The Corporate Environment and Future Strategies

Business Plan:

The Corporate Environment and Future Strategies of McDonald’s Corporation

Don't use plagiarized sources. Get Your Custom Essay on
The Corporate Environment and Future Strategies
Just from $9/Page
Order Essay

McDonald’s Corporation is a leader in the fast-food industry. This business report includes an in-depth analysis of the present marketing environment of McDonald’s Corporation including a LePEST, SWOT, Stake Holder, and Five Forces Analysis in addition the second section will consist of a proposal for possible future strategy for the organization.

Environmental Audit:

LePEST analysis:

Political Factors:

The political environment within the 120 countries in which the McDonlad’s corporation has established restaurants is a constantly changing dynamic yet, for the most part the political climate in the respective countries is stable as it applies to the ability of the McDonald’s corporation to run effectively. The distribution network of the organization does pose some challenges in some countries as the food and packaging of each restaurant must be obtained through approved and specific channels that attempt to and succeed in making the McDonalds experience a universal one, e.g. The big mac that is served in Detroit will look and the taste the same as the one served in Beijing (Hoover’s online McDonald’s Corporation Capsule). Each individual political environment and how it effects McDonalds needs to be analyzed for corporate success. Largely the corporation is effective in doing so through communication and cooperation with government entities prior to the company investing in a particular country for the first time.

The political climate in the United States is relatively static, effecting current operations. Yet, to some degree future expansion can be hampered by local governments, in circumstances where public use permits must be obtained and public opinion is in conflict with a corporate or private entities wish to increase operations through additional locations. Public and sometimes private citizens have a certain degree of influence over the acceptance of a new location in some communities. Opposition can be associated with current or future traffic issues, public opposition to business type based on regional culture and composition, and/or regional market saturation. The local government has the ultimate deciding force on these situations of opposition.

Economic factors:

The current interest rates in the United States are in favor of real estate expansion as they have recently met record lows due to the international and local economic situations. The current high levels of unemployment favor the type of employment that the McDonald’s corporation offers, as they are also historically high. McDonalds offers entry level and low-level management positions that can be filled by people who would possibly be employed by other markets if the economy were better. The market for the type of product that McDonald’s Corporation offers tends not to decrease to any extreme degree during times of economic strife, as the offering is low cost and convenient and may be chosen over other restaurant offerings because the cost is lower in perception and reality.

Long-term economic development seems to be on the upswing as the two-year slump associated with the 2001 terrorist attacks and their aftermath seems to be coming to an end. Market trends are expected to enter into a growth phase by the end of 2003. The GDP of $36,300, in 2002 is expected to increase moderately through 2004 (rising to 2.5% and increasing by 0.3%). Level of inflation is 2.8% (2001). Unemployment rate for 2002 was 5% but is greater or lesser in some regions throughout the country. (CIA World fact book 2002)

Sociocultural Factors:

The dominant religion within the largest McDonald’s Corporation market, the U.S. is Christian, yet the government is secular in nature and most people do not practice religious dietary restrictions. The attitude toward foreign market products and services in the United States is open. The market expresses free trade interests and consumers tend to purchase based on price rather than origin of product. The issue of foreign products acceptation is a much greater issue in the other 120 countries where McDonald’s offers services. For the most part McDonalds has been embraced by the international community as a welcome American export. In those countries and regions where the predominant religion does not embrace the eating of red meat McDonalds has had a more limited influence.

Language and weights and measures have had some influence upon international marketing of McDonald’s services. Some products require renaming as the dominant system of language and/or weights and measures does not translate into the same product meaning which is traditionally associated with a certain product. Yet, to a large degree the services provided are streamlined and the packaging and products are universalized through distribution practices of the corporation.

A decrease in leisure time in the U.S. has influenced the growth of the McDonald’s market as the less time an individual or family possesses the more often they will partake in convenience offerings like fast food. McDonald’s niche has clearly focused on trying to serve an economical, desirable and appetizing product to people in a hurry. Consumers therefore increase their utilization of services that McDonald’s is clearly a trendsetter for, like drive thru restaurants with timed delivery. As the industrial and market influence of the 24-7 economy of the industry of the United States spreads to other countries, through corporate investment and international employment from companies like McDonalds this trend will also increase the growth of the corporate interests of McDonald’s corporation internationally. The population with in the United States is living longer and the elderly population often has a greater degree of expendable wealth and occasionally a lower degree of functioning associated with aging increases the reliance upon convenience and prepared or packaged food.

Technological factors:

The technology of delivery and communications was crucial to the historical growth of the McDonald’s corporation and is integral to its future growth. The ability for a McDonald’s restaurant in a distant nation to receive products that allow it to operate, much the same as one that is just a few miles from a distribution house is foundational to the consistent reputation of the company. Also the technology of rapid and mechanized food preparation, much of it pioneered by the McDonald’s Corporation is integral to the functioning of a McDonald’s restaurant. The continued increase technology that allows fewer employees to more rapidly produce a consistent product will continue to increase the competitive edge of the McDonald’s corporation. The benchmark development of the drive through restaurant service has increased the number of customers one location can serve tenfold and the rapidity continues to increase.

The restaurant lobby can be smaller and the employee base can serve both the lobby customer and the drive through customer. Payment technology has also increased the rapidity that customers can be served as the use of in-store ATMs and rapid access Credit and Debit systems decrease the time that transactions take to be completed. Additionally, the computerized ordering systems also increase the time it takes for an order to reach the preparation areas.

SWOT analysis:

Strengths:

Marketing of both new and old standard products continues to draw customers, with cost incentives and also promotional products, such as happy meal toys that are current with the desires of children. The international expansion of McDonalds, both corporate owned franchises constituting 30% of the total restaurants and private owned franchises is in a constant growth pattern. (Hoover’s Online) The leading edge system for the constant trial of new products and services also lends greatly to the companies successes.

Weaknesses:

Though new technology is integral to the success of the corporation, individual independent franchise owners are often at a disadvantage for obtaining and implementing new technology and services. Though McDonald’s Corporate attempts not to challenge the business of the independent owners it is a constant struggle to maintain the structure without private and corporate services being each other’s largest competitors in some markets.

Opportunities:

McDonald’s Corporation is internationally recognized for it consistent service and quality product. It is on the leading edge for the type of service it provides and the market it serves. The image of the golden arches is a recognized symbol that ensures a customer the ability to receive quality at a fair price and in a rapid manner. Continued international growth is inevitable and is not completely determined by the economy of one or another nation but by the broader, global economy.

Threats:

McDonald’s Corporation has been under constant competition from other competitive market providers. The maintenance of quality and ingenuity is integral to future success and continued market leadership. Without the technology that allows the rapid distribution and product service to happen each McDonald’s restaurant would operate as a completely separate entity and might not satisfy the corporate ideal. Clearly the largest threat to the organization is from without and maintaining a constant eye on internal weaknesses is crucial to continued growth and success.

Stake Holder Analysis:

The corporate stock rating for MCD is set at hold, which delineates expected continued steady growth. Quarterly financial report follows:

Income Statement

All amounts in millions of U.S. Dollars except per share amounts.

Quarter

Ending

Quarter

Ending

Dec 02

Quarter

Ending

Quarter

Ending

Jun 02

Quarter

Ending

Revenue

Cost of Goods Sold

Gross Profit

Gross Profit Margin

SG&A Expense

Operating Income

Operating Margin

Total Net Income

Net Profit Margin

Balance Sheet

Dec 02

Jun 02

Cash

Net Receivables

Inventories

Total Current Assets

Total Assets

Short-Term Debt

Total Current Liabilities

Long-Term Debt

Total Liabilities

Total Equity

Shares Outstanding (mil.)

http://www.hoovers.com/quarterlies/4/0,2167,10974,00.html

In addition to slow and steady growth that can be shown by the above financial statement estimated growth charts can also give the shareholders a good idea of the constancy of their purchase. Expected earnings report compares quarterly data from the same quarter in the previous year to the current pattern of growth for the corresponding quarter in the present year.

Last Updated: June 21, 2003

Earnings Snapshot

Period

End

Mean EPS of Estimates

Year Ago

Actual

Q1

Jun 03

Q2

Q3

Dec 03

Q4

P/E Ratio

Consensus Recommendation

Hold

Year Growth Rate

Data Provided by First Call/Thomson Financial. On Hoover’s online. (http://quotes.hoovers.com/thomson/analyst.html?c=10974&templ=4&t=MCD&e=NYSE&n=McDonald%26%2339%3Bs+Corporation)

Five Forces Analysis:

Though a five forces analysis is often associated more with individual business entities a corporate multi-location store with private franchise owners could benefit from its use. Individual franchise entities may be better served with this sort of business analysis, and 70% of McDonald’s restaurants are privately owned. According to an online interactive Michael Porter’s Five Forces Analysis survey, available through Strategic Advantage Incorporated, the industry/market that McDonald’s dominates has these summary characteristics:

CUSTOMERS

Buyers/customers are a weak force in the industry. Powerful buyers drive down profitability because they bargain for lower prices, demand better product features for the same price, and play one competitor against another. Weak buyers are not likely to be as price-sensitive or to impose demands on companies in the industry.

COMPETITORS

Rivalry among competitors in the industry is moderate. Competitors can drive down industry profitability by cutting prices or offering more product features for the same price. When rivalry is most intense, competitors often compete head-to-head on price. When competition is disciplined and constrained by industry norms, rivalry is weak.

SUPPLIERS

Suppliers are a moderate force in the industry. Powerful suppliers drive down the profitability of companies in the industry because they can charge higher prices for the products and services they sell. Weak suppliers are not likely to bargain on price or impose demands on companies in the industry.

SUBSTITUTE PRODUCTS substitute product provides the same functionality but is not identical to potentially competitive products. For instance, train travel is a substitute for air travel since both are a means of traveling long distances; movies are a substitute for television since both provide visual entertainment. Substitute products are a moderate force in the industry. Substitute products constrain industry profitability by limiting the selling price companies in the industry can charge. If air fares rise too high, people will start using trains. Moreover, if the quality of the substitute is higher, buyers will switch to the substitute. That’s why more people fly than take the bus across country.

NEW ENTRANTS

New entrants are potential competitors. New entrants are a moderate force in the industry. The easier it is for new companies to enter the industry the greater the competition in the industry. New entrants will often attempt to break into the industry with low prices, innovative products, or new features and benefits. When it is difficult to enter an industry, the threats of new entrants is low. (strategic Advantage, 2003)

Recovery Recommendations:

Some recommendations that might serve the McDonald’s Corporation in both the short- and long-term can be found in response to the five forces online survey.

Customer force:

Find new ways to differentiate your product/service that have value to the customer. Even if your product is a commodity, there are ways to differentiate it in terms of the services that surround it. Differentiation can occur from the very first time customers becomes aware of your product to the time when they must dispose of it.

Offer additional services or support to customers in exchange for a larger share of their total purchases. Develop services that make it easier for them to work with your company as a single source supplier. Fill in gaps in your portfolio of goods so they don’t have to look elsewhere for related products.

Competitor Force:

Find new ways to differentiate your product/service that have value to the customer. Even if your product is a commodity, there are ways to differentiate it in terms of the services that surround it. Differentiation can occur from the very first time customers becomes aware of your product to the time when they must dispose of it. Develop new ways to control and minimize inventory levels. Unless managing inventory is a core competency (i.e., you’re better than any of your competitors) outsource it to companies who excel in that area. Find ways to have your supplier or customers carry inventory for you.

Customer Force:

Be on the constant lookout for alternative raw materials to use instead of your current raw materials. What could you use as a substitute that has similar characteristics but is more of a commodity?

Acquire one or more key suppliers if they are adding more value to the end product than you are. Move down the value chain if you want to reap more profits. Turn a cost center into a profit center. If your suppliers are making more than you are, you need to be doing what they do.

New Entrants Force:

Find new ways to differentiate your product/service that have value to the customer. Even if your product is a commodity, there are ways to differentiate it in terms of the services that surround it. Differentiation can occur from the very first time customers becomes aware of your product to the time when they must dispose of it. (Strategic Advantage, 2003)

The best advice that could be offered to an international giant, such as McDonald’s Corporation is to continue to formulate and utilize best practices that will continue to provide consistent products for the customer and continued steady profit for the investors. The United States economy is in recovery and will continue to cause the growth of spending for the market. Unemployment rates may decrease, reducing the available pool of employees but will also offer more spend able cash to the industry.

Works Cited

CIA World Fact Book (2002). Retrieved June 23, 2003, at http://www.cia.gov/cia/publications/factbook/geos/us.html

Hoover’s online.(2003) McDonald’s Corporation Facts Pages. Retrieved June 23, 2003, from www.hoovers.com.

Strategic Advantage. Michael Porter’s Five Force Analysis. Retrieved June 23, 2003, at http://www.strategy4u.com/assessment_tools/info.php?s=2


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently
 

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

What Will You Get?

We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.

Premium Quality

Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.

Experienced Writers

Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.

On-Time Delivery

Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.

24/7 Customer Support

Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.

Complete Confidentiality

Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.

Authentic Sources

We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.

Moneyback Guarantee

Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.

Order Tracking

You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.

image

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

Areas of Expertise

Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.

image

Trusted Partner of 9650+ Students for Writing

From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.

Preferred Writer

Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.

Grammar Check Report

Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.

One Page Summary

You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.

Plagiarism Report

You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.

Free Features $66FREE

  • Most Qualified Writer $10FREE
  • Plagiarism Scan Report $10FREE
  • Unlimited Revisions $08FREE
  • Paper Formatting $05FREE
  • Cover Page $05FREE
  • Referencing & Bibliography $10FREE
  • Dedicated User Area $08FREE
  • 24/7 Order Tracking $05FREE
  • Periodic Email Alerts $05FREE
image

Our Services

Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.

  • On-time Delivery
  • 24/7 Order Tracking
  • Access to Authentic Sources
Academic Writing

We create perfect papers according to the guidelines.

Professional Editing

We seamlessly edit out errors from your papers.

Thorough Proofreading

We thoroughly read your final draft to identify errors.

image

Delegate Your Challenging Writing Tasks to Experienced Professionals

Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!

Check Out Our Sample Work

Dedication. Quality. Commitment. Punctuality

Categories
All samples
Article review
Thesis/Thesis chapter
Research paper
Article review
A Holistic Response to Crime Victimization
Master's
Law
9
View this sample
Thesis/Thesis chapter
Post Covid-19 Economic Recovery
PhD
Economics
60
View this sample
Research paper
Final Case Analysis: Organizational Ethical Dilemmas
Undergrad. (yrs 3-4)
Business Studies
8
View this sample
Research paper
Communicable Disease
Master's
Nursing
8
View this sample
Research paper
Mental health
Master's
Nursing
10
View this sample

It May Not Be Much, but It’s Honest Work!

Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.

0+

Happy Clients

0+

Words Written This Week

0+

Ongoing Orders

0%

Customer Satisfaction Rate
image

Process as Fine as Brewed Coffee

We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.

See How We Helped 9000+ Students Achieve Success

image

We Analyze Your Problem and Offer Customized Writing

We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.

  • Clear elicitation of your requirements.
  • Customized writing as per your needs.

We Mirror Your Guidelines to Deliver Quality Services

We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.

  • Proactive analysis of your writing.
  • Active communication to understand requirements.
image
image

We Handle Your Writing Tasks to Ensure Excellent Grades

We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.

  • Thorough research and analysis for every order.
  • Deliverance of reliable writing service to improve your grades.
Place an Order Start Chat Now
image

error: Content is protected !!
Open chat
1
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 20% with the discount code DEADLINE