• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Mc Donalds internal and external anlysis

Extracts from this document...

Introduction

1.0. Introduction McDonald's Corporation (Plc) is the first worldwide company by sales. Found in over 100 countries and territories in the world and last recorded to be serving 52 millions customers each day, it's the world's largest chain of fast food restaurants. The first McDonald's restaurant and franchise was opened and founded by Raymond Albert Kroc in the year 1955, he was inspired by the speedy service system of the McDonald's brothers. (McDonalds website) 'Franchisees are crucial to McDonald's success; they deliver our brand values straight to the customer. Worldwide, over 70 percent of our restaurants are run by independent entrepreneurs' (Lancaster and Reynolds, 2004, P.335). McDonald's is considered to be in a monopolistic competition; 'it is a market structure where there are a large number of sellers producing a differentiated product' (Worthington and Britton, 2006, P.505) With no price competition, the goods are slightly differentiated by advertising, branding or local production. There are many ways to determine a size of an organisation, we can see the increase in size of McDonalds over the years by the increasing number of restaurants and the revenue. We can see this in McDonalds worldwide financial profile, appendix 7.1. 'Organisation structures provide a frame work through which communication can occur and within which the processes of management can be applied'.( Worthington and Britton,2006,P.23) On a globalised scale McDonalds functions on a Matrix structure. Within countries McDonalds operates on a functional structure, which is beneficial as it's suited to a small scale. ...read more.

Middle

Health and safety procedures include food quality checks before the products reach each individual restaurant of McDonald's. * It is required to carry out 72 safety protocols every day in every individual McDonald's restaurants- this is a detailed daily monitoring task set for restaurant managers "nothing is more important to us than the safety and well being of our customers". ( McDonald's website) 2.1.6. Environmental analysis 'reduce, reuse, recycle'-(McDonalds environmental program policy) McDonalds is aware of today's global environmental issues like pollution, high co2 emissions and aspects of global warming, hence McDonalds has changed every aspect of its business in terms of impact on the environment and taking positive action. Therefore McDonalds introduced a European Environmental Board which monitors and controls such environmental measures, appendix 7.3 To peruse these goals McDonalds have addressed: Packaging, Litter, Recycling, Energy saving and Waste. Packaging: McDonalds has changed their packaging to become environmentally responsible while meeting essential criteria's such government regulations and ability to recycle waste materials as much as possible. An example of this would be 'trimmed the amount of material used in our French fry and Mc Nugget cartons.'(McDonalds website) Litter: litter patrols were first introduced in the UK by McDonalds. Members of staff are sent out to collect McDonalds packaging and litter discarded around the premises. All McDonalds packaging actively support 'keep Britain tidy' activities; all packaging carrying the 'tidy man' symbol encourage their customers to properly dispose of litter. ...read more.

Conclusion

Through McDonalds brand image it encourages consumers to perceive a product or service to be superior to the competition. Competition in this market is monopolistic, there is a no price competition, thus companies focus on advertising and branding. 4.0. Conclusion and Recommendations In this assignment we have discussed the current prospects of the McDonald's organisation providing a detailed analysis of the external environmental issues by using certain theories, PESTLE and PORTERS five forces, to analysis and applying to our research. Given our research into McDonald's and their current situation, we feel that it is safe to say that McDonald's has done well thus far considering the negative criticisms and accusations they have encountered. Tired of being vilified , McDonald's has put implemented valiant efforts and commitments to improving the companies menu, reputation, and profits, not only has this helped in McDonald's revenue in the past five years but has encouraged the public that it is once again safe to dine in McDonald's. Even though McDonald's have accomplished to revive from the fall back, we can foresee future challenges arising. As we mentioned that McDonalds introduced new products to the menu due to the health drive, if they continue to do so, will they be unintentionally branching into other market sectors? This may be a problem as within new market sectors there will be new competition. Part of the new competition would include established companies in that market sector that have experience and resources. Therefore reputation in the new market would be something that McDonalds would have to gain through penetration marketing strategies. 6.0. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Management Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Management Studies essays

  1. McDonalds and KFC: Recipes for Success in China

    For instance, KFC or McDonalds may encounter difficulties in sourcing raw materials such as Chicken or Potato from the local market within their target country, because of the lack of guarantee on quality, and legal frameworks to protect contractual obligations.

  2. Strategic Business Plan of Nokia. This strategic report examines thoroughly Nokias current position ...

    � Increased concentration on Smartphones may shift management attention from other business units (T11) � Threat of limited supplies (T12) � Low credit rating (T13) � Increased government interventions (T14) C. FUTURE SITUATION ANALYSIS I. Scenario Planning Scenario Planning is useful for perceiving assumptions about how and why the environment and the industry may evolve in the future.

  1. Leadership Theories - this review seeks to determine which theoretical perspectives, theories and schools ...

    Interventions, also known as initiatives, are the specific methods or techniques utilized for development, such as lectures, action learning projects, multisource feedbacks, coaching, job assignments and job rotation. Learning approaches seem to be the point in which theories start to make an impact in the leadership development literature.

  2. General Management - organisation, leadership and theories.

    IMPLEMENTATION OF CHOSEN ALTERNATIVE The implementation stage involves the use of managerial, administrative, and persuasive abilities to ensure that the chosen alternative is carried out. The ultimate success of the chosen alternative depends on whether it can be translated into action.

  1. Innovation For Business Success. It is possible to be innovative in both large ...

    In a recent study, Gustavo Manso, from MIT's Sloan School of Management has conducted considerable research looking at compensation and its relation to innovation outcomes, and reported that the results of his studies show: "that compensation schemes that tolerate early failure and reward long-term success promote innovation".

  2. Billabong Case Study. This report provides an analysis of Billabongs current situation and both ...

    This has allowed for more imports and exports to transfer between Australia and the Euromarket which works both negatively and positively for Billabong. It is negative as there is higher competition through this force as other companies come in and sell their products within Australia, however the benefits outweigh this.

  1. Fast Food Fun Booklet Business Plan

    ?A recent survey by the consumer group Which? found that two out of three adults would like to see the calorie information clearly displayed on all fast-food products.? (Pizza News, 22nd September 2011) Note: Small-scale catering units, such as motor vans, that can be found at festivals and along roadsides are excluded from the Key Note analysis.

  2. To what extent has McDonalds green movement in Singapore enabled the company to gain ...

    Many businesses and company corporations see corporate social responsibility (CSR) as ?the intentional inclusion of public interest into corporate decision-making.?(Hsu, 2010) CSR is important because businesses are constructed around trust and foresight. Creating and keeping trust with clients, customers, communities and regulators are not simple and can be damaged or lost easily.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work