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Topics: McDonald's, Fast food restaurant, Fast food Pages: 19 (4710 words) Published: October 11, 2014
Running Header: STEEP ANALYSIS FOR MCDONALD’S

McDonald’s
McDonald’s Analysis

Evan Scott

Sean Brown

Laury Del Rosario

Edwin Kislyanov

Montclair State University

Group E 1

STEEP ANALYSIS FOR MCDONALD’S

Group E 2

Company Overview
According to McDonald’s website history in 1940 Dick and Mac McDonald open Bar-BQue restaurant on Fourteenth and E streets in San Bernardino, California 2(McDonalds, 2012). The company is based out of Oak Brook, Illinois according to Forbes website 3(N/A, 2012). McDonalds is the number one food service retailer in the world 1(McDonalds, 2012). McDonalds has 1.7 million employees, it operates in 119 countries, serves over 68 million customers each day around the world, and has 33,000 restaurants worldwide 1(McDonalds, 2012). McDonald’s business model, depicted by our “three-legged stool” of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key 4(McDonalds, 2012). Upon becoming CEO in 2004 James Skinner set three top priorities for his leadership: long-term sustainable growth for the company; talent management and leadership development; and promoting balanced active lifestyles 5(McDonalds, 2012). McDonalds is a food service retailer they offer burgers, breakfast sandwiches, hot cakes, snack wraps, chicken fingers, chicken McBites, chicken sandwiches, salads, biscuit sandwiches, Fruit ‘N Yogurt Parfait, World Famous Fries, cookies, soft drinks, milk, coffee, milk shakes, McFlurry, hot chocolate, juice, sweet tea, and apple pies among several others 6(McDonalds, 2012).

“The challenge today in business is that although there's quite a bit of economic uncertainty and disposable income is quite depressed, you have to stay tied directly with customers. For us that means we've got to remain a part of their lives even though they may not have the same financial wherewithal to be able to visit us in our restaurants. We've adapted quite a bit We have our expanded dollar menus but also things like breakfast which is one of the

STEEP ANALYSIS FOR MCDONALD’S

Group E 3

heaviest hit areas. So you have to continue to adjust I think if you're there for customers through these tough times, they'll be there for you as the economy gets better” 7 (Digler, 2011). Forbes.com reports that McDonalds in 2011 had over 27 billion dollars in revenue 8(Forbes, 2012).

Why We Chose McDonald’s
McDonald’s is the world’s largest chain of hamburger fast food restaurants serving 68 million customers daily in 119 countries (McDonald’s, 2010-2012). Of course we have all either seen or have eaten in a McDonald’s restaurant. McDonald’s is probably the most known restaurant around the world. As a franchise McDonald’s has faced positive and negative feedback from consumers and the media. As a group we decided to write about McDonald’s because it is a well known company with a lot of history. It is also a globalized company with a tremendous amount of diversity which we found to be worth researching. Without the commitment from the consumers McDonald’s would not be half the franchise they are which makes them the number one fast food chain.

McDonalds’ STEEP Analysis
Social


Social Responsibility
Social responsibility is the set of the obligations an organization has to protect and

enhance the societal context in which it functions (Griffin, 2011). A franchise such as

STEEP ANALYSIS FOR MCDONALD’S

Group E 4

McDonald’s has a duty to be involved in the communities in which it functions. Being such a strong force in the global economy, McDonald’s understands their responsibilities to the communities in various locations around the world. “Whether it’s supporting a local sports league, helping talented young athletes, or taking steps to improve our neighborhoods, our support reflects our commitment to you and our communities” (McDonald’s, 2010-2012). Founded of the idea of strength in numbers, McDonald’s...


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