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ACKNOWLEGEMENT

I also take this opportunity to express a deep sense of gratitude to Company Name,
Designation, Company Name, for his/her cordial support, valuable information and
guidance, which helped me in completing this task through various stages.

EXECUTIVE SUMMARY

Our executive compensation program supports our long-term business plan, the
Plan to Win. Our Plan to Win focuses on five key drivers of exceptional restaurant
experiences people, products, place, price and promotion which in turn drive
sales and profitability and support our growth strategy of being better, not just
bigger. We are also committed to controlling costs and managing capital in a
disciplined manner.
The key objectives of our executive compensation program promote our execution
of the Plan to Win. Those key objectives are: to motivate our executives to increase
profitability and shareholder returns; to pay compensation that varies based on
performance; and to compete effectively for and retain managerial talent.
A significant proportion of our executive compensation is performance-based. We
use a mix of different performance-based elements of compensation that reward
different aspects of both Company and individual performance. Our annual bonus
plan, TIP, pays out awards based primarily on annual increases in operating income.
Our long-term cash incentive plan, CPUP, rewards a combination of long-term
operating income growth, disciplined capital location and total returns to
McDonalds hare holders. Stock options and RSUs connect the amount of
compensation our executives earn to the performance of McDonalds stock. RSUs
for our executives also include a performance-based vesting condition that rewards
growth in EPS.
Our executive compensation program has been successful in focusing the named
executive officers on the Plan to Win and helping us achieve positive business
results for the last five years. In 2008, despite a difficult economy, McDonalds
delivered strong performance and positive returns for shareholders. For 2008, the
Companys global comparable sales increased 6.9%. Our operating income
increased to $6.4 billion. We returned $5.8 billion to our shareholders through share
repurchases and dividends paid, and our total shareholder return in 2008 was
8.55%. Our 2008 TSR is ranked 15th among the companies in the S&P 500. Our
executives compensation in 2008 reflects the Companys strong performance. Our
business performance exceeded expectations, and, accordingly, payouts to the
executives under our performance-based compensation plans were above target
levels.

INTRODUCTION OF ORGANIZATION

McDonalds Corporation is the worlds number 1 fast food chain, Richard and Maurice
McDonald started this business with a restaurant in San Bernardino California in
1940. These days McDonalds serve more than 56 million customers every day.
There are more than 30,000 restaurants operated by McDonalds worldwide in which
more than 80% are operated as franchise and less than 20% are owned by
company. McDonalds main selling products are hamburgers, cheeseburgers, double
cheeseburgers, big Mac burgers, quarter pond burgers, tasty burgers, flit-o-fish
burgers, salad and fruits.

BRIEF HISTORY

McDonalds was one of the international food chains to operate in Pakistan. The
world renowned fast food Burger Giant came to Pakistan in 1998 and now has
around 27 dine in, takeaway and delivery outlets in all major cities i.e.: Karachi,
Lahore, Islamabad, Multan, Peshawar etc.
McDonalds is owned by the Lakson Group of Companies. McDonalds F-9 Park is one
of the 27 outlets. Although numerous local vendors have tried to copy the original
McDonalds concept. McDonalds Pakistan gives tough competition to all and is still
one of the best Fast Food Restaurants in Pakistan. McDonalds has been quite
innovative in Pakistan; to its credit it has introduced the most mouthwatering
burgers and the most deliciously yummy nuggets and ice creams such as
McChicken Burger, Chicken McNuggets, McFries, McChicken Wings, Spicy McCrispy
Chicken Deluxe, etc. McDonalds outlets retain the family-style enjoyment concept
and offer a casual dining environment. Complimented with other mouth-watering
menu items like Sandwiches, Desserts and Beverages.
Off late the 24 hour delivery of McDonalds Menu Products has taken over the
traditional dine-in format. All in all the McDonalds Slogan Im Loving It truly is
correct and as affordable prices and local popularity make it a hot spot for company
lunches and birthday dinners. McDonalds is the largest and best known global food
services retailer with more than 30,000 restaurants in 121 countries. Its outstanding
brand recognition, experienced management, high quality food, site development
expertise, advanced operational systems and unique global infrastructure ensure a
position that enables us to capitalize on global opportunities

MISSION/VISION STATEMENT
McDonald's brand mission is to be our customers' favorite place and way to eat and
drink. Our worldwide operations are aligned around a global strategy called the Plan
to Win, which center on an exceptional customer experience People, Products,
Place, Price and Promotion. We are committed to continuously improving our
operations and enhancing our customers' experience.

FOUR FUNCTIONS OF MANAGEMENT


Planning
Defining goals, establishing strategies to achieve goals, developing plans to
Integrate and coordinate activities.

Organizing
Arranging and structuring work to accomplish organizational goals.

Leading
Work with a group of members to achieve goals.

Controlling
Monitoring, comparing, and correcting work
Actual performance must be compared with the set goals

LEVELS OF MANAGEMENT

Administrative or Top Level of Management


Executive or Middle Level of Management
Supervisory or Lower Level of Management

CULTURE OF AN ORGANIZATION
When analyzing an organizations leadership and teamwork skills, it is useful to first
analyze the organizations work culture and how this culture is maintained. The
work culture of McDonalds seems highly dependent upon the particular line
manager in charge at any given point in time. One would imagine that the manager
would almost always use position power and would use a telling style of leadership
since the typical employee is young or inexperienced. Indeed, some managers were
observed as running the operations in a machine like manner, especially during
peak business periods. However, in the majority of cases the managers were
relatively relaxed and sometimes were indistinguishable from the other employees.
One manager in particular used a selling approach, which indicates a higher
readiness level of her team (Daft, 2008, p. 73). She did not simply give orders, but
accepted feedback and alternatives to her decisions. While it was obvious she was
the manager, her team was obviously in the later stages of development and was
comfortable outside of their predefined roles.
In general, the managers did not try to put any strong vertical barriers between
themselves and their employees. Managers usually seemed to display real concern
and interest in the emotions and wellbeing of their employees, which was not
expected in this environment. For example, one manager was observed asking an
employee cleaning the floors about her weekend and her kids. There seems to be
legitimate efforts in order to motivate employees even at the line worker level.
Herzbergs two-factor theory explains that good working conditions only go so far,
and that employees require higher level fulfillment such as motivation and
recognition in order to be satisfied with their position (Daft, 2008, p. 231). Even in a
low- skill position, low turnover is desired. In addition, happy employees lead to
happy customers.

ANALYZE ITS ENVIORMENT


McDonalds is performing very well internally because of global standardization
leading to increased effectiveness. This is a core competency of McDonalds
internal environment. At the same time McDonalds integrates local differences.
They are very committed to diversity and this is furthermore one of their greatest
internal qualities. As a globalized company they have managed to maintain their
focus on adapting to the local societies by hiring local people to the company. They
embrace this diversity through processes and policies and it even has its own flag
on the page our company. The openness towards diversity, together with
standardization, creates internal values of trust and dependability in a safe
environment.
In a survey it showed that 80 per cent of the employees of McDonalds were
satisfied with their job:

Communication resources
Due to the magnitude of McDonalds corporation they have all communication
resources available. It is important, however, that they have a clear focus in their
internal communication and provide guidelines on how the franchise restaurants
should be managed. We believe that McDonalds have done this well since they
have been able to incorporate a strong standardization throughout their
restaurants.
A way to create effective and homogeneous communication is done by providing
each restaurant with PC access in crew rooms where the employees can be updated
on internal activities. This is a proactive method with the purpose of constantly keep
the staff informed and updated.
How a company approaches its PR has a big impact on how PR is performed
throughout the organization. The more attention a company gives its PR, the more
responsibility the company tends to rely on PR. If the PR activities are not seen as
central issues, the PR personnel are often placed in the hierarchy of the
organization as a managing support function. If a company puts much focus onto its
PR, it is often explicitly expressed by giving the PR personnel their own managing
function highly placed in hierarchy of the organization. By having the PR activities
individually integrated alongside the high managing levels, it is easier to maintain a
homogenous communication throughout the organization.

External environment
Based on your earlier analysis we can conclude that McDonalds is very adaptable
to change in the external environment and ready to implement them in their
internal environment. We see this in the way they adapt to societal trends.
McDonalds major competition on the US market is Burger King, Taco Bell, Pizza Hut,
Wendy, Arbys, and Kentucky Fried Chicken.
On the Danish market the major competition can be narrowed down to Burger King,
Sunset, local shawarma restaurants, and other small cafs.
Despite the competition McDonalds is still the leading fast food restaurant in both
markets. To hold this position they have to be constantly aware of these
competitors, soon-to-be competitors and other trends in the external environment
since the competition is very intense.
The increased awareness of the unhealthy side effects of eating fast food has lead
the way for many small takeout places. These places provide healthier alternatives
and are increasingly becoming a more dangerous opposition.
Q: Is anything happening in the environment that can limit the
effectiveness of the public relations program?

Public perception
McDonalds is a worldwide and very well-known company. They have very high
brand recognition due to the fact of their worldwide representation. McDonalds has
throughout the years become the worlds largest quick-service restaurant
organization and simultaneously changed not only the eating habits of the
Americans but the eating habits of the entire world. The companys growth can be
described as phenomenal and they have managed to increase sales and earnings
every quarter since it went public in 1965. By 1991, 37 per cent of sales came from
restaurants outside the United States.
To be a worldwide and world known company is not easy especially in this industry.
So the reputation of McDonalds is very turbulent.
It is relevant to look at the reputation from two perspectives:

The industry and the emloyees


In 2003 the term McJob was registered as a real term for a low paid job that
requires little skill and provides little oppertunity for advancement. This was

ofcource not a reference that McDonalds was satisfied with. But researched also
showed that the public perception of a job at McDonalds only scores 30-40%. On the
other hand, the research showed that McDonalds as a working placed scored 80%
among it employees.
The reputation in the industry is also difficult, due to the fact that McDonalds often
is made the scapegoat of obesity and other unhealthy tendencies in society.
Especially after the premiere of supersize me in 2004 McDonalds started to
change, in order to improve the the public perception of McD. Supersize meals was
cancelled, and McD started ad extensive CSR strategy where the promised e.g. only
to buy coffee from farmers who are certified by the Rainforest Alliance.

ORGANIZATION STAKEHOLDERS
McDonalds Stakeholders
McDonalds has many franchises around the world. The first franchise was opened in
1967 in Canada over the years it has spread all around the world and there are now
more than 1000 franchises around the globe

McDonalds aims
McDonalds aims are to provide a fast, friendly service but they also like to make
sure their customers are getting good value for money on the food as well.

The Stakeholders
Employee
One stakeholder of McDonalds would be its employees. The employees are internal
stakeholders as they work inside the company and have an interest and influence
the way it is run. So anybody that works for McDonalds is a stakeholder. This could
be from a part time team member or somebody from the head department. It
doesnt matter as long as they work for the company. The following link shows an
article about the internal stakeholders of McDonalds.
The news article explains how it wants both internal and external stakeholders to
meet and ask questions about the company rather than McDonalds answering
peoples questions through the social network. employees often have staff meetings
with managers where they can talk about what they think is going well or not so
well this is why employees are internal stakeholders as if they think something
needs to be changed they can influence this change to happen.

Customers
Customers are also stakeholders they are slightly different from employee
stakeholders though, as customers are external stakeholders this is because they
dont work for the franchises but they still buy products from them so they have an
interest in McDonalds. This means that every customer who buys from any
McDonalds franchise is a stakeholder. Even if they only use McDonalds occasionally.
customers he interests in McDonalds for many different reasons, one might be that
they a promotional meal has come out McDonalds are always looking for feedback
on their products so if they get this from their customers they are more likely to
keep the meal on their permanent menu but if McDonalds didnt get any feedback
or the sales was low on the certain promotion they are more than likely to scrap it
from the menu and not offer it again.
Suppliers
Suppliers are also internal stakeholders as they also work with McDonalds.
McDonalds use many suppliers for the things in their store for example they get the
food from one supplier and then the drinks from another. Suppliers are a really
important part of the way McDonalds runs if McDonalds didnt have suppliers there
would be nothing for them to sell. Suppliers also have an interest in McDonalds to
be one of their stakeholders. The suppliers interests would be about the orders
McDonalds make because the more they do make the more money they are going
to be making for the company. McDonalds also like to make sure the supplier they
muse is trust worthy as suppliers play a huge part in all the chains of McDonalds as
they wouldnt have any food to sell if a supplier failed to deliver when they needed
it.
The Government
People dont normally expect the government to be involved with Franchises like
McDonalds. But the government is actually external stakeholder as they also hold
an interest and influence McDonalds. The government is interested in McDonalds
because McDonalds offer lots of opportunities for the unemployed to get a job as
there is many franchises are the world because McDonalds is a global company. The
government also passes new laws that could affect the way McDonalds is run an
example of this would have been when everybody got banned from smoking in
indoor public places.
The government made every company from a corner shop to a large global business
stop people smocking indoors a public space as it had become a law if anybody was
smoking where they wasnt meant to be the business could risk enormous
consequences. The government also has an interest in McDonalds when they want
to build a new franchise. They have to get planning permission first before they can
start building it this is another way the government plays a part as they have to
decide whether they are going to allow or deny this.

Trade unions
Trade unions are external stakeholders as they work outside the business. Trade
unions are people who look after the rights of the workers on how they work, get
paid and the conditions they work in. they also access the risk of the employee
getting hurt at the work place due to poor conditions. Employees have to pay to be
part of the union but it is only a small amount out of your wage or salaries. they
have an interest in McDonalds as some of their staff from each franchise may be
part of their unions if they arent the union pay advertise and explaining what they
do and why a staff member should become part of their group to help make other
peoples working conditions better.
Communities
Communities are also external stakeholders. Communities are widely involved with
the businesses like McDonalds as they are interested when stores are planning to
build near them they are also interested in the jobs that the store can offer.
McDonalds rely on the community a lot as they wouldnt have any business if they
didnt keep their customers happy by offering great services.

CORPORATE SOCIAL RESPONSIBILITY OF ORGANIZATION


CODES OF ETHICS IN THE ORGANIZATION
Ethics Standards of Business Conduct for Employees McDonald's is committed to
conducting business ethically and in compliance with the letter and spirit of the law.
This commitment is reflected in McDonald's Values. Inherent in each value is our
commitment to be ethical, truthful and dependable and this is reflected through our
Standards of Business Conduct which serves as a guide to making good decisions
and conducting business ethically.
Each year McDonald's employees certify that they have read and will abide by our
Standards of Business Conduct. Employees also complete regular training on the
Standards, anti-bribery laws, and various other laws, regulations and companyspecific policies. In addition, McDonald's and its employees in all countries must
comply with the U.S. Foreign Corrupt Practices Act (FCPA). To ensure compliance,
McDonald's has adopted a Global Anti-Corruption Policy, which contains guidance
for employees on all applicable anti-bribery laws, including the FCPA. In general, the
FCPA prohibits improper payments to government officials for the purpose of
obtaining or keeping business or improperly influencing government action. The
anti-bribery prohibition applies to corrupt payments made directly or indirectly,
through a third party. In addition to the FCPA, the Global Anti-Corruption Policy

requires compliance with anti-bribery laws in other parts of the world, such as the
UK Bribery Act, which have international jurisdiction and prohibit the giving of bribes
to any government official as well as private entities and individuals. Employees in
McDonald's international offices complete an annual certification of compliance with
their local version of the Standards and complete annual anti-bribery training.
McDonald's Global Compliance Office monitors and enforces the company's policies
prohibiting money laundering, bribery and doing business with terrorist groups, as
directed by the US Patriot Act, the FCPA and Executive Order 13224.

DECISION MAKING IN THE ORGANIZATION


Decision making process may include gathering information, setting common goals,
uncovering management alternatives to choose a certain plan of action and
executing the plan. With this process, the management of organization will be able
to identify the most appropriate strategy to be used in order to make the company
be more competitive. In addition, decision making process is also noted as a central
factor in having successful strategic management because it enables the company
to have an effective solution for a certain problem or issue.
However, even if decision making are said to be the central factor of having
strategic management, the process of making decisions is also considered as a
difficult task to handle. Most of the time, decision makers of a company is having
difficulties in deciding the solutions to a certain problem for a fear of not getting the
expected results.
Problem Definition
McDonalds has a rich history that started out in 1954. The company was put to the
spotlight by Ray Kroc. Throughout the years, marketing ideas have poured through

and helped the company become one of the most renowned fast food brands
globally. The trademark design for the fast food was carefully studied and it came
with a happy clown character known as Ronald MacDonald (McDonald, 2007). The
Big Mac and the Egg Muffin have been some of McDonalds most innovative
products. In terms of marketing, the happy meal approach was also a creative as it
entices children to eat at MacDonalds because of the toys they can get. Today,
McDonalds is also on the Internet bandwagon, providing information to people all
over the world with a click of a mouse (McDonalds Corporation, 2007).
McDonalds is among the most popular fast food brands in the world. Started out in
the fifties, McDonalds now boasts of operating, franchising, and serving a
worldwide chain of around 30,000 fast food restaurants that prepare, package and
sell a menu of ready to eat foods. This is a problem for McDonalds because it has
already gain the reputation of a fast food that continuously provides greasy
unhealthy food; whereas competitors have already made measures to reduce fats in
their products. The company needs to do something about and shift its positive
image back. Hence, the issue or problem that should be solved by the management
of McDonalds is to make a decision in terms of having a new marketing approach
that will make the company be more appealing to the current customers. This
approach should make the McDonalds brand as something that is irresistible, then
followed with the information that its products are already health friendly. In this
approach, certain changes will be made.

Decision Making Approaches


Generally, most organizational management systems is said to be set-up to permit
decision making at the lowest plausible level. The management must make it sure
that decisions making are distributed evenly to different departments and levels of
organization to avoid conflicts. In order to do this, the management must be able to
choose the most appropriate decision making approach. In this regard, there are
various decision making approaches that can be used in business organizations.
These decision making approaches include administration approach, political
approach, classical approach or incremental approach.
The next decision making approach is the political decision making approach. Unlike
in the administrative decision making approach, political decision making approach
have decision makers who are politically inclined and have deep knowledge in
different laws. The political decision making approach is said to be opinionated and
supportive. The elite political groups have the opportunity to make decisions by
intensely arguing on both the positive and negative sides of the decision to be
made.
The last decision making approach is the incremental or classical decision making
approach. The incremental or classical type of decision making approach tends to
look at a specific decision as a small step within the process and consequently

perpetuate to a series of other similar decision. This means that the management
makes decision in a step by step process (Borden, 1995). The classical decision
making approach seems to be more scientific and rational. The process involved in
a classical decision making approach are deeply taken into considerations and the
management are trying to make the decision as appropriate as possible to avoid
further conflicts.

Key Limitations of Decision Making Models


Aside from bounded rationality, administrative decision is also restricted to a
specific decision making style. Since the manager or for this case the marketing
manager is the only one who will make the decision, the decision making style will
be limited on the managers knowledge. This limitation may result in ineffective and
inappropriate decisions which may worsen the problem or issue of the company.
In line with group think, it is said that in successful groups, individuals learn to work
together. They become a cohesive group as they work on specific tasks or projects.
However, cohesive groups may develop and implement strategies that are
inappropriate. This behavior is attributed to changes in the group's reaction to new
or conflicting information. Cohesive groups tend to close themselves off to
unsettling information, whether from inside or outside the group. This behavior was
labeled groupthink by Janis (1982).
The quality of many organizational decisions also may be limited by political "face
saving" pressure. In other words, decision makers may make decisions that help
them save face at work, although the resulting decisions might not be in the best
interest of their organizations. Imagine, for example, how an employee might distort
the available information needed to make a decision if the correct decision would
jeopardize his or her job. Unfortunately, such misuses of information to support
desired decisions are common. Besides the time constraints and political pressures
that limit quality of organizational decisions, note also the limitations imposed by
moral and ethical constraints -- what is known as bounded discretion. According to
this idea, decision makers limit their actions to those that fall within the bounds of
current moral and ethical standards.

TYPES OF PLANS
To keep growth alive, McDonald's has decided to focus on three priorities: menu
optimization, modernization of customer experience, and broadening accessibility.
Menu optimization involves going beyond traditional hamburgers and introducing a
wider selection of beverages, chicken products, and beef products. For example,
MacAfee -- which was first opened in Australia in 1993 -- has expanded quite quickly.

Now the company plans to introduce MacAfee-branded packaged coffees via


grocery stores.
In terms of customer experience, the company's reimaging and rebranding efforts
are aimed at gaining non-traditional customers. For example, by offering free Wi-Fi
access and improving the quality of its premium coffee, McDonald's tries to capture
market share from coffee chains
Finally, in terms of accessibility, the company plans to improve capacity
significantly, on top of building new restaurants. The company plans to spend $2.9
billion to $3 billion in 2014 to open 1,500 to 1,600 new restaurants, and remodel
about 1,000 others. This should allow the company to maintain sales growth of 3%5% and operating income growth of 6%-7%, amazing figures for a company serving
around 68 million customers daily in 119 countries.
Why Burger King and Wendy's can't beat McDonald's?
Although Burger King's recent focus on the high-end segment -- in Japan, the
company sells cocktails -- and use of high-quality ingredients is promising,
McDonald's has a stronger, iconic, and truly global brand which is embedded in the
memory of customers from a very early age. This allows McDonald's to maintain a
leading market position in practically every country in which it operates.
Note that between 2005 and 2008, inefficient and controversial marketing
campaigns and the decision to sell absurdly expensive burgers in the middle of a
severe financial crisis -- there was a $190 gourmet burger in the U.K. -- had a
terrible negative impact on Burger King's sales. Although the company tried to keep
up with McDonald's, it turned out that Wendy's was the real threat. In late 2011,
Wendy's finally surpassed Burger King and became the second largest fast-food
restaurant in the U.S.
With more than 6,000 locations worldwide, Wendy's owns a stronger brand than
Burger King. Furthermore, Wendy's is constantly innovating its menu, while paying
attention to its traditional offerings. To replace both the Big Mac and Whopper, the
company launched its W burger at the end of 2011. In 2012, it introduced a new
type of fries, a new salad, and the spicy guacamole chicken club, to name a few
examples.
However, as Morningstar notes, Wendy's higher-quality products come at a higher
price, and therefore make price-sensitive consumers shy away. The company
concentrated on differentiating its products by using top-quality ingredients, and
promoting an 'old-fashioned burger' concept. Instead, McDonald's has focused on
keeping prices low. As a result, McDonald's appeals a broader demographic.

Final Foolish takeaway

The world's largest chain of hamburger fast food restaurants remains an attractive
investment, both in terms of value and growth. Management's commitment to
permanent innovation and expansion combined with McDonald's iconic brand,
should help the company maintain its dominance in the fast food industry and
conquer new segments.
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Jim Skinner said, "Over the past nine years the Plan to Win has been the right
blueprint for McDonald's and remains relevant today. It has enabled us to perform
well in both robust and challenging economic environments. Most importantly, the
Plan is supported by our unparalleled competitive advantages in size and scale, our
financial strength and our System alignment."
McDonald's reaffirmed its constant currency growth targets:

Average annual sales growth of 3% to 5%


Average annual operating income growth of 6% to 7%, and
Return on incremental invested capital in the high teens

During the meeting, the Company highlighted the following for 2012:
Capital expenditures of about $2.9 billion, providing for more than 1,300 new
restaurant openings and over 2,400 reimages
Commodity cost forecast reflecting an increase in the Company's overall basket of
goods of 4.5% to 5.5%
Chief Operating Officer Don Thompson said,
"We are intensifying our efforts behind three global priorities that represent our
greatest opportunities under the Plan to Win optimizing and evolving our menu,

modernizing the customer experience and broadening accessibility to our Brand. I


am confident in our strategies and the ability of our talented System to execute
against these priorities as we drive toward our mission to become our customers'
favorite place and way to eat and drink."
Benson continued, "The first priority for our significant cash flow remains
reinvesting in our business to be increasingly relevant to our customers. After that,
we expect to return all of our free cash flow to shareholders over the long term
through a combination of dividends and share repurchases. Through October 2011,
we have returned $5.1 billion to shareholders and expect to finish the year at
around $6 billion."
Skinner concluded, "McDonald's unwavering commitment to and outstanding
execution of the Plan to Win has created significant brand differentiation and strong
business momentum. McDonald's is well-positioned for sustained profitable growth
and I am confident that the investments we are making today will yield long-term
value for our shareholders in the future."

RELATED COMMUNICATIONS
The Company plans to release November 2011 sales on December 8, 2011.
McDonald's is the world's leading global foodservice retailer with more than 33,000
locations serving approximately 64 million customers in 119 countries each day.
More than 80% of McDonald's restaurants worldwide are owned and operated by
independent local men and women.

FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements, which reflect
management's expectations regarding future events and operating performance
and speak only as of the date hereof. These forward-looking statements involve a
number of risks and uncertainties. The factors that could cause actual results to
differ materially from our expectations are detailed in the Company's filings with the
Securities and Exchange Commission, such as its annual and quarterly reports and
current reports on Form 8-K.

TYPES OF GOALS
Goals
The goal for McDonald is to successfully communicate their new healthy
alternatives. After the movie Supersize me McDonalds experienced a lot of
critique and has therefore established a new strategy with the following goals:

Reputation:
-Improve McDs reputation within the industry: They do not aim solely at being
perceived as a healthy restaurant, but as a restaurant that offers alternative meals
for their publics. They furthermore want to be recognized as a company which is
aware of the growing societal issues of obesity.
- Reinforce McDs image with a new communication focus: Simultaneously with the
increasing focus on healthier alternatives, McD has realized that they have to
change their focus in order to create a new image and perception of McD. As a
result they have taken some initiatives that should change the focus from the
unhealthy products and introduced healthier menus. This has generated a lot of
buzz because this change of focus was inevitable. It can be discussed whether this
communicational change has been a success.

Relationship management
Promote their new initiatives to new potential customers. It is obvious that the new
strategy will generate a positive relationship between existing customers and
potential customers due to the fact that the strategy will create access to new
markets and that existing customers now have a broader range to choose from
including the original menu choice.
Furthermore they provide more alternatives to their customers as a result of the
new focus.

Task management
Increase public support for McDonalds new aim.
What position do you seek? Before the issue evolved McDonalds was known as a
popular but still greasy fast food restaurants. They are still perceived in this way but
at the same time people now know that they offer some alternatives. Furthermore
McD have been really good at communicating their products nutritional values. This
has increased the transparency and makes it possible for people to know how many

calories they consume in a meal. Through this way they are perceived as being a
more open and credible organization.
McDonalds should focus on maintaining this position. They should be a place for all
kinds of people and continue to develop both their burgers and also the healthier
alternatives. However, they should still keep their original brand.

SWOT Analysis
This SWOT analysis shows us that although there are numerous threats against the
fast-food industry, McDonalds occupies a relatively strong position in the global
marketplace. According to the five forces model, the strongest competitive force is
between rival sellers in the industry. This SWOT analysis shows the many strengths
that Mc Donalds employs to keep itself at the top of the fast-food industry.
McDonalds has a strong enough consumer base to grow in the upcoming years.
The financial analysis shows certain flaws in McDonalds finances, but these are
largely due to the expansionary policy in place in the company.

Strengths
Owns one of the worlds best known brand names
Real estate operations bring in large revenues and allow McDonalds to open more
stores
Countless new innovations- breakfast, playpens, etc.
Specialized training for managers
Reinstitute the restaurant review operation (QSC)
Large market share
Strongest international presence among fast-food chains
McDonalds does not need to act as finance corporation to franchises
McDonalds Plan to Win- focuses on people, products, place, price and promotion

Weaknesses
Customer service ranking is the lowest among fast-food chains
Many stores beginning to look dated
Quality becoming inconsistent

Order accuracy is low compared to other chains

Opportunities
Diversification and acquisition of other quick-service restaurants
Low-cost menu to attract different customers
Initial public offerings in other countries could raise revenues
Retail merchandise potentially used to raise revenues

Threats
Increased competition among rival sellers, including price wars, product innovation,
and growth
Health conscious consumers demanding better quality, healthier menu items
All fast-food chains expected to struggle to meet new consumer health expectations
Overall weaker economy

ORGANIZATION STRUCTURE
The article McDonalds Business Analysis by N. Vijayarani explains McDonalds
formal business structure and business strategies. McDonalds is one of the largest
food chain companies in the world and has much strength in its company that
allows it to build a functional structure. McDonalds has around 40 million customers
visiting the store each day. It has over 30.000 branches in 120 countries including
Canada, Brazil, Germany, France, Japan, UK, Australia, and the U.S. It derives 80%
of its revenues from these countries. One of there greatest strengths and missions
is to create an image in the minds of the people and introduce them to the fast food
culture. The company functions with great delivery speed, customer care and
cleanliness.
McDonalds has a very recognizable corporate symbol and have been highly
successful with their advertisements and establishing the brand image and logo in
the minds of millions of people. Another strength McDonalds has is its product
value. According to the article, customers know what to expect when they walk into
the store, great emphasis goes to human resources by satisfying both the customer
and the employees. McDonalds is very innovative with new product lines, new
trends and new tastes. Its diversity into their new business ventures is also
considered a strength of McDonalds. Unfortunately, share holders.
McDonalds faces competition as well as customers changing their trends and
choices and this impacts the companys business structure. People get tired of the
same brand especially ones they are used to and ones that see everywhere.
McDonalds is very over exposed. Another thing McDonalds has to be careful with as
a large chain is making sure they maintain their standards and make sure they dont
lack in quality service or else it will affect the whole brand.
1. The managerial and organizational process should share a good integration and
coordination. The organization should learn and bring about changes according to
the need of the hour and should always be flexible to changes in the environment
such a customer trends, legal or government restriction and developments in the
technology. McDonalds is presently concentrating on this.
2. Technological, structural and financial assets of a company are an excellent
market position which helps in the SCA.
3. The vision or the dream with which the company was started. McDonalds was
started out to help people who has very little time to cook or was too busy to get

into a proper restaurant. The vision was to provide quick service, cheap products
and quality satisfaction.
McDonalds started off as a success story but as like any company they have faced
risks, competitors and major set backs. Its core competences and the SCA both
internal and external make the company strong and ranked among the top
businesses.
Personally, I think McDonalds is a strong company that has faced many risks and set
backs but has learned and grown to be even stronger. They live by their vision and
always strive towards being the best fast food chain. They use many of the
marketing strategies to fix and help their issues.

Rachel Wilhelm
RECOMMENDATIONS AND SUGESSTIONS

1-When mopping make sure there are wet floor signs in view from every direction
near the wet areaa.
2- Make sure the electrical outlets are covered so children can not stick something
in them.
3-Make it mandatory that the crew wears all nonslick shoes.
4- If they have a playland, make sure all the bars are covered with padding. Double
check the safety harnesses for the tubing.
5- Make sure the back door has an alarm that is properly working. make sure every
manager that runs a shift has a key to this alarm.
6- Check all locks and ensure all managers have keys that work properly
7-Make sure all lights are working in the parking lot and are turning on at the correct
time.
There are more I could go on but, you get the point. There should be a checklist
everyday they go through and varify all things are in order. Also a Safety Commitee
is a good idea. Everyone could be assigned certain tasks that need to be completed
and checked up on.

There are also standard procedures when opening or closing a Mcds store. Make
sure all the crew and management knows these procedures and adheres to them.
Perhaps you could call the local authorities and have them escort you to the bank
for depositing money. Or they could be there when you open or close the store.

Conclusion
McDonalds has seen many changes, good and bad during its creation and duration
of the business. As long as the core competencies are recognized and never
forgotten, then this business will continue to succeed. With every issue and
challenge the corporation faces, it has the opportunity to improve itself and prove
itself to the public, shareholders, and stakeholders. With every battle conquered,
another one rises and with a secure mission and vision in mind, the corporation
should never stray too far from the roots and success of the company. The
recommended strategy will strengthen this plan because it is doing what McDonalds
does best and more so. Despite the downturn the company has seen, the general
impression we receive from McDonalds financial situation is that the company is
slowly climbing out of a low period and making a turnaround. We must never
forget the key success factors of the business which really makes the business for
what it is today, including franchises that offer quick, efficient service in a clean
friendly environment
It would be worthwhile for researchers to establish the scale of the benefits that
McDonalds and its fast food brethren bring in the areas of providing management
training, encouraging entrepreneurship, developing local suppliers, promoting
exports, and improving productivity, standards of service.