The Expansion Of The Mcdonald 's Corporation Essay

The Expansion Of The Mcdonald 's Corporation Essay

Length: 1145 words (3.3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The explanation for the expansion of terrorism says that terrorists’ have adopted a “franchise model” of expansion. Understanding how businesses expand is a useful way to appreciate the expansion of terrorist organizations. This section studies the business theory of franchise, to exemplify with a case how the franchise model is used to expand. The section also unpacks the advantages and disadvantages in franchise relationships, and examines this with the case of the McDonald’s Corporation. In terms of business franchise the McDonald’s corporation is by far the most successful, which it’s felt that McDonald’s could serve as an appropriate agent for the comparison. Not only was McDonald’s the first US business franchise, but also now McDonald’s has become a symbol for this business expansion model. Rightfully so, however, considering in just 2013, McDonald’s expanded to include 1 400 new locations of franchise, which compared for scale is only 200 restaurants short of Chipotle’s entire chain.
According to the World Intellectual Property Organization (WIPO), franchise operations have grown steadily through the last 50 years, and today account for almost a third of all retail sales. The idea of a “franchise” in business discourse refers to a sub-set of characterizations used to define and describe a formal business relationship between a franchisee and franchiser. The WIPO defines this as “a business arrangement which allows for the reputation, innovation, technical knowledge and expertise of the franchisor to be combines with the work, industry and investment of a franchisee”. In a franchising model, the franchisee uses another business firm’s successful business model and brand to operate what is effectively an independent bra...

... middle of paper ...

...tionships, these commitments are also dependent on sales, which can be independent factors to the work of the franchise owner. The time-duration of these financial commitments is also extremely binding.
Required commitments of resources are two impositions on franchise owners that are a cause of great disadvantage, however, arguably the greatest disadvantage to owning a franchise is the lack of control that franchise owners’ have over brand image. In the event that an international brand was destroyed, local business owners of that franchise – who are unrelated - will be greatly affected. It is important to note this also flows the other way in the direction of the franchiser, whose brand could also be destroyed by the poor performance of franchisee operators. This reliance is a constant source of tension and dynamic of operations in franchise business operations.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about The Success Of Mcdonald 's Restaurant

- History McDonald’s has been a well-renowned corporation for just short of a century by a few decades. The original McDonald’s restaurant started in “1940 as a BBQ restaurant in San Bernardino, California” (McDonald’s History, n.d.). “The McDonald’s drive-in restaurant opened in 1948 as a self-service drive-in restaurant” (McDonald’s History, n.d.). In 1949, McDonald’s now known French fries “make their debut” (McDonald’s History, n.d.). The first location outside of California in Illinois opened up in 1955 with Golden Arches designed by Stanley Meston (McDonald’s History, n.d.)....   [tags: Fast food, McDonald's, Hamburger, Drive-through]

Better Essays
1029 words (2.9 pages)

Essay about Global Business Analysis Of Abc Corporation

- ... A most important collaboration is with Covisint, a subsidiary of Compuware Corporation in India that engages in IT services. Also, FMC has spent up to $5 million in establishing an ICT venture as well as up to $50 million in its ICT venture in India ( As far as the organizational structure is concerned, locals or rather nationals of the foreign host countries are better positioned in managing the multinational companies. subsidiaries in those countries. Such would offer the management structures of ABC a sense of global nature as an aspect of globalization....   [tags: Corporation, Multinational corporation]

Better Essays
973 words (2.8 pages)

Analysis of McDonald’s Corporation Advertising Essay example

- Advertising generally tries to sell the things that consumers want even if they should not wish for them. Adverting things that consumers do not yearn for is not effective use of the advertiser’s money. A majority of what advertisers sell consists of customer items like food, clothing, cars and services-- things that people desire to have. On the other hand it is believed by some advertising experts that the greatest influence in advertising happens in choosing a brand at the point of sale. Advertising appeals to consumers through common images; the logo used is well-designed and there is a clear separation of art from commerce....   [tags: Advertising]

Free Essays
1431 words (4.1 pages)

The Globalization of McDonald's Essay

- A world without the Big Mac, Happy Meals, Chicken McNuggets, and the phrase “I’m lovin’ it,” is almost inconceivable. People around the globe have become accustomed to the high gleaming golden arches that make up the famous emblem for McDonald’s. McDonald’s has grasped the concept that culture flows from power. In this case, the American culture flows through the veins of this fast-food giant and the more that is supplied, the greater the demand. It is no secret that McDonald’s has become one of the world’s largest fast-food retailers....   [tags: Business Analysis ]

Better Essays
2634 words (7.5 pages)

Analysis of Sonic Corporation Essay

- Analysis of Sonic Corporation In 1953 Sonic Corporation was founded by Tony Smith in Shawnee, Oklahoma under a different name of the Top Hat. Tony Smith started the company as a drive-in restaurant featuring hot dogs, hamburgers, and french-fried onion rings. In the mid-50s Smith was asked by Charles Pappe for assistance in establishing a similar restaurant in a rural town also located in Oklahoma. This was the beginning of a partnership between the two men . CURRENT INFORMATION In 1991 Sonic Corporation was the fifth largest chain in the fast-food industry, servicing in the hamburger segment, behind McDonald's, Burger King, Hardee's, and Wendy's....   [tags: Sonic Corporation Fast Food Essays Business]

Better Essays
1503 words (4.3 pages)

McDonald's Case Analysis Essay

- McDonald's Case Analysis I.     Objectives McDonald's mission was to provide customers with quality food at a low price with a focus on the speed, service and cleanliness they received while patroning one of their restaurants. The case focuses on a specific segment of the McDonalds restaurant chain that was opened in 1996, McDonald?s India. This segment of the restaurant giant had a more specific mission/philosophy to fulfill and had developed a special menu for these Indian customers to take into account their culture and religion....   [tags: Mcdonalds business Case Analysis Essays]

Better Essays
1183 words (3.4 pages)

Strategic Management of McDonald's Essay

- PROBLEM IDENTIFICATION The main problem from McDonald's case, McDonald's Polishing the Golden Arches, is how to classify McDonald's strategy through Plan to Win into one of the five generic competitive strategies. Before we solve this main problem, we should determine the chief economic and business characteristics, the five forces analysis, and also the driving forces of the fast-food industry. After that we identify the strengths, weaknesses, opportunities, and threats by using SWOT analysis....   [tags: Business, Case Study, solution]

Better Essays
1147 words (3.3 pages)

McDonalds Corporation Essay

- McDonalds Corporation McDonald’s is the undisputed king of burgers. This has been the trend in the fast-food industry from their creation in the 1960’s to their massive growth in the 70’s, 80’s, 90’s, and now the new millennium. Over the past forty years, McDonald’s has fully taken advantage of their strengths but because of maturity in the fast food industry, more focus will have to be put on opportunities, weaknesses, and threats. Strengths. The first strength of McDonald’s has been their product strategy....   [tags: GCSE Business Marketing BTEC Coursework]

Better Essays
1463 words (4.2 pages)

Swot Analysis Of Mcdonald's Vs. Burger King Essay

- The McDonald brothers' first restaurant, founded in 1937 in a parking lot just east of Pasadena, Calif., didn't serve hamburgers. It had no playground and no Happy Meals. The most popular item on the menu was the hot dog, and most people ate it sitting on an outdoor stool or in their cherished new autos while being served by teenage carhops. That model was a smashing success--for about a decade. Then America's tastes began to change, and the Golden Arches changed with them. As cars lost some of their romance, indoor restaurants took over....   [tags: McDonalds Business Compare Burger King]

Better Essays
1362 words (3.9 pages)

McDonald's Case Study Essay

- McDonald's Case Study Company overview McDonald's Corporation is the world's largest chain of fast-food restaurants, primarily selling hamburgers, chicken, french fries, breakfasts and soft drinks. More recently, it also offers salads, fruit, snack wraps, and carrot sticks. The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant....   [tags: Fast Food Business Analysis]

Better Essays
1579 words (4.5 pages)