McDonald’s company analysis Report

            McDonald's is basically a fast food company, which established in the year of 1940 initially as a restaurant functioned by Richard and Maurice McDonald, located in San Bernardino,California. They transformed their business from a simple burger stand, and turned the company into a franchise model, along with the “Golden Arches” symbol that being presented in the year of 1953 at in Phoenix,Arizona. In 1955, a businessman named Ray Kroc merged the company as a franchise and ensued to buy the chain commencing the McDonald brothers. McDonald's initial head office was located in Oak Brook, Illinois, but later on, the company relocated its international head office to Chicago in the year of 2018 (Britannica, n.d.).

McDonald’s company analysis

           McDonald’s activates the business in the fast food field, which consist of vending foods and also beverages for fast consumption both in the retail locations as well as in “take away.” The suppliers, indeed, has influenced McDonald's in the context of the capability from the company to make productions based on the accessibility of raw resources. The company orders the raw resources in wholesale to get lower and cheaper prices and also to reduce the cost for the production as well. The sales profits of McDonald’s improved by 8% per annum starting from the year of 2010, and the cost of sales reduced by 5% annually started from the year of 2010 as well (GREGORY, 2018).

Competitor Analysis of McDonald’s company 

            Fast food, especially burgers, fries, etc. are considered as junk-food due to the high-calories which contained within the food.  However, McDonald’s handle this issue and survive in the competitive market industry by focusing on the health side with introducing of some items of healthy food within the menu.

            Since the fast food industry is considered to be highly competitive, McDonald’s has the main competitors mentioned as KFC, Burger King, and also Subway. KFC is claimed to be the biggest competitor as the company operates for more than 11,000 franchises which located in above than 80 countries across the world (writepass.com, 2016). 

Market Analysis of McDonald 

            McDonald's or also known as MCD is a company that isoperating in fast food service restaurants with above than 35,000 franchises in more than 100 countries across the world. The company employs the amount of above than four million employees and provides its services for about 70 million consumers daily. Based on the report from IBISWorld in the year of 2014, McDonald’s has the biggest stake in the business of fast food restaurant of 17% within the United States. 

            For around 81% of McDonald's restaurants are formed in the franchise, and only 19% of them are formed as company retained restaurants. Within the franchising business, McDonald's has a conservative franchise contract along with the certificate contract as well. In the conservative franchise contract, McDonald's offers the assets for place or location, while the certificate contract creates the authorization for the assets of the location. McDonald's separates its profits into company-functioned as well as franchise forms. From the franchise form, the company gain revenues from the rental, royalties, and charges as well. The revenues of McDonald's cultivated for 27% within three years. At the end of 2007, the company reported for 22.8 billion along with 9% progress in operating income up to 3.9 billion (JONES, n.d.).

References of McDonald’s company analysis

Britannica, T. E. (n.d.). McDonald's. Retrieved from https://www.britannica.com/topic/McDonalds

GREGORY, L. (2018, September 1). McDonald’s Five Forces Analysis (Porter’s Model) & Recommendations. Retrieved from http://panmore.com/mcdonalds-five-forces-analysis-porters-model

JONES, A. (n.d.). McDonald’s. Retrieved from https://marketrealist.com/2014/07/must-know-company-overview-mcdonalds/

writepass.com. (2016, October 13). Analysis of McDonald’s Corporation. Retrieved from https://writepass.com/journal/2016/10/analysis-of-mcdonalds-corporation/