How business works Essay

Introduction In this assignment I will be producing a case study on large/medium sided businesses, showing of how business works. My chosen company is McDonalds. The following will be including in my case study: * A description of what the business does, its aims and objectives. * A description of the purposes and activities of human resources and any other three functional areas. * A description of how effectively different areas of the business communicate. * A description of how the structure of the business is different from another organisation’s structure. * A record of my source’s information. McDonalds Restaurant OverView McDonalds is a large fast food chain of restaurants operating world wide, started in America and has outlets in other places such as, India, Cyprus. In many countries McDonald s sells variations of its food to cater for local tastes. They are also known for being multicultural because of the different cultural foods in their restaurants. Because of their huge volume of sales McDonalds has strong purchasing power with its suppliers and is therefore able to sell food very competitively. By the end of 2001 their was 1,184 restaurants in the UK alone. They had a target to get over 80 new restaurants opened by 2002, and that was achieved. By opening over 80 new restaurants they employed 4,800 new employees. ACTIVITY, AIMS & OBJECTIVES (P1, D2) Main Activity The main activity of McDonalds is selling fast food. They aim to provide a customer service, there are 1.5 million employees working for McDonald restaurants in the 119 countries, which all have the same daily activities which involves the staff in greeting, serving and helping customers with any enquiries or problems. They are the largest food service company in the world, so it’s important that all employees work together to succeed their aim. Main Aim McDonalds main aim is to provide customers with a fast food service in order to obtain a profit for its shareholders. McDonalds are committed to conducting their business with the environment in mind. McDonalds mission statement is â€Å"To be the world’s best quick service restaurant†. This is being achieved through five strategies such as; * Development: Lead the quick service restaurant market by a programme of site development profitable restaurant openings. * Our People: Achieve a competitive advantage through people who are high calibre, effective, well motivated and feel part of the McDonalds team in delivering the company’s goals. * Restaurant Excellence: Focus on consistent delivery of quality, service and cleanliness through excellence in our restaurants. * Operating Structure: Optimise restaurant performance through the selection of the most appropriate operating, management and ownership structures. * The Brand: Continue to build the relationship between McDonald’s and our customers in order to be a genuine part of the fabric of British society. Objectives McDonalds objective is to be the best’s quick service restaurant and believes and believes that this involves avoiding damage to the environment at a local and global level. The company aims to ensure that its operations today do not have an effect on the lives of future consumers. McDonald’s is involved in an ongoing programme with the aim to improve the environment, they do this by reusable packaging and recycling. Functional Areas within McDonalds (P2, M1, D2) HUMAN RESOURCES The Human Resources department concentrates on employees who work for the McDonald restaurants. Human Resources department include managing staff and their welfare, so the safety of their staff is taking very seriously, this all comes under Health and Safety. Staff have to be careful not to use computers/tills for long periods of time because they can suffer from eyestrain, tiredness or stress. McDonalds is improving communication systems by installing panic buttons for the safety against violent customers. McDonald’s employees have to work together to ensure a hazard free zone, by adhering to the health and safety regulations. McDonalds puts new employees on to a training system, to make sure if an accident happens which involves either a member of staff or a customer getting hurt, then the employee will be able to handle the situation effectively. McDonalds restaurants work to high standards, which meets and mostly exceeds the rules and regulations. The company always aims for the highest standards given in guidelines because of health and safety regulations and to expand the business. If McDonalds didn’t meet the requirements than they would be closed down by the health and safety executives. The Human Resources department contributes to McDonald’s activity by making sure: * They employ the right staff * Making sure the store is a hazard free zone These things contribute to the activity of McDonalds because without them they wouldn’t be able to achieve their aim, so it’s important that all the different department’s work together to succeed it. Recruitment, Training and Development When recruiting staff McDonalds look for people who have a positive attitude towards customers, themselves and other employees, and who are capable of delivering the highest standards of quality, service and cleanliness to our customers. Then potential employees are trained, promoted and treated on the basis of their relevant skills, talents and performance and without reference to race, colour, nationality, ethnic origin, sexual orientation, gender, marital status, age and disability. McDonalds management development curriculum takes new recruits form trainee manager to restaurant manger. They have on-the-job training and open learning development modules, backed up with courses and seminars at the company’s national and regional training centres. Hourly paid staff receive continuous on-the-job training by computer based training and other training materials. When employees complete their initial training staff members are awarded a basic certificate in food hygiene. Employees Below are the figures of the staff’s gender and age status. By the end of 2000 McDonald’s employed 49,726 members of staff: * 46, 207 restaurant crew * 2, 974 restaurant management crew * 545 office staff Health and Safety McDonalds always aims for the highest standards (and mostly exceeds), so they can achieve its aim and be the best quick service restaurant. If McDonalds didn’t meet the requirements of the health and safety act 1974 than they would be closed down by the health and safety executives. The most common hazards which occur in a work place are: 1. Leaving the work place untidy and dirty 2. Leaving floors wet and stairs 3. Leaving wires to trial across passageways 4. Frayed carpet or loose tiles 5. Equipment just left all over work surfaces 6. Too many plugs inserted into only one electric socket The human resources department has to make sure that all health and safety regulations are met. If they are not met then it can be closed down, also if the restaurant is unclean then it could loose customers and wouldn’t keep up their activity to be the best selling fast food restaurant. Customers wouldn’t want to go to a dirty restaurant, where there are a lot of hazards going on such as; wet shop floor, bins over filled, dirty tables and a unclean kitchen area. If any of these hazards occurred in any McDonalds restaurants customers could become ill or hurt, which would result in McDonalds going to court or having to closed the McDonalds restaurant down. Management training includes coping with emergency situations that could arise in a restaurant. This is because it decreases the risk of people being injured or the buildings being damaged in the McDonald restaurants. When an accident has occurred the manager then has to write out what happened and then investigate on the matter. Training is the main priority to ensure the consistency of the restaurant operation, and the highest levels of customer service and care. Every McDonalds franchisee must successfully complete a training programme which takes on average nine months to complete. Trade Union The workers are represented by union of shop, distributed and allied worker. Job Roles In Human Resources Job Roles In the Human Resources function Carmel Flatley, Human Resources Director I am the human resources director of McDonalds and I have the overall decision of anything that happens in this department. I also have to make sure that the human resources department don’t go over their budget. Paul Smith, Human Resources Manager I look after the whole HR department and staff, involved with industrial relations and trade unions negotiations, implementing the organisations HR policies. Gemma Wilson, Recruitment officer I deal with recruiting people, that’s sending out application forms, making interviews for potential employees. Potential employees don’t need to be experience in any way, because McDonalds is committed to training their staff and improving the skills of staff. Matthew Lawrence, Health and Safety Officer I deal with all health and safety matters, accident monitoring and staff welfare. That involves making sure that the shop floor is a hazard free zone for customers and clean and tidy, making sure the kitchen is clean enough to work in. I am well trained in first aid so that if any accidents happen, I will be their to help. I also have to deal with complaints and try to solve them. FINANCE The finance is one of the most important functions as they record all the money going in and out of the business, they give a budget for each other department to spend to make sure they keep their level of income and expenditure. They would regularly check the amount of money each department has spend and made to see if they are on target or not. If a department has gone over their budget then the finance dept would check to see if there is enough money to lend those more. So the purpose of the financial function therefore is to: * Keep all the financial records required by the organisation, detailing all the receipts and payments that have been made * Prepare final accounts from these records as required by law * Monitor the income and expenditure of different departments against their budgets * Provide continuous, up to date financial information for managers about business performance * Pay salaries and wages to the staff * Pay amounts owing to suppliers * Control the levels of debts owed to the company * Obtain additional finance when required, from the most appropriate source * Advise senior managers on the financial implications of major decisions These contribute to the McDonald’s activity by being apart of providing a good customer service by, paying the employees their salaries/wages, if they weren’t paid they wouldn’t be no staff or it could result in the staff withdrawing their labour. Production will cease and the employer will lose revenue. By McDonalds receiving more capital they can improve the quality of the store or products so customers would be more pleased of the in store environment or pleased of what they have purchase. It would result in consumers returning to the store because of the good service and also bringing more money to the business which will also achieve their aim which is to be the best selling fast food restaurant. Job Roles in Finance Department JOB ROLES George Mackay, Finance Director I am the finance director and I am in charge of the whole finance department. It involves information services, new product development, quality assurance and supply chain. I have to make sure a product which is purchased has the right quality that is expected from consumers, and then have to put a price to it. The most important part of the finance department is the cash flow which is the movement of cash going in and out a business. As a finance director I have to gives advice to senior managers on the overall decision on financial matters. And also as a director I have the last say with what happens within the finance department. Christopher Bateman, Financial Manager I looks after the finance function and the staff. Advising on financial resources. As a manager I have to make sure that all work as been done well. E.g. they have to monitor the income and expenditure of all departments to make sure they haven’t gone over their budget. So after the staff have checked their cash flow I then have to then go threw it to make sure nothing has been missed out. Derek, Daniels, Ledger Clerk I have to assist the chief accountant in the recording of all financial transactions. So where the money goes or comes in I have to make sure the chief accountant has recorded it all effectively. If any mistakes have been made I then have to correct the errors. Nita Negi, Credit Control Clerk As a credit control clerk, I have to assist the credit controller in checking the credit status of new customers and existing accounts, and also Reminding customers or overdue payment. PRODUCTION Production is all about the process of making something. Product life style shows the stages of a product or a range of products. If it isn’t successful it goes to decline stage. The activities of the production department are listed below: * Obtaining the resources required to produce goods or provide a service * Organising the resources to produce the goods or provide the service in the most appropriate way For the activities to be achieve they must consider the aim of the business which is to be the best selling fast food restaurant, so they have to find the best quality of food that suits them and then order it but first having to keep on target and not going over their budget by ordering expensive items or ordering to much that it all cant be produced/sold. Another thing they must consider is if the resources can be organised to achieve the aims, doing this they have to think about selling it cheaper then their competitors or having an offer like buy on get on free. They do this so it sells more because people wouldn’t to spend more they would go to the most cheapest place or giving the product an offer can be appealing to the customers. The production department contributes to McDonald’s activity by finding the right products at the right prices. When good quality products are sold at low prices it pleases customers and make them want to return, it also brings in more people as when a customer is pleased with the type of service they have receive the consumer then tells several other people, which makes then want to try it out. Job roles in Production Job Roles in Production Steven Cornway, Production Manager Responsible for the entire production function and it’s operations. What ever goes on has to be checked and authorised by me. Kim Karenga, Production Planners Plan all production to maximise machine use and staffing, taking account of customer requirements. Chris Walker, Production Controllers To check all production is going to schedule. Ted Osborne, Designers I am responsible for the actual design of the finished product. So if I don’t like the way a product has been designed I can make remendments. MARKETING The object of marketing is to make sure that the right product is made and potential customers are persuaded to buy it. Market Research can be carried out through either primary or secondary research. Primary research means asking someone on their views or opinions. A way of asking potential customers of their views or opinions is to make sure a survey, having questions about a certain item. After the survey has been completed they will then need to send out the surveys to potential customers, by either online, over the phone, by post or giving out surveys (in stores. Postal surveys don’t have much of a response as the others do as it takes more time e.g. sending it back, so when postal surveys are concerned their will usually have to be some kind of incentive offered for completing the survey, so customers would be tempted to fill it out. Secondary research is known as â€Å"desk research†. It consists to looking up facts or figures in books, magazines, computer databases, company files. So secondary research is looking at information that already exists instead of creating your own. McDonalds keeps a large amount of information on their databases about their customers and their buying patterns, also companies buy information from government statistics. Product – The amount of products the customer wants, the quality wanted, the features and the styling that are preferred, whether packaging is important, whether a guarantee or after sales service is required. Strategies – Is a long term plan for future success or development. Place – McDonalds are located on high streets or town centres. Marketing contributes to the McDonalds activity by market research (finding out what potential customers wants/needs), and improving existing products. Both of these improve the customer service, marketing contribute a lot to their activity to make McDonalds achieve their activity. All the functions work together to achieve it. The job roles of Marketing Job Roles in Marketing Matthew Howe, Marketing Director I am responsible for the overall marketing function and its aims and objectives. So if any idea’s have been thought of they have to been checked with me before anyone goes ahead and makes a change. Ethan Farah, Sales Manager As a sales manager I am responsible for overseas agents and the achievement of sales targets overseas. David Frank, Market Researchers Market researchers have to find out consumer opinions on current and proposed goods and services, if this is not done than they could bring out a product which isn’t doesn’t sell a lot and a loose the money they put in to produce the products. Advertising Manager An advertising manager is in charge of advertising and liaising with agency staff over publicity campaigns. Advertising is one of the most important things in marketing as without advertising a product will not be known so their would sell as well as products being advertised. EQUAL OPPORTUNTIES (P3, M2, D2) In a work placement an employee has rights and responsibilities. Below are the rights and responsibilities of an employee. Rights as an employee Employee’s rights How to carry it out Having safe working conditions Making sure that the area your working is a hazard free zone, if not consult your manager or the human resources area. It is also your job to take care with anything you do to prevent any hazards happening. Getting paid the fair salary/wage Depending on your age, experience and contract, employee’s get paid differently. You have to make sure that your getting a fair paid if not consult your manager. You should first read your contract because you might have signed for getting paid the amount you’re getting. Provided information concerning your rights Before starting your job you will be provided with information about the rights an employee has. (mainly in your contract) If you’re not provided with this information you are able to ask for it. Not to be discriminated on grounds of race, sex or disability If you feel that your getting treated unfairly according to your race, sex or disability your able to take up action like consulting your trade union. To be consulted over matters which will significantly affect your terms and conditions of employment If you employer decides to change something, which affects the terms and conditions on you employment and does not consult you first, you can take action upon this. Responsibilities for an employee Employee’s responsibilities How to carry it out To be ‘ready and willing to work It’s always good to be full with enthusiasm in your work because it looks good for the company and make you happier in your work To give a personal service Your contract will contain you main job roles, but it’s always good to provide your own service like putting your ideas into your work, smiling and just any other little thing. To treat others how you would like to be treated If you’re rude and dishonest than fellow staff would treat you the same. It’s important to work as a team and communicating well with other people, this can only be done if you treat people well. To work towards the objectives of the business Working towards the objectives of a business could look good on you and on the business, if the employer see’ s you are working hard than it could result in the employee being promoted. To work in good faith Working in good faith consists of being honest, if you’re honest it again can see that you’re trustworthy and could get promoted. But yet if your seen lying than you could loose your job. COMUNNICATION (P4, M3, D1, D2) Most organisations have different ways of communicating, communicating is one of the most important things in a business, because without communicating you cannot run a business effectively. They are all types of communicating, below is a list of ways of communicating within a business. * Meetings * Group discussions * Tele phone * Memo’s * Emails * Draft letters * Reports * Faxes There are two main methods of communication which are oral and written communication. Oral communication could be either face to face or the over the phone. If you can’t get threw to the person you are calling then you can leave a message which is still oral communication. Written communication could be sent by mail or transmitted electronically. This can include letters which is the most common one, text messages on mobile phones or notices on notice boards. Below are the advantages and disadvantages about oral and written communication. Oral Written Advantages 1. It’s a fast way of communicating because you don’t have to write things down. 2. It’s cheap, as if you phone someone you would have to pay for the phone call. 3. Immediate feedback, you don’t have to wait age’s for someone to reply back to you as you would in a letter. 1. Writing a message can be retained for future reference. 2. Writing a message can also be copied for other people’s uses. 3. Creates a distance between sender and recipient useful for difficult communication, e.g. bad news. Disadvantages 1. Clear Speech, you must speak very clearly so that other people can understand you, but yet when you write a letter people can just read it in their own pace. 2. Long or complex messages can be forgotten. 3. You can be easily distracted while someone talks to you, and then you could forget the whole message they just told you. 1. When writing a letter it can take time to write, while if your talking to someone its faster.] 2. Keyed in documents need to be skilled and produced quickly and accurately. 3. Delivery can take time, or could be delayed. McDonalds functional areas communicate with each other by a system called Intranet which was launched in 2000. The McDonalds intranet provides a fast and up to the minute source of information for the McDonalds restaurant management and office staff. McDonalds external communication is don’t by a system called McNews which was launched in 2000. McNews is a award wining magazine which was published monthly for all restaurant staff, then in 2002 McNews was re – launched as MDUK and is now a lively focused magazine. MDUK has activities and events from restaurants around the country. MDUK is a showcase for best practice, recognising individual’s outstanding practices and achievements, as well as highlighting internal and external awards. Apart from the Intranet and MDUK, McDonalds also has other ways of communicating within the business, they are listed below. 1. An email system operates in all offices and company – owned restaurants 2. Regular staff communication sessions are held in the offices 3. Employee satisfaction surveys for both office and restaurant staff are held annually. 4. Meetings are held monthly. 5. Memo’s – send daily An email system is to contact anyone within the business or outside the business, the email system is a fast and easier way to contact people. The email system is used by most companies and general people all over the world. Staff communication sessions are held to improve of employee’s communication skills. This is important because communicating with customers is one of the main things to do. Employee satisfaction surveys are handed out every year, so employees can write how they feel working in the McDonalds restaurants. This is a good thing to do because it’s important to keep the staff happy as it motivates the staff to work harder. Meetings are held every month to discuss the McDonalds performance. They also talk about how much they are making and see what can be improved with the money. McDonalds talks about new idea’s and try to change or promote things that is not doing so well. This is a good way of communicating as you get to talk face to face to see the expressions on each other faces and it’s faster as you don’t have to way for a reply if you do if you was writing an email. Memo’s are used daily in all of the departments. Sales manager might send a memo to human resources manager and ask if he has found a sales person. Memo’s are used daily because they are important little messages, and it’s also a fast way of sending.