D1 - Impacts of changes in the economic environment on Mcdonald's
Many things change over year and the government is always making new laws and
changing new laws so changes are always likely in the country. However this may
not always have a positive impact on Mcdonald's as some certain changes may
affect Mcdonald's in many different ways.
Government Decisions
Government decisions are decisions made by the government who run the country
and all of their decisions must be followed and heeded as it is the law. Government
decisions affect Mcdonald's as some may impact them positively or negatively. On
the 8th June 2017, Theresa May has called for a UK general election in which a new
party like Labour might win. This will impact Mcdonald's as the new party may
change the laws and impose new laws which may affect Mcdonald's.
For example, the new party may impose new laws
in the tax laws where corporate tax may be
increased, this will impact Mcdonald's negatively as
this will be a increase of cost for Mcdonald's in
which they will lose out on their profit. Also the
government may change its decisions on existing
laws such as the labour laws in which it may
impose a new decision to benefit workers when
they are ill.
A new decision of allowing workers to take days off when ill and still be paid without
a requirement of a doctors may be imposed. This will impact Mcdonald's negatively
as workers might be ill but not ill enough to take days off and not to their work, but
workers will now have a choice to not come in even if they are fit enough to work as
it will be a new decision by the government.
This means that Mcdonald's might have to increase the hours of the employees they
have already working for them or they might have to hire temporary staff which they
will have to pay training for and and spend time by showing them what their
responsibilities are etc. Also new employees are more likely to make mistakes as
they are new staff therefore it will impact Mcdonald's negatively. Another
Government decision that will impact Mcdonald's in is the minimum wage increase
on the 25+ year olds.
This is bad because Mcdonald's has many employees working for them and an
increase in minimum wage means that they will have to take out more money from
their pocket which means they will lose out on their profit margin. Now Mcdonald's
would have to do something and they will lose out on loads of profit because they
have many 25+ aged staff in their restaurants therefore they might respond by
raising the price on their products to cover most of the cost in which they will have to
give to their employees.
, However this may be negative to Mcdonald's as if they were to raise the prices on
their products that may change their customers behaviour and the customers may
find it hard to afford their products therefore they might go to another restaurant as
they might feel that they get more of a value for their money at other restaurants than
Mcdonald's.
On another note an increase in minimum wage will be impact Mcdonald's positively
as their staff is more likely to carry on working there as they an increase in wages for
them will impact them positively so they are more likely to carry on working and not
find another job. This is good for Mcdonald's as they won't have to find new staff to
cover for the people who have left the job because it will cost them more because
they have to pay for their training.
Government Policies
Government policies have impacted greatly on businesses such as Mcdonald's
Policies such as the transport/social policy impact Mcdonald's loads. Government
policies help impact the changes in the economic environment by enforcing laws and
regulations to make sure everyone is safe including all businesses. The
environmental policy also impacts the changes in the environment as the policy
helps reduce pollution, waste and carbon emissions.
To make sure Mcdonald's are following the policy, they make sure their packaging is
recyclable and try to do less harm to the environment possible. By doing this,
Mcdonald's is impacted positively as they have responded to the policy by raising
awareness and making their packaging reusable and recyclable, this will show the
world and their customers that they care about the environment and are a part of
making sure it is harmed less.
(http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/questions/environment
al-impact/environment-policy/what-is-your-environment-policy-in-the-uk.html)
Last year a decision was made from the government that England was to leave the
European Union (BREXIT). This is now being put into place as England is on the
way to departure from it. When England leaves the EU the laws are going to change
even laws on employment. A number of new laws have been introduced to protect
workers. Workers have been given the right to refuse to work more than 48 hours a
week and redundancy pay has been increased.
(http://www.personneltoday.com/hr/april-2017-nine-key-employment-law-changes/)
This will impact Mcdonald's negatively because Mcdonald's is the largest fast food
restaurant who serves thousands of people a day therefore the workload in
Mcdonald's is always high. Now that workers have been given the right to refuse
working means that Mcdonald's may have to employ more staff as the workers might
want to just work 48 hours a week and no more. This therefore means that
Mcdonald's will have to respond by spending more money paying new employees
and on top of that they will have to pay for their training. There will be new laws
therefore new rules, regulations and policies will have to be followed.
Many things change over year and the government is always making new laws and
changing new laws so changes are always likely in the country. However this may
not always have a positive impact on Mcdonald's as some certain changes may
affect Mcdonald's in many different ways.
Government Decisions
Government decisions are decisions made by the government who run the country
and all of their decisions must be followed and heeded as it is the law. Government
decisions affect Mcdonald's as some may impact them positively or negatively. On
the 8th June 2017, Theresa May has called for a UK general election in which a new
party like Labour might win. This will impact Mcdonald's as the new party may
change the laws and impose new laws which may affect Mcdonald's.
For example, the new party may impose new laws
in the tax laws where corporate tax may be
increased, this will impact Mcdonald's negatively as
this will be a increase of cost for Mcdonald's in
which they will lose out on their profit. Also the
government may change its decisions on existing
laws such as the labour laws in which it may
impose a new decision to benefit workers when
they are ill.
A new decision of allowing workers to take days off when ill and still be paid without
a requirement of a doctors may be imposed. This will impact Mcdonald's negatively
as workers might be ill but not ill enough to take days off and not to their work, but
workers will now have a choice to not come in even if they are fit enough to work as
it will be a new decision by the government.
This means that Mcdonald's might have to increase the hours of the employees they
have already working for them or they might have to hire temporary staff which they
will have to pay training for and and spend time by showing them what their
responsibilities are etc. Also new employees are more likely to make mistakes as
they are new staff therefore it will impact Mcdonald's negatively. Another
Government decision that will impact Mcdonald's in is the minimum wage increase
on the 25+ year olds.
This is bad because Mcdonald's has many employees working for them and an
increase in minimum wage means that they will have to take out more money from
their pocket which means they will lose out on their profit margin. Now Mcdonald's
would have to do something and they will lose out on loads of profit because they
have many 25+ aged staff in their restaurants therefore they might respond by
raising the price on their products to cover most of the cost in which they will have to
give to their employees.
, However this may be negative to Mcdonald's as if they were to raise the prices on
their products that may change their customers behaviour and the customers may
find it hard to afford their products therefore they might go to another restaurant as
they might feel that they get more of a value for their money at other restaurants than
Mcdonald's.
On another note an increase in minimum wage will be impact Mcdonald's positively
as their staff is more likely to carry on working there as they an increase in wages for
them will impact them positively so they are more likely to carry on working and not
find another job. This is good for Mcdonald's as they won't have to find new staff to
cover for the people who have left the job because it will cost them more because
they have to pay for their training.
Government Policies
Government policies have impacted greatly on businesses such as Mcdonald's
Policies such as the transport/social policy impact Mcdonald's loads. Government
policies help impact the changes in the economic environment by enforcing laws and
regulations to make sure everyone is safe including all businesses. The
environmental policy also impacts the changes in the environment as the policy
helps reduce pollution, waste and carbon emissions.
To make sure Mcdonald's are following the policy, they make sure their packaging is
recyclable and try to do less harm to the environment possible. By doing this,
Mcdonald's is impacted positively as they have responded to the policy by raising
awareness and making their packaging reusable and recyclable, this will show the
world and their customers that they care about the environment and are a part of
making sure it is harmed less.
(http://www.mcdonalds.co.uk/ukhome/whatmakesmcdonalds/questions/environment
al-impact/environment-policy/what-is-your-environment-policy-in-the-uk.html)
Last year a decision was made from the government that England was to leave the
European Union (BREXIT). This is now being put into place as England is on the
way to departure from it. When England leaves the EU the laws are going to change
even laws on employment. A number of new laws have been introduced to protect
workers. Workers have been given the right to refuse to work more than 48 hours a
week and redundancy pay has been increased.
(http://www.personneltoday.com/hr/april-2017-nine-key-employment-law-changes/)
This will impact Mcdonald's negatively because Mcdonald's is the largest fast food
restaurant who serves thousands of people a day therefore the workload in
Mcdonald's is always high. Now that workers have been given the right to refuse
working means that Mcdonald's may have to employ more staff as the workers might
want to just work 48 hours a week and no more. This therefore means that
Mcdonald's will have to respond by spending more money paying new employees
and on top of that they will have to pay for their training. There will be new laws
therefore new rules, regulations and policies will have to be followed.
