MacDonald’s Corporation Essay

McDonalds Corporation is an American based worlds leading comp any in the extravagant food industry. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice. McDonald in 1948 they reorganized their agate line as a hamburger stand victimization overlapion line principles. Ray Kroc joined the company in 1955 as a franchise. A McDonalds restaurant is operated by either a franchisee, an affiliate or the mint itself. McDonalds Corporation r as yetues come from the rent, royalties, and fees paid by the franchisees, as hygienic as sales in company-operated restaurants. In 2012, McDonalds Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. ProductsMacdonalds primarily sells hamburgers, cheeseburgers, chicken burgers, French fries, break stiff items, squeezable drinks, milkshakes and deserts including ice-creams. Currently restaurant in fitition expanded its menu to include salads, fish, wraps, s moothies and fruits in order to deepen the taste of the consumers. Company also serve dope up in the Asian countries. The menu of the company differs according to the serving countries equal prawn burger in Singapore. In Germany and western European countries MacDonalds serve beer also. operational countriesMacdonalds slew is one of the hugest betting food selling company. It take a crap 31,800 flagship restaurants serving nearly 68 one thousand thousand slew in each mean solar day among the 119 countries world gigantic. Mainly, company operated by franchisee, an affiliate or the corporation itself. Basically company is operated largely in America, Canada and European countries like U.K., CompetitorsThere argon many unshakable food restaurant running currently in the market. However, Macdonalds is one of the largest company operating internationally. Though, MacDonalds itself is a dent only if also it constitute al most(prenominal) of the competitors in the market. Th ere atomic number 18 many small dissolute food restaurant like as chicken and chips shops which serve the most of the items served by MacDonalds in context to U.K. Besides these small fast food operating restaurant or so offormer(a) big company atomic number 18 also running internationally. Such as Burger magnate, KFC fast food, Sam, Sub path, etc. all told of these ar the briny competitors of the MacDonalds.PESTLE ANALYSIS.POLITICAL FACTORThe international operations of McDonalds ar passing influenced by the individual ex press out policies enforced by each government. (2001) For instance, on that point are certain groups in Europe and the United States that clamour for state actions pertaining to the health implications of eating fast food. (2005) they perk up indicated that harmful elements like cholesterol and adverse effects like fleshiness are attributable to consuming fast food outputs.On the other hand, the company is controlled by the individual policies a nd regulations of operations. Specific markets way on different areas of uphold such as that of health, rangeer protection, and environment. in all these elements are seen in the government control of the licensing of the restaurants in the respective states. For instance, there is an impending legal dispute in the McDonalds franchise in India where certain infringement of rights and violation of religious laws pertaining to the contents of the food. The existence of meat in their menus in India is apparently crime to the Hindu religion in the said market. In terms of the Asian countries there are many people who do non consume beef burger and it hurts their religion as well. This kind of act arise the dispute and violence and it affects the calling of the company. Like also in Middle East countries, they have their political law that meat provided in the country should be Halal. The company should focus on the religion, ethnic and the political status of the operating coun tries for the sustainable care. There are also other studies that points to the infringement of McDonalds Stores with course credit to the existing employment laws in the target market. Like any business venture, these McDonalds stores have to contend with the issues of employment procedures as well as their appraise obligations so as to succeed in the foreign market. Political system1. Liberal democracy (less than half 191 UN members)A liberal democracy is a pee of representative democracy in which elected representatives who hold power are limited by a constitution that emphasizes protecting individual liberties, equality and the rights of minority groups. Among the many liberties that might be protected are freedom of speech and assembly, freedom of religion, the right to private property and privacy as well as equality before the law and receivable process under the rule of law. Such constitutional rights, also called liberal rights, are guaranteed through various controll ed institutions and statutory laws. Additionally, the constitutions of most contemporary liberal democracies prohibits majorities, which is rule by the leave of majority, when it harms those in the minority.2. Authoritarian or absolutist (Burma, Saudi Arabia)A political theory safe property that all power should be vested in one ruler or other authority. b. A form of government in which all power is vested in a single ruler or other authority. 2. An absolute doctrine, principle, or standard.3. communist (china, Cuba, North Korea)Communist reg the term Communist state is generally employ to a state with a re state- verifyedan form of government characterized by single-party or dominant-party rule by a Communist party which sets as its supreme aim the construction of communism. Technically, communist state is a contradiction in termini as a communist society is in principle stateless therefrom such states do non refer to themselves with this term, but rather as friendlyist sta tes or workers states. It should therefore be understood that Communist, in this sense, refers to the Communist geological formation governing the state rather than the state structure itself (imes)4. Theocratic (Iran, Vatican)Theocracy is a society governed by priests, or one whose government is heavily influenced by religious leaders. Originally, theocracy meant a system where divine law was the basis of all humanly enacted law, and in which religious and political hierarchies were merged. Today, the termtheocracy is applied to refer to the control of religion over state. Technological FactorMcDonalds cave ins a demand for their own products. The Companys tell apart tool for marketing is by instrument of television advertisements. There are similarly some claims that McDonalds are inclined to interest the younger populations much. The existence of play spots as well as toys in meals offered by the company shows this actuality. Other demonstration of such a marketing strateg y is apparent in the commercials of they handling. They employ animated depictions of their characters like Grimace and Ham burglar. Other publicise operations employ touristed celebrities to promote their products. Company also have its marketing strategy like as Facebook, Google Ads, etc. The like has become endorsers for McDonalds worldwide loving it campaign. Moreover, the operations of McDonalds have significantly been infused with rising technology. Elements like the inventory system and the counsel of the honor chain of the company allows for aristocratical payments for their suppliers and other vendors which the individual stores in respective markets deal with.The integration of technology in the operations of McDonalds tend to add value to their products. Basically, this is manifested in the improvements on its value chain. The improvement of the inventory system as well as its return chain allows the company to operate in an international context. According to (co mputing.co.uk) MacDonalds are inventing the new ideas of technology. The company is also introducing wireless networking, PlayStation 2 video games consoles, internet terminals, flat screen televisions and music videos into its revamped stores. They are also providing free WiFi in the context to U.K. market. According to (marketingmagazine Jan 2011) MacDonalds have started using contactless card payment inspection and repair in U.K. This run friends in faster service for the consumer and saves the quantify period. Macdonalds also have invented their new machinery equipment for the infract service. They use new process for oil refining and latest machines which help in less pollution. They also use their cooked oil as bio diesel for their own delivery trucks.SOCIO- CULTURAL FACTORArticles on the international strategies of McDonalds reckon to function onseveral fields to guarantee lucrative returns for the organisation. To illustrate, the organisation improves on establishing a positive mind-set from their core consumers. McDonalds indulge a particular variety of consumers with definite types of personalities. It has also been noted that the company have given the markets such as the United Kingdom, an option with regards to their dining needs. (2005) pointed out that McDonalds has launched a sensibly valued set of food that tenders a reliable level of quality for the respective market where it operates. Additionally, those who are aged just to a lower place the bracket of thirty-five are said to be the most frequent consumers of McDonalds franchises. As socio cultural includes the attitudes of people, religion, their culture, taste, family, etc all this factor whitethorn affects the MacDonalds company. As matter of fact, MacDonalds opened in India have to be concern in selling the meat products like beef, mutton, and pork. The religion where these products are as offensive testament not be consumed.Another example is selling meat products in Muslim ba sed countries also. All the meat products should be Halal otherwise the consumer will not use the products. Other meat is pork which is not allowed to sell in the countries of Middle East like U.A.E, Dubai, Qatar etc. MacDonalds should focus on the culture of the operating countries. The culture and tradition of the country also encounter on MacDonalds. Many people have tradition of not using the market cooked foods or they dont have culture of eating outside, this also whitethorn affect the business of the company. Education and awareness is another factor. batch may have the bad image of the food they consume if the quality of the food is not well. As a result they spread the negativity which may arise the fall in the sell. Another is age groups of people. So, company should emphasis on the socio-cultural aspect of the operating countries in order to provide the best service and obtain well business. Currently in UK MacDonalds faced social paradox. As from report from BBC, it was found about the sexual poem in the nestling Meal which was complained by the parents of the country and later the company apologised.LEGAL FACTORIn the external environment legal factor also have its impact in the different organisation and companies. In context to the fast food companies it arises the different problems. The legal issues regarding the quality offoods, employees, environment and many more are some of them. There was a current roar against the fast food industry. It has forced McDonalds to apply more close examination on their corporate social responsibility. As a whole it has addressed to requirement of the company to generate its corporate study to more positive and the more socially responsible company. The reputation of McDonalds is obviously a huge question. Noticed on companys web site, seems, that they have got steps to take in hand the key social condemnation that they abused them in the last decades. The company gave to their clients the corresponding data in which they need the relation of food essence of their products. This is to attend to the arguments of obesity charged against the products of the company. In the same way consumers have provided freedom in a choice, whether they want to buy the meal.It is connected with socio-cultural market signs which they influence. For example, operations in predominantly Muslim countries demand, that their meat corresponded to Halal requirements of the law. In the same regard, those that operate in countries in the European Union should correspond to the existing laws forbidding usage of genetically modified meat products in their meal. Other legal concepts as tax obligations, employment standards, and requirements to a degree of quality are only a some of important elements on which the company should consider. Otherwise, smooth operations should be difficult to reach. Some issues may be company sells fatty foods it may be mixed bagd in the operating countries. Other, MacDonalds op ens 24 hour in some places which also may be changed by the law and gets touched.PORTERS FIVE FORCES1. The nemesis of entry of new competitor McDonalds, has make an entry barriers that others competitor cannot enter the fast food industry easily because, McDonalds have good product and services that guest has learned to expect from fast food industry. As we can see, people more choose McDonalds compare to others fast food like KFC, Burger King or A&W because MacDonalds has cheaper value a lots of menu that suitable with Malaysian taste and good service like MC Delivery compare to others fast food restaurant. The greatest strength was creating an image in the minds of the people and introducing them to the fast food culture. Delivery speed, customer care and cleanliness are the core strengths onwhich these stores expanded. They created a corporate symbol and their advertisement campaigns were elevatedly favored in establishing the brand image and logo in the minds of the millio ns. Two chief(prenominal) competitors generally identified with McDonald are the Burger King and the KFC. McDonald marketing strategy is concerned with the internal resources. A large nub of product differentiation exists in the industry. The McDonald brand ranks as 8th in Business Weeks Scoreboard over orbiculate brands. Furthermore the brands KFC and Pizza Hut are also represented (with place nr. 61 and 63 on the scoreboard). This signifies a large consumer preference to the global brands, and would create somewhat of a barrier for new entrants.2. The bargaining power of supplierDifferent suppliers have different bargain powers in the fast food industry. There is the soft drink industry where mayor supplier brand names supplies products and brand value to the fast food industry. Then there is the large amount of smaller suppliers that delivers other products to the fast food industry. For example, Coca Cola and Pepsi. The market for soft drinks is predominate by a few companie s. Mainly Coca Cola and Pepsi. These soft drinks suppliers are the only ones who have the capacity to match the needs of the global fast food chains. The domination of a few suppliers in an industry with more customers sets a exalted bargaining power for the suppliers. The fast food industry is provoke in having the soft drink producers being a part of their own branding. The Pepsi and Coca Cola brand have a global brand be of respectively 23 and 1. With the smaller fast food places the soft drink suppliers are holding all the bargaining power, since the individual fast food companies does not form a significant part of the supplier clientele, and their business could be partially strung-out of the suppliers willingness to provide necessary equipment for the company.3. The bargaining power of customers (buyers)Since the industry is fill up with many different kinds of fast foods and many different suppliers of fast food, hence the buyer are in a situation where many supplier s are pass products that have a certain similarity. Since the global fast food chains have been trying to match each others successful products and product packages, then the buyers can actually buysimilar products from multiple suppliers, and that is a situation the empowers the buyer.Furthermore, if the fast food industry does not match the demands of the buyers and the general consumer trends, then the buyers can choose not to buy their product and persuade others to do the same. A good example of this is the movie Super Size Me in America. It is a movie showing an ordinary consumer trying living of McDonalds fast food, and the purpose of the movie was to see what the traditionalistic fast food from MC Donald could do to your health if you were to eat their products for any meal. This movie shows what the buyers possible reactions could be if not satisfied or not being pleased. The reactions from the whole market were a large change in consumer preferences and brand preferen ces.4. The threat of substitute products or servicesThe generic products of fast food are mainly considered as convenience. Convenience and accessibility are the main drivers for choosing fast food. However, this is backed up by focus on value. Since the market as a whole consists of many differentiated fast food companies, then the customers are used to having the option of choosing the best value products. The value of the substitute products in general matches the fast food products and the consumer preferences of the consumers. The substitute product offers both cheap value meals and quality products for both ends of the quality scale that the fast food industry median(prenominal)ly targets. Furthermore, it offers healthy alternatives to match the consumer needs and wishes. The differences in the midst of McDonald and their others competitive are services of delivery that is Mc Delivery that give a good service, faster and make customer easy to buy from any kind of set of m enu at McDonalds.5. The rivalry among existing firms in the industryMcDonald however is far larger than most in the industry with 31,000 outlets compared to its hot hamburger competitor Burger King, with 11,500 (Reuters, 2008). KFC (owned by 2nd largest competitor Yum Brands (Yahoo7finance, 2008), Burger King and countless others sell similar product to McDonald. McDonald traditional competitors include many of the other fast food outlets across the country has been shown that the presence of a Burger King, for example, will increase the likelihood that McDonald willopen nearby. Thus, it can be seen that the threat of competition from traditional rivals is intense and should never be over looked. In general, McDonald and its main competitors (Burger King Corporation, Wendys International, Inc., Hardees, and Jack in the Box) are active in making invigorated moves to improve their market standing and business performance by introducing their product innovation and launching many ou tlets franchise. A good example of this would be the expense competition between multiple fast food chains value meals. Price dumping is normally a good way to attract new customers, or stealing customers from competing companies, and since it have been a growing consumer trend to go after these value meals, then it is a product category that have been capable from most of the global fast food companies.The high level of competition forces the individual competitors to copy of each others are products and ideas quickly since the competitors are always keeping an eye out for new ideas for themselves, and so far there have been no way of protecting a burger or sandwich recipe. In Malaysia, any Chinese New Year, there will be a prosperity burger. Thereby they have found a way to differentiate, which gives them a bit more space to move in, and thereby a little less fierce competition. The main competition goes through the branding. In addition, the competition to create the stronges t brand is fierce. Firstly, normal advertising through TV, posters radio-commercials are regular. However, the biggest brands like McDonalds and Burger King have been branding their own brand through piggy backing on other brands power. ecologic Factors affecting International BusinessEnvironment or ecologic factor is one of the aspect of external environment. Ecological factor is any factor, biotic (living) or abiotic (non-living) that influences living organism. All the environmental factor brings marked distributional, structural and functional changes in the living creatures which directly affects the business internationally. International business is highly influenced by the different ecological factors. Manufacturing industries, different organisations, food selling companies, etc faced the several problem through many environmental factors. For the sustainable growth and ontogeny of any business all the aspectshould be well matched. In absence or excess of any factor, whic h is necessary in the business may arise the depletion in the business. As a matter of fact, ecological factor should be considered vitally for the growth of international business. Below we will discuss some of the ecological factor that affects the business.1. Climate, prevail and clime changeAny business can only be success in the favourable temper and weather of the place. Climate and weather is very important in order to have a growth of business. It affects the business in the unfavourable conditions. Especially climate, weather and climate change affect the industries such as tourism, farming, insurance etc. The adverse effect of climate change causes many problem in the industries. However, businesses that are dependent on long-term investment are likely to have larger impacts, because the consequences of climate change increase over time. So the industries of construction, real estate, transport and groundwork are likely to be the most effected by climate change impact s. As for the example, tourism vault of heaven will be directly affected by the climate change and the weather condition of the place. People couldnt broad to their destination referable to the inconvenience.Climate change may occur high temperature, low temperature, high peltingfall etc. in the improper time period which result problem for the tourist. Currently, in USA there was a high s instanterfall in the history which is due to the climate change. As a result the industries and companies are not able to run their business accordingly. Climate change will affect almost all forms of infrastructure electricity, gas, and water in the utilities as well as transport access and telecommunications. This in turn will affect people.2. instinctive calamitiesNatural calamities or disasters are another factor of ecology which affect dynamically on the business. These disaster came unknowingly and create the adverse effect not only on the business but also affect people. Natural disaster affect all small and large types of business. Natural disaster includes flood, landslides, earthquake, outlet, tsunami, storm, hurricane, and others. If one of these occurs than it brings the wide problem in allcompanies and industries. Additionally, natural disasters have larger repercussions for small businesses because they often operate from a single location. As small businesses also gets the majority of their business from customers in the surrounding area, any of these disaster may bring the adverse effect. As for example last course of instruction storm in New York causes several problems. Business are closed for many days due to unviability of electricity, water, telecommunication, transportation etc. Due to this factor business cannot take off and there was a huge loss in all area of businesses. Another example is flood in Pakistan, Tsunami in Philippines, volcano in Indonesia, earthquake in japan etc. As of the report Japan nearly need a year to recreate it business i n all of the sector. Not only the host countries businesses get affected but also they affects worldwide. There will be shortage of supply and recession may arise.3. Pollution and eat upsAnother ecological factor affecting the business internationally is pollution. It is one of the most important factor which is to be consider in the change in businesses. Mainly there are air, water, noise and land pollution. All of these four pollution creates the adverse effect in current business sector worldwide. All type of businesses are influenced from pollution. Manufacturing industries are highly affected through this factor. Due to high pollution businesses cannot produce high number of product due to which it generate loss in the industries. Chemical industries are main source of water pollution, they are advised to deactivate their chemical substances and proper managements for their waste and build crack up place to dispose it. Due to which companies need to spend big amount of money for the waste management. In china government encourage to use the public transport instead of private due to extreme air pollution. This directly affects the motor industries sector as their sales get decrease.According to the report from BBC, due to the extreme air pollution in Hong Kong it is very difficult for the people. Tourism industries is influenced as people cannot see the proper scenery due to the air pollution. As from report air quality in Hong Kong is three times worse than London and New York. Wastes management also affect the business sector. Proper waste management gives the healthy environment. Mainly food factories and restaurants are affected due to wastepollution.4. Global warming and depletion of resourcesGlobal warming is the average increase in the temperature of the earth in air level and oceans. Industries including agriculture, tourism, health, real state etc. are main sector of business which are affected. Due to the pollution and global warming the depl etion of Ozone layers is highly occurring as a result the UV rays of sun will directly fall in the earth step up and increases its temperature. This affects the wildlife, agriculture and others sector dynamically. The business in this sector gets affected and it creates the vital problem. Another is depletion of natural resources. Raw materials are one of the important ingredients to run any type of business. All the manufacturing industries required raw material to run their business. Due to the global warming and improper use of resources it difficult for the companies to find raw materials which may result closedown of the businesses. Scarcity of raw materials typically slow down the long term strategies and responses by the business, thereby missing on opportunities to make early moves and position themselves competitively.Ecological Factor affecting MacDonaldsMacDonalds corporation is one of the largest fast food selling company globally. It have its companies in more than 11 9 countries serving 68 millions of people each day. McDonalds is growing day by day by increasing the number of restaurant. The main source of ingredient and furtherance is nature. McDonalds has a Rain Forest Policy, which declares its commitment to beef purchasing practices that do not get to tropical de-forestation. Everyday McDonalds using a huge amount of napkins, carryout bag, tray lines, clamshells. Oil and water is other major ingredient using in MacDonalds. Environment is the most important in context to the business of MacDonalds. As most of the ingredients came from the environment and they need depend on it. However, due to different ecological factors there is im equilibrium in the ecosystem and environments gets affected. As a result various impacts affects the business of MacDonalds. Some of the ecological factors which affects MacDonalds corporation are discussed below 1. Global Warming and climate/weather changeThe process of changing the temperature of the earth s urface gradually and occurring the unfavourable climate is known to be global warming. In a common way, having the imbalance climate and weather in earth surface which is not acceptable for the living creatures indicates as global warming. MacDonalds is the fast food selling company which is highly affected due to the impact of climate change and global warming. Most of the materials used by the company are fully available from nature. First of all let we discuss the resources used by the MacDonalds to run its business. They use different animals such as beef, chicken, pork, etc. Vegetables and salad are also most important for their productions. Organic coffee beans which comes from tropical rain forest is another raw materials which are used. Other several resources are used to run the business. Climate change and global warming creates impact in the whole environment not only in the numbers of product.MacDonalds use the coffee beans from African tropical forest, due to the climat e change their will not be the favourable environment to produce the organic coffee, as a result company need to use for cost to recreate its business. On the other hand, customers may not be fully satisfied because of non-organic and in concern to the health. Also tropical deforestation is becoming one of the vital problem which generates the low production of resources. This result the fall in the business. Different animals are used in the burger of MacDonalds, due to global warming the UV rays of the sun are reflect back into the earth and its temperature rises gradually which makes difficult for the creature to survive. Global warming brings the occasional weather conditions. This will bring the bad impact in the business like MacDonalds.As of the current example, heavy snowfall in New York City which is due to the global warming. Many places were affected due to that unpredictable snowfall. As a result all the companies including MacDonald were also closed for several days. O verall, global warming and climate change is one of the hot topic of concern in current situation. Food sectors and many more are adversely affected through unpredictable change in the environment. All the business sectors are fully responsible to do a research and generate awareness in controlling the environment.2. Natural Disaster, pollution and resources depletion.Natural disasters are those calamities which have not any time period to happen. They happens automatically and unknowingly. It includes flood, landslides, earthquake, volcano, etc. Food selling companies like MacDonalds are directly affected due to this type of disasters. Normally, people are affected in the places of occurrence. So, the business of that places influenced badly. In terms of MacDonalds in U.K, beef are provided from Scotland. If disaster like landslides or earthquake happens than there will be difficulties in the transportation facilities. Other like communication, electricity, water facilities, etc ar e also affected. Due to which there will not be supply of goods. As a result it slow down the business of MacDonalds and customer are will not be satisfied. As for the example, tsunami in Japan, torrent in Pakistan, storm in USA, etc directly affects the business.Due to this factor MacDonalds are closed for long period of time. Pollution is also one of the ecological factor which created disturbances in the business of food selling companies. As MacDonalds corporation use most of the natural resources for it food production, pollution mainly affects the environment. denigrating gases are released by the different manufacturing industries which creates air pollution. Due to this pollution there is more probability of acid rain which dynamically affects the living creatures and plants. MacDonalds use coffee bean seeds from tropical rain forest, but due to acid rain it will generate several problems and will not be more organic. Different kinds of diseases will emerge in the animals like beef, chicken and pork. As MacDonalds is popular for Hamburger, the diseases like swine flu will directly affect in the pork, another bird flu in chicken and others. Government may apply the new rules regarding water, noise and land pollution which may also affects the initiative of new branches worldwide. Depletion of natural resource is another major factor.Deforestation, water resource depletion, wildlife degradation are some of them. All this will adversely affect the ecosystem which creates scarceness of resources. MacDonalds may face the scarcity of the raw materials required for its production due to deforestation in the tropical forest. Due to lack of water resources it generate the negativity in the productions of drinks and other products. Hence, natural disaster, pollution and resources depletion affect the business of MacDonalds in a major way. MacDonalds need to focus on these factors to create its businesssuccessfully in worldwide. Preservation and long term usa ge of production should be in action. Long term strategies and external sources should be implemented in order to get the sustainable business and growth of the company.MacDonalds responding to the ecological factors.a) Other areas of improvement include coffee beans and milk. McDonalds now only uses those beans certied by the rainforest Alliance and uses organic milk for milkshakes and hot beverages. It has Rainforest policy where it is completely against tropical deforestation supporting the balance in eco-system. b) Recycling and reusing of the products (to decrease the pollution) c) Separate agriculture and farming facilities to produce for its own use. (eg, beef, pork, chicken, vegetables) d) Use of vacuum urinating facilities(preserve water resources) e) Using paper bags instead of plastic, easy to disposef) Use its grease oil for its own delivery trucksg) it have its separate waste management site which helps to make community clean h) McDonalds worked with Conservation Inter national to develop an environmental scorecard. It drives greater awareness of resource use (energy, water, air emissions and waste) with the ultimate goal of reducing our environmental impacts i) To provide customer with both good food and good value, MacDonald consider priorities for food safety, quality and costas well as sustainabilitywhen making sourcing decisions. Their vision for a sustainable supply chain links responsibility for ethical, environmental and economic outcomes. j) McDonalds has developed a next generation low oil volume (LOV) frier that uses about 40% less readying oil and 4% less energy maintaining the SAME Great taste. Hence these are available in restaurants somewhat the world.As a result of this, environmental action plans have been developed to address these issues. For example, McDonalds has a policy of sourcing its food as close to denture as possible, with approximately 70 percent of the companys food coming from the UK and Ireland k) In a rst for t he quick-service restaurant industry, McDonalds opened the worlds rst hydrourocarbon (HFC)-free restaurant in 2003 in Denmark. The result is that the restaurant does not use Freon in itsrefrigerants, thereby helping cut down on harmful climate changing emissions. As further proof of its commitment, McDonalds efforts at efficient packaging and recycling have been recognized by the Environmental Protection force (EPA). Also, the Campus Ofce Building received the LEED-EB Platinum award in2009, in recognition for its green initiatives.Future developments workMacDonalds can use the electrical oestrus instead of gas to save the resources Also can use the latest machinery equipment which produce less emission of harmful gases Using less fridge and deep freezer which emits harmful gas such CFC. Use new technology to open the new restaurant which have less effect on environment featuring the Rainforest Alliance CertifiedMacDonalds celebrate their work with the Rainforest Alliance and want to inform customers that they should feel good about purchasing their espresso beverages that are brewed with snow% Espresso from Rainforest Alliance Certified farms. Environment awareness campaignIntellectual propertiesPatentsPatents protect what makes things work like what makes a wheel turn or the chemical formula of your favourite fizzy drink CopyrightCopyright is an automatic right which applies when the work is fixed, that is written or recorded in some way Trade markTrademarks are signs (like words and logos) that distinguish goods and services in the marketplace DesignDesigns protect the appearance of a product/logo, from the shape of an plane to a fashion item Types of Market1. Monopoly2. Oligopoly3. MonopolisticMonopolistic competition is a market structure where many companies sell similar products, but are not identical. Firms in this market structure are a monopolist for their brand. There is freedom of entry and exist into the industry as there are no barriers such a s strategic raw material, very highstart up cost and lack of information. Mc Donalds maintains its competitive reward with Big Mac as its biggest attraction and backbone of the corporation.(ukessay)So how McDonald has managed to compete with other monopolies? McDonalds have their own profitable specialty coffee in the form of McCafes, a concept taken from Starbucks. Recently, McDonalds has remodelled the creation of some of their restaurants, replacing their fiberglass tables and industrial steel chairs with wooden tables, comfortable faux slash chairs, and have painted their interiors of muted colours of orange, yellow, and green. McDonalds not only have borrowed Starbucks concept of coffee, but have also begun borrowing the same design and feel. McDonalds has gone under this remodelling with their restaurants to bring down other top competitors such as Burger King and Wendys since they are not as successful and cannot afford such upgrades to their own restaurants.Non-price comp etition is a way of how firms attract consumers with factors other than price, such as style, service, or location. So how McDonald has used non-price competition to convince customers to come to them instead of other burger places. Macdonalds has not only been trying to beat other top competitors in the burger industry. It has also been competing with restaurants that are not even fast food chains. One of the examples of non fast food chains that McDonalds has been trying to draw customers out-of-door from is Panera Bread. McDonalds has also been trying to bring customers away from Chipotle, a Mexican chain that was originally owned by McDonalds until October 2006. McDonalds has also competed with Starbucks Coffee with the selling of their McCafes.4. Perfect competitionGlobalisation, its indicator and main driver.Hetal (1999) defines globalisation as, the widening, deepening and speeding up of all worldwide interconnectedness in all aspects of contemporary social life, from the c ultural to the criminal, financial to the spiritual. It helps in interest increased international tradea company operating in more than one countrygreater dependence on the global parsimoniousnessfreer movement of capital, goods, and servicesRecognition of companies such as McDonalds and Starbucks in less economically developed countries.INDICATORS OF GLOBALISATION1. International trade2. Financial flows3. MigrationDRIVERS OF GLOBALISATION1. frugal ( benefits of economies of scale, cheap labour) 2. Technology (communication and transportation)3. Political/regulatoryBARRIERS TO GLOBAISATION1. Government regulation( tarrifs and subsidies, border and immigration control, public procurement, control on capital flows) 2. Cultural and geographic distance (taste, culture, language, religion, corruption, work culture)DEMOGRAPHIC FEATURES1. Population2. Ethnicity3. ReligionCSR and MacDonaldsCorporate Social Responsibility is a management concept whereby companies integrate social and envi ronmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (Triple-Bottom-Line- Approach), enchantment at the same time addressing the expectations of shareholders and stakeholders. Key CSR issues environmental management, eco-efficiency, responsible sourcing, stakeholder engagement, labour standards and working conditions, employee and community relations, social equity, gender balance,human rights, good governance, and anti-corruption measures.Being a responsible corporate citizen, McDonalds firmly believes in giving back to the communities it operates in. they love to provide support and encouragement to the people who need it the most. All our restaurants contribute to their local anesthetic community and every year we help set up and support numerous educational, sporting and charity programs designed to help a wide range of people. McDonalds has a proactive approach to charities and sponsorships. We believe these help inspire and support the people of Pakistan, especially the underprivileged ones, to live a better life. We are dedicated to delivering great experiences through our ongoing community support programs. Some of the program done by MacDonalds1. In Pakistan, litter guard set up in the neighbour to pick up litter and aware the people, cleaning campaigns, walk for cruelty of killing animals, support woman, support the thalassaemia society in Pakistan. 2. In UK, clean the surrounding near the restaurant, fix litter patrol, keep Britain clean campaign, feeding program in London Olympics, charities and support to the different clubs, support education sectors. 3. raise various community based programs such as sponsoring education for the poor people in India and Asian countries. 4. Support in sports and encourage children to physically fit. MacDonalds use low energy LED light bulb s, energy saving equipment and waterless urinals, and recycle used cooking oil into biodiesel to fuel more than half of our delivery trucks. They also recycle the cardboard boxes used in more than 89% of our restaurants, and more than 85% of our packaging is made from renewable resources. They are the Community Partner Community Partner of the four nations Football Associations.This means it work with local football clubs, schools, youth teams and junior leagues around the UK. MacDonalds programme gives people the chance to volunteer and qualify as a football coach so they can give free, high-quality teach to young people across the country. They also organise daily litter patrols and work with environmental charities Keep Britain Tidy , Keep Wales Tidy , Keep Scotland charming and Tidy Northern Ireland. Most of our charity work is focused on supporting Ronald McDonald House Charities, an independent charity which McDonalds has supported for over 20 years. Ronald McDonald House C harities provides a home away from home for families with children undergoingtreatment in hospital. The Charity relies on voluntary donations, and you can find collection boxes in every single one of our restaurants. MacDonalds also invest over 360 million a year in the UK agricultural industry. The majority of our ingredients come from Britain and Ireland, with more than 17,500 British and Irish farmers providing us with ingredients such as beef, Freedom Food pork, free-range eggs, organic milk and potatoes. E BusinessMcDonalds is one of the most recognisable brands in the world, yet also has to battle a fair amount of negative publicity The McDonalds UK page has more than 30m fans, and its local market pages have all attracted several hundred thousand likes. Data collected by net profit Access Households and Individuals, 2013In 2013, 36 million adults (73%) in Great Britain accessed the Internet every day, 20 million more than in 2006, when directly comparable records began. Acc ess to the Internet using a mobile phone more than manifold between 2010 and 2013, from 24% to 53%. In 2013, 72% of all adults bought goods or services online, up from 53% in 2008. In Great Britain, 21 million households (83%) had Internet access in 2013. Broadband Internet connections using fibre optic or cable were used by 42% of households, up from 30% in 2012.Globalisation strategy of McDonaldMcDonalds has developed their unique globalisation strategy. McDonald include their fore main characters to make perfect business strategy. Are shown as below 1 specify globally but act locally2 Pricing3 Advertising strategies4 Social responsibility1. Think Globally but Act LocallyThe main aim of the McDonalds Corporation is to focus locally with the global strategy. It always performs and supply all the operation, systems as per the requirement of the local factors. It always try to be fit in local traditions, cultures, society and political. McDonalds Corporation alwayskeep special fac tors in mind while making their business strategy. It always performs as per the requirements of the different markets. Macdonald expenses lots of resources to develop and create its products as pre the local demands and traditions. However, once McDonalds corporation failed to do this, while establishment in Germany and Netherlands, consumers did not accept their local menu in the year 1970 because they wanted American food rather than their local menu.After this experience company realised that every restaurants local menu should incorporate some local tests as well but at a minimal level.At the time of establishing in India, McDonald has considered that Hindu community does not eat beef as per their Hindu belief. Therefore, they specially introduced new vegetarian serial publication of the product in their menu. Also taking Muslim community in focus that Muslims did nit consume poke. Therefore, they only sell chicken and lamb. It had done separate conceptualization for Vegetaria n and non-vegetarian.2. PricingThe other most important feature is their price differentiates than their competitor. This pricing strategy of McDonalds corporation is very reliable and unique. While fixing the price McDonalds takes some factors in consideration like local life style, income of the family, location etc. The time of fixing price for the products, they also focus on the primary target group of the company, lower and power level. McDonalds enters in most of metropolitan city of the country in which it enters.Sometime during period of lean time company offers discounted price to boost their sell in short McDonalds corporation believes that to stay longer life in the market we should have unique pricing policy.3. Advertising/Promotional strategiesAdvertising is the other platform to the company by the help of which company introduce their product, boost to the customers etc. every organization have their unique and own promotional strategies. Here McDonalds arranges their promotional strategy as a part of advertisement. The worldwide promotional activities of the McDonalds corporation is organised by DDB Needhamand Leo Burnettas well their local collaborates in different countries. It sometimes organised by the local advertising company also. Other than advertisement, McDonalds corporation uses more promotional tools to promote their product. Company offers their product at law price it gives toys tothe children etc. most successful promotional strategies became very popular now days .McDonalds has for decades maintained an extensive advertising campaign.In addition to the usual media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events ranging from Little confederation to the Olympic Games and makes coolers of The Orange with their logo available for local events of all kinds. Nonetheless, television has always played a central role in the companys advertising strategy. In Januar y and February 2008 there was an offer of buy one get one free by McDonalds UK particular for the Big Mac. Company introduced press coupons and those coupons can be exchanged at the McDonalds restaurant to get benefit of the product. To date, McDonalds has used 23 different slogans in United States advertising as well as a few other slogans for select countries and regions. At times, it has run into trouble with its campaigns