McDonald’s Corporation Essay Sample

McDonald’s Corporation Pages
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1. Provide a brief overview of the Chairman’s and CEO’s reports.

In 1971, Skinner began his career with McDonald’s as a restaurant manager trainee in Carpentersville, Illinois; in the interim he has held numerous leadership positions, including Director of Field Operations, Market Manager, Regional Vice President and U.S. Senior Vice President and Zone Manager. Being named CEO, Skinner served as Vice Chairman of McDonald’s Corporation, and had management responsibility for Asia-Pacific, Middle East and Africa (APMEA), and Latin America, in addition to overseeing most corporate staff functions. Jim Skinner, the Chairman and Chief Executive Officer who leads one of the world’s largest food service company that contains more than 33,000 restaurants in 119 countries. McDonald’s serves nearly 68 million customers daily and employs around 1.7 million people throughout the globe in corporate and restaurant positions. In 2004, the becoming CEO, Skinner set three top priorities for his leadership such as long-term sustainable growth for the company, talent management and leadership development, and promoting balanced active lifestyles. Then in 2008, Skinner was named one of the “America’s Best CEO’s by Institutional Investor magazine. He was also named by the Chief Executive magazine as the “2009 CEO of the Year” and he was recently named as one of Barron’s “30 Most Respected CEOs.”

2. Assess the Mission Statement of the company in terms of how it aligns with what the company actually does. The McDonald’s brand mission for their customers’ is for them to have a favorite place and way to eat. Their worldwide operations are aligned around a global strategy called the “Plan to Win,” which is the midpoint of an exceptional customer experience like People, Products, Place, Price and Promotion. They are also committed to continuously improving their operations and enhancing our customers’ experience. A. We place the customer experience at the core of all we do- They focus on their customers for the reason of their existence. The demonstration for the appreciation is by providing them with high quality food and superior service in a clean, welcoming environment, at a great value. The focal goal of their service is their quality, service, cleanliness and value (QSC&V) for each and every customer, each and every time.

B. We are committed to our people- They provide opportunity, nurture talent, develop leaders and reward achievement. The team of McDonald are well-trained individuals with diverse backgrounds and experiences, working together in an environment that nurtures respect and motivates high levels of engagement, is essential to their continued success.

C. We believe in the McDonald’s System- McDonald’s business model that is depicted by the team “three-legged stool” of owner/operators, suppliers, and company employees, is our foundation, and is the interest of balancing all three groups that is significant.

D. We operate our business ethically- The sound ethics of a good business group is to hold themselves and conduct the business to high standards of fairness, honesty, and integrity.

E. We give back to our communities- The serious responsibilities that come with being a leader is to help their customers build better communities, support Ronald McDonald House Charities, and leverage the size, scope and resources to help make the world a better place.

F. We grow our business profitably- McDonald’s is a publicly traded company. As such, the team works to provide sustained profitable growth for the shareholders. This also requires a continuous focus on the customers and the health of the system.

G. We strive continually to improve- Their learning organization aims to anticipate and respond to changing customers is the employee system’s needs through constant evolution and innovation.

3. Describe in detail the financial health of the company based on an examination of its Balance Sheet, Income Statement, and Cash Flow Statement. Based on the balance of McDonald’s Corporation’s revenues, it was declined from 2008 to 2009 but then increased from 2009 to 2010 exceeding 2008 level. McDonald’s Corporation’s operating income increased from 2008 to 2009 and from 2009 to 2010. Their income statement from continuing operations resulted before provision for income taxes that increased from 2008 to 2009 and from 2009 to 2010. Also, their income from continuing operations increased from 2008 to 2009 and from 2009 to 2010. It seems that this corporation appears to be successful throughout the globe.

4. Predict the performance of the company in the next five years, providing a detailed analysis of the annual report and other resources in support of your prediction. In July, the U.S comparable sales logo was 4.4% as McDonald’s remains as a relevant and affordable choice for all consumers and patrons; this result was fueled by the popularity of the McCafe beverage line-up, including the recently introduced Mango Pineapple Smoothie, with core products including Chicken McNuggets and McDonald’s market-leading breakfast. The strength of McDonald’s European business continued with July comparable sales up to 5.3% that was led by performance in the U.K., Russia and Germany. The growing popularity of breakfast including beef and chicken offerings of a restaurant was reimaging the contribution to the month’s results. As such, the comparable sales in Asia/Pacific, Middle East and Africa increased 4.0% led by performance in China and most other markets, during the partial offset by Japan. APMEA’s results benefitted from compelling day part value options, conveniences such as delivery and drive-thru and locally-relevant menu items. The constant currencies of the system’s wide sales increased 14.0%, or 7.1%.

Based on this analysis of the annual report, McDonald’s will continue to grow by adding convenience to their customers and ethical work of their team members. Sales will increase making profitability rise that will allow the corporation to be successful.


Jim Skinner :: (n.d.). McDonalds Official Global Corporate Website :: Retrieved February 24, 2012, from McDonald’s Strong Performance Continues: July Comparable Sales Up 5.1% – The Business Journals. (n.d.). Business News – The Business Journals. Retrieved February 25, 2012, from Newswire, P. (n.d.). McDonald’s Strong Performance Continues: July Comparable Sales Up 5.1% – TheStreet. Stock Market Today – Financial News, Quotes and Analysis – TheStreet. Retrieved February 24, 2012, from Walker, J.R. (2009). Introduction to hospitality (5th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall

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