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Summary Unit 1 - The Business Environment

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business environment

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Amir Iqbal (633699)

Unit1: the business environment

P6- describe how political, legal and social factors are impacting upon the business activities of the
selected organisations and their stakeholder

In this investigation I am going to be focussing on how two economic environments influence and
impact McDonalds. I am going to discuss how political, legal and social factors impact the business
McDonalds business activity and its stakeholders.

POLITICAL:

availability of transport and internet- UK

The availability of transport and the access to internet is very valuable to McDonalds in the uk as
there is an easy access to the internet and a wide range of transport available with McDonalds
employers, McDonalds use different methods of transport for different products and most products
get delivered separately, McDonalds try to reduce their carbon footprint by using local couriers so it
makes it easy for them to transport fresh goods to their branches everyday safely and more quickly.
McDonalds drivers use the internet to communicate with the McDonalds branches managers via
internet to alert them when products will be delivered making the managers aware of when
products will arrive. The availability of transport also helps McDonalds provide products to its
branches without having any regular problems this keeps customers not waiting and keeps sales and
profits at a stable rate. McDonalds employees can then receive the products and start distribution.
McDonalds also use the internet for the promotion of products and do this through various types of
social media to help achieve brand awareness and product promotion this helps McDonalds bring in
more customers and let customers know what offers are available and what savings they can gain.
The internet is also used for the recruitment of staff in McDonalds as online applications are how
McDonalds gather employees and recruit them into their branches the applications are available to
the public through the internet which is easily accessible and can lead to quick recruitment of staff in
times of needs for McDonalds. The availability and transport of products impact stakeholders such
as customers as if there is a constant supply of products it keeps their needs satisfied. Other
stakeholders such as employees are affected by the availability of transport as they need products to
keep the business running and for distribution.

Availability of transport and internet- India

In India there is also a wide range of transport available as India has one of the busiest and largest
road networks in the world so transport wouldn’t be a huge problem for them but regardless of how
efficient transport is in the McDonalds branches in India most products of the brand are locally
sourced as they are unique to Indian culture. so the transport of good are minimalized as the needs
for transportation of products are low and do not require much transport. This impacts the
stakeholders such as the employees of McDonald’s like courier services as the workload is less for
them they won’t have much business therefore their wages will be low. In India the access to
internet is limited in smaller towns and cities this poses problems for McDonalds such as recruitment
problems as there is a low use of internet so applicants will have to go through formal interviews or
written applications which is time consuming and expensive for McDonalds. McDonalds use posters
and boards to promote their products in areas where internet accessibility is low. This negatively
impacts stakeholders such as customers and the public as they are unaware of job opportunities and
products within McDonalds due to the lack of promotion in certain areas and the lack of internet.

, Availability of education, training and research- UK

In the uk education is a primary for almost all citizens it is a compulsory part of being a resident in
the uk and is a legal requirement for everyone to be in education until the age of 18. The availability
of education leads to the gain of valuable skills that can be applied to life outside of education such
as the working environment this is beneficial to businesses such as McDonalds as they can employ
qualified people that understand basics, another advantage is that because almost everyone has an
education finding a person with skills for the job is easy and doesn’t cost time or expense. The
availability of education positively impacts stakeholders such as employees, customers and the
communities involved with McDonalds as the customers are served by people who are helpful to
them and their needs are met, communities are helped as people can take jobs within McDonalds
and earn a living this helps people to keep off the streets and it also helps employees as they
understand what needs to be done within the job and can be of useful help to McDonalds and
customers by applying the skills they have learnt through education in the workforce. The training
programs can further help take McDonalds employees a to the next level giving them everything
they need to have problem-free shifts, training is given to both existing and new customers within
McDonalds this helps keep McDonalds employees up to date with new rules and regulations within
the business whilst also keeping customers safe and happy. The availability of research is also useful
as it helps McDonalds find out what customers and employees need and want this helps them to
excel in their business as through research they can keep bringing in new products and taking out
products that are disliked. The research done by McDonalds isn’t subject to just products but is also
used for new promotion ideas and for brand awareness and also the design of products.

Availability of education, training and research- India

The availability of education in India is limited as it isn’t a priority, education is given to most people
but at a low standard and it doesn’t cover a variety of different skills. Some people don’t go to school
or gain an education because instead they do household chores or farming to help their parents.
This impacts McDonalds negatively as recruiting a qualified work force might be difficult in some
parts of India. McDonalds need qualified workers to help them excel in their business as some of the
tasks in McDonalds require training and education which cannot be given to some uneducated
people and it will take up lots of time and money. The types of training in India given to the
employees of McDonalds differs to the type of training uk McDonalds branches receive as in India
the preferences are different people don’t like the same things as those in the uk and are used to
doing things in a different way so McDonalds needs to take on an approach that is understood by
Indian employees for them to understand the tasks needed to be done for an Indian population
therefore It is necessary for McDonalds to have a skilled workforce that is familiar with Indian
culture. The promotion of products in India also requires lots of research as Indian customers are
different to uk customers and are attracted by different things so the design of products needs to be
suitable for the specific audience it is targeting this requires extensive research by McDonalds. The
availability of education research and training impacts the stakeholders of McDonalds in India
slightly negatively as there is such a big difference in education and training in the uk and India
McDonalds in India will have lower profits and will find it harder to find valuable skills this impacts
stakeholders like customers and investors who may find their investments in McDonalds to be a loss.




LEGAL

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