Essay on Mcdonalds : A Fast Food Restaurant

777 Words Jul 31st, 2015 4 Pages
McDonalds is a fast food restaurant that services million of people around the globe daily. McDonalds are franchises. A franchise is the “license to sell another product or use of another’s name in business or both”((Ferrell, Hint, & Ferrell, 2009). McDonalds in the small business category as each store is owned by the franchise. Starting a small business can be risky, as most small businesses the individual is an entrepreneur. Being part of a franchise such as McDonalds, the entrepreneur can lose their desire to be creative, as they have to follow the guidelines of the franchisee. In the McDonald’s 24/7 turnaround case study, the McDonalds (franchisee) approach to stabilize sales in the early 2000’s can have a negative disadvantage to privately owned stores. The franchiser has to operate and produce the same as all stores. A large franchise such as McDonalds “has determined and documented exactly how it wants the business to run, its not looking for innovators to reinvent the wheel”. (Elgin, 2008). In conclusion, McDonalds was use to operating at a certain level regardless of its sales. With franchising, all stores do not have to operate the same; McDonalds is learning the concept of “ one size fits all” is not always the best business practice. In reading the McDonald’s 24/7 turnaround based on quality and service, McDonalds lost its focus by expanding too quickly by adding 2000 new stores per year and by not focusing on the end…

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