Sample Essay on:
McDonald's and Its Investments

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Essay / Research Paper Abstract

This 4 page paper looks at the McDonald's corporation and some of its events. How it might finance changes in the future is discussed. Bibliography lists 3 sources.

Page Count:

4 pages (~225 words per page)

File: RT13_SA649M.rtf

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Unformatted sample text from the term paper:

examine activities and structure of the organization and identify two projects or events -one current and one earlier-might want to choose the new Redbock alliance as well as the launch of the Arch Deluxe years ago. In evaluating the methods of funding these projects or events, some basic issues are relevant and deserver some attention. One issue is cash management. Helfert (2001) writes: "But we also must realize that a companys cash balance at any one time represents a resource commitment, even though its movements are more frequent and extensive than those of other investments" (p.89). The author goes on to remark that it is important to minimize the size but also to obtain the most significant returns through the investment of cash balances in such a way as to reflect unique characteristics (Helfert, 2001). Whether or not McDonalds should use cash or financing to launch new projects is debatable. Sometimes it pays to use a variety of tactics, inclusive of but not limited to cash or loans. In examining the issue, the two events named should be highlighted. The Arch Deluxe had been launched in the middle of the 1990s and is considered to be a flop (Branch & Gunn, 1997). Many would concur with that evaluation as it was a short-lived burger choice. It seem as if at the time, its rival Burger King would introduce the Big King, something that would sell out of their stores (Branch & Gunn, 1997). The Big King did much better than the Arch Deluxe. In any event, whether or not it was competition that thwarted McDonalds plan, the firm did pay $200 million to introduce it (Branch & Gunn, 1997). What might have been the preferable source of funding at the time? It seems as if ...

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