Political, Social and Legal Factors That Affect Mcdonalds Fast Food Outlet (Uk) and Haveli Restaurant (India)

Topics: Small business, Business, Law Pages: 5 (1734 words) Published: June 20, 2012
You would hope that businesses all over the world would work to the best of their ability in order to be the best. However, this is not always the case as there are many differences when it comes to businesses that are based in different countries. The way that a UK McDonalds functions is very different to the way Haveli in India does, due to the political, social and legal factors that cause them do so. Political Factors

The Government in the UK is relatively stable. We currently have a coalition government as none of the political parties got enough votes to win the majority. Therefore, both of the parties’ manifestos are co-joined so there is a lot more UK businesses need to prepare for. Political decisions can affect businesses greatly; occasionally they can go in the favour of the business, like a grant that exempts the business paying taxes, yet other times they can restrain a business, when they raise business taxes or stop them from growth etc. In Britain, the government can supply support for businesses in different ways, depending on the sector they are in. McDonalds is in the private sector, therefore the government tries to make sure that it is possible for all businesses in this sector to compete with each other fairly. They offer grants for businesses that are just setting up and other offerings as such. The benefit of this is that businesses starting up have a higher chance of survival and impacts the size of the market. There are investigations and actions carried out on businesses that look to become too powerful by the Competition Commission or Restrictive Practices Court if they are taking over too much of the market. McDonalds has to be very hygienic if the business is to stay open and successful. The impact this has on McDonalds is that they then have to focus on how they approach keeping their restaurants clean and hygienic. All employees are trained to clean as they go and whenever there are quiet periods a full cleaning process is carried out. The government in the UK are very conscious of the cleanliness and hygiene of businesses, particularly places that sell food. However in some countries this is not always the case. In India the Government has procedures in place and on the surface looks stable, yet money can buy more than just nice things in India. The area that Haveli is based is very unstable therefore it is difficult for them to earn money. Politicians can be quite corrupt if the price is right, so there is not as much control on the growth of businesses such as Haveli or any services such as grants, which can be worry if you are a small business just starting out. Haveli luckily as a business recognises the need for the business to run smoothly with little corruption, so they have handled the lack of a reliable government well. Legal Factors:

In the UK there are a large amount of laws in place that need to be strictly followed by businesses, if they are not taken seriously or followed correctly there are consequences that are to be faced. Competition laws have specifically put into place so that the market share is not overtaken by large businesses. Also there is a law that restricts businesses to agreeing to stick at the same price for their products. This is so there are constantly businesses competing against each other. McDonalds is a very large, successful fast food outlet that is franchised all over the UK, so you would be hard pushed not to find one nearby. Franchising of the business can be negative for McDonalds as they can find it harder to get permission to keep expanding their business and they are limited to the amount of locations they can expand into. However, planning permission will always be required and if they are seen to be overpowering other competition, Competition commission will intervene. This law does not exist in India and is not really followed by any businesses, which can be tough on the smaller businesses. Most businesses set up in India only operate in...
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