10/22/2012

McDonalds

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Ray Kroc, the founder of McDonalds, started as a distributor of a five-spindled milk shake maker in 154 when he was 5 years old. On hearing about the McDonalds hamburger stand in California running eight Multimixers at a time, he packed up his car and headed West.

He convinced Dick and Mac McDonald, the owners of McDonalds Restaurant, San Bernardino, California opening up several up several restaurants. Ray Kroc thus opened the Des Plaines restaurant in 155. First days revenues-$66.1! No longer a functioning restaurant, the Des Plaines building is now a museum containing McDonalds memorabilia and artifacts, including the Multimixer!

McDonald’s has a People Promise and a People Vision. The People vision is “To Be the Best Employer in Each Community Around the World.” and their People Promise is “We Value You, Your Growth and Your Contributions.”

In 165 McDonalds went public with the companys first offering on the stock exchange. A hundred shares of stock costing $,50 dollars that day would have multiplied into 74,60 shares today, worth over $.8 million on December 1, 18. In 185 McDonalds was added to the 0-company Dow Jones Industrial Average.

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The Big Mac, the brainchild of Jim Delligatti was introduced in 168. In 7, owner operator Herb Peterson developed the Egg McMuffin. In 174 Fred Hill of the Philadelphia Eagles teamed up with McDonalds to create Ronald McDonald House. Here the families of critically ill children have a place to call home while theyre away from home as the young patients undergo treatment for their conditions. Since introducing the Happy Meal in 17, kids visits have been made more special generating interest for collecting Happy Meals toys and boxes the world over. Also now a days, one can see McDonalds in more non-traditional locations like Wal-Mart, Amoco and Chevron stations, with full menu offerings and dining room seating, just like youll find in a traditional McDonalds.

McDonalds has always been a franchising Company and has relied on its franchisees to play a major role in its success. Approximately 70% of McDonalds worldwide restaurant businesses are owned and operated by independent businessmen and women as franchisees. McDonalds continues to be recognized as a premier franchising company around the world. McDonalds has been perennially named as Entrepreneur Magazines number one franchise.

McDonalds franchising system is built on the premise that the Corporation can be successful only if their franchisees are successful first. Success for McDonalds Corporation flows from the success of its business partners. McDonalds franchise only to individuals, not to corporations, partnerships, or passive investors. McDonalds is an equal opportunity franchiser, with a proven track record of franchising to all segments of society. In the U.S., minorities and women currently represent over 4% of the franchisees and 70% of all applicants in training.

McDonalds is the worlds community restaurant. They have a long-standing commitment to a workforce that is diverse. They believe in developing and maintaining a diverse workforce that will strengthen the McDonalds system. Diversity at McDonalds is understanding, recognizing and valuing the differences that make each person unique.

McDonalds has been recognized for its many contributions in the following areas

·Top 5 Companies for People with Disabilities

·Best Employer for Asians

·Top 50 Places for Hispanic Women to Work

·Fortune Magazine - Top Places for Minorities to Work

·Working Mother Magazine - Top 10 Diversity Champions

·Hispanic Magazine - Top 50 Corporate Women in America

McDonalds is committed to recognizing the talents and job performance of all employees and values the contributions that come from people with different backgrounds and perspectives.

McDonalds commitment to social responsibility is an important part of their heritage and has become increasingly more important as their business has grown to span 118 countries. McDonald’s is focused on and committed to doing the right thing for the local communities in which they operate and for the customers they serve. Their philosophy of doing good and giving back has always been at the heart and soul of the McDonalds business -like French fries and hamburgers. McDonalds was setting the standard for social responsibility, and is a leader in this regard.

McDonalds has restaurant locations in 118 countries all over the world. They have modified their business by serving according to their local market needs. They have adapted to the needs of the people of the countries they serve taking into account the religious and cultural beliefs of their customers in the markets they are serving. As an example let me note the expansion of McDonald’s in India. McDonalds India opened its doors to India in October 16. Now McDonald’s has established family restaurants in Bombay, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur and now on the Delhi-Mathura highway. As a respect to the cultural and religious believes of the billions of Indian’s, McDonald’s does not serve beef in its menu. They have developed lamb burgers as a replacement. McDonalds in India has specially developed a range of 100% pure vegetarian food to offer vegetarians, a choice. Even the mayonnaise used in the items is eggless. McDonald’s is likely to extend the results of their experimentation with vegetarian products in India, the world over, as more and more people are becoming health conscious. Taking in to account the Indian palate, McDonald’s has prepared the choicest of products using spices appreciated by the customers. Due to the lack of proper infrastructure for storage and transportation under controlled conditions, McDonalds is setting up unique Cold Chain. By doing this McDonald’s is committed to providing quality products while supporting other Indian businesses. The Cold Chain is necessary to maintain the integrity of food products and retain their freshness and nutritional value. Cold Chain refers to the procurement, warehousing, transportation and retailing of food products under controlled temperatures. Setting up the Cold Chain has involved the transfer of state-of-the-art food processing technology by McDonalds and its international suppliers to pioneering Indian entrepreneurs, who have now become an integral part of the Cold Chain.

On the SWOT analysis, the following has been identified as the Strengths,

Brand name, Franchise network, Pricing, Service and Satisfaction, Customer relationship and Partnership. The following has been identified as its Weakness, management structure, opening too many new stores that compete against each other instead of other rivals, big investment in real estates because it owns not only the land but also the buildings in many of its franchised locations world wide. There are quite a few Opportunities for McDonald’s that I have identified, namely, expanding the number of products it serves, attracting health conscious people by providing vegetarian menus, implementing as a market test successful formulas that has worked at different locations world wide, being more competitive in pricing and promotion. McDonald’s has a lot of threats from many competitors world wide. The field of fast food has so many new aspirants that it has become highly competitive. Biggest threats are from rivals like Burger King, Wendy’s, Carl’s Junior, Jack in the Box, Taco Bell, Del Taco and many others. McDonald’s has to be one step ahead in order to wade away these competitors successfully. They need to be aggressive and improve the quality and also increase the menu choices for all walks of life.

McDonalds 00 Financial Report states that approximately 80% of McDonald’s restaurants and about 75% of the total revenues of McDonald’s restaurants are in nine markets Australia, Brazil, Canada, China, France, Germany, Japan (a 50%-owned affiliate accounted for under the equity method), the United Kingdom and the United States. The Company also operates other restaurant concepts under its Partner Brands Boston Market, Chipotle Mexican Grill and Donatos Pizzeria. In addition, the Company has a minority ownership in Pret A Manger. In March 00, the Company sold its Aroma Caf� business in the U.K.



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