McDonald'S Business Report TEST QUESTIONS FULLY SOLVED 2024.

Executive Summary The purpose of this report is to outline the legal structure of McDonald's, to establish the internal and external influences in the business environment and analyse the various influences that impact McDonald's as a company, this report also contains a franchise element. Both internal and external influences impact this business and this will be discussed in the report below McDonald's and it's legal structure McDonald's has globalised into many different countries including China, Australia, Japan, etc. With a global value of 121 billion dollars. In 1971 McDonald's opened their first Australian restaurant in the Sydney suburb of Yagoona. Today there are over 970 McDonald's restaurants across Australia and it's employs approximately 37 thousand employees worldwide. McDonald's is an unlisted Australian Public Company. However it franchises more than 80% of its restaurants in Australia which are owned and operated by other individuals. McDonald's is a company that has what is known as a ''matrix structure' as it holds 3 different types of legal structures in its business model. McDonald's has a high brand image and it gives enormous returns to its shareholders. Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen The internal influences Products, location, resources, management and business culture, The external influences Technological, financial, demographic, competitive situation, legal, institutional, social, economic, geographical, markets have Product Product influences affect a range of internal structures and operation within the business.Mcdonalds have developed many products which include the Big Mac, chicken nuggets, Chicken Caesar salad, Wholemeal Snack Wrap, Mc chicken, among others. After the initial development, these items remain on the menu for extended period of time without undergoing significant changes. This strategy ensures that there is always something familiar for consumers. on the menu. As McDonald's has expand intentionally, it has created several products to meet consumer demand in the local markets. In addition to developing new products for local markets, McDonald's will also use an adaption strategy whereby they take a product and modify it to fit local tastes. For example in India , the Big Mac has been modified into the Maharaja Mac which contains no beef, in keeping with local diets. 93 billion rupees (2 billions Australian dollars) is the clear profit of Mcdonalds in India. This strategy ensures that local customers have foods to fit their tastes. Hence McDonald's manages the internal strategy of product well as seen in the great profits in India and globally Location Location can make the difference between success and failure of any business. A good location will determine the levels of sales and profit. Mcdonalds is one of the biggest and reputable global food service retailers in the world. In order to determine the location of a store, first they must research the market to ensure there is enough exposure in order to maximise its profits, also ensuring council approvals and that the store is approved to operate their certain hours.The visibility of McDonald's is important to highlight as the golden are less are so well known and attracts customers. The brand must be visible. Business Culture All the business have their own business culture- the values, ideas, expectations and beliefs shared by the staff and managers of the business. McDonalds is all about corporate culture. From its Hamburger University (where managers and assistant managers are trained) to its vision statement of Quality, Service, Convenience, and Value ,McD corporate culture is a shared value system that forms the basis of all company decisions.McDonalds has and provides the best employees-business relationship via providing an equal opportunity employer. As an equal opportunity employer McD ensures that employees and job applicants are selected, trained, and promoted without discrimination to race, gender, sexual orientation, age or disability.The Ronald McDonald House charity offers thousands of sick children in approximately 48 countries hope and it inspires courage. Competitive Situation As the global market leaders of 21st century, McDonalds is highly competitive. McDonald's has some strong competition, for examples, KFC, Burger King, Pizza Hut. All competitors have remarkable food brand image market share, long business history and so on. McDonalds has a very specific set of competitive advantages. Mcdonalds strive to be cost leaders and offer their food at prices that cannot be matched by their competitors. Another important competitive advantage is the speedy delivery of food. Mcdonalds competitive advantages are what makes it stand out when compared to other companies. These aspects of McDonald's are what helped it become the number one fast food distributor in the world. Economic Economical factors always come as vital issue to business organisations, for example , more or less all companies are affected by ongoing global economic slowdown due to international business operation McDonalds faces in different countries. McDonalds also faces difficulties because of international currency fluctuations especially in its global food distribution. Local economical condition is also responsible for affecting McDonalds operation. If the local economy is critical, people are usually discouraged to spend more money for their food. McDonalds opened up million of job opportunities for the public. McDonalds also uses teenager for part time help, which opened top a large variety of people who were allowed work causing even more jobs to open. In order to make a high profit McDonalds pays the employees very low wages and does not pay them working overtime. This is how the global organisation affects the economy. Technological The impact of technological innovation is also considerable to meet the customers' expectation. As all existing food chains for instance, KFC, Pizza Hut etc. Mcdonalds is revamping its stores to create 'Experience of the Future' restaurant which will have self-serve kiosk and table service. The company's mobile ordering and payment system continues to expand. McDonalds has also introduced delivery in 11,500 restaurant, through its partnership with UberEats. Consequently, an effective use of technology is another key growth factor for McDonalds in 2018, as it can drive the average check higher. Social They accomplished a lot of things in such little time. Although they have given our society some bad habits.Their food is high in fat and lacks fibre and vitamins. This has been said to be linked to childhood obesity. Many people become overweight from eating Mcdonald's food and food like it. One of the biggest links to childhood obesity is the Mcdonald's Happy Meal. They included toys with each meal which made kids want to keep coming back for more. An average Mcdonald's Happy meal contains about 700 calories and 27 grams of fat. Although today Mcdonald's has made a turn for the better and opened up a wider array of healthier choices to include in each meal. This might make people less reluctant to visit Mcdonald's more often. Also Mcdonald's is open 24 hours a day so that people can come in at anytime. For example, people on road trips or people who go to work early like these hours because they can have a hot, fast, and cheap meal when no other restaurants are open. The life style of people is being changed and the demand of this change affects McDonald's. In addition, this changing demand is different in society to society and country to country. For example, in India, Hindu people prefer vegetable. This is convenient for many customers.