This report has been produced in conjunction with the Case study: McDonalds - A Company Brief, for the purpose of the Strategic Management assessment.
McDonalds is currently the third most recognized brand in Britain and associated with fast food terminology, although in recent times, has moved into different menu choices.
This analysis of the case study will highlight the differentiation and marketing strategy adopted by McDonalds and recommend ways in which to progress. Furthermore, an analysis of the company's financial, corporate and organisational strategic plans has been achieved to ascertain the attractiveness of the brand to investors, employees and interest parties.
3.1 Financial Analysis
The comparison of ratios, either within the firm over time, or against external benchmarks, can be useful for further investigation to a manager and the outside analyst. However, when analysing the ratios, factors such as industry trends, changes within the firm, consumer tastes, technological changes and economic factors cannot be ignored, (Atrill & McLaney, 2003).
For the purpose of this report, consumer trends and the economy are the most important factors. Although natural disasters, acts of terrorism, political stability of the country and trading seasons have hit the restaurant fast food service industry, food retail sales are still increasing by 0.3 per cent, year on year, (People1st, 2005).
To gain a more rounded view of the company, Ashton & Hopper, 1991, states that other types of information that should be disclosed are details of other financial statement amounts such as detailed explanations of long-term debt. Other disclosures such as any possible accounting principle change, business mergers, acquisitions and dispositions, organisational structure, comments on organisational culture, recent corporate paradigm shifts, competitor analysis and market trends must be included.
Finally, it must be noted that all financial ratios and published accounts are...