Productivity is looking at output/inputs to see how efficiently the production
process is working. McDonalds is very good at reviewing all parts of the
process and finding ways to make it more efficient so they can cut costs of
production, so increase profit and control safety and quality management.
They know down to the second how long each stage should take, for instance
their time management in production for cooking; the beef patties are cooked
for just the right amount of time – that's a minimum of 36 seconds for a regular
patty and a minimum of 101 seconds for a Quarter Pounder patof -1.98%, this was about the same time as the global recession started, so
demand for takeaways decreased because this is a luxury good and when
income decreases consumers focus on buying only the necessities like
The producer will have taken a loss in revenue and most likely profit as well
because they may have purchased more capital goods or hired more staff to
meet the increased production needs of the previous year. This decreased
revenue and profit also has negative consequences to society as well
because workers may be laid off which reduces their income, the NZ suppliers
who rely on McDonalds demand for their goods receive less revenue as well,
and the government will receive less tax revenue from all these firms and
households and also will have to pay out more in benefits to those
unemployed.ASK 3
Commercial Goals
McDonalds goals are profit maximisation, sales maximisation, increased
market share of the takeaways industry, and business expansion through
selling more franchises, setting up more McDonalds outlets throughout New
Non-Commercial Goals
Some of the non-commercial goals are corporate responsibility (purchasing
from mainly NZ suppliers). One of the positive benefits of McDonalds
purchasing off NZ suppliers is the income this provides for other businesses in
the NZ economy...