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Table of Contents Introduction 3 Key Success Factors 3 Key Issues and Problem 5 Managerial Problem 5 Financial Problem 7 Analysis 8 Financial Analysis 8 Important ratios to notice 8 Current ratio 8 Quick Ratio 8 Cash Ratio 9 Cash and equivalents 9 Goodwill 10 Account Payables 10 Times interest earned 10 Debt Ratio 10 Net Working Capital Ratio 11 Return on Equity 12 SWOT Analysis 12 Strengths 12 Weakness 13 Opportunity 13 Porter 5 Forces 14 Competitors 14 Threat of Substitute 15 Power of Supplier 15 Power of Buyer 15 Alternatives 16 Alternatives analyzed 16 Recommendation 17 Implementation 18 Conclusion 18 References 19
Introduction
McDonald 's Corporation is the world 's largest chain of fast food restaurants, serving nearly 47 million customers daily through more than 31,000 restaurants in 119 countries worldwide. McDonald’s sells various fast food items and soft drinks including, burgers, chicken, salads, fries, and ice cream. Many McDonald’s restaurants have included a playground for children and advertising geared toward children, and some have been redesigned in a more 'natural ' style, with a particular emphasis on comfort: introducing lounge areas and fireplaces, and eliminating hard plastic chairs and tables. Each McDonald 's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations ' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants
Key Success Factors
McDonald’s key success factors have been its franchises. Majority of the total sales comes from sales from franchises. The chains owned by McDonald’s bring in very few of the sales revenue; but it is still significant since 100% of those profits would come
References: New York Times. (2012). How Mcdonalds came back bigger than ever. Retrieved from http://www.nytimes.com/2012/05/06/magazine/how-mcdonalds-came-back-bigger-than-ever.html?src=un&feedurl=http%3A%2F%2Fjson8.nytimes.com%2Fpages%2Fmagazine%2Findex.jsonp