Mcdonalds: Case Study Of Mcdonald's

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0. Executive summary McDonald's is the world's largest chain of fast food restaurants, serving around 68 million customers daily in 119 countries across more than 36,000 outlets. Founded in the United States in 1940, A McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. It is the world's second largest private employer with 1.9 million employees, 1.5 million of whom work for franchises, recently the company expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries. McDonald’s delivered strong performance and returns to shareholders in 2007. We have continued to build on our success as a trusted global consumer brand and grow our business by creating outstanding…show more content…
In addition, 67,000 McDonald’s restaurant managers and assistant managers were promoted from restaurant staff. Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for Minorities." McDonalds invests more than $1 billion annually in training its staff, and every year more than 250,000 employees graduate from McDonald's training facility, Hamburger University. The corporation has been reporting 2% average growth in revenues over the last two years, with a significant decline in comparable store sales. The company started the year this year with disappointing financial performance, as it reported a 1% dip in consolidated operating income despite a marginal rise of 0.5% in global comparable sales and 1% growth in consolidated revenues. Diluted earnings per share also declined by 4% to $1.21. McDonald’s 2014 financial performance was disappointing, while it grew system wide sales by 1% global comparable sales decreased by 1% and operating income declined by 8%. B. Strategic posture a) Mission; McDonald Steel is dedicated to providing the Shareholders of the corporation a long term financial return, and to retaining the company's position as a premier global supplier of innovative products and services, always responsive to existing and future markets. McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast…show more content…
As a company, we strive to set the standard for ethics, professionalism, competence, and innovation. c) Strategies; McDonald’s strategy is cost leadership. This strategy involves minimizing costs to offer products at low prices. As a low-cost provider, McDonald’s offers products that are cheaper compared to competitors. However, the company also uses broad differentiation as secondary strategy. This involves developing the business and its products to make them distinct from competitors. For example, through McCafé products, McDonald’s applies the broad differentiation strategy. McDonald’s commits to these values to guide their decisions and behaviors: • Teamwork promote and support a diverse, yet unified, team. Hire experienced, qualified people who work together to meet our common goals. • Respect honor the rights and beliefs of our fellow associates, our customers, our shareowners, our manufacturers and our community. Treat others with the highest degree of dignity, equality and trust. • Accountability accept our individual and team responsibilities and meet our commitments. Take responsibility for our performance in all of our decisions and
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