McDonald's Performance Analysis: A Data-Driven BA30589 Project

This report presents a data-driven analysis of McDonald's, focusing on key performance indicators such as market capitalization, revenue, and the number of employees from 2015 to 2021. The analysis reveals trends in market capitalization, highlighting a significant increase in recent years, while revenue has shown a declining trend since 2015. The report also examines employee turnover rates, suggesting potential issues with the company's internal working environment. The study concludes that while McDonald's effectively leverages technology and advertising to drive revenue, it should focus on improving employee retention through a more supportive work culture and better incentive policies. Desklib provides access to similar solved assignments and project reports for students.

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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Data collection............................................................................................................................3
Data Analysis..............................................................................................................................4
Outcomes.....................................................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Nowadays, everybody has to deal with large data information, whether they are the
analysts or not. But people with a box full of data analysis skills have a competitive advantage on
others as they have understanding about how to manage the data. They know how to convert raw
numbers into data analysis that drives real world. They have a understanding about how to solve
structured complex problems and given data sets. The following report includes the data
presentation and analysis of the statistics for McDonald's. It is an multinational fast food chain
which was founded in 1940. It is the world largest restaurant chain by revenue and has the ninth
highest global brand valuation.
MAIN BODY
Data collection
Different kinds of information presented in a particular format is known as data. The
process of collecting, examining and analysing the accurate data from different sources to find
out the answers to evaluate the problems and outcomes, forecast of trends and probabilities. Data
collected should always be accurate. This is necessary to ensure quality guarantee, for making
good business decisions and keeping integrity in research. The researcher should identify the
types of data, the sources from which it is taken and the methods which has been used during the
collection of data. Before collecting any data, the analyst should have the understanding about
the goals and purpose of research, the kinds of data and the methods and processes that will be
used to collect and store the data. Data can be further divided into qualitative and quantitative
data. Qualitative data includes information about things like colour, size, and appearance.
Quantitative data deals with numbers like percentages and statistics. Data collection is divided
into two methods.
Primary method: When the data researchers collect the original data, the first hand data is known
as primary data. This process of collection is known as primary method. This process is the
initial gathering step information, performed at the first before any further research. Primary data
results are accurate provided the collection of information is done by researcher. But it is highlly
time consuming and expensive.

Secondary method: When the data is collected by the other parties and already have undergone
the data analysis, this process of collection is known as the secondary method. The researcher
has given task to other people to collect the information, this information is the secondary data.
This type of information has concerns regarding accuracy.
Data Analysis
The procedure followed for inspecting, transforming and modelling data with the
objective to utilize such information for obtaining relevant conclusions, is defined as data
analysis. The data analysed by the authorized personnels is collected from various resources
which are available within an organization or derived from surroundings. All of such data is then
sorted and a meaningful outcome is researched for current or future usage. Also, one of the most
common techniques of data analysis is data mining, where the main focus is on statistical
modelling, which defines data for predictive purposes rather then concentrating solely on
descriptive purposes (Gontar, 2019) In this report, the data collected belongs to McDonald's, a
food chain company, whose raw data relating to Market Capitalisation, Revenue and Number of
Employees are analysed, for the last seven years, that is, from 2015 to 2021.
Market Capitalisation – The total monetary value which is assessed for a company through
market analysation, for its outstanding shares as termed as Market Capitalization. Furthermore,
the market value is often referred to as the “cap price” or “market cap” and calculations for the
same, are based on the formula below:
Market Capitalisation Rate = Total Outstanding Shares * Current Market price per share
By assessment of the given value, the investors are capable of examining a company's monetary
value in the industry and at the same time helps them to initiate necessary actions to improve
their situation, if the capitalisation rate is not what is desirable. Additionally, the higher rate will
prompt employees to work effectively and helps in increasing their morale, towards achievement
of unified goals, by way of increase in generation of turnover (de Campos, 2020). An ideal
capitalisation rate will also help company to compete in the market and use its position wisely.
Revenue – When a company sells its products or services to consumers, it receives a certain sum
of money, in cash or credit, the sum total of such amount for a specific period of time, mainly for
a financial year, is described as Revenue for an organisation. Various strategies and method are
usually applied by the management to improve the revenue of the company. Moreover, the
transactions through which an organisation determines what should be identified as revenue, are

recorded in financial statements, by way of Book-keeping or accounting. However, the revenue
income is not generated even when there are receipts, it could be due to undelivered goods for
which advance payment has been received or for goods whose selling price is yet to be received.
Outcomes
Market Capitalization - The market capitalisation rate of the company is witnessing a
significant amount of increase in the past few years, which could be a result of significant growth
in the stocks of the company. To put it simply, the market cap is defined as the total value of
outstanding shares of the company, here the value noted in billions is the highest in year 2021.
This could be a result of favourable demand and supply of the company which is incremental in
nature or due to advanced technology applied in the company, with $142 billion (approximately)
being the average value or mean for the given data, this characterizes the overall productivity and
revenue generation capability of the company, with respect to its market position. Furthermore,
for median, that is the middle value for the given set of data which divides such data equally, is
calculated at $137.21 billion. As for the mode, which defines the individual subject in the data
with the highest frequency, or the one which occurs for the highest number of times. Here, due to
the uniqueness of the data, no mode can be calculated. The maximum market capitalisation rate
is at $200.31 billion for the year 2021, which signifies, that the company had the highest
amounts of turnover and share rates in that year. And the minimum value, being $101.08 billion
for the year 2016.
Revenue – The turnover defines how the company is performing among the public, by sale of
produced goods ans services. For McDonald's, the major source of income are food and
beverages, which are the highest in year 2015 at $25.41 billion. As per the data analysed, a
conclusion can be derived that the company's revenue has been declining since 2015, which
could be a result of increased expenditure made towards procuring products through
implementation of advance technological changes and models to attract consumer attention.
These methods can help the company compete in the market, however they need to balance out
the expenses made from the revenue generated (Gnangnon, 2018). Moreover, the mean value is
derived at $22.38 billion and median is derived at $22.82 billion, with the meaning of both being
already discussed . The mode as stated before, cannot be assessed due the data being different,

also the maximum and minimum revenue generated by the business is marked at $25.41 billion
and $18.86 billion in year 2015 and 2020, respectively.
Number of Employees – As per the data available, the company has a significant rate of
separation for employees. The number of employees in 2015 were at 420000 which continuously
witnessed a downfall, with year 2021 being the lowest in terms of employee count, which is at
195000. The high employee turnover, defines an unstable and incompatible working
environment designed in the company, with unfavourable employee satisfaction graph.
McDonald's being a food and beverage giant, usually garners attention from part time
employment seekers for workings in its food joints or outlets as waiters or servers, henceforth,
the separation rate is higher as compared to other companies in similar industries. Furthermore,
the mean and median is calculated at 262660 and 210000, respectively. The mode, however,
cannot be assessed. Also, the minimum and maximum employee count was at 195000 and
420000 for 2021 and 2015, respectively.
CONCLUSION
Through demonstration and analysis of given data, the judgement about McDonald's
market position and internal working methods can be defined. The company relies heavily on
technology as well as advertisements, to grow engagement rates from the audience and
simultaneously increase revenue (Gnangnon, 2018). However, by examination of its employee
turnover rates, it can be revealed that the company's major concentration is more on the external
factors, rather then striking a balance between both internal and external factors. To implement
innovations and new policy in a short period of time, will result in decreased retention rates and
indirectly decrease its goodwill. By proper utilization of current resources, as well as educating
employees about modern technologies used and motivating them to perform better, through
introduction of promising work culture and incentive policies, the company will be able to
remarkably impact its turnover, whilst maintaining low employee turnover rates. It must be noted
that data analysation techniques do not provide absolute assurance about an organisation's
position, hence should not be used to make crucial decisions.

REFERENCES
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