...P6 Describe how political, legal and social factors affect McDonalds Political Factors in UK Political factor is one of the main factors for McDonalds as it allows them to have the knowledge of how the economy is and also allows them to predict how to move forward with their business and expand it. The political stability in the UK is stable due to the fact they have a stable government because the inflation is at 2% which allows McDonalds to run their business successfully as the economy is thriving. Whereas India isn’t a well-developed country and the laws and legislation’s aren’t enforced properly. This could allow other companies to copy McDonald’s products and services without getting caught. As it is a LEDC there is less money in the economy so McDonalds may not be bought as frequently compared to the UK. Availability of transport and internet In the UK the availability of transport is excellent as the roads are good and there are very good transportation vehicles as well so the logistics for McDonald’s is excellent. This means they can get products from location to location easily and efficiently. The availability of the internet in the UK is also really good and reliable and it is quite the norm in society. This is good because McDonald’s can then use this to advertise the business. In India the availability of transport is not as good as the roads are not properly maintained and some locations would be hard to reach. This means the logistics would not be as good...
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...Data protection Act 1998: Information must be gained legally, in other words, have the persons consent to be able to give out information of the persons details. If the information is passed on then the company could get a fine and the business could get sued because it is breaking the law. For example if McDonalds had a customer who paid by card then all of the information on the card would be possessed by McDonalds, if McDonalds then passed on this information to another company then they could get done for fraud which means breaking the data protection act 1979. Sales of Goods Act 1979: This is an act which helps the customer to take back a faulty product they have bought from a business. The amount of back which is available from the law set by the government is depending on the product price and where it is bought from. A refund or a replacement of the product can be given to the customers. The product has to as it is described, must be fit for purpose and the product has to be as it is described. If JD had sold a product to a customer and the product is faulty then the customer has the right to go back to the store and either refund or either exchanges the product for another one. The Consumer Protection (Distance Selling) Regulations: This protection was brought forward by the government for the protection of customers buying goods online; Retailers would need to have full description of the product, conformation of the information in writing, seven working days...
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...Pelman vs. McDonald Marjorie Volcy GBA504 October 13, 2012 Childhood obesity have increase drastically over the past 20 years and recently ten per cent of the world's school-aged children are estimated to be carrying excess body fat, with an increased risk for developing chronic disease. Of these overweight children, a quarter are obese, with a significant likelihood of some having multiple risk factors for type 2 diabetes, heart disease and a variety of other co-morbidities before or during early adulthood. The prevalence of overweight is dramatically higher in economically developed regions, but is rising significantly in most parts of the world. Studies suggest that excess body weight cost the US health-car systems an estimated $31 billion to treat overweight and obese children who develop any health issues due to their obesity state. One of the first lawsuits in the US against fast food industry was the case of Ashley Pelman vs. McDonald Corp. Ashley’s’ mother Roberta Pelman allege that McDonald Corp practices when making and selling its products were deceptive and that the deception caused minors consuming the products to injure their health by becoming obese. The very first time Pelman brought this case to courts the Judge dismisses the suit with leave to amend on January 22, 2003. The case was dismissed under the New York Consumer Protection Act this was because the Pelman’s failed...
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...McDonalds: Operating in the Best Interests of Society or its own Profits? Marc Nettekoven Florida Atlantic University Professor Brenda Richey MAN 6937 December 7, 2011 Table of Contents Introduction 3 Company Changes 3 Competition 7 Consumer Protection & Regulation 8 Corporate Social Responsibility 10 Conclusion 11 Appendix 12 References 13 McDonalds: Operating in the Best Interests of Society or its own Profits? Today, there are numerous other fast food chains and similar alternatives for consumers to choose from beyond the option of McDonalds. Due to increasing levels of competition, rising concerns of food quality and increasing concern of obesity; operating in today’s globalized fast food society can deem to be a difficult task. McDonalds needs to broaden its narrow-minded focus on generating profits (expanding its location base) and adding more locations. The company needs to increase market share while building a good reputation by operating in, and contributing to, the best interest of society. When referring to society, it includes all stakeholders in the company, ranging from customers to suppliers. To realign its strategy and focus on ethicality and its responsibility as a corporation, McDonalds must involve all levels within the company, from top management to suppliers to franchise employees. Although operating in such a manner would require large levels of capital, the benefits to society as a whole would inevitably bring company...
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...Since 2001, McDonalds and many other fast food restaurants have had to defend themselves against lawsuits alleging that their food has been the sole contributing factor for a customer’s obesity or obesity related medical conditions. The lawsuits began with several cases represented by Samuel Hirsh. The first, which was later dropped, was concerning a customer, Caesar Barber, who was a maintenance worker claiming to have become obese from eating at McDonalds and other fast food chain restaurants. While that case was later dropped, Hirsh was back in court with the same allegations except this time he was representing two teenagers: Ashley Pelman and Jazlyn Bradley. The teens claimed to have eaten fast food from McDonalds regularly because they believed the food was a healthy choice. They eventually become obese and developed obesity related diseases, including diabetes, coronary heart disease, high blood pressure and elevated cholesterol intake. The complaint alleged that McDonalds should have known that is food would cause obesity and related medical conditions in American children and that it deceived customers by offering unreasonably unsafe food items, engaging in deceptive marketing, sales and advertising and failing to warn consumers about the dangers of its products. Additionally, since Pelman and Bradley were minors, Hirsh claimed that they could not be accountable for their food choices. The outcome, however, was not what the plaintiffs expected. The plaintiffs could...
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...needs and requirements but to businesses these would not always be obvious. Now companies have to always keep customers in mind when thinking of a product and the market is so competitive you will need to be the best product out there in that market to have the most chance of being brought. Three simple questions are often used when businesses decided to come up with a new product; what do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? All being very good and valid questions to ask which will help to increase customer satisfaction as they are always in their minds. The two businesses I have chosen to use in order to compare and contrast their marketing techniques are; River island and McDonalds. River Island Marketing Objectives Organisational Aims and Objectives- As quoted by the official river island website “To bring new and original fashion to you, with great design at the heart of everything we create. Our customers can rely on us for great going-out looks and occasion wear, amazing denim and fabulous bags and shoes. We...
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...Sales of Goods Act 1979: This is an act which covers the customers when buying or selling goods. Consumers are allowed to return product if it does not match the description or is damaged. This act makes it compulsory for the organisation to describe its products accurately. For example If Nike sells a plastic equipment (squash racquet) by describing it as an titanium alloy. Consumer protection (distance selling) regulations 2000: This applies when a business sells goods online or by any other distance, such as text messaging, phone calls and internet etc. So it is compulsory for the business to follow this law which states that, product when sold must be in a good working condition, consumer should be provided with prior information, making sure that the details are clear like payment and delivery information. A consumer also has the right to cancel and refuse to except the product if they think it’s faulty or not in a good working condition. If someone has ordered a product of Nike online, then it’s the responsibility of the business to provide payment and delivery information as well as making sure the product is not damaged. Pressure Groups: It’s a group of people who think the business is not functioning the way it should and it puts the pressure on them to change their techniques. Example If McDonalds starts pollute the air then pressure groups can enforce their power for McDonalds to change their ways. Some pressure groups are Friends of the Earth and Greenpeace. Consumerism:...
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... In this assignment I will be conducting a PESTLE (Political, Environmental, Social, Technological, Legal and Economical) analysis of two companies, McDonalds & Samsung. I will be looking at the factors which affect the business at this current time and also factors that may potentially affect them in the future and what they can do as a response and the benefits and drawbacks that may come with their response. McDonalds “McDonald's is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across 35,000 outlets” and was founded in the United States in 1940 and currently have more than 1,200 restaurants in the UK. Political Politics can heavily affect the way in which McDonalds operate, as regulations set by the government have to be followed by organisations or could result in consequences, fines and bad publicity. Firstly, one political factors could be, that the governments are trying to cut down the rate of obesity in the UK (it is estimated that around 25% of the UK is classed as obese and that is set to rise to 50% by 2050) by: encouraging the UK population to eat healthier and to cut down on fast foods and sugary foods and to inform the population more about the health risks associated with obesity e.g. (diabetes & strokes). McDonalds have responded to this by; introducing healthier recipes and products – such as a wider range of salads and fruits; by cutting the amount of salt they...
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...Explain the limitations and constraints of marketing. Advertising Standard Authority (ASA) Advertising Standard Authority is responsible for all advertisements and promotions across every from of media. The ASA responsibility is to ensure that all advertisements are: legal, decent, honest and truthful. For example the ASA make sure the language used in the advert is not bad, and if it is, it won’t be shown day time while children are still watching TV. They also make sure what is said in the advert is true, say; if a business advertises their product saying it can remove spots within 24hours but in real life it doesn’t the ASA will make the advert will not be show because they business is not telling the truth. Also, they ensure the company which is advertising their product respect the principles of fair competition which is generally accepted in the business. For instance, Aldi advertise their product and in so doing they tell the public not to buy from Asda because their goods are not good or their product are expensive. This would be classed as unfair competition by Aldi as they are trying to ruin the reputation of Asda without any valid reason. When a company breaks the rules of the ASA what they can do to the company is; The ASA adjudications the company by putting on companies profile a bad publicity- which means the companies public reputation is at risk, since they will be giving a bad reputation in advertising or promotions; so most of the media’s will not be willing...
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...No matter what ones philosophical views are in regards to legal systems whether good or bad, laws help societies maintain a sense of order, setting and maintaining a sense of normalcy, in efforts to prevent societal entropy. In America the foundation of our legal system is based on the U.S. Constitution created the nation’s founding fathers to ensure every citizen equal access to justice. Liebeck v. McDonalds and Pearson v. Chung are two highly publicize cases of Tort law. “The primary goal of tort law is to compensate the innocent persons who are injured or whose property as result of another conduct (Kubasel et al 2011, p.309). Both of these cases involve people who wanted to turn to the American legal system to obtain justice for civil wrong they felt incurred by a business. This paper will render an in depth analysis these two popular cases, exploring the facts, the issues and arguments pose in each case by asking eight critical questions that seek to evaluate the strength of both cases in comparison to one another. What are the facts of the cases? Liebeck v. McDonalds In February 1992 , Stella Liebeck, a 79...
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...responsibilities towards and consumers and consumer’s responsibilities towards McDonald’s? Compare, contrast and analyze this and determine what type of actions a company could make to meet this ethical obligation, and why it must be considered in these relationships. The Coffee Spill Heard Around The World Corporate Social Responsibility, Consumer Responsibility, And Protection The social economic, legal, and ethical responsibilities that McDonald’s has towards its consumers in the Liebeck case, and cases similar to it, pretty much go hand in hand. McDonald’s should be responsible legally for the harm that it caused, for the hospital bills, and just for the sake of good will. McDonald’s messed up and should have at least apologized for its mistakes instead of blaming the consumer for everything that happened. “More than 700(!) claims had been made against McDonald’s, and many of the victims had suffered third-degree burns similar to Mrs. Liebeck’s. Yet the company had refused to change its policy” (www.slipandsue.com, 2010, para. 8). When getting as many complaints as seven hundred in total between the ten years of nineteen eighty two and nineteen ninety two (www.knowledgerush.com, 2009, para. 4), prior to this case it is easy to ignore the isolated situations when you consider the fact the $2.7 million initially awarded to Liebeck after the court case. “This was the equivalent of just two days of coffee sales, McDonalds Corporation generates revenues...
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...liability. A manager is constantly challenged with balancing responsibilities to the shareholders to make a profitable business and protecting the best interests of the employees and customers or end users of their products/services. This is especially challenging in large geographically diverse organizations, such as a McDonalds or car dealerships, where having statistical descriptive data, clear understanding of the policies, up and down the organization, and ensuring no significant information is being omitted is critical to running the company and avoiding lawsuits. A manager must be able to effectively analyze and evaluate data to make informed, intelligent decisions in many different situations. They need to be able to evaluate the reasons, without biases, in order to make sound decisions for the organization, as well as their employees and customers. There are lessons learned from the cases reviewed this week for managers related to critical thinking based on the two cases that are the focus of this paper, Liebeck v. McDonald’s and Pearson v. Custom Cleaners. . Liebeck vs. McDonalds As a very controversial tort case, Liebeck vs. McDonalds was a closely followed by the news and legal community. This case has been used as an example demonstrating a need for tort reform in the legal system. It started out seeming a simple frivolous lawsuit that was going to waste the court’s and jury’s time. It seemed clear that Liebeck was negligent in not exercising caution...
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...McDonalds Business 188 Case Analysis Group Members: Meghan Dilawari Tammy Huynh Matt Salisbury Isabel Soboszek Farhan Latif Meghan Dilawari Tammy Huynh Matt Salisbury Isabel Soboszek Farhan Latif McDonalds McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People Vision and People Promise.” “Quality, Service, Cleanliness and Value (Q.S.C. and V) also became the company’s motto. (http://www.mcdonalds.com)[1] The company’s first McDonald store was built in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California. Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its success. It wasn’t long before the 100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.”[2] McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant,...
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...connected to the electricity provider. Most countries, South Africa included now make use of prepaid electricity and meters to provide electricity to their citizens as it makes it easier for consumers to monitor and control their consumption. Prepaid electric power metering was introduced in South Africa as a small scale engineering project in the 1980’s (McDonald, 2012). However, its use dates back to 1913 when it was used in mining settlements. In the 1990’s prepaid electricity was introduced in Soweto townships like Thembisa as a way of improving electricity infrastructure in the townships. One positive effect of this technological advancement was a move away from the financial problems caused by the use of post-paid electricity. Post-paid electricity was costly, as it was based on meters that recorded consumption (McDonald, 2012). The reading of these meters, distribution of bills, dealing with arrears and disconnecting consumers who failed to pay proved to be very difficult. Residents in Thembisa first responded by destroying prepaid meters, while the Thembisa council responded by protecting the prepaid meter infrastructure. Name: Magugu Nyathi Student Number: 45337322 Assignment 02: Semester 01 Due Date: 25 April 2014 Unique Number: 837898 This protection involved putting a metal meter cover and an alarm linked to the municipality if there is tempering of...
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...barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion.McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries. STRATEGIES McDonald’s utilized an intense, rapid expansion into foreign countries through three primary methods, franchising, company owned restaurants, and joint ventures. With the majority of international restaurants stemming from franchising agreements, McDonald’s management relied on this method to aid in the acceptance of a new style of eating into unfamiliar markets. With minimal risk and maximum gains, franchising continues to contribute heavily to McDonald’s international success. 1. Mcdonalds Plan to Win strategy which believes in maximising...
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