Market Analysis of McDonalds

Management Economics

Table of Contents
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...........................4
4. a) Critical analysis on various market structure for identifying optimal structure for
McDonalds.............................................................................................................................4
4. b) Suggestions on lesser or greater interventions of government upon key operations of
McDonalds.............................................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Managerial economics is one of the important concept which define as amalgamation of
various economic theories with practices of business, so that better decision can be taken. Such
decisions are based on minimisation of cost and maximisation of profitability, via successful
operations and productions (Sagheb, Ghasemi and Nourbakhsh, 2020). For this purpose, a study
is conducted to analyse the way in which economic theories can be applied on business policies.
To conduct this study, McDonald’s is chosen, which deals in fast food industry and operated
business in more than 100 countries. For analysing its market condition as well as structure,
under which it operates business, overall historical data with financial position of this firm is
evaluated. Furthermore, some suggestions upon greater or lesser interventions of government on
its production is also being made in this report, by considering the society benefit.
MAIN BODY
1. Overview of McDonald’s, with descriptions of products/services
Fast food industry is one of the major channel sectors, which continues to perform well in
all aspect of economic conditions. In UK, it has been evaluated that this sector has accelerated its
growth as just doubled from last few years. Considering its growth and expansion of business at
international level, it is predicted that worth of this industry may reach by £9.8 billion till 2021
(How to hack into the growing Fast Food UK Industry, 2019). Through Office of National
Statistics, it has been evaluated that people of this country spent near about 22% on takeaway
deliveries, so, it shows expected high growth of fast food companies in future also (Silva and et.
al., 2019). McDonald’s is one of the fastest growing food company, which is founded in 1940.
At initial period, its co-founders Richard and Maurice McDonald has just opened a single
restaurant in San Bernardino, US. After then, they have started in expanding the business in other
locations, at domestic and international level, where it first extending in 1967 to Canada. After
then, it reaches a total of ten thousand restaurants till 1988. Continuing this expansion, through
franchising and other options, by 21st century, it has expanded business with near about 35,000
outlets in more than hundred countries (Adekoya and Jimoh, 2019). Although, growth in 90’s
was so swift in the 1990s where in every 5 hours, McDonalds has opened new outlets worldwide.
So, this would make this firm as the largest fast-food chain firm as most popular family
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