...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...McDonald’s Case Analysis Nick Brown BUSN412 Business Policy May 14, 2010 CASE ANALYSIS McDonald’s COMPANY NAME: McDonald’s Corporation INDUSTRY: Food McDonald’s Corporation COMPANY WEBSITE: (www.mcdonalds.com) COMPANY BACKGROUND: Ray Kroc found McDonald’s corporation, a successful fast food restaurant, in 1955 were his vision was to create McDonalds restaurants all over the U.S, and within 3 year of establishing the franchise the corporation was already selling its 100 millionth burger. The franchise has now became a successful global fast food restaurant that sells a variety of items and has a unique philosophy that Ray Kroc envisioned with building this franchise which was “To Build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation”(McDonald’s Corporation 2009). He wanted, “To serve burgers, buns, fried and beverages that tasted just the same in Alaska as they did in Alabama”(McDonald’s Corporation 2009). The case study concentrated on the financial strengths and struggles of the franchise. With the early millennium years 2001, 2002 and 2003 the franchise seen a tremendous dip in total revenue and net profits, it wasn’t until 2007 when the company seen a turnaround in total revenue and net profits. Things were starting to look up for franchise. Currently the CEO at McDonald’s Corporation is Jim Skinner and he is providing the same vision that Ray Kroc was envisioning when he opened the doors. The...
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...Unit II Case Study Charles Dearth Columbia Southern University Doctor Jernigan Strengths McDonald’s continued to grow financially in 2013. Their global comparable sales increased 0.2%, their system wide sales were up by 3%, and they increased their operating income by 3%. McDonald’s also invested approximately $2.8 billion in new and existing establishments. Existing markets included places such as the United States, France, and Germany. New markets included such places as China, Brazil, and India (McDonald’s Corporation Annual Report, 2013). Even though they continued to grow, their performance fell short of their high expectations for the past year. Challenging conditions such as a flat or contracting informal eating out category in most of their major markets had a direct impact on their performance results (McDonald’s Corporation Annual Report, 2013). However, taking a look at restaurant companies ranked by sales, McDonald’s Corporation shows the highest price per share of stocks at $94.38. Compare this to Yum at $76.25 per share, and Starbucks at $93.61 per share (Yahoo Finance, 2015). According to McDonald’s Corporation Annual Report, 2013, McDonald’s continues to monitor developments related to environmental matters. According to an article written by Evangelia, more companies are using environmentalism as a marketing tool (Evangelia, 2014). McDonald’s plans to maintain the preservation of the environment in two key ways: one by implementing more energy efficient...
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...Tarnesha Covington Student 212303 DBA 7035-Business, Government, and Society Dr. Robert Roberson The Nonmarket Environment of McDonald’s Case Study #1 DBA 7035-Business, Government, and Society Case Study #1 1. Characterize the four I’s. a) Issues: McDonald’s Restaurant chain has faced over 17 nonmarket issues all affecting the industry financially, economically, and medically. McDonald’s has rendered a policy of health and welfare for all of its international consumers to combat all epidemic diseases that derive from obesity and promote a society of healthier living. This franchise encountered many law suits, brand/ food changes, and government infractions in order to improve the wellbeing of the consumers and reputation of the company. McDonald’s main issue is the health issue, which was imposed by the public media and company agencies indicating the dangers of fast food and the obesity rate of the economy. b) Interest: The consumers have the largest interest in McDonalds’ when it comes to the level of obesity in America. They were targeted because of the increased calorie intake individuals were consuming which led to an overall increase in their daily body mass index (BMI). Congress advocated to McDonald’s to apply changes to their menu and the way they advertised. They wanted these changes to target children and promote a healthier eating lifestyle. Throughout the century different economy epidemics have hit the environment. Each time...
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...Pollution Prevention in Corporate Strategy NATIONAL POLLUTION PREVENTION CENTER FOR HIGHER EDUCATION Case A: McDonald’s Environmental Strategy Susan Svoboda, manager of the University of Michigan Corporate Environmental Management Program (CEMP), prepared this case under the guidance of Stuart Hart, director of CEMP and assistant professor of Corporate Strategy and Organizational Behavior at the U-M School of Business Administration, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an adminstrative situation. This document may be used by either students or faculty for background information. Introduction Rooted in Ray Kroc’s founding principles of Quality, Service, Cleanliness & Value (Q.S.C.&V.), McDonald’s management has always believed in being a leader in issues that affect their customers. This philosophy is evident in McDonald’s involvement in various community projects regarding education, health care, medical research, and rehabilitation facilities. These activities help the corporation to extend their image beyond fun and entertainment into social responsibility. However, in the late 1980s, McDonald’s began to face criticism for its environmental policies, especially those surrounding polystyrene clamshell containers. In 1987, McDonald’s replaced CFCs, the blowing agent used in clamshell production, with weaker HCFC-22’s after facing public criticism that CFC usage was contributing to ozone depletion. But...
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...Case Study – McDonald’s Case Study McDonald’s Worksheet 1- Introduction to McDonald’s p. 1 Quiz Which country does McDonald’s come from? The United States How big is McDonald’s among the restaurant chains in the world? The biggest. Worksheet 1: Introduction to McDonald’s The History and Development of McDonald’s McDonald’s was founded in 1955 by Mr. Ray. A. Kroc. The first McDonald’s was opened in Illinois. By August 2002, there were more than 30,000 McDonald’s in 121 places and countries all over the world, including Canada, the Caribbean, Europe, Central and South America, Australia, Japan, Korea, Southeast Asia, even Russia and China. It has the fastest growth rate in the restaurant industry. To read the history of McDonald’s, refer to McDonald’s official website: Case Study McDonald’s Worksheet 1- Introduction to McDonald’s p. 2 Setting Up Dates of McDonald’s Outlets in Different Places of the World 1955 Business started in the 1984 Taiwan United States 1967 Canada 1985 Thailand, Mexico 1971 Japan, Australia, Germany 1986 Turkey 1972 France 1988 South Korea 1973 Sweden 1990 China (Shenzhen SAR), Russia 1974 Britain 1991 Indonesia 1975 Hong Kong 1992 China (Beijing), Poland 1976 New Zealand 1993 Israel 1979 Brazil, Singapore 1994 Saudi Arabia 1981 The Philippines 1995 South Africa 1982 Malaysia ...
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...REPORT ON THE FINANCIAL EVALUATION: MCDONALD'S CORPORATION AND YUM! BRANDS REPORT ON THE FINANCIAL EVALUATION: McDONALD'S CORPORATION AND YUM! BRANDS TAMARA AYRAPETOVA The aim of this paper is to perform financial analysis by using financial ratios and to comment, evaluate, and understand the origins of the results by using the comparison of two companies chosen as a case study. The McDonald's Corporation is the largest fast food restaurant in the world. McDonald's Corporation statistics base it in over 119 countries and it serves more than 68 million customers daily. The company's revenues are coming not only from its primary products like hamburgers, cheeseburgers, etc., but also from rent, royalties, and fees paid by the franchisees. This report will look at the financial statements of the McDonald's Corporation over the past 3 years starting from 2010 through 2012. The author of the paper will apply financial ratios to analyze company's position and to identify patterns and trends. She will then compare the results of the analysis with one of the biggest competitors of McDonald's - Yum! Brands Inc. and the industrial averages. Yum! Brands Inc. is a US based corporation. It includes famous brands like KFC and Pizza Hut in their chain. Currently Yum! Brands are the largest competitors McDonald's has in the fast-food industry. To compare the two companies financial statements will be taken from Yahoo Finance (2013). Unauthenticated Download Date | 12/14/14 11:28 PM ...
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...increasing amount of Americans are gaining weight and much of this blame is put on fast food establishments such as McDonald’s, Wendy’s, Burger King, and Krystal’s, to name a few. According to Warren Belasco and Philip Scranton (2002), “The increasing consumption of convenience foods is an international trend influenced by changing lifestyles” (p. 3) From a superficial perspective, this doesn’t seem like much of a problem. However, Robert Jeffery and Simone French (1998), authors of the article Epidemic Obesity in the United States: Are Fast Food and Television Viewing Contributing? assert that “Obesity is an important public health problem that, in recent years, has reached epidemic proportions” (p. 277). In fact, some are calling the problem the “obesity epidemic.” Several lawsuits against fast food establishments have been filed by those who are overweight. It’s a serious problem, one that cannot be ignored. Before anyone assumes that it’s just the United States, think again. With the increasing number of fast food establishments in countries other than the United States, such as China, Japan, and Brazil, so are obesity rates. The obesity epidemic can no longer be ignored and must be solved. While the problem is known, the source of it is not and must be traced. What exactly is the source of obesity? Many people believe it to be fast food restaurants such as McDonald’s, Burger King, Wendy’s, Krystals, Kentucky Fried Chicken and Taco Bell. After all, are they not the ones distributing...
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...Harmony J., "Corporate Social Responsibility and Financial Performance: Does it Pay to Be Good?" (2012). CMC Senior Theses. Paper 529. http://scholarship.claremont.edu/cmc_theses/529 This Open Access Senior Thesis is brought to you by Scholarship@Claremont. It has been accepted for inclusion in this collection by an authorized administrator. For more information, please contact scholarship@cuc.claremont.edu. CLAREMONT McKENNA COLLEGE CORPORATE SOCIAL RESPONSIBILITY AND FINANCIAL PERFORMANCE: DOES IT PAY TO BE GOOD? SUBMITTED TO PROFESSOR MATTHEW MAGILKE AND DEAN GREGORY HESS BY HARMONY J. PALMER FOR SENIOR THESIS FALL 2012 DECEMBER 3, 2012 Acknowledgements I have many people to thank for their help with this study. First and foremost, I want to thank my thesis reader, Professor Magilke, for all his help. This study would have be quite difference without his constant guidance and our numerous meetings and e-mail exchanges. Second, I would like to thank Mary Martin, the Reference & Instruction Librarian for Business and Law, at the Claremont Colleges Library. Obtaining the CSR data would not have been possible without her help and the library’s funding. Third, I want to thank the Kravis Leadership Institute for awarding me the Kravis Leadership Institute Leadership Thesis Fellowship to help fund my thesis research. Fourth, I thank Professor Massoud, Professor Orr, and Professor Wallace for providing me with valuable research resources. Fifth, I want to thank Greyson...
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...[pic] McDonald's and the Environmental Defense Fund: a case study of a green alliance Sharon Livesey Originally published in…The Journal of Business Communication • January 1999 In 1987, the United Nations World Commission on Environment and Development, which had convened to address the global ecological crisis, produced Our Common Future (the Brundtland Report). This watershed event established the conceptual underpinnings for environmental politics and debate in the 1990s by reframing the problem of the natural environment as one of sustainable development. In the wake of this reframing, a new practice in environmental management emerged - that of green alliances or partnerships between business and ecology groups (Westley & Vredenburg, 1991, pp. 71-72). These alliances, considered one of the ten most significant trends in environmental management and the greening of industry (Gladwin, 1993, p. 46), appeared to signal a sea change in the way business, as well as environmentalists, could respond to the ecological impacts of firms' economic activities. Indeed, environmental partnerships offered both business and ecology groups the potential for a new rhetorical stance. Business communication scholarship has identified a variety of rhetorical strategies adopted by corporations in the face of environmental controversy: defensiveness and apologia (e.g., Ice, 1991; Tyler, 1992), competing information campaigns (e.g., Lange, 1993; Moore, 1993), or retreat (e.g., Seiter...
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...Financial Analysis of the McDonald’s Corporation MCD, NYSE (New York Stock Exchange) One McDonald's Plaza, Oak Brook, IL 60523 Map +1-630-6233000 (Phone) +1-630-6235700 (Fax) Abstract McDonald’s is the most famous and well-known fast-food company in the world. This case study examines McDonald’s from a financial standpoint. This case study will be broken down in three parts. Discussed first will be a full description of McDonald’s corporation, including its background, followed by a financial overview with comments for each financial category reviewed, the a comparison of financial ratio’s between McDonald’s and it rival Burger King derived from their 2009 and 2009 annual reports. Finally a support will be provided based off of all findings. Part One: Company Description The McDonald’s Corporation is a well-known restaurant chain that franchises and operates fast food restaurants worldwide. Reuters (2011) states that each restaurant is operated either by the Company or by franchisees. This includes conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The company’s mission is to be our customers' favorite place and way to eat (McDonald’s, 2011). Company history McDonald’s history originates in 1940, when it started out as McDonald’s Bar-B-Que by Dic and Mac McDonald. In 1948 McDonald’s was officially founded serving only nine items, which included a 15-cent hamburger...
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...SWOT Analysis | What is SWOT Analysis? | Examples of SWOT Analysis SWOT analysis was originally conceived and developed in the 1960s and its basic organising principles have remained largely unchanged in the field of strategic management since that time (Kotler et al., 2013). It is, as Ghazinoory, Abdi and Azadegan-Mehr (2011) comment, a systematic framework which helps managers to develop their business strategies by appraising the internal and external determinants of their organisation’s performance. Internal environmental factors include leadership talent, human resource capabilities, the company’s culture as well as the effectiveness of its policies and procedures. In contrast, external factors include competition, government legislation, changing trends, and social expectations (Johnson, Scholes and Whittington, 2008). The SWOT analysis framework involves analysing the strengths (S) and weaknesses (W) of the business’s internal factors, and the opportunities (O) and threats (T) of its external factors of performance (Ghazinoory, Abdi and Azadegan-Mehr, 2011). Through this analysis, the weaknesses and strengths within a company can correspond to the opportunities and threats in the business environment so that effective strategies can be developed (Helms and Nixon, 2010). It follows from this, therefore, that an organisation can derive an effective strategy by taking advantage of its opportunities by using its strengths and neutralise its threats by minimising the impact...
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...McDonalds Case Study Michele Simpson Hodges University MNA 4480 Dr Wyant April 12, 2012 Introduction The purpose of this paper is to conduct a case study on Mc Donald’s Corporation. The writer will perform a SWOT analysis, suggest an appropriate mission and vision statement for this company and will provide recommendations for the future success of Mc Donald’s Corporation. Mission Statement “The mission statement defines the direction in which the organization is heading and how it will succeed in reaching its desired goal” (Peter & Donnelly, 2009, p. 8). A mission statement should describe the morals of the business as well as the products offered, target market and the company’s commitment to the consumer. According to the information presented in this case study; Mc Donald’s Corporation does not have a mission statement. The student believes that an appropriate mission statement for this company would be to provide our customers with high quality food and superior service at an affordable price. Vision Statement The vision statement describes where the organization wants to be in the future. The vision statement also describes the purpose and values of the organization, but in future terms. “A clear vision provides the foundation for developing a comprehensive mission statement” (David, 2011, p. 43). According to the information presented in this case study; Mc Donald’s Corporation does not have a vision statement. The student believes that an appropriate...
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...The coffee spill lawsuit against McDonald’s launched a host of other lawsuits against the same company. What are McDonald’s social responsibilities towards and consumers and consumer’s responsibilities towards McDonald’s? Compare, contrast and analyze this and determine what type of actions a company could make to meet this ethical obligation, and why it must be considered in these relationships. The Coffee Spill Heard Around The World Corporate Social Responsibility, Consumer Responsibility, And Protection The social economic, legal, and ethical responsibilities that McDonald’s has towards its consumers in the Liebeck case, and cases similar to it, pretty much go hand in hand. McDonald’s should be responsible legally for the harm that it caused, for the hospital bills, and just for the sake of good will. McDonald’s messed up and should have at least apologized for its mistakes instead of blaming the consumer for everything that happened. “More than 700(!) claims had been made against McDonald’s, and many of the victims had suffered third-degree burns similar to Mrs. Liebeck’s. Yet the company had refused to change its policy” (www.slipandsue.com, 2010, para. 8). When getting as many complaints as seven hundred in total between the ten years of nineteen eighty two and nineteen ninety two (www.knowledgerush.com, 2009, para. 4), prior to this case it is easy to ignore the isolated situations when you consider the fact the $2.7 million initially awarded...
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...McDonald’s Corporation A case study Q1:- What are the different dimensions of Quality that must be emphasized by McDonalds to remain competitive in the food industry? Ans:- the different dimension of quality which McDonald must be emphasized to compete in food industry market are Reliability or consistency in their product throughout the world, giving quick service to their customer and Aesthetics which means color style decoration of franchises, these all play major role in customer satisfaction. Which mostly give it advantage from their competitors. In the case the McDonald adopted new innovation to speeding their service and The McDonald should more emphasized on the adaptation of new technology which is helpful for speeding up their services and may help to improve their performance in other area to satisfy their customer and may compete with their competitors in the food industry market in future. Reliability is another dimension of quality that give advantage from competitors to McDonald that it give same product everywhere which means that in every franchises give same quality product to their customer as a result more loyalty from customer side. It increases customer satisfaction. Q2:- Among the six concepts of TQM which one are adopted implemented by McDonalds? McDonald is using concepts of TQM which are as follows with example. 1: Leadership A committed and involved management to provide long term top to bottom organizational support to implement over all...
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