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Mc Donalds internal and external anlysis

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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.


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.


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.

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