Milestone Two Overview McDonald Corp

McDonald Corporation

Introduction

This paper will analyze the business profile of Mc Donald through the analysis of the corporation's market share as swell as e competition and the SWOTs analysis. It will also examine the potential political challenge or political action that could affect the organization in the scenario of increasing the minimum wage.

Part A: Business Profile of the Company

Mc Donald is one of the biggest fast food group internationally. There are several stores across the globe that serve over sixty million customers. Sixty percent of the stores are run as a franchise while the remaining forty percent are headed by the company itself (Henry, 2008). The company is committed to ensuring the devotion and strength of its employees and their service in the fast food market.

Market share

The company has a significant market share in the market, and it gives satisfactory results. The corporation is devoted to holding its current position as it aims towards attaining a dominating position. The firm considers its social responsibilities and serves the community with great gratitude.

Analysis of Mc Donald's Competitive Forces

Michael Porter's analysis of five competitive forces can be applied in the analysis of the competitive forces in Mc Donald. The company experiences a considerable threat of new entrants. For instance, when KFC opens new stores in areas dominated by Mac Donald, the company risks facing some barrier (Henry, 2008). The second competitive force is the power of supplies. The company practices a friendly and an honest relationship with its suppliers to gain the competitive advantage. The company gains the power of the customers by delivering outstanding services. Mc Donald also experiences a considerable threat of substitutes from businesses that process alternative foods at a cheaper cost. Finally, the company faces competition from other fast food companies including Burger King, KFC among others.

SWOTS Analysis

Strength: Mc Donald has been functioning for the last 60 years giving it an advantage of considerable experience in the food industry (Gould, 2012). The company also have effective communication and supply chain mix that makes it operate efficiently.

Weakness; the company experiences a high employee turnover. The profits also fluctuate, making the company unstable. The company has a low level of innovation.

Opportunities: the company stands a chance of attracting more customers by inventing new food and being innovative with the emerging technologies.

Threat; the company experiences great competition from other fast food companies including Burger King, KFC, Pizza Hut, and Subway.

PART B Governmental Action:

Mc Donald has been challenged by several legal matters by the government over the years. The successful operations of the company have made various firms to copy the logo and name of the corporation. Mc Donald has reacted by taking the legal action in the cases associated with the trademark (Gould, 2012). These cases can affect the business in this situation as the company may not be able to increase its minimum wage if the trademark issues persist.

Mc Donald has also be caught in cases of employee rights litigation. These cases could lead to huge fines and penalties that could hinder the organization from achieving its goals and objectives. Since the company operates in different countries that have diverse political systems, it should pay close attention to the right features of its operations in the given country to avoid incurring losses in the form of penalties and fines (Gould, 2012). Many governments at the moment are increasing their control over the fast food companies regarding the cases related to health. Most governments restrict the insurance of license to organizations. As SUCH, Mc Donald should continuously anticipate the legal actions in the political environment in different locations to avoid disruption of the business.

References

Gould, M.A., (2012), “Working at McDonalds: some redeeming features of McJobs”, Work, Employment & Society, Vol. 26: pp. 606-622.

Henry, A., (2008), Understanding Strategic Management, Oxford:Oxford University Press.