BACHELOR OF PSYCHOLOGY WITH HONOURS (BPSY)

SEMESTER SEPTEMBER / 2020

MPU3223_V2

ENTREPRENEURSHIP

MATRICULATION NO : 970927025543001
IDENTITY CARD NO. : 970927-02-5543
TELEPHONE NO. : 014-7591945
E-MAIL : amadtubasa97@oum.edu.my
LEARNING CENTRE : BANGI LEARNING CENTER
TASK 1

McDonald’s is the leading global food service retailer with more than 31,000
local restaurants serving more than 58 million people in 118 countries each day. More
than 75% of McDonald’s restaurants worldwide are owned and operated by independent
local men and women. McDonald’s sells various fast food items and soft drinks
including, burgers, chicken, salads, fries, and ice cream. Many McDonald’s restaurants
have included a playground for children and advertising geared toward children, and
some have been redesigned in a more ‘natural’ style, with a particular emphasis on
comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and
tables. McDonald’s long history began with founder, Ray Kroc. The strong foundation
that he built continues today with McDonald’s vision and the commitment of their
executives to keep the shine on McDonald’s Arches for years to come. McDonald’s has
become the best-known fast food brand in the world. And after Coca-Cola, the
hamburger is the best-known American food invention to spread around the world.
McDonald’s revolutionized the food industry, affecting the lives both of the people who
produce food and the people who eat it.
Macro environment consists of all the forces that shape opportunities, but also
pose threats to the company. They involved of 6 different forces which is demographic,
economic, political, ecological, sociocultural and technological forces. They can easily be
remembered as the DESTEP model or also called DEPEST model helps to consider the
different factors of the macro environment. Demography is the study of statistics of
births, deaths, diseases in order to show the state of population. The demographic
environment refers to the level of population growth, age, sex, education patterns, family
influences etc. Next, economic environment comprises the nature of economic system of
the country, the structural anatomy of the economy, the economic policies of the
government, the nature of factor endowment and markets. The physical and geographical
factors can play a predominant role in constituting the non-economic environment and
thereby affecting the business. The application of modern technology leads to rapid
economic growth at a huge social-cost deterioration of the physical environment as an
example air pollution, noise pollution, and water pollution. The nature of such costs is

1
being assessed by biologists, ecologists, and sociologist. Technology shapes the future of
any society. Marketer must watch the changes in the technology for keeping track of
competition and customer wants. In the modern world, the pace of technological changes
is very fast. Technological environment influence work at the organization in terms of
investment in technology, consistent application of technology and the effects of
technology on markets. It provides the legal framework within which the marketer is to
function. The viability of business depends upon the ability with which it can meet the
challenges arising out of the political environment. The political environment of a
country is influenced by political organizations, political stability and foreign policy etc.
all these factors have a bearing on business. Lastly, the culture environment of a nation
determines the value system of the society which in turn affects the marketing of
products. Sociological factors such as caste structure, mobility of labor, customs, cultural
heritage, etc. might have far reaching impact on business. Cultural environment also
determines the code of conduct the business should follow.
Internal Analysis is done using Value Chain analysis. The term ‘value chain’ was
used by Michael Porter (1985) in his book “competitive advantage; creating and
sustaining superior performance”. Brown (1997),“described value chain as a tool to
disaggregate a business in to strategically relevant activities”. In McDonald’s case, the
key value adding activities are inbound logistics, operation, outbound logistics, marketing
& sales and service. McDonald’s logistics function is to buy food on behalf of its
operator (franchisee) and arrange delivery in to their restaurants. McDonald’s logistics
includes; the procurement and shipment of raw materials in to suppliers, the procurement
and shipment of finished goods between the suppliers and the distribution centres,
together with the warehousing at each distribution centre, the ordering and the delivery to
restaurants of all food, packaging and operating supplies. To improve its logistics
operation, McDonald’s combines a number of food-processing plants dedicated to its
operation only. The establishment of “food towns” consisting of a distribution center and
a bakery, a meat plant, a sauce plant and a chicken plant, gives McDonald’s competitive
advantage. The supporting activities that can be identified are procurement, human
resources development and technology. McDonald’s uses electronic procurement system.
It had set logistics trends for restaurants with its online ordering system. It was noted that

2
more than 12% of McDonald’s franchisees ordered food supplier electronically.
Revamping its supply chain with software and technology made it easy to respond
quickly and efficiently to customers’ needs. With the online ordering system,
McDonald’s had a return on investment of 23.2% in 2008. However, the human resource
development at McDonald’s is excellent. McDonald’s uses a high-engagement approach
to improving both their operations, leadership pipeline and employee satisfaction with
their career growth. Every management staff at McDonald’s receives training at one of
the regional training centres and at the national centre, Hamburger University in East
Finchley. Training all employees to work in one best way (quick-service culture) made
McDonald’s to gain customer’s loyalty continuously leading to a competitive advantage.
The operations of McDonalds are affected by the government policies on the regulations
of fast food operation. Currently government are controlling the marketing of fast food
restaurant because of health concern such as cardiovascular and cholesterol issue and
obesity among the young and children in the country. Governments also control the
license given for open the fast food restaurant and other business regulation need to
follow such as for a franchise business. Good relationship with government in giving
mutual benefits such as employment and tax is a must for the company to succeed in any
foreign market. McDonalds should also protect its workers by ensuring all the hiring,
compensation, training or repatriation is according to UK and European Labour Law and
the Middle Eastern Labour Laws as stipulated. As a business entity, McDonalds need to
face a lot of economic variables outside its company or its macro environment. Dealing
with international sourcing for its material McDonalds should be aware on the global
supply and currencies exchange. Remember, McDonalds import most of its raw material
such as beef and potatoes due to local market cannot supply in abundant to meet the
demand of its product. Any upside of currencies especially dollar will be impacting its
cost of purchase. Working on the local country, McDonalds must face government
regulations on tax of profit where it gains from the operation and other tax such as
entertainment and restaurant service tax. Each country may have different scale or types
of tax available and McDonalds should follow the regulation if it wants to continue the
operation. As a franchise, McDonalds should also pay certain percentage of the revenue
to the parent company in United States. The economic condition and growth of the

3
country also is an important indicator to the demand of products that McDonalds offered.
As the food priced slightly above normal foods, not many people will have the income
range to consume the products. Moreover, if the economy is bad and income percapita is
affected, the demand of McDonalds product will certainly going down. On the other
hand, the good economy also means disposable income is more and people can spend
more on more expensive food at fast food restaurant. The changing lifestyles of Malaysia
due to development of Malaysian economy should be also taking into consideration.
While more people are able financially to eat at more expensive outlet such as fast food
restaurant, they have higher expectation. They want to have quality in services and more
conveniences that can differentiate one restaurant from another. Young urban consumers
want technology in their life and facilities such as credit card payment, wireless internet,
cozy and relaxing ambient place, and other attraction for their hangout and eating. All
these needs should also be taken into consideration. There is not much difference
between cultural and the purchase of products in a single country but for different
countries cultural sensitivity should be upheld. For example in India people (Hindu) do
not take beef, Muslim countries do not take pork, German like beers, Finnish like fish
type of food menu, Chinese like to associate food with something good (for example
prosperity), Asian like rice and Americans eat in big-sized menu. So far McDonalds has
shown good efforts in localization of its menu to suit local taste but it should constantly
survey and learn about local culture to better understand and design the best product for
them. For a fast food restaurant, technology does not give a very high impact on the
company and it is not a significant macro environment variables. However McDonalds
should be looking to competitors innovation and improve itself in term of integrating
technology in managing its operation. For example, in inventory system, supply chain
management system to manage its supply, easy payment and ordering systems for its
customers and wireless internet technology. Implementation of technology can make the
management more effective and cost saving in the long term. This will also make
customer happy if cost savings results in price reduction or promotional campaign
discount which will benefits them from time to time.
Though, still McDonald’s is the largest over the counter quick service food
restaurant in the world. After that McDonald’s should consider the environmental factors

4
which impacting company. And the strategies which company is using now, those have
positive and negative effect on business. The management of McDonald’s has to
continuously keep an eye on the umbrella activities of the organization, by evaluating
what works and what don’t to create the organization strategies. In order to implement
the strategies effectively and successfully, the upper level management should create a
safe environment for reassure, support, changes, and commitment of the organization. It
is then recommended that McDonald must make sure that all the strategies are well
planned and implemented carefully beforehand, because these changes and strategies will
be the deciding for the success or failure of any organization.

TASK 2

Entrepreneurship course helps me to learn many useful things. This course is

mainly focused on concept, historical background and theories of entrepreneurship. This
course also helps me to know more about entrepreneur. Besides that, I learn to appreciate
the entrepreneurial culture and value which helps in my profession. Through the learning
of entrepreneurship, I am aware of the importance of entrepreneurship to individuals,
society and country. Moreover, I also gain knowledge on how to identify and understand
entrepreneurial opportunity and transform it into a successful basic business plan.
Entrepreneurship help me improved my communication skills.
This course provides me a true image of entrepreneurship that I actually have
continuously believed was just a heritage. I'm keen about exploring entrepreneurship
when getting correct info on entrepreneurship data like ideas, myths, visions, innovations,
concepts generation, business plans and currently I have been able to differentiate
between merchants and entrepreneurs. This course enhances my skills in learning through
modules, forums, video watching, and responsive queries. The course was a catalyst on
behalf of me to continue my studies at oum on my very own confidently in the future.
I am very excited to gain so much knowledge while taking this course. I also took
the opportunity to read some articles on entrepreneurship by online journalists. I also
enjoy the forums, assignments, questions, quizzes on MYINSIRE website for nearly a

5
year. The forum and also Etutor very helpful. Even though we are not 1 to 1 in the real
class, but this portal can be very friendly to us. This entrepreneurial course is very
meaningful and beneficial to me. I will continue my entrepreneurial knowledge even after
completing this course because of my deep interest. I helped a friend of mine to prepare
his business plan according what I have learned in this course. I will use my existing
knowledge to become a successful entrepreneur someday.
In conclusion, I would suggest putting into this subject more too real business. As
far as concern, the real business is not happened just like in theory. I propose that OUM
make students involve or starting a business module as a prototype of this subject rather
than just writing the essay. It would be more interesting. The students follow all the
guidance from tutor and notes. The end of the study, we can see how strong our syllabus
to guide the entrepreneur and also the value-added for students, their making money from
their business. I am sure more students coming in for next semester.

Following from the above, look at

intelligence and its testing from the
sociohistorical synthesis founded
on
Vygotsky. Continuing with the
sentiments expressed above,
fairness of intelligence testing must
factor in
learning and culture. To the old
question, of whether intellectual
6
deficiencies accumulate,
Humphreys
(1988) a psychometrician of
prestige and authority, writes
about the context within which
learning
deficiencies accumulate among
poor black American students,
contributing to their 'inadequate
learning
syndrome (ILS)'.
A summary of the main points
in this chapter that will be of
interest to both theorists and
practitioners in the field of
intelligence is given below:
1. Intelligence is discernment and
judgment, not merely quickness in
7
thinking. The Western and the
Eastern
philosophers agree on this.
2. A total shift from qualitative to a
quantitative estimate of intelligence
is regretted. Intelligence includes
not only reasoning, but also will,
and emotion which may require
qualitative analysis (Das, 1994).
3. Recent theories of intelligence
comprise a mixture of the old
factor-analytically derived ones and
those
derived from information
processing. Among the latter are
the Theory of Multiple Intelligence,
the PASS

8
theory and the Triarchic Theory;
each one may make IQ obsolete.
A revival of g as speed, specially,
measured by reaction-time
straddles the border between the
old and the new. However its
interpretation as a
phenotypic measure aspiring as it
does to measure synaptic speed
(correlation between IQ & nervous
conduction speed is around
r=0.05; see Wahlsten (in press) is
questionable. When reaction time
and IQ
correlate, RT is a surrogate for
complex information processing.
4. Any theory of intelligence
should specify how to measure
9
intelligence, what processes
underlie test
performance and how to prescribe
instructional and remedial
procedures.
5. Does intelligence contain
some cognitive modules?
Probably not in a strict sense if
modules are
characterized as innate, fast and
autonomous of general cognitive
activities. But the mind
becomes
modularized as development
proceeds (Karmiloff-Smith, 1992).
By assuming that the 4 PASS
processes,

10
for example, develop as such, it
will be useful to discover how any
one of them works rather than
drowning
their activities in general
intelligence.
6. Lastly a paradigm shift of sorts
seems to have emerged in
regarding the attribution of
intelligence to
heredity and environment. Genetic
expression that occurs in the brain
is distinctly led by environmental
influences; the heredity-
environment interactions are bi-
directional. Added to this new
knowledge is the

11
accepted interaction between genes
and the cultural context in which
intelligence operates for an
individual
during and after the developmental
period. Inadequate learning
accumulates to cause intellectual
deficiency.
The world has changed since
Galton suggested the inheritance of
general intelligence based on
inheritance,
as we know that the vast majority
of the world's children lack
schooling and health care and have
disrupted
childhood due to wars and other
disasters much of which can be
12
prevented by privileged nations.
Should
we still look for the true score in
intelligence testing or promote the
human values of compassion and a
lack
of greed for an equitable
distribution of intelligence?
Following from the above, look at
intelligence and its testing from the
sociohistorical synthesis founded
on
Vygotsky. Continuing with the
sentiments expressed above,
fairness of intelligence testing must
factor in
learning and culture. To the old
question, of whether intellectual
13
deficiencies accumulate,
Humphreys
(1988) a psychometrician of
prestige and authority, writes
about the context within which
learning
deficiencies accumulate among
poor black American students,
contributing to their 'inadequate
learning
syndrome (ILS)'.
A summary of the main points
in this chapter that will be of
interest to both theorists and
practitioners in the field of
intelligence is given below:
1. Intelligence is discernment and
judgment, not merely quickness in
14
thinking. The Western and the
Eastern
philosophers agree on this.
2. A total shift from qualitative to a
quantitative estimate of intelligence
is regretted. Intelligence includes
not only reasoning, but also will,
and emotion which may require
qualitative analysis (Das, 1994).
3. Recent theories of intelligence
comprise a mixture of the old
factor-analytically derived ones and
those
derived from information
processing. Among the latter are
the Theory of Multiple Intelligence,
the PASS

15
theory and the Triarchic Theory;
each one may make IQ obsolete.
A revival of g as speed, specially,
measured by reaction-time
straddles the border between the
old and the new. However its
interpretation as a
phenotypic measure aspiring as it
does to measure synaptic speed
(correlation between IQ & nervous
conduction speed is around
r=0.05; see Wahlsten (in press) is
questionable. When reaction time
and IQ
correlate, RT is a surrogate for
complex information processing.
4. Any theory of intelligence
should specify how to measure
16
intelligence, what processes
underlie test
performance and how to prescribe
instructional and remedial
procedures.
5. Does intelligence contain
some cognitive modules?
Probably not in a strict sense if
modules are
characterized as innate, fast and
autonomous of general cognitive
activities. But the mind
becomes
modularized as development
proceeds (Karmiloff-Smith, 1992).
By assuming that the 4 PASS
processes,

17
for example, develop as such, it
will be useful to discover how any
one of them works rather than
drowning
their activities in general
intelligence.
6. Lastly a paradigm shift of sorts
seems to have emerged in
regarding the attribution of
intelligence to
heredity and environment. Genetic
expression that occurs in the brain
is distinctly led by environmental
influences; the heredity-
environment interactions are bi-
directional. Added to this new
knowledge is the

18
accepted interaction between genes
and the cultural context in which
intelligence operates for an
individual
during and after the developmental
period. Inadequate learning
accumulates to cause intellectual
deficiency.
The world has changed since
Galton suggested the inheritance of
general intelligence based on
inheritance,
as we know that the vast majority
of the world's children lack
schooling and health care and have
disrupted
childhood due to wars and other
disasters much of which can be
19
prevented by privileged nations.
Should
we still look for the true score in
intelligence testing or promote the
human values of compassion and a
lack
of greed for an equitable
distribution of intelligence?

20
 ATTACHMENT

REFERENCES

All Answers Ltd. (November 2018). Macro and Micro Environment Analysis of
McDonalds. Retrieved from https://ukdiss.com/examples/value-chain-analysis-2.php?
vref=1

Marketing Insider (2020). The Macro Environment-6 Forces in the Environment of

Business. Retrieved from https://marketing-insider.eu/macro-environment/

UKEssays. (November 2018). Micro And Macro Environment Of Mcdonalds Marketing

Essay. Retrieved from https://www.ukessays.com/essays/marketing/micro-and-macro-
environment-of-mcdonalds-marketing-essay.php?vref=1

21