Business Environment

Topics: Corporate social responsibility, Social responsibility, McDonald's Pages: 10 (2642 words) Published: March 1, 2012
NAME: TAHIR M SULTAN
UNIT: 4 (BUSINESS ENVIRONMENT)
ASSIGNMENT NUMBER: 1
ASSIGNMENT TITLE: THE CASE: MCDONALD
LECTURER: Mr. Hamid Rahim
SUBMISSION: 11-10-2011

1.LIST SOME STAKEHOLDERS OF MCDONALDS. CLASIFY THEM AS INTERNAL, CONNECTED AND EXTERNAL TYPES.

Stakeholders can be defined as “individuals and groups who are affected by the activities of an organization. The most important stakeholders can be seen as those with most to lose from the organization’s actions, but this does not always reflect their relative power” An organization’s stakeholders are all parties who can reasonably be understood to be affected by its decisions. They can be deemed to represent the business’s social and environmental capital as well as economic. Stakeholders can be of very different and varied guises and also harbor conflicting interests consequently, its image and reputation in the eyes of its stakeholders is critical to the company. Mainly they can be categorized into three major groups: 1) Internal Stakeholders

2) Connected Stakeholders
3) External Stakeholders
4) Stakeholders Conflicts

Stakeholders are found in all organizations, businesses or firms – from a local grocery store to huge multinational companies such as Coca-Cola, McDonalds and Microsoft. The number of stakeholders per business will vary as will their importance and influence. The type of organization or product / service it supplies will also determine its stakeholders. A Public Limited Corporation may have far more stakeholders than a family owned business due to its vast numbers of shareholders.

Discussing about McDonalds, it also hold many stakeholders those who get affected and vice versa. Stakeholders of McDonalds can be categorized into the three major groups as shown under:

Internal Stakeholders

Following are the stakeholders which fall under this category: 1)Managers or Directors
2)Staff or Employees

Internal stakeholders are those who are ‘members’ of the business organization. These stakeholders are situated within the McDonald and may affect the ‘day-to-day’ running of McDonalds or be affected. Their interest would be in the McDonald`s success which will alternatively secure their career and assure them for high wages and benefits.
Example of the internal stakeholder for McDonald would be as follows: •The employees/staff member working in the McDonald’s restaurant
Connected Stakeholders

Following are the stakeholders which fall under this category: 1)Shareholders
2)Customers
3)Suppliers
4)Finance providers

Connected stakeholders are those outside the organization but have a direct interest with the progress of the business. McDonald’s suppliers would want that the business runs and grows well, as this will ensure more supplies to McDonald. The owner/shareholder will look forward for high turnover, while the customer will look for a great value of the money which they are going to spend

Example of connected stakeholders for McDonald’s would be as follows: •Shareholder/owner: Emirates Fast Food Corporation LLC
Supplier: Coca-Cola

External Stakeholders
Following are the stakeholders which fall under this category: 1)Community
2)Environmental Pressure Groups
3)Government
4)Trade unions

External stakeholders are those who are not the member of the organization, but they are indirectly affected with the ups and downs of the business. Example of the external stakeholders of the McDonald’s in UAE is as follows: •Government: Environment Agency UAE

Stakeholders Conflicts
There are many chances of conflicts among the interests of the stakeholders, i.e. customers would like to avail the best product and service at...

References: • http://www.aboutmcdonalds.com/etc/medialib/aboutMcDonalds/corporate_governance/standards_of_business.Par.44618.File.dat/9497_SBC_layout_McD_Eng-India%20101909.pdf
• http://www.corporateregister.com/a10723/mcglob08-csr-us.pdf
• http://jayzy2009.blogspot.com/2009/07/chapter-13-stakeholders.html
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