Sample Paper on The Prince and McDonald

The Prince and McDonald

Thesis Statement

The researcher sought to unveil the following issues about McDonald chain restaurant

  1. The reason behind McDonald Company big risk by investing in food chain stores.
  2. How McDonald has utilized Machiavelli prince behaviors to enrich its business?

Introduction

The prince behavior is one of the determinants of peace among citizens in a country. For our case the prince is supposed to undertake great projects so that people can appreciate him since big projects enhances his reputation. For a multinational company to thrive in the global market, it must take big risks in its quest for success. Mc Donald is one of the companies that have taken big risks in its global business. This success has seen the company make profits in the last few decades. It is the reason behind huge investment the company has engaged into in order to meet the needs of its customers all over the world. Demand for fast food stuff has been on the increases hence it possible for the company to sell quite a huge variety of their products (Abrams 24). The company has established several subsidiaries in most of the countries in the world. Some of the products it provides vary from hamburgers, French fries, milkshakes, soft drinks and desserts. Customer taste and preferences has affected the manner in which the company organizes its menu. They are now giving preferences to those desserts that customer continually asks for. It is demonstrated in most of their subsidiaries.

In the field of corporate governance, the company has engaged with various stakeholders including franchise business in an effort to serve the world market. Most of the restaurants are situated at strategic places especially in airports, corporate institutions and harbors. However, this does not mean that the company confines its operation to these areas; it has also established outlets in places that present great opportunity to transact business. Fast food business is one of the businesses that are faced with so many challenges culminating from the nature of the products they handle. It is very easy for the perishable foods that they sell to go bad. At the same time, the company strives to provide fresh foods to their customers.

In an attempt to produce optimally, the company may suffer from excess production that is in excess of the market demand. This means that the excess of what was needed in the market will have to go into waste. Another behavior of the prince explained by the Machiavelli, which is applied at the company, is the acts of making people love you because their goodwill is very important to your business. Mc Donald is extremely careful in meeting its customer’s demands and satisfying their specific needs (Buchan 71). They have come up with a strategy to cater for the customer’s specific needs in all areas of the business. One of the strategies is the inclusiveness of the health issues into their restaurant’s menu. Customers have continually expressed their health issues on the dishes they are offered in hotels. Therefore, any food business is required to include these issues into their menu so that they can maintain their businesses.

Mc Donald big investment portfolio

McDonald food chain restaurant has been utilizing the Machiavelli principle of befriending people to boost their customer base, which is growing rapidly in the world market. Customer satisfaction is one of the factors that affect the success of a company. This is because of the fact that consistent and successive transactions depends on the utility the customer attains from the consumption of the products (Buchan 38). In cases where customers are not satisfied, motivation of buying more and more get extinct and will look for alternative means which in most cases involve substituting the goods with competitors products. The company is creating an environment within the premises that suites customer taste and preferences. They are installing infrastructures that resemble their customer’s origins, height, and body and beliefs. An example, where an outlet that sells Chinese cuisine is decorated in Chinese designs, chairs, counters and desks that resemble their culture. These efforts are aimed at making the customers feel comfortable and have a hospitable experience no matter the location of the business premises.

The company is training its workers professional ethics and emphasizes on mastery of various languages. Customers are in a position to order their cuisine in their own vernacular languages all over the globe. It is possible because of the company initiative to train its employee’s different languages. Growth has been rapid because of quality services and products it offers to its customers. Quality maintenance in the market by the company is largely dependent on the supply chain. The supply chain used by McDonald restaurant helps to sell similar products in all its outlets all over the world. It uses two supply chain channels that are direct and indirect supply chain (Colley 45). Direct supply chain involves direct suppliers of goods and services while indirect means that the company appoints a third party to conduct supply activities on their behalf.

Figure 1 represents the supply chain that the company applies to make delivery of their products. Indirect supply in this case stands for the units such as primary processing plant, which make supply on behalf of the company. The supplier is evaluated before entering into a contract so that the company maintains its quality performance and assurance. In cases where quality is compromised, business failure is at a very high percentage. Direct suppliers on the other hand represent distribution centers belonging to the company. They supply goods and services to the subsidiaries. Purchasing for goods and services is centralized. This act enables the company to benefit from bulk buying where they are given discounts. It then distributes the products to the rest of the subsidiaries. This ensures that quality food is provided to the customers at all times.

Corporate governance

In an effort to create a friendly environment, the company has engaged in a campaign to protect the environment. Waste disposal is one of the areas they are extremely cautious about and they ensure that their wastes are disposed in a proper manner. It has also supported various initiatives in the world as an attempt of strengthening their relationship with customers and the public at large (McDonald 50). This is done through proper waste management, sustainable packaging and energy efficiency while still helping the hungry in the community. This action portrays the company as being socially responsible hence increasing its social welfare.

Good image for the company helps in attracting investor, traders and customers to the organization. Recycled bags for wrapping customer goods, use of natural gases and support to education policies in different countries enhance the company image. An example, of social corporate responsibility is where the company came in to help children and people with food when they perished in Haiti from the earthquake. All these action represents the efficiency and effectiveness of the governing body. It has employed more that 1.8 million people all over its one hundred and thirty four thousands restaurants. The company has been able to locate its subsidiaries in more than one hundred and nineteen countries. Therefore, it is able to serve more than sixty nine million people daily in the global market.

 

 

 

 

 

 

 

 

Figure2 shows the physical presence of McDonald in the globe.

On the map color red represents the presence of the company while absence of the company is represented by the blue color. It is therefore clear that McDonald has dominated the Europe, Asian and some parts of African markets. Market dominance of the McDonald Company is concentrated on those developed countries because of the availability of market for their goods and services.

Forces of demand and supply

These forces have triggered growth in the sense that the company has established outlets in the world to meet the demand. It has not only increased its profits but also its market infrastructure. This infrastructure enables smooth operations and enhances careful handling of customers who are the focal point of McDonald business (O’Brien, King, and Dojoo 24). However, rapid growth is faced with challenges such as high interest rates, high cost of operations and increased overhead costs. This was the reason as to why the company emphasizes on the formation of franchise business so that it can cut down the cost of overhead, which reduces profit by a great deal. The recorded growth from the year 2005 to the year 2013 can be demonstrated by the figure below. The trend shows increase in profit year in year out which is a contribution by the proficient management staff who works to meet their targets.

 

 

 

 

 

 

 

 

 

Source: McDonald’s. “McDonald’s revenue from 2005 to 2013 (in billion U.S. dollars)*.” Statista – The Statistics Portal. February 2014. Web. 03 February 2015. <http://www.statista.com/statistics/208917/revenue-of-the-mcdonalds-corporation-since-2005/>

Figure 3 represents the profit trends observed in the last eight years by the McDonald Company.

It can be shown in the diagram that profits have been earned by the company successively with a consistence growth in the market share. In the year 2009, there was a big drop in profit due to economic hardships that affected the market. From this point up to the year 2013, the trend has been in the positive direction. The revenue created by the company helps in expanding the organization to different location in the globe.

Conclusion

McDonald Company is one of the most successful food chains company in the world. Despite economic hardships in the market, the company is able to woo customers to purchase their products. This has led to the growth of the company and creation of wealth. They engage in bulk buying for their inputs so that they can be sure of the quality they provide to their customers. This is because the company assures customers of quality products and any breach of this contract will lead to greater losses for the company. Huge revenues collected by the organization have enabled the company to expand in a rapid manner. Health maters have raised an alarm to most of the businesses in the hotel and hospitality industry. Therefore, hotel businesses are now becoming more and more sensitive to the health of their customers. This has led to the introduction of healthy ingredients in the menu for most businesses. It has brought in competition because customers flee away from hotels that are not health sensitive towards those that has embraced the new directives.

On the other hand, McDonald Company has benefited in one way or another by using these health menus to attract customers who are health sensitive. This has created business for the organization, making profits that enable it to expand and improve its already existing subsidiaries. Environmental issues have also brought in some concerns for the business (Striffler 22). Keeping the environment clean enhances the health matters of the customers and facilitates conservation efforts. The company uses environmental friendly wrapping bags, proper waste management and natural gases, which ensure that they do not pollute the environment. They also participate in social responsibility activities such as helping the poor by donating food. They also come in, in times of need especially when disasters strike in. This has improved and enhanced their corporate image among the communities and the global market at large.

Technology has also affected business operation because payment for the product and services is done using electronic means. This is where customers use their mobile applications and automated machines cards to pay for services and products. It has not only reduced the risk of theft but also saves time for the customers because they do not have to travel to the bank to withdraw cash to pay for services rather they pay using these gargets. Some of the contributing factors to success are good management and proper waste management. Good manager has led the company to the right direction, shielding it from improper practices by employees and managers.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Works Cited

Abrams, Rhonda M. The Successful Business Plan: Secrets & Strategies. Palto Alto: Planning Shop, 2011. Print.

Buchan, Jenny. Franchisees As Consumers: Benchmarks, Perspectives and Consequences. New York: Springer, 2013. Print.

Buchan, Jenny. Franchisees As Consumers. New York: Springer-Verlag New York Inc, 2013. Print.

Colley, John L. Corporate Governance. New York: McGraw-Hill, 2014. Print.

McDonald, Malcolm. Malcolm Mcdonald on Marketing Planning: Understanding Marketing Plans and Strategy. London: Kogan Page, 2010. Print.

O’Brien, Bob, Peadar King, and Tsedev Dojoo. Mongolia: Wrestling with Change. Hamilton N.p., n.d. Print.

Striffler, Steve. Chicken: The Dangerous Transformation of America’s Favorite Food. New Haven: Yale UP, 2012. Print.

 

 

 

 

 

 

 

 

 

 

Appendixes

Figure 1 supply chain of McDonald restaurants…………………………………………………4

Figure 2 McDonald global dominance……………………………………………………………6

Figure 3 Revenues earned by McDonald…………………………………………………………7