DB1_BBA

Posted: August 29th, 2013

DBI_BBA

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Question One

McDonalds Company is the biggest chain producer and supplier of hamburgers eateries, catering for over sixty million clients per day in more than one hundred countries worldwide. The company was first initiated in the year 1940 in the form of a barbecue buffet. However, in the year 1948, the company was restructured and transformed to a hamburger place using the policies of production lines. The main purpose of McDonalds is to ensure clients find the best means of eating and drinking by serving them the best food and beverages.

One of the strengths that have enabled the company to achieve its goals is the strong alliance established between the franchisees and sellers. This form of business strategy has enabled the business to provide reliable and pertinent experiences to clients once they visit their restaurants and become an essential part of their community. In addition, it increases the Company’s capability in identifying, implementing and balance their several innovative concepts in order to meet the varying needs and preferences of clients. The other strength is in the Company’s innovativeness in introducing new products.

Some of these products include coffee beverages and smoothies and other different types of burgers including the Angus. This has enabled the Company to expand on the selections of meal varieties they offer customers. The other strength is that the company’s operations have been distributed globally, and this means that the company is not limited in its access to various economies and currencies. Based on the trading aspect, McDonalds provides dividend yields that lead in the capital. This yield includes a part order of yearly dividend that was applied in the year 1976. Therefore, the yearly payment of dividends has increased from fifty-five cents each share in the year 2005 to two dollars and twenty cents in the year 2010.

Despite the Company having major strengths, it has also suffered from few setbacks in its weaknesses. For example, due to the difficulty in establishing the basic locations within the United States, it is forced to expand internationally and hence experience challenges when adjusting to the different cultures. This is because America is flooded with occupations of other restaurants that belong to other brands aside from McDonalds. The other weakness is that as the yearly dividend rambles continue, the rate of growth in the dividends has slowed down and has a high probability of following the same progress in the future.

One of the opportunities in McDonalds is in its accessibility to different locations outside America in which the company has given great consideration. For example, China can be an excellent opportunity since it represents a population majority of potential consumers in the Asian continent. The other opportunity is that their innovation in the set of food choices is restricted by creativity. The third opportunity is the availability of low interest rates that offer inexpensive capital for the growth and development of the Company. In addition, McDonalds has achieved at becoming the beginning foreign business in issuing the bonds denominated in Yuan in Honk Kong.

McDonalds has also experienced major threats especially from the government, where the state is considering imposing new policies that aim at fast food production. These policies are risky because they are likely to affect the business operations in a negative way by decreasing the Company’s revenue. The other threat involves facing competition from strong competitor Companies such as Burger King and Yum! The other threat involves economic instability, in which an increase in the price of goods leads to an increase in the expenses incurred in production. As a result, the consumers are also able to experience the hiking prices of goods and hence their demand decreases and hence leads to threatening the income progress of the Company.

Question Two

            I agree with your answer because it reveals how McDonalds values their clients. This is because they train their employees in offering high quality customer service despite having minimal social exposure in their work description. I also agree that McDonald’s workers labor in such a way that despite their limited involvement in their interactions with clients, they have instilled the skill of managing themselves internally by ensuring they give a pleasant, kind and positive impression to customers. Workers are expected to emulate this behavior irrespective of the customer’s reaction. The employees are also trained to be interested in understanding the operations that take place in restaurants in order for them to form a sense of self-importance and loyalty in their work description. As a result, it becomes easier for employees to work cordially with the management level. Employees also develop good communication skills through the managers’ efforts in applying concepts of growth, motivation, positivism, obligation and appreciation.

Question Three

I agree with your principles taken up by McDonalds. Your response engages on significant ideas in implementing effective marketing strategies. For example, the fact that McDonalds carries out research on information concerning trends of related products and services within the market before implementing its marketing strategy displays an effective way of marketing. Information systems are utilized in providing useful information that can assist the company in planning and developing new strategies for meeting the market demands. The control in the organizational structure influences the life of employees and hence motivates them in taking a helpful attitude towards their individualities and their surroundings. The marketing concept applied by McDonalds involves the gathering information about the features, requirements and needs of consumers in the market. The resulting information is meant to assist the relationship between customers and the Company since it enables the staff to concentrate on meeting the demands of their clients.