Analyzing McDonalds Case Study - 275 Words

Analyzing McDonalds (Case Study Sample) Content: McDonald's Research ProjectStudent's NameInstitutionAbstractThis paper analyses McDonald's fast food restaurants in terms of its market presence, profitability levels, competition that the organization faces and general industry and economies in which the restaurants operate in.Keywords: growth, profitability levels, competition, industryMcDonald's Research ReportIntroductionHeadquartered in Oak Brook Illinois, McDonalds Corporation is the world's number one food chain that serves about 50 million customers daily. The company licenses and operates more than 31,000 restaurants (Toivanen, Waterson, Centre for Economic Policy Research Great Britain, 2011).Product Lines; Industry ClassificationThe product lines of the company includes hamburgers, chicken, fish, French fries, pork products, soft drinks and health items like deserts and salads. In a more general perspective, the company operates in a food service industry.Area of OperationsMcDonalds Corporation franchises and also operates restaurants under McDonalds brand in the food service industry. The restaurants are either operated by franchisees or by the company itself (Toivanen, Waterson, Centre for Economic Policy Research Great Britain, 2011).Annual Sales/EarningsThe organization earns increased sales in comparison to other organizations, within the same industry, due to the relatively lower product cost and a stronger brand. It also enjoys immense franchise model due to the fact that it owns vast amounts of land and buildings in which the restaurants operate in. The company's recorded earnings for a five year period are shown as below;2008 2009 2010 2011 2012 $ 20,895 $ 22786 $ 23522 $ 22744 $ 24076 Market CapitalizationThe company is listed in the NYSE and has a market capitalization of $ 95.62 billion (Zukovski, Syddansk Universitet, 2013).Trends in Company's ProfitsIn the past 10 years, McDonald has had its revenue increase at the rate of 5.44 %. For instance, within the previous ye ar of 2012, the revenue increased by 5.86 %. This increase can partly be attributed to the 541 new restaurants that were opened in the course of 2010. Also, the profits are derived from the increased sales that the organization has enjoyed over the years (Zukovski, Syddansk Universitet, 2013).The operating margin and net margin increased in the year 2012 to 35 % and 25 % respectively as compared to 33 % and 20 % in 2011 respectively. The trend for the other years from 2001 to 2010 is as shown bellow (Zukovski, Syddansk Universitet, 2013).Future Growth ProspectsThe company aims at focusing more on Chipotle Grill, a successful non-McDonald branded chain of restaurants that has been acquired by the company. The company also aims at increasing profitability by slowing down on its further expansion projects in restaurants in order to refurbish and change the image of its current restaurants and add such more features as free-internet access (Gilbert, 2011).McDonald has plans for intern ational expansion; the company intends to penetrate in other countries like Asia, Europe and Latin America. Since the adoption of healthier eating style, the company introduced more acceptable and newer premium salads for its customers. The company continuous to conduct extensive research and innovation activities in order to fairly meets the needs of the customers.Summary RecommendationThe company needs to reduce its training costs and employee turnover. This can be achieved through employing only those individuals who are highly motivated. This will ensure that they will be loyal to the organization, stay for a longer period without seeking employment elsewhere and thus, enhance the realization of the company's goals and objectives. The new employees can as well be oriented by existing employees in order to impact them with enough experience and skills. This will immensely reduce training costs that would otherwise been incurred by the organization. Accordingly, employees should b e motivated and their expectations taken care of in time. This can be attained by way of paying premiums to employees who deserve them. Also, management should recognize good skills amongst employees and reward them (Toivanen, Waterson, Centre for Economic Policy Research Great Britain, 2011).Notwithstanding, the organization should take advantage of the popularity of the organic food industry. This can be affected by including in their respective menus organic foods. It is important to realize that most customers desire for natural foods however expensive it may be. This will ensure that the company records more profits out of increased customer loyalty and a subsequent intensive customer-base.The company should also take advantage of the impending health situations of their customers and thus, customize their food to what is recommended by nutritionists (Gilbert, 2011).Rationale behind the RecommendationsThe above mentioned recommendations are aimed at increasing customer base an d also, their immediate loyalty to the company. This, in turn, will increase and enhance profitability of the organization leading to its growth and expansion.General Assessment of Economic TrendsThe organizations operating within fast food industry are not, in any way, exempted from possible problems and disputes. The industry experiences problems that reflect on involved business models. The numerous networks and branches of McDonalds have, over a long period, experienced problems and operational difficulties. This is in respect to the situations where the economies of the states that the organization operates in are experiencing changes in exchange rates and are prone to inflation tendencies. Therefore, customers face a lot of difficulties in making their budgets in order to try and adjust to the ever-changing economies. Drawing from this reasoning, these chains need to work out on how to respond to and mitigate these problems and thus, ensure that their sales are not affected. In such situations, most of the raw materials used should be imported in order to ensure that there is no delivery slack and also, enjoy reduced costs (Toivanen, Waterson, Centre for Economic Policy Research Great Britain, 2011).Interest Rates and InflationThere are a myriad of factors that are affecting the immediate operations of the restaurant. The major of these factors being economic forces. It is worth to note that disposable income is one of the fundamental factors that influence the decision making capabilities of the organizations on a daily basis. The interest rate changes are one of the economic factors that the company must deal with. This is because; the interest rates determine the amount of cash that the firm's customers are willing to spend on its products and the much that they are willing to invest within its stocks. It is important to realize that the changes in the stock markets affect the organization's stocks as well (Smith, 2008).Consequently, inflation also affects the organization. For instance, it is argued that when there is a lot of cash circulation in an economy where the restaurants operate, it translates to increased demand. This, in turn, leads to increases in the prices of raw materials used in producing food. This has an effect of increasing the prices of the foods offered in order to offset the costs incurred. Thus, the organization is obligated to cushion itself against the effects of inflation by ordering raw materials from economies that have not experienced worse inflationary tendencies and interest changes (Smith, 2008).DemographicsThe organization indulges in providing fast food services to a variety of consumers majorly in big cities with dense population. It is also worth to note that the organization has allowed its customer base a chance to make choices on their food requirements. The elderly are the major beneficiaries of this privilege as they are allowed to make special orders not included within the menu (Gilbe rt, 2011).Political FactorsThe company's international business operations are conducted under the separate-state policy that is authorized by the separate governments. Most notably, it is should be understood that numerous markets depict unique aspects of their worker's health, protection and also, their environmental welfare. All these aspects are regulated by the relevant state control and licensing boards placed within the aforementioned separate governments. Recently, activists groups in both the United States and Europe demanded that the acts of government authority should also concern itself with the medical values of fast food meals. It was categorically emphasized that such harmful components as cholesterol and fat concerns should be reduced in fast food products (Toivanen, Waterson, Centre for Economic Policy Research Great Britain, 2011).Impact of Economic Trends on Stock Price and Industry Growth ProspectsThe Organization has demonstrated increased economic growth sinc e its revenue has been increasing at the rate of 5.4 % for the last 10 years. This growth has led to the growth of the company's stock within a five year period (Zukovski, Syddansk Universitet, 2013).On the contrary, due to numerous inflationary tendencies there has been an adverse impact on the company's stocks and other stocks within the industry causing a drop on their respective prices. This is because in the course of inflation, most investors assume that organizations may hold back from conducting growth-spending activities. This, in turn, has the effect of causing a decrease in revenues across the board since increased food prices translates to poor stock prices.High interest rates also have a negative impact on the stock prices of...

Democracy in Australia and the Rule of Law Research - 1650 Words

Democracy in Australia and the Rule of Law Research (Research Paper Sample) Content: NAME:STUDENT NUMBER:STUDENT ID:WORD COUNT:PLAN: 143ESSAY: 1483PlanThe effects of lack of democracy and the rule of law is a problem that does not discriminate, whether you are a corporation or a start-up, rich or poor, educated or illiterate, employed or unemployed.In this short essay, I will be discussing the above proposition. To articulate it, I will examine the effect on society democracy and the rule of law may/may not have, providing a balanced view. ACritical analysis of democracy and the rule of laws relationship to the Australian Legal System will be examined. This will also focus on the Application of fundamental principles of the law from a business perspective in Australia. I will then finalise with a summary of my arguments.The biggest problem I have faced so far is the ability to pick and choose appropriate material. I aim to complete this work before week 2. Week 3 will be utilised for proof reading and rectifying it. Additionally, Week 4 will be utilis ed to ensure proper formatting as per the Deakin Harvard reference guide has been followed and for submission too.THE ESSAYIntroductionDemocracy in Australia and the rule of lawThe term Democracy has its causes in the Greek dialect. It consolidates two words: "demos" which means entire native living inside a specific city-state and "kratos" which means power.[Held, D 1987 Models of Democracy, Stanford university press p. 37] It is concurred that liberal democracies rule systems depend on four primary standards: Some trust placed on a people, since people are accepted to be good and reasonable; faith based upon reason; advancement in life: taking into account the conviction that development and improvement is the regular state of humankind; A faith in the society that is consensual: taking into account a longing for co-operation and not turmoil and life struggle. Finally it involves a belief in shared force: in view of a suspicion of concentrated force whether by people, groups or go vernments.The rule of law is a legitimate rule providing that law should represent a nation, rather than being administered by subjective choices of specific government authorities. It essentially adverts to the result and power of legislation in society, especially as an imperative aftermath, inclusive of the conduct of state authorities.[Garner, Bryan A. 2009 (Editor in Chief). Black's Law Dictionary, 9th Edition, p. 1448] As such it can be said that the rule of law and democracy are tantamount to each other. This is because; the rule of law seems to be a component of democracy. In a democracy, there should be a set of laws that should be followed by everyone irrespective of their rank. This is enhanced under democracy by ensuring the system of checks and balances.The Democratic and rule of law FrameworkA liberal democracy system is composed so as to characterize and point of confinement power to advance the legitimate government inside a structure of equity and freedom. There are four basic components to the system:These include legitimacy, justice and power. For legitimacy, a lawful government is one that has the legitimate power to be in charge. This as a rule means a high level of well known backing as exhibited by a free electorate and incessant decisions. For justice, Justice is accomplished when nationals live in an environment in which all residents are dealt with similarly and agreed nobility and appreciation. This may happen in a delegate majority rules system that is tempered by constitutionalism, cumulative vote and limitations on force.For freedom to be deemed to exist there must be the right for self determination, capacities to choose between different alternatives that may exist, the autonomy to do what is lawful, and a general respect for political liberties. Finally on power, the government must have the legitimate use of power as available and not to exceed it (Museum of Australian Democracy, Para 1 to 9).[Museum of Australian Democracy (n .d.) retrieved on 8th August 2016 from http://moadoph.gov.au/democracy/defining-democracy/ Para. 4] How democracy and the rule of law manifest itself in Australia.This it demonstrates itself in Australia by having various matters at hand. First is the use of direct democracy in Australia and this is seen by the use of referendum to change the constitution. There is also the representative democracy where in Australia it is majorly done by political representation for example in the house of assembly.[Held, D 1987 Models of Democracy, Stanford university press Chapter 3.] However, for the representative democracy, some people have laid a critic to the process since it is majorly indirect. These they have blamed it saying that it has caused some sort of window dressing.[Heywood, A. 2004. Political theory, Palgrave Macmillan p. 132] Though bicameralism is thought to be one of the causes of undemocratic processes in Australia, Bicameralism was a built up portion of Australian constitut ional practice. Before Federation, the combination of dependable government and federalism was in a few quarters thought to make a potentially unsteady half of the government.[Emy H and Owen H 1991 Australian Politics realities in conflict. Palgrave Macmillan. p.195] Effects of democracy and the rule of lawOn the economy, expanded democracy government foster economic flexibility and these argumentations are like the contention that democracy encourages financial development. To begin with, some contend that, rather than the contention view, just a legislature with some authenticity would have the capacity to stand by arrangements with short run costs.[Haan, J. de and C.L.J. Siermann 1995 New Evidence on the Relationship Between Democracy and Economic Growth, Public Choice 86, pp175-198] Democracy based administrations can be accepted to have more prominent authenticity on account of the political and common flexibility the framework permits the general population to have. Second, a large number of the establishments required in a vote based system are likewise the wellspring of a fruitful financial liberalization, for example, a free lawful framework, an expert common administration and stable property rights.To citizens, it has the effect as already expressed; the nationals in democratic state are given the power to vote premised on different issues, especially the ones who represent the citizens they are supposed to be accountable for making certain choices. E.g. the president of a state. It can enormously shield the citizens from an occurrence they would not wish for.For businesses, the government does business and without it, it would mean that the government would be engaging in businesses and without requiring any competition. Thus a monopoly and this would mean that the presence of democracy would mean the absence of.[Fidrmuc, J. 2000. Liberalization, Democracy and Economic Performance During Transition, ZEI Working Paper No B52000 p. 21] For the state it means a stable and responsible government. At the point when there are elected representatives, a more dependable government is framed. In this way, the Democratic system can be generative and solid. Its organization is managed and directed with a feeling of commitment, and individuals under this framework are concerned about making the best choices.[Green garage 2015. 16 advantages and disadvantages of democracy. Retrieved on 8 August 1992 from http://greengarageblog.org/16-significant-advantages-and-disadvantages-of-democracy Para 1-9] Thus it can be said that the rule of law and democracy have a positive effect as seen above. However as noted earlier on the issue of representative democracy, it can never be said to be absolute democracy. This is because of the fact that this type of democracy is more indirect and thus seen as a mere permission seeking from the voters for their votes in order to be represented. Heywood as Rousseau notes that this type of democracy is more of slavery to the citizens.[Heywood, A, 1997. Politics Basingstoke, England Macmillan. P 198] The other problem is the negation of those elected of the needs of the masses to their own advantages. This is majorly based on the fact that they foresee not being elected to the same positions again. They thus take the advantage to plunder public resources and engage in corrupt behaviour. Democracy and the rule of law relating to say election leads to loss of time period while making laws and needs money to be used at the voting process. Additionally it is to a higher degree potent that the nation will be dictated by careless leaders who will just use community funds for their benefit.The biggest problem is the idealism that majority wins. This leads to issues related to certain disadvantages such the election into office of people who are illiterate or whose ethics is questionable. On this the rule of law relating to election for example and coupled by democracy insists on declaring the ma jority the winners. It insists on...