Mcdonald's Internal Analysis: Internal Analysis Of Mcdonalds

They are enhancing the customer’s experience. “Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thru to the increasingly mobile populations in China and Russia, while in the U.S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly” (McDonald's, 2008, 13). In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonald’s has already renovated about 10,000 restaurants worldwide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. “By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety” (McDonald's, 15).

McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and

Products and Services: McDonald has to continuously evolve its menu to meet the emerging customers need and to attract new customers. Currently, nutritional value has become very important for customers.

McDonald's has successfully created a brand/name for itself as the leading fast food retailer in the world. It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.

Almost sixty-four percent of its stock holders held are institutions. Places such as, Bank of America, Northern Trust Corp, Wellington Management Co and many others that are interested in this company’s growth. Since opening in the middle of 1960’s, McDonald’s any one can recognize its trademark golden arches. We as Americans cannot turn a street corner without seeing a different McDonalds down the road. They are located everywhere, but that just means more profit for the company and its stockholders. The company owns and leases out real estate primarily in connection with its restaurant business. It generally owns the land and buildings or secures out long-term leases for the restaurant sites.

Macdonald’s offers a strict, but mutually beneficial franchising and licensing agreements that have a term of 20 years (McDonald’s, 2014). Before an individual obtains a franchise or a licensing opportunity, a careful scrutiny of the restaurant location must conform to expectation of future growth of the business. The scrutiny ensures long-term profitability of the restaurant. The process of setting up a restaurant is very thorough. The franchising and licensing agreement allows the corporation to have enough cash for further expansion. Expansion creates dominance and goes a long way to stamp authority as a

REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008

McDonald is a fast food franchise based in the United States and has various food outlets in other countries like India, United Kingdom, China, Japan, Canada and Australia. McDonald has been termed as the ‘World`s Local Restaurant’ because of its affordable take-out and sit down meals. The economic recession in the US in 2010 greatly affected businesses especially fast food restaurants whereby most small restaurants had to temporarily close their businesses. However, McDonalds remained afloat amidst tough economic times in the American market because of specific strategies which will be discussed.

McDonald’s has extremely strict rules when it comes to awarding franchises. First, it is very costly to open a new location or purchase an existing location, with the median startup cost being $300,000 (Kalnins & Lafontaine, 2004, p. 750). As well, the company does an extensive background check on a variety of issues including credit history, business management experience, and the acceptance of the contractual agreement that the company provides. Because of these strict rules and the large amount of capital needed to purchase a location, “rates for franchise applicants are 1% for McDonald's” (Norton, 1988, p. 204). This is an extremely low acceptance rate and is even lower than McDonald’s chief competitor, Burger King, who accepts 1.5% percent of applicants (Norton, 1988, p. 199). These low numbers are understandable in the context of the business and risk that is involved. Though the franchise purchaser must pay a large amount of money to gain the rights to the restaurant, they truly have nothing to lose besides money because they are simply running another company’s business model as well as using their trademarks and logos. McDonald’s on the other hand, has a great amount at stake because they place the well being of an entire restaurant into the caretaking of an individual who simply purchased the rights for the store. If the store does poorly or if there are issues with customer service, it reflects

McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.

The publicly traded company of choice is McDonald’s Corporation that falls in the food industry; it is an international leader in the fast food sector. The franchise is the world’s largest fast food entity a factor that serves it competitively in the market against other players in the same industry. The corporation serves nearly forty seven million customers worldwide on a daily basis with its primary focus being the sale of the hamburgers, soft drinks, chicken products, salads, French fries, milkshakes, cheeseburgers, desserts, wrap, breakfast items and fruits.

Founded in the year 1940 in California as a small hamburger restaurant in San Bernardino, California McDonalds Company is a fast food restaurant operating in the USA as well as globally (Vignali, 97). Boasting of more than 32, 000 outlets worldwide, the company is a franchise which has independent owners running different outlets (Vignali, 97). The franchise’s organizational structure is divided into three namely; the global hierarchy where the CEO gives all the directives, the performance-based divisions which measures different regions performances and the function-based groups which entails the human resource, legal group and the supply chain group (Thompson).

Back in the 1960s and 1970s, company and corporations tried to branch out using the franchising scheme, since it’s the safest way for both the franchisor and franchisee. Compared to others, McDonald was way ahead of their competition again when it comes to franchising. Unlike other fast food chains, McDonalds’ executives were interested in expanding their franchises by offering lower franchising fee instead of demanding a large fee up front, sold off the rights to entire territories, and earned money by selling supplies directly to their franchises. Together with their well-known brand recognition, McDonalds continues to expand more and more, just like what Ray Kroc wanted from the beginning. This kind of explained why there are so many McDonalds restaurants compared to others, such as Carl’s Jr and Burgers King. While this might seems like a good business decision for the company, it’s a 2 way knife for franchisee. Instead of demanding large royalties or selling supplies, McDonald became the landlord for most of their franchises. These franchisee have to pay up to 40% markup and that one single contract breach could lead to franchisee’s eviction. Over the years, this eventually turned into a good business for company and as one of McDonalds’ executive put it’’ We are in the real estate business and the only reasons that we were able to sell fifteen cent hamburgers is because it is the only way that help our tenants to us our rent.’’ In other words, to open up a franchise

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

The McDonalds Corporation is one of the largest chains in Fast- Food market. It spans over 68 million franchises and is known for serving over 99 billion customers. It has expanded overseas and implemented over 35,000 outlets. This essay will dissect the different aspects, and business ideas that the McDonald Corporation is using. From business management to social responsibilities to the environment and consumers, we will go into detail how McDonald use these different practices to help maintain and grow this large company.