Mc Donalds stakeholders

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Shareholders are important stakeholders as they are part of the three legged stool approach. McDonalds therefore will aim to fulfil all expectations as they believe without shareholders McDonalds will not be successful. In the UK, McDonald’s restaurants are either company owned or franchised. McDonalds only sell shares in the USA they do not have shareholders in the UK. However, shareholders would still be interested in McDonald’s performance in the UK as changes in company reputation affects share price, profits and dividends.

The way McDonalds operates in the UK also directly has a big effect on the organisations reputation worldwide. Shareholders are like a special case of owners and most probably behave like any other owner. They buy shares which allow the organisation to raise money. They take risks in the business, get the rewards in return. As the owners, shareholders have an interest in the company’s financial performance. Actual and potential shareholders want to access profitability of investing in the business. They are keen to set the business in profit all the time.

EXPECTATIONS:

They want the business to do well. They want success for the business and they support it in achieving that success. They will expect McDonalds to act responsibly and in a politically correct way. If the business, for example was polluting the rivers, exploiting cheap labour overseas the shareholders and the newspapers would make their opinions clear. Shareholders expect to receive a good amount of net profit or their dividends. Dividends – a share of the profits which are paid out to shareholders. They wish the business to do successfully so that their share of property is worth more than the price they had bought it for. McDonalds do not sell shares in the UK only in US.

INFLUENCE:

Shareholders of McDonalds influence the company in many ways. Achieving to get a good reputation towards customers and thinking up ways to get more profit. They have different sets of aims such as the achievement of survival, independence, break-even, and competition. This means that the shareholder is important, if McDonalds does not make a profit, it would not survive for long, as it would be spending more money then it received. Shareholders of McDonalds have to make sure that the business is making profit so that they receive high dividends. McDonalds need an increased amount of profit; profit is the main driving force of modern economies. If consumers do not buy a product in sufficient quantities then McDonalds will have to stop producing it and replace it with something else.

Shareholders are powerful as they are able to close the business at what ever time they prefer and are able to sell the business whenever they wish. However individually shareholders have little influence over McDonalds but collectively they can influence share prices which can directly affect the overall performance of McDonald’s restaurant. If the business does not do well then the amount of money they would receive in their dividends would go down therefore shareholders want the business to do well. The amount of shares that they have can affect the reputation of the business, meaning more people would buy their products, so this in turn would affect the value of their business. If the shareholders are not satisfied with the business, they may sell their shares, which would give the company a bad reputation, so people may not want to buy their products, reducing the value of their business.

Managers  The manager is in charge of the day-to-day running of the business. They set specific targets for McDonalds and have to ensure these targets are met through the daily running of the restaurant. They are a special group of employees who may have different objectives and influence to the other employees in a business. They have to make a lot of decision-making for example they have to decide who to direct to a special area of McDonalds to do a specific job or like preparing the timetable for the employees. They have to decide who works when and where. Their main role is to supervise the staff at McDonalds, making sure everything is going according to rules and checking if the staff are doing their job properly.

They have to look into the cash flows and prepare all the important financial documents. Furthermore they have to look after cash and make sure everything is up to date. Managers have to ensure that McDonalds is running fluently and healthily without having low overheads. Expect to be entitled to a small percentage of commission in the net profit. Managers have the ability to sack the staff but they are not as powerful as shareholders. They have the power of controlling the cash unit as well as the employees.

They ensure the business is doing well. They have different objectives, targets, approaches to other employees in the business. For example they may want to expand on their business. They would want their employees to work up to a certain level and high standard. They have the same aims as owners. Expect to be entitled to rewards such as free shares, bonuses, higher salaries, or profit-sharing schemes. They are expected to be paid well and to be provided job security as they are a long term worker at McDonalds.

As well as being given job security they should also feel that they are part of a ‘family’ they should enjoy working and find it interesting as it effects the work put into the business. If the managers do work hard they would expect a return in a reasonable profit. To produce new modernised designs for customers and present new goods in McDonalds. They also expect good pay, good working conditions and training promotion opportunities.

EXPECTATIONS INFLUENCE:

They are responsible for the efficient running of the business; their job is to influence employees of the business. They should ensure that the employees are doing their job and are motivated and happy. It is important that the managers keep encouraging the employees with positive remarks as it can affect performance of employees. They are responsible for the reputation of the company as well as the success treated fairly of the restaurant. McDonalds listen to the manager’s expectations and will aim to keep them happy by offering bonus schemes and other benefits such as company cars etc.

If the manager is dissatisfied with his/her working conditions and pay they may not perform up to their full potential, they wish to not do their job properly and so this brings out a negative affect on McDonalds customer service. As well as a negative affect they can also have a positive affect on the performance of the restaurant and profits. If they are self motivated and hard working they can have a large affect on the employees which would benefit the restaurant overall.

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