BACHELOR OF COMMUNICATION WITH HONOURS

SEMESTER 2 / 2020

MPU3223_V2

ENTREPRENEURSHIP

MATRICULATION NO : 900714085784001

IDENTITY CARD NO. : 900714-08-5784

TELEPHONE NO. : 019-5796311

E-MAIL : orange1990@oum.edu.my

LEARNING CENTRE : PETALING JAYA LEARNING CENTRE

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 1.0 Introduction

Fast food is food that is ready to be processed and can be prepared in a relatively a short
period of time. Fast food is very synonymous in today’s society lifestyle especially for those
younger generation due to current hectic lifestyle. With just one click or call we are able to
receive the food right in front if the doorstep and able to enjoy the meals with less than
30minutes. In Malaysia we have lots of global fast-food franchises such as KFC, McDonalds,
Subway, Pizza Hut and many others. One most famous that I would like to discuss about is
MCDonalds in short McD. McDonald's were founded by Maurice and Richard McDonald's
(brothers) in 1940. Ray Kroc joined the cooperation as a franchise agent in 1955. In 1961, Kroc
acquired the McDonald Brothers' shareholding and begun the global reach of the enterprise. The
company became a sign of globalization and the growth of American living. There are now
38,855 restaurants and more than 210,000 staff by the end of 2018. McDonald's restaurants can
be found across the world in 120 countries and regions. They serve 68 million clients each day
and have 2,770 company outlets and 35,085 franchised outlets. In June 2018, its corporate
headquarters moved to Chicago, Illinois. The first U.S. trademark McDonald's filed on the 4th
May 1961, with its definition of "Drive-In Restaurant Facilities," which is still being renewed, is
the "McDonalds" The Golden Arches logo was not used until 18 November 1968, when a U.s.
trademark was favored. This company lends its establishment on 15 April 1955 to franchisee
Ray Kro. In reality, this was the 9th McDonald's restaurant in its entirety, but in 1984 this place
was demolished and reconstructed. In 1971, the San Bernardino restaurant was closed and sold in
1998 to the Juan Pollo chain. Malaysia first McDonald’s restaurant opened in April 1982 in Jalan
Bukit Bintang, Kuala Lumpur which is also known as “Mekdi” for Malaysian. For last year’s
(2019) Malaysia Day, we have selected our iconic restaurant to show this localized surname
proudly. This year is 38th year McDonalds in Malaysia which approximately 270 branches
nationwide.

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 Figure 1.1 McDonalds Logo

McDonald's first restaurant in malaysia opened at

1982 (April) Jalan Bukit bintang, Kuala Lumpur
1987 (November) Ayam Goreng McD was first introduced

McDonald’s opened its first Drive-Thru restaurant

1988 (December) at Jalan Pahang (Titiwangsa).
Ronald McDonald House Charities Malaysia
1990 (February) (RMHC Malaysia) was established.
1993 (January) McDonald’s first franchised restaurant was opened

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 in Sibu.

The Prosperity Burger was first created and

1994 launched in Malaysia (1994)
1994 (March) McDonald’s Delivery Service was introduced
McDonald’s is the first Quick Service Restaurant in
Malaysia to obtain the Halal Certification from
1995 (February) JAKIM.

RMHC™ opened its first Ronald McDonald House

1999 (June) in Malaysia.

A new brand promise, “We’re out to make you

smile” was put forward in celebration of the new
1999 (July) millennium
McDonald’s is the first Quick Service Restaurant to
form an alliance with an oil company when it
2001 (January) opened at Mobil, Seremban Highway.

New local menu, Bubur Ayam McDTM , was

2002 (July) launched nationwide.
2003 (September) Launch of the global “i’m lovin’ it” campaign.
The annual Olympic Day Run was introduced to
mark McDonald’s worldwide partnership with the
2004 (July) International Olympic Council
McDonald’s celebrates its 25th Anniversary in
2007 (April) Malaysia.
McDonald’s launched 24-hour service at over 70
2007 (June) restaurants nationwide.
Recognition by the Malaysia Book of Records for
the Largest Participation for a Drive-Thru
2008 Challenge.
First McCafé in Malaysia opened at McDonald’s®
2012 (June) Kota Damansara.

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 National Breakfast Day held for the first time in
Malaysia with more than 2000,000 Egg McMuffins
2012 (Nov) given away for free.
McDonald’s received the Aon Hewitt Best
Employers in Malaysia award for the third time in a
2013 row.

McDonald’s won Gold at the Putra Brand Awards

2014 for the 5th year in a row.
McDonald’s is now available in every state in
Malaysia with the opening of its first restaurant in
2014 Perlis.
McDonald’s introduces Lazeez (Chicken Foldover)
2015 and Mashwi (Beef Foldover) for Ramadan.
2016 Cashless facility now available at McDonald’s.
2016 (July) McDonald’s Delivery Service goes 100% online.

Saudi Arabia’s Lionhorn Pte Ltd becomes the

owner of McDonald’s Malaysia through the
McDonald’s Developmental Licensee franchising
2016 (December) structure.
McDonald’s marks its 35th Anniversary in
2017 (April) Malaysia.

Figure 1.2 McDonald’s History

2.0 MACRO ENVIRONMENT ELEMENTS

An entrepreneur is someone who sees potential in the market and starts a business by
taking financial risk in the hope of making a profit. You are not only looking at the world before
the founding of the company, but also during the growth process of the company. Business
development can be described as an operational improvement of the business. According to the

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MPU3223 entrepreneurship studies, the internal and external context can be divided into two
parts in this market context.

This task focuses more on the external environment's macro environmental aspect. The
external environment is vast and cannot be controlled by the organization of the company.
However, it has a great impact on the activities of the company in order to ensure the business
continuation, the organization must adapt to this element. The elements in the external
environment are below (refer figure 2)

Politic &
Legislation

Macro
Socio Cultural Environment Economy
Element

Technology

Figure 2 Macro Environment Element

Politic and legalistic

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 The political environment that involves laws, government agencies and power groups
mean that every company is restricted while different interests compete for attention and
resources. At some point, entrepreneurs will want to use their political influence. Contractors and
developers use their capabilities to carry out large corporate projects, for example, especially
government projects such as infrastructure, public buildings or housing projects, road projects,
etc.

The flow of corporate marketing is greatly influenced by the event in the political climate
as it constrains the companies and people within an organization. Nowadays the organization is
more exposed to the pressures of the legal climate due to the uncertainty and direct impact of the
law. Business-people therefore need to know exactly which company laws are perfectly
appropriate and how to limit the growth of the company. For example, the developer wants to
understand environmental safety laws and regulations to find legally compliant solutions that
will ensure their project runs smoothly and anticipate future problems with the government. or
with the company.

Economy

The economic climate is highly dependent on the success and decline of a brand-new
business. The economic factor relates to the role and flow of the national economy, in which all
goods and services are delivered, transferred, sold, and consumed. For example, a company does
not begin to export or expand one branch to another location or region without knowing how
much people want to invest or offer services.

Entrepreneurs must observe the financial health of companies and be prepared to analyze
certain variables related to projections, such as the balance of payments, fluctuating conditions,
the distribution of household income and eventual unemployment, and financial and monetary
plans. of the government. For example, the unemployment rate on gross national product (GNP)
and its effect on the country's net export capital account. Furthermore, volatility in oil prices as a
result of lost investment puts any industry at risk.

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Technology

The knowledge area that covers subject matter, course, technology, advancement,
invention, innovation, or method. technology is that. Technological evaluation shall require
review and supervision from the fundamental research point of view of product creation or
service development and marketing. This evaluation can lead to new technologies and thereby
create alternative products and market opportunities. Every company today compete in
developing the technology of wireless networking, smartphones, tables, and cameras, since those
items are the ones that are commonly requested by individuals of all ages.

In today’s era, with Covid-19 pandemic and as per our Prime Minister, Tan Sri Muhiddyin
Yassin encourage working Malaysian to work from home, as such technology play the biggest
role. Nevertheless, developers should be able to continue this technological development as the
latest technology will replace the old or disadvantaged. If another product or service is outdated,
the business is running out of new products, buyers, and market disruption. For example,
previously NEWS mart application can only be used to top up credit, view on promotion and for
point collection. However currently there is option for deliver and it is supported by GRAB.

Socio Cultural

This socio-cultural element is supported by two main factors: demographics and cultural
trends. Demographic change refers to a population survey that identifies size, concentration,
gender, age, occupation, and other statistics. People are important because they are the main
reason for the survival of the business or organization and the driving force behind the
development of the industry. Changing demographic trends can be both a benefit and a risk for
traders. For example, population movement indicates the need to organize marketing strategies.

Cultural trends related to the conditions and the ways in which people conduct their
lifestyles. The main beliefs are social and cultural factors, influences related to the interests of
people, desires, and actions of society. It is a way to identify market opportunities for

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entrepreneurs. In addition, there is a need to find out the impact of goods and services on the
organization or the potential customers or customers on society. For example, understanding the
local culture and generalizing it to the international culture to ensure the business’s global market
potential.

3.0 MACRO ENVIRONMENT ELEMENTS ON MCDONALS

The gains achieved by McDonalds cannot be exempted from all macro-environmental

components. This segment encourages the opportunities and challenges that they can conquer in
the confrontation with the macro environmental components.

Politic and legalistic

There are several regulations and procedures McDonalds can follow as an approved fast-
food operator. In Malaysia, for example, McDonald’s bound by the Syariat law which states that
any food served must be Halal and that Muslim consumers are prioritized by the Halal
certification. Officially Malaysia is an Islamic country, most of which are Muslim. To secure
brand credibility and customer trust, McDonalds should ensure that all materials and procedures
are or should be followed.

The chain was awarded with a Halal ('clean and acceptable') certificate, showing the
complete absence of porks' goods (the Journal). 'McDonalds in Malaysia underwent strict review
by Muslim clerics to ensure ritual cleaning.' Other legal provisions to be met by the business
owner as specified in the laws include operating times, business registration, taxation
requirements, labour and employment law, and certification of quality and atmosphere (such as
the ISO) in which the outlet is accredited. It is necessary to make the legal requirement so the
criminals are fined or because their companies could be catastrophic.

Economy

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 Due to current pandemic, Malaysia's economic situation is currently slowing as household
income and business activities decelerates. According economic trends have drastically altered in
2020, after the unexpected spread of COVID-19, which has since grown into a global health
crisis, according to the 2019 Economic Monetary Report, by Nor Shamsial Yunus of 3 April
2020. Malaysia is expected to grow its GDP between -2.0 and 0.5 percent by 2020 under this
extremely demanding global economic forecast (2019: 4.3 percent). With the current economic
condition, McDonalds earning fall 17% as pandemic leads to shorter operation hour and
plunging of sales. Instead of local market supply, McDonalds import most of its goods, including
beef and potatoes. Any currency upturn, in particular the dollar, would affect its buying rate.

McDonalds also liable to the government's sales tax laws that they receive from activities
and other taxes including entertainment and restaurant fees. There will be different size or kind
of tax applicable in each country and if McDonalds wishes to continue its activities, it can follow
the rules. The country's economic status and growth is also a major predictor for the market for
McDonald's goods.

Technology

Technology played an important part in the growth of businesses in current era. With
reference to competitor creativity and technological convergence, McDonalds adapts to
technology uses to bring its fast food to its customers. Using telecommunication technologies is
a great way to launch a brick-and-mortar-different online service.

Implementing technologies improves management efficiency and long-term cost savings.

This adds to consumer pleasure as cost savings lead to price increases or discounts that favor
consumers. In current pandemic, McDonalds still able to secure the business as they already have
online food order platform. Even during MCO or stay home period, fast food lover will still be
able to order without the need to the counter to purchase. This helps in saving consumers time
and budget.

Socio Cultural

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 Malaysia's economic growth is one of the reasons for the change in Malaysia's lifestyle.
Although more people will eat financially in expensive restaurants like fast food restaurants, they
have high expectations. If they pay more for their menus now, people need better services.
Young urban consumers want amenities in their lives such as credit card payments, wireless
internet access, a comfortable environment, and other things to eat and drink in their lives.

Therefore, it is important to consider these requirements. There is no difference between

cultural sales and product sales in one country, but cultural awareness must be maintained in
different countries. For example, Muslim countries do not eat pork, Asians like to eat rice, and
American menus are large, including beer. So far, McDonald's has made successful attempts to
find menus tailored to local preferences, but it can constantly research and know the local
community to improve its understanding and design.

4.0 Recommendations for Improvement

Based on above explanation, it clearly shows that macro environment elements in

entrepreneurship brings a great impact in the development of McDonalds Malaysia. Besides that,
McDonalds should also look for new strategies and alternatives to further enhance their brand in
the market and to be the company that close to the heart of Malaysian.

First, McDonalds should have its customer service. Customer service is important in a
business because it retains customers and gets the most value from them. By providing top-notch
customer service, businesses reclaim customer acquisition costs and cultivate a loyal person who
refers customers by generating positive words of mouth of your business and this cannot be
replace by technology. Based on industry buzz survey, 97% of customer will share their
unpleasant experience and how excellent customer experience they had with others.

Second, shorten their delivery waiting time. As McDonalds loyal customer, I would really
feel waiting for 45minutes to an hour or more is an exceptionally long wait especially after a
tiring day. McDonalds should hire more rider or even try to have specific outlet only for

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delivery service. As of now most outlet will need to juggle between online order, drive thru and
walked in customer. With this the workers can focus more on delivery order and able to manage
the flow properly.

Thirdly, is having healthier option menu. These days, lots of customer are health
conscious. They want health and balance diet food. Example instead of having fried chicken,
change it to grill chicken, grill burger with whole meals bread, fruits or salad are serve along
with meal set and many other. On top of that menu can also be organic based food especially for
happy meals menu. This can be eye catching menu for busy parents who wants healthy food for
their children.

Fourth is joining the local community. Hosting a charity event that shows how the
business care about is a great way to give back to the community and customers are notified of
the extra effort. For example, choose a day to donate 10% of business profits. This can advertise
the event in advance so that customers know how to make it inevitable in business outlet on that
day. Example helping family that underwent loss of income due to Covid19. This will be an eye
opener for McDonalds.

5.0 Conclusion

Finally, macro environment elements are related to the pressures from the company's
external environment and usually cannot be controlled by the company's operations. These
environments include political, and legal environments, economic, technological, and social
cultural. All macro-environmental elements need to be examined to maximize the potential of the
company or organization, and as a guideline on how the firm should work to lead the
competition and keep it safe. Should all the elements can shape the positive development of the
company and fix the shortcomings of the company.

Therefore, McDonalds must assess macro environment elements that continually influence
their company to remain at the top of the financial services industry. Competitors are increasing
day by day, so McDonalds is able to compete vigorously for its menu and services. McDonalds

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needs an intelligent business program to counter threats, collect and win, and turn them into
company opportunities.

REFLECTIVE REPORT

This course boosts imagination and innovation in me. In order to develop this ability, it
needs to be built within ourselves. The fact that entrepreneurship requires all sills which can be
made use of and developed along the way is undeniable. In addition, I learned to listen to others

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worth your views and this would make a real positive image on me.

The overall result will be to raise the degree of expertise and competence in running a
company and to create an incentive for future benefit. Entrepreneurship-based job experience can
be a breakthrough experience for a student who has built professional and technological
knowledge that he / she wishes to use in a personal business venture. The student may have
created a business strategy for his or her business in the process of entrepreneurship. This
entrepreneurship experience can complement the purpose of a student's career. I will hear from
the entrepreneur that implementation is more critical than the concept itself. Many companies are
looking at fresh strategies to build higher standards. New innovations are hard to come by and
seldom result in profit formation. Esteem derives from the ability to implement it. Entrepreneurs
tend to have an uncanny desire to implement an idea and turn the inoperative into a big business.

In order to enhance the implementation, lecturer will be able to provide some tasks on the
subject of learning and the next topic not only to address the basic themes of the subject, but also
more in depth. To increase comprehension and recall, students should take a quiz to practice
research can be achieved using an exercise that includes clerical examples which uses multiple
learning strategies rather than only power points.

(2752 words)

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References: -

[ CITATION Nor14 \l 1033 ] MPU223/3223/OUMM2103 Entrepreneurship. OUM

Thomas, J. G. (n.d.) Macroenvironmental Forces. Retrieved from

www.referenceforbusiness.com
(Froyen, 2nd August 2012) (Froyen, 2nd August 2012) Macroeconomics: Theories and Policies
10th edition by Froyen
2019 Economic Monetary Report, Retrieved 30th October 2920 from
www.bnm.gov.my/ar2019/files/emr2019_en_full.pdf, 2019
McDonalds Malaysia History, Retrieved 25th October 2020 from
www.mcdonalds.com.my/company/history
McDonalds Wikipedia, Retrieved 25th October 2020 from
(https://en.wikipedia.org/wiki/McDonald%27s, n.d.)

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