A stakeholder is any person or organization that is affected by the business or affects the business. A stake is an interest by someone either in or outside the business and can include ownership interests, legal obligations and moral rights. Internal stakeholders are individuals or groups who are directly financially involved in the business so want the business to do well. External stakeholders are people or groups outside the business who can be directly affected by the business. External stakeholders are normally the customer. One of McDonald’s stakeholders is their own employees, all their employees from part-time workers to business managers are stakeholders of the business.
Mcondonalds have many suppliers, these include Lopez foods, Keystones foods, Kenny Longaker, Franks Martinez, Jenn Bunger, 100 Circle Farms, Mike Dietrich, Dirk Giannini and Gavina Gourment Coffee. Lopez foods is McDonald’s beef supplies, Keystones foods is McDonalds’s meat and fish suppliers, Kenny Longark is another fish supplier for McDonalds. Frank Martinez is a potato supplier for McDonald’s as well as Jenn Buger and 100 Circle Farms. Mike Dietrich is an apple supplier for McDonalds, Dirk Giannini is a lettuce supplier for McDonald’s and Gavina Gourment Coffee is a coffee bean supplier for McDonalds, all of these supplies are external suppliers.
McDonalds leaders help them with new franchise building and equipment loans, theses leaders include Bank Of America, Chase McDonald’s finance and commerce bank. McDonalds and these lenders have agreement on how much is lent to McDonalds and what has to paid back, with business loads McDonalds have fixed rate which they have to pay, these rates include a 3 year fixed rate, 5 year fixed rate and a 7 year fixed rate also a floating rate. These lenders also give out NEP loans with a 7 year fixed rate, 10 year fixed rate and floating rate which McDonalds have to pay lenders back after the time period. These lenders are external and want the company to do well because if they go into liquidation then McDonald’s won’t be able to pay the lenders their money back and these lenders will lose money, also if McDonalds can’t afford the loans these businesses such as the Bank Of America lose money. The lenders of McDonalds influence them to uses more money by offering higher loans so they can charge more when they need to pay back.
McDonald’s competition are external stakeholder because they have interest in how well or bad the business does. They want McDonald’s to do bad so they can take their customers and consumers. Their competition is external and are mainly businesses who compete in similar industries such as fast food, competitors include KFC, Burger King, Subway and Wendy’s. These business are all stakeholders of McDonalds who are competition. If these businesses come up with new products that gain them more customers then McDonald’s will copy and change what they are doing to follow a trend that their competitors have made and try to do better to get more customers than their competition. UNICEF’s competitions are external competitors, their competition includes save the children, action for children, Barnardo’s and Whizz kidz. One way of which the competition will influence UNICEF is by finding a good way to gain donations or helping children with little amounts of donations. They will influence UNICEF to try and improve their current methods to not lose their place in the market and to carry on being affective to the people who they help.
Relationships and communication
McDonald’s and their business suppliers (who are their external shareholders) such as Dirk Giannini and Gavina Gourment Coffee is good and they have to have weekly contact just like every other one of McDonald’s suppliers as McDonalds make weekly orders.
A bad relationship they had with their suppliers is with their chicken suppliers which are, Keystone fields, the reason for a problem occurring is because the makers of the anti-McDonalds campaign called ‘See What We Are Made Of’ discovered a couple of McDonald’s ingredients secretes, one being how the farm kills the chicken. According to the campaign the farm uses an old-fashioned way to kill chickens by breaking their wings and having many burnt to death in a tank, the campaigners have also called out McDonalds for the un-humane treatment of chickens. A good relationship McDonalds have with their suppliers is Lopez Foods, the reasoning behind the good relationship between the two is due to Lopez Foods good treatment of cows, which they uses to provide McDonald’s with beef. They give their cows the correct food and high quality food, also they have a good farm with good facilities and equipment. McDonalds have stated they have been working with Lopez Farms for over 30 years and still going strong indicating that the relationship is strong and positive.
UNICEF have good communication with their shareholders. These include their volunteers, they have good communication are good as the relationship is kept under conditions which include NCC who provide funds for UNICEF to support children in China and Timor-Leste which helps to provide safe water, sanitation and knowledge in hygiene. A strategy that UNICEF use for successful relationships with stakeholders is using ‘Partnerships for shared success’, they uses it to promote healthy lives, providing quality education, prevent children abuse, exploitation and violence which was agreed at the UN special session on children. UNICEF works with non-governmental institution, regional, national and community level. UNICEF has had an agreement with one of their biggest shareholders, The United Nations Convention on the Rights of the Child (UNCRC), is an international human rights that allows all people under 17 years old a set of extra human rights. One McDonald’s biggest lenders are Bank of America, one of their leading specialist (Byron McDonald) has direct relations to the McDonald’s owners increasing the amount of communication between the two businesses improving the business relationship. The relationship between McDonald’s and one of their competitors (KFC) is a negative e one because KFC tries to take McDonalds customers and are trying to be the better restaurant in the sector of which both McDonald’s and KFC compete in.
McDonalds have had a previous conflict with a stakeholder is with their employees. This is because employees want maximum wages, so want pay-raises, however the McDonald’s owners want maximum profits sol want to keep all costs as low as possible so are not willing to increase workers ages, also they didn’t like the conditions of which they worked in, so they wanted change but they didn’t get anything back from the owners. This causes a conflict between a shareholder (workers) and the business owners. Another conflict of with McDonald’s have had with a stakeholder is with a stakeholder is the uses of no fair trade products, this includes food and beverage, so this limited their fair trade terms. They need to make improvements needs to be made in order to increase the amount of fair trade to increase their ethical morality and company reputation. A previous conflict between UNICEF and a stakeholder was when they had conflict with some of their volunteers due to their safety being harmed, they had young volunteers who was meant to be in Europe finishing of their studies, but was instead a LEDC and yet to graduate after studying for over 5 years and finally wanted out.
Trade union are group of employees who join together in order to improve the quality of their current employment.
One public concern of which the public has with McDonalds is during the time of the UK horse meat scandal, many customers and consumers where concerned whether they were being told the truth about the meat that they was eating. Many big stores such as Tesco, Burger King and Asda. Another public concern which brought about regarding McDonald’s is obesity. One of these public concerns includes happy meals promoting happy meals, burgers and fries before healthier meals. TV adverts from McDonald’s more healthy Happy Meal deals fail to help make children to choose food that is better for them and instead promotes unhealthy fast foods that are not good for the young consumers. PETA (People for the Ethical Treatment of Animals) a stakeholder of McDonald’s had conflict with the business for nine years due to the treatment of chickens from the fast food chain. PETA claimed McDonald’s would hang chickens upside down while fully conscious, then put them in an electrically-charged tub of water to knock them out before they were killed.
Breakdown in trust between business and stakeholders
One breakdown between McDonalds and their stakeholders is with investors and workers who placed pressure on the franchise back in 2015. Workers started a protest outside one of the annual meeting outside the McDonald’s headquarters which many of their investors pasted and took pictures of the protesters outside and added concern to the stakeholders trust in McDonalds. Also at the meeting large institutional investors made letters for McDonald’s to amend the way investors can decide who sits on the company’s board through a movement called “proxy access” public. These investors included New York City Pension Funds and California Public Employees’ Retirement System, who control £674 billion in resourced owned by the business. This shows a breakdown in the relationship between McDonald’s and two of their external stakeholders. This protest was an attempt for investors to communicate their concerns with McDonald’s.
There has been no break down in relationship between UNICEF and stakeholders but the relationship has improved for example the relation between UNICEF and the local community strengthened because a local community in Syria were happy with the work UNICEF have done in their area and that the positive changes to their life it has made. They have improved the general hygiene, education and gave the basic needs to the people of Syria.
Customer repeat customs
One way in which McDonald’s gains repeat purchase is by having low prices, this make their food applying to young children with not much money, adults with a low wage and to anyone who wants a cheap meal. Another way in which McDonald’s get loads of repeat purchase is by making their food quick to serve and eat. This is good for people who are on short lunch break and need to be quick or people who want hot food quickly and don’t want to wait long for it to be served. A third way McDonald’s gain repeat purchase is through their brand image, they have been a well-known brand for many years and their iconic ‘m’ logo is very easy to remember.
One way of which UNICEF gains repeat customs is by letting some donators deicide were their donations go, this means donators feel as if they are making change to a cause they want to and makes them more likely to donate to the charity organisation again. Another way how UNICEF gets repeated purchase from their donators is by showing the donator some of the stuff there money does for people and what they help to run, for example in 2018 a reward was given out called “A Special Tour” and was formed to highlight talented, disabled artists around Argentina giving them a life changing experience in the hands of the donators.