What are the development possibilities for McDonald's

1. What are the growths potential? 

“Our growth opportunities remain significant on any given day 99% of the world population doesn’t eat at McDonald’s yet.” (McDonald’s 1995 annual report).

This proves that McDonald’s capabilities for growing is high as still there are a lot of open markets.

Because the reckless drive for market share McDonald’s seek to grow rapidly and open restaurants in many countries without making market research to the new and different market segments as market share is not useful in some situations where this rapid growth may lead to the failure of these new restaurants and close them. The quick availability of the product made it easy to proceed on market expansion and growth. Rich targets (kids) which are present all over the world provide Mac. With great potential growth as its target market is present everywhere and easy to attract and ensure their loyalty.

Mac is considered an international icon that is loved and welcomed by some countries making it able to penetrate foreign markets.

The most important factor that made it easy for Mac to grow is the reduction of cost of the buildings through standardizing materials, equipments, and tools also it bought other restaurants from weak competitors such as 184company owned Roy Rogers outlets. In late summer 1996 as it was stated by green berg “Here was an opportunity that was may be once in a life time.”

4. Any changes you would make to the Mac. empire? Give reasons?

1. Monitor and control the growth strategy in order to provide each branch with its special needs in order to make it convenient with its region

1. Sell branches that have a bad relation and considered a problem maker due to the franchisee
2. Instead of focusing on market development and growth, Mac can search for other alternatives such as market penetration of their existing products.
3. In order to defeat the problem of high turnover, we must take care of employees and make for them a reward system in order to make them feel that they are important to the organization to reach the phase of satisfaction.

5. Evaluation of Mac people focus?

1. Mac is characterized by a high rate of turnover due to its weak focus on employees due to several factors:-

1. Low level of commitment by employees
2. Low salaries
3. Low loyalty
4. Routine and simple work

1. Suggestions for decreasing the rate of turnover are:-

1. Make a reward system matching rewards with performance
2. Provide staff training
3. Create a strong motive for employees such as a reward for employee of the month
4. Create and atmosphere of competition between employees to increase performance through different reward systems and bonuses
5. Make employees feel responsible for a part of the whole organization to feel important

1. Evaluation of Mac relation with franchisee? Specially franchising 2000? 

Mac has 2 relations with its franchisee, some franchisees are satisfied with the relation with Mac, and others are dissatisfied.

Mac tries to enhance their relation through different policies:-

1. They try to give their franchisee the available tools and equipment to perform their best but under certain rules such as taking a percentage of their revenue to their own
2. When franchisees ask Mac to expand the number of restaurants, Mac evaluates their current position and make decision according to their analysis whether it will be profitable or will create a loss
3. Some franchisees requests are refused which make the franchisees blame Mac for their mismanagement and bad behavior creating a bad image of Mac.
4. Franchising 2000: New set of business practices developed by corporate head quarters known as franchising 2000 which was instituted to improve standards for quality, service, cleanliness and value by giving franchisees better tools but other saw this as an attempt to gain more power and control. The grading system was A, B, C and F where franchisees were graded A and B to open new restaurants. This new system may have improved the situation of several franchisees by improving the service and quality which made it successful while others complain about this approach saying it was used only for power. Overall, Mac should not be concerned about the franchise relation as it have its own restaurants in addition to the new franchisees who are found in different countries willing to participate positively with the Mac empire.