Executive Summary
McDonalds is a highly respected organization in the United States as well as the rest of the world. The company is famous of its exclusive contribution and competition in the fast food industry. The company has a wide history that dates back to 1940 since the company was started. Since that time, the company has been operational through exclusively unique strategies that define its prowess in the fast food industry and as an international company from the United States.
The company chose the franchise business strategy to try to reach the global markets, which were extremely promising and which had exclusive market for its products. It was the first business of its kind. Therefore, it was assured of an extremely wide market that would ensure its success.
The company has always been in exclusive management with the McDonalds brothers whom were the founders setting the pace. Since then the company hires highly experienced managers with reliable skills to make the company remain relevant in the industry as well as the global market.
However, the company still experiences extensive challenges that have remained expensive to its operations around the world. One of the challenges is allegation that the company plays exclusive role in disguising the environment within the areas in which it operates. Also, the company faces the challenge of allegations that it produces excessively fatty foods that have been major cause of obesity in the countries within which it operates. As a global company, it also faces the challenge of exposing the culture of different countries into exclusive risk of alienation.
However, the situation may change if adequate measures were undertaken to prevent exploitation of the name of the company in favor of another company. In addition, the management should identify unique strategies to handle the problems that are attached to the operations of the company. McDonald’s still has a bright future with exclusivity in its performance.
Analysis
McDonald’s is the leading foodservice retailer around the world. The company is well known of its exclusive services around the globe. The company operates in more than 100 countries while executing its services to approximately 70 million people. The company is famous because of the exclusive types of food it deals with in its business. The company deals with a range of products. The business of the company mainly revolves around fast foods such as hamburgers, chicken sandwiches, soft drinks, breakfast products, desserts, as well as French fries. However, the operations in different countries have made it easy for the company to introduce new products to the specific country. All the McDonald’s stores execute unique strategies as well as rely on the unique leadership from the headquarters.
Although, the organization continues to expand its operations in the world, it remains critical on the management issues. There are massive issues surrounding the operations of the company in various branches of its operation.
The company is being linked with the highly available poor quality fast food. There are allegations that the company is producing foods that are unhealthy for human consumption. These are foods with excessive fats and they are major cause of obesity among the consumers. Obesity is a lifestyle condition that mainly comes with poor feeding habits. The company is alleged to produce the foods that are excessively ineffective among consumers. This is major concern for the company.
In addition, the company experiences allegations on its contribution to the destruction of the infrastructures within the areas of its operations. The company destroys the environment through misuse of natural resources in carrying out its activities. There are allegations that the company uses packaging materials that are manufactured from natural resources such as trees. This allegation is extremely costly to the company and necessary precaution must be undertaken to resolve the problem. However, the process must under exclusive scrutiny of the effectiveness of the issue.
As a global company, McDonalds will come across different cultures. It is a challenge for the company to fit its operations in all the cultures that exist around the globe. Different people have unique tastes. Therefore, they will have different views on specific issues. Cultural practices must be in line with the type of food the individuals consume. The war on cultural alienation is common among all fast food companies but McDonalds bears more weight since it is the largest company in the industry and its spread to extremely many countries around the world.
However, the company remains intact and disregards all the allegations as it aims to continue offering its high quality services. The exclusive management style of the company has seen it enjoy a wide market around the world. The company produces its food through exclusive processes. There are unique strategies to define the success that the company is enjoying now. The company sticks to its production processes, employees training, and excellent customer services.
The company began its operations in 1940 in a restaurant that was co-owned by Richard and Maurice McDonald who were brothers in Bernardino, California. The operations of the company were under a system known as the “Speedee Service System”, which is proper representation of the current Fast-food system. The system had been tested in the industry and its effect was enormous. The company filed for the trademark on the “McDonalds” name in 1961.The trademark remained relevant to the company up to 2009 when a new one was obtained with the “M” symbol being the current trademark of the company. Ray Croc a businessperson is the pioneer of the franchising business that the company operates. His advice of 1955 remains key in the company as it defines the current competitive strategies that the company enjoys. Since the contribution by Ray Croc, the management of the organization continues to extend its services to the rest of the world. McDonalds is a global fast food player with an exclusive process of production and management of various issues (Kelly 5).
The company has its headquarters in McDonald’s Plaza situated in Oka Brook, Illinois. It operates counter service and drive through service restaurants. The restaurants offer both indoor and outdoor sitting for its customers. The company has also extended its operations through development of McStop, which are points at which passenger pick food and beverages. In addition, the company has come up with the strategy of operating within big supermarkets such as WalMart supermarket. This is unique strategy of allowing the company extends its services to the public. In return, the company enjoys massive returns because of high customer base. However, some of these operations of the company are facing extensive challenges by the governments of different countries as well as the competitors (Kelly 6). Moreover, it has exclusive places for placing orders for customers who operate within the neighborhood. This is a strategy to execute the success of the business.
McDonald’s has fashioned an exclusive style of leadership that oversees its success in the global platform. The company recognizes leadership as one of the core elements for the success of any organization. The leadership of the company remains under the founding family of the McDonalds. Through excellent styles of leadership, the company has succeeded in achieving excellent competition measures that make it the most successful company around the world. The leadership of the organization is full of highly experienced individuals who have adequate knowledge on fields of sales as well as marketing. As a result, the company succeeds in selling its name around the world and ensuring its sales advance every day.
The company operates under the leadership of Andrew McKenna the chairperson, and Don Thompson. These leaders have direct control of activities of the company in all the branches within which the company operates. The chairperson oversees the duties of the CEO and the rest of the employees and chairs the meetings of the board of the company. On the other hand, the CEO is in charge of the activities of the company at the global platform. He ensures that all the managers around the world adhere to the principles set to govern any branch of the company around the globe. The follow-up of the CEO has been useful in determining the success of the organization in the highly competitive fast food industry (Kelly 6). He executes excellent strategies that have been the anchor to the success of the business.
The company’s success lies on the exclusive resources that it possesses. The company has a unique system that acts as the overall tool of reliance in excellence of an organization. The idea behind the production of the various foods is an asset for the company. In addition, it has reliable managers and employees who oversee the success of the different branches around the world.
The performance of the company has been encouraging in the recent past. Despite the challenges that the company has been experiencing, there is increase in performance by the company. This makes the company highly competitive within the industry. In 2013, the company experienced an increase in sales revenue from $27.57 million in 2012 to $28.11 million while in 2011 it $27.01. The sales increased the income of the company from $10.69 in 2011, to $10.82 million in 2012 to $10.9 million in 2013 (MarketWatch, 2013). These results show that the company has exclusive concern for performance. There are extensive measures that define the success of the company. The main competitors of the company are Starbucks Corporation, Yurn Brands Incorporation, Compass Group Incorporation and Whitbread company (MarketWatch, 2013). Although, these companies operate in the same industry as McDonalds, they cannot match the prowess of McDonalds in execution of its duties and its financial performance. The business strategies of the company are useful in defining the required success for McDonalds in comparison with the competitors. The management and the production formula of the company is unique and cannot be compared with any from the competitors thus the high performance of McDonalds Corporation.
Works Cited
Kelly, James."It's All McChange At McDonald's: McDonald's Is Making Changes To Reflect Modern Tastes And Working Practices But Are These Enough To Stem Criticisms Of The Firm As An Agent Of Globalization?."Strategic Direction 23.11 (2007): 5-8. Print..
"McDonald's Corp.." MCD Annual Income Statement. N.p., 2013. Web. 18 June 2014. <http://www.marketwatch.com/investing/stock/mcd/financials>.
