Assessment One – Mission Statement
Part A
A company’s mission statement defines the objectives of an organization and the purpose of its very existence. It lays down the underlying principles on the basis of which the company's policies, strategies, and actions are formulated. It serves as the basis on which planning, budgeting, and internal decisions are made as well as the basis on which communications to customers, suppliers, and the community are articulated. (Salem Khalifa, 2012). A mission statement also indicates how an organization aims to serve its key stakeholders. The stakeholders include clients, employees, as well as investors. (Bart and Baetz, 2017) However, a mission statement isn’t perpetual and tends to change as the organization evolves over a period of time. A mission statement works as a guideline for the organization and hence needs to be fine-tuned with the changing times to ensure that it does not become irrelevant or obsolete. A mission statement should inspire and motivate those associated with the company and also intend to influence. The mission statement needs to be formulated in a persuading yet simple way without the use of too many technical terms.
A Private Limited Company is probably the most common type of corporate seen and has been a hugely successful business format. All the shares of the company are privately held by the owners. The idea behind the formation of a private limited company is to protect personal assets, have greater access to resources, and financial aid as well as greater tax cuts. One of the major reasons for opting for a private limited company is that it has limited liability. A private limited company is treated as a single entity, and hence the company is liable for all its debts. Being a legal entity, its finances are also treated as separate from that of its owner. Thus, in case anything untoward happens to the company, its owners aren’t personally impacted as they are liable only for the unpaid shares. Private limited companies pay corporation tax on their taxable profits and are usually exempt from higher personal income tax rates. Permanent succession is another advantage that the company enjoys since it has a distinct legal entity. Shareholders as well as employees act “as agents of the company,” and hence their exit does not impact the company much. The company may cease to exist only if it follows the liquidation process. Guaranteed succession brings with it a sense of job security as well. (Ltdcompany.co.uk, 2017)
A business studies its external environment to recognise opportunities and threats in the market. A key task is to collect precise market intelligence from time to time and use it appropriately to further their competitive edge over other firms. The PEST analysis is the most common tool used to assess the macro environment in which a business operates (Gupta, 2013). It comprises many factors that impact a business. Each letter in PEST denotes the factors that affect a business. PEST stands for political, economic, social, and technological factors. The political factors take into consideration the country’s present political scenario, the impact of global politics on the country as well as the business. It takes into account government policies, legislations, taxes and tariffs, and other governmental factors into account. Economic factors take into consideration all the critical elements of the economy and its state and take into account the inflation, interest, and unemployment rates as well as the disposable income of the consumers in a nation. The culture and social attitude of a country defines the social factor of the nation. The technological advancement of a nation impacts the performance of a business. Technological factors are the enablers that assist in understanding how consumers respond to various trends. (Thomas, 2007)
Part B
The organization structure that a business has will set the course for the system for the company to function and coordinate the organization’s goals (Tran and Tian, 2013). The organizational structure at McDonald’s is divisional type. It allows the company to separate the huge divisions of the business into small fragments of semi-autonomous areas. Each division is in charge of a particular functional area. A major advantage of this kind of organizational structure is that it allows each department to focus upon a specific function or product, having a distinct head who specializes in that area. The heads will take care of the operations associated with the specific division. This way each department can emphasise the betterment of the specific goods, services, or zone they are in charge of and not be diverted off the opposing interests. The divisional structure also permits a lot of flexibility for the entire organization as each function is distinct from the other and stresses the need for the challenges faced by the particular department. Thus, the divisional structure allows the company to stay focused on the goals of that particular department without getting entangled in the overall politics of the organization. (Steiger, Hammou and Galib, 2014)
One of the core values of McDonald’s is sustainability, which they strive to achieve by employing people, functions, and practices which will enhance the effectiveness of the organisation’s business. In this endeavour the company looks at energy conservation, animal welfare as well the global issue of climate change. They believe in reducing their carbon footprint and recycling more of the waste and other products so that a sustainable environment is achieved. By taking these causes McDonald’s intends to better the life of the public at large. They strive to give their customers and society great services and products that will foster a great eating experience. The company also believes in inculcating a great eating habit that is comprised of nutritious ingredients, taste, and diversity. The company also believes in having a positive environment. They are committed to following certain Standards of Business Conduct that will provide clarity, guidance, and resources on a wide range of issues. These are the symbols of fairness, honesty, and integrity. They also look after their employees by treating them with respect, dignity, and fairness. (Mcdonalds.com, 2017)
Figure1 - McDonald's Organisation Structure
