Management Economics: McDonald's Market Analysis and Market Structure

MANAGEMENT ECONOMICS
Assessment 2

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Overview of McDonald’s, with descriptions of products/services..........................................1
2. Market Analysis of McDonalds...............................................................................................2
3. Characteristics of previous and current market structure of McDonalds................................5
4(a). Discuss that operating in a different market will be more optimal for the selected
organization.................................................................................................................................6
4(b). Suggested that greater or lesser intervention would be good for the society or not...........7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Managerial economics is one of the key principles that characterize the convergence of
numerous economic theories with business strategies in order to make better decisions. Such
policy is based on monitor the location and productivity wealth accumulation, by operational
excellence and outputs. A study was undertaken to analyze how economic approach can be
applied to corporate strategy for this motive (Prysiazhniuk and Plotnikova, 2017). McDonald's is
selected to conduct this research that also interacts with the fast food industry and operates
business in over 100 nations. To assess its market situation as well as the framework through that
it conducts industry, it compares total empirical statistics for this firm's competitive position. In
addition, some recommendation for greater or lesser public investments on its manufacture is
also created in this document, taking into account the benefit of culture.
MAIN BODY
1. Overview of McDonald’s, with descriptions of products/services
One of the big channel companies is the fast food industry, which keeps playing well in
those facets of the business circumstances. This has been measured in the UK that this market
has increased its performance because it has only expanded over the last couple of years.
Regarding its foreign development and growth of corporation, it is expected that this economy 's
value could reach £ 9.8 billion by 2021. Through all the National Statistics Office, it was
analyzed that this nation's people spend approximately 22 per cent on takeaway services, so it
indicates strong potential growth of fast-food businesses in the future. McDonald's has been one
of the largest fast - food businesses, established in 1940. Originally, its co-founders Richard and
Maurice McDonald had only established a small restaurant in San Bernardino, USA. Then, they
actually expanded the company to other areas, both domestically and globally, where it still
expanded to Canada in 1967. Following that, it exceeded ten thousand restaurants in total until
1988. Pursuing this growth by the modern era by franchise agreement and other strategies, it has
distributed operation with close to 35,000 locations in even more than 100 nations (Olivieri,
Seppänen and Denis Granja, 2018). While development in the 90's was so rapid in the 1990's that
McDonalds introduced various stores globally in every 5 hours. That will make that company the
greatest fast food chain company as perhaps the most famous family restaurant, emphasizing its
consumers with inexpensive food, delicious hamburgers and flavors as per their requirement.
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At present, it has less than 37,855 outlets and 69 million clients all around the world.
Nevertheless, this fast-food establishment is primarily known for its hamburgers, French fries
and hamburgers, but it also provides a diverse range of savoury yet tasty foods to raise consumer
satisfaction. It includes things such as chicken, soft drinks, breakfast items, milkshakes, dessert
and much more. The primary culprit that demonstrates McDonald's elevated contribution to the
economic growth is his job, that he has promised millions of jobs. Actually, this fast-foot
business is synonymous with more than 1.7 million workers, some of whom are part-time
working and some on full-time jobs. Its working environment typically constrains with young
adults who might want to work part-time, become self-reliant and make income all through
professors.
2. Market Analysis of McDonalds
The McDonald's main objective should become the country's greatest fast service
restaurant journey. To be the highest, it emphasizes supplying customers with the highest quality
goods, outstanding service, orderliness and also some greater price, which will help to enhance
customer interactions at its restaurant. The important focus of industry that it provides to
prospective consumers (people of different backgrounds) includes – dedicated to providing high
quality services; upholding the reputation of the brand in each as well as every supermarket;
performing business activities in an ethical manner; increasing business the right way; and
constantly seeking to develop continuously (Kamińska, 2018). McDonald management board
succeeds in distributing its goods and in upholding key principles across the country. Not only
does it function the fast food places but it also franchises them. Including 37,855 franchises in
117 countries nearly 6,262 have been owned by franchising the company and the rest are
managed by McDonald's. Underneath the franchising model, companies include a small fraction
of the resources to buy in restaurants and hotels to buy additional materials, dining area and
decorative items, and many other frameworks. Together with this, corporate new investment is
also being done in a timely manner to improve its productivity. In this context, McDonald's
liquidity statements over the last 5 years ( i.e. over 2015 to 2019) can be calculated by means of
its cash flow statement, shown here above:
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