Economic. In Past Years, Mcdonalds Have Shown The Ability

Economic: In past years, McDonalds have shown the ability to often adjust and perform effectively to any economic/financial climate. This is due to when there is an economic downturn, consumers living on a tight budget in a bad economy often turn to fast food chains for inexpensive meals. For example, within Europe, where stressed consumers are still pulling back, McDonald s notched 6.9 percent same-store-sales growth in 2009 s second quarter. Thereby illustrating of a maintenance of long term economic growth for the company. Social: McDonalds has seen its public image decline as society in general becomes more health conscious, and due to the fact that there is increasing figures of increased childhood obesity, means McDonald’s†¦show more content†¦Increasing business automation, from service tills, to stock control, training, research, administration and office work, business might make a considerable measure that s only the tip of the iceberg troublesome will behaviour without the utilization of machines and the fast progresses continuously aggravated should enhance benefits of the business for all zones. This the greater part dives under giving work to a stress spare and effective administration The point when clients request their meals. Competitive: Strengths of the hierarchy is McDonald’s Cheat prices is McDonald’s main competitive advantage. The company is engaged in an extensive utilization of economies of scale to achieve the cost advantage. McDonald s economies of scale benefit the company in various ways in its international endeavours, including: the fact that its uniform menu offerings can be mass produced, lowering production costs; the company s bargaining power with its suppliers lowers its input costs and boosts margins; the company s large advertising budget gives McDonald s a significant competitive advantage over its competitors. Presently 60% of McDonald s sales occur outside of the U.S. In my opinion, by tapping into this growing global middle class the company s international operations will continue to post strong same store and new store sales growth overall into the next decade. As a way of competingShow MoreRelatedMcdonalds Stock Valuation4177 Words   |  17 Pages443 McDonalds Valuation Project Write Up To begin the economic analysis of McDonalds, we must first look at the company beta. 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