Paper On The Potato Bun

787 words - 4 pages

Q2McDonald's takes the largest market shares of fast food in the world. McDonald's is the largest fast food restaurant chain in terms of total world sales (8%). It also is the second largest outlet operator which has more than 34,000 outlets, serving 69 million consumers every day in 119 countries. McDonald's has created a huge job opportunities to the society at the same time, company also pays attention to the training of the employees' skills and qualities. McDonald's has been a thriving business since 1955 and 20 of the top 50 corporate staff employees started as a restaurant level employee. In addition, 67,000 McDonald's restaurant managers and assistant managers were promoted from restaurant staff. Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for Minorities." McDonalds invests more than $1 billion annually in training its staff, and every year more than 250,000 employees graduate from McDonald's training facility, Hamburger University. McDonald's has priority on the corporate image of the shape in the same industry enterprises. McDonald's spends on advertising more than the next 4 fast food restaurant chains combined. The brand image is very clear and be positive take the social responsibility. The business successfully targets very young children through offering playgrounds, toys with its meals and advertisements. McDonald's made contributions to children's charity and environmental causes. McDonald's spends on advertising more than the next 4 fast food restaurant chains combined.Vulnerable to criticism mainly Fried food, such as it was reported that McDonald's to sell unhealthy food, because of McDonald's fast food many foods contain high in fat or high quantity of heat also did not provide the right foods for vegetarians. In 2005 the United States has an organization accused McDonald's fries could cause cancer. Another survey refers to the fast food in addition to the lack of the nutrition for the average person, and lead to the edible obesity, meat inside the hormones may also make men out of the women's breasts. Mac Job is a low paid and a low skilled job, which is often seen negatively by its employees. This results in lower performance and high employee turnover, which increases training costs and add to overall costs of McDonald's. McDonald's is no longer able to substantially differentiate itself from other fast food chains (at least not enough to gain some market share) and opts to compete by price rather than by additional features.While demand for healthier food increases, McDonald's could introduce more healthy food choices in its menu and reverse its weakness into strength. McDonald's is trying to seize such an opportunity and soon plans to open only vegetarian restaurant in India. McDonald's could exploit an opportunity of delivering food to home and increase its reach to customers. McDonald's has redesigned its logo and restaurant design in 2006. In addition, it has introduced some new practices. In a result, remodeled restaurants have seen 8-9% higher than average market growth. McDonald's should finish remodeling all of the restaurants and adapt the best practices in them as soon as possible. Changing customer habits represent new needs that must be met by businesses. So far, the company has been successful in introducing its McCafé, McExpress and McStop restaurants to meet the changing customer habits and the needs of previously untapped customer groups.Due to government and various organizations attempts to fight obesity, people are becoming more conscious of eating healthy food rather than what McDonald's has to offer in its menu. Local fast food restaurants can often offer a more local approach to serving food and menu that exactly represents local tastes. Although McDonald's does a great job in adapting its own menu to local tastes, the rising number of local fast food chains and their lower meal prices is a threat to McDonald's. The business receives a part of its income from foreign operations. The profits that are sent back to US have to be converted into dollars and may be affected by the exchange rates, especially when the dollar is appreciating against other currencies. In 2012, McDonald's profit was largely affected by appreciating dollar. McDonald's has already been sued for many times and lost quite a few lawsuits. Lawsuits are expensive as they require time and money. And as McDonald's continues to operate more or less the same way, there is high probability for more expensive lawsuits to come.

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