Company Analysis Essay on MacDonalds Corporation

2021-05-11 09:45:36
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Introduction

The company was established in 1940 as MacDonalds Corporation. It is a limited company offering restaurant services and fast food. It has over 35,000 branches of restaurants in more than 100 states. The company has an excess of 4 million staff members across the world and in a day, MacDonalds serves around seventy million customers. As of 2014, the restaurant had the biggest market share in the restaurant industry for fast food of about 17% across the United States of America followed by YUM which is its closest rival (Datamonitor, 2010). The restaurant offers a menu that is uniform including, chicken sandwiches, fries, hamburgers, chicken nuggets, soft drinks, the quarter grinder made of salads, desserts, cheese, wraps as well as several beverages.

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Mission, Vision, Values, and Organizational Culture

The vision statement of the company is that its entire vision is to be updated and a company that is progressive in the deliverance of customer experience which is contemporary. In this case, updated means that the company will work towards where it wants to be in the future while being progressive is on attaining customers' expectations. The firm focuses on the deliverance of food of high quality, great tastes, and excellent experience making customers appreciated and welcome. On the other hand, the mission statement states that the mission of the company is about being the favorite to its customers as a place for food and drinks. The company is dedicated to being an appealing place of work to its employees; being strong, optimistic to the community; as well as delivering service, value, quality, and cleanliness to its customers' expectations of Golden arches, a symbol which is much trusted worldwide (Love & Miller, 2015).

Firms in the restaurant sector use several strategies which make them unique and different from their competitors. MacDonalds supplies its customers with an experience using the trademark of its quality, service, cleanliness, and values (QSC&V). In delivering its experiences, it practices a strategy known as a plan to win which is supported by its approach of a stool which is three-legged. Plan to win is a strategy initiated with the focus of experience to customers using the 5 Ps: product, price, people, promotion, and place. The three legs are the employees, the suppliers, and the owners of the company. The general belief in MacDonalds is that if the stool misses any of the legs, it cannot stand. (Gould, 2010)

Organizational Structure and Operations

The organizational structure of any firm describes the scheme by which the components of the organization are coordinated to attain its objectives. The organizational structure of MacDonalds enables it to manage its markets on the basis of levels of performance. Being the leader in the fast-food industry in the world, it maintains a revolution that covers present issues as well as those emerging in the market. It keeps on developing new products to maintain customers loyalty. Its structure focuses on adapting to the business environment which is evolving. The structure is categorized into divisions and each division specializes in a particular operational place. This is aimed at supporting the flexibility and autonomy of the organization. The features of MacDonalds are global hierarchy, performance-based segments, and function-based teams (Love & Miller, 2015).

On the other hand, in ensuring that the company preserves its connections with markets internationally, it provides menus for food that is relevant locally. For instance, in China, it serves burgers that are black and white while in India it serves veg pizza Mcpuff. Wendys and Burger king are their main competitors in the United States. The restaurant as well as its rivals practice the model of franchising and this model is company operated. Some of the domains that show that the model exists in the company are the PowerShares Dynamic Food & Beverage ETF (PBJ) and the PowerShares Dynamic Leisure and Entertainment ETF (PEJ). These domains are used to run their chains of restaurants worldwide. The market segmentation of MacDonalds is divided into four: Europe, Africa, Asia, and the US or OCC (other countries and corporate). An estimated 19% of the restaurants of MacDonalds are owned by the company while 81% are franchised (Gould, 2010).

CSR Analysis

Customers: The firm has a framework for sustainability and corporate social responsibility intended to make the company lead in the future through the generation of positive and measurable impressions to its customers. It offers incentives that help maintain the customer base and their loyalty. Therefore, they help the customers to shop for more with little cash.

Employees: McDonalds hires employees that are qualified to perform their duties and this is especially from the community. This helps the employees to serve the disadvantaged in society with their expertise. The employees are also awarded for their exemplary performance

Community: The community has access to some of the projects that have been initiated by McDonalds. This has helped to reduce the cases of poverty and easy access of the community members to resources that help them to develop meeting their needs.

Investors: McDonalds offers micro-credit loans. This helps for persons interested and legible to borrow to start a business that helps in the development in poor regions.

SWOT Analysis

Strengths

The firm is that it is very popular and many potential investors know about it and a willing to invest in it because it generates high profits and the shareholders are paid high dividends.

It has many restaurants in different countries apart from the US and 60% of its returns are from these states (Datamonitor, 2010).

Weaknesses

The major problem facing the company is increased competition in the restaurant industry from restaurants like Yum brands, Starbucks, and Burger King. Many customers are also viewing the restaurants' food as of low quality compared to other restaurants.

Opportunities

The Company should capitalize on its brand name and popularity to compete effectively in the market.

Threats

There are many emerging restaurants with quality food such as Shake Shack. These chains of restaurants would in the near future be a threat to MacDonalds strongest markets by establishing themselves hence resulting in the decrease in MacDonalds profits and popularity of shares.

Recommendations

MacDonalds should focus on improving its products and services as many customers are complaining that their food is of low quality compared to other restaurants. This would help in maintaining customer loyalty. T

The company should use its strengths of being the most popular company in the fast-food restaurant industry to attract more customers and investors through CSR initiatives that have a positive impact on society.

References

Datamonitor (Firm). (2010). McDonald's Corporation. New York, NY: Datamonitor.

Gould, W. (2010). Mcdonald's. Slough: Cherrytree Books, http:/www.aboutmacdonalds.com/mcd/investors/company_profile.html

Love, J., & Miller, A. (2015). McDonald's: Behind the Arches. New York, N.Y: Bantam Books.

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