Market Analysis of McDonalds

MANAGEMENT
ECONOMICS
(Assessment 2)

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Company and its products/services and history.................................................................3
2. Market Analysis of McDonalds..........................................................................................4
3. Characteristics of previous and current market structure of McDonalds...........................6
4. (a) Critical analysis on various market structure for identifying optimal structure for
McDonalds.............................................................................................................................8
b) Suggestions on lesser or greater interventions of government upon key operations of
McDonalds.............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Managerial economics is among the significant feature that identify as blending of numerous
economic models with processes of businesses, such that smarter decision would be made. These
judgments are focused on reduction of expense and long term sustainability of production,
through effective operations and outputs (Sagheb, Ghasemi and Nourbakhsh, 2020). For this
reason, a research is undertaken to analyse the manner wherein economic theory may be
implemented to corporate policies. To perform this report, McDonald’s is selected, that operates
across fast food sector and run business activity with more than 100 nations.
The report includes, evaluating the market situation and also framework, with which it
conducts trade, total actual data including financial status of firm is analysed. Additionally,
certain suggestions about bigger or smaller actions of the government around its output have also
been rendered in this paper, through considering the community profit.
TASK
1. Company and its products/services and history
Fast food market is consider to be the big channel markets, which tends to function really
well in the area of increasing and maintaining economic conditions. In United Kingdom, this has
been assessed restaurant sector has intensified their development as only twice since last few
decades. Regarding its development and success of company at international stage, this is
anticipated that market value of the whole business sector may achieve by £9.8 billion till 2021
(How to hack into the growing Fast Food UK Industry, 2019). Via Office of official statistics, it
has already been calculated that citizens of this nation spend close around 22 % on takeaway
transactions, thus, it indicates anticipated strong growth of food service firms in potential already
(Silva and et. al., 2019). While, development in 90's was really fast in the 1990s in each and
every 5 hours, McDonalds has created new outlets across the country. So, this will render this
company as either the largest fast-food restaurant company like most famous local restaurant that
focused with cheap food, tasty cheeseburgers and spices to its consumers, according to
requirement of customers.
McDonald's is among the biggest food corporation that is established in 1940. At initial
point, its main establisher was Richard and Maurice McDonald who have only launched a sole
restaurant in San Bernardino, US. Since then, they had begun in spreading the company in many

areas, at domestically and foreign level, although it first extended in 1967 to Canada. Then after,
it crosses a record of thousand establishments till 1988. Extending this growth by franchise
model as well as other alternatives, by modern era, it has extended company with close around
35,000 branches in far more than 100 countries (Adekoya and Jimoh, 2019). Today, it has far
more about 37,855 stores at all around the global economy and 69 millions of consumers.
Nevertheless, this restaurant is primarily popular for its hamburgers, French fries as well as mc-
nuggets, but to raise demands of its customers, it also serves a broad variety of garlicky and tasty
products (Lemaire and Limbourg, 2019). It contains chicken sandwiches, beverages, baked
goods, chocolate chip cookies, pastries and much more. The key factor that also showed
increased impact of McDonald's in country's economy is its job security, in which it has actually
provided millions of workers.
2. Market Analysis of McDonalds
The key goal of McDonald's should become the greatest fast service food experience in the
country. Of being the highest, it focus on offering best in class goods, excellent service,
cleanliness and also better value to consumers, which will result in improving consumer
satisfaction at its cafe (Gray and Hinch, 2019). The important focus of company in which it
provides to target market (all volume of individuals) involves engaged to provide quality service;
retain corporation 's image in every as well as every retail outlets; handle out business activities
responsibly increase sales efficiently and always keep on improving.
McDonald’s management is effective in distributing the products and preservation of core
principles across the globe. This mostly runs the franchises but also licenses them. Between
37,855 restaurants inside 117 countries close around 6,262 is controlled by franchise model the
company and majority of them are run by McDonald's (Hong, Zhang and Ding, 2018). Within
the franchise agreement, limited amounts of money are received by franchisees for expenditure
in restaurant companies, in order to buy new appliances, furniture and accessories, and other
agreements. Alongside this, capital investment in company is also appropriately designed to
improve its efficiency. In this respect, financial status of McDonald's since last 5 years (i.e. from
2015 to 2019), can be calculated by its statement of cash flows, as seen below:
MCDONALD'S CORP (MCD) Statement of CASH FLOW