International Trade Business and Enterprise

Question: Discuss about the International Trade Business and Enterprise. Answer: Introduction There have been developments in the field of international trade along with underlying technology and legal framework which causes the business to be dynamic. The spread of modern organisations is not limited to just one nation or geography but tends to be global which enhances the overall complexity and paves way for legal issues in the wake of complying with various national and international laws, conventions and regulatory frameworks (Folsom et al., 2009). In the wake of this background, the applicable regulatory framework and international and domestic agreements that impact the operations of McDonalds in Australia would be highlighted. Multinational Corporation- McDonald One of the most prominent multinational organisations that has operations in Australia is McDonald. It has been accorded the reputation of being the fast food restaurant chain having the highest burger sale in the world. It offers a vast menu of customised fast food items and also runs a caf to provide various drinks and snacks. In Australia, McDonald has 90,000 staff which isused to run the operations of the company and offer superior services to customers (Mcdonalds, 2016). However, the global strength of the company in terms of employees is about 1.95 million. Globally, it is only the second largest private sector employer and is ranked after Walmart. The companys headquarter are situated in Illinois, United States. Regulatory framework For a particular multinational company that is operating away from home implies that it needs to be sensitive to the applicable legal regulatory guidelines which may be applicable in the geography of operation (Vickery Pendleton, 2006). This is the case with McDonald which intends to reach out to various stakeholders in a just manner, the most critical of these being customers and employees. Since the company lies in the service industry, hence the top management pays significant focus on ensuring that a diversified workplace is given a working ambience which is free from nepotism and discrimination. As a result, the company aims to provide equal opportunity to all potential employees so as to be a part of the team. By ensuring that that a healthy diversity is maintained and no discrimination is levied in any form against employees with disability, the company is abiding by Disability Discrimination Act 1992 (Legislation, 2015). The aim of this act is to eliminate the incidence of discrimination in various fields including work. Besides, the acts aims to bring a change in the mind-set of the society with the underlying belief that the available fundamental rights to these individuals is absolutely same as those available to other members of the community. This act has relevance for an organisation like McDonald which has been a harbinger in promotion of diversity and providing opportunities for not only employment but also growth of these employees in the corporate ladder. The company functioning in Australia is proactive on the front of engaging people with disabilities in various capacities which is not only limited to acting as employees. The company has a dedicated Action Plan with regards to engagement with disable people as has been mandated by the Disability Discrimination Act 1992 (Legislation, 2015). The Action Plan essentially has seven main aspects which need to be implemented with dedication and compassion. The first step is development of policy and corporate planning which involves that suitable policy measures be introduced. Secondly, it is required that the organisation needs to be highly responsive to the need of people with disability in the capacity of customers or employees. The third requisite step is in the form of recruitment where such people with disability should be given fair share. The fourth step is to ensure awareness about disability and such people with the use of training. The fifth step in this regard is to ensure compliance which needs to be coupled with the sixth step that focuses on enhancing the existing facilities and building structures. This is vital so as to provide a comfortable working environment to people with disabilities where they can perform. The seventh and the final step is to ensure that evaluation of the plan is carried out in a period ic manner through feedback and requisite changes be made (Mcdonalds, 2016). As a result of having this Action Plan in place and complying with it on an ongoing basis, it ensures that the people with disabilities are provided their requisite rights, respect and facilities required at all the franchisees. Further, to improve the facilities on an ongoing basis, the company also engages in formation of programs for sustainability. Besides, the company also takes sincere and proactive efforts so as to enhance awareness about issues regarding people with disabilities amongst various stakeholders particularly the employees and customers so that these people with disability are seen with same respect and productivity at work which is true as the standard training imparted to each employee is the same and thereby their efficiency has to maintain a required level to keep up with the service standards associated with the organisation (Griffin Pustay, 2006). The company is order to comply with its legal responsibilities towards people with disabilities has also signed an employment charter that is directed towards people having any disability. (Mann, 2009). Visible changes have been brought after the charter signing as the efforts in certain parameters have been intensified. These include areas such as awareness of staff and customers, higher involvement of people with disability and greater opportunities in promotion to these individuals. The proactive conduct of the organisation along with steps taken for the employment and growth of people with disabilities has brought recognition to the company and stands as a testimony of organisations commitment towards the empowerment of such people through positive discrimination (McDonalds, 2016). As part of compliance with the act, the organisation has introduced key elements at the level of the corporate culture which provides for non-discrimination at all levels right from recruitment to training to promotion. The underlying driver at each of the stages is essentially the work productivity and dedication to work which is used for making decisions. This relentless focus of the organisation towards eliminating the social stigma of discrimination is apparent as the company not only limits to itself but has forged association with various community organisations that work in this aspect. Through such partnerships, the company encourages those talented individuals who have some disability and these are provided with work opportunity at outlets owned by the company or the franchisee. The fact that opportunity is provided to these individuals augers well as the performance then becomes the key criterion whereas the disability tends to take a backseat. Hence, it is evident on the b asis of the discussion conducted that the Action Plan formulated by the company to ensure prompt implementation of the Disability Discrimination Act has paid handsome dividends. Impact of treaties, conventions or agreements The main agreement that drives the operations of McDonalds in Australia is the McDonalds Australia Enterprise Agreement 2013. This agreement is responsible for defining the mode of functioning and the offered services for the Australian operations of the company. This agreement has been approved as per the Fair Work Act. The agreement in total consists of five main parts that are highlighted below (SDA, 2013). Clause Classification and Wage Rates Ordinary hours of work Leave and Public Holidays Schedule A Clause 3 of this agreement tends to deal with aspects such as employer, shift supervisor, weekly employee and related terms. The various terms are defined in a definitive manner without any ambiguity so as to maximise the transparency and objectivity. An example in this regard is the confusion which is often caused with regards to standard rate which in the agreement has been defined as the hourly wage rate of a level 2 employee and hence limit ambiguity and confusion (SDA, 2013). Using the agreement as an enabling tool, there have been efforts to being about quality standardization which is a pivotal aspect for McDonalds especially considering the global spread and the predominant franchise model. The Agreements Clause 6 related to the National Employment Standards and also aim to standardise the employment conditions by objectively defining this (FWC, 2013). These include a discussion of various topics such as leaves, working hours weekly permissible, long service leave etc. and hence provide clarity to both the employees and employers about the norms which are adhered to across every outlet in Australia. Further, Clause 9 highlights the terms of dispute settlement that are deployed by the organisation and thus makes the process transparent and just. It is common in the service industry that disputes arise with regards to service being provided to consumers. Such disputes between employee and employer if prolonged can adversely impact the delivered services and could be detrimental to the interests of the organisation. However, by deploying Clause 9, such disputes can be resolved in a prompt manner without biases and with the intervention of senior personnel such as supervisor or restaurant manager. If the dispute still is not resolved, then the assistance of the Fair Work Commission may be undertaken (Docplayer, 2016). Thus, the role of this clause in keeping a healthy working relationship between the employer and employees cannot be overstated. Further, at time there are cases when some employees tend to apply for long leaves without complying with the requisite legislation. Without proper and prior information about these leaves, there may be a shortfall of manpower that the organisation may face and this would have adverse impact on the performance of the organisation. In this regards, the agreement is of immense help since guidance is provided in the matter of long service leave in Clause 11 which needs to be complied with all employees of the organisation including the franchisees. This effectively ensures that cases of uninformed absenteeism are minimised and hence provides a big boost to scheduling and manpower planning (SDA, 2013). Further, there are instances when ambiguity is there with regards to the appropriate category of employees which can hamper effective division of work and accountability. The Clause 12-15 come to the rescue of the company in this regard. Clause 12 tends to highlight the three main categories of employees and effectively distinguishes amongst these. The conditions that need to be fulfilled to be classified as a full time employee are highlighted as per Clause 13 (SDA, 2013). This clause advocates that a full time employee must not work for more than six days a week in succession. Further, the average weekly hours for a full time employee are capped at 38 which are calculated on a four week cycle. Further, certain other provisions are also highlighted which need to be complied with by every employee who is full time. In accordance with Clause 14, a part time employee has been defined as an individual who tends to give a weekly work commitment of 10-36 hours. In regards to casual employ ee, Clause 15 states that such employees must be given not only the hourly pay rate extended to other employee but also casual loading over and above. Hence, it is apparent that with the deployment of these clauses, the various human resources issues are minimised and streamlined which ensures a motivated workforce driven by excellence and deliver quality service to consumers on a sustainable basis. Conclusion It is apparent from the discussion above that a MNC such as McDonald has significant challenges as it needs to comply not only with international norms but also the local laws and guidelines. These tend to have a significant impact on the operations of the organisation as is apparent from the Action Plan which McDonalds has put in place so as to comply with the Disability Discrimination Act. Additionally, for companies such as McDonalds which have presence globally, it is imperative to have service agreements which are derived from local laws, customs, norms but also seek to promote the global values for which the organisation stands for, In McDonalds case, McDonalds Australia Enterprise Agreement 2013 seems to be doing a befitting job which is responsible for the quality services extended to customers on an everyday basis, References Docplayer.net. (2016), MCDONALD'S Australia Enterprise Agreement 2013 Commissioner Bull Sydney, 24 JULY 2013. [online] Available at: https://docplayer.net/16084723-Mcdonald-s-australia-enterprise-agreement-2013-commissioner-bull-sydney-24-july-2013.html#show_full_text [Accessed 26 Aug. 2016]. Folsom, R, Gordon, M, Spanogle, J 2009, International business transactions in a nutshell, Sage publications, London FWC 2013, McDonald's Australia Limited. 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