OVERVIEW TO MCDONALDS’S BUSINESS REPORT

McDonalds remains one of the leading fast food restaurant globally and more specific in United Kingdom. The company is aid to serve over 68 million clients in 119 countries across 35,000 outlets daily. Set up in 1940, McDonalds began as a barbecue restaurant that was started by its founder Richard and Maurice McDonalds. McDonalds specializes hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. Using some countries, McDonalds provides additional taste alternatives like Salad. McDonalds also specializes in fish, salad, wraps, fruits, smoothies and seasoned fruits. The company also sells various types of chicken sandwiches and hamburgers (Gilbert, 2009).

It is also important to understand that in other countries, McDonalds sells McRib sandwich, wraps, salads, vegetarian items as well as other localized products. It is important to understand that some of these products are seasonal and are only sold when their demand is high. The different social set up in different countries in which the company operates dictates the kind of products sold. For instance, the company sells beer in Germany and other western European countries.

 

1.0 INTRODUCTION TO ENTERPRISE AND ENTREPRENEURIAL

 

Venture has been given different definitions from different quarters. For instance, it has been defined as business enterprise where some risk is involved with expectation of a gain. It can be explained as a business forms your own business which often entail inside buy and sell associated with items in addition to companies to be able to consumers out there. According to Beaver ‘It has become an established fact that the little company sector is certainly a fundamental element inside organization of your modern-day, progressive in addition to radiant economy’. Place of your start up business opportunity which gains for the economic system from the region and can triumph over your recession period while using the revolutionary ideas.

The meaning associated with Entrepreneurial is definitely the one who plans in addition to performing a small business if you take about economic chance. In accordance with Beaver thought which ‘In unique, it’s concerned with your varieties of measures in addition to conduct often classified as entrepreneurial which appear to characterize your kick off in addition to increase profitable in a company venture’. Entrepreneurial involved with company determined by unique marketplace such as producing, wholesaling, selling or assistance to be able to contend matters pertaining to marketplace demand.

 

2.0 THE BUSINESS IDEA

This company strategy is usually to identify McDonalds within UK and other parts of Europe. McDonald’s hamburger and other fast foods available in the market can be special for the customers within, USA and other parts of Europe. The idea behind this company is becoming a global venture where its presence will be felt in almost every part of the world.  There’ll be a superb chance for McDonalds to function the business enterprise within Britain, USA and other European countries as a result of local weather and sought after upon meals and beverages by means of customers (Collin, & Shemko, 2009). McDonalds will function even more efficiently mainly because Europe is a made of developed countries most of which enjoy capitalist economy. Product differentiation associated with McDonalds of which make the customers to have a variety to choose from thus having a positive impacts on the lives of customers. The modern world has resulted to a large number of consumers to have adequate information as far as health and fitness is concerned. As a result, the company has produced healthy products that have the best fat and cholesterol content that is not harmful to human health. McDonalds also offers variety of choices for consumers to make choices depending on their tastes, preferences and social considerations.

3.0 DEVELOPMENT STAGES OF THE BUSINESS IDEA

In order for a business idea to be implemented and be a success to the entrepreneur, it is important to understand the different stages involved in implementing a business idea. McDonald’s enterprise will need to consider and build a strong platform in every stage to achieve success. The company is known to have a strong foundation and for this reason it is expected to get positive results in this noble course (Gilbert, 2009).

Development of business idea is mainly concerned with the growth of the idea. As a result you will find three levels that create a prosperous entrepreneurial enterprise. The three levels include:

1. Planning: under this section, there three fundamental roles that the leadership of the organization must fulfill namely:

• Developing of a business idea
• Discovering opportunities.
• Evaluating opportunities.

2. Implementing: after planning, the next step involves implementing the developed idea and taking advantage of the opportunity. The implementation process has two major functions namely:

• Search relevant resources.
• Created new business ventures.

 

3. Managing: after implementing the business ideas and opportunities, the next step involves managing the developed ideas to realize organization objective. The management process entails:

• Final strategic decision making.
• Leadership in the operation process.

McDonald’s stress about the improvement phases so that can accomplish the operations regarding developing the modern business ventures. Also, there are major aspects which McDonald’s must deal with towards the improvement of the company strategy and they include;

• Business Plan
• Cash Flow Forecast
• Marketing Plan
• Human Resources Plan
• Operations Plan

3.1 BUSINESS PLAN

This company approach according to McDonald’s is aimed at achieving the objectives of the organization both within and without the organization. McDonald’s principal target and objectives is to increase revenue and also produce products as to the desire of the people in the market. McDonald’s business approach as follows;

• Supply superb customer service to which will give utmost satisfaction to the clients
• be concerned in expanding its market as well as venturing into new markets.
• Construct great connection along with stakeholders that will result to mutual respect.
• Offers: a progressive expertise which can be distinctive on the market.
• Layout a contemporary and also neat surroundings bistro when they offering meals which will play great role in enhancing customer satisfaction.

 

In addition, McDonald’s always updated with the people’s current market desire within the food marketplace. The company is usually involved in research practices by simply conducting a niche exploration to find considerable current market information. McDonald’s is also concerned with creating a strong brand image which results to increased consumer respect (Saunders & Lewis, 2009).

The cash flow forecast is important aspect that McDonald’s need to take into consideration in order to overcome the financial crisis of liquidity in the future. It also the key aspect of financial management of a business which overlook the cash flow that will ensure sufficient capital to operates the business officially. The cash flow forecast of as follows

McDonald’s

• The initial franchise fee is $48,500 plus GST and restaurants range from $390k – $490k plus GST depending on site and other factors.
• The store revenues are forecasted to be $1,800,000 in the first year of operation and expected to increase at an average annual rate of 15 per cent per year.
• Expected-operating profit for the first year’s accounting is $350,000.

McDonald’s anticipates continuing achievement due to its proper location, higher typical excellent product or service as well as strong company picture on the market as well as invention and innovation skills associated with the company. .

3.3 MARKETING PLAN

Marketing involves making the products known to potential customers, where it can be found and at what price. In most cases, this aspect is achieved through advertising. An effective advertising strategy, advertising blend types an essential portion on the central of the online strategy. Marketing in most cases is defined by the 4 P’s hypothesis. The hypothesis is concerned with place, product, promotion and price.

Product or service McDonald’s add item difference that’s distinctive which gives impressive encounter towards the consumers. In addition, McDonald’s also requires the information to get to would be customers unaltered. Value Price ranges involving McDonald’s hamburger reaches high quality price on account of normal sale towards the consumers (Sherman, 2005). The store price with the hamburger and other sandwiches is based on this dimension along with quality. McDonald’s enjoys a strategic position within the market place thus giving the company a strong market share. McDonald’s creates recognition through managing enterprise in a way that its location captures the marked crowd out there (Collin, & Shemko, 2009). McDonald’s special offers tactic has also been very effective in its marketing strategy. Promotions at McDonald’s have also been on the rise and are usually carried out as follows;

• Offers new along with quality hamburger and sandwiches using McDonald’s vouchers
• Traditional advertising such as word of mouth through experience among family and friends
• Web tactic such as McDonald’s established website along with social media such as face book  and twitter

3.4 HUMAN RESOURCES PLAN

Human resources are classified as human population in an organization that helps it achieve its objectives. They are valued as the most valuable assets that any organization can boast of. Human resources strategy regarding McDonald’s is in levels as follows;

1. Recruitment
2. Interview
3. Selection
4. Training
5. Appraisal
6. Rewards

McDonald’s also carries out a thorough investigation on requirements and qualifications to ensure the right people are hired for the right job. These essential factors include;

• Qualifications
• Retail experience
• Responsible
• Hard Working
• Friendly
• Honest

3.5 OPERATIONS PLAN

Operations approach is significant based on the way the products perform in the day to day operations. McDonald’s make use of a properly defined hierarchy which is well communicated to all staff members and moves vertically from the juniors to top most management level. That does not just delivers motivation to the staff members but in addition tends to make improvement plus the route towards achievements accessible. In addition, this hierarchy will certainly build rewards for a few staff members to help maintain the daily organizational operations (Mieth, 2007). Another detailed approach McDonald’s could possibly undertake would be to retain the services of young staff members from the outlet to enhance their experience in the place of work. Despite the fact that some of them include little if any experience from the area, they are usually by far the most passionate and most prepared to fulfill expectations in the course of their exploration. His or her lack of requirements is usually paid for through their determination to function intended for reduce wages and using easy to use, grilled devices and food preparation points together with support services. The age of most of these staff members may also help with the image of McDonald’s because it’s geared toward teenagers and young adults.

4.0 CHALLENGES AND OPPORTUNITIES OF THE DEVELOPMENT STAGES

McDonald’s will come across several challenges as it pursues the opportunities for its success. The organization will be faced by both internal and external forces that will pause both challenges and opportunities in pursuing its objectives. For better understanding of these challenges and opportunities SWOT analysis which is usually an analysis of firm’s strength and weaknesses. Therefore, SWOT analysis can easily recognize McDonald’s challenges in addition to opportunities on the development periods (Seyoum, 2009).  McDonald’s incorporates a very good reputation with the higher standard quality merchandise that serves as strength to the company. Shoppers classified McDonald’s products as healthy more tasty delicacies as compared to their competitors. McDonald’s make a robust manufacturer picture already in the market through launching merchandise difference towards customers. The company is also expanding its range of products where it is currently selling beer in and meat pie in Europe. The company must also deal with the challenge of the direct and stiff competition in the fast food industry. However, the differentiation and high levels of invention and innovation in the company has left the company as the leading company in the industry.

Another challenge that McDonald’s is the expensive online marketing that is likely to eat more on the company’s profits. The actual franchise is restricted in order to variable area people the disadvantage regarding franchise to utilize inside a selected area. Full price selling price on the fresh quality salads are at your top quality selling price when compared to additional primary competitors already in the market (Collin, & Shemko, 2009).

The industry calls for constant review of the products to be offered in the market. This call for McDonald’s to engage in constant research every now and then to match the dynamic market and this could be very expensive. Moreover, McDonald’s can also deal with reduced turnover during economic downturn periods especially the economic recession of 2009.

5.0 FEASIBILITY OF THE BUSINESS VENTURE

McDonald’s is usually internationally regarded as one of the world’s leading international retail as far as fast foods is concerned. In each and every home based business venture go through the pluses and minuses at the same time of acquiring the company. McDonald’s will need take into consideration the stages of advancement and also functioning the newest business enterprise properly out there. This is very essential in creating a brand name of the company, McDonald’s have to think about a survey to build this awareness and also record the target markeT (Harris, 2009).

McDonald’s organization techniques usually are the following;

• Introduce fresh good quality products in the food industry.
• Offers different flavours and size to eat in consumers.
• Introduce new seasonal promotional offers in every season.
• Option to have extra food like burgers, salads, wraps as well as unlimited drinks.
• Direct target market is on young consumers.
• Provide excellent customer service to every consumer.

McDonald’s must carry out feasibility study of the business to encounter any challenge that could hinder the realization of the firm’s objectives. The company should take responsibility of identifying feasible market place for the overall success of the organization. In addition, McDonald’s differentiation which has had positive results towards current market has been as a result of feasibility study which has resulted to the company providing the products that match consumer demands. The company has also been able to provide healthy food products which have been a milestone towards achieving the success (Kincheloe, 2002). The organization has also been environmental friendly even in their packaging which has resulted to improved brand image. The ever increasing population in different parts of the world should be a prospective market for McDonald’s. Most European countries and other major parts of the globe register daily growth in population which serves as potential market for these products (Abrams, 2003). Since the company is conversant with the health concerns of the population, then it is advisable for the company to be very much concerned with contents in their products which should be clearly indicated to boost consumer confidence.

6.0 PROFITABILITY OF THE BUSINESS VENTURE

Profitability is always of great concern to management of any organization.  Just to be within the earnings from the business venture McDonald’s will look in internal as well as external operations to ensure that the firm remains profitable for its sustainability. There are many means can help improve the enterprise thus making its operations efficient and effective. In order to determine the profitability of this organization, it is important to consider the following resources;

• Financial resources
• Human resources
• Consultation
• Property
• Equipment
• Technology
• Power supply
• Transportation
• Raw material
• Training and development

McDonald’s is in the business of franchise that declares each franchise store could make at least $150000 per month on average based on 1500 consumers a day. Others have also hit on the idea of individualizing the design and decor of each outlet, thereby avoiding the uniformly brand feeling of a chain. It has proved a highly successful formula. By 2012 the company had annual revenues of about $27.5 billion and profits of about $5.5 billion as reported by BBC.   Subsequently, these paragraph which gives an image concerning profit (Stralser, 2004). The company has over the years tried to excel in terms of profitability to ensure that it remains competitive and sustainable as long as possible. It has been recognized as one of the most profitable firms in the fast food sector as it enjoys the largest market share in UK which forms the largest market for fast food products.

 

7.0 RESOURCES ALLOCATION OF THE BUSINESS VENTURE

Every single business venture need to understand how its different resources are allocated for the overall effectiveness of the organizations operations. The human, financial, physical and property should be allocated in such a way that the best results are achieved. At times it is always important to consider profit declaration in resource allocation.

McDonald’s isn’t going to review the complete annual fiscal profits declaration because of exclusive along with top secret purpose. The methods allocation is usually an important because it exhibits bodily cash flow on the operations of the enterprise (Collin, & Shemko, 2009). Within the annual fiscal profits declaration show home elevators income, charge connected with sales, managing costs, basic or perhaps current administration costs which usually end up getting the net gain of the enterprise. Alternatives cash flow declaration produce home elevators managing routines, making an investment routines, loan routines with all the cash equilibrium at the conclusion of the time period. This particular signifies that the particular annual fiscal declaration is essential in the flooring business.

 

8.0 CONCLUSION

McDonald’s is usually around the world called an excellent organization which has a good status in addition to company image from different quarters. It is important to understand there are positive in house problems that McDonald’s get that are the particular supervision workforce.  It is important to understand that the organization requires that the objectives are conversant with every staff member. This will help the organization to implement its business plan accordingly (Collin, & Shemko, 2009). McDonald’s is often a very well create organization with a correct composition of the business thought which in turn issue for folks is usually taken into consideration, largely the particular buyers, companies in addition to staff members as well as franchisees.  Furthermore, McDonald’s ensure that every franchisee can attain important revenue in the commercial together with self-assured in addition to help in the act in addition to functioning of the business every so often.

 

References

Abrams, R. (2003). The successful business plan: Secrets & strategies (4th ed.; Deluxe binder ed.). Palto Alto, Calif.: Planning Shop.

Collins, K., & Shemko, J. (2009). Exploring business (Canadian ed.). Toronto: Pearson Canada.

Gilbert, S. (2009). The story of McDonald’s. Mankato, MN: Creative Education.

Harris, P. (2009). None of us is as good as all of us how McDonald’s prospers by embracing inclusion and diversity. Hoboken, N.J.: John Wiley & Sons.

Kincheloe, J. (2002). The sign of the burger: McDonald’s and the culture of power. Philadelphia: Temple University Press.

Mcdonald’s Behind the Arches. (2008). Paw Prints.

Mieth, H. (2007). The history of McDonald’s. München: GRIN Verlag.

Niven, P. (2006). Balanced scorecard step-by-step maximizing performance and maintaining results (2nd ed.). Hoboken, N.J.: Wiley.

Saunders, M., & Lewis, P. (2009). Research methods for business students (5th ed.). New York: Prentice Hall.

Seyoum, B. (2009). Export-import theory, practices, and procedures (2nd ed.). New York: Routledge.

Sherman, A. (2005). Raising capital: Get the money you need to grow your business (2nd ed.). New York: AMACOM.

Stralser, S. (2004). MBA in a day what you would learn at top-tier business schools, if you only had the time! Hoboken, N.J.: J. Wiley

 

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