Download pdf
Strategies in Corporate Finance and Risks Assessment to Improve Profitability--Taking McDonald’s as an Example
- 1 Beijing Normal University, Hong Kong Baptist University United International College
* Author to whom correspondence should be addressed.
Abstract
McDonald's has grown steadily since its establishment and has gradually grown into a leader in the fast food industry over the years. How McDonald’s becomes so profitable may be questioned and learned by other enterprises. That is because, throughout the development of McDonald’s, many successful strategies have been used to improve its competitiveness and market share. This paper explores McDonald’s concrete marketing strategy in corporate finance and risk assessment. It is organized as follows: In the first part, the achievements of McDonald’s will be briefly introduced. In the second part, this paper analyzes some specific strategies that McDonald’s has used in its corporate finance. In the third part, this paper discusses McDonald’s strategies to assess its risk. In the end, the successful strategies that McDonald’s has utilized are summarized. This paper can help readers understand McDonald’s experience and how they become so successful.
Keywords
risk assessment, business management strategy, marketing strategy, franchise, McDonald’s
[1]. Han, J.: The business strategy of Mcdonald's. International Journal of Business and Management, 3(11), 72-74 (2008).
[2]. Chen & Hu.: McDonald's risk management in the context of the COVID-19 Modern Commerce and Trade Industry (18), 33-34 (2020). doi: 10.19311/j.cnki.1672-3198.2020.18.017.
[3]. Li, Y.: Strategic Appraisal of McDonald's (2020). https://www.researchgate.net/publication/340601256_Strategic_Appraisal_of_McDonald's.
[4]. Schramade, Willem, McDonald's: A Sustainable Finance Case Study (September 24, 2019). Erasmus Platform for Sustainable Value Creation, September 2019, Available at SSRN: https://ssrn.com/abstract=3459108.
[5]. Shastri, A.: Marketing Strategy of Mcdonald's - A Case Study | IIDE. Iide (2022). https://iide.co/case-studies/mcdonalds-marketing-strategy/.
[6]. Meyer, P.: McDonald's Marketing Mix (4Ps) Analysis. Panmore Institute (2022). https://panmore.com/mcdonalds-marketing-mix-4ps-analysis.
[7]. Eldring, J.: Porter's (1980) Generic Strategies, Performance and Risk. Diplomica Verlag (2009).
[8]. Gregory, L.: McDonald's Generic Strategy & Intensive Growth Strategies. Panmore Institute (2015, October 4). https://panmore.com/mcdonalds-generic-strategy-intensive-growth-strategies.
[9]. Bhasin, H.: Intensive growth. Marketing91 (2015, June 10). https://www.marketing91.com/intensive-growth/#:~:text=Intensive%20growth%20is%20when%20a%20firm%20grows%20by.
[10]. Kenton, W.: Market Penetration. Investopedia (2020, September 26). https://www.investopedia.com/terms/m/market-penetration.asp.
[11]. McDonald's. (n.d.). Governance & Stakeholder Engagement. Corporate.mcdonalds.com. https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/impact-strategy-and-reporting/governance-and-stakeholder-engagement.html.
[12]. None. Supply chain and logistics construction of western fast food chain enterprises Logistics Technology and Application, (08), 102-104 (2013).
[13]. Ma. The reference of McDonald's staff training model to the staff training of Chinese chain catering enterprises - staff training and development research China Business Review (03), 253-254 (2019). doi: 10.19699/j.cnki.issn2096-0298.2019.03.253.
[14]. Hake.: McDonald's Stock Clearly Benefits From Its Large Buybacks: Here Is Why. Seeking, Alpha (2020). https://seekingalpha.com/article/4330606-mcdonalds-stock-clearly-benefits-from-large-buybacks-is-why.
[15]. Pereira, D.: McDonald's Business Model (2022, March 23). https://businessmodelanalyst.com/mcdonalds-business-model/#Developmental_License.
[16]. MarketBeat.: McDonald's ESG Score and Rating (MCD) (2022, December 11). https://www.marketbeat.com/stocks/NYSE/MCD/sustainability/.
Cite this article
Yu,H. (2023). Strategies in Corporate Finance and Risks Assessment to Improve Profitability--Taking McDonald’s as an Example. Advances in Economics, Management and Political Sciences,20,72-80.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).