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McDonalds
McDonalds is one of the world’s largest fast food companies ever established with over
30,000 restaurants and locations in over 100 countries. McDonalds was originally created in the
1940’s by two brothers, Richard and Maurice McDonald in San Bernardino, California.
McDonalds started out as a food stand with a large variety of BBQ food items, as well as hot
dogs and hamburgers. Noticing how burgers were in high demand they branched out from a food
stand and opened a burger restaurant with a much simpler menu including the following items:
hamburgers, cheeseburgers, French fries, soft drinks, milkshakes and apple pies. Seeing how
well McDonalds was doing Ray Kroc became the first McDonalds franchisee in 1954 and later
bought out the company and expanded all over the U.S. by the 1970. In over 50 years of
successful business McDonalds manage to position themselves in different marketplaces all over
the world. By diversifying the menu to meet the consumer needs of the different marketplaces
McDonalds has been able to become a prosperous brand globally.
With success comes great responsibility. McDonalds has advanced rapidly over the years
expanding from a local retailer to a multinational corporation. Becoming a successful brand is
not an easy task there are risks, opportunities, and threats, in terms of political, legal and
economic environment that arise. There are also cultural differences, religions and leadership
styles in the diverse marketplaces that create obstacles for entry and operation for McDonalds.
Creating an entry strategy and operating procedure will be just what needs to be done in order to
be accepted in foreign markets. All of those areas of concern will be addressed as well as, the
various aspects of McDonalds, as a multinational corporation operating in a foreign country.
It’s not easy to maintain a positive reputation and there are quite a few factors
McDonalds need to consider, in terms of political, legal, economic environment. Political factors
are government policies on regulations such as health and workers protection that is controlled
the individual marketplace. As a successful company in the global market it is in the best interest
of McDonalds to build a good relationship with the government of the operating country.
Following all the guidelines and requirements for the company gives McDonalds the advantage
of being able to function properly by being in the good graces of the government. In order to do
that McDonalds must familiarize themselves with the law of the operating countries. Being a
fast food company one of the main concerns are the health risk associated with consuming too
much fast food. Studies have shown that too much consumption of fast food increase calorie
intake; increase the chances of diabetes and obesity. In terms of workers protection the
government has implemented regulations that allow employees to work a certain number of
hours, which requires the company to employ a certain number of staff.
Maintaining a positive public image is essential for McDonalds to remain successful.
Their success does not solely depend on their level of sales but on their legal requirements, as
well. Some legal requirements include, but are not limited to employment standards, and
nutritional substances, and quality requirements. For their protection McDonalds provides
consumers with a nutritional fact sheet displaying every item they sell along with the amount of
calories in each item. This helps McDonalds cover themselves from negative feedback regarding
obesity and other health concerns. In terms of employment standards McDonalds must take into
consideration operating hours and age of employment, where in most places the minimum age of
employment is 16 years old. It is very important that these legal requirements are made priority
for McDonald's to function because the failure to abide by these requirements can have a
negative impact on the company.
Despite the fact that the economy is not at its absolute best McDonald's continues to
prosper. Consumers buying power influence the economic environment. McDonald's has an
effect on the economy by doing business internationally. Having a blooming business in a local
market McDonald's must deal with government regulations on tax. Tax rates vary from country
to country. Environmentally, McDonald's having such a steady flow of consumers daily creates a
large amount of waste production. Considering environmental factors in its strategy would help
McDonald's save the environment.
