Classify the business according to its ownership †McDonalds Essay

The origin I pee-pee decided to choose for this assignment is McDonalds. McDonalds sufferership is a dealership. McDonald is a spectacular job concern with much than 30,000 eating houses in solely over b pocket-sized countries, serving more than(prenominal)(prenominal) than than 38 jillion people each day.* overseas comparisons indicate that franchising is the fastest growing smorgasbord of retailing and McDonald has adult rapidly by granting immwholeys. The status franchising has been used to describe near antithetic names of ances take heed relationships. This form of patronage ownership was first introduced in the U.K. It is a form of business composition that is decent increasingly popular in the irritate together Kingdom.* A franchise is an agreement between two parties. An entrepreneur (franchisor) and franchi trance. The franchise agreement grants to the franchisee the right and authorisation to course a specific McDonalds eatery, at a single name. The franchise term is usu each(prenominal)y for a period of 20 years. These franchise rights include the use of McDonalds shell come forwardmarks, eating place dcor designs, signage and equipment layout, the formula and specifications for menu items, use of McDonalds method of operation, descent control, book- deeming, accounting and commercializeing.* A separate franchise lease covers the right to hire the eating place premises. In returns, the franchisee agrees to operate the business in accordance with McDonalds standards of smell expediency, cleanliness provender gum elastic and eatery guard. The franchisee is expected to take a hands on role in operating the business, and to be have-to doe with in local anesthetic civic and charitable activities.* Throughout the franchise term, the franchisees sole business interest should be McDonalds. Franchising is really the hiring out or licensing of the use of ethical ideas to separate companies. A franchise grants per tutelage to merchandise a product and trade under a certain lay down in a exceptional argona. For subject if I have a good idea, I kitty sell you a licence to trade and carry out a business development my idea in your ara. McDonalds is a big warning of tick franchising. McDonalds has grown its business in the United Kingdom by franchising outlets.Explain the take ins and constraints of the showcase of ownership.In erect to succeed it is necessary to consider the benefits and constraints involvement in franchise. in that respect be actualise benefits to this* You dont have to dress up with a beautiful idea. approximately unitary else had it and tested too* Large, easily-established franchise operations bequeath often have national ad campaigns and a reputable, well established trading name.* unspoilt franchisors (BFA) provideing moodyer oecumenical training political programs in sales and indeed all business skills.* Good franchisor scum stand a s well service oneself secure funding for your investment as well as e.g. discounted bulk- bargain supplies for outlets when you atomic number 18 in operation.* If you be aw atomic number 18 that you are assortning a franchise clients will alike picture that you will be offering the manageable value for gold and religious service although you run your own show as a part of a more than macroscopicr organisation.Benefits for franchisor* Low capital expenditure franchising is an fine method of reach outing your business with a limit amount of ready capital. Franchisor takes a parcel of net income without taking essay. Low risk route to expansion.* Personal commitment and need from franchisees is majusculeer than from employees, the reason being that they have more accountability and duty than an ordinary employee.* Reduced daily involvement it is a method of obtaining scrupulous and dedicated mortalal who lay down hard to a safeguard their investment.Benefits for franchiseeSome of the advantages of franchising to the franchisee are that it presents them the opportunity of sharing some of the benefits of a large business much(prenominal) as* An established reputation* A known brand name and image* Skilled trouble* Large scale of measurement commonplaceize programmes which are usually salaried for by an advertising levy* Economies of scale, producing on a large scale is termed economies of scale. McDonalds does this by trying to stay fresh low embody with with(predicate) economies of scale. They try to select suppliers, which will give the smart put value for money.* Franchising likewise offer much of the independence of a sole proprietorIn this way a small business benefits from the economies of scaleThat comes from being part of a large smart right organisation.Constraints of franchising* Limits on product outlay they kittyt swop their product price up to wherever they want. They have limits for price.* Limits on pa stiche of product they croupt have variety of products. Customers get confused if theyll uphold variety of product they have to keep certain products.* Limits on freedom- they potfult do whatever they want. They have to follow owners operating instructions to run their business. Franchisees have not much freedom.* Limits on the title of their business- they asst even change the rubric of their title. As you nookie see they have same colour and title sort wherever their branches are. designate 2A Clear description and explanation of the designs of the business.The objectives of businesses can modify enormously. Companies may have a enumerate of objectives. In general, the objectives pursued by a business tend to vary according to its size, ownership and statutory structure. Small businesses are more likely to focus on natural selection as an objective as they tend to lack the financial re bugs to have it away with adverse trading conditions. Larger businesses may aim to exploit profits. As being one of the larger businesses McDonald has the following objectives* Profit maximisation* excerpt* Market luck* Growth* Providing exceptional customers care* Re main(prenominal)ing an in effect(p) and flavor producer offering utmost value to customers (according to comp eithers policy)Profit maximisationProfit maximisation is likely to be an big objective for most companies which shareholder including McDonalds owns. Profit refers to the extent to which grosss snuff it costs, so profit maximisation occurs when the difference between sales revenue and total costs is enormousest. Companies such as McDonalds seek to maximise profit to cover up their costs and to provide exalted returns for their shareholders. McDonalds does this by trying to keep cost low done economies of scale. They try to select suppliers which will give the telephoner value for money. In assemble to maximise sales they have various sales promotion end-to-end the year. The basis for their profit is low cost rather than postgraduate price. natural selectionSurvival is an pregnant objective for umpteen businesses. According to the business writer Peter Drucker It is the first duty of a business to survive. The guiding precept of business economics, in the other words, is not the maximisation of profits it is the dodging of loss. Business enterprise must produce the premium to cover the risk inevitably involved in its operation. And at that place is completely one blood line for this risk premium profits.most recently established businesses like McDonalds have survival as objectives. This is because often they have intense challenger in the merchandise so they have to spend heavily on their advertising to attract customers. They have to ensure that they remain the Market d knifelikeing card in their industry.GrowthGrowth occurs for the comp some(prenominal) when there is an ongoing take a leak up in an economys action of goods and serve. McD onalds pursues growth through exchange more franchises all over the world in hostel to have a presence in most countries in the world. They can achieve this by increasing the overall size of the business by merging or joining other firms of buying them out through a take-over. McDonalds recently went into a joint venture with prt a omnibus in order to enter another(prenominal) segment of the U.S merchandise and gain a commodiouser share of the commercialiseIncreasing sale or market shareGrowth occurs when there is an ongoing ragion in an economys production of goods and services. numerous businesses pursue growth strategies because their directors believe that this essential for survival. If the firm grows, it grows with more customers, enlighten higher profits and begin to establish itself in the market.Growth offers* change magnitude returns for the owners of the business* Competitive salaries ( and more job security ) for employees of the business* A wider run for of products for the business exists and potential customers it is increasingly common for mangers pay packages to successful managers can earn substantial incomes if that is reflected in the follows share price.Increasing market share is an classic objective for McDonalds. It is likely to be a key objective any business operating in a market which is not growing. For utilization, the market for traditional beers in the U.K is not growing indeed there are signs that it may be declining. As the market is not increasing the size, brewers of traditional ales can and increase sales by taking market share from competitors.Market share is also grave for McDonalds because that considerably from producing on a large scale. They use expensive equipment and the financial advantages of producing on a large scale are termed economies of scale. Where these economies exist, firm will attempt to take a greater share of the market. This allows them to sell their product at lower price, increasi ng their competitiveness. confinement ThreeEvery organisation will need to acquire, use and change factors of production in order to produce goods and provide services. McDonalds has some(prenominal) give wayal areas that exist in the business to booster the business affect its objectives and to provide goods and services as well. And each of which is reinforcered by a particular administrative spotlight. The administration of each map is found on its offices. on that point are many administrative offices each with a excessiser responsibility and function. The functional areas McDonalds has are as follow* pay* Production* Human resources* Marketing* Research and nonplusment*1) finance matterThe finance director George Mackay is responsible for finance incision. The main activities of finance function are* To keep record of all business transactions, keeping of cost and revenues and put downting target through budgeting.* To provide study intimately services.* To b urst pertly product that satisfy customers expectations.* fictitious character federal agency* supplement chain* Measure the financial performance of the business.* Increase market share so they can make profit and give money to their shareholders.* Control the finances and cash flow so the business waistband solvent, i.e. does go bankrupt.* Take timely decisions by comparing the predicted performance with true performance.This chart shows the structure of finance department.Finance DirectorFinance schooling servicesNew product studyQuality assuranceSupply chainAccording to McDonalds finance director accurate financial information allows them to achieve their most historic goals to increase profits by expanding, sustained growth and charitable objectives. McDonalds not only invests much of its profit in extending its own business but also tack together aside trillions of dollars each year to fund charitable activities. Not only this, McDonalds also provides different type of support to other organisations and schools.* McDonalds has invested grand sums in restoring old buildings, often putting back architectural detail that have been lost.* McDonalds supports the Ground wee-wee Trust, an environmental urban variety programme.* McDonalds is a major suspensor of international football.* McDonalds donates million of pounds towards community, educational and charity programme.* McDonalds also provides salary and benefits to its employees and reviewed on habitue basis.As for most of the time McDonalds made systematically high profits nearly $3,633 million and have grown successfully by qualification good profit and still readying to grow more further (according to the McDonalds book).2) Production FunctionThe function of the production department is to change inputs into outputs, which means produce goods and services are to be brought by the customers. McDonalds is committed to maintaining and developing the stovepipe regimen products in the warm service restaurant market. And this is what production department is responsible for. In order to deliver on this, the company has made commitments to viands safety, nutrient quality and to nutrition. Company systems and procedures must be continuously updated to ensure the highest standards of hygiene and safety. all round receives congruous training in food safety. McDonalds food is made from the basic commodities red and sportsmanlike meat, fish, eggs, milk, grain and vegetables. whole blunt ingredients are produced to exacting specifications and the highest possible standards and quality and safety.McDonalds highly skilful workers work with suppliers to maintain and develop product quality. McDonalds recognises the importance of a balanced diet, lifestyle and health therefore provides gamey, less fat and accented food to their customers. McDonalds invest a lot of money in unused applied science. Thus, modify the quality food preparation and helps achieving co mpanys aim of growth in the fast food market.* Controlling production methods and planning the scale of production* Controlling costs and running(a) expeditiously* Meeting the specific unavoidably of customersMcDonalds is working hard to develop their products and provide their customers a variety of differentiated products, which helps to fulfil another important objective satisfying customer needs because increasingly customers expect to buy the product that meet their exact needs. Developing efficient methods of production to wince cost is helps to make profit and growth because a fall in the cost of production resulting form an increase in the size of a business, which is called economy of scale in the language of business. When outputs rises, the cost of production per item-the unit cost-falls, and the business can reduce the price of its goods. With the lower price, it will get more customers and so benefit from the even lower unit costs. This will make it more competitive and can easily increase market share. McDonalds has raised standard through out the food process industry.3) Human resourcesHuman resources department deals with staff recruitment, training and development. Human resources is a very important function for the business because it selects the workforce (the right people for right job), provides training and development of staff, which modify their skills, performance and relates to the aim of McDonalds, which is the best service for its customers. Efficiency helps a business run more smoothly, effectively and profitability. Efficiency begins with developing ways of working that are easy to translate and do not waste time or energy. Division of labour, in which each workers carries out a specific job, increase speed and the more people you serve each day the more profit you make so it helps to maximize profit as well as expand the business. McDonalds have their employment policies. McDonalds employs some of the best, most wishfu l people on the job market. Whether they join as hourly paid staff or management trainees through graduate or a high standard recruitment, they have the opportunity to develop a career, which can take them to the very top.Above all, McDonalds values people with a positive attitude towards customers, themselves and other employees, and strive towards delivering the highest standards of quality, service and cleanliness. The ability to understand and adopt McDonalds customer-led enculturation is as worth as the more usual career entry requirements of GCSE and university degree.The company is an equal opportunity employer and 1992 set up an equal opportunities mathematical group to help foster a respective(a) workplace and highlight equal opportunities as an important part of the company s ethos. McDonalds commitment to equal opportunity extends beyond race, gender, hea soish origin, marital status, colour, nationality or disability, to compass people with very different backgrounds and experience.Whether university graduates and those without established qualifications, first jobbers or those who have worked for decades, what binds employees is the knowledge that the opportunities are as great as an psyches ambition and ability allow. And if employees are expert with the opportunities they are getting form the company they work hard for the company and try to provide best service in the world. It is important to hold on talented staff and staff who have become skilled through training. By recruiting quality staff who are committed to the business, thus decrease recruitment costs by not having to recruit too often. McDonalds also provide benefits with salary to its staff.Hourly paid staff benefits* allow meal allowance* Paid holidays (4 weeks per annum)* Free life assurance (value dependent upon service)* Private health care (for employees aged 19+with 3 years service)* Sponsorship Programme* Stock purchase scheme* Employees discount card* wait on award s (at 3, 5, 10, 15, 20 and 25 years service)* Stakeholder pensionApart from good place of pay, McDonalds try to provide good working conditions and incentives. This also helps McDonalds to meets its objective of expanding and providing best service to the community.4) MarketingAccording to the interrogation some McDonalds market is the whole process by which goods get from producers to buyers. more than people work in Marketing than in production. Marketing involves market research, distribution, pricing and promotion. As last week McDonalds was offering 2 normal fries, hamburger, drink for only 2 and that offer was only for limited period.Marketing department deals with advertising, promotion and improving the image of the product and services to attract more customers. The fast food industry is in which many companies compete for customers. McDonalds provide a part product, give better value for money, provide a superior service, better at distributing and selling its good and services and making them known through advertising and publicity. There is no doubt that McDonalds do a lot of advertising and promotion activities. One of them is mentioned above. Recently McDonalds announced that Kay Napier, Procter & Gamble marketing veteran, vice President/General manger, has been hired as a elder Vice President of marketing. McDonalds marketing director said, I am delighted to add this kind of marketing talent to our aggroup at McDonalds. This is another step in elevating one of the worlds great brands to an even higher take of marketing strength and value.This will also help them to achieve their objective, which is growth. Customer can be attracted through good eye-catching advertisement, advertisement has this tremendous ability to shift demand draw in to the right. As customer increase income rises which helps achieving companys aim of making profit so that they can cover their cost more easily. McDonalds also meets its objective which is satisfying customer need by lettered what customer want and how much they are willing to spend on their food. To achieve this objective marketing department employees special research team for the test products do surveys with customers to sample red-hot product and answer questionnaire about them. According to McDonalds policy McDonalds will not work with any supplier who does not adhere to the standards required by UK and EU legislation regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene. This policy helps McDonalds to meet its objective of Providing best food, beat competition and improve the company image.5) Research and developmentThe object of R & D is to enable business to compete successfully and achieve permanently sustainable competition over its competitors by becoming more efficient and/or profitable and giving customers added value.To achieve this McDonalds always and will cut across to develop new products that satisfy customers expectation s for great taste and great value. The companys new product and development team works with suppliers to expand the menu with new core and promotional food items. The team helps to ensure that all new food items meet McDonalds high quality and safety standards. As with the brisk product range, McDonalds solicits and carefully listens to customers view on any new or promotional products.* McDonalds offer more and more choices for breakfast by developing new products as more and more customers eat breakfast out rather than at home.* Changing existing productsMcDonalds uses conventional food chemicals or additives that add flavour and colour that helps to maintain freshness and make changing in existing products by listening to customers views.* Collecting data from worldwide researchMcDonalds has special research team to find out what customers want and how much they can spend.McDonalds also has restaurant development policy When McDonalds has local knowledge which is a key to choosi ng new locations, McDonalds on watchword with local managers who are closely involved at roots level with their local communities. By keeping customers convenience McDonalds develop new restaurants. Company is committed to responsible and works closely with local planning and community groups when developing new restaurants. Every bullet point and information is written there helps McDonalds to achieve its objective of providing good service to the community by attracting more customers and making profit.There are advantages and disadvantages with every(prenominal) functional areas but each functional area helps McDonalds in one way or another to meet its objectives. confinement quadrupleThere are three types of management style and they are* egalitarian* Autocratic* consultatoryManagement style will describe the different ways that the managers treat their employees and also the way the in charge of the employees. elective management styleThis type of style involves empowerment . Individuals and team are presumptuousness 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 pleasant allowing others t make decisions.Autocratic management styleThis 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 styleConsultative mangers are ones who seek to consult other to implement decisions. This type of style wants to draw on more sources of opinion than full her or himself.The purpose of management style is to re piece 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. be the fast food company McDonalds exists to provide catering service to the community. Management is concerned with planning, controlling and co-ordi nating the acquisition and use of these resources. In large concerns like McDonalds, managers run the business by development people and information. The term managing comes from the Latin word for hand, as does the word manual. It originally meant intervention issues but did not originally apply to people.McDonalds 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 nonsymbiotic auditors, Ernst & Young LLP, who was given unrestricted assenting to all financial records and related data. The audit report of Ernst & Young LLP is presented herein. The add-in of Directors, operating through its canvass Committee composed entirely of independent Directors, provides oversight to the financial reporting process. Ernst & Young LLP has unrestricted access to the Audit Committee and regularly meets with the Committee to discuss accounting, auditing and financial reporting matters.McDonalds has an coercive management style. A manger takes entire responsibility for decisions and, having set objectives and allocated tasks to employees, expect them to be carried out simply as specified. Employees are told exactly what, how and when work must be started and finished. It is the kind of management style associated with a corporate culture centred almost exclusively on production. Power is cerebrate at the top, and the centralised decision making is geared to getting the goods out of the company and to customers.The culture of a business can be astray affected by its attitudes, values and beliefs. There are different types of culture McDonalds is very close to customer driven culture by keeping this culture in its mind McDonalds works and as it is described before that McDonalds first priority is its customers. Attention is cerebrate on improving all aspects of the production process down to the legal proceeding detail for the cust omers benefits. Technological culture is focused as well. To improve its technology and develop new products they listen to its customers as well as to their staff. An autocratic style does have some advantages and advantages for McDonalds. discriminates are* Workers may want some flexibility, freedom, little contact workers therefore little teamwork, can be demotivating.* Disadvantage of having a hierarchic structure is that centres can get distorted or lost from one manager to the next.* There is also poor converse between the different functions.Advantages are* Need quick decisions, health and safety, constitute and consistent approach helps employees* Advantages of the hierarchical structure are that every one knows whom they are responsible to and whom they are responsible for.* This can also shows where specialists are needed in their divisional groupsThe organisation structure McDonalds has is hierarchical structure, which you can see on next page. The benefits McDonalds gets are well-defined management structure, clear lines of responsibility and control and functions are clear and distinct. Of demarcation where there are advantages there are disadvantages as well. The disadvantages McDonalds has are many layers of confabulation and many layers of authority and decision-making.The relationship between structure, management style and cultureStructure Management style CultureHierarchical, many levels Autocratic Based on routine proceduresof management, e.g. in and job roles, decisions arelarge business like McDonalds centralised.Being a huge company McDonalds has an Operations Director (Peter Sullivan),Development Director (Peter Richards), Finance Director (George Director), Marketing Director (Matthew Howe), HR & Training Director (Carmel Flatley) and chairwoman and chief executive director (Andrew Taylor) are the most important people in the company. Together with the other directors, they oversee the work of the companys volt vast department s Operational, technical, real estate, financial and marketing.There are also regional manager old supervisor and superior supervisor, restaurant manager and confederate manager. The board of directors have senior jobs in the company, overseeing different divisions. These are the executive directors. The board also includes non executive directors, who do not work for the company. They help the board make decisions and life after the interests of the shareholders.McDonalds also have training and careers or its employers. McDonalds employs local people in their own community. It is an equal opportunity employer, and women and people from ethnic minorities are represented at all levels.Young people accepted for a position on McDonalds career programme can quickly climb the promotional ladder. Trainee managers go through a serial publication of training courses at centres set up in their own community. They receive even more important on-the-job training at a McDonalds restaurant.Mc Donalds has an pass on door policy, which allows staff access to managers from the chairman down. Everyone is welcome to make suggestions or complaints. McDonalds also holds a frequent meetings called rap sessions where staff can voice their complaints to someone from headquarters or air grievances to a member of management from another restaurant.McDonalds now has a bureaucracy senior staff is not even treated with the awe they command in some companies. Even the chairman is approachable. The staff and the public have lax access to him through the companys open door policy.There is a McDonalds management structure on next page.Task 5A description of the use of ICT for interior and outside(a) discourses of the business.Businesses need to fleet with a range of individuals and other organisations including their customers, their suppliers, as well as their own employees. Every organisation will need to be able to communicate effectively with staff at all levels for it to functio n smoothly and efficiently. These are the reason why communication is important for a business or an organisation whether it is internal or external.The business I have chosen for this assignment is McDonalds. McDonalds also has internal and external communication to run its business effectively.McDonalds has an IT strategy. Information technology is important where it enables a business to achieve its goals. However cost is always important and evidence seems to show that IT is more expensive than firms realise. According to Management Consultants, support cost can be five times the amount estimated. This includes help from other staff and time spent on security and back-up procedures. another(prenominal) costs can include* Staff training* Introducing health and safety measures* The need to maintain efficient securityTwo recent trends in keeping down IT costs areDownsizing when we look at human resources management then downsizing means is lying off employees. However in IT it simp ly means using smaller systems, such as a mini-computer instead of a mainframe, or a PC instead of a mini. This is possible because hardware is becoming more powerful.The other recent trend is outsourcing.Outsourcing This again is a term used in human resources managementInternal and external communicationsInternal communication Internal communication is communication that takes place deep down the organisation. The three main ways of communicating information inside McDonalds are intranet, McNews and MDUK and graduate(prenominal) levels.Methods of keeping In touch with staff* IntranetLaunched in the year 2000, McDonalds UK intranet provides a fast and up-to-the-minute source of information for McDonalds restaurant management and office staff. It is a single point of reference administrative requirements, news and marketing materials.* McNEWS AND MDUKMcNews was the award-winning magazine published bi-monthly for all restaurant staff. In 2002, McNews was re-launched as MDUK a live ly people-focused magazine, it covers news, activities and events from restaurants around the country.* High levels publish bi-monthly for all management and office staff it is a showcase for best practice, recognising individuals outstanding practices and achievements, as well as set off internal and external awards.* An email system operates in all offices and company-owned restaurants.* continuous staff communication sessions are held in the offices.* Employee satisfaction surveys for both office and restaurant staff are held annually.This is how McDonalds communicate with its staff.The purpose of internal communication is to communicate with its internal customers,which are employees to run business effectively and smoothly. Provide them information they need time to time. out-of-door communication External communication takes place between the organisation and the outside world. McDonalds needs to communicate with a range of stakeholders including shareholders, customers, gov ernment, suppliers and the community.Communicating with suppliers and customers* Tele environThe most oftentimes used form of external verbal communication is telephone. McDonalds uses this form of external communication to contact with their suppliers. Apart from this McDonalds has answering autos to keep in touch with customers. Phone answering machines tape callers messages, which can be played back from a distance by calling the number and typing in a code.* Business letterMcDonalds has its address available on its every website for their customers and also to obtain your model of the pack you can contact them by sending a letter.* WebsiteMost companies have an internet website including McDonalds. McDonalds uses this for all external communications purposes and for public relations activities. I also used McDonalds website to do research for my assignment.* FaxFax is a form of external communication. Fax machine is used to transmit and receive suppliers to communicate.The pur pose of external communication is to communicate with its customers, suppliers and community. Provide them information about the business they want.BenefitsThe benefits of using internal communication are* The benefit of using intranet to business is that it provides a fast and up-to-minute source of information for McDonalds restaurant management and staff.* McNews magazine covers news, activities and events from restaurant around the country.* E-mail system is faster and efficient. Information and reports are confidential. The same message can be sent immediately to many people.* Employee surveys helps to get employee views.The benefits of using external communication are* Telephone is fast and its great benefit is that it allows people who would find it difficult to meet to converse. And a person who cant read or write can talk over the phone to get information.* The use of business letter saves time for the person whom you are writing to and you can explain in detail. Not everyo ne has access to internet so if somebody who needs information about the organisation can write a letter to them.* Fax does the same thing its transmitting speed is fast and saves time. Again if somebody need information about the organisation can contact them through fax if has no access to internet.* Website provides a lot of information about the organisation and in detail with pictures and graphs make easier for you to understand. It saves time of both who wants information and the one who is giving. For example if you asking the manager of McDonald about the company but he hasnt got enough time to give you information in detail so when you have time you can go on to McDonalds website and look for the information you need in detail.In order to achieve business objectives McDonalds has created communication channels which all allows the company to communicate effectively both internally and externally. Due to successful communication when looking at the McDonalds UK financial pro file form 1998 to 2001. One can all the way see a substation increase in profit during this period.By using effective communication McDonalds meets a range of organisational objectives which are of import for the business such ads being a market leader, no 1 fast food retailer in the world which is due to the excellent reputation built throughout the year by maintain powerful relationships with customers, adapting to new environment investing in new technologies and continuously up-grading systems and improving staff training. All this reflected in McDonalds ability to maximise sales profit and revenues.ICT has an enormous impact on McDonalds business internally and externally. E-mails replaced the old fashioned methods of communication such as letters and phone calls. The company has a very sophisticated network database which replaced the traditional systems of filing, storing information. Computers are used every where in the business to replace a range of standard operations such as maintaining stock levels, organising deliveries, preparing invoices and recording payments etceteraThe use of the internet website enables McDonalds to reach any place in the world and is a very latest link with the global market for example every body can obtain the information from the website in a matter of minutes. The global net exchange enables McDonalds through electronic data interchange (EDI) system to arrange financials transfer dramatically reducing time, paper work and costs.Poor communication results in mistakes, anxiety, low morale, inadequate control and aggression. Not surprisingly there is concern to improve the quality of communications. First this means improving the communication skills of people within the organisation. Second, it means developing systems of communication.We can identify the skills required by individuals aso Patienceo Discretiono Understandingo Assertiveness where necessary.A clear explanation of how the production process and quality assurance / control system employed by the business help it to add value to its product or service.McDonalds production is a very important process in McDonalds business activities and it involveso impacto Manufacturingo Assemblyo Craft-based productionprocessMost of the McDonalds products are created by processing which includes food and drinks. Processing involves treatment such as washing, cutting, salting, weighting, heating, grilling and frying etc. The raw materials such as meat, chicken, fish and vegetables etc are passed through a series of processes until the desire form product is produced for example chicken fillet is touch into chicken burgers, grilled and then assorted with salad cream.ManufacturingManufacturing involves making boxes, cups, sticks and different childrens toys which McDonalds has special facility to produce techniques include for example producing shaping toys from plastic granules called Polietilen which is put into a machine which is heated and und er insistency different shapes are made for toys. The same thing applies for the plastic cups for hot and soft drinks.AssemblyA typical manufacture operation for example putting together big Mac and French fries with a cup of soft drink in a paper bag to serve the so-called big meal for 4.99. Another example for an assembly is when staff is in the workshop assemble kids toys, which go together with the kids blessed meal.Craft-based productionCraft based production involves making individual products by hand for example a natal day cake for McDonalds birthday parties where the parent can invite a special shape and decoration for the childs birthday cake. So McDonalds takes individual offers for special cakes. Especially trained staff has the ability and skill to create imaginative and attractive design that suits the individual needs of customers. Craft production in McDonalds for example involves working with material such as icing, chocolate, cream, coco powder and baking powde r.Quality assuranceMcDonalds is committed to maintaining and developing the best food products in the quick service restaurant market.In order to deliver on this, the company has made a number of other commitments to food safety, food quality and nutrition.McDonalds first is always the health and safety of customers. The company believes that the food safety standards required by law are only a minimum and the company continually seeks to go beyond this. Because of this belief, McDonalds has developed a food safety policy to help keep the focus of the companys absolute commitment to food safety and quality. All raw materials delivered to McDonalds restaurant must be consistently produced to the highest standards of hygiene and safety. Company systems and procedures must be continuously updated to ensure the highest standards of food hygiene for all customers at all time. All staff receives proper supervision and training in food and safety. The equipment used must be the appropriate for the needs of each restaurant, and must be carefully hold and carefully calibrated.Following its launch in early 1998, McDonalds continues its programme of sponsoring research grants in food safety. The grants are particularly aimed at reenforcement the work of researchers in the early stage of their independent research careers, who are working in established UK-based departments and institutions. McDonalds is committed to serving hot, fresh, great tasting, great value food to all customers, every time that they prattle a restaurant.McDonalds food has made from the basic commodities red and white meat, fish, eggs, milk, grain and vegetables. All raw materials are produce to exacting specifications and the highest possible standards of quality and safety, The Company will not use any ingredients unless it is clear exactly where it has come from and that it compiles with all relevant regulations and McDonalds own high standards.Additives are only used to ensure that high quali ty standards are maintained. Additives are removed or replaced wherever possible, as long as this does not compromise food safety or quality. McDonalds has a highly trained team of quality assurance whose job includes substantiating the companys supply chain through audits and site visit. 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 re also used to assess their key suppliers partners.In 1984 McDonalds became the first UK restaurant company to publish detailed nutritional information on all core menu items.McDonalds highest priority is for the safety of its customers. The company will not any product or ingredient that does not meet their high standards of quality and safety, or has not received the necessary eulogy by the relevant UK authorities.McDonalds will not work with any supplier who does not adhere to the standard required by UK and EU leg islation regarding animal welfare, transportation, husbandry, inspection, and quality & hygiene.McDonalds always and will continue to develop new products that satisfy customers expectations for great taste and great value. roughly the country, thousands of people form a network of dedicated suppliers involved in the day-to-day operation of McDonalds business. The responsibility of serving more than 2.5 million customers each day makes quality a consistent goal. McDonalds work with leading suppliers across the UK from potato farmers in Lincolnshire and Norfolk to dairies in the south and midlands-to get hold of the customers the tasty products they expect from McDonalds. It is McDonalds policy worldwide to purchase supplies from local producers wherever possible, providing that they can meet exacting product and hygiene regulations, operate responsibly and humanely and are competitive.McDonalds strives to ensure quality from lay out to counter. To that end, McDonalds requires the highest standards and specifications, not just product ingredients every detail of production, transport, delivery, preparation and service is also exhaustively monitored.McDonalds also recognises the importance of a balanced diet and lifestyle and continues quality new products, which satisfy customers expectations for taste and value.A focus on quality permeates every aspect of the business. McDonalds standards lead the industry, and will continue to work with government and health officials to canvass improvements.Quality controlQuality control in McDonalds involves all kinds of inspection system for checking the raw materials, the food processing, customer service and management. The company carries out different types of testing the raw materials as well as the ready made meal and drinks for example the cooking oil in which the French fries are cooked is changed twice a day. Each restaurant manger and supervisor inspects daily the premises, the safety of the equipment and the expiry date on stored product such as milk, cream etc and general hygiene on the premises including McDonalds car park and the neighbouring areas.In the company mission statement different policies are allocated such as health and safety, food hygiene, manual handling, customer service, litter control, cycle and environmental policy for example McDonalds 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 McDonalds takes a sensitive approach to its built environment, working closely with planning and conservation officers to stay on buildings of architectural merit and to improve the townscape.In many towns, McDonalds has invested considerable sums in restoring old buildings, often putting back architectural details that have been los t. York, Chester and Stratford-upon-Avon are prime examples. McDonalds has supported the tidy Britain concourses annual National clean activities. Since 1988 and support its campaign just Bin it. In addition to corporate funding, restaurant throughout the UK take form and support activities to clean up their local environment in uniting with local youth groups.o McDonalds is one of the countrys leading sponsors of council litterbins.o All packaging carries the Tidy Britain Groups Tidy Man symbol.o Many McDonalds restaurant conspire litter-related competitions with local schools and youth groups.o McDonalds was a founding sponsor of Going of Green, a nationwide awareness campaign for sustainable growth.In 1997 at the TIDY Britain Groups pouf finds birthday Awards for environmental improvement, McDonalds received the top award, the Queen Mothers Birthday Trophy.o 100% reused used for happy meal boxes, take away bags, take away trays, napkins, kitchen rolls and toilets.o All McDo nalds tray liners are made from 100% fully recyclable and perishable materials.o All McDonalds suppliers have to use minimum recycled cognitive content of 50% in their corrugated containers.o All McDonalds offices recycle waste paper and also use recycled paper.o The majority of McDonalds restaurants recycle their cardboard and used cooking oil.