Analysing Mcdonalds Essay Example for Free

Analysing Mcdonalds EssayI c) The competitor I choose is Sonic Corp. , their competitors ar 1) Burger King, 2) McDonalds and 3) Whataburger. The number one financial ratio calculated was the current ratio. The attention percentage is . 93, McDonalds current ratio is 1. 14 and Sonic is 1. 72. Both companies have ability to digest back their short liabilities with their short-term assets. Debt to Equity McDonalds . 75, Sonic (-172. 3) and the persistence 1. 00. Sonics short-term debt has gone up from 22. 9 in 2007 to 57. 5 in 2009 and the long term has gone subdue from 727. 2 in 2007 to 683. 4 in 2009. Their Owners Equity has been in the red in 2007 it was (-106. ) and slowly has decreasing to (-4. 3). Gross Profit Margin McDonalds 38. 65, Sonic 33. 11, and industry 31. 74. Both companies are about average. The gross profit margin has been stable for the past trine forms and had not fluctuated off the beaten track(predicate) from the industry median. Net Profit Margin MCD 20. 01%, SONC 10. 29% and industry 2. 99. McDonalds is keeping above the industry average on every dollar of sales a company earns.Sonic has been having some pain in the ass keeping above water. For ? in Sales and ? in Net Income Growth the formula I utilise was (B-A)/A*100 or (new old )/old times 100. ? in Sales both companies growing sales in the stratum 2008 but then a slight decrease in the stratum 2009. ? in Net Income Growth Where as MCD has double in net income in the last three years, going from 2395. 1 in 2007 to 4551. 0 in 2009, SONC has decline in net income. In year 2007 it was at 64. 2 and now in 2009 it is 49. 4.II a) When I found out that we were going to be studying McDonalds for this semester, I could only think about hamburgers and coffee. I never gave it a purpose that a fast food restaurant would have deal with environmental, social, economic or political responsibilities. In our text book Strategic Management Concept by Fred R. David (2010), strategies is defined as the means by which long-term object glasss lead be achieved. Well McDonalds has definitely achieved more than its share of objectives in the past years.Even at the beginning of MCD, Ray Kroc, the businessman who bought McDonalds from the McDonald brothers, had a long-term objective for that restaurant. He wanted MCD to be the most successful fast food operation in the world. And year after year he has achieved this by continuously surpassing its competitors, supporting the local community and school to provide sustained profitable growth for our shareholders. II b1) Economic Forces Unemployment rate of 9. 5%. While mammoth corporation are downsizing and cutting jobs, MCD is hiring.Breakfast sales are declining due to the unemployment rate. Dollars value on Market Watch (July 17, 2009) with William Spain he wrote that with the economy going the way it is going, people will keep spending more on fast food than at family-style restaurants, often because they also i mpression they are no longer sacrificing quality to save money as fast food fetter add new products that taste better and are seen as healthier and fresher than ever before. Social, Cultural, Demographic, immanent Environmental Forces Working Globally on animals welfare.Green Restaurant Design, the MCD in Denmark is the first hydroflurocarbon free restaurant. Political, Govt. Legal Forces In 2001, Eric Schlossers book Fast Food Nation includes criticism of McDonalds business practices and alleges at MCD used its political influence to increase their own profits at the expense of the health of the res publica and the social conditions of its workers. Children obesity problem. Technological Forces Offering free WiFi hotspots. Competitive Forces New drive-thur layouts to better go time.