A. Explain the purpose of the business.
* Does the company operate on a profit or non-profit basis? Explain your answer with details. * Does the company provide a service; manufacture a product, internet based or perhaps all? * Where is the business located and how many locations are there?
McDonalds’s provides a service of fast food to people all over the world. The top 5 are America, Japan, Canada, United Kingdom, and Germany. According to 2007 statistics, McDonald's serves more than 27 million individuals daily. Headquarters are located in Oak Brook, Illinois. It is both a profit and non-profit orientated business. Jim Skinner, the CEO, owns 33,000 restaurants in 119 countries. 59% of McDonald’s restaurants are owned by independent people. McDonalds also invests into the stock market, with shareholders that receive dividends and money when he or she sells the stock. McDonalds supports non-profit organizations like, The Ronald McDonald house fund provides free housing for families with children that are hospitalized far away from home and grants to charities in need.
B. Explore the history of the business
* Provide a chronological history of the business indicating significant events during that history.
In 1940, Dick and Mac McDonald opened a Bar-B-Que drive-in. Eight years later; the drive-in was shut down and turned into a 9 item self-serve drive-in. By 1958, McDonald’s was already a sought out place to eat and sold their 100 millionth hamburger. In 1967, they went international and opened a McDonalds in Canada and Puerto Rico. A year later, McDonalds created and started serving their famous Big Mac’s. McDonalds celebrated their 50th anniversary in 2005 and continue to serve Big Macs, happy meals, cafe specialties, and dollar menu items to millions every day. Ray Kroc can be thanked for McDonald’s expansion. In 1955, he made McDonalds a corporation and 5 years later bought McDonalds rights. He was able to build McDonald’s in to a top franchise fast food restaurant.
C. Discuss how the capitalism’s four basic rights are illustrated in the operations of this business. * What form of economic environment does this company operate (ex: monopolistic competition versus oligopoly, etc.)
McDonalds operates in a monopolistic competition. There are 2,400 McDonald’s franchises. With 80% of the businesses being franchised (McDonalds). This means that McDonalds does sell to private owners and are practicing this right. They are in competition with all fast food restaurants, like Wendy’s and Burger King. But McDonalds also has to compete against real restaurants and home-cooked meals. According to QRS magazine, McDonalds is the top fast-food business in America (QRS magazine) so they are having no problem competing or making profit’s. McDonalds uses the freedom of choice by adding specialty coffees and shakes to the menu, along with premium salads and a few other products.
D. What role does the government play in the operations of the business?
McDonalds has to follow all Occupational Safety and Health Administration (OSHA) regulations. This means that they have to make sure all floors and walkways are clean and free of clutter. McDonalds has to post all OSHA safety signs and allow breaks for employees. OSHA also has regulations on the minimum wage an employer can pay an employee. Currently, the wage is $7.25 (OSHA). In 2011, a health law was passed that now requires McDonalds to post all data on calories in their food. This has caused McDonalds to rethink some of their items and make them healthy. An example of this would be with kid’s happy meals that can now substitute french fries or pop for apples or milk. Internationally, the United Kingdom has a Children's Food Bill intended to highly regulate the advertising of happy meals and fast food aimed at children (Wikipedia). McDonalds has to be careful not to rope kids in to wanting unhealthy food.
E. Describe the legal form of the...
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