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Classify the business according to its ownership - McDonalds

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Introduction

Classify the business according to its ownership (Sole trader, PLC, Franchise, etc) The business I have decided to choose for this assignment is McDonald's. McDonald's ownership is a franchise. McDonald is a large business with more than 30,000 restaurants in over 100 countries, serving more than 38 million people each day. * Overseas comparisons indicate that franchising is the fastest growing form of retailing and McDonald has grown quickly by granting franchises. The term franchising has been used to describe many different forms of business relationships. This form of business ownership was first introduced in the U.K. It is a form of business organisation that is becoming increasingly popular in the United Kingdom. * A franchise is an agreement between two parties. An entrepreneur (franchisor) and franchisee. The franchise agreement grants to the franchisee the right and authorisation to operate a specific McDonald's restaurant, at a single address. The franchise term is usually for a period of 20 years. These franchise rights include the use of McDonald's trademarks, restaurant d�cor designs, signage and equipment layout, the formula and specifications for menu items, use of McDonald's method of operation, inventory control, book-keeping, accounting and marketing. * A separate franchise lease covers the right to occupy the restaurant premises. In returns, the franchisee agrees to operate the business in accordance with McDonald's standards of quality service, cleanliness food safety and restaurant safety. The franchisee is expected to take a 'hands on' role in operating the business, and to be involved in local civic and charitable activities. * Throughout the franchise term, the franchisee's sole business interest should be McDonald's. Franchising is really the 'hiring out' or licensing of the use of 'good ideas' to other companies. A franchise grants permission to sell a product and trade under a certain name in a particular area. For example if I have a good idea, I can sell you a licence to trade and carry out a business using my idea in your area. ...read more.

Middle

There are advantages and disadvantages with every functional areas but each functional area helps McDonald's in one way or another to meet its objectives. Task Four: There are three types of management style and they are: * Democratic * Autocratic * Consultative Management style will describe the different ways that the managers treat their employees and also the way the in charge of the employees. Democratic management style: This type of style involves empowerment. Individuals and team are given responsibility to make decisions, usually with a given frame. The team is then responsible for the decisions that it makes. A manager with this style will feel comfortable allowing others t make decisions. Autocratic management style: This style is where manager gives out instructions, telling people what to do rather than asking employees. The manager is the only person who contributes to decision making. Consultative management style: Consultative mangers are ones who seek to consult other to implement decisions. This type of style wants to draw on more sources of opinion than just her or himself. The purpose of management style is to remember where we started. Business exists to satisfy demand for particular goods and services and in order to do this they need resources; the factor of production. Being the fast food company McDonald's exists to provide catering service to the community. Management is concerned with planning, controlling and co-ordinating the acquisition and use of these resources. In large concerns like McDonald's, managers run the business by using people and information. The term 'managing' comes from the Latin word for hand, as does the word 'manual'. It originally meant 'handling' things' but did not originally apply to people. McDonald's Management is responsible for the preparation, integrity and fair presentation of the consolidated financial statements and financial comments. The financial statement has been audited by independent auditors, Ernst & Young LLP, who was given unrestricted access to all financial records and related data. The audit report of Ernst & Young LLP is presented herein. ...read more.

Conclusion

In the company mission statement different policies are allocated such as health and safety, food hygiene, manual handling, customer service, litter control, recycling and environmental policy for example McDonald's is a member of the environment council, the corporate responsibility group of Earth watch Europe, the industry council for packaging and the environment (INCPEN), and greeting the high street, a group of retailers who have come together to develop recycling in the high street. Another example is that McDonald's takes a sensitive approach to its built environment, working closely with planning and conservation officers to preserve buildings of architectural merit and to improve the townscape. In many towns, McDonald's has invested considerable sums in restoring old buildings, often putting back architectural details that have been lost. York, Chester and Stratford-upon-Avon are prime examples. McDonald's has supported the tidy Britain Group's annual 'National clean' activities. Since 1988 and support its campaign 'just Bin it'. In addition to corporate funding, restaurant throughout the UK organise and support activities to clean up their local environment in conjunction with local youth groups. o McDonald's is one of the country's leading sponsors of council litterbins. o All packaging carries the Tidy Britain Group's 'Tidy Man' symbol. o Many McDonald's restaurant organise litter-related competitions with local schools and youth groups. o McDonald's was a founding sponsor of 'Going of Green', a nationwide awareness campaign for sustainable growth. In 1997 at the TIDY Britain Group's Queen Mother's birthday Awards for environmental improvement, McDonald's received the top award, the Queen Mother's Birthday Trophy. o 100% recycled used for happy meal boxes, take away bags, take away trays, napkins, kitchen rolls and toilets. o All McDonald's tray liners are made from 100% fully recyclable and biodegradable materials. o All McDonald's suppliers have to use minimum recycled content of 50% in their corrugated containers. o All McDonald's offices recycle waste paper and also use recycled paper. o The majority of McDonald's restaurants recycle their cardboard and used cooking oil. ...read more.

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