Essay, Pages 4 (793 words)
An investigation into McDonalds which looks at how they are performing globally and an analysis of their corporate structure/culture. McDonalds is the world’s largest fast food chain restaurant with over 31,000 outlets in 118 countries and employing over 1. 6 million people globally. Out of the 31,000 outlets, 1000 of them are in the U. K, with sales exceeding over 1bn annually. McDonalds serves over 47 million customers daily in the 118 countries they operate in and have a market capitalisation of $60. 08bn in the financial year of 2008.
McDonalds initially use to sell hamburgers, cheeseburgers, fries, soft drinks, milkshakes and desserts. However, recently it has introduced salads, wraps, fruits for the health conscious individuals and pressures from public/campaigners alleging them in the contribution of the obesity levels. 78% of the McDonalds are owned by the franchisee’s and the remaining 22% are owned by the corporation itself. The firm’s 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 and their sales revenue ending in the financial year 2007 exceeded $22. 8bn. Furthermore, in May 2008 McDonalds announced that, in the U. S. and Canada, it will be introducing cooking oil for its French fries that contain no trans fats. The company will use canola-based oil with corn and soy oils by year’s end for its baked items, pies and cookies. Task 1 Mission Statements contain important information about a company in a nutshell.
As the name suggest, it includes the company mission i.
e. what the company does, its products, services and its customers. These types of statements focus on the events ‘today’ whereas vision statements contain details of the company’s future i. e. its vision for the future that could include what the company hopes to achieve in the future. Therefore, a vision statement helps to reinforce a company’s future direction and thus helps motivate the employees to work towards the company’s goal. McDonald’s mission is to “be their customer’s favourite place to eat.
” Their worldwide operations have been aligned around a global strategy called “Plan to Win” revolving around the five basics of an exceptional customer experience – People, Products, Place, Price and Promotion. They are committed to improving their operations and enhancing their customers’ experience. “McDonald’s vision is to be the world’s best and quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile”.
An aim or an objective is a term used interchangeably, however in general the term aim/objectives means;”…. a defined, measurable result to be achieved within a stated time”. Adapted from: Aims, Objectives, mission/vision PowerPoint presentation on Moodle. McDonald’s key objective is to serve good quality food in a friendly and fun ambience so that they ensure that families/individuals receive a good customer service, which will result in repeat business and hence loyal customers.
This will in turn increase sales revenue through people purchasing more products from them and it also links into their vision statement which states that they want to give customers outstanding quality and make every customer in the restaurant smile.
Another objective for McDonalds is to be a socially responsible company i. e. behaving in a way to help the society. An example of this is the introduction of healthy menus e. g. salads, grilled chicken sandwiches and using cooking oil which has no trans-fat. This would help curb the obesity epidemic as it would result in less people suffering from heart problems and other problems associated with the junk food. Another example is giving back something to the community i. e McDonalds have their own charity organisation in which they give money from their profits to support good causes.
Moreover McDonalds want to provide good returns to its shareholders. This can be achieved through increasing their sales revenue and hence increasing their net profit, which would result in more money being paid out to the shareholders. Another way of increasing profit is through minimising their costs. The way McDonalds could achieve their aforementioned objective is through acquiring a company or merge with another company which could result in the shareholders receiving a higher dividend in the longer term, through increased profits.
Furthermore, another objective of McDonald is to provide its customers with food of a high standard, quick service and value for money deals. This would consequently result in better restaurant operations, convenience for the customer as they are receiving quick service without compromising on quality and receive value for money offers. Another objective of McDonald is to achieve their target financial performance; this would be to achieve a high turnover and increase the amount of net profit.