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Mcdonald's

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Submitted By aainaadiyana
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Task 1
Organisation
Definition of Organisation “A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assign roles, responsibilities; and authority to carry out different task.” (Sources: http://www.businessdictionary.com/definition/organization.html)
From that statement, my understanding about organisation is a group of people that is specifically organised within their area and cooperates with each other within the group or usually define as a group of people working together to achieve common goal.

Diagram 1.0: Example of chart of McDonald’s organisation
As an example, in McDonald’s restaurant, there would be restaurant manager that monitor the restaurant with the help of first assistant manager. Then there would be second assistant manager that trains the trainee manager that comes from shift running floor manager. Before that, floor manager also has to train the trainee floor manager that comes from training squad. The crew member that works to serve the customer also has to train the trainee worker.
Types of Organisation

Diagram 1.1: Example of Types of Organisation
There are 3 types of organisation that I am going to explain which are public sector organisations, private sector organisations and voluntary sector organisations. Firstly, public sector organisations are for the people owned and run by the government. The money that the government use to finance most of the public sector is the taxes that people pay to the government. They use fully resources for the benefit of the community and they aim to provide crucial public services. Public Sector is a provider (provide free of charge to consumer), producer (produce goods and services) and buyer (buys product to help provide various services). Government are divided to two important parts which are central government and local government. Central government is for defences, National Health Service, Social Security, Prisons, Police, Roads and Universities. As for Local Government, they are for Primary and Secondary Education, Refuse Collection, Social Services, Libraries, Council Housing, Roads and Parks and Sports Facilities. There is also public corporations that are owned by central government. It happens when a government minister appoints a chairperson and board of directors to run the company on their behalf. Public corporations raise finance from the public and also receive grants from the government.
Secondly, private sector organisations are owned and run by private individuals. Sole Traders, Partnerships, Companies (private and public) and Franchises are the examples which I am going to explain later. Basically private sectors aim for profit, growth, increased market share and maximise sales. They get their finance by selling their shares in the company or do some bank loans, government grants, trade credit, by their personal savings and so on.
Lastly, voluntary sector organisation is not owned by an individual but someone will responsible for the budgets and ensuring that it sets targets. It exists to help particular types of people. They do not aim to generate profits. In example, guide dogs for the blind. Their finance cannot be spending more than they get through fundraising, grants, donations, etc. Charity is one of voluntary sector organisations.
Purposes of Organisation
Every organisation that exists must have purposes for them to keep moving on and be on the right track. Common purposes include growth, shareholder value, customer satisfaction and profitability. Firstly, growth defines as “An increase, as in size, number, value, or strength; extension or expansion” (TheFreeDictionary). It is a very important objective for many organisations. Even for the new market organisations, growth is a very considering objective.
Second, shareholder value is “the sum of all strategic decisions that affect the firm's ability to efficiently increase the amount of free cash flow over time” (Shareholder Value). Thirdly, customer satisfaction is the ability of one company to attract the existing customers.
Lastly, profitability is “the metric used to determine the scope of a company's profit in relation to the size of the business” (What is the difference between profitability and profit?). It is a measurement to measure success or failure. It is also an ability to produce a return on investment. There are also return on investment (ROI) sales, corporate responsibility, ethical and environmental and social responsibility as the organisations purposes.

Different Types of Ownerships
There are three common business ownerships which are the sole trader, partnership and company. The first one is sole trader. Sole Trader is a business that is owned by one person only. It may be the least costly among the other types of ownerships and the easy one to set-up. The sole trader faces an unlimited liability. A sole trader usually is a small business. It means that if the business fails or declared bankrupt, the creditors can sued the sole trader for all the debt to respective merchants.
Secondly, Partnership is a business that is owned by two or more people who contribute resources into the business. The partners divide their profits among themselves. Each of them faces an unlimited liability.
Last but not least, Company is a separate legal personality from its owners. It is capable of holding its own assets and conducting its own business. It can sue and also be sued. Ownership in a stock company is represented by their share on stock

Diagram 1.2: McDonald’s logo
McDonald’s Mission
“McDonald's brand mission is to be our customers' favorite place and way to eat and drink” (McDonald's). This mission statement shows that the company aims to cater to the customers’ needs, making its restaurants a place for the customers and provides good food and drinks.
Comparing McDonald’s and Burger King’s missions, for Burger King, their mission is “Offering reasonably priced quality food, served quickly, in attractive, clean surroundings” (Burger King Mission Statement - Vision for Food, Speed, and Customer Experience). This mission statement shows that Burger King focuses more on speedy serving quality fast food with a reasonable price in a comfortable environment.
McDonald’s Values
There’s a lot of value by McDonald’s. From the sources I got from http://www.mcdonalds.com.my/about_us/corporate_info/mission.aspx there are 8 values, which are We place the customer experience at the core of all we do, We are committed to our people, We believe in the McDonald’s System, We operate our business ethically, We give back to our communities, We grow our business profitably and We strive continually to improve.
The first one that I am going to explain is we grow their business profitability, means that as a publicly traded company, they provided for the shareholders a sustained profitable growth. To do this they need to focus on the customers and the health of their system.
The second one is we give back to their communities, means that they take seriously on the responsibilities of being a leader. By helping our customers to build a better community, they have Ronald McDonald House Charities to help the world to be a better place.
Last but not least, we strive continually to improve. Through evolution and innovation, they aim to respond and anticipate to changing customer, employee and system.
Comparing Burger King and McDonald’s values, from the sources I got from http://www.burgerking.com.my/?ch=bk_my_en_info&pg=PG_RzP0A2hm_20130429180046 there are lots of Burger King values which are Fairness, Diversity, Respect, Caring, Clear Accountabilities, Teamwork, High Standards, Commitment to Excellence and Celebrating our Successes. We can see that Burger King Values more on good attitude with each other. The reason why I said this is because Burger King believes that “We believe in working together with and listening to our employees, guests, business partners and the people in the communities in which we live and work. We share their concerns for our neighborhoods, educating children, preserving the environment, providing jobs and doing our part to help families eat and live better by offering more nutritious food options and promoting healthy life-style messages. We know we have a role to play in each of these areas” (Burger King Mission Statement - Vision for Food, Speed, and Customer Experience).
McDonald’s Objectives
The main objectives of McDonald’s are "… to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile" (Hung, 2013). Shareholders also get good return from them. In order to meets the aims of the business, a SMART objective has been used. SMART is an acronym for specific, measurable, achievable, relevant and time specific.
Firstly, specific is important for the business plan as it will tell what McDonald’s specific targets that needs to be make. An objective is something to be done to achieve their targets at the end of the year. For example, McDonald’s might set an objective at targeting a new counter for a single-order customers so that people who are rushing can get fast at making single-order food.
Secondly, to see objectives has been achieved or not, the objective needs to be measured. For example, McDonald’s could measure the service times during a one-hour period and record the number of times a single-order customers were served.
Thirdly, the objectives should be achievable. McDonald’s have to make sure that they serve the food as fast as possible and have different taste foods. For example, the manager of McDonald’s have to check whether the employees is efficient to serve single-order customers or not.
Fourth, if they want to make a profit, they have to make the customers happy by having objectives to achieve the aims of the business. Relevant to it, the business will grow. For example, McDonald’s objective is to serve customers quickly, they hope to increase their profit by attracting and serving more fast especially for a single-order customer.
Lastly, there will always have duration for an objective; start and finish date. For example, McDonald’s manager might have to make some new rules to the employees to test whether a new opening single-order counter can be achievable or not.
Comparing McDonald’s and Burger King objective, they have a bit similar objectives as “Burger King’s main aims and objectives are to serve its customers with the bests meals and services a fast food company could possibly provide” (Business Communication Report On Burger King).
Conclusion
From the sources i got from http://www.forbes.com/pictures/mlf45ejhgi/top-10-global-fast-food-brands-3/ we can conclude that McDonald’s deserved to be the largest fast food chain in the world because it continuous strive to satisfy every customer appetite with its “i’m lovin’ it” menu, outstanding, customer friendly, services and comfortable place.

Task 2
Stakeholder
Definition “A party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations.”
(Sources: http://www.investopedia.com/terms/s/stakeholder.asp)
From that statement, we can conclude that stakeholder is a group of people who have interest towards organisation’s activity. It is someone that has impact on company’s decision. Each stakeholder group is contributing to the organisation. Each group evaluates the organisation by judging how it meets their goals. The examples of stakeholders are employees, manager, owners, suppliers, government, shareholders and customers.

Diagram 2.0: Examples of Types of Stakeholder which is External and Internal of Stakeholders
Types of Stakeholder
There are two types of stakeholders, which are internal and external. Internal stakeholders are the business organisation’s members. In example, managers, employees and shareholders but shareholders or employees also can be external as they were the local residents. External stakeholders are the group of people who are impacted by the company’s decision making. In example, competitors, government, suppliers and customers. Nowadays, stakeholder’s point of view is to sustain organisational performance in the long run.
Firstly, manager is “An Individual who is in charge of a certain group of tasks, or a certain subset of a company. A manager often has a staff of people who report to him or her” (manager). Manager define as a person who have power of a task towards a certain group. In example, a manager in a restaurant have to make sure their employee is doing their duty, come to work on time and also takes responsibility if the employee done something wrong.
As for employee, it is “…an internal stakeholders as they work inside the company and have an interest and influence the way it is run” (McDonalds Stakeholders). Usually define as the worker that works at the company to serve the customers. In example, you work in any shop or a company, you’ll an employee that does the duty that is specifies for you. You will also get to know the condition of the company because if anything happened it will affect you.
Last but not least, customers are the “…external stakeholders this is because they don’t work for the franchises but they still buy products from them so they have an interest…” (McDonalds Stakeholders). Customer is people that buy or use the products of any company. In example, you were buying the product any company produce, you are already a customer. Customer is the one who creates most of the demand of any product and pays the supply.

Stakeholders That Influence McDonald’s Purpose All Stakeholders can influence McDonald’s purpose because it is someone that has impact on company’s decision and I am going to explain few of them which are the managers, the employees and the customers. The reason why I am saying this is because for manager, it is someone who concerns about their salary. “Managers influence a business everyday by the decisions they make” (Influence of stakeholders on business objectives). Including what services or product to offer. Also who to hire or to fire. Managers use company policy and formulate any strategy that affecting the ability of running and profit-making of the business. For employee, it is someone who works at the company with expectation to the organization is to be paid their salaries and bonuses on due time. By “Motivating your employees with fair compensation, proper training and empowerment helps you deliver a better customer experience” (Kokemuller). Making the employees feel valued can improve their efficiency and productivity to fulfil customer needs. If they disagree with the conditions or the policies, even the salary, they can affect the company itself by taking industrial action.
For customer, it is someone who wants the business to produce quality product at a reasonable prices. Business that ignores the concerns of customer find themselves losing on sales to their virals. “In the long run, your ability to meet the needs of your customers and community is key to success” (Kokemuller). Customer is the one who provide the cash flow for your business. Customer wants and needs will forever be an on-going basis, so we have to meet the customer’s needs and wants. Customer can always choose their own product or services elsewhere. So every company need to aim for customer loyalty. McDonald’s customers can be divided into 3 types which are adult and teenagers, family and kids. For adult and teenagers, the product or food that McDonald’s served mostly are low prices like a combo set as teenagers are mostly students who wants to save money and adult are mostly workers who need to limit their spending. For family, the product or food that McDonald’s served mostly are set or family pack that can make a family easy to decide which food they want. As for kids, the product or food that McDonald’s served are Happy Meal set that suits what kids wants. Examples that show stakeholders influence the purpose of McDonald’s is when if a manager wants to open a new McDonald’s restaurant at a greenfield site, it may upset the local community there who wants to conserve the environment. When the business plans to growing their business by making another restaurant, it may reduce employee costs and some of the existing employee might lose their jobs in the process making. When that happened, customers will be affecting by this stage as they will receive poorer service at the lacks of employees or motivation. When all of what I state above happens, it can influence McDonald’s purpose which is to make money or to achieve McDonald’s objectives which is "… to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile" (Hung, 2013).

McDonald’s Stakeholders and Its Objectives(Demand) There are three types of McDonald’s stakeholders that I’m going to explain including their objectives or their demand on McDonald’s.
The first one is, manager define as a person who have power of a task towards a certain group. In example, in each McDonald’s franchises need to have a manager that can conduct and evaluate the franchise. The objectives for managers are high salaries, job security and status growth of the business. The reason why I said this is because they need high salaries for the return of most of their time they spent for the company. For job securities, after all the hard work the manager had done to the company, of course they want a job security. For status growth, after most of their time and all the hard work they’ve been through, of course they want the company to develop. We can conclude that manager plays an important role as a stakeholder because any McDonald’s restaurant won’t work without a manager.
As for employee, usually define as the worker that works at the company to serve the customers. In example, McDonald’s employee works to serve the customers to get paid. The objectives for employee are job security, job satisfaction and a satisfactory level of payment for their efforts. Job security is what employee wants most as they do not want to be unemployed. As for job satisfaction, the environment and the other workers will affect satisfaction of the job. With the hard work that the employee gave towards their work of course they want their effort to be paid fairly. We can conclude that employee plays an important role as a stakeholder of McDonald’s because if there is no employee then who will do the work or serve the customers.
Last but not least, customers are people that buy or use the products of any company. In example, the person who buys the food that been selling by McDonald’s, and if the person likes it, the person might buys or use it again. The objectives for customers are safe and reliable products and value for money. Every customer wants good products that are safe to use or eat and product that is trusted. The product also has to be value for money which is the product and the price suits each other. We can conclude that customer plays an important role as a stakeholder of McDonald’s because if there is no customer then how business wants to manage their income.
Therefore, business organisations have to balance the needs of organisation and the needs of the stakeholders

Task 3
Strategies
There are a lot of strategies to meet the demands of the stakeholders. The first is using balanced approach. It is a good awareness over the long run because you cannot satisfy only one stakeholder and ignore the others. In example, even though the customers is very important, but if you cannot satisfy the employees demand, in the long run, the employees will not provide the customers a good service level thus it will affect the customers. Even then you were lowering your prices to attract the customers, it may not be sustainable. Next, determine the expectation of each stakeholder. The most important aspect that we need to point out on this strategy is that the analysis have to be a fact-based and objective not by judgement or assumptions. The expectations of each stakeholder need to be from trusted sources; survey, focus groups, etc. in example, senior management always assume they knows what the employees want, but they actually often quite mistaken. Corporate Social Responsibilities is also one of the strategies to meet the demands of stakeholders.
Corporate Social Responsibility (CSR)
Definition
“Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare” (Corporate Social Responsibility). It is usually define as company that takes social and environment into their business and took care their interaction between stakeholders.

Contribution

FIFA World Cup – McDonald’s Player Escort Program Since 1994, McDonald’s has become an official restaurant that served FIFA World Cup. Through contest, promotions and activities, McDonald’s as a sponsor gathers the passion towards football to millions of fans in more than 100 countries. This action makes children ages from 6 to 10 got their opportunity to live their dreams walking on the field hand-to-hand with their football heroes at the beginning of each FIFA World Cup.
Community
Bright Minds Read (BMR) Since 2008, Ronald McDonald House Charities (RMHC) launched BMR after a survey that shows 4 out of 10 first graders didn’t know how to read. RHMC partnering with Department of Education (DepEd) to make BMR program that teach the first grader to read, prehension and critical thinking skills. Training for teachers are also included so that their lessons are easy to understand.
Employee
Gift Giving Gift giving program is a program that gives opportunity towards McDonald’s employee to get a gifts; cash, bonus or goods. Every year, qualified corporate employees and Board of Directors each of the restaurants will get gifts that match their contributions.

Environment
Greenpeace Program

Diagram 3.0: McDonald’s Greenpeace method
As in 2006, McDonald’s collaborated with Amazon Soy Moratorium to support Greenpeace. Among the suggestions are for the suppliers to stop illegal deforestation, using methods of fishing that doesn’t harm the oceans, recycling and composting pilots in the restaurants and lastly, all the waste makes them into bio-gas.

My Suggestion
Widen social welfare McDonald’s should fulfil its Corporate Social Responsibilities by widen their social welfare scope, for example for educational programmes, McDonald’s should sponsors orphans to further studies. Besides, McDonald’s can also make contributions towards school in rural areas in terms of sponsorship for sports team jerseys to uphold sports events. By this, McDonald’s can make a bigger impression to the society.

Conclusion Based on research that I’ve done from task 1 to task 3 about McDonald’s, I now already understands the purposes of different types of organisation; the meaning of an organisation, the types of the organisation and purposes of the organisation. Also I already know more about McDonald’s background; mission, values and objectives throughout this assignment. By that we can see that McDonald’s aims to gain profit. We also can see that its mission is achieved there are a lot of good responses from the customers. Its workers also implemented McDonald’s values. McDonald’s objectives also are achieved as it is ranked the largest fast food chain in the world. I learn about what stakeholders are, what do each stakeholder do, what the stakeholder’s objectives are and what makes the stakeholder’s purposes. From this assignment, I also learn about stakeholder groups that influence the purpose of McDonald’s and the objectives of each stakeholder or the demands that stakeholders make on McDonald’s. Business organisations have to balance the needs of organisation and the needs of the stakeholders. By that we can see that McDonald’s really take care about its stakeholders. Each stakeholder is very important as they are part of the company that demands for something. Managing stakeholder expectations can be difficult and may have conflicting objectives, but manager have to know how to manage it.
Lastly, I have learnt about the strategy that meets the demands of stakeholders. One of them is Corporate Social Responsibilities. I learnt about the definition of Corporate Social Responsibilities and what Corporate Social Responsibilities that McDonald’s have done. By that we can see that McDonald’s really maintaining its quality with all the Corporate Social Responsibilities that it already done while also maintaining its stakeholders.

References
Works Cited
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Appendix

Some of McDonald’s product

McDonald’s biggest competitor which is Burger King

Stakeholder Mapping

McDonald’s CSRS Timeline
McDonald’s CSRS Timeline

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...new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos and recorded music Over the years a lot of food chains have entered the business. 3)mcdonalds: short discription According to this Google map, there are close to 50,000 fast food chains across the United States. The most widely recognized brand in the world happens to be McDonalds, serving around 64 million customers daily in 119 countries. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. To make sure their progress is kept alive, they manage to open five new restaurants every single day. An average of four out of the five are overseas. In other words, America imprints four influencing footprints a day throughout different parts of the world. Ninety-six percent of kids in school could recognize an image of Ronald McDonald, the face of McDonalds. The only recognizable figure that ranked higher was Santa Claus. To top it off, Americans spend nearly $100 billion on fast food every year. [pic] McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts. In response to changing...

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Mcdonald's

...McDonald’s Value Chain Analysis Jeovani Zamarripa, Alicia Wylie, y Jason Flores, Conor Mullarkey Mission Statement “McDonald's brand mission is to "be McDonald s be our customers' favorite place and way p to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an t i th fi b i f exceptional customer experience – People, Products Place, People Products, Place Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.” Company History McDonald s McDonald’s Bar-B-Que (1940) • World’s 1st McDonald’s • Founded by Dick and Mac McDonald • San Bernadino, CA • D i i & car hop service Drive-in h i McDonald’s (1948) •N Name F Formulates l • Menu develops • 15 Cent hamburger Company Info • Corporate Headquarters: p q – McDonald’s Corporation 2111 McDonald's Dr Oak Brook, IL 60523 • Employees: – Approximately 400,000 McDonald s employees globally McDonald’s – 1.6 million people globally are employed through McDonald’s restaurants and their franchises • Restaurants: – 32,000 world-wide, 118 countries 2009 Revenue & U.S. Stocks k (US only) • NYSE: MCD – Current Price: $64.74 – Change: $0.26 + g (As of 2/16/2010) • • • • 2009 Revenue (mil.)$22,744.701 Year Revenue Growth -3.3% 3 3% 2009 Net Income (mil.)$4,551.001 Year Net Income Growth 5.5% Y N tI G th 5 5% Leadership James Skinner Vice Chairman, CEO Left to Right: Jose...

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Mcdonald's

...fast food restaurant that primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and deserts. Many people just don’t have the time to sit at a restaurant for hours and order food that will cost them a fortune. Everything in New York City cost money and is expensive, opening a McDonalds restaurant in Times Square will give many customers the option of going to a restaurant or just stopping by McDonalds to get something quick and cheap to eat. I will not only provide fast food, my restaurant will also have an entertainment center for children and adults that chose to sit in and eat. In my report I will convince you why it will be very successful and why I decided to open a McDonald’s franchise. I will also give you an overview of my business, its competition, and how I will run it. My McDonalds will not be like any other McDonalds; I’ve worked at McDonalds for a few years as a manager and will take a whole new approach in running this McDonalds. Business Overview I chose to start a fast food restaurant that will not only provide fast food for those on the go but will also entertain those that choose to sit in. I thought of opening my own fast food restaurant but I much rather open my own McDonalds franchise. I opened my own McDonalds franchise through the McDonalds Corporation. My business will be run like every other McDonalds but will be different in many areas. Just from McDonalds reputation ensures the...

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...Running head: Marketing Research Marketing Research Hope Jackson Kaplan University MT355 Kathryn Kelly January 15, 2013 McDonald’s McDonald’s is one of the leading restaurant chains in the world, touching the lives of people every day. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. McDonald's is the world's leading global foodservice retailer with more than 34,000 locations serving nearly 69 million customers in 119 countries each day.  At McDonald’s, we hold ourselves and conduct our business to high standards of fairness, honesty, and integrity. We are individually accountable and collectively responsible. We take seriously the responsibilities that come with being a leader. We help our customers build better communities, support Ronald McDonald House Charities, and leverage our size, scope and resources to help make the world a better place. McDonald’s is a publicly traded company. As such, we work to provide sustained profitable growth for our shareholders. This requires a continuous focus on our customers and the health of our system. We are a learning...

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...McDonald’s Franchising McDonald's was first started in 1940 by two brothers named Mac and Dick McDonald in California. As of 2008, it continues to be a worldwide hit in more than 119 different countries and 30,000 different restaurants (McDonald’s.com, 2008). International franchising is a special form of licensing which allows a firm in another country to be given the rights by the firm in the original country (Griffin, Pustay, 2013). It allows the firm to be able to use the same operating systems, logos, trademarks, and brand names in exchange for a royalty payment (Griffin, Pustay, 2013). In this essay I will be talking about McDonald's, which franchises its restaurants all around the globe. McDonald's as a company considers itself to be a brand franchisor. If someone wishes to buy or purchase a restaurant, they brand the goods to the individual and the store (McDonald’s.com, 2008). McDonald's owns the right to own or lease any site and restaurant building to anyone who can afford it. The franchisee that purchases the rights has it for 20 years from McDonald's. They are also responsible for all the equipment and store fittings (McDonald's.com, 2008). The franchisee must comply with the standards that McDonald's has. That means the layout; brand, menus, design and administration of that restaurant must all fall within the standards. Each McDonald's must have the same type of menus and operating systems through its licensing agreement (McDonald’s.com, 2008). Now each menu...

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