MCDONALD'S

McDonald's

Abstract

This research paper will focus on the conflicting accounting principles at the McDonald's. The paper will highlight the significance of accounting practices. Furthermore, the paper will discuss the underlying accounting related problem at the McDonald's and recommendations will be proposed as an alternative course of action.

McDonald's

Background on the Company and Its Strategic Objectives

McDonald's is a restaurant chain of fast food. Its main products are the burgers, sandwiches, fries, breakfast menus, drinks, smoothies, desserts and, recently, salads and fruit. In most restaurants have included several children's play areas. Serves approximately 47 million customers a day.

In 1940, brothers Dick and Mac McDonald decided to create the company, entering the fast food 8 years later. But his leap was in 1955 with the first franchise, taken by the executive Ray Kroc.

Over the years it has been extended to be one of the restaurants with a greater presence in the world, becoming a symbol of the United States, the fast food, capitalism and globalization. McDonald's is the fast food chain in the world and provides a variety of sandwiches, snacks and other products. Since 1999, the company "McDonald's" is the market leader in catering. These results were achieved through a strong brand and total sales, which amounted at that time, 35 billion dollars. Of the total number of restaurants (25 thousand) of approximately 80% were in franchising in 5000 owners worldwide (Arvedlund, 2005).

Over the past 10 years the company increased sales by an average of 8% per year, while return on equity "McDonald's" stood at 20%. The company "McDonald's" focus on franchising license only proactive, experienced entrepreneurs with a good reputation. Corporation specifically prepares them to actively promote its brand in the field.

Corporate image is always maintained as the sample quality, purity and high-value customers with an active campaign in the media and special events. Ronald McDonald doll always contributes to the popularity of the brand among children.

Thus, we can determine that the main strategic priorities of the company are considered to be:

1) Ensuring sustainable growth;

2) The impeccable customer service;

3) Maintenance of the status of effective and quality products

4) Improvement of qualifications of staff at all levels;

5) The exchange of experience between the restaurants located in different countries;

6) The continuous improvement of the principles of the theory of fast food;

7) encourage the creation of new dishes;

8) Innovation in designing new equipment;

9) Improving marketing concepts;

10) Progress in the organization of services and technologies.

The Industry Environment

The industry environment is the competitive landscape in which the company participates. McDonald's had few competitors when it entered the market in the 1950s; the company defined fast food in the United States and later around the world. Today, however, the industry environment is vastly different. Competitors use a franchise system similar to McDonald's own, so it is not difficult for franchisees with experience at McDonald's to join a different fast food organization. McDonald's has been slow to respond to competitive pressure or to accommodate the changing needs of its franchisees, and so some defections have ...