• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

I am asked to assess how McDonalds could improve their operations ethically.

Extracts from this document...

Introduction

Task 1b) I am asked to assess how McDonald's could improve their operations ethically. [P2] Definitions: Stakeholder: A stakeholder is an individual or a group affected by or has an effect on, the business. It can include internal stakeholders such as employees and managers and external stakeholders such as shareholders, banks, customers, suppliers, competitors. Impact on the business and stakeholders of the way the business operates A business is a separate entity from its owners that is made up of an interlinked system where the way the system is run and operated affects all the external areas as well as external stakeholders that are part of this system. The way McDonalds operate has a direct impact on the business itself and its stakeholders as they are influenced by the business's performance, position, reputation and size. As far as the business is concerned, unethical behaviour would have implications on the business such as lack of revenue, bad image, deterioration of reputation and profitability, whereas good ethical behaviour would help McDonalds expand and grow profitably while improving on its existing reputation. The stakeholders would flourish if the business's performance is positive in an ethical manner. ...read more.

Middle

McDonalds must meet these requirements in order to be an ethically friendly business. Conflicts of interest between stakeholder groups It is vital for McDonalds to identify its stakeholders. All the stakeholders have different sometimes conflicting interests and priorities. The business must try as far as possible to take into account these various stakeholder interests whenever a decision needs to be made. Within McDonalds, conflicts of interest can take place at all times. One example of such conflict of interest is that McDonalds' shareholders want good dividends which require high profits. This interest collides with the company workers who want high wages which increases costs and lower profit. Shareholder's interest of higher profits also collides with suppliers who want higher profits which increase the cost of sales and thus lower the profit. The managers of McDonalds always want to reduce the costs; however, customers want good quality products which mean higher costs of raw material and therefore higher expenses for the business. Such conflicts of interest could be overcome if McDonalds compromise and take on a balanced approach to meet everyone's interests. McDonalds' aims and objectives could also have a possible conflict with certain stakeholders' interests. ...read more.

Conclusion

b) Suppliers have business concerns such as the availability of regular orders and prompt payments for credit sales. McDonalds would meet the requirements of the suppliers if they behave ethically. c) The local community is interested in the impact the business has on the value of their houses or their quality of life. The quality of life can be anything from the amount of traffic, or parked cars in the area, to any factory emissions. McDonalds would avoid any anything that may affect the local community negatively. This would only happen if McDonalds behave ethically. Drawbacks to the business on the way in which it is operating McDonalds as a multinational company is always under the spotlights and is under pressure from pressure groups. If the organisation would not meet ethical behaviour; it could have serious consequences for the overall success and reputation of the business. A few drawbacks for McDonalds of not operating ethically; could be loss of customers and therefore lower profits. The company's reputation and brand image could also be deteriorated if they are accused of any wrong doing. The impact on the business and stakeholders of the way the business operates I have used the following websites and book to do my assignment. 4. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Structures, Objectives & External Influences section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Structures, Objectives & External Influences essays

  1. McDonalds ethical issues

    40 in the stores. McDonald's has also made many false advertisements about its products and how they are classed as healthy, nutritious food. Recently, A California non-profit organisation filed a lawsuit against McDonalds for false advertising regarding its announcement they would implement a change to new cooking oil with 48%

  2. Introduction to Business Assignment

    you would be able to operate with costs 20% lower than that of your nearest rival'8 What this means that if GE lighting dominate the lighting industry, they can produce on a larger scale than that of their rivals. It is also of the essence that GE lighting remain in

  1. The Business Environment Coursework. Describe the type of business, purpose and ownership of ...

    This meant that when people started to take an interest in how their food was sourced, M&S would risk losing a lot of custom if they did not make changes to the way they run their business and their aims and objectives.

  2. For my portfolio, I was asked to do an assignment on two businesses. I ...

    stores and Tesco has several stores around the country where they hold bulk supplies and then they deliver individually to their stores Tesco also locates near to their competitors to maintain their competitions and make people to compare their product with their rivals.

  1. Oxfam stakeholder

    if Oxfam cannot provide the poor with these things, then instead of trying to help them it will be killing them. The receivers have a huge influence as they are the main reason why started. Without them, there would be no people to help; this meaning no need of Oxfam.

  2. Explain the implications for the business and stakeholders of a business operating ethically.

    H&M would need satisfied customers and suppliers which would come and do business with the firm. Decisions made in H&M could affect their competitors so they would need to make relationships with them. The increased purchasing costs also included other buying related costs connected to H&Ms long-term initiatives aimed at building an even stronger H&M.

  1. Investigating Business. Tesco PLC. I will be describing the aims and objectives of ...

    Tesco uses this format because only 20% of its customers have access to a Tesco Extra store, and the company is restricted to how many of its superstores can be converted into Extra stores and how quickly it can be done.

  2. Comparison of stakeholders interest and influence. Apple vs. Mercedes Benz

    This means Apple can be more realistic and driven towards achieving their goals while also clarifying to employees so they better understand how much is expected from them for specific goals to be reached. Measurable: By setting measurable goals Apple allows for aims and even short-term objectives to be met, so that they don?t fall behind schedule.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work