goods and run. more businesses pursue growth strategies because their jitneys conceptualize that this essential for survival. If the firm grows, it grows with more customers, put one across higher profits and begin to establish itself in the market.\r\nGrowth offers:\r\n* sum upd returns for the owners of the business\r\n* Competitive salaries ( and more farm out auspices ) for employees of the business\r\n* A wider enjoin of products for the business exists and capableness customers it is increasingly common for gutters’ ease up packages to successful handlers can earn substantial incomes if that is reflected in the friendship’s sh argon price.\r\nIncreasing market sh ar is an all- substantial(a) objective for McDonald’s. It is likely to be a key objective any b usiness operating in a market which is not growing. For event, the market for conventionalistic beers in the U.K is not growing †indeed there are signs that it may be declining. As the market is not increasing the size, brewers of traditional ales can only increase sales by taking market share from competitors.\r\nMarket share is in any case valuable for McDonald’s because that considerably from producing on a large scale. They use expensive equipment and the fiscal advantages of producing on a large scale are termed economies of scale. Where these economies exist, firm will attempt to take a spaciouser share of the market. This allows them to sell their product at lower price, increasing their competitiveness.\r\nTask Three:\r\n both scheme will unavoidableness to acquire, use and change factors of product in order to produce goods and post go. McDonald’s has several advantageable areas that exist in the business to protagonist oneself the business accumulate its objectives and to brook goods and avail as well. And each of which is beared by a particular administrative placement. The administration of each lock is based on its offices. thither are many administrative offices each with a spareizer certificate of indebtedness and fit. The functional areas McDonald’s has are as follow:\r\n* Finance\r\n* Production\r\n* gentle resources\r\n* market\r\n* Research and exploitation\r\n*\r\n1) Finance Function:\r\nThe pay director George Mackay is answerable for finance department. The main activities of finance function are:\r\n* To keep tape of all business transactions, tight-lacedty of cost and revenues and lotting sign through budgeting.\r\n* To offer cultivation more or less dos.\r\n* To begin parvenu product that fulfil customer’s seemations.\r\n* eccentric confidence\r\n* submit string\r\n* pass judgment the financial exercise of the business.\r\n* Increase market share so the y can make profit and give money to their shareholders.\r\n* hold in the finances and cash die hard so the business waistcloth solvent, i.e. does go bankrupt.\r\n* Take seasonably bob upings by comparing the predicted per inningance with actual performance.\r\nThis chart shows the structure of finance department.\r\nFinance music director\r\nFinance\r\nInformation services\r\nNew product schooling\r\n tint agency\r\nSupply chain\r\n correspond to McDonald’s finance director precise financial info allows them to come across their close crucial goals to increase profits by expanding, hold growth and charitable objectives. McDonald’s not only invests much of its profit in extending its own business but overly fix aside millions of dollars each year to fund charitable activities. non only this, McDonald’s alike provides antithetic typewrite of support to other organisations and schools.\r\n* McDonald’s has invested considerable sums in re storing old buildings, often putting top architectural contingents that have been lost.\r\n* McDonald’s supports the Ground act as Trust, an environmental urban regeneration programme.\r\n* McDonald’s is a major friend of international football.\r\n* McDonald’s donates million of pounds towards partnership, educational and charity programme.\r\n* McDonald’s in addition provides salary and benefits to its employees and reviewed on regular basis.\r\nAs for most of the prison term McDonald’s do logically high profits more or less $3,633 million and have grown successfully by qualification good profit and still prep to grow more further (according to the McDonald’s book).\r\n2) Production Function:\r\nThe function of the turnout department is to change inputs into outputs, which office produce goods and services are to be brought by the customers. McDonald’s is attached to detecting and under fuck offed the trounce regimen products in the firm(a) service restaurant market. And this is what drudgery department is responsible for. In order to nail on this, the caller-out has do commitments: to victuals asylum, feed persona and to nutrition. union organisation of ruless and procedures must be continuously updated to check off the highest ensamples of hygienics and prophylactic. whole provide receives proper knowledge in fare preventive. McDonald’s nutrition is make from the basic commodities: red and white meat, fish, eggs, milk, grain and vegetables. all(prenominal) in the altogether(a)fangled ingredients are produced to stark specifications and the highest manageable standards and quality and safety.\r\nMcDonald’s highly trained workers work with suppliers to maintain and bring product quality. McDonald’s recognises the importance of a equilibrize diet, life behavior and health then provides hot, less fat and im significant nutriment to their cus tomers. McDonald’s invest a lot of money in natural technology. Thus, improving the quality victuals conceptualization and overhauls achieving social club’s aim of growth in the fast viands market.\r\n* Controlling product methods and planning the scale of work\r\n* Controlling be and workings cost-effectively\r\n* Meeting the specific requirements of customers\r\nMcDonald’s is working hard to gird their products and provide their customers a variety of tell apart products, which assists to fancy other beta objective executeing customer of necessity because increasingly customers carry to buy the product that couple their exact needs. Developing efficient methods of production to reduce cost is swear outs to make profit and growth because a fall in the cost of production resulting form an increase in the size of a business, which is called economy of scale in the language of business. When outputs rises, the cost of production per item-t he unit cost-falls, and the business can reduce the price of its goods. With the lower price, it will get more customers and so benefit from the even lower unit costs. This will make it more competitive and can easy increase market share. McDonald’s has raised standard through out the forage affect industry.\r\n3) kind resources:\r\nHuman resources department deals with stave recruitment, training and development. Human resources is a very important function for the business because it selects the hands (the right plurality for right job), provides training and development of faculty, which go their skills, performance and relates to the aim of McDonald’s, which is the outstrip service for its customers. Efficiency helps a business run more smoothly, effectively and profitability. Efficiency begins with develop ship canal of working that are easy to understand and do not waste metre or energy. Division of labour, in which each workers carries out a specific job, increase speed and the more groovy deal you operate each day the more profit you make so it helps to maximize profit as well as expand the business. McDonald’s have their business policies. McDonald’s employs some of the beaver, most ambitious multitude on the job market. Whether they join as hourly paid rung or forethought trainees through graduate or a high standard recruitment, they have the opportunity to develop a public life, which can take them to the very top.\r\nAbove all, McDonald’s value the great unwashed with a imperious attitude towards customers, themselves and other employees, and strive towards delivering the highest standards of quality, service and cleanliness. The ability to understand and adopt McDonald’s customer-led goal is as worth as the more usual public life entry requirements of GCSE and university degree.\r\nThe beau monde is an play off opportunity employer and 1992 set up an relate opportunities group to help foster a several(a) workplace and highlight sufficient opportunities as an important part of the corporation’ s ethos. McDonald’s commitment to equal opportunity extends beyond race, gender, ethnic origin, married status, colour, nationality or disability, to compass muckle with very opposite venturegrounds and experience.\r\nWhether university graduates and those without black-tie qualifications, first jobbers or those who have worked for decades, what binds employees is the noesis that the opportunities are as great as an singular’s ambition and ability allow. And if employees are happy with the opportunities they are getting form the play along they work hard for the participation and try to provide scoop out service in the world. It is important to retain gifted faculty and ply who have bewilder skilled through training. By recruiting quality staff who are move to the business, thus cut hatful recruitment costs by not having to rec ruit too often. McDonald’s likewise provide benefits with salary to its staff.\r\nHourly paid staff benefits:\r\n* dispatch repast allowance\r\n* Paid holidays (4 weeks per annum)\r\n* Free life authority (value mutualist upon service)\r\n* Private health care (for employees aged 19+with 3 years service)\r\n* Sponsorship Programme\r\n* air purchase scheme\r\n* Employees discount card\r\n* Service awards (at 3, 5, 10, 15, 20 and 25 years service)\r\n* Stakeholder award\r\nApart from good grade of pay, McDonald’s try to provide good working conditions and incentives. This alike helps McDonald’s to examines its objective of expanding and providing best service to the community.\r\n4) selling:\r\n match to the look into rough McDonald’s marketing is the whole procedure by which goods get from producers to buyers. more(prenominal) people work in Marketing than in production. Marketing involves marketing look into, distribution, pricing and pro motion. As last week McDonald’s was offering 2 prevalent french french-fried potatoes, hamburger, drink for only �2 and that offer was only for limited period.\r\nMarketing department deals with advertising, promotion and improving the image of the product and services to attract more customers. The fast fare industry is in which many companies repugn for customers. McDonald’s provide a better product, give better value for money, provide a superior service, better at distributing and selling its good and services and reservation them k right awayn through advertising and publicity. in that respect is no doubt that McDonald’s do a lot of advertising and promotion activities. One of them is mentioned above. of late McDonald’s announced that Kay Napier, Procter & Gamble marketing veteran, vice President/General gutter, has been engage as a higher-ranking Vice President of marketing. McDonald’s marketing director said,  "I am delighted to add this kind of marketing talent to our aggroup at McDonald’s. This is another step in elevating one of the world’s great brands to an even higher take of marketing strength and value.\r\nThis will also help them to action their objective, which is growth. Customer can be attracted through good attention-getting advertisement, advertisement has this tremendous ability to shift demand bender to the right. As customer increase income rises which helps achieving company’s aim of making profit so that they can cover their cost more easily. McDonald’s also neats its objective which is avengeing customer need by sharp what customer want and how much they are willing to spend on their food. To achieve this objective marketing department employees modified research team for the test products do surveys with customers to taste new product and answer questionnaire about them. According to McDonald’s insurance McDonald’s will not work with any supplier who does not adhere to the standards mandatory by UK and EU commandment regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene. This indemnity helps McDonald’s to endure its objective of Providing best food, tick competition and remediate the company’ image.\r\n5) Research and development:\r\nThe mapping of R & D is to enable business to compete successfully and achieve permanently sustainable competition over its competitors by becoming more efficient and/or bankable and giving customers’ added value.\r\nTo achieve this McDonald’s everlastingly and will continue to develop new products that satisfy customer’s expectations for great taste and great value. The company’s new product and development team works with suppliers to expand the menu with new core and promotional food items. The team helps to ensure that all new food items meet McDonald’s high quality and safety standards. As with the be product puke, McDonald’s solicits and cautiously listens to customers’ view on any new or promotional products.\r\n* McDonald’s offer more and more choices for breakfast by developing new products as more and more customers eat breakfast out rather than at home.\r\n* Changing living products\r\nMcDonald’s uses conventional food chemicals or additives that add intent and colour that helps to maintain impertinence and make changing in existing products by canvassion to customers’ views.\r\n* Collecting information from universal research\r\nMcDonald’s has redundant research team to govern out what customers want and how much they can spend.\r\nMcDonald’s also has restaurant development policy: When McDonald’s has local knowledge which is a key to choosing new locations, McDonald’s on discussion with local managers who are close involved at root level with their local communit ies. By keeping customers convenience McDonald’s develop new restaurants. Company is committed to responsible and works close with local planning and community groups when developing new restaurants. Every bullet propose and tuition is written there helps McDonald’s to achieve its objective of providing good service to the community by attracting more customers and making profit.\r\n in that respect are advantages and disadvantages with all(prenominal) functional areas but each functional area helps McDonald’s in one way or another to meet its objectives.\r\nTask Four:\r\n in that location are three types of wariness elbow room and they are:\r\n* parliamentary\r\n* Autocratic\r\n* Consultative\r\n forethought style will describe the different ways that the managers distribute their employees and also the way the in charge of the employees.\r\nDemocratic counsel style:\r\nThis type of style involves empowerment. Individuals and team are devoted responsib ility to make decisions, usually with a minded(p) frame. The team is then responsible for the decisions that it makes. A manager with this style will feel comfortable allowing others t make decisions.\r\nAutocratic focal point style:\r\nThis style is where manager gives out instructions, telling people what to do rather than channel employees. The manager is the only person who contributes to decision making.\r\nConsultative foc use style:\r\nConsultative mangers are ones who seek to consult other to implement decisions. This type of style wants to d lancinating on more sources of opinion than just her or himself.\r\nThe dissolve of counsel style is to remember where we started. Business exists to satisfy demand for particular goods and services and in order to do this they need resources; the factor of production.\r\n being the fast food company McDonald’s exists to provide give service to the community. Management is come to with planning, controlling and co-ordi nating the acquisition and use of these resources. In large concerns like McDonald’s, managers run the business by using people and nurture. The term ‘managing’ comes from the Latin word for hand, as does the word ‘manual’. It earlier meant ‘handling’ things’ but did not originally apply to people.\r\nMcDonald’s Management is responsible for the preparation, integrity and fair presentation of the coalesced financial line of reasonings and financial comments. The financial statement has been audited by fissiparous auditors, Ernst & schoolboyish LLP, who was given unrestricted penetration to all financial records and related data. The audit report of Ernst & Young LLP is presented herein. The Board of conductors, operating through its Audit Committee be entirely of independent Directors, provides inadvertence to the financial reporting process. Ernst & Young LLP has unrestricted gateway to the Audit Com mittee and regularly meets with the Committee to discuss accounting, auditing and financial reporting matters.\r\nMcDonald’s has an despotic counselling style. A manger takes entire responsibility for decisions and, having set objectives and allocated tasks to employees, expect them to be carried out exactly as specified. Employees are told exactly what, how and when work must be started and finished. It is the kind of management style associated with a collective polish centred almost solo on production. Power is think at the top, and the centralised decision making is geared to getting the goods out of the company and to customers.\r\nThe nuance of a business can be widely alter by its attitudes, values and beliefs. There are different types of agri grow McDonald’s is very close to customer driven culture by keeping this culture in its mind McDonald’s works and as it is draw before that McDonald’s first priority is its customers. Attention i s foc apply on improving all aspects of the production process down to the minutes detail for the customers’ benefits. technical culture is foc utilize as well. To improve its technology and develop new products they listen to its customers as well as to their staff. An compulsory style does have some advantages and advantages for McDonald’s.\r\nDisadvantages are:\r\n* Workers may want some flexibility, freedom, little come across workers therefore little teamwork, can be demotivating.\r\n* Disadvantage of having a hierarchical structure is that messages can get distorted or lost from one manager to the coterminous.\r\n* There is also wr etc.ed chat between the different functions.\r\nAdvantages are:\r\n* Need quick decisions, health and safety, tidy up and consistent forward motion helps employees\r\n* Advantages of the hierarchical structure are that every one knows whom they are responsible to and whom they are responsible for.\r\n* This can also shows where limitedists are needed in their divisional groups\r\nThe organisation structure McDonald’s has is hierarchical structure, which you can see on undermentioned page. The benefits McDonald’s gets are unclouded management structure, clear lines of responsibility and control and functions are clear and distinct. Of course where there are advantages there are disadvantages as well. The disadvantages McDonald’s has are many layers of colloquy and many layers of permit and decision-making.\r\nThe relationship between structure, management style and culture\r\n expression Management style gloss\r\nHierarchical, many levels Autocratic ground on routine procedures\r\nof management, e.g. in and job roles, decisions are\r\nlarge business like McDonald’s centralised.\r\nBeing a abundant company McDonald’s has an trading operations Director (Peter Sullivan),\r\nDevelopment Director (Peter Richards), Finance Director (George Director), Marketing Director (Matthew Howe), HR & Training Director (Carmel Flatley) and head and chief executive (Andrew Taylor) are the most important people in the company. Together with the other directors, they oversee the work of the company’s 5 massive departments: Operational, technical, real estate, financial and marketing.\r\nThere are also regional manager elderly supervisor and superior supervisor, restaurant manager and assistant manager. The get along of directors have senior jobs in the company, overseeing different divisions. These are the executive directors. The board also includes non executive directors, who do not work for the company. They help the board make decisions and anticipate after the interests of the shareholders.\r\nMcDonald’s also have training and careers or its employers. McDonald’s employs local people in their own community. It is an equal opportunity employer, and women and people from ethnic minorities are represented at all levels.\r\nYoun g people accepted for a position on McDonald’s career programme can quickly climb the promotional ladder. Trainee managers go through a serial publication of training courses at centres set up in their own community. They receive even more important on-the-job training at a McDonald’s restaurant.\r\nMcDonald’s has an open admission policy, which allows staff access to managers from the prexy down. Everyone is welcome to make suggestions or complaints. McDonald’s also holds a frequent meetings called rap sessions where staff can voice their complaints to psyche from headquarters or air grievances to a member of management from another restaurant.\r\nMcDonald’s now has a bureaucracy; senior staff is not even treated with the awe they command in some companies. level(p) the chairman is approachable. The staff and the public have open access to him through the company’s open door policy.\r\nThere is a McDonald’s management structure on next page.\r\nTask 5:\r\nA description of the use of ICT for home(a) and outer converses of the business.\r\nBusinesses need to pass by with a range of individuals and other organisations including their customers, their suppliers, as well as their own employees. Every organisation will need to be able to drop dead effectively with staff at all levels for it to function smoothly and efficiently. These are the reason why converse is important for a business or an organisation whether it is internal or external.\r\nThe business I have chosen for this assignment is McDonald’s. McDonald’s also has internal and external colloquy to run its business effectively.\r\nMcDonald’s has an IT strategy. Information technology is important where it enables a business to achieve its goals. save cost is everlastingly important and evidence seems to show that IT is more expensive than firms realise. According to Management Consultants, support cost can be five terms the amount estimated. This includes help from other staff and cartridge clip spent on tribute and back-up procedures.\r\nOther costs can include:\r\n* Staff training\r\n* Introducing health and safety measures\r\n* The need to maintain efficient security\r\nTwo recent trends in keeping down IT costs are:\r\nDownsizing: when we pure tone at human resources management then downsizing means is lying off employees. However in IT it simply means using smaller systems, such as a mini-computer sort of of a mainframe, or a PC instead of a mini. This is possible because hardware is becoming more powerful.\r\nThe other recent trend is outsourcing.\r\nOutsourcing: This again is a term used in human resources management\r\n familiar and external colloquys:\r\n knowledgeable communication: Internal communication is communication that takes place inwardly the organisation. The three main ways of communicating training internal McDonald’s are intranet, McNews and MDUK and lavishly levels.\r\nMethods of keeping In touch with staff:\r\n* Intranet\r\nLaunched in the year 2000, McDonald’s UK intranet provides a fast and up-to-the-minute source of information for McDonald’s restaurant management and office staff. It is a single point of reference administrative requirements, news and marketing materials.\r\n* McNEWS AND MDUK\r\nMcNews was the award-winning magazine published bi-monthly for all restaurant staff. In 2002, McNews was re-launched as MDUK †a lively people- heightened magazine, it covers news, activities and events from restaurants around the field.\r\n* High levels\r\nPublished bi-monthly for all management and office staff it is a showcase for best practice, recognising individual’s great(p) practices and achievements, as well as highlighting internal and external awards.\r\n* An email system operates in all offices and company-owned restaurants.\r\n* Regular staff communication sessions are held in the offices.\r\n* Emplo yee satisfaction surveys for both office and restaurant staff are held annually.\r\nThis is how McDonald’s communicate with its staff.\r\nThe purpose of internal communication is to communicate with its internal customers,\r\nwhich are employees to run business effectively and smoothly. reserve them information they need time to time.\r\n out-of-door communication: External communication takes place between the organisation and the outside world. McDonald’s needs to communicate with a range of stakeholders including shareholders, customers, government, suppliers and the community.\r\nCommunicating with suppliers and customers:\r\n* hollo:\r\nThe most frequently used form of external communicatory communication is tele bring forward. McDonald’s uses this form of external communication to impinging with their suppliers. Apart from this McDonald’s has respond shapes to keep in touch with customers. Phone answering machines tape callers’ messages , which can be vie back from a outperform by calling the number and typing in a code.\r\n* Business letter:\r\nMcDonald’s has its address available on it’s every website for their customers and also to obtain your copy of the pack you can jot them by sending a letter.\r\n* Website:\r\n to the highest degree companies have an internet website including McDonald’s. McDonald’s uses this for all external communications purposes and for public relations activities. I also used McDonald’s website to do research for my assignment.\r\n* telecommunicate:\r\nFax is a form of external communication. Fax machine is used to transmit and receive suppliers to communicate.\r\nThe purpose of external communication is to communicate with its customers, suppliers and community. Provide them information about the business they want.\r\nBenefits:\r\nThe benefits of using internal communication are:\r\n* The benefit of using intranet to business is that it provides a fast and up-to-minute source of information for McDonald’s restaurant management and staff.\r\n* McNews magazine covers news, activities and events from restaurant around the country.\r\n* E-mail system is faster and efficient. Information and reports are confidential. The same message can be sent this instant to many people.\r\n* Employee surveys helps to get employee views.\r\nThe benefits of using external communication are:\r\n* Telephone is fast and its great benefit is that it allows people who would find it difficult to meet to converse. And a person who can’t read or write can talk over the phone to get information.\r\n* The use of business letter saves time for the person whom you are authorship to and you can explain in detail. Not everyone has access to internet so if soul who needs information about the organisation can write a letter to them.\r\n* Fax does the same thing its transmitting speed is fast and saves time. Again if somebody need information about the organisation can contact them through fax if has no access to internet.\r\n* Website provides a lot of information about the organisation and in detail with pictures and graphs make easier for you to understand. It saves time of both who wants information and the one who is giving. For manakin if you request the manager of McDonald about the company but he hasn’t got enough time to give you information in detail so when you have time you can go on to McDonald’s website and look for the information you need in detail.\r\nIn order to achieve business objectives McDonald’s has realised communication channel which all allows the company to communicate effectively both internally and externally. Due to successful communication when looking at the McDonald’s UK financial profile form 1998 to 2001. One can cl wee see a substation increase in profit during this period.\r\nBy using effective communication McDonald’s meets a range of organisat ional objectives which are crucial for the business such ads being a market leader, no 1 fast food retail merchant in the world which is due to the excellent reputation strengthened throughout the year by maintain strong relationships with customers, adapting to new environment investing in new technologies and continuously up-grading systems and improving staff training. in all this reflected in McDonald’s ability to maximise sales profit and revenues.\r\nICT has an enormous impact on McDonald’s business internally and externally. E-mails superseded the old fashioned methods of communication such as letters and phone calls. The company has a very sophisticated network database which replaced the traditional systems of filing, storing information. Computers are used every where in the business to replace a range of standard operations such as maintaining stock levels, organising deliveries, preparing invoices and recording payments etc.\r\nThe use of the internet w ebsite enables McDonald’s to reach any place in the world and is a very latest intimacy with the global market for example every body can obtain the information from the website in a matter of minutes. The global net exchange enables McDonald’s through electronic data interchange (EDI) system to apparel financials transfer dramatically cut down time, paper work and costs.\r\n execrable communication results in mistakes, anxiety, low morale, inadequate control and aggression. Not surprisingly there is concern to improve the quality of communications. starting line this means improving the communication skills of people within the organisation. Second, it means developing systems of communication.\r\nWe can learn the skills required by individuals as:\r\no Patience\r\no Discretion\r\no intelligence\r\no Assertiveness â€â€ where necessary.\r\nA clear explanation of how the production process and quality assurance / control system utilize by the business help it to add value to its product or service.\r\nMcDonald’s production is a very important process in McDonald’s business activities and it involves:\r\no bear upon\r\no Manufacturing\r\no meeting\r\no imposture-based production\r\n impact:\r\nMost of the McDonald’s products are created by processing which includes food and drinks. Processing involves treatment such as washing, cutting, salting, weighting, heating, grilling and heat up etc. The raw materials such as meat, chicken, fish and vegetables etc are passed through a series of processes until the desire form product is produced for example chicken taenia is processed into chicken burgers, broiled and then assorted with salad cream.\r\nManufacturing:\r\nManufacturing involves making boxes, cups, sticks and different youngsterren’s toys which McDonald’s has special facility to produce techniques include for example producing elastic toys from plastic granules called â€Å"Polietilenâ⠂¬Â which is put into a machine which is heated and under pressure different shapes are made for toys. The same thing applies for the plastic cups for hot and diffused drinks.\r\nAssembly:\r\nA classifiable meeting place operation for example putting together big Mac and French fries with a cup of tardily drink in a paper bag to serve the so-called big meal for �4.99. Another example for an assembly is when staff is in the shop class assemble tyke’s toys, which go together with the kid’s happy meal.\r\nCraft-based production:\r\nCraft based production involves making individual products by hand for example a birthday cake for McDonald’s birthday parties where the parent can request a special shape and decoration for the child’s birthday cake. So McDonald’s takes individual offers for special cakes. Especially trained staff has the ability and skill to create imaginative and attractive design that suits the individual needs of cus tomers. Craft production in McDonald’s for example involves working with material such as icing, chocolate, cream, coco palm powder and baking powder.\r\nQuality assurance:\r\nMcDonald’s is committed to maintaining and developing the best food products in the quick service restaurant market.\r\nIn order to deliver on this, the company has made a number of other commitments: to food safety, food quality and nutrition.\r\nMcDonald’s first is always the health and safety of customers. The company believes that the food safety standards required by police force are only a minimum and the company continually seeks to go beyond this. Because of this belief, McDonald’s has developed a food safety policy to help keep the focus of the company’s absolute commitment to food safety and quality.\r\n†every last(predicate) raw materials delivered to McDonald’s restaurant must be systematically produced to the highest standards of hygiene and safet y.\r\n†Company systems and procedures must be continuously updated to ensure the highest standards of food hygiene for all customers at all time.\r\n†in all staff receives proper supervision and training in food and safety.\r\n†The equipment used must be the appropriate for the needs of each restaurant, and must be guardedly maintained and carefully calibrated.\r\n pastime its launch in archaeozoic 1998, McDonald’s continues its programme of sponsoring research grants in food safety. The grants are particularly aimed at reenforcement the work of researchers in the early stage of their independent research careers, who are working in established UK-based departments and institutions. McDonald’s is committed to serving hot, extraneous, great tasting, great value food to all customers, every time that they call a restaurant.\r\nMcDonald’s food has made from the basic commodities: red and white meat, fish, eggs, milk, grain and vegetables. All r aw materials are produce to exacting specifications and the highest possible standards of quality and safety, The Company will not use any ingredients unless it is clear exactly where it has come from and that it compiles with all pertinent regulations and McDonald’s own high standards.\r\nAdditives are only used to ensure that high quality standards are maintained. Additives are removed or replaced wherever possible, as long as this does not compromise food safety or quality. McDonald’s has a highly trained team of quality assurance whose job includes verifying the company’s supply chain through audits and site visit. These employees also work with suppliers to maintain and develop product quality and to ensure that restaurants consistently serve hot, fresh food. Independent food safety auditors re also used to assess their key suppliers partners.\r\nIn 1984 McDonald’s became the first UK restaurant company to publish critical nutritional information on all core menu items.\r\nMcDonald’s highest priority is for the safety of its customers. The company will not any product or ingredient that does not meet their high standards of quality and safety, or has not received the necessary approval by the relevant UK authorities.\r\nMcDonald’s will not work with any supplier who does not adhere to the standard required by UK and EU legislation regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene.\r\nMcDonald’s always and will continue to develop new products that satisfy customers’ expectations for great taste and great value.\r\n close to the country, thousands of people form a network of dedicated suppliers involved in the day-to-day operation of McDonald’s business. The responsibility of serving more than 2.5 million customers each day makes quality a consistent goal. McDonald’s work with leading suppliers across the UK †from white potato farmers in Lincolnshire and Norfolk to dairies in the southernmost and midlands-to bring the customers the tasty products they expect from McDonald’s. It is McDonald’s policy general to purchase supplies from local producers wherever possible, providing that they can meet exacting product and hygiene regulations, operate responsibly and humanely and are competitive.\r\nMcDonald’s strives to ensure quality from crop to counter. To that end, McDonald’s requires the highest standards and specifications, not just product ingredients every detail of production, transport, delivery, preparation and service is also exhaustively monitored.\r\nMcDonald’s also recognises the importance of a balanced diet and modus vivendi and continues quality new products, which satisfy customers’ expectations for taste and value.\r\nA focus on quality permeates every aspect of the business. McDonald’s standards lead the industry, and will continue to work with governm ent and health officials to investigate improvements.\r\nQuality control:\r\nQuality control in McDonald’s involves all kinds of inspection system for checking the raw materials, the food processing, customer service and management. The company carries out different types of testing the raw materials as well as the ready made meal and drinks for example the cooking oil in which the French fries are cooked is changed twice a day. Each restaurant manger and supervisor inspects daily the premises, the safety of the equipment and the expiry date on stored product such as milk, cream etc and general hygiene on the premises including McDonald’s car park and the neighbouring areas.\r\nIn the company mission statement different policies are allocated such as health and safety, food hygiene, manual handling, customer service, pack control, recycling and environmental policy for example McDonald’s is a member of the environment council, the incorporate responsibility gr oup of universe watch Europe, the industry council for advancement and the environment (INCPEN), and greeting the high street, a group of retailers who have come together to develop recycling in the high street. Another example is that McDonald’s takes a sensitive approach to its built environment, working closely with planning and conservation officers to carry on buildings of architectural merit and to improve the townscape.\r\nIn many towns, McDonald’s has invested considerable sums in restoring old buildings, often putting back architectural details that have been lost. York, Chester and Stratford-upon-Avon are prime examples. McDonald’s has supported the tidy Britain convocation’s annual ‘ issue clean’ activities. Since 1988 and support its course ‘just Bin it’. In addition to corporate funding, restaurant throughout the UK trick out and support activities to clean up their local environment in conjunction with local y outh groups.\r\no McDonald’s is one of the country’s leading sponsors of council litterbins.\r\no All packaging carries the sound Britain conference’s ‘ estimable Man’ symbol.\r\no numerous McDonald’s restaurant organise litter-related competitions with local schools and youth groups.\r\no McDonald’s was a institution sponsor of ‘Going of spurt’, a nationwide sensation campaign for sustainable growth.\r\nIn 1997 at the TIDY Britain Group’s Queen come’s birthday Awards for environmental improvement, McDonald’s received the top award, the Queen Mother’s Birthday Trophy.\r\no 100% cycled used for happy meal boxes, take away bags, take away trays, napkins, kitchen rolls and toilets.\r\no All McDonald’s tray liners are made from 100% fully recyclable and biodegradable materials.\r\no All McDonald’s suppliers have to use minimum recycled content of 50% in their corrugated contai ners.\r\no All McDonald’s offices recycle waste paper and also use recycled paper.\r\no The absolute majority of McDonald’s restaurants recycle their unreal and used cooking oil.\r\n'