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Business Environment - the Case Study - McDonald

Essay by   •  May 25, 2012  •  Case Study  •  3,725 Words (15 Pages)  •  2,011 Views

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The case study report is based on McDonalds, its mission statement, stakeholder value and sustainable measures taken while running the business. This report will reveal the organizations business principles, values practiced, corporate goals and the importance of having a cordial business environment. Readers will explore the nature of stakeholders associated with the organization and their classification into internal, connected or external. The second part of the report reveals the kind of corporate social responsibility practiced within the organization and forms a major part of the report where the initiatives taken by McDonald's to create a sustainable line of operations is clearly detailed out. The report then blends the importance of a good corporate image with the measures the management takes to depict a social image of the organization. Justification is provided in favor of good corporate image created by the organization and understandings of what factors lead to the outcome are mentioned. The last section analyzes the value of the mission statement to its stakeholders and its importance and influence towards the organization.


Q1. List some stakeholders management of McDonald's is responsible to and classify them as internal, connected and external types.

Stakeholders are basically a part of the organization. They are linked with the enterprise as they have a stake in it. Stakeholders can be an individual or a group as they are interested in the enterprise and that is the reason why they have stake in the enterprise. However, these stakeholders come up with an interest in the outcome of organization's objectives. There are three types of stakeholder in an organization and they are;

* Internal Stakeholders ( employees, management )

* Connected Stakeholders ( shareholders, customers, suppliers, financers )

* External Stakeholders ( the community, government, pressure groups )

Internal Stakeholder such as management and employees are directly linked with the company, so their main objective is how to run the company. It is also their concern to help the company for its growth and to run successfully. The management and employees get paid for their job as they put their maximum effort and time for the organization and its growth. Employees and management play very important role as they work continuously, whereas the shareholders can withdraw their role and money at anytime and make use of it for them. For example, the decision-making of the management vs shareholder differ in the reinvestment opportunities. The management would prefer to re-invest their returns in the same organization or in a different project but in the same organization. Whereas, shareholders can have an option to either invest on the organization or withdraw the incentive anytime. In an organization employee's play a very important role, as said above that they help in the growth of the organization.

It is also important that, in an organization employees should have a good team work as it leads to good customer service and product. Employees play very crucial role in business as they are the way to success and they are the one who takes all the responsibilities for the product/services provided to customers. As mentioned above the importance of an employee, it is must to motivate them. If employees are motivated it will benefit more in productivity, provide the best product/service to the customer, and will be also dedicated to the organizations missions and aims. This aspect can help in improvising their innovative ideas, and to achieve their aims and objectives, and also helps in team building. To motivate the employees, there has to be a good motivational speaker who can build up positive visualization. There are many ways to motivate such as; poems, charts, quotes, team work, and so on.

Connected Stakeholders are those groups who are related with the marketing organization frequently, and they also play important role in succeeding the marketer. In addition, they are the one who invests in the business for new projects to bring out their innovative ideas in order to increase the amount of income. But they can also withdraw their investment whenever they want to, as they are not permanently committed to the organization. There are several connected stakeholder such as; Shareholders, Bankers, customers and suppliers. Few examples of connected stakeholders are Shareholders, Bankers, Customers, and suppliers.

Shareholders main aim is to gain profit and returns from their investment. They are an individual who legally owns few shares of a company (Public or Private Corporation). As stated earlier that connected stakeholder are related with the organization, so whatever the investment or shares are purchased, it automatically becomes organization's shares too.

Bankers also become a part of an organization as they get involved in business by giving loans and the security of the loan giving. Their main concern is to get their interests back from the organizations that they have provided the loan. This way they become a part of a corporation.

Customers play very important role in an organization, as they are the one whom a corporation would target. Customers' expects to get the best products and services from an organization. If they are not satisfied eventually it will



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