McDonald S
Q1: Critically Analyze the Business Model operated by Mc Donald in terms of its Advantages and Drawbacks?
The Business Model in Mc Donald is operated by franchisees. They pay about 4% of revenue in addition to rents. If we looked at the model we will find that the company has lands and buildings. So the company keeps its revenue, but the franchisees bearing some risks.
Strengths of McDonald’s model
The benefits and advantages of this model can be seen by some features that determined the success and excellence of execute model of franchise.
The company's stability during financial crisis and how it overcomes it.
The rate of revenue stream from franchisees is going on to rises highly.
The income oriented investors who are holding the stock as an offset for continues income investments and be away of loses.
Franchisees are required to meet stringent up-front requirements for capital contributions and management experience.
The last benefit of this model is the chance of the company to identify and develop the locations, polices quality, and develops new products. Operations are large scale and efficient.
Weaknesses of McDonald’s model
Sharing profits McDonald and the franchisee seek to earn profits over a long period of time so the revenues must be fixed and sufficient to share profits among them.
Loss of absolute control MacDonald doesn’t have the complete right to manage or take decisions alone. So it will deal with the partner who has approved and accepted to process the store by following your training and instructions.
Lawsuits with unprofitable stores or uncooperative franchisees if any franchisee was unable to gain or earn money or he has any other reason to be disgruntled, you can be in for a convicted person.
State and federal franchise disclosure laws Franchisors are regulated by both federal and state laws. A lawyer is needed to run and manage all documents in business.
Q2: Critically analyze the promotion of Dynamic Innovation by Mc. Donald in
The Business Model in Mc Donald is operated by franchisees. They pay about 4% of revenue in addition to rents. If we looked at the model we will find that the company has lands and buildings. So the company keeps its revenue, but the franchisees bearing some risks.
Strengths of McDonald’s model
The benefits and advantages of this model can be seen by some features that determined the success and excellence of execute model of franchise.
The company's stability during financial crisis and how it overcomes it.
The rate of revenue stream from franchisees is going on to rises highly.
The income oriented investors who are holding the stock as an offset for continues income investments and be away of loses.
Franchisees are required to meet stringent up-front requirements for capital contributions and management experience.
The last benefit of this model is the chance of the company to identify and develop the locations, polices quality, and develops new products. Operations are large scale and efficient.
Weaknesses of McDonald’s model
Sharing profits McDonald and the franchisee seek to earn profits over a long period of time so the revenues must be fixed and sufficient to share profits among them.
Loss of absolute control MacDonald doesn’t have the complete right to manage or take decisions alone. So it will deal with the partner who has approved and accepted to process the store by following your training and instructions.
Lawsuits with unprofitable stores or uncooperative franchisees if any franchisee was unable to gain or earn money or he has any other reason to be disgruntled, you can be in for a convicted person.
State and federal franchise disclosure laws Franchisors are regulated by both federal and state laws. A lawyer is needed to run and manage all documents in business.
Q2: Critically analyze the promotion of Dynamic Innovation by Mc. Donald in