The major success of McDonalds is based on this franchisee business model. Approximately 70% of McDonald's worldwide restaurant businesses are owned and operated by independent businessmen and women, our franchisees. McDonald's first restaurant in UK was opened in 1974 in the province of Woolwich. This was owned and managed by the company directly. It was in 1986 that McDonalds started franchise model of business by opening franchise restaurant. Since then number of franchise restaurants in UK has been on steady rise.
In this paper, we analyze how the structure of the McDonald's business model and how has it changed in UK. Today Big Business has a strength is the market. McDonald was able to make use this big branding image in UK market. It is natural that large business corporations account for major shares of output, employment, investment and trade. This article reviews five aspects of McDonalds during the last five years from 2001-2006. The major points we are going to discuss are 1. role of the large corporation as a feature of the UK economy 2. role of its business leaders 3. the managerial revolution 4. existing business environment and the size of Britain's large companies relative to other parts of the country. The beginning of this period is marked by a real testing periods for many corporates. Companies need to look for new business models to survive in this context. Understanding the managerial practice of McDonald, it will be meaningful to understand the objectives and concepts of retailing.
In the McDonald's franchise business model they will be supported by the world famous McDonald's system, in the areas of operations, training, advertising, and marketing to name but a few. McDonald's franchises restaurants to individuals only. Never to companies, partnerships, family groups or passive investors. Franchisees run their restaurant(s) as an independent business. They are responsible for driving the business forward and all normal business functions i.e. recruiting, marketing, accounting and administration and managing and representing the brand in the local community. Independent companies supply all raw materials, goods and services to each restaurant. All products used in the restaurant should have approval of the parent group. McDonald's Franchise Agreement is for twenty years.
The competition in the food retail sector in UK is growing and the future of foodstuff trade belongs most likely to the retail chains. The retail chains in UK are fairly developed, as they do not differ much from the corresponding developing retail formats. The competition has increased with the entry for retail chains. The share of retail chains of the whole retail trade is at the moment estimated to be around seventy percent, they are taking over the markets at a rapid pace at the expense of unorganised forms of trade. The presence of large retail chains has an impact on the production side also. In the food production sector the competition is fierce, as big UK and foreign producers want to ensure their piece of the huge demand potential. Thus the largest producers are relentlessly utilising their size: they invest in big marketing campaigns and are willing to pay high entry fees to retail chains in order to secure a place on the store shelves and build a strong brand also in UK. Information on