Extra Credit 1.) With the size and marketing power that McDonald’s has currently, and the global market containing over 6.7 billion people this allows McDonald’s a huge access to tap into other countries and take market share. It’s pretty common sense; the larger amount of people you can access through your company the larger you can grow your business, and McDonald’s has captured on this probably better than the majority of large companies in today’s market. McDonald’s originated in the United States but Europe currently has a larger sales volume globally. Word of mouth is one of the best ways to increase sales, McDonald’s understands this and it’s primarily why their slogan is “The same great taste” which essentially means you can have the same burger here in America as you would anywhere else in the world.
2.) I believe franchising is the best way for McDonald’s to continue its global growth. Over 70% of McDonalds are currently franchise based. The ability to become a franchise owner is on the rise around the world, with small businesses trending downwards in the past 10 years investors are realizing opening a large franchise is a safer play. One of the best reasons to invest in a franchise is the simple fact that McDonald’s essentially markets themselves, don’t get me wrong you will pay a large amount in franchise fees; but the simple fact is if it’s one thing people like, it’s consistency and McDonald’s is without a doubt consistent.
3.) One of the negative forces McDonald’s might face is legal and regulatory forces. In a sue happy era it seems like large companies are a focus point for people to get some kind of compensation for a slip up by a large corporation. Look back a few years ago, when a lady spilt hot coffee on her lap and sued McDonald’s because there was no warning label. If we have to start explaining basic functions and warnings in life it seems all companies are going to need a manual to hand out when they serve a simple item such as a small French fry order.
4.) Some of the critical business issues McDonald’s must continue to execute are developing and mentoring employees, building a community driving