Business Environment Essay

1.LIST SOME STAKEHOLDERS OF MCDONALDS. CLASIFY THEM AS INTERNAL, CONNECTED AND EXTERNAL TYPES.Stakeholders can be be as individuals and stems who be affected by the activities of an shaping. The notwithstanding about important stakeholders can be seen as those with most to lose from the organizations actions, but this does not everlastingly reflect their relative power An organizations stakeholders atomic number 18 all discloseies who can reasonably be understood to be affected by its decisions. They can be deemed to represent the concerns social and environmental capital as swell as economic. Stakeholders can be of very different and varied guises and to a fault harbor conflicting interests consequently, its contrive and reputation in the eyes of its stakeholders is critical to the companion. Mainly they can be categorized into three study groups1) indispensable Stakeholders2) Connected Stakeholders3) External Stakeholders4) Stakeholders ConflictsStakeholders be foun d in all organizations, businesses or firms from a local anaesthetic grocery store to huge multinational companies such as Coca-Cola, McDonalds and Microsoft. The number of stakeholders per business will falsify as will their enormousness and influence. The type of organization or product / service it supplies will also determine its stakeholders. A Public Limited Corporation may have far more than stakeholders than a family owned business due to its vast numbers of sh beholders.Discussing about McDonalds, it also hold more stakeholders those who start outaffected and vice versa. Stakeholders of McDonalds can be categorized into the three major groups as shown underInternal StakeholdersFollowing ar the stakeholders which fall under this category1)Managers or Directors2)Staff or EmployeesInternal stakeholders are those who are members of the business organization. These stakeholders are situated within the McDonald and may affect the day-to-day running of McDonalds or be affe cted. Their interest would be in the McDonalds success which will alternatively secure their shell outer and confirm them for high wages and benefits. example of the internal stakeholder for McDonald would be as followsThe employees/ mental faculty member operationing in the McDonalds fertiliseing placeConnected StakeholdersFollowing are the stakeholders which fall under this category1)Shareholders2)Customers3)Suppliers4)Finance providersConnected stakeholders are those outside the organization but have a direct interest with the progress of the business. McDonalds suppliers would want that the business runs and grows well, as this will ensure more supplies to McDonald. The owner/shareholder will look forrader for high turnover, musical composition the guest will look for a great entertain of the money which they are going to spendExample of connected stakeholders for McDonalds would be as followsShareholder/owner Emirates fasting Food Corporation LLCSupplier Coca-ColaExt ernal StakeholdersFollowing are the stakeholders which fall under this category1) residential district2)Environmental obligate Groups3)Government4)Trade unionsExternal stakeholders are those who are not the member of the organization, but they are indirectly affected with the ups and downs of the business. Example of the external stakeholders of the McDonalds in UAE is as followsGovernment Environment Agency UAEStakeholders ConflictsThere are numerous chances of conflicts among the interests of the stakeholders, i.e. clients would like to avail the stovepipe product and service at a very low price, while on the early(a) hand managers and directors would be expecting increase in the profit ratio, which cannot be touchd by whirl the products and services at a low price. Logically, a company should tailor its communication to each stakeholder group individually to engage the special concerns of that group. It is important that an organization meets the need of the most dominant s takeholders, but the needs of the other stakeholders need to be considered nearly every decision becomes a compromise.2.How does McDonalds social responsibleness affects its business and stakeholders? Analyze McDonalds corporate social responsibility for its suppliers and the company.Corporate responsibility means many things to many people. At McDonalds, being a responsible company means living our measure outs to alter us to execute food responsibly and manoeuvre toward a sustainable future. The goal of McDonalds CSR is to embrace responsibility for the companys actions and encourage a positive impact through its activities on the environment, con jointureers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-foc drug abused businesses would proactively promote thepublic interest (PI) by encouraging community appendage and development, and voluntarily eliminating practices that combat injury the public sphere, regardless of legality.By maintaining their CSR policy the leave a great impact on their stakeholders, and at long last maintains their reputation. This also affects their business in a very positive manner. McDonalds Corporation is among Most prise Companies for social responsibility. In 2001 it was ranked in the Wall Street Journal as number louvre in reputation for corporate social responsibility. McDonalds social responsibility always focuses on a goal of influencing a behavior change among the community and its stakeholders which is to contribute in up the environmental and community well-being.McDonalds CSR policy for its SuppliersAs it is assumed, McDonalds supply chain is large and complex. They have numerous direct suppliers companies that call for or deliver final products for restaurants. They have an even larger number of indirect suppliers farms and facilities that grow and make the ingredients that get delivered to their direct suppliers. They en spate a supply chain that pr ofitably yields high- role, safe products without supply revolve while leveraging their leadership position to create a net benefit by improving ethical, environmental and economic outcomes.Ethical They envision purchasing from suppliers that follow practices that ensure the health and safety of their employees and the benefit and humane treatment of animals in the supply chain.Environmental They envision influencing the sourcing of the materials and ensuring the design of their products, manufacturing, distribution and use slander actioncycle impacts on the environment.Economic They envision delivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities that their suppliers operate in.McDonalds suppliers are expected to share and apply McDonalds vision of sustainable supply to their own suppliers (McDonalds indirect suppliers). They launched an enhanced Social Accountability program, including online training for suppliers, their mental quickness managers, and McDonalds supply chain staff.99% of our 523 approved abattoirs were audited for animal welfare in 2007, and 99.2% of those passed their audits. Seven of our ennead largest markets have introduced the environmental scorecard to their suppliers. In 2007, 91% of our fish was sourced from fisheries without any unsatisfactory sustainability ratings McDonalds orbiculate minimum standard prohibits the use of antibiotics when used solely for growth promotion purposes. 100% of their direct race poultry suppliers around the world have acknowledged their compliance with their antibiotics policyMcDonalds CSR policy for the CommunityAccording to the McDonald community approach, it states thatGiving back has been fundamental to our business ever since Ray Kroc founded McDonalds more than 50 years ago. Our communities give us so much in flownot just by supporting our business but by increasing our brand visibility an d strengthening our relationships with our stakeholders. We use three key strengthsour scope, our people and our profitsto make a meaningful and lasting impact on the global communities where we live and work.McDonalds support its communities by working for them in a wide perspective. Mentioning round of the activities that McDonalds carry in favor of the community as underWHEN DISASTER STRIKESWhen tragedy arrives, McDonalds the McDonalds System responds. McDonalds employees, franchisees and suppliers mobilize to provide assistance in manyforms. Over the last several(prenominal) years, our System has provided food and other assistance to victims of such disasters as the 9/11 tragedy in New York City, Pennsylvania and Washington D.C. in 2001, the tsunami in Southeast Asia in 2004 and the devastating hurricane season in the U.S. in 2005 During the May 12 earthquake in China. McDonalds China served almost 40,000 meals to earthquake victims, comforter workers, military personnel, hosp itals and police and fire department officers.THE MCDONALDS FAMILY GIVES BACKMcDonalds employees, and others within the McDonalds system, are given the opportunity to provide support for members of the system in the aftermath of innate disasters. McDonalds Family Charity, set up in 2000, has succeeded in distributing close to $4 million to over 4,000 individuals who have lost their homes or possessions during natural disasters. In January 2004, McDonalds Restaurants of Canada created the 10 Cent Happy Meal Donation program. Through this program, RMHC Canada receives 10 cents from the cut-rate sale of every Happy Meal purchased, at every Canadian McDonalds restaurant, every day of the year. It is RMHC Canadas largest source of funding, reaching a milestone in 2009 of CA$25 million in add donations since inceptionGOING GREENMcDonalds delivery trucks in the United Arab Emirates are running on 100 percent biodiesel made with recycled vegetable oil from the chains more than 80 restaur ants in the Emirates.3.What are the factors that contributed to a wide corporate image of McDonalds?A corporate image is the sum of the impressions that stakeholders (customers, suppliers, employees and the community) hold about your companyin other words, your reputation. The goal is to show what you are as a company throughout all its facets (not pretending to be something you arent)Following are the factors that lead to a good corporate image of McDonaldsBeing a Responsible and Good EmployerFair Dealing with SuppliersTaking help of the CustomersTransparent company policyBeing a Responsible and Good EmployerMcDonalds is considered to be one of the best examples as a good employer. They provide their employees with a friendly and very convenient workplace to work in. As an employer they take care of the followingsHuman Rights and the LawThey prohibit physical punishment or abuse. They assess the right of employees to associate or not to associate with any group, as permitted by and in amity with applicable laws and regulations. They comply with battle laws in every market where we operate.Respect and DignityThey provide have-to doe with opportunity for employees and applicants. McDonalds employees work in a place that is free from harassment, intimidation or abuse, versed or otherwise, or acts or threats of physical violence.Inclusion and DiversityMcDonalds provides bear upon treatment and equal employment opportunity without regard to race, ethnicity, color, religion, gender, age, national origin or ancestry, physical or mental disability, versed orientation, military status or any other basis protected by law.it also applies to the employment decisions, including recruitment, hiring, placement, development, promotion, training, scheduling, benefits, compensation and terminationFair Dealing with SuppliersThey treat their suppliers respectfully, fairly and honestly, and expect their suppliers to treat them in the comparable way. McDonalds bases its relationships with suppliers on lawful, efficient and fair practices.McDonalds is committed to fair employment practices and strives to provide a safe, healthful and productive work environment for its employees. In turn, they strive to work with suppliers who share their assesss.Taking care of the CustomersMcDonalds is highly focused about its customers, and it could be observed in this statement Our customers are the reason for our conception.Best Product Quality and SafetyMcDonalds is committed to ensuring that the foods and beverages they serve to their customers are safe. Their safety and quality standards for food, beverages, toys and promotional items meet or exceed all applicable government requirements. They take this as part of their responsibility as a good corporate citizen, and know it is also essential to the continuing growth and profitability of their business.Best Customer Care/HandlingMcDonalds assures that each and every customer entering the restaurant is prope rly welcomed with due attention, is satisfied excellently in terms of the product they offer. They make sure that customer while leaving is satisfied with the product and service so that they retain their each customer.Transparent corporation PolicyMcDonald is committed to have a crystal clear policy in terms of the followings communication with the public/mediaTrade PracticesFair competitionGovernment inquiries4. Analyze McDonalds mission statements in the case. What is the value of mission statement to McDonalds employees, Customers and suppliers?A Mission Statement defines the organizations purpose and elementaryobjectives. By crafting a clear mission statement and vision statement, you can powerfully communicate your intentions and be active your team or organization to realize an attractive and inspiring common vision of the future.McDonalds MISSION STATEMENTSThe two most famous mission statements of McDonalds are as follows 1)To be our customers favorite place and way to e at2)Promote diversity and inclusion among our employees, owner/operator and supplier who represent diverse populations McDonalds serve around the globeLooking at the brand mission statement of McDonalds it clearly indicates that McDonalds is highly customer focused. They are committed to improve their operations and enhance their customers experience. They follow QSC&V strategy, QSC&V is an abbreviation for Quality, Service, Cleanliness & nurse which is said to be a benchmark used throughout the world by the McDonalds Corporation. This measuring rod is used for every customer, each and every time. In order to fulfill the mission statement the staff and employees form a friendly and happy environment in their respective restaurants. By doing so they make their goals and ultimately fulfill their mission statementThe second mission statement of McDonalds describes the following approach At McDonalds, diversity and inclusion are part of our culture- from the crew room to the board ro om, we are working to achieve this goal every day by creating an environment for everyone to contribute their best. Our journey to bring our values to life have been documented in None Of Us Is As Good As All Of Us and it is a journey that continues today through our continued efforts with our employee business networks, diversity education, and our outreach in diversity communities.The value of mission statement for the EmployeesMission statements hold an important and inspiring value to the employees. Likewise McDonalds mission statements work as a guideline for the employees so that they do their best to achieve the desired mission of the McDonalds.The value of mission statement for the customersour customers are the reason for our existence. This is what the McDonalds mission statement defines. When the customers get to know the companys attitude towards the community and customers is really appreciable and when they are sure about the products and services that they are going t o avail will be beyond their expectations and meet their needs, so the customers will definitely return to the business. And this will ultimately give a rise to the business.The value of mission statement for the suppliersAccording to the McDonald, its business model is depicted by the three-legged stool of owner, suppliers and the company employees. So this indicates that Suppliers of the McDonald are of great importance for the organization and therefore the mission statements states their importance as well. The mission statement will guide its suppliers that they should always supply and deliver the best they have and maintaining the quality. It will also strengthen the relation among suppliers and the McDonalds.REFERENCEShttp//www.aboutmcdonalds.com/etc/medialib/aboutMcDonalds/corporate_governance/standards_of_business.Par.44618.File.dat/9497_SBC_layout_McD_Eng-India%20101909.pdf http//www.corporateregister.com/a10723/mcglob08-csr-us.pdf http//jayzy2009.blogspot.com/2009/07/cha pter-13-stakeholders.html