ASSIGNMENT 1 : P3, P4, M1, D1. "Business Strategy and Organisation"
Role of the Main Functional Areas:-
Brand - This department is responsible for the Mcdonalds brand. They will create and develop the McDonalds brand through their a Marketing Strategy, this requires market research, product development, communication of the marketing campaign and support for the sales team.
CFO - the Chief Finance Officers Department is accountable for the administrative, financial and risk management operations of the company. This includes development of a financial and risk management strategy, control systems designed to preserve the companies assets and production of financial accounts.
Human Resources - The main role of the Human Resources Department is to look after all issues related to employees and this includes all recruitment of staff. Issues related to health and safety, ensuring McDonalds complies with legislation for employees at work, Employee relations including liaison with unions, compensation and benefit, setting salary policies and ensuring salaries are competitive and training and development.
Legal - The main role of the Legal Department is to provide legal advice for any issues relating to McDonalds, the legal department will handle legal contracts, leasing agreements, property purchases, issues with franchisees etc and ensure Mc Donalds is not operating outside the law in any area or country. They will also produce report on changing legislation etc.
Restaurants - This department takes responsibility for the network of restaurants operating in the chain. They will ensure that they have a good coverage and will look for new properties. Within each restaurant they will ensure that it is operating efficiently, staffed, achieving the maximum sales revenue, complying with policies on health and safety, cleanness and following corporate guidelines .
Operations - The Operations Department attends to the administration duties necessary for the day to day running of McDonanlds such as purchasing office supplies, telephone and utilities contracts, covering rents rates and insurance. It may do this in bulk for all the restaurants and head office to bulk buy and save money.
Supply chain and Franchisees - This department will deal with suppliers and ensure that they are complying with the agreements they have made with Mc Donalds, it will be responsible for maintaining good relations with suppliers. Many McDonalds restaurants are not owned by the company but owned and run by franchisees who are responsible for complying with agreed terms set by McDonalds. This department will be responsible for maintaining good relations and ensuring franchisee agreements are upheld.
COO - The Chief Operating Officer's department is responsible for the daily running of the company
Brand - This department is responsible for the Mcdonalds brand. They will create and develop the McDonalds brand through their a Marketing Strategy, this requires market research, product development, communication of the marketing campaign and support for the sales team.
CFO - the Chief Finance Officers Department is accountable for the administrative, financial and risk management operations of the company. This includes development of a financial and risk management strategy, control systems designed to preserve the companies assets and production of financial accounts.
Human Resources - The main role of the Human Resources Department is to look after all issues related to employees and this includes all recruitment of staff. Issues related to health and safety, ensuring McDonalds complies with legislation for employees at work, Employee relations including liaison with unions, compensation and benefit, setting salary policies and ensuring salaries are competitive and training and development.
Legal - The main role of the Legal Department is to provide legal advice for any issues relating to McDonalds, the legal department will handle legal contracts, leasing agreements, property purchases, issues with franchisees etc and ensure Mc Donalds is not operating outside the law in any area or country. They will also produce report on changing legislation etc.
Restaurants - This department takes responsibility for the network of restaurants operating in the chain. They will ensure that they have a good coverage and will look for new properties. Within each restaurant they will ensure that it is operating efficiently, staffed, achieving the maximum sales revenue, complying with policies on health and safety, cleanness and following corporate guidelines .
Operations - The Operations Department attends to the administration duties necessary for the day to day running of McDonanlds such as purchasing office supplies, telephone and utilities contracts, covering rents rates and insurance. It may do this in bulk for all the restaurants and head office to bulk buy and save money.
Supply chain and Franchisees - This department will deal with suppliers and ensure that they are complying with the agreements they have made with Mc Donalds, it will be responsible for maintaining good relations with suppliers. Many McDonalds restaurants are not owned by the company but owned and run by franchisees who are responsible for complying with agreed terms set by McDonalds. This department will be responsible for maintaining good relations and ensuring franchisee agreements are upheld.
COO - The Chief Operating Officer's department is responsible for the daily running of the company
MCDONALDS
Aim: McDonald's brand mission is be be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the plan to win, which center on an exceptional customer experience - people, products, place, price and promotion. We are committed to continuously improving our operations and enhancing our customers' experience. How the organisation chart works for McDonalds McDonald's is a large multinational organization, with different departments, for example Brand, CFO, Human Resources etc these reporting into the CEO who is head of the company. The departments take responsibility for themselves and also other departments who report into them for example Social Media Department reports into Brand Department. This type of organization chart is called Hierarchical chart. What is McDonald's Vision? McDonald's Vision: McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. One of the departments in the organisation is restaurant, the vision statement puts emphasis on the staff to create the vision for the company, therefore they are repsonsible for providing this in their costumer service and ensuring that the companies vision is upholding. Target for Human Resources: S - Introduce a new marketing campaign to increase sales for McDonalds M- Total sales for all stores will increase A - Total sales will increase by 10% R - !0% is a realistic increase in sales, sales may increase further. T - The campaign will run for 12 weeks. |
HKDR
Aim: Rescuing, rehabilitating and re-homing unwanted or abandoned dogs and puppies. How the organisation chart work for HKDR HKDR is a much smaller local business charity with a small number of employees therefore the business has a simple organization chart, there are 3 departments volunteers, recruitment and project Co-ordinators that all report back into the founder. Functional Areas of a HKDR Founder: This is the person who realized there was a problem with stray dogs in Hong Kong, as healthy dogs were being destroyed by the government and she decided to do something about it to save the lives of these dogs and find them homes. She runs and manages the charity. She has 3 departments in her charity, that report into her. The founder is responsible for the day to day smooth running of the charity and she is helped by the other people who work for the charity. her main responsibility is to ensure donations cover the day to day running costs, finding accommodation, house keeping such as bill paying, property maintenance, ensuring there are supplies and that stray dogs are cared for fedand homes. As it is a small operation she is able to be involved in all areas of the charity eg marketing, recruitment PR etc. Volunteers: This department will take care for the volunteers in the organisation. These are unpaid staff who visit the center to help care for the dogs. The department must ensure that there are volunteer to cover all shifts, these people are looked after and that HKDR are using volunteers legally eg health and safety. Recruitment: These are people who are responsible for recruiting volunteers,they will create a recruitment pocity and follow this guideline, cover necessary admin related and training etc. Project Co-ordinators: This department is responsible for fund raising. They will plan several events a year to raise funds and the funds will be the income which allows the charity to run. For example, HK DR have an annual walkathon event called the PEAK to FONG. The public pay an entry fee to join and this is a donation to the charity. The coordinators are responsible for planning this is a well organised and fun event to participate in, this will assist in raising maximum funds. They also do other administrative tasks. Target Marketing in HKDR: S - Introduce a new marketing campaign to increase brand awareness and continue to make the HKDR charity a household name in Hong KOng M- increase total donations A - Donations will increase by 5% R - a small target for increase has been set as it will be difficult to increase donations, this is a competitive area as there has been many recent disasters such as the Napal Earthquake that people will automatically think of donating to. T - The campaign will run for 12 weeks. |
How does the type of business influence the aims and objectives P4
Different stakeholders and groups have different objectives, as each group tries to
achieve their objective this can cause conflict. McDonalds will have to juggle the interests of the many groups who have a stake in their organisation so that each group is able to achieve their objective. For example Shareholders require high profits so they may be reluctant to pay their employee high wages as this will reduce their profitability and in turn share prices and dividends. Suppliers will want to charge maximum prices as this will increase their profitability, this will mean that a higher price may need to be charged for the products and customers may not be happy to pay this.
Employees can influence an organization and its success by their productivity and efficiency in a job and this includes the tasks and duties they do everyday. This is a 2 way relationship as both parties, employees and organization have something to offer. McDonalds have a policy on motivation and use the theory of Taylor to motivate their employees. Employees are paid on a piece basis and and rewarded for good productivity. If they are not happy with their job, pay or condition they can resort to industrial action in the form of a strike, work to rule or ban on overtime. By treating employees as a value asset and promoting a good working environment, companies can have a positive influence on their employees. McDonalds employees are key for achieving the goals of the company so therefore they are treated with respect and motivated so goals are achieved.
Suppliers can be very influential as they can decide to raise the price which will effect the firms profitability. Suppliers can effect the efficiency of a business if they don't deliver the products on time, McDonald's may sell out of some of their menu items and this results in lost sales and disappointed costumers. The organization supplier relationship can very sensitive and they must work to respect and trust each other. McDonalds do not want to get into a situation where suppliers change their payment terms without warning as this can effect cash flow and profitability. McDonald's can provide their suppliers with a steady income but as they are a large customer suppliers can become dependent on them, McDonald’s can demand prices and terms which are unacceptable and this can force a supplier to go into liquidation. In July 2014 McDonalds were the centre of a scandal in China caused by suppliers as they were found to be mixing out of date meat supplies in their products, this had an adverse effect and in August 2014 The South China Morning Post reported McDonalds revenues were down as a direct result. The supplier had tried to save money by using out of date products, Mc Donalds must ensure that their suppler do not abuse their position of trust in the relationship as this has an adverse effect on the McDonalds brand, corporate image and sales.
Customers can influence McDonalds by deciding whether to eat there or not, they can choose to eat somewhere else for many reasons including bad costumer experience or even bad press, for example the incident in China, this was very bad for relations with customers and many customers decided not to eat at Mc Donalds as they could not trust the products. McDonalds as a result had a very hard task to win customers back and repair damage to their brands and image. It is very important for McDonald's to satisfy their customers as this means they will will be loyal and this improves their business and profit overtime. If a customer has a bad experience at Mcdonald's this information can be spread fast via social media and will give the company a bad reputation and other customers may decide not to eat there.
Governments can influence McDonald's by introducing new laws which effect their operation, such as changes in the minimum wage or they can raise cooperation tax, which will effect the firms profit. They can also introduce other laws related to social responsibility such as food and hygiene laws, which tighten controls and in turn effect profitability. Governments are also responsible for local planning and this effects the design of restaurants, for example The Daily Mail, a UK Newspaper reported on Sedona, Arizona as it has the only turquoise sign after city planners refuses them to have a yellow as they said it was to garish. McDonalds must comply with laws which will affect their business, these laws will be different in each country and may even vary from region to region within countries. However, laws are there to protect McDonalds and their customers.
A trade unions is a group which is responsible for ensuring employees are treated fairly and can put pressure on McDonald's to provide improved working conditions and salaries. Unions have advantages and disadvantages for McDonalds, they are there to ensure that staff are looked after fairly but the disadvantage is that they can be demanding and require terms and conditions which McDonalds are unable to give if they are to remain profitable. For Example in October 2001 the Daily Telegraph reported that McDonalds was being ageist and paying new employees aged 18-21 years a lower salary than older new employees, this was taken up by the trade unions and they fought to get equal pay for all employees at the same level.
The local community can influence McDonald's by protesting against a building or a planning permission for new developments. They can also protest about certain products if they are unhappy with their production or how they are sourced and this can result in bad public relations which can reduce sales. McDonalds needs the community as it is their customers, they need to work hard to build good public relations within the community, they can do this by contributing positively to the community for example becoming involved in local charities or needs of the community. For Example McDonalds supports their own charity Ronald McDonald House, they focus on caring for sick children and their families in the community.
Sources: BBCbitesize, smallbusiness.chron, Daily Mail
http://www.scmp.com/business/companies/article/1589202/mcdonalds-augustsales-
hit-china-meat-scandal
http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/
taylors-motivational-theory.html#axzz3ZMYRa8tE
http://www.telegraph.co.uk/news/1360159/Big-Mac-firm-fried-by-trade-unions.html
http://www.dailymail.co.uk/news/article-2739701/McDonald-s-forced-openturquoise-
achieve their objective this can cause conflict. McDonalds will have to juggle the interests of the many groups who have a stake in their organisation so that each group is able to achieve their objective. For example Shareholders require high profits so they may be reluctant to pay their employee high wages as this will reduce their profitability and in turn share prices and dividends. Suppliers will want to charge maximum prices as this will increase their profitability, this will mean that a higher price may need to be charged for the products and customers may not be happy to pay this.
Employees can influence an organization and its success by their productivity and efficiency in a job and this includes the tasks and duties they do everyday. This is a 2 way relationship as both parties, employees and organization have something to offer. McDonalds have a policy on motivation and use the theory of Taylor to motivate their employees. Employees are paid on a piece basis and and rewarded for good productivity. If they are not happy with their job, pay or condition they can resort to industrial action in the form of a strike, work to rule or ban on overtime. By treating employees as a value asset and promoting a good working environment, companies can have a positive influence on their employees. McDonalds employees are key for achieving the goals of the company so therefore they are treated with respect and motivated so goals are achieved.
Suppliers can be very influential as they can decide to raise the price which will effect the firms profitability. Suppliers can effect the efficiency of a business if they don't deliver the products on time, McDonald's may sell out of some of their menu items and this results in lost sales and disappointed costumers. The organization supplier relationship can very sensitive and they must work to respect and trust each other. McDonalds do not want to get into a situation where suppliers change their payment terms without warning as this can effect cash flow and profitability. McDonald's can provide their suppliers with a steady income but as they are a large customer suppliers can become dependent on them, McDonald’s can demand prices and terms which are unacceptable and this can force a supplier to go into liquidation. In July 2014 McDonalds were the centre of a scandal in China caused by suppliers as they were found to be mixing out of date meat supplies in their products, this had an adverse effect and in August 2014 The South China Morning Post reported McDonalds revenues were down as a direct result. The supplier had tried to save money by using out of date products, Mc Donalds must ensure that their suppler do not abuse their position of trust in the relationship as this has an adverse effect on the McDonalds brand, corporate image and sales.
Customers can influence McDonalds by deciding whether to eat there or not, they can choose to eat somewhere else for many reasons including bad costumer experience or even bad press, for example the incident in China, this was very bad for relations with customers and many customers decided not to eat at Mc Donalds as they could not trust the products. McDonalds as a result had a very hard task to win customers back and repair damage to their brands and image. It is very important for McDonald's to satisfy their customers as this means they will will be loyal and this improves their business and profit overtime. If a customer has a bad experience at Mcdonald's this information can be spread fast via social media and will give the company a bad reputation and other customers may decide not to eat there.
Governments can influence McDonald's by introducing new laws which effect their operation, such as changes in the minimum wage or they can raise cooperation tax, which will effect the firms profit. They can also introduce other laws related to social responsibility such as food and hygiene laws, which tighten controls and in turn effect profitability. Governments are also responsible for local planning and this effects the design of restaurants, for example The Daily Mail, a UK Newspaper reported on Sedona, Arizona as it has the only turquoise sign after city planners refuses them to have a yellow as they said it was to garish. McDonalds must comply with laws which will affect their business, these laws will be different in each country and may even vary from region to region within countries. However, laws are there to protect McDonalds and their customers.
A trade unions is a group which is responsible for ensuring employees are treated fairly and can put pressure on McDonald's to provide improved working conditions and salaries. Unions have advantages and disadvantages for McDonalds, they are there to ensure that staff are looked after fairly but the disadvantage is that they can be demanding and require terms and conditions which McDonalds are unable to give if they are to remain profitable. For Example in October 2001 the Daily Telegraph reported that McDonalds was being ageist and paying new employees aged 18-21 years a lower salary than older new employees, this was taken up by the trade unions and they fought to get equal pay for all employees at the same level.
The local community can influence McDonald's by protesting against a building or a planning permission for new developments. They can also protest about certain products if they are unhappy with their production or how they are sourced and this can result in bad public relations which can reduce sales. McDonalds needs the community as it is their customers, they need to work hard to build good public relations within the community, they can do this by contributing positively to the community for example becoming involved in local charities or needs of the community. For Example McDonalds supports their own charity Ronald McDonald House, they focus on caring for sick children and their families in the community.
Sources: BBCbitesize, smallbusiness.chron, Daily Mail
http://www.scmp.com/business/companies/article/1589202/mcdonalds-augustsales-
hit-china-meat-scandal
http://businesscasestudies.co.uk/tesco/motivational-theory-in-practice-at-tesco/
taylors-motivational-theory.html#axzz3ZMYRa8tE
http://www.telegraph.co.uk/news/1360159/Big-Mac-firm-fried-by-trade-unions.html
http://www.dailymail.co.uk/news/article-2739701/McDonald-s-forced-openturquoise-