In this assignment I will explain the international business environment in which McDonalds
operates and I will also describe the mechanism that regulates international trade. I will also assess
the methods to increase trade between countries and the methods to restrict trade between them.
At the end I will evaluate the potential problems faced by businesses that trade internationally when
entering new markets followed by a conclusion at the end.
P1
For this task I have chosen McDonalds as my chosen business because it operates in most countries
and is a well-known business for its reputation and products. McDonald is a public limited company
which operates in the food retailing sector and is well known for its hamburger and other fast food
products which can vary from country to country. McDonalds was found in California in 1940 (75
years ago) and now has more than 36,000+ outlets worldwide. It serves more than 69Million
customers daily and is the second most private employer with recruiting more than 1.7Million
people worldwide.
There are many competitors that McDonalds face daily, some are local competitors and some are
major businesses that operate internationally just like McDonalds, such as KFC etc. But however with
all that competition McDonalds still end up with being the market leader. Below is the financial data
for McDonalds that shows its total revenue in 2014 to be $27,441Mn and net income of $4,758Mn.
But however McDonalds made less revenue in the year 2014 as compared to last year, this also had
affect on the net income for the company that shrinked their profits by a great deal too. This means
that their sales dropped and as a result the company failed to exceed their total revenue for the year
2014. This could occur for a number of reasons such as shortage in sales, poor investment and lack
of innovation on new products.
Below is McDonalds rival KFC’s financial data that clearly shows that KFC is well behind McDonalds in
terms of their total revenue. In 2014 KFC boosted their sales to $13,279Mn with 1% positive change
in their revenues from 2013. But however the total revenue that KFC generated in 2014 was still half
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operates and I will also describe the mechanism that regulates international trade. I will also assess
the methods to increase trade between countries and the methods to restrict trade between them.
At the end I will evaluate the potential problems faced by businesses that trade internationally when
entering new markets followed by a conclusion at the end.
P1
For this task I have chosen McDonalds as my chosen business because it operates in most countries
and is a well-known business for its reputation and products. McDonald is a public limited company
which operates in the food retailing sector and is well known for its hamburger and other fast food
products which can vary from country to country. McDonalds was found in California in 1940 (75
years ago) and now has more than 36,000+ outlets worldwide. It serves more than 69Million
customers daily and is the second most private employer with recruiting more than 1.7Million
people worldwide.
There are many competitors that McDonalds face daily, some are local competitors and some are
major businesses that operate internationally just like McDonalds, such as KFC etc. But however with
all that competition McDonalds still end up with being the market leader. Below is the financial data
for McDonalds that shows its total revenue in 2014 to be $27,441Mn and net income of $4,758Mn.
But however McDonalds made less revenue in the year 2014 as compared to last year, this also had
affect on the net income for the company that shrinked their profits by a great deal too. This means
that their sales dropped and as a result the company failed to exceed their total revenue for the year
2014. This could occur for a number of reasons such as shortage in sales, poor investment and lack
of innovation on new products.
Below is McDonalds rival KFC’s financial data that clearly shows that KFC is well behind McDonalds in
terms of their total revenue. In 2014 KFC boosted their sales to $13,279Mn with 1% positive change
in their revenues from 2013. But however the total revenue that KFC generated in 2014 was still half
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