Explain the purpose of the business. * Does the company operate on a profit or non-profit basis? Explain your answer with details. * Does the company provide a service; manufacture a product, internet based or perhaps all? * Where is the business located and how many locations are there? McDonalds’s provides a service of fast food to people all over the world. The top 5 are America, Japan, Canada, United Kingdom, and Germany. According to 2007 statistics, McDonald’s serves more than 27 million individuals daily. Headquarters are located in Oak Brook, Illinois. It is both a profit and non-profit orientated business.
Jim Skinner, the CEO, owns 33,000 restaurants in 119 countries. 59% of McDonald’s restaurants are owned by independent people. McDonalds also invests into the stock market, with shareholders that receive dividends and money when he or she sells the stock. McDonalds supports non-profit organizations like, The Ronald McDonald house fund provides free housing for families with children that are hospitalized far away from home and grants to charities in need. B. Explore the history of the business * Provide a chronological history of the business indicating significant events during that history.
In 1940, Dick and Mac McDonald opened a Bar-B-Que drive-in. Eight years later; the drive-in was shut down and turned into a 9 item self-serve drive-in. By 1958, McDonald’s was already a sought out place to eat and sold their 100 millionth hamburger. In 1967, they went international and opened a McDonalds in Canada and Puerto Rico. A year later, McDonalds created and started serving their famous Big Mac’s. McDonalds celebrated their 50th anniversary in 2005 and continue to serve Big Macs, happy meals, cafe specialties, and dollar menu items to millions every day.
Ray Kroc can be thanked for McDonald’s expansion. In 1955, he made McDonalds a corporation and 5 years later bought McDonalds rights. He was able to build McDonald’s in to a top franchise fast food restaurant. C. Discuss how the capitalism’s four basic rights are illustrated in the operations of this business. * What form of economic environment does this company operate (ex: monopolistic competition versus oligopoly, etc. ) McDonalds operates in a monopolistic competition. There are 2,400 McDonald’s franchises. With 80% of the businesses being franchised (McDonalds).
This means that McDonalds does sell to private owners and are practicing this right. They are in competition with all fast food restaurants, like Wendy’s and Burger King. But McDonalds also has to compete against real restaurants and home-cooked meals. According to QRS magazine, McDonalds is the top fast-food business in America (QRS magazine) so they are having no problem competing or making profit’s. McDonalds uses the freedom of choice by adding specialty coffees and shakes to the menu, along with premium salads and a few other products. D.
What role does the government play in the operations of the business? McDonalds has to follow all Occupational Safety and Health Administration (OSHA) regulations. This means that they have to make sure all floors and walkways are clean and free of clutter. McDonalds has to post all OSHA safety signs and allow breaks for employees. OSHA also has regulations on the minimum wage an employer can pay an employee. Currently, the wage is $7. 25 (OSHA). In 2011, a health law was passed that now requires McDonalds to post all data on calories in their food.
This has caused McDonalds to rethink some of their items and make them healthy. An example of this would be with kid’s happy meals that can now substitute french fries or pop for apples or milk. Internationally, the United Kingdom has a Children’s Food Bill intended to highly regulate the advertising of happy meals and fast food aimed at children (Wikipedia). McDonalds has to be careful not to rope kids in to wanting unhealthy food. E. Describe the legal form of the business and indicate some of the advantages/disadvantages of the form. McDonalds is an S corporation.
Most advantages of an S corporation are received by shareholders and employees that are shareholders. Some advantages of an S corporation are better legal protection and a reduction in payroll and employment taxes. Some disadvantages are accounting, tax preparation and payroll process can be a burden and it costs more than a partnership or proprietorship to start and stop (Nelson). F. How does this business exhibit corporate citizenship and responsibility of business in society? * Describe any “green” concepts the business might be using or plan on using in the future.
McDonalds has a Ronald McDonald House Charity donation box in most of their restaurants. This makes it easy for customers to donate their spare change/money to a good cause. In July of 2011, the movie Smurf was released and McDonalds promoted it and themselves by teaming up with Keep America Beautiful (KAB) to invite kids to “Smurf the Earth” by choosing Apple Dippers in their Happy Meals. For each digital code featured on Apple Dipper packages and redeemed at HappyMeal. com, McDonald’s and KAB planted a tree in needed areas within national forests across the country.
McDonald’s in Latin America also gave away a million sunflower packets so children could grow their own sunflowers. McDonald’s has been a national member of the U. S. Green Building Council (USGBC) since 2007. They have added more efficient lighting, plumbing, storm water management and even a garden in a McDonalds in Chicago, Illinois. McDonalds continues to strive to be greener. G. Discuss any career opportunities within the business. * What type of credentials are needed for a job with this company (example: type of degree/major), experience desired, and any current salary ranges.
No experience is needed to work in McDonalds, but they do have a Hamburger University that teaches workers the key to achieving successful procedures, service, quality and cleanliness. The age of a person looking to work at McDonalds depends on the Child Labor Laws in the state. OSHA’s regulations are that no one under 16 can work with stoves, grills, or knifes. Wages vary from minimum wage to… To become a manager at McDonalds, a worker must first complete the first level of the McDonald’s Management Development Program. Being a manager allows the worker to have flexible hours and gain long service awards.