Why McDonald's is a significant business in its industry:
McDonald's held, by far, the largest market share of the fast food industry in the United States in 2015. The Fast Food Market Size is $245 billion worldwide, McDonald's has a market share of 10% of the world wide fast food market.
How has McDonald's contributed to employment?
McDonald's employs millions of people worldwide not only directly but also indirectly. For example by having such high demand from the livestock company they order from they offer employment to all those involved in the production and delivery of said livestock.
The extent that technology has had on McDonald's:
McDonalds's franchises are usually highly reliant on technology as almost, if not everything, in McDonald's stores are technology based. McDonald's ordering system right down to creation of food is reliant on technology.
A lot of McDonald's store also offer drive through which is a very big advantage if possible to have since most people (especially in busy cities like Sydney) lead very busy lives and will most like not be bothered to cook at home or stop in and eat so they simply drive through collect their food and go to their comfort of their home to eat it.
Uber is another collaborating company that signifies the effect of technology on McDonald's as a company. By partnering with Uber, McDonald's is making their product even more easily accessible thus raising already great profit.
McDonald's is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. McDonald's restaurants are found in 120 countries and territories around the world and serve 68 million customers each day. McDonald's operates 36,899 restaurants worldwide, employing more than 375,000 people as of the end of 2016. McDonald's is the world's largest restaurant chain by revenue, serving over 69 million customers daily in over 100 countries across approximately 36,900 outlets as of 2016. The two main competitors for McDonald's are
the other two fast food chains Hungry Jack's and KFC.
Challenges the business is likely to face during this stage of the lifecycle:
1. It can be difficult for McDonald's which is in its mature stage of lifecycle, to continue to thrive on its own due to globalisation which has caused many different companies to be continuously cooperating with one another more than in the past decades, causing competitors such as KFC to be utilising one of the main business techniques McDonald's was using over the past decades.
2. In this day and age, people are becoming further and furthermore interested in health and less interested in junk food which may negatively affect McDonald's as a brand all together. McDonald's will have to make sure to always keep up with current societal health standards in order to remain at the top of its market.
Skills of effective management recommended are fully utilised by McDonald's during the business expansion:
1. Marketing should continue to be one of McDonald's strongest focus.
2. McDonald's should try to follow trends as much as possible in order to keep up with further globalisation occurring in our day and age.
Recommendation and Justification of appropriate legal structure for the current circumstances of McDonald's:
In the past few years McDonald's has legally structuring itself geographically, according to CEO Steve Easterbrook, in 2015 McDonald's simplified their legal structure by splitting it into four different groups: the flagship U.S. market, established international markets such as Australia and the United Kingdom, high-growth markets such as China and Russia, and the rest of the world. This decision made was a very good decision and I recommend it stays in place at least until the end of its efficiency. McDonald's will have to be able to track their company very closely to make sure the legal structure currently chosen is the one best suiting them throughout every following stage.
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