Mc Donald’s Company Overview and Analysis

Business Research Methodology 1
MC DONALD’S COMPANY OVERVIEW AND ANALYSIS
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Business Research Methodology 2
Abstract
The report is based on research analysis of MC Donald’s company. The main scope of the
research is generally characterized by three research hypothesis. These include environmental
analysis and evaluation, company competitive analysis, and the marketing structure and size in
terms of distribution in the international market. MC Donald’s company is considered as one
best and biggest fast-food company in the entire world serving approximately more 40 million
customers on daily basis. Based on the SWOT and PESTLE analysis conducted on Mc Donald’s
environment situation, the company poses a significant competitive advantage both in its chain
structure and brand position (Vrontis and Pavlou, 2008). The organization structure and system
of Mc Donald’s management is considered one of the best and most effective in the entire fast-
food industry. This has led to an increase of loyal customer’s base which offers Mc Donald’s
great competitive advantage over its rivals (Eriksson and Kovalainen, 2015). With the Mc
Donald’s franchise network of over 31,000 branches, the company has significant control of the
entire fast-food market share in the provision of sustainable and quality standard services. The
main recommendations that the company should consider is increasing integrated marketing
communications in all its major markets and increase its market expansion in potential emerging
markets such as China and India (Chan et al., 2012). In summary, the business research done on
Mc Donald’s has been very successful in meeting the set objectives of the research and an
increase in the understanding management structure of the fast-food multinational company.

Business Research Methodology 3
Table of Contents
Abstract............................................................................................................................................2
Introduction/Background Analysis..................................................................................................5
Research Methodology....................................................................................................................6
Mc Donald’s Environmental/Situational Analysis..........................................................................7
SWOT Analysis of Mc Donald’s Company................................................................................7
The strength of Mc Donald’s...................................................................................................7
Weaknesses of Mc Donald’s...................................................................................................8
Opportunities for Mc Donald’s................................................................................................8
Threats of Mc Donald’s...........................................................................................................9
PESTLE Analysis of Mc Donald’s Company.............................................................................9
Political/Legal Factors.............................................................................................................9
Economic Factors..................................................................................................................10
Social Factors.........................................................................................................................10
Technology Factors...............................................................................................................11
Environment Factors..............................................................................................................11
Analysis of Mc Donald’s Competitive Forces...............................................................................12
Porters Five Forces....................................................................................................................12
The threat of New Entrance...................................................................................................12
Power of Suppliers.................................................................................................................12

Business Research Methodology 4
Threat of Substitutes..............................................................................................................12
Buyers’ Power.......................................................................................................................13
Threats of Rivalries................................................................................................................13
Competitive Advantages of Mc Donald’s.................................................................................14
Mc Donald’s Marketing Strategies................................................................................................15
Segmentation, Targeting, and Positioning in the Market..........................................................15
Market Mix of Mc Donald’s- The 4 p’s....................................................................................17
Product...................................................................................................................................17
Price.......................................................................................................................................17
Place.......................................................................................................................................18
Promotion..............................................................................................................................18
Discussion and Recommendations................................................................................................19
Conclusion.....................................................................................................................................19
Bibliography..................................................................................................................................19
Appendices....................................................................................................................................19

Business Research Methodology 5
Mc Donald’s Company Overview and Analysis
Introduction/Background Analysis
The following report is based on research analysis of MC Donald’s company. The main
scope of the research is generally characterized by three research hypothesis. Under each topic,
there is a comprehensive analysis of the results in focus on the factors that affect MC Donald’s
and their relative solution(s). The first research topic focuses on MC Donald’s environmental
positioning by measuring its strength and weaknesses. The second topic will analyze the
company market structure and its competitive advantages over its rival competitors. The third
research topic will focus on analyzing the marketing structure and size in terms of distribution in
the food industry and an international company. These research will broadly characterize the
company features as an international fast company and its bargaining and supply power in the
market. Basically, the research will focus on understanding MC Donald’s strategy management
distribution in its major operational branches.
Generally, the objective of the research is to understand business strategies, their
evaluation, and in line the implementation of business research methodology. The report also
outlines the understanding of the environmental structure of the company and the factors that
influence its performance structure. Basically, the main objectives include;
 One of the main priorities of the research is to produce a conclusive assessment of the
company’s environment and its surrounding factors which may influence the company
normal functioning.
 To have a conclusive idea and analysis of MC Donald’s competitive advantages and
position in the fast-food industry both in the local and international market.

Business Research Methodology 6
 Gain an understanding of the company Marketing strategic formulation and how the
company is able to meet its various objectives and goals as an international company.
 To generally attain an understanding of the advantages and disadvantages of different
management strategies.
MC Donald’s company is considered as one best and biggest fast-food company in the
entire world serving approximately more 40 million customers on daily basis. The company has
been in existence in the food industry for almost more than 77 years now. The company was
started by Richard and Maurice McDonald, in the year 1940, a just as a small restaurant in
California State. Since then, the company has grown to be the largest “restaurant chain” in the
world (Eriksson and Kovalainen, 2015). MC Donald’s is currently established in over 100
countries around the world thus also becoming the biggest earning revenue fast food company in
the United States and one of the best in the world. Most of the MC Donald’s restaurants around
the world are operated by franchises (Bryman and Bell, 2015). As per 2017 financial report, the
company reported a total revenue of 22.82 billion U.S. dollars. Major the company earns revenue
from sales in the restaurants, royalties, rents, and franchise fees.
Research Methodology
The main methods used for data collection are broadly characterized into two ways which
are the primary and secondary source. The primary sources have been utilized in the research in
several ways but generally in direct contact with MC Donald’s customers, employees, and the
management. The main scope of the primary field research was to identify the company real-
time effectiveness as a fast-food multinational company. The secondary sources were basically
reading materials such as books, articles, journals, and also some websites such as the MC