McDonald's - created from Mind Map

Seite 1

Bussimess Fundamentals

Functions of Business

Entrepreneurship and Business Ethics

Personal finance

Needs/ Wants

Supply/Demand

International business types/methods

Types of business

5Ps of International Business

Trade Agreements

People need greeting service, good environment, food and drink from McDonald's. Physiological needs and esteem need.

People want simplified mene, fast food,tasty burger, lower price and good customer service from McDonald's.

Supply: Advancement in technology increases production in factories. Low price on ingredients decrease cost of production. Increase production of ingredients.

Demand: Promotional event, economic downturns: people turn away from restaurants to fast food chains for expensive meals, and incorpor ation of healthier meals to suit the needs of calorie mindful customes.

Public Fast food restaurant chain

Sole Proprietorship:Owner by one person

Price: McDonald's is a worldwinde company with locations all around globe. There are different menus in different countries, food prices are not the same. But the Big Mac, is available across the board. To understand how the price compares around the world, the currencies were converted to represent the U.S dollar amount. (Spoon University, 2016)

Product: The McDonald’s menu in each country is different and is based on the climate and environmental conditions of each country. For example, Taro Pie is only sell in China, because McDonald's used a taro that grew only in China. It’s stuffed with bright purple taro root. (firstwefeast, 2013)

Proximity: Usually McDonald's is opened in a plaza or inside a shopping mall. Because people often feel thirsty or hungry when shopping in malls, so they can go to McDonald's to eat something. So the mall can bring popularity to McDonald's. Next to McDonald's, there will usually be other fast food outlets, such as KFC or Burger King. They can also bring some customers to McDonald's through competition.

Preference：People now prefer healthy foods, and McDonald's and KFC have been criticized because food is too greasy. However, the subway has been favored by most people today because the sandwich of the subway is relatively healthy. (QSR, 2010)

Promotion：McDonald's in different countries has different discounts. But McDonald's now has a discount McDonald's sales up 5% thanks to all-day breakfast and other promotions.(McDonalds, n.d.) And the new promotion is you can get a free drink,once your loyalty card is full, with six stickers, enjoy your free hot drink.

America’s oldest Free Trade Agreement (FTA)

Factors of Production

Production Process

Productivity

Functions of Management and Leadership

4Ps and 2Cs of Marketing

Forms of Media/Promotional Vehicles

Accounting and Financial Statements

Four Factors of Production at McDonalds：Phase 1: Production During the production phase at McDonalds, food is produced to be sold to customers. Four Factors of Production Land: Natural resources that are used to make goods and services Labor: The effort that people devote to a task for which they are paid Capital Resources: Any human-made resource that is used to create other goods and services. Entrepreneurship: Combining land, labor, and capital to create and sell goods or services for a profit.Phase 2: Packaging During the packaging phase, food is packaged to be sold. Cardboard, paper bags, and water are all land resources used during this step. Phase 3: Distribution，During the third phase, distribution, the food is distributed to both restaurants and customers. (Prezi, 2016)

Purchasing:McDonald's invest in Canada’s agricultural sector by sourcing quality food products domestically, including the annual purchase of more than $887 million in food and materials from over 100 suppliers across Canada each year. Processing: All McDonald's products, from the selection of ingredients through preparation and cooking, comply with the most stringent food safety and quality standards. Every procedure is monitored thoroughly to ensure. Qulity control：All McDonald's® sources only the best products from designated suppliers, all of whom are subjected to strict standards, then prepares this quality food in a hygienic manner. Grading：McDonald's use all Grade A materials to make food.

McDonald’s works toward maximum productivity in all of its business areas. The following are some notable productivity measures or criteria used in McDonald’s business: 1.Order fulfillment rate (McDonald’s restaurant productivity) 2.Stockout rate (Intermediary/distributor productivity) 3.Timely delivery rate (McDonald’s delivery productivity). (Panmore, 2017)

McDonalds uses the collaborative management approach which connects all the global franchisees worldwide under the umbrella of single company name . Management encourages the practice of working. (Ukessays, 2015) Democratic-style leadership:The leader Skinner in McDonald's believes in finding the talent therefore he assigns different tasks to his employees and the best one is awarded and granted with more responsibility. Skinner places importance on values and ethics.

Price: McDonald's has more price reduction compared to KFC and Burger King. They offer a very competitive food price.

Product: McDonald's takes into amount cultural factors in serving the Malaysian consumers. The food serve is hala and servers local taste very well.They have wide range choice of menu similar with Burger King.

Place: In terms of distribution, McDonald's have 185 restaurants nationwide. They are buit or open in retial area's like shopping malls. They also open in some rural area's .

Promotion: McDonald's television advertisement is place on seasonal basis which they only advertise during festival seasons and movie.

Consumer Market: Demographics:Age: above 3 years-old Gender:Male&Female Income: the price of McDonald's food are cheap, so any income can afford. Lifestyle:Beliefs: all Motivation: people who feel thirsty or hungry.

Competitive Market: Direct Competitive: Burger King, Wendy's, Pizza Pizza, and so on. Indirect Competitive: Clothing store like H&M, Cineplex, and so on.

McDonald's maintains an extensive advertising campaign. In addition to the usual media such as television, radio and newspaper ads,the company makes significant use of billboards and signage, and sponsors sporting events ranging from Little League to the FIFA World Cup and Olympic Games.

On January 25, 2018, McDonald's Board of Directors declared a quarterly cash dividend of $1.01 per share of common stock payable on March 15, 2018 to shareholders of record at the close of business on March 1, 2018. In the U.S., fourth quarter comparable sales increased 4.5% as a result of strong performance of core menu items featured under the McPick 2 platform and beverage value, as well as strong consumer response to the new Buttermilk Crispy Tenders and delivery. Operating income for the quarter increased 4%, reflecting higher franchised margin dollars and G&A savings, partly offset by lower Company-operated margin dollars. (amigobulls, 2018)

Characteristics/Skills of Entrepreneurs

Company history

New Product Development

Corporate Ethics and Corporate Social Responsibility

Ray Kroc is the owner of McDonald's.Ray Kroc never gave up.He constantly innovated.He constantly innovated.Ray needed encouragement.Ray was driven and had vision. （Smarthustle， 2017）

The first McDonald's restaurant was started in 1948 by brothers Maurice (“Mac”) and Richard McDonald in San Bernardino, California. On May 4, 1961, McDonald's first filed for a U.S. trademark on the name "McDonald's" with the description "Drive-In Restaurant Services", which continues to be renewed.The present corporation credits its founding to franchised businessman Ray Kroc in on April 15, 1955.

McDonald’s in France has just rolled out a new product named the McBaguette for a six-week market trial, and it’s a perfect example of great product development. （Cedarpointconsulting， 2016）

The McDonald 's code of ethics also pledges to resolve any private or public conflict that may take the position of economic , political , social , financial and environmental stanceMcDonalds has been held guilty for causing health related problems such as obesity. Taking such allegations into consideration, the fast food chain has changed its menu and thereby included more healthy food options, while serving its core products like burgers and fries. Apart from including healthy products in a menu, McDonalds has also incorporated the concept of CSR in its business activities. McDonalds has also collaborated with its suppliers and initiated Agricultural Assurance Programme, with an intention to minimize environmental impacts caused because of its supply network. （Dissertationhomework，n.d.）

Sample Budget From McDonald's

Exemplary Employers – McDonald’s

McDonald's Reveals Plans

Bloggers concluded from the sample budget that McDonald's is telling workers they have to get a second job and turn off the heat to survive.McDonald's is not, as Huffington Post claims, saying that workers need $2,060 per month to survive. It is merely giving a sample budget for someone who earns that amount of money. $20 a month on health care sounds low, considering that as of 2010 McDonald's own medical benefits for low-wage workers started at $14/week. (Businessinsider, 2013)

McDonald’s has launched several new programs to promote financial literacy and retirement planning among their employees. McDonald's provides employees with insurance plans to help them pay for medical expenses. McDonald's also offers employees discount programs to help them save money in their daily shopping. (PFEEF, n.d.）

McDonald's is set to embark on a fresh set of management layoffs that are intended to wring out $500 million in unnecessary costs no later than December 31, 2019. (Inc, 2018) The value of stocks after McDonald's layoffs is expected to increase

Inside Mc Donalds Meat Processing Plant (video/mp4)