Financial Analysis of Mc. Donald's Corporation for Strategic Management

Abstract

Strategic management is a hypothesis used to determine mission, vision, values and objectives of an organization. Corporations exist to satisfy certain aim, which is referred to as its mission. Every organization has a mission drafted in its mission statement. These are overall objectives of a company which guides its purpose and how to convert its intent into reality. Corporations tend to establish visions to illustrate its ultimate purpose of existence. Then finally goes on to define its strategy to achieve the Mission. To achieve the objective set out in the mission statement, every organisation works to build an effective strategy which cements its overall purpose of existence. The success of an organization is portrayed through its financial position, represented by its Financial Statements. A comprehensive financial analysis of the Financial Statement of Mc. Donald's corporation is detailed below. The analysis shows a great deal of success story in the Hamburger Industry.

TABLE OF CONTENTS

Financial Analysis of Mc. Donald's Corporation for Strategic Management1

Abstract2

DISCUSSION5

CONCLUSION10

REFERENCES11

INTRODUCTION

To consider the topic effortlessly, let's consider the example of Mc. Donald's corporation. Mc. Donald's have its presence in 119 countries with an employee base above 400,000 worldwide. To its added advantage Mc. Donald's is listed in the NYSE giving it room for more growth through access to an enormous fund pool. I have selected Mc. Donald's because of its transnational presence and its information being publicly available due to the NYSE listings. Its Mission Statement reads as follows: (Financial Statement 2011)

“McDonald's brand mission is to be our customers' favourite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which centre on an exceptional customer experience - People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience”. (Mc. Donald's Official Website)

When considering the company's mission it becomes quite clear as to how important a Mission to an organisation. The mission of Mc. Donald's clearly details its purpose of existence and by the progress of the organization it is evident that the company continues to satisfy its existence. Its geographical reach advocates its popularity and acceptance worldwide. It seems that Mc. Donald's has satisfied its customers by providing exceptional services. Similarly the shareholders should be much obliged when considering the corporations performance. Mc. Donald's have said to increase its dividends regularly since 25 years. Although the mission statement does not specify any thing regarding the shareholder's wealth maximization, it can certainly be assumed that through customer satisfaction in its grips, the corporation has severely maximised its earning potential.

Apart from stakeholders mentioned above, Mendelow identified another set of stakeholders in his power interest matrix. These are the pressure groups, which monitor organization activities, which can be lethal to Human and other beings. In case of Mc. Donald's these would be the animal rights groups. Religious hardliners, who would react to campaigns related to sale of Pork in the Muslim world or the sale of Beef in ...