This article will cover the factors that can impact a business and their stakeholders in
two completely different environments. I will be focusing on McDonalds.
Political Factors – UK
The government in the UK would support the jobs being made by McDonalds as this
means that the economy can get out of a recession easier, and this is evident as we are
now in an economic growth period. Making more jobs also means that the amount of
disposable income people have is higher and can afford to spend it on other
products/services that are not seen as essentials; whilst McDonalds being a food
provider, it is now considered essential as it is a take-out food. However, when having
disposable income, people are more inclined to go out to get food and will want to pay for
this produce.
Due to the United Kingdom having such as varied amount of cultures, McDonald’s has
had to listen to what the public want and adapt their business towards this. An example
of this would be McDonald’s making their ‘McMuffin’s’ available all day long rather than
just the morning. For somewhere such as England, this would make a positive impact as
it gives McDonald’s a chance to gain a profit on top of what they would normally make.
Another example of McDonald’s offering different products would be adapting the ‘Happy
Meal’ into suiting a wider audience. They have adapted this product by adding in fruit
and toys into their original product.
By having free healthcare from the NHS means it is less likely for an employee to get ill
through work. And if they were to become ill, it will be easily treated. This means that
McDonald’s would not have to hire more staff in order to cover sick pay as most common
illnesses can be solved within a few days. Not having to hire more people would save a
branch a lot of money.
McDonalds is able to have a clean environment outdoors to work in due to having a
rubbish collection service and road sweepers in return for council tax. Comparing to
somewhere such as India, who do not have these services readily available from the
government, it shows that it makes a difference as it gives the public a good impression.
Basing a restaurant on a first impression can mean the difference between gaining a
profit or not.
Nationally, the school leaving age is 18. This has had a massive impact on McDonald’s in
the sense of who they can hire. When the school leaving age was 16, McDonald’s was
able to get away with paying 16 year olds what they were supposed to be paid (£3.30).
However, since a change in laws across schools, this means that McDonald’s has had to
hire more employees that are over 18. Despite this meaning that they would have to pay
their workers more due to them being older, it would not be as much as a 21 or over
would be paid. This is why McDonald’s are seen with mostly younger employees as it is
Chloe Cork