Private and Public Limited Company

Authors Avatar

Jayson Calagos

Business Studies

Private Limited Company

 

 McDonald Corporation

  • McDonalds Corporation is the largest fast food chain in the world today.
  • McDonalds Restaurant is found at 120 countries and territories around the world including my country Philippines.
  • Today McDonald Corporation served nearly 54 million customers each day and more than 31,800 flagship restaurants serving burgers, chicken, carbonated drinks, breakfast items, dessert and fries in more than 120 countries.
  • And also McDonalds is a franchising company in the world.

   

The Ownership of McDonald.

  • Private Limited Company
  • The business I have decided to choose for this assignment is McDonald’s. McDonald’s ownership is a franchise. McDonald is a large business with more than 30,000 restaurants in over 100 countries, serving more than 38 million people each day.  
  • Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself.

Who are its shareholders?

In the UK, McDonald's Restaurants Ltd is the identity of McDonald's Corporation. The company does not offer its shares for general sale nor are its shares listed on the UK Stock Exchange. However, the company does register its accounts at Companies House.

Stock exchange

McDonald corporation one of the big business that provide the New York Stock Exchange, in last November of 2008 the yare volume are almost  12,851,628 billion US Dollar.

McDonald total profit

  • The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.
  • Market cap – 60.07 Billion US Dollar (costs)
  • Operating income – 3 Billion US Dollar (cost)
  • Net income – 2 Billion US Dollar (profit)

 Aims:

  • Is to maximise the profit by increasing the sales.
  •  Keeping cost low.
  •  More outlets nationwide.
  • McDonald’s main aim is to lead the Quick Service restaurant market by a programme of site development and profitable restaurant openings.

McDonalds also have many other minor aims which are as follows:

        Our People: Achieve a competitive advantage through people who are high calibre, effective, well motivated and feel part of the McDonald’s team in delivering the company’s goals.

       Restaurant Excellence: Focus on consistent delivery of quality, service and cleanliness through excellence in our restaurants.

        Operating Structure: Optimise restaurant performance through the selection of the most appropriate operating, management and ownership structures.

        The Brand: Continue to build the relationship between McDonald’s and our customers in order to be a genuine part of the fabric of British society.

 Objectives:

  • Reduce costs.
  • Increase the number of customer.
  • Increase the number of outlets.
  • Serve quickest service.
  • Survival
  • Market share
  • Providing exceptional customers care
  • Remaining an efficient and quality producer offering high value to customers (according to company’s policy)
  • And serve more drive thru outlets nationwide.

These aims and objectives simply tell us that McDonalds want to be the largest fast food restaurant, have excellent well trained staff working for them, have clean and tidy restaurants, have a good management and business structure and have a respected brand name.  McDonalds also have three main aims and objectives concerned with being environmentally friendly. They are; conserving and protecting the world’s natural resources, effectively managing solid waste and ensuring responsibility procedures.

Long term financing – Long term financing is a form of financing that is provided for a period of more than a year. Long term financing services are provided to those business entities that face a shortage of capital. It is different from short term financing.

Competition

In the UK, the main competitors of McDonalds come from Burger King which operates a total of 9644 restaurants in 110 countries, but in the USA, competitors also include Wendy’s is McDonald's also largest rival, which is also in the fast food business, where Wendy's operates 6776 restaurants in 32 countries, and Hardee's, McDonald's largest rival is also in the fast food business and is the only direct competitor apart from Juicy Burger in the Lebanese market. Hardee's operates 3080 restaurants in 20 countries. As we have illustrated McDonald's faces stiff competition from three major competitors, Burger King, Wendy's and Hardee's.

Finance of McDonald

  • Wages
  • Using items like machinery, computers, cleaning materials etc
  • Supply chain
  • New product development
  • Staff training
  • Promotional and advertising

McDonald need these kind of long terms finance from the business because they need:

  • Increasing Facilities
  • Expansion of Companies
  • Buying Fixed Assets
  • Buying Machinery
  • Construction Projects on a big Scale
  • Provide Capital for funding the Operations. This helps in adjusting the cash flow.

The annual report of McDonald

  • Sales increase to 6.8%
  • Total revenue is 23 billion
  • 25% - three years compounded annual return to the shareholder
  • 3-5% average annual sales and revenue growth
  • 6-7% average annual operating income growth
  • Return on incremental invested capital in the high teens

Why more investor in McDonald

  • Delivered even better restaurant experiences to customers and superior value to shareholders.
  • McDonald’s world's best owner/operators, suppliers, and employees united in our commitment to customers.
  • Are leveraging greater consumer insight to deliver sustainable business results for the long-term benefit of McDonald shareholders.

Why the McDonald is a high profit?

  • More that 1.6 million employees serving worldwide
  • More than 540 million snack wraps are sold like the famous Big Mac and French fries
  • 24,500 restaurant worldwide are opened 24 hours services
  • 1 billion customers are serving
  • 155 countries are serving of McDonald

McDonald’s services and products are aimed toward the children and younger generation. McDonald's is aimed toward those who are in need of quick service, but also want good quality food.

Products and Services

McDonald's serves it customers with a variety of menu items to please every person's tastes. McDonald's serves breakfast, such as Hash Browns, and Egg McMuffins. Besides hamburgers and cheeseburgers, McDonald's offers Chicken McNuggets, French-Fries, Muffins/Danishs, McSalad Shaker Salads, and Sandwiches (Crispy Chicken, Filet-o-Fish). McDonald's also serves shakes and desserts (Baked Apple Pie, chocolate chips), beverages, and Tastes Menu (Chicken Select Strips with Tangy Honey Mustard or Spicy Buffalo Sauce). McDonald's serves products so that everyone can find something that suits their likes best. McDonald caters to kids with the famous Happy Meal, which serves kid size versions of its foods and includes a toy. Besides food,  also offers merchandise to their customers on their web site. Products such as gifts, motor sports merchandise, collectibles, and kids' stuff.

Business Processes

 business process consists of receiving the raw products, such as the meat and bread, from other companies. Then, McDonald’s takes the raw materials and cooks the material to make the Big Macs and French fries. These products are then sold to the customers who come and eat at McDonald’s. McDonald’s sales depend on the advertising the corporation does through television and radio.

Join now!

Information

McDonald’s depends on certain information for its business process. McDonald’s uses the cash registers to track the transactions done during the day.  executives then use the information about what menu product or what merchandise is selling the most or which product is no longer selling to make future decisions about where to invest and spend money.

McDonalds Policy to ensure the best quality product

McDonald's menu concentrates on five main ingredients: beef, chicken, bread, potatoes and milk. Recognising the importance of the supply chain in maintaining quality, McDonald's aims to create long-term relationships with a limited number of supplier ...

This is a preview of the whole essay