Mcdonalds Corporation Case Analysis - 1634 Words

McDonald’s Corporation Case Analysis Name left out BUSN 412 Business Policy July 27, 2008 CASE ANALYSIS MCDONALD’S CORPORATION COMPANY NAME: McDonald’s Corporation INDUSTRY: Fast Food COMPANY WEB SITE: http://www.McDonald’s.com/corp.html COMPANY BACKGROUND: The first McDonalds was built in 1940 by the brothers Dick and Mac McDonald. In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San Bernardino, California. The following year, 1955, Kroc opened his first restaurant in Des Plaines, Illinois and the McDonald’s’ Corporation was created. By 1957 a company motto had been created; Quality, Service, Cleanliness and Value (Q.S.C. V.) In 1961 Kroc bought out the McDonald brothers for all rights†¦show more content†¦Threats: McDonald’s has a few threats that are a concern to them. The growing strength of the competition from Burger King and Wendy’s, among others, has decreased their market share. They need to think of new and appealing food items. The more health-conscious consumers become, the less likely they will want to stop at McDonald’s for lunch. PORTER’S FIVE FORCES MODEL: The threat of new entrants: According to our text, the threat of new entrants is the possibility that the profits they make in an area may be eroded by new competition. The McDonald’s by me competes with Burger King, Wendy’s, Dairy Queen, and other smaller places like Zel’s. Each time a new place opens the less business they will have. For the other company, there will be a barrier to entry. They will have to use product differentiation to bring in the customers†¦to make them overcome their loyalty to McDonald’s (Dess, p. 53). The bargaining power of buyers: Buyers have more control over an industry than one might think. They want lower prices, higher quality, and more services and this makes the competitors play against each other. The profitability suffers as each competitor tries to make their product or service better (Dess, p. 54). McDonald’s has a $1.00 menu as does Burger King and Wendy’s. Each time I go into either of them there is a better item added to the $1.00 menu. For instance, McDonald’s has the scrumptious Double Cheeseburger and Wendy’s has theShow MoreRelatedThe Marketing Environment, Consumer Markets, The Worlds Largest Fast Food Chain And His Presence1214 Words   |  5 Pagespeople’s life. Surprisingly, McDonald’s has franchised 80% of its restaurants and this fact has led to years of business growth and increased profits. Also, McDonalds operate as an affiliate and the corporation itself. Task 1 Learning outcome 1a During this task, I will present how McDonald’s use marketing to build and keep its brand standard. In this case, it is necessary to understand what brand standard is and how the philosophy of marketing has helped McDonald’s to become so well presentedRead MoreAnalysis Of Mcdonald s S On The Indian Market Essay1237 Words   |  5 PagesInternational business focuses on the significant differences between markets around the world. This report uses The McDonald’s Corporation as an example to show the importance of having a strong knowledge of unfamiliar business environments; in particular, when looking to internationalise. By looking at the case of McDonald’s moving into the Indian market, we can see that internationalising introduces cross-cultural challenges and political risks that must considered both before, during and afterRead MoreCorporate Social Responsibility And The Employee Stakeholder1160 Words   |  5 Pagesmultinational corporations (www.b radford.ac.uk). The publisher is a trusted global provider of content-enabled solutions to improve outcomes in research, education and professional practice with strengths in every major academic, scientific and professional field (www.wiley.com). The purpose of this essay is to provide a critical analysis of Royle’s article. In his research, the author aims to analyze the work environment within the multinational fast-food industry. He uses McDonald’s, a MultinationalRead MorePurpose of a SWOT Analysis1254 Words   |  6 Pagesï » ¿PURPOSE OF A SWOT ANALYSIS 1 The Purpose of a SWOT Analysis Charles Anderson Joyner III Grantham University PURPOSE OF A SWOT ANALYSIS 2 Abstract Every business to include the largest ones that control their areas of industry--has a limited supply of manpower, productionRead MoreHow Are The Corporation s Debt Securities Reported On The Financial Statements?994 Words   |  4 PagesHow are the corporation s debt securities reported on the financial statements? The balance sheet and income statements are summarized to analyze the year end from the year to demonstrate gain patterns and how the cash is reinvested and managed to its investors. In 2010, McDonald’s arranged a shelf registration form that can permit them to register a supplementary $500 million in dollars of debt securities with the Securities and Exchange Commissions. The corporation can then utilize these earningsRead MoreMcdonalds : The Largest Fast Food Service Company1295 Words   |  6 PagesMcDonald’s Corporation- S.W.O.T. Analysis Introduction/Overview McDonald’s has become the largest fast food service company in the world, with more than 35,000 restaurants in over 100 countries. Based out of the United States, McDonalds primarily operates from franchise restaurants offering not only hamburgers and fries as what they are known for, but many other menu items as well. A lot has changed from their days of 15 cent hamburgers in 1955, and they are an iconic fixture in our culture overRead MoreMcdonald s And The Changing Food Industry1563 Words   |  7 Pagessuccessful fast food chain restaurants in the world, the development of McDonald’s, we can easily attribute the success to the numerous trends in hospitality they have incorporated into their strategy. In this paper, I will discuss some of those trends in grave detail, which links to the company’s structure and environment. This paper is organized as follows: In the first section, I will give a brief introduction to the history of McDonald’s and how it came to be the fast food conglomerate it is known asRead MoreEthical Issues Facing McDonalds1772 Words   |  7 Pagesthe corporation of their obesity, coronary heart diseases, diabetes, elevated cholesterol intake, high blood pressure, related cancers, and other health effects. Despite the public outcry on the issue, McDonalds Corporation has done nothing to counter the health aspect. Instead, they have spread the risk of people getting these diseases to more areas as the company is rapidly growing. The company has also introduced new items in their menu, which are high in fat. From the way the corporation is actingRead MoreCorporate Social Responsibility And Its Impact On Society1382 Words   |  6 PagesCritical Analysis There are a number of definitions of â€Å"idealism† and â€Å"realism†. Idealism is referred to behaviour or consideration based on an idea of things as they would be, or as we would like them to be, with an inclination to be unreal or imaginative. Realism on the other hand is referred to behaviour or consideration based on a formation of things as they actually are, in spite of how we want them to be, with an inclination to be practical and realistic. Corporate social responsibility hasRead MoreThe Franchise Relationship Between Aqap And The Al Qaida Core1430 Words   |  6 PagesAQAP did not associate itself with al-Qaida. Explained by Ward: â€Å"Had AQAP not been an al-Qaida affiliate organization the US might have been less willing to undertake drone strikes or perceived AQAP as less of a threat.† Comparing al-Qaida to the McDonald’s Business Model The remainder of this project is a series of comparisons aimed to measure the symmetry between business and franchise, terrorism. The comparison sizes up al-Qaida to the definition of business franchise, given by the American US