Question

Write a business model. this should be formal and includes:

Title page Table of contents Mission Statement Executive Summary

y Description of product/service Production/Manufacturing (if applicable)

Answer 1

Business model of McDonald:

Table of contents:

Mission statement, business segments, background story, business model.

• Mission statement: McDonald seeks to provide high quality fast food items to the consumers around the world through convenient & efficient sales channels & at affordable prices.
• Business segments: McDonald has four different business segments which is arranged by its geographic markets:

• US: this is the company’s largest segments which comprises of its domestic operations.
• International lead markets: this includes company’s operations across established markets like Australia, Canada, France, Germany, UK etc.
• High growth markets: this includes countries like china, Italy, South Korea, Poland, Russia, Spain etc. where the company believes it has high restaurant expansion & franchising potential.
• Foundational markets & corporate: this includes other markets where the company believes it has the potential to operate large franchise model & various other corporate activities.

• Background story: McDonald’s history can be traced back to 1940 where it started with a bar B-Q restaurant by Richard & Maurice McDonald. Then in 1948 it closed & opened a self service drive in restaurant serving burgers, potato chips, soft drinks etc. the company then added French fries & triple thick milkshakes to its menu in the following year.

The company then opened its first franchised restaurant in 1955 & in 1965 controlled more than 700 restaurants in the US.

McDonald’s is one of the largest, most recognizable, and most popular fast food chains I the world. The Company is ranked 109th on the Fortune 500 list and 189th on the Forbes Global 2000 list. It trades a portion of its shares on the New York Stock Exchange and has a current market capitalization of $101.94 billion.

• Business model:

• Customer segments: the company caters to broad range of consumers of different demographics. The restaurant is also a popular meeting place for various consumers as a result of which it adds more health conscious items to its menu. As a result of which McDonald is considered as a global brand.
• Value proposition: the restaurant adds value to its customers in the following ways:

1. The company controls core financial reserves & market share in its core operating jurisdictions.
2. It has a global network of outlets which helps in serving the customers quickly & efficiently through outlets & also delivery in certain markets.
3. It also offers a wide range of food items in order to meet the demands of its consumers.
4. It also has a good supply chain & quality assurance systems.

• Channels: it has a website through which it provides information regarding its menu, deals, operating locations & also food standards. It also offers mobile app through which customers can access deals & discounts. It has a total of 35,000 restaurants comprising of 6,444 outlets & 30,000 franchised restaurants which are operated by independent franchise partners
• Customer relationships: it offers products on self service basis through its online delivery services. Customers can also directly interact with the sales personnel regarding the menu or to lodge any complaints. It also maintains good relationship with its customers through social accounts like facebook, twitter, instagram etc.
• Cost structure: McDonald’s incurs costs in relation to the development of its products and intellectual properties, the procurement of supplies and services, the operation and management of its network of restaurants, the maintenance of its IT and communications infrastructure, the implementation of marketing and advertising campaigns, the operation of its distribution infrastructure, the management of its partnerships, and the retention of its personnel.
• Revenue streams: it generates revenue through sale of food & beverage items across its network. The revenue is derived in the form of over the counter sales fees. The remaining revenue is derived through franchised revenue.