Investment Strategies Employed by McDonald's - Essay Example
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With every organization expanding their horizons and making an imprint in various markets, the finance department had to put in an extra effort to formulate strategies to reach company’s financial target. So, this paper will focus on the American food major, McDonald’s and will discuss the major successful strategies adopted by it to deal with international finance and investment issues, then evaluate its performance overall in relation to those financial issues and finally will pick up the potential challenges it could face in the 21st century in the financial segment of its functioning.
McDonald’s, the world’s largest chain of fast-food restaurants, went through ups and downs in its 60 years of functioning, in every aspect of the organization including the financial aspects. Financial aspects, which are the lifeline of any organization, needed to be handled or solved first for the organization to succeed or even survive. In the case of McDonald’s, financial issues have not given any major troubles before 2000. After early 2000 only, McDonald’s faced financial problems and that only led to the implementation of various strategies, which turned out be successful. One of the successful strategies adopted by McDonald’s to deal with its international finance and investment issues is its “Plan to Win” strategy. Using this strategy, McDonald’s brought wholesome changes, particularly changing the financial issues to the positive side. That is, it introduced new health friendly dishes, refurbished the store’s environment and also signed new celebrities to promote the product and store. “Plan to Win, a combination of customer-centric initiatives designed to deliver operational excellence and leadership marketing leveraged around five drivers of exceptional customer experiences - people, products, place, price and promotion” (biz.yahoo.com).
This paper “Investment Strategies Employed by McDonald's” will focus on the American food major, McDonald’s and will discuss the major successful strategies adopted by it to deal with international finance and investment issues…
This policy is appropriate because it is measureable and has specificity. Its long term objectives are broken down into short term measurable targets that used product, price, promotions and place. For instance, in product, McDonald’s introduced new products and phased out old ones, and will continue to do so.
The company is famous for its Big Mac burgers, fries and different food items. According to McDonald’s mission and vision, the company has able to create a positive brand perception in customer’s mind. McDonald’s kept promises about the supreme quality of food with effective customer service in a clean environment which reflects in every McDonald’s outlet.
The marketing strategies and marketing plans that McDonald's Corporation uses is also looked upon at great details. The report also contains some of the new marketing techniques that McDonald's Corporation has started using in order to further strengthen their position in the market.
Hedging is a strategy designed to decrease risk and pay for it with an accompanying and comparable decline in return. It is a strategy for those in a long position seeking to allocate risk differently and listed put options are one means to accomplish the hedge.
opening up new stores. It continued to open new stores and add new items to the menu without realizing the fact that its products were no longer selling as they were in the past.
2. Customer preferences were changing i.e. they were after for products which are fresh, nutritional as well as healthy.
To achieve this objective, daily stock prices for the stocks included in each portfolio over the period 08/08/08 to 09/05/08 are downloaded from yahoo finance and are used to calculated average daily returns and standard deviations for each stock. The average daily returns for each stock are then used to calculate an average return for each portfolio over the period under study.
Floor running managers are subsequently followed by staff training crew. Crew members follow staff training crew. McDonalds’ is having a division organization structure at restaurant level. This structure consists of different teams
The author states that forty dollars in 1919 is quite different from forty dollars in the current world. he states that despite the rise in inflation, rise in the price of sugar, the world war and the great depression that targeted the financial market investigating in the coca cola company was still the best idea.
1 pages (250 words)Assignment
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