mcdonald's corporation is a largest chain

1. Introduction

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. At one time it was the largest global restaurant chain, it has since been surpassed by Yum!, operator of KFC and other chains, and Subway.

In addition to its signature restaurant chain, McDonald's Corporation held a minority interest in Pret A Manger until 2008, and owned the Chipotle Mexican Grill until 2006 and the restaurant chain Boston Market until 2007. The company has also expanded the McDonald's menu in recent decades to include alternative meal options, such as salads and snack wraps, in order to capitalize on growing consumer interest in health and wellness.

Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to obesity trends in western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include such healthier alternatives such as salads, wraps and fruit.

Question 1: What are objectives and responsibilities of your chosen organization?

Discuss and analyze for example category/sector, Missions/objectives, the stakeholders, responsibilities (ethical, social, environmental)

McDonald's is the leading global foodservice retailer with more than 31,000 local restaurants serving more than 58 million people in 118 countries each day. More than 75% of McDonald's restaurants worldwide are owned and operated by independent local men and women.

The company serves the world some of its favorite foods - World Famous Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin.

Their rich history began with our founder, Ray Kroc. The strong foundation that he built continues today with McDonald's vision and the commitment of our talented executives to keep the shine on McDonald's Arches for years to come.

McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile.

McDonald's mission is to be our customers' favorite place and way to eat

Brand promise is to provide Simple Easy Enjoyment to every customer at every visit.

The company value is to be our customers' favorite place and way to eat - with inspired people who delight each customer with unmatched quality, service, cleanliness and value every time.

The stakeholder of the McDonald's is the customers, employees, suppliers, contractors, host countries, government, owners or shareholders, investors and communities.

Owners or shareholders are interested in the company profit, performance and direction

Government is interested in taxation, VAT, legislation and unemployment

Senior Management staff is interested in the company performance, targets and growth Non-Managerial staff is interested in rates of pay and job security.

Trade Unions is interested in working conditions, minimum wage, and legal requirements.

Customers are expecting value, quality, customer care and ethical products.

Creditors have interest with credit score new contracts and liquidity

Local Community is interested in jobs, involvement, environmental issues and shares

Responsibility comes down to the food. That's what McDonald's is all about. The food they and where they serve it...the welfare of the employees and the suppliers' employees...wherethe foodcomes from...and so much more. Running restaurants is a multi-faceted endeavor, but ultimately, it all comes back to the food.

Responsible food means all about the nutritional aspects of the food they serve. For others, the environmental footprint is a critical factor. Still other companies are more focused on McDonald's people practices or animal welfare standards.

McDonald's works with a lot of internal and external stakeholders to balance a complex and sometimes competing set of ethical, social and environmental considerations. There are challenges and potential trade-offs along the way, and there is always room for improvement. But as a company, they are committed to being a brand that their customers will trust to do the right thing.

Bringing responsible food to the front counter is that McDonald's is working closely with suppliers and franchises that are equally committed to delivering safe and ethically-sourced products to their customers in 118 countries around the world

Question 2: The social, economic, and global environment in which your chosen organization operates

How do these factors specifically affect the organization?

A person's social environment includes their living and working conditions, income level, educational background and the communities they are part of. Modern social life is usually based on IT sources, you can not imagine the businesses run without the IT.

If the growth of popular social networking sites like Facebook (more than 150 million users worldwide) and MySpace (110 million) is any indication, the world is rapidly changing how it communicates. Building on these obvious cues, McDonald's and other restaurant companies worldwide are creating similar online networks to boost employee interaction.

In a society, the fast food is usually cheap and not quality product in people perception. And also the modern life is more and more getting busier and people does not have time to cook for themselves and they prefer to buy from outside. The company has decided to have one mom every day to change their mind. Since moms are often the key decision makers for family meals, we recruited a group of everyday moms in 2007 to be our first Moms' Quality Correspondents (MQC). It was important that they change the negative perceptions about the quality, safety, and nutrition of the food they love and serve

External factors including unprecedented volatility in foreign currency exchange rates and commodity costs will continue to pressure revenue and margin comparisons in the first quarter. Weaker foreign currencies, including a significant decline in the Eastern European currencies where McDonald's primarily operates Company-owned restaurants, are expected to negatively impact results. If foreign currency rates remain at current levels, currency translation is expected to negatively impact first quarter revenues by at least $600 million and earnings by $0.07 to $0.09 per share. In addition, as previously stated, commodity cost pressures are expected to have a greater impact during the first half of the year.

The company is committed to taking a "total life cycle" approach to solid waste, examining ways of reducing materials used in production and packaging, as well as diverting as much waste as possible from the solid waste stream. In doing so, they have been created three courses of action: reduce, reuse and recycle.

The company has aggressively taken the measure to minimize energy and other resource consumption through increased efficiency and conversation. The have decided no to permit the destruction of rain forests for beef supply.

Question 3: Behavior of the organization and its marketing environment

Cultural factors and other challenges the organization may face

McDonald's has been ranked among the 20 Top Companies for Leaders, worldwide. This is the latest recognition of their effectiveness in identifying and developing leadership potential within the company. Last year, Leadership Development magazine ranked them among the top 10 for leadership development among large North American companies.

McDonald's has been named one of the world's most ethical companies by Ethisphere magazine. This honor recognizes a select group of companies that are at the top of their industries for ethical leadership.

According to the marketing environment McDonald's is proud to announce its support of Conservation International's (CI) program to protect wild pandas, one of the Earth's most threatened species. This latest initiative builds on the 20 year partnership between the two organizations to create positive environmental solutions for our planet

McDonald's Australia has published its second Corporate Social Responsibility Report which has made toward a sustainable future since its first report was published, at the end of 2006.

The report focuses on areas of the business that stakeholders have indicated are most important to them. These are the company's:

  • Impact on the environment and the company's ability to operate its business in a sustainable manner.
  • Menu choices and food quality, as well as purchasing and marketing policies.
  • Employee practices and training opportunities.
  • Contributions to the community on a local and national basis.

Everybody knows when there is a sign of Im lovin it that is McDonalds. This is kind of marketing tool and approach to customers able to recognize them. The brand ambassador is the crown with yellow and red clothes and big M.

Question 4: International trade - impacts and implications?

(for example Trading blocs, currency, fluctuations, energy prices, or national vs. foreign relations of trading economies)

Trade Union is interested in working conditions, minimum wage, and legal requirements.

Every country has different currency; exchange currency rate will impact company income and profit. As I mentioned above in foreign currency exchange rates and commodity costs will continue to pressure revenue and margin comparisons in the first quarter of McDonald's. Weaker foreign currencies, including a significant decline in the Eastern European currencies where McDonald's primarily operates Company-owned restaurants, are expected to negatively impact results

Many countries try to create barriers to trade which may occur in attempt to protect local companies and their employees, encourage local production and protect new industries, encourage exports and so increase the flow of inward payments, discourage the imports and so reduce the flow of outward payments, prevent dumping of foreign foods, where goods are sold at low prices to encourage new production or ailing industries in the other country and promote political objectives for example, stopping trade with countries with a poor human rights record.

McDonald's has always been a franchising company and has relied on its franchisees, the Owner/Operators, to play a major role in the System's success. McDonald's remains committed to franchising as a predominant way of doing business. Most Owner/Operators enter the System by purchasing an existing restaurant in the country, either from McDonald's or from a McDonald's Owner/Operator. A small number of new operators enter the System by purchasing a new restaurant.


McDonald's as a global leading foodservice retailer, the company has been working to achieve to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile. And stakeholders of the McDonald's are the customer, employees, government, creditors, trade union and host countries.

McDonald's takes its responsibility to the environment seriously. In 1990, the company established the Global Environmental Commitment, and since then, they have been focused on incremental improvements designed to continuously improve their environmental performance, both in their supply chainand in their restaurants.

And then there has been discussed the external environment which influence to the company such as social, economic and global. The company has been impacted by economic environment more seriously which is related to the company profit and loss in terms of the period. Since 2008, global recession has been impacted to all the companies.

To do good and successful business, the company should have the strategy and marketing plan which has been discussed in question 3.

As mentioned above, McDonald's is the global leading company and 119 countries have been worked with McDonald to franchise the company in the countries. To leading global company meet some barriers to trade in the country and there has some impact and implications on trading blocs, exchange currency rate, national vs. foreign relations of trading economies.


  • University of Sunderland, Contemporary Developments In Business and Management, England
  • Business Environment lectures are available online at (accessed 16/08/09)
  • About McDonald's is available online at (accessed 16/08/09)
  • Social responsibility is available online at (accessed 16/08/09)
  • Franchising is available online at (accessed 16/08/09)
  • McDonald's Corporate Social Responsibility - Nutrition & Well-being is available online at (accessed 16/08/09)
  • McDonalds history is available online at (accessed 16/08/09)
  • McDonald's Mission statement is available online at (accessed 16/08/09)

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!