McDonalds of Leadership and Management - Essay Example

The competitive environment is studies through the use of Porter’s Five Forces. The combined analysis brings forth the strengths, weaknesses, opportunities and threats of the company which forms grounds on which suitable management and leadership strategies are built. Brief outline of company McDonalds is regarded as the largest chain of fast food restaurants in the world which serves as many as 68 million customers across 119 numbers of countries across the world each day. Based and headquartered in the US, the company had begun operations as a barbeque restaurant in 1940 and ran their business as a hamburger stand with the use of product line principles.

The famous businessman Ray Kroc who had joined the organization as a franchisee agent subsequently purchased the chain from the McDonald brothers. Thereafter the company has seen widespread and rapid growth which eventually turned into immense success and victory. Some of the products which account for the USP of the company are hamburgers, chicken, cheeseburgers, breakfast items, French fries, shakes, soft drinks and desserts. Along with changes in consumer tastes and preferences, the company also has accordingly expanded its menu and included items such as wraps, salads, fruits and smoothies.

Operated through both franchisees and affiliates the company earns its revenues through the fees, royalties and rent paid by franchisees and sales revenues through the company oriented restaurants. Almost 59% of the company’s restaurants are franchised; 21% of them are licensed to developmental licensees and foreign affiliates; and the remaining 20% are company operated (McDonalds, 2012). The company’s demonstrated huge growth between the years 2004 and 2007 which reflected through enhanced revenue of $22.

8 billion and 9% increase in its operating income (MC Spotlight, 2012). McDonald’s success can be considerably attributed to its strength of alignment between suppliers and franchisees coupled with its business model which has enabled it to deliver consistent experience of a local restaurant to its customers and become an integral part of the communities which they serve. A customer focussed plan forms part of its global business strategy which is aimed to meet the changing tastes and preferences of customers and maintain sustainability in the market.

The company’s business managed by numerous and a distinct geographic segment which includes countries in USA, Europe, Asia Pacific, Middle East and Africa and also nations like Canada and Latin America (McDonalds, 2012). How the organization monitors its environment The company makes a thorough analysis of its social and environmental; environment and integrates them into the four business aspects which forms the key to its success and profitability. The company’s programs, policies and progress are appreciated by its investor community since the company is a member of Dow Jones Sustainability Index from the year 2004 and is also named to many of the other socially