Essay on Fast Food and Mcdonald

Submitted By siiiiilme
Words: 2116
Pages: 9

McDonald's Corporation

EXECUTIVE SUMMARY:
McDonald's is the world's leading fast-food company by sales with more than 33,000 restaurant in about 120 countries. It focuses on the strategy of Plan to Win, and some other strategies such as diversifying their menu, driving traffic across dayparts for snacks and beverages and remodelling outlets. North America, Western Europe and Asia Pacific are the three main regions that McDonald's concentrated, they are also the regions that McDonald's make the research and development. Besides, the distribution channel that McDonald's choose to use is franchisees, affiliate and corporation itself. For McDonald's supply chain, it imports sixty percent of poultry from Brazil and import beef mainly from British and Irish farms. In addition, McDonald's has a rational human resource management approach. For example, new employees must accept training and development. After the analysis about the risks and benefits about this company's operation in our country, I recommend that it is beneficial to us when allowing McDonald's doing business here.
Company Description:
McDonald’s operates in the industry of beverage and food, with the category involvement of fast food and specialist coffee shops it provides (MCDONALD'S CORP IN CONSUMER FOODSERVICE(WORLD) 2012). McDonald’s has annual revenue of 27,006 million in 2011, 24,075 million in 2012 and 22,745 million in 2009. There are managers and crew-the 1.7 million men and women who work to deliver the best experience every day in their more than 33,000 restaurants worldwide. McDonald’s is headquartered in Illinois, USA, but it has operations globally. Some highlights include the U.S. adding more than 350 million customer visits in 2011, European continuing to grow and generate 40% of overall revenue, Asia, Middle East and Africa doubling its contributed income over the past six years (McDonald's Corporation 2011 Annual Report 2011). McDonald’s Corporation seems to be stable and successful since its global same-store sales increased by 6%, including a 5% increase in the US. Besides, in constant currency terms, system-wide sales rose by 7% and the operating income increased by 10%. Thus, McDonald’s exceeded its long-term financial target of 3%-5% revenue growth and 6%-7% operating income growth. It is still the world’s leading foodservice operator (MCDONALD'S CORP IN CONSUMER FOODSERVICE(WORLD) 2012). In November 2012, the Great Place to Work Institutes, an organization identifies the world’s best work place, honored McDonald’s as one of the top 25 multinational workplaces, which is a result of the on-going training and the development McDonald’s provided to its worldwide workforce (McDonald’s Honored with “World's Best Multinational Workplaces” Award 2012).
Company’s International Strategy:
The important strategy that McDonald's adopted is the Plan to Win. It focused on the main drivers for their business-People, Products, Place, Price and Promotion. Besides, McDonald's extend and diversify their menu, elevating their brand experience in new ways, and strengthening their commitment to both communities they serve and the larger world around them (McDonald's Corporation 2011 Annual Report 2011). The particular regions that McDonald’s concentrates are North America, Western Europe and Asia Pacific. U.S. remains McDonald’s largest region, with 40% of value and 38% of outlets. Europe is the second largest market at 30% of total value, with the major operations in Germany, France and the UK. Asia Pacific and Latin America combined will account for 88% of absolute CFS value growth in the forecast period. From the top 10 global companies by value 2007-2011 in consumer foodservice, McDonald’s still ranks top during these years. Seven of the top 10 brands compete within the fast food category so Yum! Brands Inc. and Starbucks Corp both could be the competitors of McDonald’s. Rival Yum! It had 4,126 fast food outlets in China to McDonald’s 1,387 outlets…