McDonalds Case Study

Gap - Analysis

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Contents:

|Executive Summary |3 |

|Terms Of Reference |3 |

|Objectives |3 |

|Research Approach |3 |

|Background |3 |

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|2 Main Aims & Objectives |4 |

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|2.1 Product & Market Strategy |4 |

|2.2 Ethical Stance |4 |

|2.3 Environmental Policies |4 |

|2.4 Financial Performance |5 |

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|3 Gap Analysis |5 |

|3.1 Product & Market Strategy |5 |

|3.2 Ethical Stance |5 |

|3.3 Environmental Policies |6 |

|3.4 Financial Performance |7 |

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|4 Recommendations |9 |

|4.1 Product & Market Strategy |9 |

|4.2 Ethical Stance |9 |

|4.3 Environmental Policies |9 |

|4.4 Financial Performance |10 |

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|Appendix |11 |

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|Bibliography & References |14 |

Executive Summary

McDonald's is the world's biggest Fast Food operator, operating more than 30.000 outlets in more than 120 countries. In the UK McDonald's Restaurants Ltd operates 1200 stores, of which 70% are company owned.

McDonald's generally sets the highest standard for itself, yet most are not achieved or public perception differs from that of the company's.

McDonald's is perusing a value strategy offering its products at relatively low prices. They differentiate their products through successful branding campaigns.

Although McDonald's try to maintain an image of high ethical responsibility major gaps have been identified. They manage to disguise a considerable part of these gaps through effective communications. However major gaps remain in terms of working conditions and animal welfare treatment.

Great efforts have been made to create an environmental friendly image, in the outlets and on the supplier side.

The recent financial performance has poor and clearly failing their aim of 'system growth'. Closing this gap will be one of their main priorities. Reducing all other gaps will be essential in closing the financial gap. Findings are set in respect to McDonald's competitors.

Terms of reference

The Research Team of the Financial Times has been asked to conduct a Gap Analysis for the MNE McDonald's Restaurants Ltd. The report will be handed over to Mr A. P. Davies on the 31st of March.

Objectives

Company aims and policies in the categories of Product & Market Strategy, ethical stance, environmental policies and financial performance are stated. Company actions to achieve goals should be recognized. Possible gaps are to be identified and their extent analysed. Recommendations to reduce or eliminate gaps should be found.

Research approach

To gather relevant information our team consulted McDonald's Annual reports, relevant literature, market reports and Internet websites. Also investigated were