European and Global factors
This report will now move on to task 2 about the European and global factors. This
report will be based on the implications of the European and global factors on
Mcdonald’s.
European
The UK is part of the European Union (EU) and this was formed to make peace
between amongst all nations. France and Germany came up with a plan to ensure
their two countries would never go to war against each other again and therefore
formed a deal. Currently there are 28 countries in the EU including UK, France,
Spain and Portugal. It EU is responsible for maintaining peace within the countries
and making trade between the countries easy and safe.
The EU have set up common institutions to which they delegate some of their
sovereignty so that decisions on specific matters of joint interest can be made
democratically at the European level. The EU make sure there are rules put in place
for specific matters which the countries have to follow upon and maintain. This is
good for mcdonald's as it makes it easy for them to trade and operate.
The EU use the euro exchange rate and this is to make trade more easy and simple
between all the countries. The EU has made sure economy wise, that they ensure
the GDP is high and the unemployment levels are low. In 2015 the unemployment
percentage was 9.4 however that has been brought down to 8.3% which shows that
the EU is performing well and making positive changes which is good for Mcdonald's
as they need unemployment levels to be low so they can increase their sales and
profit.
(https://ec.europa.eu/info/business-economy-euro/economic-performance-and-
forecasts/economic-performance-eu_en)
The EU’s aim for their economy to grow is through 3 growth strategies which are
smart, sustainable, and inclusive. As the EU grows, countries can be able to trade as
much goods as they want with each other which will benefit EU businesses. As the
EU grows, countries within the EU do not have to pay any customs of trade. This
impact on Curry’s because they will have more staff which will increase business
activity. Another impact is that Mcdonald’s will have more customers which will
increase demand & sales.
Performance of European Union
As the EU has 28 countries this will increase the advantages of their performance in
their economies. The more people in the European Union, the more their economic
performance will improve. Most of those 28 countries use the same currency which
is the Euro which benefits them when they import and export trade. If they have the
same currency, exchange fluctuations will not happen. Many of those countries will
send as much trade as they want which will benefit businesses in the EU.
Mcdonald’s will benefit from the EU because they can export goods in countries in
, the EU very easily. Also more money will come into the UK which will increase the
GDP which is good as Mcdonald's customers will have high disposable income
which will then go on to increase the demand and sales of Mcdonald's. In the EU the
euro is shared amongst most of the countries.
Having the same currency helps reduce customs and trade barriers tariffs and
quotas. If European countries have the same currency then exchange fluctuations
won’t happen. Advantages of the Euro are that imports and exports are cheaper,
cheaper raw materials, and cheaper goods/ services. With the Euro, interest rates
are low and the European Union can control inflation costs. The Euro can benefit the
UK and Mcdonald’s by increasing its price differentials which will benefit the UK and
Mcdonald's customers. This will affect Mcdonald’s as it will increase the demand and
sales.
Brexit
Brexit is a term used for the UK withdrawal from the EU. In June 2016, a majority
voted to pull out from the EU. At the moment, UK is still a part of the EU, however it
will soon be out of the EU but is likely to still be in a single market. When the majority
of the UK voted to pull out back in June 2016, the pound dropped very low in value
and this affected Mcdonald's as the £ was not worth much which means more money
was being spent. It is more likely when UK pulls out of the EU completely that the
british pound will drop once again in value. This will hugely affect Mcdonald's
because people will not have enough money which means Mcdonald's demand,
sales and profit will go down.
Also Mcdonald's will have to find a cheap supplier as they will be paying more for the
ingredients but will be getting less than what its worth as the value of the pound will
not be much. New laws and regulations are likely to be introduced when the UK
leaves the EU. This could affect Mcdonald's negatively if new laws such as zero hour
contracts and more labour laws are introduced. Mcdonald's would have to put in
place the new changes and adjust to them. To make some changes, Mcdonald's
may have to pay which means that the changes could be cost effective which is not
good because Mcdonald's will be losing out on their profit.
(http://www.independent.co.uk/news/uk/politics/after-brexit-1000-new-laws-will-be-
passed-with-no-parliamentary-scrutiny-a7656981.html)
European Policies
This is the European law relating to the exchange of goods and services involved
with international trade. It also involves taxes, subsidies and import/export
regulations. The european policy aims are to crease a fair trade and open up
markets with key countries. These policies are put in place to make sure everyone
abides by the rules and maintains peace. 5 of the policies that are included in the
european policies are:
This report will now move on to task 2 about the European and global factors. This
report will be based on the implications of the European and global factors on
Mcdonald’s.
European
The UK is part of the European Union (EU) and this was formed to make peace
between amongst all nations. France and Germany came up with a plan to ensure
their two countries would never go to war against each other again and therefore
formed a deal. Currently there are 28 countries in the EU including UK, France,
Spain and Portugal. It EU is responsible for maintaining peace within the countries
and making trade between the countries easy and safe.
The EU have set up common institutions to which they delegate some of their
sovereignty so that decisions on specific matters of joint interest can be made
democratically at the European level. The EU make sure there are rules put in place
for specific matters which the countries have to follow upon and maintain. This is
good for mcdonald's as it makes it easy for them to trade and operate.
The EU use the euro exchange rate and this is to make trade more easy and simple
between all the countries. The EU has made sure economy wise, that they ensure
the GDP is high and the unemployment levels are low. In 2015 the unemployment
percentage was 9.4 however that has been brought down to 8.3% which shows that
the EU is performing well and making positive changes which is good for Mcdonald's
as they need unemployment levels to be low so they can increase their sales and
profit.
(https://ec.europa.eu/info/business-economy-euro/economic-performance-and-
forecasts/economic-performance-eu_en)
The EU’s aim for their economy to grow is through 3 growth strategies which are
smart, sustainable, and inclusive. As the EU grows, countries can be able to trade as
much goods as they want with each other which will benefit EU businesses. As the
EU grows, countries within the EU do not have to pay any customs of trade. This
impact on Curry’s because they will have more staff which will increase business
activity. Another impact is that Mcdonald’s will have more customers which will
increase demand & sales.
Performance of European Union
As the EU has 28 countries this will increase the advantages of their performance in
their economies. The more people in the European Union, the more their economic
performance will improve. Most of those 28 countries use the same currency which
is the Euro which benefits them when they import and export trade. If they have the
same currency, exchange fluctuations will not happen. Many of those countries will
send as much trade as they want which will benefit businesses in the EU.
Mcdonald’s will benefit from the EU because they can export goods in countries in
, the EU very easily. Also more money will come into the UK which will increase the
GDP which is good as Mcdonald's customers will have high disposable income
which will then go on to increase the demand and sales of Mcdonald's. In the EU the
euro is shared amongst most of the countries.
Having the same currency helps reduce customs and trade barriers tariffs and
quotas. If European countries have the same currency then exchange fluctuations
won’t happen. Advantages of the Euro are that imports and exports are cheaper,
cheaper raw materials, and cheaper goods/ services. With the Euro, interest rates
are low and the European Union can control inflation costs. The Euro can benefit the
UK and Mcdonald’s by increasing its price differentials which will benefit the UK and
Mcdonald's customers. This will affect Mcdonald’s as it will increase the demand and
sales.
Brexit
Brexit is a term used for the UK withdrawal from the EU. In June 2016, a majority
voted to pull out from the EU. At the moment, UK is still a part of the EU, however it
will soon be out of the EU but is likely to still be in a single market. When the majority
of the UK voted to pull out back in June 2016, the pound dropped very low in value
and this affected Mcdonald's as the £ was not worth much which means more money
was being spent. It is more likely when UK pulls out of the EU completely that the
british pound will drop once again in value. This will hugely affect Mcdonald's
because people will not have enough money which means Mcdonald's demand,
sales and profit will go down.
Also Mcdonald's will have to find a cheap supplier as they will be paying more for the
ingredients but will be getting less than what its worth as the value of the pound will
not be much. New laws and regulations are likely to be introduced when the UK
leaves the EU. This could affect Mcdonald's negatively if new laws such as zero hour
contracts and more labour laws are introduced. Mcdonald's would have to put in
place the new changes and adjust to them. To make some changes, Mcdonald's
may have to pay which means that the changes could be cost effective which is not
good because Mcdonald's will be losing out on their profit.
(http://www.independent.co.uk/news/uk/politics/after-brexit-1000-new-laws-will-be-
passed-with-no-parliamentary-scrutiny-a7656981.html)
European Policies
This is the European law relating to the exchange of goods and services involved
with international trade. It also involves taxes, subsidies and import/export
regulations. The european policy aims are to crease a fair trade and open up
markets with key countries. These policies are put in place to make sure everyone
abides by the rules and maintains peace. 5 of the policies that are included in the
european policies are:
