McDonalds

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Project on McDonald’s Corporation

Prepared for Prof. Alexander Lascaux
By:
Aksinya Aref’eva
Anna Bulinova
Artur Gusmanov
Anastasia Siomash
Marina Solonar’
Danila Timerin

Outline
Introduction and Background..........................................................................................................2 External Environment......................................................................................................................3 Resources, Capabilities and Core Competencies.............................................................................2 Business-Level Strategy...................................................................................................................3 Corporate-Level Strategy.................................................................................................................3 Cooperative Strategy........................................................................................................................3 Global Strategy................................................................................................................................3

Introduction and Background
In 1940 two brothers Dick and Mack Macdonald opened their own restaurant. Eight years ago the first concepts and rules of fast food production and sales were formulated by them. Initially the business was created in a such way that everything should be very fast and effective. Brothers spent much time elaborating the layout of the kitchen in their first restaurant, so they achieved the goal. Inspire of the fact that later they sold their business and their family no longer the owners of it, nowadays mcdonalds have the same efficient system of production and sales that it is able to introduce and maintain all over the world using different strategies and methods.

External Environment
External environment is a bunch of various outward forces that may have a great impact on the company’s performance. The external environment of every company comprises of three levels: the general, industry and competitor environments. The integration of information received from these environments helps to identify and shape the company’s strategies. Thereby, in order to understand what hindrances company faces or may encounter in the future, it is essential to analyze all the levels of its external environment.

It was mentioned earlier that the headquarters of McDonald’s locates in the U.S. so we will analyze general and industry environments in this region.

General Environment
The general environment is usually examined by the analysis of 7 segments: demographic, economic, political/legal, sociocultural, technological, global and physical environment segments. First of all, the demographic segment is concerned with the population structure and сomposition. The USA’s population is estimated at 313 286 000 people in 2012. By analyzing population composition, it can be said that there is very high level of immigration. Moreover, it can be said that the birth rate is sufficient: 13.68 births/1,000 population in 2012, according to CIA World Factbook. Thereby, these statistics help to understand that the region is quite profitable and comfortable to operate in due to the large population size and excessive number of potential employees. Last but no least, according to U.S. Census Bureau, the median household income during period of 2006 to 2010 is $51914 which is quite high. Secondly, the political/legal segment is quite important for the analysis because the industry is highly contingent on the different kind of taxes imposed by the governments. McDonald’s Corporation is obliges to pay business taxes, payroll taxes, Food Product Association taxes (19% of

the total profit and 19% in the price of each product) and health and social insurance for the employees. The changes in government’s tax policy may utterly affect the company’s revenue. As regards the economic...
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