How Business Works - McDonalds.

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How Business Works

Introduction

I am doing my business project on McDonalds because it’s one of the largest businesses in the world.

McDonalds is based in the United States Of America (USA)

McDonalds first started in when 1965 with the company's first offering on the stock exchange. A hundred shares of stock costing $2,250 dollars that day would have multiplied into 74,360 shares today, worth over $1.8 million on December 31, 2003.

1954

 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San Bernardino, California.

1963

 One billion hamburgers sold.

 the 500th restaurant opened.

 the 500th student graduates from Hamburger University.

 Ronald McDonald made his debut.

 McDonald’s net income exceeded $1 million.

1972

 Assets exceeded $500 million and sales surpassed $1 billion.

1975

 The Company’s first Drive-Thru opened in Sierra Vista, Arizona.

1976

 McDonald’s first UK TV advertisement was broadcast.

It’s now got more than 30,000 restaurants in over 119 countries. It’s so profitable that its share value is going up.

McDonald's spends over $2 billion a year broadcasting their image to the world.

Aims, Objectives & Activities

All businesses have aims and objectives three of the most common aims & objectives are:

  • Too Make Profit
  • Become the leading competitor
  • To expand & grow

 and they also have activities that they carry out including McDonalds,

 For example some of McDonalds’s aims are to:

  • Sell high quality fast food and to provide a high standard of service.
  • To make an overall profit

Some of McDonald’s objectives are to:

  • To make 10% more profit than last year.
  • To have a larger market share than Burger King
  • Increasing the size of their customer base

Businesses all have activities; this is what the business does. Example McDonalds:

  • Sales of Fast Food Items

To do this they need to first get the food from a supplier. Then they will need to cook it. This is done by kitchen staff and cooking equipment like grills and fryers. Then the kitchen staff; wrap the burgers up and pass the products to different staff for them to sell. Selling good quality food will make customers come back for more so therefore McDonalds will meet their objectives.

The Departments within a business

Human Resources

The human Resource department is responsible for staff (Personal), hygiene and safety. By making sure that McDonalds is kept clean and that nothing is a hazard to anyone, also making sure that the right staff are assigned for the right roles. The department provides the business with motivated staff and provides customers with a clean restaurant.

The Human Resource department supports the business by training and motivating staff, and if the business did not have the department then the business would have untrained and de-motivated staff!

The Human Resources department is related to some of the aims and objectives this includes:

  • Sell high quality fast food- which the safety management is for to check that the food is of high quality.
  • To provide a high standard of service- by making sure there is good motivated staff.

                 

Marketing

The Marketing Department is responsible for marketing sales. The department uses surveys and questionnaires to find out what customers think about McDonalds, which then helps McDonalds think about what to improve for the future. It also handles sponsorship deals.

McDonalds uses sponsorship to make money and it also to promote food products.

The marketing department supports the business by finding out what customers think about McDonalds and also supports them by making profit from sponsorship. Without the marketing department the business wouldn’t know what to change and wouldn’t make as much profit.

Sales marketing department relates to some of the aims and objectives of McDonalds for example

  • To have a larger market share than Burger King


Finance

The Finance department is responsible for new product development and responsible for the businesses profits and losses. The department does this to make more profit and track the businesses Finance.

The Finance department supports the business by looking after the businesses finance and deals with new product development, and without the finance department McDonalds wouldn’t have any new product development and would profits from sales.

The Finance department relates to some of the aims and objectives of McDonalds:

  • To make 10% more profit than last year
  • To make an overall profit

Administration

The Administration department is responsible for ensuring that the daily operations of the business work efficiently. The function is carried out so that the business can run smoothly without any problems. The Administration department offers the business support and that all other departments complete there overall aims and objectives.

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The administration department relates to all of the aims and objectives because they make sure that they are completed.


Job Roles within a business    

Board Of Directors= The board is responsible for planning this includes identifying goals, objectives, methods, resources needed to carry out methods, responsibilities and dates for completion of tasks. The board of directors also are responsible for leading the business this includes setting the direction for the organization, groups and individuals and also influence people to follow that direction e.g. the directors at McDonalds might decide to expand ...

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