McDonalds of Leadership and Management Essay Example | Topics and Well Written Essays - 5000 words

McDonalds of Leadership and Management - Essay ExampleThe warring environment is studies through the intention of Porters Five Forces. The combined analysis brings forth the strengths, weaknesses, opportunities and threats of the confederation which forms grounds on which suitable management and leadership strategies are built. Brief outline of union McDonalds is regarded as the largest chain of fast food restaurants in the world which serves as many as 68 trillion customers across 119 numbers of countries across the world each day. Based and headquartered in the US, the company had begun operations as a barbeque restaurant in 1940 and ran their business as a hamburger stand with the use of product line principles. The famous businessman Ray Kroc who had joined the organization as a franchisee ingredient subsequently purchased the chain from the McDonald brothers. Thereafter the company has seen widespread and rapid growth which eventually turned into long mastery and victor y. Some of the products which account for the USP of the company are hamburgers, chicken, cheeseburgers, breakfast items, French fries, shakes, soft drinks and desserts. Along with changes in consumer tastes and preferences, the company also has accordingly expanded its menu and included items such as wraps, salads, fruits and smoothies. Operated through some(prenominal) franchisees and affiliates the company earns its revenues through the fees, royalties and rent paid by franchisees and sales revenues through the company oriented restaurants. more or less 59% of the companys restaurants are franchised 21% of them are licensed to developmental licensees and foreign affiliates and the stay 20% are company operated (McDonalds, 2012). The companys demonstrated huge growth between the days 2004 and 2007 which reflected through enhanced revenue of $22.8 billion and 9% increase in its operating income (MC Spotlight, 2012). McDonalds success can be considerably attributed to its strengt h of alignment between suppliers and franchisees coupled with its business model which has enabled it to expect consistent experience of a local restaurant to its customers and become an integral part of the communities which they serve. A customer focussed plan forms part of its global business strategy which is aimed to meet the changing tastes and preferences of customers and maintain sustainability in the market. The companys business managed by numerous and a distinct geographic segment which includes countries in USA, Europe, Asia Pacific, Middle East and Africa and also nations like Canada and Latin America (McDonalds, 2012). How the organization monitors its environment The company makes a thorough analysis of its social and environmental environment and integrates them into the four business aspects which forms the key to its success and profitability. The companys programs, policies and progress are appreciated by its investor community since the company is a member of Do w Jones Sustainability top executive from the year 2004 and is also named to many of the other socially