Week_4_Casestudy_Nallapati

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Maryville University *

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Business

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Apr 3, 2024

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Financial Analysis of the Chosen Company Stock ticker symbol : exchange where traded __New York Stock Exchange (NYSE) ____________ Address of company headquarters _110 North Carpenter Street, Chicago, Illinois 60607, USA ________ Company phone number ____+1 630-623-3000 _________ Name: N. Divya Praneetha Student ID: 4260970 Webster University
PART 1, COMPANY OVERVIEW: a. Brief description of the company. One paragraph, briefly summarizing the company’s business. Ans: In the fast-food sector, McDonald's Corporation, also referred to as McDonald's, is a globally recognized fast-food restaurant company. Established in 1940 by Richard and Maurice McDonald, the company uses a franchising model and has thousands of locations across the globe. McDonald's is well known for its famous golden French fries, Happy Meals, and Big Mac menu items. The company's primary focus is on catering to a varied worldwide consumer base with convenient, reasonably priced, and uniformly standardized meal choices. McDonald's embraces versatility, frequently customizing its menu to fit regional preferences while preserving the essence of the brand. The company has shown a dedication to innovation over the years by implementing technology into its operations such as mobile ordering and self-service kiosks to improve customer satisfaction and maintain its position as a market leader in the cutthroat fast-food industry. b. Company history. Origin and major milestones (developments) etc. in the company’s history. Be sure to include milestones (developments) up to the current period. McDonald's Corporation History: Origin and Early Years (1940s-1950s): 1940: McDonald's was founded by Richard and Maurice McDonald in San Bernardino, California. The brothers managed a drive-in restaurant at first, but in 1948 they changed their business strategy to emphasize efficiency and quickness with a small menu consisting of just nine dishes. 1955: Ray Kroc, a Multimixer milkshake machine sales agent, joined the company. Seeing room for growth, Kroc took on the role of franchising agent and eventually bought the McDonald brothers' stock in the business. Franchising and Global Expansion (1960s-1980s): 1961: The first McDonald's restaurant outside the U.S. opened in Canada. 1967: McDonald's went public, and the first international restaurant opened in Puerto Rico. 1971: The opening of the first McDonald's in Japan marked the beginning of substantial international growth. 1984: McDonald's introduced the Chicken McNugget, becoming a significant addition to its menu. Innovations and Global Dominance (1990s-2000s): 1990: The first McDonald's in the Soviet Union opened in Moscow. 1994: McDonald's celebrated its 50th anniversary and introduced its first-ever salad option, reflecting a growing focus on healthier choices. 2003: The introduction of the "I'm Lovin' It" global marketing campaign marked a shift in the company's advertising strategy. 2008: McDonald's launched McCafe, a line of coffee beverages, expanding its offerings beyond
traditional fast food. Adaptation and Technology Integration (2010s-2020s): 2015: McDonald's announced plans to transition to cage-free eggs in the U.S. and Canada. 2017: The company introduced mobile ordering and payment capabilities in the U.S. 2020: During the COVID-19 pandemic, McDonald's focused on drive-thru, delivery, and digital options, highlighting the importance of adaptability in the face of global challenges. 2022: McDonald's continues to adapt its menu, emphasizing sustainability, and investing in digital technologies to enhance customer experience and streamline operations. From a modest California drive-in to a massive worldwide fast-food chain, McDonald's has grown over the years by embracing technology improvements, diversifying its client base, and consistently improving its menu. c. Organization. Describe how the company is structured. A visual such as a high-level organizational chart is recommended along with the description. A functional organizational chart is also fine. The structure of McDonald's Corporation: McDonald's Corporation has a hierarchical organizational structure and operates as a global, decentralized company. The company's extensive global network of franchise operations is supported by an organizational structure specifically created for it. An outline of McDonald's hierarchical structure is provided below: Business Level: Board of Directors: The Board of Directors is the highest level of authority at McDonald's and is in charge of managing the company's leaders and making strategic decisions. Executive Leadership Team: The Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), and other important executives in charge of various functional areas make up this team, which answers to the board. Structure of Operations: McDonald's is organized into worldwide divisions and regions, each of which is overseen by a regional president or vice president. Due to this framework, localized decision-making and regional adaptation are possible. Franchisees: A sizable percentage of McDonald's eateries throughout the globe use a franchise business model. Franchisees run and own their restaurants while collaborating closely with the company to uphold brand standards. Organized Function: McDonald's has several functional departments, including supply chain management, marketing, operations, finance, and human resources. Facets of the business's activities are under the purview of each department. Level of Restaurant:
Managers of restaurants: Managers oversee the daily operations of restaurants. These supervisors make sure that the highest standards of quality, hygiene, and customer care are maintained at McDonald's. Crew Members: Workers doing cooking, serving, and customer service are among the front-line staff members at every restaurant. McDonald's can maintain worldwide brand standards uniformity and adaptability to local markets thanks to its organizational structure. While corporate assures alignment with broad strategy objectives, the decentralized structure empowers local decision-making and responsiveness to varied markets. The franchise model encourages local ownership and entrepreneurship by further decentralizing operations. A functional organizational chart d. Main products and services. Describe what the company sells; how it makes money. A visual such as a chart identifying main products or services by revenue is recommended. Main Products and Services: McDonald’s Corporation is well-known throughout the world for its wide range of quick-service menu items that appeal to a wide range of customers. The following goods and services are sold by the business as its main sources of income:
Main Course Items: Burgers: The Big Mac, Quarter Pounder, and other cheeseburgers are just a few of the famous McDonald's burgers. Chicken items: A range of chicken items are available on the menu, such as the McSpicy selections, Chicken McNuggets, and McChicken sandwiches. Fish Sandwich: A popular menu item, the Filet-O-Fish serves a sandwich made of fish fillets. Breakfast Foods: Egg McMuffin: A staple option for early-morning patrons, the Egg McMuffin is a hallmark breakfast dish. Hotcakes with Sausage: Hotcakes are a breakfast item at McDonald's that are typically served with sausage and syrup and butter. Drinks: Soft Drinks: McDonald's provides a range of sizes for both carbonated and non-carbonated drinks. Coffee and McCafe: Lattes, cappuccinos, and iced coffee are just a few of the coffee drinks offered under the McCafe brand. Smoothies and Shakes: Adding fruit to a drink menu gives it diversity. Sides and Snacks: French fries: A classic side dish, McDonald's is well-known for its golden fries. Salads and Wraps: To satisfy patrons looking for healthier options, the menu offers salads and wraps. Sweets: Apple Pies: The traditional apple pie is one of the dessert options that McDonald's offers. McFlurry: Soft-serve ice cream combined with a variety of toppings is the centerpiece of this well-known dish. McDonald's Revenue Generation: A combination of company-owned and franchised outlets provides McDonald's with revenue. Among the main sources of income are: Sales from Company-Owned Restaurants: McDonald's owns and runs a large number of restaurants throughout the world, and these establishments generate income solely from the sales of food and drink. Fees & Royalties for Franchises: The McDonald's franchise concept enables people or organizations to own and run McDonald's eateries. Franchisees receive startup fees, recurring royalties depending on sales, and advertising fund contributions in exchange for their services. Licensing and Other Revenue Streams: Partnerships, marketing, and licensing agreements could allow McDonald's to make more money. In general, the success of McDonald's franchise model—which encourages entrepreneurship and broadens the company's global reach—as well as the popularity of its menu items and efficient marketing techniques all contribute to the company's profitability. e. Geographic area of operations. Describe where the company sells its products. A visual such as a chart or map showing where the company operates is recommended.
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