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This report will look at McDonalds as an international business, but also focus on the workings of an individual restaurant and the experience of the manager through a visit to the McDonalds restaurant in Chirk, North Wales.

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Unit 1 - Business at Work McDonalds Case Study Benjamin Black - DH This report is being produced to cover the syllabus for unit one: business at work for AVCE Business. This report will look at McDonalds as an international business, but also focus on the workings of an individual restaurant and the experience of the manager through a visit to the McDonalds restaurant in Chirk, North Wales. Contents * Section One: Business Ownership * Section Two: Business Objectives * Section Three: Functional Areas * Section Four: Management Styles and Cultures * Section Five: Communication * Section Six: Production Process and Quality * Conclusion * Bibliography Unit 1: Business at Work Section One: Ownership McDonalds Restaurants Ltd is a wholly owned subsidiary of McDonalds Corporation and while the company is not listed on the UK Stock Exchange, their accounts are held at Companies House. McDonald's Corporation is listed on the New York Stock Exchange where it is part of the Dow Jones Industrial Average. McDonalds is operated globally, but with each country having its own market. McDonald's has two types of ownership; franchising and company. A company ownership is where the company is in control of the restaurant. They get in management to hire the staff, design the layout and equip the place. They would take care of all the day to day running and also manage the accounts. All the profits would go back into the company with the managers being paid a wage. This does mean that the start up cost of the restaurant will be more because they wouldn't be any investment by others. The advantages of this are: * They have more control over how the restaurant is managed from day to day. * In the long term the company will receive more profits, after the initial start up costs, because they wouldn't have to give up any of the profits to a franchiser. ...read more.


It is very common to see a company change their culture as the environment changes. There are four different environments, which could affect the company. These are economic, social, technological and ethical. If a business fails to change to the correct culture for the current environment they could fail. There are four different organisational structures. These are: * Tall. A business with many layers, from the top manger all the way to the workers on the ground. * Flat. A business where all the workers are equal, they are all important. * Matrix. A business structure grouping together workers from different areas for a specific project. In this structure, people with specialised knowledge and skills are put into project teams. This means that team leaders can choose the right people for a particular project, and allows employees in lower positions to participate. Every individual is responsible for his or her own work, and the line manager is the person responsible for the current project. * Hierarchical. A system in which grades of authority are ranked one above the other. Any business structure, tall or flat in which there is a clear path from top management to lowest position in the firm. A centralised structure is one in which a top manager makes all the decisions and has total control over the way in which the operational plans are carried out. We can say, therefore, that a centralised system does not allow for delegation. There are some advantages of such a system. Senior managers are more likely to take an overall view of the business and its needs, whereas their subordinates might be concerned only with their own part of the company. Effective leadership is what makes businesses successful, different styles suit different circumstances and the same manager can use different styles with different groups of workers. Managers can be task or people orientated and this orientation will dictate their approach to control, job design and motivation. ...read more.


These employees also work with suppliers to maintain and develop product quality and to ensure that restaurants consistently serve hot, fresh food. Independent food safety auditors are also used. An alternative quality control of somebody standing at the end counter testing the food being served. If it tasted okay, and the person didn't feel ill afterwards then it that restaurant would have passed the test. Although this would be much simpler and cost less to administrate there are some serious flaws in this type of approach. Firstly the person would start to feel ill a few hours after they have eaten the food, by then the customers would have been served and gone home. Secondly they wouldn't know where in the food production line the error occurred. Conclusion McDonalds started off as one of the first fast food restaurants and today it is a corporate giant with over 30,000 restaurants in 122 countries. It is truly a global company. It has gone from success to success surviving several crises. It has become popular because of its food, service and quality control to ensure that the food tastes the same wherever you are in the world. McDonalds uses it's knowledge of business to create a successful and efficient company. With the use of ICT it can communicate quickly with all it's restaurants and promote an exchange of ideas and the use of different cultures and management help achieve results in all parts of the business. But the 21st century might not be as profitably as the last one due to a change in customer tastes. There is an increasing amount of competition from other fast food outlets offering healthier products. People are starting to demand more diverse tastes such as Indian, Chinese and Mexican food. A slow down in the popularity of fast food restaurants and more people becoming aware of healthy eating could indicate a slow down in growth and profits for McDonalds. For McDonalds to stay the world leader it will have to keep expanding, researching and changing to fit the need of the customer. ...read more.

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