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Essay / Research Paper Abstract
This 9 page paper responds to three specific questions: McDonald's global performance, which includes a brief overview of the history of McDonald's and the fast food industry and also identifies challenges the company has been facing in recent years. This section also provides data regarding the company. The second topic is an evaluation of some of the causes for McDonald's problems right now and includes an analysis according to Porter's model. Other forces and threats that are not necessarily categorized in the five forces are discussed. The last topic includes recommendations for the company. Data are included. 1 Appendix reports fiscal data regarding profit margin. Bibliography lists 14 sources.
Page Count:
9 pages (~225 words per page)
File: MM12_PGmcd2.rtf
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the locations are franchises, McDonalds owns the other 30 percent (Hoovers 2003). Each restaurant obtains their food and packaging from approved suppliers and they must use standardized procedures to assure
that a burger in one location tastes the same as a burger in another location anywhere in the world (Hoovers 2003). McDonalds owns other quick food companies, including Boston Market,
Chipotle Mexican Grill, and Donatos Pizza chains (Hoovers 2003). The McDonalds Golden Arches is the most recognized icon in the world (Walker 2003). Richard and Maurice McDonald founded their
fast food restaurant in 1948 (The American Forum for Global Education 2000). They decided they needed to be very efficient to make a profit and decided to offer a very
limited menu consisting of hot dogs (The American Forum for Global Education 2000). When they began offering hamburgers, the menu was still very limited (The American Forum for Global Education
2000). One of the brothers designed the famous golden arches in 1953 (The American Forum for Global Education 2000). Ray Kroc was a salesman who sold the brothers Multimixers
(The American Forum for Global Education 2000). Kroc convinced the brothers to franchise their store and in 1961, Kroc bought out the company (The American Forum for Global Education 2000).
McDonalds now has greater than a 40 percent share of the fast food hamburger market in America (Hoovers 2003). The international restaurants, i.e., those in other countries, account for almost
60 percent of the companys revenues (Hoovers 2003). McDonalds major competitors are Burger King, Wendys and Tricon which owns KFC, Pizza Hut and Taco Bell. Burger King is a subsidiary
of Diageo, which also sells alcohol and other food and beverage items. The fast food industry officially began in 1916 with White Castle hamburgers although there were likely sidewalk hot
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