The Companies Limited By Guarantees Business Essay

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When you're reading this assignment you can understand mission, visions and key objectives are how to value in an organization. The main objective of this report is to select organization which exist in the environment and analyze the values and key objectives of the organization and influence of the stakeholders. And the responsibilities of an organization and strategies practiced the organization to meet them. Also the competitive strategies implemented to gain competitive advantage over competitors and role of the competition and regulatory body discussed as well.

This report also provides suggestion and new ideas which could be practiced by organization and this report identifies the economic system how to effecting to the organization and social welfare and industrial policies are how to effecting to the organization. And this report the competitors are how to effect in your organization


I hope how has read this assignment that person will get more and good understand about business environment.

Table of contents


This report research about business environment. According to that

Company Introduction

The McDonald's concept was introduced in San Bernardino, California by Dick and Mac McDonald of Manchester, New Hampshire. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald brothers in the concept and went on to found McDonald's Corporation.

In 1937, Patrick McDonald opened "The Airdrome" restaurant on Huntington Drive (Route 66) near the Monrovia Airport in Monrovia, California. In 1940, his two sons, Maurice and Richard ("Mac" and "Dick"), moved the entire building 40 miles (64 km) east, to West 14th and 1398 North E Streets in San Bernardino, California. The restaurant was renamed "McDonald's Famous Barbeque" and served over forty barbequed items.

Today McDonald' franchise exceeds 30,000 restaurant globally and serves over 50 million people in more than 121 countries each day.

The mission statement of McDonald's fast food restaurants around the world is not much different from any restaurant chain.

Task 1.1

Explain the different types of organization that exits in the market.

Sole trader ship

This type of business is unincorporated. Business is owned and run by one individual with no distinction between the business and you, the owner. The capital and decisions are his own one. The ability of this business to be carried on without the necessity for adherence to rules. This business have many advantages as well as disadvantages those are enjoy the profits singly but sometime business going to lost that also he manage singly. Ability to take prompt decisions other disadvantage is the possibility of evading tax, as accounting and auditing are not compulsory then other big disadvantage is unlimited liability that's mean if the business is at a loss the owner of the business has the business has to sell off his personal assets in order to incur the cost. Sole trader business can be open and close down at any moment at the wish of the owner.


A partnership is the relationship existing between two or more persons who join to carry on a business. Partnership ordinance of 1890 accordingly. In a partnership each partner shares equal responsibility for the company's profits and losses, and its debts and liabilities. This business has many advantages as well as disadvantages those are main advantage this invest more finances because more partner as well as profit also share with partner's other disadvantages inability to assign partnership rights to another without the consent of other partners. A partnership may gain the advantage. If the business partners are having good skills plus more people would bring more ideas into the business but there are also disadvantages of partnership agreement.

Incorporated companies

Limited companies

This type of company that offers limited liability or legal protection for its shareholders but that places certain restrictions on its ownership. In here limited liability means that the investors can only lose the money they have invested and no more. If the company fails owner to finance the company and set up such a business, knowing that they can only lose what they put in. Advantages of limited companies are owner have freedom about liability, profit also divided among the members, able to invest more capital compared than a partnership. As well as disadvantages also have those financial information must be made available for everyone,. These are disadvantages in limited companies

Companies limited by guarantees

Companies limited by guarantee are private limited companies where the liability of the members is limited. A guarantee company has member that is countered instead of shareholders . Limitation of liability takes the form of a guarantee from its members to pay a nominal amount in the event of the company being wound up while they are a member or within one year of their stopping to be a member. This type companies to safety to members

Unlimited companies

This type of company every member is responsible the liabilities in the organization. This type of companies can't sell their share to public. Here advantage of this type of organization is that the company does not have to provide information such as annual performance in finance to report registrars.

Offshore companies

These types of companies are organization are built in an overseas country. In an offshore company that charged is very low. Offshore companies are easy to operate but very confidential when in comes to company accounts and income and expenditure

Foreign companies

This types of companies are organiztions that to business in one and country and registered to do business and another country as well. This type of companies should follow another country low and that country tax policy.

Task 1.2

Briefly explain about stakeholders of the organization and their responsibilities

A stakeholder is any group within or outside the organization that has a stake in the organization's performance. Each stakeholder has a different criterion of responsiveness because it has a different interest in the organization.

A stakeholder includes employees, customers, owners, managers, suppliers and investors. Investors, owners and suppliers' interests are served by managerial efficiency, that is, the use of resources to achieve profits. Employees expect work satisfaction pay and good supervision. Customers are concerned with decisions about the quality and availability of goods and services

Stakeholders can divide two types those are internal and external stakeholders. This diagram explains about that

Customers: The most immediate, influential and targeted stakeholder for any organization is the cutover or the consumer of its goods or services. There is an obvious controversy as to whether the customer is right in the goods and services they choose to buy from a company. It is true that sometimes customers do not recognize the long-term harmful effects of their choices such as in the case of tobacco, milk products for babies and expensive stereo equipment in the case when safety equipment are relegated to optional extras. However, it is equally true that there is no ethical basis to judge whether the provision of such goods and services is right or wrong.

Employees: Social responsibility of the firms towards their employees extend beyond the terms and condition of the contract to include justice in treatment; democratic functioning of the organization; training in new skills and technologies; effective personnel and employment policies and practices; and the provision of social and leisure facilitates.

Local communities: Firms often try to be seen as friendly to their neighborhood. Although this might be considered a genuine concern or just an attempt to buy favor. In both cases, one might argue, the organizations will adopt a proactive tendency to community rather than to wait for long and be reactive.

Government: Governments depend on the provide businesses to get a sizable portion of revues through taxation. In addition, governments also depend on the business organizations to take greater roles in society and to achieve several economic and social objectives such as the regional economic development, training and limitations on the sales of tobacco, for instance.

Suppliers: Taking account of the needs of suppliers are certainly a combination of shrewd business sense and good ethical practice.

Task 1.3

Identify the purpose of the organization (mission, vision, aims, goals, values, market share and growth)


McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience - People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience


McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

Goals and Objectives

McDonald's Vision to be the world's best quick service restaurant experience.

McDonald's is committed to maintaining and developing the best food products in the quick service restaurant market.

In order to deliver this, the company has made a number of commitments to food safety and nutrition.

Let the quick service Restaurant market by a program of site development and profitable restaurant openings, and by attracting new customers. Increasing sales through promotions will enable them to continue their program of expansion.

McDonalds has an objective to Continual enhance and improve their menu. This will better satisfy their customers and give customers more reason to visit. Many ideas for new items on the menu come from the franchisees responding to customer demand. Consumer tastes change over time and McDonalds has to respond to these changes.


McDonald's mission is to be our customers' favorites place and way to eat - with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.

The following core values guide our actions as we strive to achieve our mission

We place the customer experience at the core of all we do

We are committed to our people

We believe in the McDonald's System

We operate our business ethically

We give back to our communities

We strive continually to improve

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Task 2.1

Explain different types of economic system and characteristics with examples.

Types of economic systems

There are four main different types of economic systems. These four different types of economic system have evolved as different societies have placed different emphasis on different goals and priorities in their effort.

Traditional Economy

Traditional economy is a catch-all term normally used to describe economic systems that pertain in societies with extensive subsistence agriculture. The term may also be used for any economy that falls outside of popular notions of market and command economies. The term tends to be used by members of industrialized societies to describe societies deemed "underdeveloped," and often appears alongside such controversial and disparaging terms as "primitive. For this reason, and because the term is vague and unspecific, the term sees little use among scholars in the fields of economics or anthropology, predominating instead in popular discourse. Attempts to give the term a more specific meaning present the "traditional economy" as an economy based on custom and tradition/command. The decisions are based on tradition of the community.




Market economy

A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Command Economic. In the real world, market economies do not exist in pure form, as societies and governments regulate them to varying degrees rather than allow full self-regulation by market forces. The term free-market economy is sometimes used synonymously with market economy, but, as Ludwig Erhard once pointed out, this does not preclude an economy from having social attributes opposed to a laissez-faire system.


The use


most of EU countries

Command economy

A planned economy is an economic system in which the state directs the economy. It is an economic system in which the central government controls industry such that it makes major decisions regarding the production and distribution of goods and services. Its most extensive form is referred to as a command economy, centrally planned economy, or command and control economy. In such economies, central economic planning by the state or government controls all major sectors of the economy and formulates all decisions about the use of resources and the distribution of output. Planners decide what should be produced and direct lower-level enterprises to produce those goods in accordance with national and social objectives. Planned economies are in contrast to unplanned economies.




Mixed Economy

A mixed economy is an economy that includes a variety of private and public enterprise, reflecting the characteristics of both market economies and planned economies. Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety of government-sponsored aspects. The underlying premise of the mixed economy is that the means of production are mainly under private ownership; that markets remain the dominant form of economic coordination; and that profit-seeking enterprises and the accumulation of capital would remain the fundamental driving force behind economic activity. There is not one single definition of a mixed economy, but the definitions always involve a degree of private economic freedom mixed with a degree of government regulation of markets. The relative strength or weakness of each component in the national economy can vary greatly between countries.


The use


Task 2.2

What is fiscal and monetary policy (explain with fiscal and monetary policy tools)

Fiscal policy

Fiscal policy relates to government spending and tax collection. For example when demand is low the government can increase the expenditure for many years the government has tended to raise taxes to fund more and more social and defense programs. Revenue collection to influence the economy.fiscal policy is based on the the theories of economist John mayanard ketanes he propounded that a government can strmulade macro economical productivity by increasing or decreasing government spending. Basically fiscal policy making by government. Fiscal policy tools are the tax amount of government spending.

Usually fiscal policies are two types its depends on government conduct. Those are

Expansionary fiscal policy

Contractionary fiscal policy

Monetary policy

This policy based on money supply and interest rates. These two factors are related to each other. The central bank is making this policy. This type of policy will manipulate the money supply to achieve results like exchange rates with other currencies unemployment inflation and economic growth. This policy tools are

Open market operation - basically open market operation system is government bonds buying and selling system. Central bank buying and selling bonds to other commercial banks and public

Interest Rates- interest rate change by FED on the loans granted to commercial banks. The cause the banks increase the interest rate for loans they granted to public also that's why public want take loans much the before

Currency peg-Weak economies can decide to peg their currency against a stronger currency. This tool is usually used in cases of runaway inflation when other means to control it are not working.

Task 2.3

How fiscal and monetary policy effect the business that you choose above

Task 4.1

What are the pros and cons your selected company faced because of the international trade.

International trade

Advantages of International trade

The positive impact that of McDonalds in international trade because mcdonalds is a world wide company.other thing fast food have good demand in global wise. Especially for organization like mcdonalds good demand in international trade. Mcdonalds have many adventages in international trade those are company make world wise, make good profit, trade is always balanced fairly that's mean if one country company goes to lose other country company make good.other thing is company can faster growth. If the company have an international trade company will get new innovative ideas

Disadvantages of International trade

Other hand international trade have some

Task 4.2

What are the barriers opportunities that UK businesses faced when they entering to emerging markets

UK businesses and new emerging markets


Oligopolies frequently maintain their position of dominance in a market might because it is too costly or difficult for potential rivals to enter the market. Those are the barriers

In UK market organization invest a lot of money for market research. It's very big cost

In UK business principles different between other country before the entry companies consider about that

The interferen of too many 3rd party members would cause unnecessary problems

Predatory pricing that is A firm may deliberately lower price to try to force rivals out of the market.


Going into new markets would be mean revenues to the businesses

Some country's government encourage foreign investment and in that process some government also reduce restriction on the company that is going to invent

Establishing operations new market would give the company a good image internationally.

Task 4.3

How the European union current situation effect on the UK business

Current Euro economic crisis and effect on UK businesses

The Europ economic crisis or rather known as the Euro debt crests are the term known as Europ's struggle to pay. Its overall debt that it had accumulded for years five of the countries that are Portugal, Greece, Ireland , Italy and Spain have failed to generate enough economic growth in order to pay back the bondholders as stated in a given data. Since there was slow economic growth in Greece so does the government tax revenue.

Greece debt was so large that it exceeded the countries entire economic worth. Also the other nations mentioned above were affected due to the use of the Euro as a common currency. UK itself has a debt crisis but not larger than affected EU nations. The UK businesses based in other EU countries especially Greece have felt the pinch loss in the businesses.