A.

Resources
McDonalds is large fast food business that is highly regarded and successful in the market of fast food
takeaways. Like every business, McDonalds must use resources to produce or supply their goods (e.g. A
Burger). Resources are the economic inputs used by producers in the production process to create the
outputs (the goods and/or the services). These resources can be categorized into four main groups:
Capital, Human, Entrepreneur and Natural. In this report, I will be identifying and explaining how
McDonalds uses and manages these resources in New Zealand. I will also explain and link the possible
benefits to the New Zealand economy and society (Consumers, Producers, Government) of McDonalds
use of these resources.
Natural Resources
Natural resources are the gifts of nature. By this I mean that these resources are available to use through
nature. (E.g. Plants, Animals, Land, etc.) The payment for the use of natural resources is rent. Being a fast
food business, McDonalds produces mainly food to their market and to do so, they use a wide range of
natural resources in their chain of production that are sourced in New Zealand. In 2009, McDonalds
sourced the following ingredients from New Zealand producers:
5.58 million kg of beef
2.3 million kg of chicken
1.4 million kg of lettuce (to be processed)
230,000 kg of tomatoes
85 million buns, rolls, bagels and muffins
4.6 million litres of milk
15.6 million kg of potatoes for processing
1.2 million kg of cheese
10.8 million kg of eggs
300,000 kg of Hoki (fish)
To gain these ingredients, McDonalds must use natural resources. The beef is sourced through the cattle,
which is a natural resource. McDonalds claim to have 100% New Zealand beef. This comes from a number
of farms throughout New Zealand such as Taranaki, Marlborough, Waikato and Manawatu. This means
that McDonalds also uses land, this being the farmland that the animals are produced. This also applies to
the other ingredients that are sourced through the use of farming/farmland, such as the vegetables and
dairy products (like the milk).
McDonalds manages these natural resources in a variety of efficient and productive ways. To
manage the quality of these natural resources, McDonalds have a system of food safety and quality checks
that these resources run through before being used. For example, the beef patties go through 52 of these
safety and quality checks before being able to be used in the restaurant. To control and monitor the
delivery of their natural resources such as the beef patties, McDonalds utilizes the trusted McKey
Distribution Centre that ensures premium quality. With the large amount of natural resources being used,
McDonalds utilizes bulk buying to reduce costs. McDonalds also has a warehouse in Auckland that
distributes the natural resources to the McDonalds outlets. This allows them to keep track of what goes in
and what goes out.
Human Resources
Human resources are the individuals, who create the work/labour force providing their work or effort. (E.g.
staff, chefs, drivers, etc.) The payment for the use of human resources is wages. Like most businesses,
McDonalds uses human resources to provide their excellent service and assist in the chain of production.
Across the country, McDonalds employ more than 9,000 staff and annually the payroll is about $2 million.
The amount of staff is constantly increasing as McDonalds continues to expand. This may include people
with different skills and work ability, but in a local McDonalds restaurant setting, the crew is divided in 4
sections: the Drive-thru, the front counter, the back-area and the McCafe. This means that any of the staff
could be at any of these stations at a given time. Looking further down the chain of production,
McDonalds uses human resources such as freighters (to deliver other resources) and farmers (who supply
the ingredients).
McDonalds manages their human resources in a variety of ways. As stated before, the crew is
divided into the 4 sections of a standard McDonalds restaurant. McDonalds do this because its gives them

a more structured work place and therefore making it easier to control and keep track of. McDonalds also
manages their human resources through a web-based program called Promapp. This program allows
McDonalds to create and store business processes online. McDonalds uses Promapp, as it is so simple and
easy to use. Their crew also utilizes this program to keep up to date with the current processes as Promapp
updates their information live, meaning that there is never any outdated information on this program.
Entrepreneurial Resources
The entrepreneurial resources or the entrepreneurs are the individuals willing to organize the other factors
and take risks for the business. (E.g. owners, directors of firms, managers, etc.) The payment of use of
entrepreneurial resources is profit. McDonalds uses these entrepreneurs to help manage their business
along with also helping them take risks. McDonalds is a large business and to manage all of the 162 outlets
in New Zealand, McDonalds has a franchising system. 80% of these outlets are franchised. This is where
local businessmen and women get to own and operate their local McDonalds restaurant. An
entrepreneurial resource that McDonalds also uses is their national management team. This team consists
of:
Patrick Wilson- Managing Director (CEO)
Jacky Hollingsworth- Chief of Finance
Lauren Voyce- Head of HR and Talent
Katrina Gray- National Operations Manager
Brett Watson- Director of Development
Chris Brown- Director of Marketing
McDonalds manages their entrepreneurial resources through a few methods. To manage the
individuals who invest in a McDonalds franchise (Franchisee), McDonalds have an agreement and outlines
they have to follow before running the outlet. The franchisee also goes through applicant training which
last up to 10-12 months and is full-time and unpaid. The management team makes the big decisions that
affect how McDonalds operates and how they can improve that. Within an outlet, there is a structured
and hierarchical management system meaning that the outlet managers are able to keep track and control
their human resources.
Capital Resources
Capital resources or goods are man-made aids/goods that are used to produce other goods and/or
services. (E.g. Machinery, buildings, vehicles, etc.) The payment for the use of capital resources is interest.
McDonalds is a fast food business and to be in this market, McDonalds has to be efficient in doing so. To
achieve this, McDonalds use a wide range of capital goods to aid them in being efficient and help them to
produce their goods. McDonalds uses 162 outlets or the restaurants all over New Zealand to supply their
goods. This is one of their main capital resources because this allows them to supply their goods. There are
also the abattoirs (slaughterhouses) and the patty production plants used by McDonalds to source their
beef. This leads onto the transportation vehicles McDonalds uses to deliver these resources. To cook this
beef, McDonalds uses specialized two-sided hot plates that are also efficient as it produces a regular
cooked patty in 36 seconds. McDonalds also use tray-mats. (15million printed per year) Being a fast food
business, McDonalds has a Drive-Thru service that provides the customers with takeaway orders. To run
the drive-thru, McDonalds uses the inter-communication system for the ability to receive orders from the
customers. Along with this, McDonalds also uses a range of monitors to keep track of customers orders
both in the drive-thru and on the front counter. To produce other goods available on McDonalds menu,
they use capital goods such as deep fryers (for cooking French fries), ice-cream dispensers and drink
dispensers. With the addition of the McCafe, McDonalds also uses capital good such as coffee machines to
run this service. Within the restaurant itself, there are tables and chairs to provide a venue for the
customers to eat.
Since McDonalds utilizes many capital resources, they also have multiple methods of managing
these resources. Like the delivery of the natural resources through McKey distribution, the delivery
vehicles and where they go are controlled and monitored through this service also. The McDonalds outlet
managers maintain and keep track of the capital that is being not used and being used, so that they do not
waste any of the scarce resources available. On a national level, McDonalds is constantly maintaining and
upgrading to newer types of technology to improve their productivity through researching and
investigating these new types of technology. McDonalds does this because improving their productivity
means that they are able to supply more at the same or higher rate and therefore increase their profit.

Benefits to Society
There are many benefits for the NZ economy and society (Consumers, Producers, Government) of
McDonalds use of their resources.
To The Producers
McDonalds uses a large amount of natural resources, as shown in the list of natural resources
purchased in 2009. This means that the producers of these resources will have a source to
sell/supply to (as 95% of the product is NZ sourced). This is beneficial as it provides these
producers a sales opportunity. For example, the beef used by McDonalds is 100% NZ beef
sourced from NZ farmers.
The investigation of new and more efficient technology for McDonalds could also benefit other
producers in the fast food industry. This is beneficial because the other producers could use this
newer, more efficient technology. (E.g. this research could possibly lead to a new instant food
cooker that is more efficient and could be used by other businesses?)
McDonalds spends a large amount of money on natural resources. (E.g. $145 million was spent
on NZ suppliers in 2010) This is beneficial to producers because with these purchases from
McDonalds, their profits increase. This enables the producers to possibly expand, which could
also lead to a further profit increase.
To The Consumers
McDonalds uses a large amount of human resources (over 10,000 employees in NZ) and this
amount is constantly increasing due the McDonalds expansion. This is beneficial to consumers
because this use of human resources provides employment opportunities for the general public.
With the possibly of expansion of other producers due to McDonalds purchasing of resources,
this will also provide employment for the consumers which is beneficial.
McDonalds has a franchising system where local businessmen and women get to own and
operate a McDonalds restaurant. This is beneficial to consumers as it gives a business opportunity
to the local communities.
McDonalds utilizes bulk buying and due to economies of scale, the costs are less and therefore
keeping the price down for consumers which is also a benefit.
To The Government
Due to the employment opportunities created through McDonalds use of human resources, the
employment rate will go down. This is beneficial to the government because they wont have to
give out as much unemployment benefits, and with this money left over, it allows the government
to spend it in more important areas.
The increase in employment because of McDonalds use of human resources means that the
consumers that are employed now earn or earn more income. This is beneficial to the
government, as these consumers employed by McDonalds now have to pay income tax, which
provides the government with more money to spend on improving New Zealand.
McDonalds purchases large amount of natural resources such as the ingredients in the list on
page 1 and in doing so they also indirectly pay tax to the government. (The tax is paid through the
supplier that McDonalds purchased the goods from.) This is beneficial to the government as it
provides them with extra money to spend on further improving and developing the country.

B. Goals of McDonalds Restaurants (NZ)

All businesses have goals. The reason for this is because the goals are what drives them to do what they
do. Goals may vary from business to business, but the most common goal for a business is Profit
Maximization. (Making as much revenue over the cost as possible.) All the goals can be divided into 2
categories, commercial and non-commercial goals. McDonalds is a very large fast-food business that has a
range of goals and values to back these goals up. In this report I will identify these goals and the values
McDonalds NZ claim to have that drives these goals.
Commercial Goals
Profit Maximization
-This goal of profit maximization is when a firm or business aims to create as much excess over
costs as possible. In other words they want to make as much profit (revenue-cost) as possible.
McDonalds have a profit maximization goal as most businesses do. The value they claim is:
We grow our business profitably.
Our stakeholders support our ability to serve our customers. In return, we work to provide
sustained, profitable growth for all members of our system and our investors. (2 in
bibliography)
This quote shows that this is the value that drives McDonalds NZ to profit maximize.
Business Expansion
-McDonalds NZ have a goal of business expansion. This is when a business grows through
increasing the number of stores. This is a McDonalds goal as the value they claim is:
We strive continually to improve.
We consider ourselves a learning organization that is green and growing which anticipates and
responds to changing customer, employee, system and community needs through constant
evolution and innovation. (2)
This quote infers that McDonalds is continually growing. In other words, they want to constantly
expand.
Sales Maximization
- This goal of sales maximization is when a business wants to gain as much sales as possible to
brand them and gain market share. This is a goal of McDonalds as McDonalds want to profit
maximize and a way of doing so is through sales maximization (to gain market share and therefore
increasing profit). The quote about growing their business profitably is inferring that they also
want to sales maximizes.
Non-commercial Goals
Environmental Goals
-McDonalds have environmental goals that aim to improve and help our environment.
McDonalds have these environmental goals as stated on the website as a value:
We strive continually to improve.
We consider ourselves a learning organization that is green and growing (2)
This stated value shows that McDonalds wants to expand while also trying to help the
environment.
Community Goals
-McDonalds have some community goals such as setting up the Ronald McDonalds house
charities and supporting the Variety childrens charity. McDonalds have community goals as they
value their consumer base as stated in:
We strive continually to improve.
... Anticipates and responds to changing customer, employee, system and community needs
through constant evolution and innovation. (2)
This statement displays McDonalds involvement in the community through constant evolution
and innovation.
Providing a good/service
-Businesses may have a goal of supply a good or service to the market. McDonalds definitely have
a goal of providing a good and service as the value stated is:
The wellbeing of our customer is our top priority... - (3)
Also, McDonalds motto is: Quality, Service, Cleanliness and Value (QSC&V) (2)
This shows that McDonalds value their customers and want to provide their goods and services.

C. Price and Non-Price Marketing Strategies

Price and non-price strategies are utilized to gain sales and market share. Price competitions are
strategies that involve reducing the price to therefore increase sales and market share. Non-price
competition is when uses a variety of strategies that do not change the price. These strategies can be
separated into two categories, product differentiation (making the product appear different) and product
variation (Actually changing the product). In this report I will present and explain the price and non-price
strategies used by McDonalds NZ to increase their sales and market share. There are consequences to the
New Zealand society of the choices of price and non-price strategies used by McDonalds. I will also explain
these consequences and evaluate the decisions made by McDonalds NZ over the last 5-10 years that
correspond with the goals highlighted in Part B.
Price Marketing Strategies
In many businesses, price competition is a key strategy, especially in the fast-food industry. There are a
variety of strategies to attract customers by altering the price. Some examples of this are discounts, loss
leaders, buy one get one free, interest-free terms, etc. Businesses use these methods to increase their
sales and profit. The reason being is because they have fixed costs (resources that need to be used and
therefore have to be paid) such as the land and buildings. The higher their total sales, the higher their
profit and for many businesses, profit maximization is one of their main goals. McDonalds NZ use the
following price marketing strategies:
Combo Meals
McDonalds have a variety of meals available for their customers. A combo is a combination of goods that
complement each other and have their total price reduced. For example, a burger, french fries and a drink
would cost $5.50 rather than the total cost individually of $7.50 (prices are just examples). This is a price
strategy as McDonalds is reducing the price of their goods collectively.
This is where the question would you like fries with that? originated.
The consumers will see these combos as value for their money as they
are getting larger quantity for less than want it would have been and
therefore achieve a higher level of satisfaction. This means that sales
will increase due to more customers purchasing these combos (because
of the value for their money) and this results also in an increase in
market share.
A Loss Leader
A loss leader is when a business decides to lower the price of a good at very low prices and/or below costs
for a short period of time to attract more customers, in hope that they will also purchase their other
goods. While the business makes a loss of that good, their sales will have increased due to the large
amounts of customers in the store also purchasing other goods as well. McDonalds occasionally holds a
loss leader to do exactly this. For example, McDonalds had a Big Mac special at the price of $3, which
was a very low price at the time. This was a success as it attracted more customers that also purchased
other goods as well. This resulted in increased sales and market share.
Discounts
A discount is a strategy used by businesses that involves a reduction in the price of their
selected goods. This is to attract more customers as they see these discounts as a
cheap deal, or value for their money. The purpose of this is to increase the sales through
attracting more customers by reducing the price. McDonalds uses this discount strategy
as they have menus that have reduced prices on goods. An example is the addition of
the loose change menu where there are 7 goods that are at $2.50 or less. These 7
goods are usually higher in price, but McDonalds have reduced the price of these goods
to amounts that are both easy to get (because it is coin value) and cheap. This is
increases their sales as the customers see this loose change menu as a cheap deal and
therefore they purchase more. Another Example of this is the use of coupons by
McDonalds. They have a range of coupons for their customers that are from a variety of
providers. Coupons also give the customers reductions in price, but also encourage
them to go back to McDonalds again because the coupons have expiry dates.

Non-price Marketing Strategies

Non-price competition involves other strategies that do not change the price of the goods/services to
attract customers or appeal to other market segments. (A market segment is a group of individuals within
the market that have special or different needs/wants.) Non-price competition can be done through
Product Differentiation (making the product appear different) and Product Variation (actual changes to the
product.) Some examples of product differentiation are advertising, branding, sponsorship, location, etc.
The purpose of these methods is to increase sales and market share through gaining public awareness and
perception. McDonalds NZ utilizes many non-price strategies to achieve this. McDonalds uses the
following Non-price strategies:
Product Differentiation
Advertising
McDonalds uses a variety of advertising techniques. These techniques are aimed at both branding the
McDonalds image and displaying the differences or unique qualities their products have. The purpose of
this is to increase the public awareness and to also appeal to other market segments to increase sales and
market share. By increasing public perception, the sales will increase, as more consumers will know of
McDonalds. By appealing to other market segments, McDonalds have expanded their consumer base and
therefore increase their sales. McDonalds have used this non-price strategy as they already have many
advertising campaigns on TV, on the Internet and an example of appealing to other market segments is the
Weight-Watchers approved meals available at McDonalds. These meals aim to attract the market segment
of more health conscious consumers and in doing so, increasing McDonalds sales and market share.
McDonalds utilize advertising because it is an effective way of making known their image and products.
Service
McDonalds is constantly improving and changing their services
to attract more customers and in return, increase their sales.
McDonalds has many services available to their customers and
all of these services are aimed at attracting more customers and
appealing to other market segments. To attract more
customers, McDonalds have services such as catering for
childrens birthday parties, the addition of Free Wi-Fi in
restaurants, staying open for longer, childrens playground, the
drive-thru, and the improved dining conditions. By catering for
childrens birthday parties and having a childrens playground,
McDonalds is appealing to the market segment of
parents/caregivers with young children. In doing so, they are
achieving more sales and gaining a larger consumer base,
because of the parents/caregivers purchasing the service while
also purchasing McDonalds other goods. The addition of Free
Wi-Fi in McDonalds restaurants attracts many consumers and
also appeals to the market segment of people who use the
Internet for a variety of reasons. The consumers, who want to
use the Internet, go to McDonalds to do this and while being
there may also purchase other goods as well. The drive-thru
allows customers to quickly get their takeaway orders with the
convenience of not having to get out of their car. This service
allows McDonalds to make more sales while also attracting more customers. McDonalds utilizes their
many services because it allows them to increase their sales and appeal to more market segments to
therefore increase market share.

 Location
To McDonalds, the location of their restaurants is vital. This is a strategy that involves situating their
outlets in convenient places alongside similar businesses to create competition and attract customers their
customers to increase sales and market share. For example, McDonalds usually places their restaurants
near other fast-food restaurants such as Burger King or KFC. This is to provide convenience for the
consumers of this market (fast food takeaways) and to also possibly attract consumers of Burger King or
KFC to increase their sales and gain market share. McDonalds uses this strategy because it provides
competition and could possibly increase their market share by taking business off other fast food takeaway
firms.
Sponsorship
Sponsorship is when a firm supports an activity through donation. McDonalds utilizes sponsorship to get
involved with the community. This is to improve public perception and gain public awareness of
McDonalds image and brand. In doing so, McDonalds image/brand will be known, therefore attracting
more customers to increase sale and market share. McDonalds sponsors a variety of activities, some of
which include supporting junior sports teams, Variety (childrens charity), the summer and winter Olympics
and the Ronald McDonalds house charity. McDonalds uses this non-price strategy because through these
sponsorships, McDonalds have and will continue to greatly improve their public perception and create
more public awareness.
Promotions
Promotions involve making known a product,
organization, or venture to increase sales or public
awareness. McDonalds uses this strategy of
promotions through a variety of ways. McDonalds
occasionally holds limited time specials of a certain
product. The consumers see this as an opportunity
to buy and therefore, increasing the sales.
McDonalds also promote ventures to improve
public perception such as the use of free ranged eggs
in Christchurch and Dunedin restaurants. By
improving public perception McDonalds will attract
more consumers and in return, increase their sales.
Branding
Branding is the marketing strategy of creating a name, symbol or
design that identifies and differentiates a product from other
products. This means that branding is a way to make known a
businesss product and how it differs from other products. To
McDonalds, branding is one of their key strategies to increase
their sales and market share. This is because to brand themselves
and their image, McDonalds uses many other strategies such as
advertising, sponsorship, etc. This is so the image and brand of
McDonalds is well known. If the consumers of fast food
takeaways know the brand of McDonalds, then they will go to
McDonalds rather than other fast food businesses. This has been
TM
done effectively as McDonalds image, The Golden Arches , is
more recognized than the Christian Cross.
Product Variation
Product variation is when actual changes are made to the product itself. McDonalds uses this non-price
strategy to increase their sales, market share and also appeal to different market segments. McDonalds
have included new and different products to try to appeal to different tastes, preferences, income brackets
and health conscious consumers. Some of these include:

The McCafe/M selections range: - With the addition of the McCafe and M selections range,
McDonalds have create a menu that appeals a different market segment of people with higher

income brackets and of age. McDonalds added these menus to gain a larger consumer base,
which results in increasing their sales and market share.
The Breakfast menu: - McDonalds have created a menu for breakfast. This is to appeal to the
market segment of people who want a fast way of having breakfast. McDonalds introduced this
menu because they wanted to attract more consumers and therefore increase their sales.
Weight watchers approved meals: - Alongside the other healthy alternatives, McDonalds have
created a weight watchers approved menu that tries to appeal to the market segment of health
conscious consumers. Again, this is aimed at trying to achieve a larger consumer base to increase
sales and market share.
Upsizing: - When a consumer is purchasing a combo they are giving the option to upgrade the
size of their drinks and fries. This is called upsizing. McDonalds have included this to attract those
consumers who want more in the their meals and in return, increases the sales and market share.

Consequences to Society of Price and Non-price strategies

McDonalds use a range of price and non-price marketing strategies that can have an effect on the New
Zealand society (Consumers, Producers, Government). These price and non-price strategies are engineered
to increase sales/market share to increase their revenue and therefore profit. This is so McDonalds meets
their commercial goals such as profit and sales maximization. McDonalds non-commercial goals also set
out to improve public perception and awareness through their community service/involvement in hope
that it will attract more customers to purchase their goods. The following are some consequences (good
and bad) to the NZ society of McDonalds use of these marketing strategies:
To Producers:
McDonalds is aiming to gain Market Share and increase sales by providing price and non-price
competition. In doing so, other producers in the fast food takeaway industry may lose business
and potentially close down. This may be because of the tough competition McDonalds is giving
them through their effective branding techniques and taking away market share of these
businesses.
By increasing their profits through price and non-price strategies, McDonalds have allowed for
further expansion and in doing so, more money is being spent on staff (wages). The staff can

benefit the other producers, as they are able to spend their new income. Producers of machinery
and repairing machinery in the fast-food industry will also benefit, as McDonalds will have need
of them in the process of expansion.
McDonalds utilizes many non-price strategies such as advertising frequently. By doing this, they
have need for more advertisement producers. This is beneficial as it provides these producers
with more sales opportunities and therefore increasing the advertisement producers profit.
By McDonalds reducing the price of their goods as part of their price competition strategies, they
are at risk of starting a price war with other producers (by undercutting a competitors price, that
firm may react by using the same tactics therefore starting this price war). This is definitely a
negative as both McDonalds and the other producers will suffer a loss and the likely outcome of
this is that the market share of both firms will remain the same and profits may be reduced.

To The Government:
By McDonalds taking market share and sales off of other fast food businesses through the use of
their price and non-price strategies such as branding, advertising, discounts, etc. could force these
producers out of business. The result of this is the staff of these businesses will lose their jobs,
adding to the unemployment rate in New Zealand. This is a negative for the government; as they
have to pay the unemployment benefit to these staff and in doing so, lose money that could have
potentially been put into something more important.
With McDonalds being more successful through their use of price and non-price strategies,
McDonalds receive increased revenue. A result of this is that McDonalds is indirectly increasing
the amount of GST (Goods and Services Tax) the Government receives. Since McDonalds are
attracting more customers through strategies such as advertising and providing services, there are
more potential customers that will pay the GST on McDonalds goods. This is beneficial for the
government as this means they will have more money to spend on improving New Zealand.
To Consumers:
For some segments of the market, such as the regular consumers of fast food takeaways, there
could be people who are eating more fast food than they should or they could be making poor
food choices. This is shown through the use of the non-price strategies such as advertising and
promotions because these strategies are aimed at attracting more customers and making their
products appear different when they are actually not. This could result in people regularly
consuming McDonalds fast food, which is bad as it can be unhealthy.
Childhood obesity is a possibility due to some prices strategies that make it easier for the younger
consumers (children/students) to get McDonalds goods. For example, the addition of the loose
change menu or value picks menu allows students/children to purchase fast food easier as they
can afford these products. This could lead into younger consumers eating fast food regularly as it
is easier for them to get which is bad as it could result in an unhealthy diet and cause problems for
them later on in their lives.
Through the use of price competition, McDonalds have made their products cheaper for their
consumers. This is a benefit as the consumers are able to save their money that is not being
spent. This is displayed in the combo meals price strategy. The consumers see this as value for
their money as they are getting more for less.
The community could benefit through McDonalds use of non-price strategies such as
sponsorship. McDonalds regularly sponsors local activities and events. For example, McDonalds
sponsor the junior sports teams to improve public perception and awareness. In doing so,
McDonalds gets more sales and the junior sports teams receive more sponsorship.
Through the use of Product Variation, the consumers of fast food may get a wider range of
products to choose from. This is a benefit for consumers as having a wider range of products gives
them a better choice of what they are willing and able to get.
The purpose of all the price and non-price strategies is to increase sales, market share and then
ultimately profit. By using these strategies McDonalds have increase their profits and this means
that a larger dividend is given out to the McDonalds shareholders, which is beneficial.

Evaluation of decisions that correspond with goals

The decisions made by McDonalds NZ over the last 5-10 are related to the commercial and noncommercial goals they have. The following are evaluations of these decisions based on the goals:
Profit Maximization
Over the past 5-10 years, McDonalds NZ have made a range of decisions that have been aimed at their
goal of profit maximization. Some of the decisions made were through the use of non-price and price
competition. For example, McDonalds have made the decision to add a loose change menu to attract
other market segments and in doing so, have increased their sales. They have also decided to do an
advertising campaign on this loose change menu, as seen on TV and on various websites. By increasing
their sales, through the use of price and non-price strategies, McDonalds is maximizing profit and
therefore they are meeting their goal of profit maximization.
Sales Maximization
McDonalds goal of sales maximization is to sell as much as possible to increase their market share. This
has been done as McDonalds have decided to use a variety of price and non-price strategies that are
aimed at increasing sales and market share. Some of these decisions include going into partnership with
Weight Watchers to attract different market segments (and therefore sell more) and adding in the healthy
alternatives such as the Salad Plus menu. These decisions made by McDonalds NZ meet their goal of sales
maximization because of how these decisions have increased their sales.
Providing a Good or Service
McDonalds from the start have set out to provide their customers with quality goods and services. (As
stated in company motto.) Over the past 5-10 years, McDonalds have decided to add a variety of goods
and services. These decisions include the addition of the Angus Beef burger, launching the Made to Order
cooking platform to provide freshly prepared food for their consumers and the addition of the free Wi-Fi
service within restaurants. These decisions do match McDonalds goal of providing a good or service as
these decisions all have assisted McDonalds in giving their consumers a range of goods and services.
Community Goals
McDonalds have made decision in the past 5-10 years that have been involved with the local communities
of New Zealand. McDonalds have community goals that aim to get involved with local communities and
support them. The decisions made were aimed at doing this and they did. Some of the decisions were the
sponsorship of junior sports teams, the addition of Wi-Fi allowing for community use and supporting the
Variety childrens charity. These decisions have made McDonalds community involvement greater and
therefore match this goal.
Environmental Goals
Over the last 5-10 years, McDonalds have made decisions that affect the environment. McDonalds have
environmental goals that aim to improve and help our environment. The decisions made were supporting
the cleanup NZ week held every September and supporting the use of the 3Rs (Reduce, Re-use, Recycle).
These decisions made by McDonalds match their environmental goals as they do improve and help our
environment.

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The Number 1 goal of McDonalds

Restaurants (NZ)
I believe that the number 1 goal of McDonalds (NZ) is:

Profit Maximization
I believe that McDonalds number 1 goal is profit maximization because of multiple reasons.
McDonalds utilizes many price and non-price strategies that are aimed at increase sales and market share.
In doing so, McDonalds ultimately increase profits too. This is no coincidence, McDonalds have increased
their profits through the use of price and non-price strategies as that want to maximize these profits. All of
McDonalds goals are closely linked to either increasing profit or maximizing it. The non-commercial goals
such as helping the environment and community involvement are aimed at improving public perception
and therefore attract more people to purchase their goods. Commercial goals such as business expansion
also link to profit maximization as expanding could possibly mean an increase in revenue as a result of
expanding. Increased revenue means increase profits. These are the reasons why I believe that McDonalds
(NZ) number 1 goal is profit maximization, as all of the goals are closely linked and the marketing strategies
McDonalds uses are all aimed at maximizing their profit.

Conclusion
Throughout this report, I have found that McDonalds (NZ) uses and manages their resources
effectively and efficiently to avoid wastage of these scarce resources. McDonalds use of these resources
has many benefits to New Zealands society. The major benefits I have found are the large sum of money
McDonalds spends on NZ producers, the employment opportunities McDonalds gives to the public and
the franchising agreement allows for local businessmen and women to own and operate McDonalds
restaurants. McDonalds, like every business, have goals and values to drive these goals. I found that most
of these goals are closely linked to what I believe is McDonalds number 1 goal, which is profit
maximization. McDonalds utilize many price and non-price strategies to increase their sales and market
share. I found that this ultimately leads to increasing profits. McDonalds use of these strategies has
consequences that could have possibly affected New Zealands society. I found that there is a balance of
good and bad consequences to the society of NZ. In the end, McDonalds are not only feeding their
consumers, they are feeding the producers and the government of New Zealand through their production
and sales decisions.

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Bibliography
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2.
3.
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5.
6.
7.

http://www.promapp.com/case-studies/mcdonalds/
http://mcdonalds.co.nz/careers/about-us/our-values
Resource Booklet
http://mcdonalds.co.nz/about-us/corporate-responsibility
http://mcdonalds.co.nz/
http://mcdonalds.co.nz/our-food/menu/#/
http://www.mcdonaldsparties.co.nz/birthdayparty_nz/Party
Package.jsp

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