D2
In this assignment, I will be evaluating how future changes in economic, political, legal and
social factors may impact on the strategy of a specified organisation, and the organisation I
will be talking about is McDonald’s. I will be also talking about, the main factors and
examples on how the business might be affected.
McDonald’s is the world’s largest restaurant chain with more than 34,000 restaurants
worldwide and employing 1.8million people. Now it serves 68 million customers daily over
119 countries worldwide. In the UK, there are 1,200 restaurants which serve approximately
three million people every day. Also, in the UK, they employ 97,000 people and invest over
£40million on training and development every year.
Aims and objective of McDonalds:
The main aim and objective is for McDonalds is to provide good quality products to all their
customers. This is so they ensure that the customers that eat from there make it their
favourite place to eat and drink from. Also, McDonald's strives to continually improve the
customer experience. Not only that McDonalds offers jobs to many people, McDonald’s aims
is to strive and to help employees reach full potential.
Political
What future changes in Political factors may impact a business strategy of my chosen
organisation which is McDonalds.
Political can affect McDonalds in several ways. This is as; it could add a risk factor and lead to
a major loss. You should understand that the political factors have the power to change
results. Some of these political factors are:
VAT- VAT is, value Added Tax is the tax imposed for sales of goods in the UK. If VAT
increases, then it affects business like McDonalds. This is because; items/products they sell
will be much more expensive. In 2011, the tax was increased from 17.5% to 20%, meaning
that items would become more expensive unless reduced by the supplier or vendor, and
spending could hit a low: when interest rates change, the cost of loans and mortgages rise,
and disposable income is reduced, meaning that spending would be reduced in the country.
However, the advantage of VAT is that, VAT is simple to administer as compared to other
indirect tax. Also, another advantage of VAT tax for business could be that, it can be more
effective at raising revenue than personal and corporate income taxes in some situations.
VAT influenced McDonalds as, food prices on their menu have raised. Such as the Tea and
coffee and burgers. For example of this is, their Big Mac. McDonalds Big Mac has risen by
4.4% due to VAT increase. Before the VAT increase, big mac use to be £2.39. After the VAT
increase, the burger is now £2.49.
In addition, Brexit will have an impact on business such as McDonalds and other large
business as, it will effect on exporting goods from Europe. Therefore, this will lead to a loss
of sales/profit, jobs, investments. This will affect McDonalds as they export supplies from
some parts of the Europe’s such as their fresh fruit and veg (for example from Spain).
In my opinion I believe, no one likes the increasing of VAT as not only McDonalds get
affected by this all stores across the UK on their goods get effected. It leads the prices of the
In this assignment, I will be evaluating how future changes in economic, political, legal and
social factors may impact on the strategy of a specified organisation, and the organisation I
will be talking about is McDonald’s. I will be also talking about, the main factors and
examples on how the business might be affected.
McDonald’s is the world’s largest restaurant chain with more than 34,000 restaurants
worldwide and employing 1.8million people. Now it serves 68 million customers daily over
119 countries worldwide. In the UK, there are 1,200 restaurants which serve approximately
three million people every day. Also, in the UK, they employ 97,000 people and invest over
£40million on training and development every year.
Aims and objective of McDonalds:
The main aim and objective is for McDonalds is to provide good quality products to all their
customers. This is so they ensure that the customers that eat from there make it their
favourite place to eat and drink from. Also, McDonald's strives to continually improve the
customer experience. Not only that McDonalds offers jobs to many people, McDonald’s aims
is to strive and to help employees reach full potential.
Political
What future changes in Political factors may impact a business strategy of my chosen
organisation which is McDonalds.
Political can affect McDonalds in several ways. This is as; it could add a risk factor and lead to
a major loss. You should understand that the political factors have the power to change
results. Some of these political factors are:
VAT- VAT is, value Added Tax is the tax imposed for sales of goods in the UK. If VAT
increases, then it affects business like McDonalds. This is because; items/products they sell
will be much more expensive. In 2011, the tax was increased from 17.5% to 20%, meaning
that items would become more expensive unless reduced by the supplier or vendor, and
spending could hit a low: when interest rates change, the cost of loans and mortgages rise,
and disposable income is reduced, meaning that spending would be reduced in the country.
However, the advantage of VAT is that, VAT is simple to administer as compared to other
indirect tax. Also, another advantage of VAT tax for business could be that, it can be more
effective at raising revenue than personal and corporate income taxes in some situations.
VAT influenced McDonalds as, food prices on their menu have raised. Such as the Tea and
coffee and burgers. For example of this is, their Big Mac. McDonalds Big Mac has risen by
4.4% due to VAT increase. Before the VAT increase, big mac use to be £2.39. After the VAT
increase, the burger is now £2.49.
In addition, Brexit will have an impact on business such as McDonalds and other large
business as, it will effect on exporting goods from Europe. Therefore, this will lead to a loss
of sales/profit, jobs, investments. This will affect McDonalds as they export supplies from
some parts of the Europe’s such as their fresh fruit and veg (for example from Spain).
In my opinion I believe, no one likes the increasing of VAT as not only McDonalds get
affected by this all stores across the UK on their goods get effected. It leads the prices of the
