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Boston Market

During the past few years, there have been changes within the business, which has had an impact upon their operations and the community. Initially, McDonalds have revised their menu; McDonalds have introduced healthy living items such as pancakes, sandwiches, salads and now use quality cooking oil for their French fries that contain no trans fat, which is harmful for the human body.

This was accomplished after pressures from many campaigners (i. e.London Greenpeace) and individuals for not selling healthy products for children and adults This change will have a favourable impact upon the community as it will help them choose a from a wide range of choice but most importantly it will promote healthy living. McDonalds have purchased three popular businesses i. e. Donatos Pizza, Boston Market & a chain of Mexican restaurants.

As mentioned in the case study, McDonalds need to make some additions to the portfolio i. e.look at each of the businesses menu and try to improvise the ingredients of certain products that have a adverse impact of the community’s health. For example, as they have acquired Donatos Pizza, they could perhaps use very low fat cheese which would contribute towards McDonalds their bit for the community. Furthermore, McDonalds

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have introduced a ‘made for you’ system, with an investment of $400 million, which they believe will increase sales across their 12,700 US restaurants.

From the annual report of McDonalds in 2008, it is clear that the rate if sales increase of McDonalds in USA have decreased from 5. 2% in 2006 to 4. 0% in 2008. This could be as a consequence to the adverse affect of the ‘made for you’ service and hence the rate of sales have decreased. However, the total sales revue of McDonalds has been rising steadily every year and in 2008 their sales revenue was $23. 5bn. Moreover, the number of McDonalds stores worldwide have increased from 31,406 in 2006 to 31,967 in 2008.

Some of the investment was on latest technology that could heat the products in a minimum time frame, to reduce the waiting time. Consequently, after the introduction of the ‘made for you’ system, McDonalds believe that the quality of their products have improved, but the waiting times have doubled and a waiting time of 15 minutes is not unusual. This could, in my opinion, have an adverse impact upon their sales as people would not be prepared to wait long periods as they expect food to be served quickly in a fast food restaurant.

A valid example in the case study informs us that when hordes of people come in at one particular time i. e. end of school, there is an influx of many people at one time and made for you cannot be implemented efficiently due to time restrictions. Another change implemented recently is the ‘McDonalds Experience’ where McDonalds have collaborated with Disney as well as introducing play areas for young children as well as inviting senior citizens to play bingo in some of their stores.

This will have attract a wide range of age groups, from young to old people and hence it would help contribute towards the profitability for the firm through increased customer base Moreover, McDonalds have initiated a concept known as ‘Core offering’, which is incorporating regional changes in different countries. For example, in the US, McDonalds are planning to invest $400 million to renovate every McDonald which is older than 15 years.

This would be costly for McDonalds in the short term, however in the longer term it will help generate more revenue and hence profit, through attracting more customers in the improved stores. Lastly, McDonalds have tried to stay a reputable business through investments in sports coaching projects and this shows their commitment towards the social responsibility. This would appeal to the stakeholders as it would show them that McDonalds are taking initiative to promote healthy eating and exercising habits amongst children.

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