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Management

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Submitted By domy1225
Words 1653
Pages 7
Ronny Soto
Ms. Cucinell
4/8/14

The Inside View of McDonald's

Many people of all ages around the united Stated recognize Walgreens Pharmacy. This pharmacy has been around since 1901. The way Walgreens is able to appeal to a wide audience is interesting. (The way they manage as a whole) They make money off of adults and children of all ages. The size of profit income can be different if this skill is changed. Next, the finance is key when running a business. Knowing when you have money, knowing where to spend it, and knowing how to use it can play a big role. Not many people know when the first Walgreens even opened. The history of a company should be one of the things a consumer looks into before wasting their money at that place. Who runs the business, were there any public threats against health, what products can be available in each pharmacy, etc. Therefore, Walgreens way of managing, financing, and history are three key parts of the organization.

First, if I had to come up with one word explaining the way Walgreens manages themselves is around adaptability. They simply meet the needs of the audience and target different audience, from selling toys for the kids and medicine for the senior citizens. For example, they appeal to families because with good deals, families can do their shopping in the Pharmacy where they can search for medicines, food, drinks, make up and others types of products. This brings the business money and final consumers are happy. Children would also want to go to Walgreens because they can find snacks, toys, his/her favorite drinks, medice and others. The happy meals plus the toys that they bring inside would send the kids to a whole new world of fun. It appeals to an adult because if they are late for work, McDonald's is the place to get fast quality food. Skipping lunch and going to work only on coffee is not good for the human body. It is also appealing to teenagers because it is affordable. Being is college means that you have to pay to eat. It isn't like high school where you get free food. Not only that, but McDonald's also offers free Wi-Fi at all of their locations. This means that teenagers can come in, eat until their full and also stream the web for as long as they want. The ability of keeping their customers with them in the future comes from using the 4P’s of marketing. They are product, price, promotion, and place. Product is what they sell to consumers. So being able to keep the menu fresh to the public is important. If not, the customers will then look for something new to eat. Having a lot of options on the menu is also good. It gives consumers choices and power to pick what they eat. Price is how much what they sell cost. McDonald's looks at what customers are willing to pay. Being too pricey may cause customers to not buy it. At the same time, being too low priced may cause them to think would if it’s not worth it. Promotion deals with advertisements. TV commercials, the radio, and online pop ups are some of the ways McDonald's reaches out to their audience. They believe an effective way of communication and they right medium will reach the right audience. For example, you shouldn't market men’s boxers at an all girls gym website. Lastly, the places of your menu items play a role. “Place” does not necessarily deal with the physical location of a McDonald’s restaurant, but different McDonald's selling a few different things. Next, another key component McDonald's focuses on is their financial department. The way a business handles their money is important. As a company, you never want to make the wrong choice or investment. First, McDonald's has to make profits to be able to make any type of changes. Once they do and have a substantial amount, senior management then thinks about how the money should be used. They can one, open new restaurants. This will accelerate the amount of revenue and profit brought into the company. They can two, re-invest in existing restaurants. This can deal with size renovations, appearance, employing more associates, etc. More workers will equal fast work being made. They can three, reduces loans. As a business, they may face tough times. This will cause them to take out a government loan and then be in debt. Lastly, they can pay a dividend to shareholders. The value of a share of McDonald's as of today is 98.03. In December 18 2009, the value of a share was $62.17. You can see the difference and McDonald's progressing as a whole over time. McDonald's has two sources of profit. One way they make profit is from company owned restaurants. The amount of money the company makes depends at what price their menu items are sold at. The other is from royalty income from other franchised McDonald's. A royalty can be thought of as a fee. All franchisee pay back money for trading and rent under the brand name. These managers are allowed to keep the rest of the profit after paying the royalty. Franchising a lot of McDonald's in different places guarantee’s a stream of income from different places. They more you franchise. They more McDonald's your franchise, the more money you get back even though some profits go to the franchisee. Accountant teams from the company will work with all franchisees to acquire the ability to increase profitability. This will allow the company to make more money as a whole. This explains why some menu items are sold at a different place in a different restaurant. They raise profitability due to location. Lastly, the history of how McDonald's came to be started in 1940. McDonald's was first called “McDonald's Bar-B-Q.” The name then changed to what we know it as today in 1948. Before this change was made, the one McDonald's built in Illinois was closed for a little over three months. Renovations and revision to the menu items were undergoing a big change. One menu item that was changed was the potato chips. French fire replaces the potato chips McDonald's had on the menu in 1949. Ray Kroc finally goes public and opens his first McDonald's in 1955 in Des Plaines, Illinois. They made $366.12 on their opening day. In only three years, (1958) they sold their 100th millionth hamburger. This is definitely a milestone and it shows progress. The correct course of action is being taken. In 1959, the 100th McDonald's opened in Du Lac Wisconsin. This is a good move because they are expanding and ultimately generating more profit as a business. Not only that, but all of these McDonald's are being built all over the United States. Afterwards in 1961, Hamburger University opens. Ray Kroc created Hamburger University so that associates can graduate with a bachelor’s degree in Hamburger-logy. This will allow the company to make the same burger for everyone no matter where it is sold. Before 1961, all of the seats were outside the restaurant. Either you sat outside to eat your food, or you took it home. In 1962, inside seating was added. Then in 1963, the 500th McDonald's opened in Teledo, Ohio. Another way of generating more profit and it only took the company four years to make five times more restaurants than they already had. McDonald's then goes international in 1967. They first opened a McDonald's in Puerto Rico, then Canada, and so on around the world. By this time, the company was operating in more than 119 different countries. Ronald McDonald friends were added in 1971. They were Ham-burglar, Grimace, Mayor Mc. Cheese, Captain Crook, and the Big Mac. This was a good addition to the company because it attacked kids to go and eat there. After this, by 1983, the organization was located in over 32 countries and there were about 7,778 restaurants by the end of the year. The first McDonald's that opened in Poland broke the sales of any opening day at any McDonald's in 1992. The Mc Cafe’s, cappuccinos and mocha's go national in 2009. Lastly, the newest edition to the menu is called the Shamrock Shake in 2012. They are only sold in the United States. In conclusion, the way a business is run is crucial. The choices made will affect the amount of money the company generates. The vision and steps needed to fulfill that achievement need to be clear in order to be on the path towards success. Not only have the correct steps needed to be made, but the correct investments as well. You can’t save and make more money without using it effectively throughout your company. If the money isn't used for the correct reasons, it may cause your corporation to be in debt and backed up financially. Yet the history of the business is important. You never want to make the same mistakes twice. So by knowing your history, it will allow you to evaluate past experiences and learn from them. The McDonald's Company is adapters to society. These three key points sums what McDonald's is all about.

Bibliography History
· McDonald's history. (2010). Retrieved April 8, 2014, from Www.aboutmcdonalds.com/ website: http://www.aboutmcdonalds.com/mcd/our_company/mcdonalds_history_timeline.html Finance and Management style · Learn how we work. (2010). Retrieved April 8, 2014, from Www.mcdonalds.co website: http://www.mcdonalds.co.uk/ukhome/People/Schools-students.html · Finance at mcDonald’s. (2008). Retrieved April 8, 2014, from www.mcdonalds.co. website: http://www.mcdonalds.co.uk/content/dam/McDonaldsUK/People/Schoolsand-students/mcd_finance.pdf The Stocks · McDonald's corporation stock quote & summary data. (n.d.). Retrieved April 8, 2014, from Www.nasdaq.com/ website: http://www.nasdaq.com/symbol/mcd

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