The Resources Required by the Business to Function Effectively
The company that was selected for evaluation is McDonald’s Corporation. It is one of the leading fast-food restaurant chains in the United States and globally (Singireddy, 2020). For this corporation’s business to function correctly, several resources are crucial. Firstly, the firm needs employees who are skilled at preparing meals using the available equipment and polite with the clients. Indeed, McDonald’s not only strives to hire people who fit these requirements but also ensures proper talent management by providing competitive salaries, flexible work schedule, rewards, recognition, and opportunity to learn (Tiger-Week et al., 2022). Secondly, high-quality food products are needed for cooking meals of exceptional taste to satisfy consumers. McDonald’s contracts with reliable suppliers to ensure that only fresh and safe ingredients are used (Tiger-Week et al., 2022). Thirdly, the equipment this firm uses allows for the quick cooking of fries, chips, and meat (Tiger-Week et al., 2022). Furthermore, the digitalization of ordering and payment made the purchasing process at McDonald’s more convenient and faster (Tiger-Week et al., 2022). Overall, these resources allowed the company to deliver exceptional customer service.
The Place of the Business in the Economy Sectors
The economy can be divided into four sectors, from primary to quaternary. The primary sector is represented by industries that extract such natural resources as coal, oil, gas, and metals (Langager, 2022). The secondary sector deals with firms that produce items from raw materials; the two most prominent examples are manufacturing and construction (Langager, 2022). The tertiary sector is represented by companies providing various customer services (Langager, 2022). The last type comprises industries that deliver intellectual products and assistance (Langager, 2022). McDonald’s can be categorized as a corporation of a tertiary sector because it provides food service to its consumers.
The Firm’s Type of Legal Structure
When firms are established, they must undergo formal registration to make their businesses legitimate. The four legal structures are a partnership, sole proprietorship, limited liability company (LLC), and corporation (CFI, 2022). Sole proprietorship, one of the simplest forms, is a firm owned by one person who is, by statute, responsible for most operations (CFI, 2022). As the name suggests, a partnership is a type of business owned and run by several people (CFI, 2022). A corporation is considered a separate legal entity from its owners, but at the same time, it has more legislative obligations (CFI, 2022). LLCs, in a sense, incorporate features of partnership and corporation but with little tax and legal requirements (CFI, 2022). McDonald’s can be considered a corporation since it has a complex structure with multiple partners and franchises, but it is a separate legal entity.
The Business Objectives of the Company
The three primary business objectives of McDonald’s are providing value, exceptional service, and a clean dining environment in its restaurants. Firstly, this company understands that to maintain its clientele and recruit more consumers, it is essential to give them value through reasonable pricing and high-quality food (Kee et al., 2021). Secondly, McDonald’s strives to maintain high-quality service by ensuring that orders are delivered on time and accurately (Kee et al., 2021). Furthermore, the staff is always friendly and polite with the clients (Kee et al., 2021). Thirdly, the corporation’s restaurants are always clean and elegantly decorated to create a positive customer experience (Kee et al., 2021). In this case, the key business terms are value, service quality, and dining environment. Value in this context means something that will show the customers the company’s efforts and care. Quality of service can be described as how a firm fulfills its duties in serving its clients. Lastly, the dining environment is the appearance of the building and the interior’s aesthetics where the meals are prepared and served.
Table 1 – Stakeholders’ expectations and accountabilities
Reference List
CFI (2022) Business structure.
Kee, D.M.H., et al. (2021) ‘Critical success factors in the fast-food industry: a case of McDonald’s’, International Journal of Tourism and Hospitality in Asia Pacific, 4(2), pp. 124-143.
Langager, C. (2022) Industry vs. sector: What’s the difference?
McDonald’s (n.d.) Governance and stakeholder engagement.
Tiger-Week, E.O., et al. (2022) McDonald’s corporation – a case study. MBA capstone. International American University.