Final Project McDonalds

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ACKNOWLEGEMENT I also take this opportunity to express a deep sense of gratitude to Company Name, Designation, Company Name, for his/her cordial support, valuable information and guidance, which helped me in completing this task through various stages.

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Management Project

Transcript of Final Project McDonalds

ACKNOWLEGEMENT

I also take this opportunity to express a deep sense of gratitude to Company Name, Designation, Company Name, for his/her cordial support, valuable information and guidance, which helped me in completing this task through various stages.

EXECUTIVE SUMMARY

Our executive compensation program supports our long-term business plan, the Plan to Win. Our Plan to Win focuses on five key drivers of exceptional restaurant experiences people, products, place, price and promotion which in turn drive sales and profitability and support our growth strategy of being better, not just bigger. We are also committed to controlling costs and managing capital in a disciplined manner.The key objectives of our executive compensation program promote our execution of the Plan to Win. Those key objectives are: to motivate our executives to increase profitability and shareholder returns; to pay compensation that varies based on performance; and to compete effectively for and retain managerial talent.A significant proportion of our executive compensation is performance-based. We use a mix of different performance-based elements of compensation that reward different aspects of both Company and individual performance. Our annual bonus plan, TIP, pays out awards based primarily on annual increases in operating income. Our long-term cash incentive plan, CPUP, rewards a combination of long-term operating income growth, disciplined capital location and total returns to McDonalds hare holders. Stock options and RSUs connect the amount of compensation our executives earn to the performance of McDonalds stock. RSUs for our executives also include a performance-based vesting condition that rewards growth in EPS.Our executive compensation program has been successful in focusing the named executive officers on the Plan to Win and helping us achieve positive business results for the last five years. In 2008, despite a difficult economy, McDonalds delivered strong performance and positive returns for shareholders. For 2008, the Companys global comparable sales increased 6.9%. Our operating income increased to $6.4 billion. We returned $5.8 billion to our shareholders through share repurchases and dividends paid, and our total shareholder return in 2008 was 8.55%. Our 2008 TSR is ranked 15th among the companies in the S&P 500. Our executives compensation in 2008 reflects the Companys strong performance. Our business performance exceeded expectations, and, accordingly, payouts to the executives under our performance-based compensation plans were above target levels.

INTRODUCTION OF ORGANIZATION

McDonalds Corporation is the worlds number 1 fast food chain, Richard and Maurice McDonald started this business with a restaurant in San Bernardino California in 1940. These days McDonalds serve more than 56 million customers every day.There are more than 30,000 restaurants operated by McDonalds worldwide in which more than 80% are operated as franchise and less than 20% are owned by company. McDonalds main selling products are hamburgers, cheeseburgers, double cheeseburgers, big Mac burgers, quarter pond burgers, tasty burgers, flit-o-fish burgers, salad and fruits.

BRIEF HISTORY

McDonalds was one of the international food chains to operate in Pakistan. The world renowned fast food Burger Giant came to Pakistan in 1998 and now has around 27 dine in, takeaway and delivery outlets in all major cities i.e.: Karachi, Lahore, Islamabad, Multan, Peshawar etc.McDonalds is owned by the Lakson Group of Companies. McDonalds F-9 Park is one of the 27 outlets. Although numerous local vendors have tried to copy the original McDonalds concept. McDonalds Pakistan gives tough competition to all and is still one of the best Fast Food Restaurants in Pakistan. McDonalds has been quite innovative in Pakistan; to its credit it has introduced the most mouthwatering burgers and the most deliciously yummy nuggets and ice creams such as McChicken Burger, Chicken McNuggets, McFries, McChicken Wings, Spicy McCrispy Chicken Deluxe, etc. McDonalds outlets retain the family-style enjoyment concept and offer a casual dining environment. Complimented with other mouth-watering menu items like Sandwiches, Desserts and Beverages.Off late the 24 hour delivery of McDonalds Menu Products has taken over the traditional dine-in format. All in all the McDonalds Slogan Im Loving It truly is correct and as affordable prices and local popularity make it a hot spot for company lunches and birthday dinners. McDonalds is the largest and best known global food services retailer with more than 30,000 restaurants in 121 countries. Its outstanding brand recognition, experienced management, high quality food, site development expertise, advanced operational systems and unique global infrastructure ensure a position that enables us to capitalize on global opportunities

MISSION/VISION STATEMENTMcDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.

FOUR FUNCTIONS OF MANAGEMENTPlanningDefining goals, establishing strategies to achieve goals, developing plans to Integrate and coordinate activities.OrganizingArranging and structuring work to accomplish organizational goals.LeadingWork with a group of members to achieve goals.ControllingMonitoring, comparing, and correcting workActual performance must be compared with the set goals

LEVELS OF MANAGEMENT

Administrative or Top Level of Management Executive or Middle Level of Management Supervisory or Lower Level of Management

CULTURE OF AN ORGANIZATIONWhen analyzing an organizations leadership and teamwork skills, it is useful to first analyze the organizations work culture and how this culture is maintained. The work culture of McDonalds seems highly dependent upon the particular line manager in charge at any given point in time. One would imagine that the manager would almost always use position power and would use a telling style of leadership since the typical employee is young or inexperienced. Indeed, some managers were observed as running the operations in a machine like manner, especially during peak business periods. However, in the majority of cases the managers were relatively relaxed and sometimes were indistinguishable from the other employees. One manager in particular used a selling approach, which indicates a higher readiness level of her team (Daft, 2008, p. 73). She did not simply give orders, but accepted feedback and alternatives to her decisions. While it was obvious she was the manager, her team was obviously in the later stages of development and was comfortable outside of their predefined roles.In general, the managers did not try to put any strong vertical barriers between themselves and their employees. Managers usually seemed to display real concern and interest in the emotions and wellbeing of their employees, which was not expected in this environment. For example, one manager was observed asking an employee cleaning the floors about her weekend and her kids. There seems to be legitimate efforts in order to motivate employees even at the line worker level. Herzbergs two-factor theory explains that good working conditions only go so far, and that employees require higher level fulfillment such as motivation and recognition in order to be satisfied with their position (Daft, 2008, p. 231). Even in a low- skill position, low turnover is desired. In addition, happy employees lead to happy customers.

ANALYZE ITS ENVIORMENTMcDonalds is performing very well internally because of global standardization leading to increased effectiveness. This is a core competency of McDonalds internal environment. At the same time McDonalds integrates local differences. They are very committed to diversity and this is furthermore one of their greatest internal qualities. As a globalized company they have managed to maintain their focus on adapting to the local societies by hiring local people to the company. They embrace this diversity through processes and policies and it even has its own flag on the page our company. The openness towards diversity, together with standardization, creates internal values of trust and dependability in a safe environment.In a survey it showed that 80 per cent of the employees of McDonalds were satisfied with their job:Communication resourcesDue to the magnitude of McDonalds corporation they have all communication resources available. It is important, however, that they have a clear focus in their internal communication and provide guidelines on how the franchise restaurants should be managed. We believe that McDonalds have done this well since they have been able to incorporate a strong standardization throughout their restaurants.A way to create effective and homogeneous communication is done by providing each restaurant with PC access in crew rooms where the employees can be updated on internal activities. This is a proactive method with the purpose of constantly keep the staff informed and updated.How a company approaches its PR has a big impact on how PR is performed throughout the organization. The more attention a company gives its PR, the more responsibility the company tends to rely on PR. If the PR activities are not seen as central issues, the PR personnel are often placed in the hierarchy of the organization as a managing support function. If a company puts much focus onto its PR, it is often explicitly expressed by giving the PR personnel their own managing function highly placed in hierarchy of the organization. By having the PR activities individually integrated alongside the high managing levels, it is easier to maintain a homogenous communication throughout the organization..

External environmentBased on your earlier analysis we can conclude that McDonalds is very adaptable to change in the external environment and ready to implement them in their internal environment. We see this in the way they adapt to societal trends.McDonalds major competition on the US market is Burger King, Taco Bell, Pizza Hut, Wendy, Arbys, and Kentucky Fried Chicken.On the Danish market the major competition can be narrowed down to Burger King, Sunset, local shawarma restaurants, and other small cafs.Despite the competition McDonalds is still the leading fast food restaurant in both markets. To hold this position they have to be constantly aware of these competitors, soon-to-be competitors and other trends in the external environment since the competition is very intense.The increased awareness of the unhealthy side effects of eating fast food has lead the way for many small takeout places. These places provide healthier alternatives and are increasingly becoming a more dangerous opposition. Q: Is anything happening in the environment that can limit the effectiveness of the public relations program?Public perceptionMcDonalds is a worldwide and very well-known company. They have very high brand recognition due to the fact of their worldwide representation. McDonalds has throughout the years become the worlds largest quick-service restaurant organization and simultaneously changed not only the eating habits of the Americans but the eating habits of the entire world. The companys growth can be described as phenomenal and they have managed to increase sales and earnings every quarter since it went public in 1965. By 1991, 37 per cent of sales came from restaurants outside the United States.To be a worldwide and world known company is not easy especially in this industry. So the reputation of McDonalds is very turbulent.It is relevant to look at the reputation from two perspectives:The industry and the emloyeesIn 2003 the term McJob was registered as a real term for a low paid job that requires little skill and provides little oppertunity for advancement. This was ofcource not a reference that McDonalds was satisfied with. But researched also showed that the public perception of a job at McDonalds only scores 30-40%. On the other hand, the research showed that McDonalds as a working placed scored 80% among it employees.The reputation in the industry is also difficult, due to the fact that McDonalds often is made the scapegoat of obesity and other unhealthy tendencies in society. Especially after the premiere of supersize me in 2004 McDonalds started to change, in order to improve the the public perception of McD. Supersize meals was cancelled, and McD started ad extensive CSR strategy where the promised e.g. only to buy coffee from farmers who are certified by the Rainforest Alliance.

ORGANIZATION STAKEHOLDERSMcDonalds StakeholdersMcDonalds has many franchises around the world. The first franchise was opened in 1967 in Canada over the years it has spread all around the world and there are now more than 1000 franchises around the globeMcDonalds aims McDonalds aims are to provide a fast, friendly service but they also like to make sure their customers are getting good value for money on the food as well.The StakeholdersEmployeeOne stakeholder of McDonalds would be its employees. The employees are internal stakeholders as they work inside the company and have an interest and influence the way it is run. So anybody that works for McDonalds is a stakeholder. This could be from a part time team member or somebody from the head department. It doesnt matter as long as they work for the company. The following link shows an article about the internal stakeholders of McDonalds. The news article explains how it wants both internal and external stakeholders to meet and ask questions about the company rather than McDonalds answering peoples questions through the social network. employees often have staff meetings with managers where they can talk about what they think is going well or not so well this is why employees are internal stakeholders as if they think something needs to be changed they can influence this change to happen.CustomersCustomers are also stakeholders they are slightly different from employee stakeholders though, as customers are external stakeholders this is because they dont work for the franchises but they still buy products from them so they have an interest in McDonalds. This means that every customer who buys from any McDonalds franchise is a stakeholder. Even if they only use McDonalds occasionally. customers he interests in McDonalds for many different reasons, one might be that they a promotional meal has come out McDonalds are always looking for feedback on their products so if they get this from their customers they are more likely to keep the meal on their permanent menu but if McDonalds didnt get any feedback or the sales was low on the certain promotion they are more than likely to scrap it from the menu and not offer it again. SuppliersSuppliers are also internal stakeholders as they also work with McDonalds. McDonalds use many suppliers for the things in their store for example they get the food from one supplier and then the drinks from another. Suppliers are a really important part of the way McDonalds runs if McDonalds didnt have suppliers there would be nothing for them to sell. Suppliers also have an interest in McDonalds to be one of their stakeholders. The suppliers interests would be about the orders McDonalds make because the more they do make the more money they are going to be making for the company. McDonalds also like to make sure the supplier they muse is trust worthy as suppliers play a huge part in all the chains of McDonalds as they wouldnt have any food to sell if a supplier failed to deliver when they needed it.The GovernmentPeople dont normally expect the government to be involved with Franchises like McDonalds. But the government is actually external stakeholder as they also hold an interest and influence McDonalds. The government is interested in McDonalds because McDonalds offer lots of opportunities for the unemployed to get a job as there is many franchises are the world because McDonalds is a global company. The government also passes new laws that could affect the way McDonalds is run an example of this would have been when everybody got banned from smoking in indoor public places.The government made every company from a corner shop to a large global business stop people smocking indoors a public space as it had become a law if anybody was smoking where they wasnt meant to be the business could risk enormous consequences. The government also has an interest in McDonalds when they want to build a new franchise. They have to get planning permission first before they can start building it this is another way the government plays a part as they have to decide whether they are going to allow or deny this.Trade unions Trade unions are external stakeholders as they work outside the business. Trade unions are people who look after the rights of the workers on how they work, get paid and the conditions they work in. they also access the risk of the employee getting hurt at the work place due to poor conditions. Employees have to pay to be part of the union but it is only a small amount out of your wage or salaries. they have an interest in McDonalds as some of their staff from each franchise may be part of their unions if they arent the union pay advertise and explaining what they do and why a staff member should become part of their group to help make other peoples working conditions better.Communities Communities are also external stakeholders. Communities are widely involved with the businesses like McDonalds as they are interested when stores are planning to build near them they are also interested in the jobs that the store can offer. McDonalds rely on the community a lot as they wouldnt have any business if they didnt keep their customers happy by offering great services.

CORPORATE SOCIAL RESPONSIBILITY OF ORGANIZATIONCODES OF ETHICS IN THE ORGANIZATIONEthics Standards of Business Conduct for Employees McDonald's is committed to conducting business ethically and in compliance with the letter and spirit of the law. This commitment is reflected in McDonald's Values. Inherent in each value is our commitment to be ethical, truthful and dependable and this is reflected through our Standards of Business Conduct which serves as a guide to making good decisions and conducting business ethically.Each year McDonald's employees certify that they have read and will abide by our Standards of Business Conduct. Employees also complete regular training on the Standards, anti-bribery laws, and various other laws, regulations and company-specific policies. In addition, McDonald's and its employees in all countries must comply with the U.S. Foreign Corrupt Practices Act (FCPA). To ensure compliance, McDonald's has adopted a Global Anti-Corruption Policy, which contains guidance for employees on all applicable anti-bribery laws, including the FCPA. In general, the FCPA prohibits improper payments to government officials for the purpose of obtaining or keeping business or improperly influencing government action. The anti-bribery prohibition applies to corrupt payments made directly or indirectly, through a third party. In addition to the FCPA, the Global Anti-Corruption Policy requires compliance with anti-bribery laws in other parts of the world, such as the UK Bribery Act, which have international jurisdiction and prohibit the giving of bribes to any government official as well as private entities and individuals. Employees in McDonald's international offices complete an annual certification of compliance with their local version of the Standards and complete annual anti-bribery training. McDonald's Global Compliance Office monitors and enforces the company's policies prohibiting money laundering, bribery and doing business with terrorist groups, as directed by the US Patriot Act, the FCPA and Executive Order 13224.

DECISION MAKING IN THE ORGANIZATIONDecision making process may include gathering information, setting common goals, uncovering management alternatives to choose a certain plan of action and executing the plan. With this process, the management of organization will be able to identify the most appropriate strategy to be used in order to make the company be more competitive. In addition, decision making process is also noted as a central factor in having successful strategic management because it enables the company to have an effective solution for a certain problem or issue.However, even if decision making are said to be the central factor of having strategic management, the process of making decisions is also considered as a difficult task to handle. Most of the time, decision makers of a company is having difficulties in deciding the solutions to a certain problem for a fear of not getting the expected results. Problem DefinitionMcDonaldshas a rich history that started out in 1954. The company was put to the spotlight by Ray Kroc. Throughout the years, marketing ideas have poured through and helped the company become one of the most renownedfast foodbrands globally. The trademark design for the fast food was carefully studied and it came with a happy clown character known as Ronald MacDonald (McDonald, 2007). The Big Mac and the Egg Muffin have been some of McDonalds most innovative products. In terms of marketing, the happy meal approach was also a creative as it entices children to eat at MacDonalds because of the toys they can get. Today, McDonalds is also on the Internet bandwagon, providing information to people all over the world with a click of a mouse (McDonalds Corporation, 2007).McDonalds is among the most popular fast food brands in the world. Started out in the fifties, McDonalds now boasts of operating, franchising, and serving a worldwide chain of around 30,000 fast food restaurants that prepare, package and sell a menu of ready to eat foods. This is a problem for McDonalds because it has already gain the reputation of a fast food that continuously provides greasy unhealthy food; whereas competitors have already made measures to reduce fats in their products. The company needs to do something about and shift its positive image back. Hence, the issue or problem that should be solved by the management of McDonalds is to make a decision in terms of having a new marketing approach that will make the company be more appealing to the current customers. This approach should make the McDonalds brand as something that is irresistible, then followed with the information that its products are already health friendly. In this approach, certain changes will be made.Decision Making ApproachesGenerally, most organizational management systems is said to be set-up to permit decision making at the lowest plausible level. The management must make it sure that decisions making are distributed evenly to different departments and levels of organization to avoid conflicts. In order to do this, the management must be able to choose the most appropriate decision making approach. In this regard, there are various decision making approaches that can be used in business organizations. These decision making approaches include administration approach, political approach, classical approach or incremental approach.The next decision making approach is the political decision making approach. Unlike in the administrative decision making approach, political decision making approach have decision makers who are politically inclined and have deep knowledge in different laws. The political decision making approach is said to be opinionated and supportive. The elite political groups have the opportunity to make decisions by intensely arguing on both the positive and negative sides of the decision to be made. The last decision making approach is the incremental or classical decision making approach. The incremental or classical type of decision making approach tends to look at a specific decision as a small step within the process and consequently perpetuate to a series of other similar decision. This means that the management makes decision in a step by step process (Borden, 1995). The classical decision making approach seems to be more scientific and rational. The process involved in a classical decision making approach are deeply taken into considerations and the management are trying to make the decision as appropriate as possible to avoid further conflicts.

Key Limitations of Decision Making Models Aside from bounded rationality, administrative decision is also restricted to a specific decision making style. Since the manager or for this case the marketing manager is the only one who will make the decision, the decision making style will be limited on the managers knowledge. This limitation may result in ineffective and inappropriate decisions which may worsen the problem or issue of the company.In line with group think, it is said that in successful groups, individuals learn to work together. They become a cohesive group as they work on specific tasks or projects. However, cohesive groups may develop and implement strategies that are inappropriate. This behavior is attributed to changes in the group's reaction to new or conflicting information. Cohesive groups tend to close themselves off to unsettling information, whether from inside or outside the group. This behavior was labeled groupthink by Janis (1982).The quality of many organizational decisions also may be limited by political "face saving" pressure. In other words, decision makers may make decisions that help them save face at work, although the resulting decisions might not be in the best interest of their organizations. Imagine, for example, how an employee might distort the available information needed to make a decision if the correct decision would jeopardize his or her job. Unfortunately, such misuses of information to support desired decisions are common. Besides the time constraints and political pressures that limit quality of organizational decisions, note also the limitations imposed by moral and ethical constraints -- what is known as bounded discretion. According to this idea, decision makers limit their actions to those that fall within the bounds of current moral and ethical standards. TYPES OF PLANSTo keep growth alive, McDonald's has decided to focus on three priorities: menu optimization, modernization ofcustomer experience, and broadening accessibility.Menu optimization involves going beyond traditional hamburgers and introducing a wider selection of beverages, chicken products, and beef products. For example, MacAfee -- which was first opened in Australia in 1993 -- has expanded quite quickly. Now the company plans to introduceMacAfee-branded packaged coffees via grocery stores.In terms of customer experience, the company's reimaging and rebranding efforts are aimed at gaining non-traditional customers. For example, by offeringfree Wi-Fi accessand improving the quality of its premium coffee, McDonald's tries to capture market share from coffee chainsFinally, in terms of accessibility, the company plans to improve capacity significantly, on top of building new restaurants. The company plans to spend $2.9 billion to $3 billion in 2014 to open 1,500 to 1,600 new restaurants, and remodel about 1,000 others. This should allow the company to maintain sales growth of 3%-5% and operatingincome growthof 6%-7%, amazing figures for a company serving around 68 million customers daily in 119 countries.Why Burger King and Wendy's can't beat McDonald's?Although Burger King's recent focus on the high-end segment -- in Japan, the company sells cocktails -- and use of high-quality ingredients is promising, McDonald's has a stronger, iconic, and trulyglobal brandwhich is embedded in the memory of customers from a very early age. This allows McDonald's to maintain a leading market position in practically every country in which it operates.Note that between 2005 and 2008, inefficient and controversial marketing campaigns and the decision to sell absurdly expensive burgers in the middle of a severe financial crisis -- there was a $190 gourmet burger in the U.K. -- had a terrible negative impact on Burger King's sales. Although the company tried to keep up with McDonald's, it turned out that Wendy's was the real threat. In late 2011, Wendy's finally surpassed Burger King and became the second largest fast-food restaurant in the U.S.With more than 6,000 locations worldwide, Wendy's owns a stronger brand than Burger King. Furthermore, Wendy's is constantly innovating its menu, while paying attention to its traditional offerings. To replace both the Big Mac and Whopper, the company launched its W burger at the end of 2011. In 2012, it introduced a new type of fries, a new salad, and the spicy guacamole chicken club, to name a few examples.However, as Morningstar notes, Wendy's higher-quality products come at a higher price, and therefore make price-sensitive consumers shy away. The company concentrated on differentiating its products by using top-quality ingredients, and promoting an 'old-fashioned burger' concept. Instead, McDonald's has focused on keeping prices low. As a result, McDonald's appeals a broader demographic.

Final Foolish takeaway

The world's largest chain of hamburger fast food restaurants remains an attractive investment, both in terms of value and growth. Management's commitment to permanent innovation and expansion combined with McDonald's iconic brand, should help the company maintain its dominance in the fast food industry and conquer new segments.The best part of the story is yet to come. McDonald'sdividend is among the highest in the sector. However, there may be even more attractive dividend opportunities. If you're looking for some additional long-term investing ideas, you're invited to check out The Motley Fool's brand-new special reports stocks so compelling, we've got $192,197 ofour company's own moneybehind them...According toThe Wall Street Journaland the watchdogs at Hulbert Financial Digest, The Motley Fool boaststhe TOP THREE performing investment newsletters in the entire world over the past five years-- handing our membersan average annualized gain of 16.3%per yearover that period.

In celebration, for a limited time, you can get the names and full details onthree stocks(one from each of these award-winning services) that hedge fund veteran andMotley Fool Million Dollar Portfolioadvisor Ron Gross isinvesting The Motley Fools own money into right now-- plus claims a FREE bundle of valuable reports and other exciting gifts. Simply enter your email address below to take advantage.Jim Skinner said, "Over the past nine years the Plan to Win has been the right blueprint for McDonald's and remains relevant today. It has enabled us to perform well in both robust and challenging economic environments. Most importantly, the Plan is supported by our unparalleled competitive advantages in size and scale, our financial strength and our System alignment."McDonald's reaffirmed its constant currency growth targets: Average annual sales growth of 3% to 5% Average annual operating income growth of 6% to 7%, and Return on incremental invested capital in the high teensDuring the meeting, the Company highlighted the following for 2012:Capital expenditures of about $2.9 billion, providing for more than 1,300 new restaurant openings and over 2,400 reimagesCommodity cost forecast reflecting an increase in the Company's overall basket of goods of 4.5% to 5.5% Chief Operating Officer Don Thompson said, "We are intensifying our efforts behind three global priorities that represent our greatest opportunities under the Plan to Win optimizing and evolving our menu, modernizing the customer experience and broadening accessibility to our Brand. I am confident in our strategies and the ability of our talented System to execute against these priorities as we drive toward our mission to become our customers' favorite place and way to eat and drink." Benson continued, "The first priority for our significant cash flow remains reinvesting in our business to be increasingly relevant to our customers. After that, we expect to return all of our free cash flow to shareholders over the long term through a combination of dividends and share repurchases. Through October 2011, we have returned $5.1 billion to shareholders and expect to finish the year at around $6 billion."Skinner concluded, "McDonald's unwavering commitment to and outstanding execution of the Plan to Win has created significant brand differentiation and strong business momentum. McDonald's is well-positioned for sustained profitable growth and I am confident that the investments we are making today will yield long-term value for our shareholders in the future."RELATED COMMUNICATIONSThe Company plans to release November 2011 sales on December 8, 2011.McDonald's is the world's leading global foodservice retailer with more than 33,000 locations serving approximately 64 million customers in 119 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and women.FORWARD-LOOKING STATEMENTSThis release contains certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. The factors that could cause actual results to differ materially from our expectations are detailed in the Company's filings with the Securities and Exchange Commission, such as its annual and quarterly reports and current reports on Form 8-K.

TYPES OF GOALSGoals The goal for McDonald is to successfully communicate their new healthy alternatives. After the movie Supersize me McDonalds experienced a lot of critique and has therefore established a new strategy with the following goals:Reputation:-Improve McDs reputation within the industry:They do not aim solely at being perceived as a healthy restaurant, but as a restaurant that offers alternative meals for their publics. They furthermore want to be recognized as a company which is aware of the growing societal issues of obesity.- Reinforce McDs image with a new communication focus:Simultaneously with the increasing focus on healthier alternatives, McD has realized that they have to change their focus in order to create a new image and perception of McD. As a result they have taken some initiatives that should change the focus from the unhealthy products and introduced healthier menus. This has generated a lot of buzz because this change of focus was inevitable. It can be discussed whether this communicational change has been a success.Relationship managementPromote their new initiatives to new potential customers.It is obvious that the new strategy will generate a positive relationship between existing customers and potential customers due to the fact that the strategy will create access to new markets and that existing customers now have a broader range to choose from including the original menu choice.Furthermore they provide more alternatives to their customers as a result of the new focus.Task management Increase public support for McDonalds new aim.What position do you seek? Before the issue evolved McDonalds was known as a popular but still greasyfast food restaurants. They are still perceived in this way but at the same time people now know that they offer some alternatives. Furthermore McD have been really good atcommunicating their products nutritional values. This has increased the transparency and makes it possible for people to know how many calories they consume in a meal. Through this way they are perceived as being a more open and credible organization.McDonalds should focus on maintaining this position. They should be a place for all kinds of people and continue to develop both their burgers and also the healthier alternatives. However, they should still keep their original brand.

SWOT Analysis This SWOT analysis shows us that although there are numerous threats against the fast-food industry, McDonalds occupies a relatively strong position in the global marketplace. According to the five forces model, the strongest competitive force is between rival sellers in the industry. This SWOT analysis shows the many strengths that Mc Donalds employs to keep itself at the top of the fast-food industry. McDonalds has a strong enough consumer base to grow in the upcoming years. The financial analysis shows certain flaws in McDonalds finances, but these are largely due to the expansionary policy in place in the company.StrengthsOwns one of the worlds best known brand namesReal estate operations bring in large revenues and allow McDonalds to open more storesCountless new innovations- breakfast, playpens, etc. Specialized training for managersReinstitute the restaurant review operation (QSC)Large market shareStrongest international presence among fast-food chainsMcDonalds does not need to act as finance corporation to franchisesMcDonalds Plan to Win- focuses on people, products, place, price and promotionWeaknessesCustomer service ranking is the lowest among fast-food chainsMany stores beginning to look datedQuality becoming inconsistentOrder accuracy is low compared to other chainsOpportunitiesDiversification and acquisition of other quick-service restaurantsLow-cost menu to attract different customersInitial public offerings in other countries could raise revenuesRetail merchandise potentially used to raise revenuesThreatsIncreased competition among rival sellers, including price wars, product innovation, and growthHealth conscious consumers demanding better quality, healthier menu itemsAll fast-food chains expected to struggle to meet new consumer health expectationsOverall weaker economy

ORGANIZATION STRUCTUREThe article McDonalds Business Analysis by N. Vijayarani explains McDonalds formal business structure andbusiness strategies. McDonalds is one of the largest food chain companies in the world and has much strength in its company that allows it to build afunctional structure. McDonalds has around 40 million customers visiting the store each day. It has over 30.000 branches in 120 countries including Canada, Brazil, Germany, France, Japan, UK, Australia, and the U.S. It derives 80% of its revenues from these countries. One of there greatest strengths and missions is to create an image in the minds of the people and introduce them to the fast food culture. The company functions with great delivery speed, customer care and cleanliness.McDonalds has a very recognizable corporate symbol and have been highly successful with their advertisements and establishing the brand image and logo in the minds of millions of people. Another strength McDonalds has is its product value. According to the article, customers know what to expect when they walk into the store, great emphasis goes to human resources by satisfying both the customer and the employees. McDonalds is very innovative with new product lines, new trends and new tastes. Its diversity into their new business ventures is also considered a strength of McDonalds. Unfortunately, share holders.McDonalds faces competition as well as customers changing their trends and choices and this impacts the companys businessstructure. People get tired of the same brand especially ones they are used to and ones that see everywhere. McDonalds is very over exposed. Another thing McDonalds has to be careful with as a large chain is making sure they maintain their standards and make sure they dont lack in quality service or else it will affect the whole brand.1. The managerial and organizational process should share a good integration and coordination. The organization should learn and bring about changes according to the need of the hour and should always be flexible to changes in the environment such a customer trends, legal or government restriction and developments in the technology. McDonalds is presently concentrating on this.2. Technological, structural and financial assets of a company are an excellent market position which helps in the SCA.3. The vision or the dream with which the company was started. McDonalds was started out to help people who has very little time to cook or was too busy to get into a proper restaurant. The vision was to provide quick service, cheap products and quality satisfaction.McDonalds started off as a success story but as like any company they have faced risks, competitors and major set backs. Its core competences and the SCA both internal and external make the company strong and ranked among the top businesses.Personally, I think McDonalds is a strong company that has faced many risks and set backs but has learned and grown to be even stronger. They live by their vision and always strive towards being the best fastfood chain. They use many of the marketing strategies to fix and help their issues.

Rachel WilhelmRECOMMENDATIONS AND SUGESSTIONS

1-When mopping make sure there are wet floor signs in view from every direction near the wet areaa.

2- Make sure the electrical outlets are covered so children can not stick something in them.

3-Make it mandatory that the crew wears all nonslick shoes.

4- If they have a playland, make sure all the bars are covered with padding. Double check the safety harnesses for the tubing.

5- Make sure the back door has an alarm that is properly working. make sure every manager that runs a shift has a key to this alarm.

6- Check all locks and ensure all managers have keys that work properly

7-Make sure all lights are working in the parking lot and are turning on at the correct time.

There are more I could go on but, you get the point. There should be a checklist everyday they go through and varify all things are in order. Also a Safety Commitee is a good idea. Everyone could be assigned certain tasks that need to be completed and checked up on.

There are also standard procedures when opening or closing a Mcds store. Make sure all the crew and management knows these procedures and adheres to them.

Perhaps you could call the local authorities and have them escort you to the bank for depositing money. Or they could be there when you open or close the store.

ConclusionMcDonalds has seen many changes, good and bad during its creation and duration of the business. As long as the core competencies are recognized and never forgotten, then this business will continue to succeed. With every issue and challenge the corporation faces, it has the opportunity to improve itself and prove itself to the public, shareholders, and stakeholders. With every battle conquered, another one rises and with a secure mission and vision in mind, the corporation should never stray too far from the roots and success of the company. The recommended strategy will strengthen this plan because it is doing what McDonalds does best and more so. Despite the downturn the company has seen, the general impression we receive from McDonalds financial situation is that the company is slowly climbing out of a low period and making a turnaround. We must never forget the key success factors of the business which really makes the business for what it is today, including franchises that offer quick, efficient service in a clean friendly environment It would be worthwhile for researchers to establish the scale of the benefits that McDonalds and its fast food brethren bring in the areas of providing management training, encouraging entrepreneurship, developing local suppliers, promoting exports, and improving productivity, standards of service.