Important stakeholders

The organisation may create positive externalities, such as better local roads and transport, but it can also create negative externalities such as pollution.  The local community buy McDonald's products. McDonalds are situated among each local community who provide McDonalds with customers and employees. Therefore the local will have a substantial interest in McDonalds as it is also the main workplace for that community as well as a socialising place. 


The local community expect McDonalds to provide jobs, trading conductions, and reduced litter and help keep the community be safe and tidy. McDonalds provide bins within a certain area of each restaurant. Their employees also go on litter duty where employees will walk around the local area and clear any rubbish left by customers.

McDonalds have to apply for late openings and not all are granted due to opposition of some local communities. This shows it is important that McDonalds operate in a manner which does not have a negative impact on the community, the local community expect no activities which may damage their local environment. 


The local community have a definite influence towards the business as they are close to its location. The local community influence McDonalds because if they were not there then McDonalds would not have as much as a large source of jobs, also because they have employees inside the local community, more people will take sides with them.

If they did not work there McDonalds could not operate if the local community are not happy they can take action which can harm McDonald's reputation. The local community can easily take legal action against McDonalds due to noisy machinery, large buildings which take up a lot of space or anything that makes them dissatisfied.

This therefore would cost McDonalds money and give them bad publicity. If McDonalds changed their closing times they have to make sure it does not disturb the public or put the public in any position that they could get harmed. They can go against McDonalds if they are harming the environment legal action can be taken against the company. The local community may boycott the restaurant if they are not happy with the way McDonalds operate. 

McDonalds would expect the local community to respect them, use their property in a good manner without vandalising, treat staff with courtesy and visit regularly in order to buy their products. This means that the local community have a big influence on the business if they do not buy McDonalds food, then the company can go bankrupt. It is important for McDonalds to stay popular with the local community. If the business has a more convenient location than its competitors, it will gain at the expense of the competition.

If Burger King or Pizza Hut was opposite McDonalds, it would be up to local community to choose which is better. Therefore McDonalds has to build a positive reputation with its local community. McDonalds have to make sure that their employees and customers are happy with where the business is located. McDonalds would want the local community to try out for jobs at their premises, this would be easier for McDonalds to rely on their workers as they may be punctual as they live nearby and the workers in the local community would know a lot of customers that may turn up.

This shows that McDonalds needs to get themselves a good reputation with the local community or else they can be rebelled against. This would lead McDonalds being closed down or needing a new management. Or nearby businesses or other restaurants, for example, Burger King would go into competition, being more popular then McDonalds; this would mean McDonalds sales would go down. 

Suppliers (three legged stool):

The suppliers are people who provide McDonalds with raw materials, components or services. Suppliers are stakeholders in the business, because if it fails, they will lose a customer and therefore lose sales. The suppliers are part of the 3 legged stool as they are very important stakeholders. McDonalds could not operate successfully without them. Suppliers value large contracts with companies like McDonalds because they are steady, secure business.


Suppliers want regular orders from a business and loyalty as this helps them to be a successful business themselves. In return suppliers will offer good discounts for steady orders, if they don't the business can always go elsewhere. They want McDonalds to pay them on time. McDonalds have a lot of suppliers for their products. McDonalds expect the supplier to send in the goods at the right time at high quality, at the right price. The supplier has to supply good quality products and maintain this standard.


Suppliers can influence McDonalds through the price of their products, the quality of their products and through efficiency of how the products get to them. McDonalds may want to buy in mass, so that it is cheaper and more efficient, as there is more transported at once causing less hassle. Local companies are chosen in first priority for their raw materials because it gets to them quicker with less risk of it being damaged and also helps the local community publicise them well.

If it is not efficient as there are breaks in supply and the supplier is not regular and reliable it can affect the business in a bad way. If there was a late delivery by the suppliers then McDonalds would not be happy as it has affected their business too. They might have lost customers in the mean time because their required product was not available. Therefore the suppliers are important stakeholders as they affect sales and customer service if unreliable. 

The supplier can charge interest rates which will have a direct impact on McDonald's profits. Also if there is a change in prices and for example the prices go higher then it would mean lower profit for McDonalds. If the suppliers are not happy they can easily take their products elsewhere therefore McDonalds have to satisfy their suppliers. McDonald's have a lot of suppliers for each type of food. Mc Donald's expect the supplier to send in the goods at the right time at high quality. 

McDonald has a variety of suppliers for each type of food as follows for beef, chicken, packaging, potatoes etc. The businesses keep the same supplier because they have customers which are familiar with the food, if there is change the business could loose out. Suppliers would want bulky orders from McDonalds to keep as their fixed supplier. Suppliers are able to increase their price of products through quality. This can cause a major effect in the profit margin of the business.

The cheaper their products the easier it is for McDonalds to gain profit. This is one of the most powerful one out of the external stakeholder because it can lose out a business very easily. McDonalds believe in the three legged stool which is based on the three most important stakeholders.

Suppliers are one of the three most important stakeholders. Without the suppliers, McDonalds would not have any raw materials or packaging to make their products. If there are no products produced then there would be no customers buying McDonalds food which means McDonalds would not survive. McDonalds hence aim to keep their suppliers happy by working closely with them on designing of furniture and packaging. They have large contracts and use the same suppliers for all restaurants in the UK

McDonalds will aim to fulfil supplier expectations as they feel the suppliers are an important stakeholder which is why they are part of the three legged approach. If McDonalds do not fulfil their role McDonalds feel they could not be successful. 

Financiers (banks):

Financiers are organisations that lend money to McDonalds, provide so that McDonalds can expand their business or renovate it. Their main interest in the business is making sure that their money is repaid or that their investment is safe. This is both commercial banks and investment banks Financiers are people like the Barclays, Halifax, and HSBC etc. There are many different types of loans a business can and depends on because of different needs.

They can lend McDonalds money as a long tern or short term loan. They provide McDonalds with money to aid the running of the restaurant and expansion or to refurbish McDonald's premises. The government in some cases may offer grants usually in areas of high unemployment and economic deprivation. 


To make sure the business is successful so that McDonalds can pay back long-term loans. They expect to have an involvement in decision to how the money is spent at McDonalds and to receive regular payments from McDonalds. 


Helps McDonalds to enlarge their business and maintain higher success. They are a big influence as they are providing money for the business, which means that they are taking a risk, so should have a say in how it is spent. Meetings are set up between the bank and the company so that the bank can monitor and may be change what the business is doing. Financiers can increase charge on interest rates which means McDonalds have to pay more and therefore would make less profit. 

McDonalds would have to find a bank which does the right balance. Some banks do low interest but then offer a less of a good service therefore a right balance should be found. A bank can also influence McDonalds by the changing the repayment terms; the amount of time given for the money to be paid back in can be changed , which would affect how well the business has to work to get the money needed. Financiers are people like Barclays, Halifax, and HSBC etc. The disadvantage of financiers is that if a late payment is made the property would be seized by the bank. Companies like McDonalds pay for the building with ready cash which avoids interest pay.

Financiers will look at the annually balance sheet to check if the company is in a stage to repay their loan. Financiers help the business, for example enlarging McDonalds so that the business can maintain further success and good reputation. Financiers can seize the business if payments are not given in and they give the start up capital for the business. McDonalds should be good with the financiers for future references like future loans and credit history. Financiers can be very powerful stakeholders if they are not happy with performance of McDonalds they could change the agreement of the loan such as giving extensions, interest rates etc.