Risk Assessment on McDonalds

This study highlights various risk descriptions, identification of opportunities and threats, existing control measures, calculation of key risks and mitigation action plan for McDonalds.

Risk assessment on
McDonalds

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Aims of organisation...................................................................................................................1
Risk Thresholds...........................................................................................................................2
REFERENCES..............................................................................................................................16

INTRODUCTION
Risk assessment in turn is considered to be as an effective approach which is very useful
in effectively describing the overall procedure of the company by effectively identifying various
hazardous risk factors which in turn is largely associated with the company (Dainty, and et.al.,
2016). This study will highlight on various risk descriptions, identification of the various
opportunities and threats, existing control measures, calculation of the key risks and the
mitigation action plan for the risk. McDonald’s is an American fast food company which in turn
was founded in the year 1940 by the Richard and Maurice McDonald. This company is
headquartered in the Chicago, Illinois. The key products within which McDonald’s deal is
Hamburgers, French fries, milkshakes, chicken, desserts, wraps, soft drinks, etc.
MAIN BODY
Aims of organisation
McDonald’s is an American fast food company which in turn was founded in the year
1940 by the Richard and Maurice McDonald. This company is headquartered in the Chicago,
Illinois. The key products within which McDonald’s deal is Hamburgers, French fries,
milkshakes, chicken, desserts, wraps, soft drinks, etc.
Aim
The key aim of the McDonald’s company is to serve good quality food in a fun and
friendly environment. The company in turn tends to focus on providing customers with food
which are high on standards, value for the money and also provides quick service.
Objective
 The key objective of the company is to be socially responsible and to comply with the
sustainable needs of the environment.
 The key objective of the McDonalds Company is to be provide one of the leading o\
world’s quick best service experience.
 They in turn tends to focus on providing wide range of quality, outstanding, clean and
value products to the company.
 To create wide degree of value in the eyes of the customers.
Mission
1

The key mission of the McDonald’s company is to be our one of the favourite place to
drink and eat. They focus on providing exceptionally well customer experience.
Vision
The key vision of the McDonald’s company is to be one of the globally best fast food
chain by providing service restaurant experience. They also tends to focus on providing wide
range of quality, outstanding, clean and value products to the company.
Risk Thresholds
Risk Threshold in turn largely determine the amount or degree of risks which in turn is
largely acceptable for the organization. The organization in turn can accepts the minimal over
runs within the cost or various set of changes within the scope (Walker and et.al., 2015).
Acceptable level of the risks in turn are considered to be the risks which in turn are largely
acceptable by the organization. Risk register in turn is considered to be as one of the most
effective measure which in turn is considered to be very useful in determining the known risk to
the organization (Improved Risk Assessment & Security While Managing Costs & Liability,
2020). The rank within the risk registers which helps in determining the risks in order to evaluate
various type of risks at the same level within the organization.
2

R
is
k
N
o
.
Risk description Existing controls
Likelihood (1- 5)
Impact (1- 5)
Risk rating
Mitigation
actions
1 Highest privacy
risk- In context of
research, it has
been determined
that researcher face
several risk that
affect investigation
procedure and final
outcomes after
completing work
(Wang and et.al.,
2017). High
privacy on several
websites creates
biggest challenge
for researcher to
collect data either
MC Donald's should
secure it's app and
website. It should
avoid SQL injection,
cross site scripting
and the sensitive
should be stored in
encrypted form.
They should strictly
follow GDPR policy
and should not store
any customer data.
Server data should
be backed up on
regular intervals.
Servers should be
updated with latest
The
likelihoo
d of the
occurren
ce of this
particula
r risk is
estimate
to be 4.
The
likely
impact
of the
particul
ar risk
on the
workin
g of the
organiz
ation is
estimat
ed to be
5.
The company must
focus on
identifying areas
which are
associated with
non-compliance of
HIPAA and
various other
security
regulations
associated with the
company
(Improved Risk
Assessment &
Security While
Managing Costs &
Liability, 2020).
3

qualitative or
quantitative. While
conducting
research based on
above topic,
researcher is unable
to gather data that
may be important
for them because
high privacy
concern of
government which
do not allow people
to take data without
approval. Data
privacy on several
websites impact
finding and
conclusion that is
not appropriate for
investigator. The
main reason behind
this act is to secure
data or information
stolen by person
who can use it in
unethical manner.
It helps to secure
info steal from
cybercriminal. But
version. Security
wall should be made
strict to avoid
unauthenticated
access. They could
use better cloud
solutions which are
offered by various
software companies
as they adhere to
these security
compliance.
The organisation
will also focus on
identifying
vulnerabilities
which in turn
largely results
in leading to lack
of integrity and
confidentiality
(Papageorgiou,
Kosma, and
Lambropoulou,
2016). The
company must in
turn also focus on
assessing with
various current
security measures.
The organisation
must focus on
determining the
potential the
potential
likelihood and
impact of the
threat to the
organisation. The
company must also
focus on gathering
information
4

it impact negatively
on data collection
process and then
findings. It takes a
lot of time to
overcome this risk
and efforts as well.
High privacy
bound investigator
to analyze and
evaluate qualitative
or quantitative
data. To collect
qualitative and
quantitative data,
researcher uses
several sites and
high privacy on
sites impact on
current research
activities
negatively.
associated with the
physical,
administration,
technical standards
which in turn has
been outlined by
the security rule.
2 Limitations
(time)- Along with
above risks,
researcher face
another risk that is
time limitation that
affect results and
conclusion (Conte,
The controllable
measures which are
to be taken by the
McDonald’s
company is to
critically make an
appropriate plan
which in turn leads
The
likelihoo
d of the
occurren
ce of this
particula
r risk is
estimate
The
likely
impact
of the
particul
ar risk
on the
workin
The management
of the McDonald’s
company must
focus on building a
Gantt chart
structure and a
complete timeline
which helps in
5

Scarsini and
Sürücü, 2016). Due
limited time period,
researcher is unable
to collect data from
other important
sources. It can be
said that this risk
potential impact on
quality of findings
and capability to
answer research
question. This is
another biggest risk
for researcher to
overcome it and
gather data that is
relevant to chosen
topic. There are
many possible
limitations that will
effects research. It
can be said that
every research
procedure has
limitations, it can
exist dud to
constraints on
research
methodology and
to higher operational
growth and
sustainability of the
organization
(Anbari, Tabesh, and
Roozbahani, 2017).
The management of
the McDonald’s
company must focus
on building a Gantt
chart structure and a
complete timeline
which helps in
carrying out each
operations and task
of the business
within the stipulated
time (Improved Risk
Assessment &
Security While
Managing Costs &
Liability, 2020). The
organisation must in
turn also focus on
carrying out each
tasks within the
structured manner.
The management of
the organisation
must also focus on
to be 3. g of the
organiz
ation is
estimat
ed to be
4.
carrying out each
operations and task
of the business
within the
stipulated time.
The organisation
must in turn also
focus on carrying
out each tasks
within the
structured manner.
The management
of the organisation
must also focus on
creating a work
breakdown
structure which in
turn usually helps
in bifurcating the
work in order to
complete each task
within stipulated
time frame. The
management of the
organisation must
also focus on
avoiding
unnecessary
activities which
consumes more
6

this factor may
impact on findings
as mention above.
Along with above
limitations,
common
methodological
limitations also
impact on findings
and data collection
activity. For
example, issue with
selection and
sample affect final
results. Sampling
errors occur when a
probability and
non-probability
sampling
approaches is
utilized to select a
sample, but it does
not reflect local
people and right
sample concerned.
developing a work
breakdown structure
which in turn usually
helps in bifurcating
the work in order to
complete each task
within stipulated
time frame.
time of the team
members within
the company
(Binion, and et.al,
2015). Also, the
management of the
organisation must
focus on using
time management
techniques and
also implement
new
methodologies in
order to complete
task within the set
time frame.
Moreover, the
organisation Just
in turn also focus
on creating a
blueprint
according to which
all the work and
operations of the
McDonald’s
company will be
carried out. These
are the few
mitigation plan
which helps in
7

effectively
utilising the time
and attaining the
aims and
objectives of the
organisation.
3 Intense
competition level-
in context of
McDonald’s,
management feel
more pressure in
regards to change
their business
functions and
performance due to
intense competitive
level which impact
on productivity and
profitability. Firm
is an industry
leader in fast food
sector, they face
issue such as high
competition.
Existing players
within industry
give tough
competition to each
other and it put
Company's board
members should
come up with vision
and strategy to
achieve it. They
should not follow
their competitors
without proper
analysis (Improved
Risk Assessment &
Security While
Managing Costs &
Liability, 2020).
They can come up
with various short
term vision and their
respective strategy to
achieve their long
term goal. Board and
management should
regularly keep track
of activities and keep
them in alignment
with strategy.
The
likelihoo
d of the
occurren
ce of this
particula
r risk is
estimate
to be 3.
The
likely
impact
of the
particul
ar risk
on the
workin
g of the
organiz
ation is
estimat
ed to be
4.5.
It is very crucial
for the
management of the
company to have
complete research
related with the
market in which it
operates.
Moreover, it is
very crucial for the
management of the
organisation to
understand the key
strategies
associated with the
competitors
(Papageorgiou,
Kosma, and
Lambropoulou,
2016). The
management team
must also focus on
understanding the
needs and demand
8

high pressure on
company to modify
their production
procedure in
effective manner. It
directly affects
profit and sales of
its business rather
than before. Pizza
hut, Domino’s,
Burger king and
other fast food
firms are the
considered in list of
competitors who
are able to serve
and deliver their
quality products to
consumers. This
risk is not suitable
for company as it
create negative
environment at
workplace or
among members
who are working
with McDonald’s.
Company should do
SWOT analysis to
leverage their
strengths and use
them to overcome
the weakness
(Anbari, Tabesh, and
Roozbahani, 2017).
They should always
look forward for
opportunities,
always work in sync
with the customer
demand and should
focus on customer
satisfaction. The
management of the
organization must in
turn tends to focus
on clearly carrying
out the PESTLE
analysis which in
turn is very useful in
completely carrying
out the competitive
analysis of the
market which
eventually leads to
higher operational
growth.
of the customer
and also look after
the existing
customers. Also,
the management of
the organisation
must target new
customers in order
to increase the
customer base and
leads to higher
profitability to the
business. The
marketing team of
the company must
also focus on
ensuring an
effective
marketing and
branding strategy
in order to be
ahead of the
competitor in the
market. The
company must
critically and
continuously
valuate the key
strategies of the
competitors within
9

the market in order
to stand ahead.
4 Increased health
awareness among
consumers- In
recent time, people
are more concern
towards their
health, they take
care of it and
purchase healthy
products instead of
junk food or fast
food items. It
impact on buying
and purchasing
behavior of
consumers which is
really not suitable
for McDonald’s. In
order to reduce this
potential risk
organization need
to take right action
that takes time and
efforts. Changes in
consumer’s
preferences put
high pressure on
management to
It is considered to be
very challenging for
the McDonald’s
company to attract
the customers which
in turn are looking to
focus on eating
healthy lifestyle. The
McDonald’s
company must in
turn largely focus on
launching high
degree of the product
line which are high
on nutritious and
dietary ingredients
(Kokangül, Polat,
and Dağsuyu, 2017).
The company must
eventually in turn
focus on launching
products which are
low on fat and
calorie. It also
focuses on launching
low calorie soft
drinks which in turn
are considered to be
The
likelihoo
d of the
occurren
ce of this
particula
r risk is
estimate
to be 3.
The
likely
impact
of the
particul
ar risk
on the
workin
g of the
organiz
ation is
estimat
ed to be
4.
It is considered to
be very crucial for
the McDonald’s
company to
critically evaluate
the needs and
demand of the
customers on the
regular basis in
order to standby
the commitments
of the organisation
(Binion, and et.al,
2015). Consider to
be very necessary
to meet the
expectations such
as likes, dislikes,
inclinations,
motivational
factors, etc. which
in turn largely
influence the
purchase decision
of the
customers. The
McDonald’s
company must in
10

change their
existing production
practices in term of
satisfying client’s
needs. It reflects on
how workers
satisfy needs and
demand of target
market. In context
of McDonald’s,
emphasis on fresh
and nearly sourced
ingredients is a
radical paradigm
shift in business
functions. In
simple terms
changing tastes of
people can impact
on organization in
term of their
business sales.
Changing taste
refers to increased
focus and concern
on health has
needed brands such
as McDonald’s to
provide to lose
sales.
very prominent for
the attainment of the
higher operational
goals and objectives
(Improved Risk
Assessment &
Security While
Managing Costs &
Liability, 2020). The
McDonald’s
company in turn is
largely focus on
spending high
degree of money on
the research and
development in
order to get high
degree of access to
the data which helps
in producing food
products which are
full of nutrients, rich
in fibre and healthy
(Papageorgiou,
Kosma, and
Lambropoulou,
2016).
turn tends to
largely focus on
developing the
foods and drinks
which are healthy,
low at
carbohydrates and
sugar (Bahr,
2018). This way it
is very useful in
attracting the
customers who are
health and diet
conscious. The
management of the
company must in
turn also focus on
using organic set
of products which
in turn largely
influence the needs
and demand of the
customers.
providing with the
wide range of
healthy food items
in turn is very
useful in attracting
the large number
of customers from
11

across the globe.
5 Ethical issues- In
context of research,
researcher face
different risk that
impact on current
as well as further
research activities.
Ethical issue in
conducting
research is major
risk that affects
data collection,
sampling and data
analysis negatively.
Without
considering ethical
practices researcher
was unable to
collect data and
draw final
conclusion.
Investigator
without respecting
the opinion of other
people do not
analyze and
interpretate data
that is really very
The McDonald’s
company must in
turn tends to focus
on effectively
building the key
culture of integrity
and also establishing
the strong
foundation within all
the departments of
the McDonald’s
company (Improved
Risk Assessment &
Security While
Managing Costs &
Liability, 2020). The
organization in turn
must also focus on
effectively re-
evaluating and
revising the various
the ethical issues of
the company. The
organization will
focus on honestly
assessing the various
resources and ethical
needs associated
The
likelihoo
d of the
occurren
ce of this
particula
r risk is
estimate
to be 3.5.
The
likely
impact
of the
particul
ar risk
on the
workin
g of the
organiz
ation is
estimat
ed to be
5.
The ethical issues
associated with the
McDonald’s
company can be
effectively
mitigating by
building a culture
which is filled up
with integrity
(Kozmenko, and
Oliynyk, 2015).
The company must
focus on
emphasising more
on the conducting
business operation
ethical manner by
effectively
complying with
the various legal
laws and
regulation policies
of the company
and economy. The
legal team of the
organisation must
be kept adequately
informed about the
12

important for
finding part as it
help to determine
negative and
positive aspects of
research topic.
Furthermore,
researcher face
issue about
confidentiality and
privacy as they
cannot be able to
chose the right
method that may be
affects overall
research process
negatively.
with the company
(Kozmenko, and
Oliynyk, 2015).
various set of
issues which in
turn can largely
influence the
operations of the
company. The
management of the
organisation must
also focus on
upholding with the
commitments and
the promises
which has been
made to the
employees,
stakeholders and
customers of the
McDonald’s
company
(Improved Risk
Assessment &
Security While
Managing Costs &
Liability, 2020).
The company must
also focus on
rewarding and
acknowledging the
various ethical
conduct which in
13

turn helps in
mitigating such
ethical issue
(Binion, and et.al,
2015). Moreover,
the management
and legal team of
the company must
also focus on
evaluating the
people who are
hold accountable
for violating the
key standards of
the company.
Opportunity Opportunity description Action to enhance
opportunity
1 Increase in the demand of the
customers for healthy food
range products (Ågerstrand
and et.al., 2015). The
customers of the company are
indulging in healthy set of
lifestyle who in turn focuses
on consuming healthy set of
food which in turn leads to
higher growth and
sustainability for the company.
The McDonald’s company in
turn is most likely to
rigorously focus on promoting
the healthy range of products
online that matches the needs
and preference of the
customers (Kokangül, Polat,
and Dağsuyu, 2017). The
company indulges in various
promotional activities such as
social media platforms like
Instagram, Facebook, Twitter,
14

etc.
2. Product diversification and
expansion to the various
foreign markets in turn is
considered to be as one of the
major opportunity for the
business which in turn helps in
increasing the sales and
profitability to the company
(Anbari, Tabesh, and
Roozbahani, 2017). The
company in turn also tends to
largely focus on expanding
business to foreign markets
which eventually leads to
higher market share and also
high degree of customer base
for the company. Expanding
the product range to more
healthy and tasty product line
in turn is considered to be very
beneficial and aids to high
degree of opportunity to the
organization.
The McDonald’s company has
the capacity and high degree
of risks which in turn helps in
diversifying the various range
of products which eventually
leads to higher sustainable
growth. It is very useful in
strengthening the brand
reputation and image of the
company (Improved Risk
Assessment & Security While
Managing Costs & Liability,
2020). One of the major risk
associated with this
opportunity is mainly related
with the trade barriers and
stringent governmental laws
associated with the
McDonald’s company
(Dainty, and et.al., 2016).
CONCLUSION
From the above conducted study it has been summarized that, Risk Threshold in turn
largely determine the amount or degree of risks which in turn is largely acceptable for the
organization. The key risk associated with the company is high privacy risk. MC Donald's should
15

secure it's app and website by encrypting data. They should strictly follow GDPR policy and
should not store any customer data. Time limitation in turn is one of the most appropriate
measure which in turn is considered to be as one of the major risk of the business. Proper
planning, making Gantt Chart, WBS and Timeframe are appropriate mitigation factor which
helps in managing each task on timely manner. Another major risk is intense competition. It is
very crucial for the management of the company to have complete research related with the
market in which it operates. Board and management should regularly keep track of activities and
keep them in alignment with strategy. Company should carry out SWOT and PESTLE analysis
to leverage their strengths and use them to overcome the weakness. It has been concluded that,
increased health awareness among consumers is a major risk for McDonald’s company. The
McDonald’s company must in turn largely focus on launching high degree of the product line
which are high on nutritious and dietary ingredients. Moreover, ethical issue is considered to be
as one of the major risk factor for the organization. The legal team of the organisation must be
kept adequately informed about the various set of issues which in turn can largely influence the
operations of the company. Another mitigation action is that, the company must focus on
upholding with the commitments and the promises which has been made to the employees,
stakeholders and customers of the McDonald’s company.
It has been summarized that, increase in the demand of the customers for healthy food
range products is a major opportunity for the business in order to attract people who have healthy
lifestyle. Moreover, diversification of the product and expansion to the various foreign markets is
considered to be as one of the major opportunity for the business which in turn helps in
increasing the sales and profitability to the company.
16

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