Mcdonalds Essay

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Introduction This report assesses McDonalds UK market environment and critically examines their strategic responses. From this critique, a series of recommendations will be made. Company Overview McDonalds originated in California (USA) 1954, and was founded by Richard and Maurice McDonald. The first restaurants were renowned for their 15Cent hamburgers, and offered customers a simple menu and efficient service. In 1955 Ray Kroc opened the first franchised McDonalds restaurant in Illinois. McDonalds has since grown to become one of the world’s most recognised brands. It has established a presence in 117 countries with more than 32,000 franchised stores, serving over 47 million people each day. The UK subsidiary of the McDonalds Corporation, which is the focus of this report, includes 1,200 restaurants serving over 3.5million people a day. Market Overview The UK fast food, takeaway and home-delivery market, including coffee shops, reached a market value of £12.7bn in 2009 – a growth of 4.7% since 2008 (KeyNote, 2010). ‘Despite the recession, companies offering goods and services at the cheaper end of the market are thriving, as consumers are favouring cheaper alternatives.’ (The Times Online, 2008) MARKET ANALYSIS External Audit MACRO Environment: PESTEL This section provides an analysis of the main external factors that influence the market within which McDonalds operates. Fig.1. PESTEL Analysis |Politic|Laws inhibiting marketing and advertising of fast food have been introduced ‘as a step towards improving children's diets and | |al/Lega|tackling rising levels of obesity’ (Foods Standards Agency, 2007) | |l |It was announced in April 2007 that advertisements of fast-food were to be banned during times when children’s programmes were

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