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Mcdonald's Case Review

In: Business and Management

Submitted By jessicarudkin
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McDonald’s Corporation
Analysis & Prognosis

July 18, 2012
Table of Contents Overview 2 Analysis 2 The History of McDonald’s 2 Mission and Values 3 Company Structure and Organization 3 Sales, Profit, & Cash 4 Key Metrics 5 Position in the Industry 5 Stock Market Performance 6 Strengths and Weaknesses 7 Opportunities and Threats 8 Corporate-Level and Business-Level Strategies 10 Significant Product Failures 10 Prognosis 10 Sales 10 Profits 11 Key Metrics 11 Position in the Industry 11 Conclusion 11 Works Cited 12 Appendix 13 Appendix A 13 Appendix B 13 Appendix C 14 Appendix D 14 Appendix E 15

Overview
McDonald’s Corporation is the world’s largest fast food restaurant chain. I have done hours of extensive research on McDonald’s and the limited-service restaurant industry and have been eating McDonald’s for over 20 years. I will discuss McDonald’s past performance versus the industry and provide a prognosis for the future.
There is a rich history behind McDonald’s, starting in 1948 with the McDonald brothers. Ray Kroc started franchising McDonald’s in 1955 and from there built a corporation. Most missions and values still used today are those Kroc implemented.
McDonald’s is structured as a multifunctional form. It is mainly organized by geographical area. There are four main geographical areas and those are then it is broken up even further.
McDonald’s has had steady revenues over the last ten years and I believe these revenues will continue to increase over the next decade. Its net income has been increasing, but in the coming years it will start to decline due to increasing meat prices and labor costs.
Two metrics specific to the fast food industry include labor cost and food cost. McDonald’s is average in food cost and better than average in labor cost. I will explain later how these will

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