Mcdonald's Case Analysis Of Mcdonalds

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McDonald’s is one of the largest chain of hamburger fast food restaurants. This company has been operating in America since 1955, and it is known for its burgers and fires. The revenues recorded by the company during the financial year ended 2014 were $27,441.3 million McDonald’s has more than 1.7 million employees and more than 34, 000 restaurants in 119 countries. These revenues come from rent, royalties, and fees paid by the franchises and sales in company operated restaurants (Humphries and Geddy, 2015. P.11). this company was founded in the United States; in its Webpage the company provides a brief history of how they began. In the beginning it was a barbecue restaurant. Then, they organized their business as a hamburger stand, and at …show more content…
The company has been accused of avoiding taxes. Some other disputes are related to termination of jobs, hiring, pay practices, wage and hour disputes, and promotion. (Derousseau, 2015, p. 1). These tax evasion controversies and lawsuits can tarnish the brand image of McDonald’s. Additionally, the sales can suffer certain impacts in the long term. Low Differentiation
McDonalds recently has being competing by additional prices instead of price, and they are not being able to differentiate from other fast food restaurants not only in the United States but also in the other countries where the franchise operates. Opportunities
Growth in the Fast-food Market According to Elliot Maras, the foodservice industry has a promising future because the majority of citizens are opting for inmediate consumption food. As a result, even traditional food retailers are incorporating prepared meals, which has blurred the line between retail and foodservice (2015, p. 1). This growth is expected to continue in the next few years, and this is attributed not only to the increase in demand from consumers but also to the stronger economic growth in the United States. McDonald’s can take advantage of this growth in the foodservice market, which will lead the company to get even more
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Some critics sate that the aggressive marketing practices of chains such as McDonald’s are contributing to this problem. Robinson and Bloom assert that “the threat of litigation and legislative action may encourage food companies to restrict some of their more aggressive marketing tactics (2015, p.299). McDonald’s can respond to this effort by state legislature by incorporating nutritional labeling in all the restaurants and adding more information to their

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