0 I have been writing an report for school. But I have large problems with the verbs so I hope that someone will help me and check my text!02br
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01a00Introduction02a02h1

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00Here is a brief overview of what is included in this report about McDonalds Corporation.02br
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00McDonalds is the market leader in the fast food sector. Fast food is quickly prepared and served food. 02br
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00 McDonalds had the average number of 54,000,0000 customers each day in 2005. This amazing number of customers has been serviced in 33,000 restaurants in more than 120 countries all over the world (this number has been reached in 2004). In The Netherlands there are more than 200 restaurants. The amount of restaurants is still raising.02br
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00These facts and many information about some Critical Success Factors for McDonalds, the Mcdonalds processes, Key Performance Indicators for McDonalds and measureinstruments for McDonalds are provided in this report for you.02br
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00 We start with some information about McDonalds worldwide and The Netherlands in special. There is information about the history, some products of McDonalds, funny facts about the ´McDonaldisation´ of this world, the brand and we end with some financial information.02br
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00 I know a lot about McDonalds because it has been my employer for more than six years and because of that I have visited the Dutch headquarter many times.02br
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00 I hope that the information provided is interesting for you. 02br
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01a00Information about McDonalds02a02br
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00 First we give some information about the McDonalds history, the products and the financial position of the McDonalds Corporation.02br
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00 McDonalds Corporation is the world’s largest fast food restaurant in the world. It was founded in 1940 by Mac and Dick McDonald in San Bernardino, California.02br
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00 They introduced a special and fast system that has changed the fast food sector for ever. When Ray Kroc visited the McDonalds restaurant he was deeply impressed by this system and he quitted his job as Sales Manager by a milkshakemachine producing company. He bought the brothers out. Then he opened his first McDonalds in Des Plaines, Illinois.02br
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00 After that it went very fast with the amount of McDonalds restaurants. But later there was no more money. Then they needed an inventive way of getting more money to keep growing as fast as they were. Ray Krok came up with the idea of Franchise restaurants. A franchise restaurant is runned by a person who pays for using the brand where he is connected to.02br
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00 Now we see in the whole world 33.000 restaurants, 8.500 are runned by the McDonalds Corporation. The other 26.500 restaurants are owned by a franchiser. These restaurants are spread out over more than 120 countries in the whole world. In the image below it is displayed where McDonalds is active and since when.02br
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01i00Image 1 - McDonald´s is active in the coloured countries02i02br
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00The regular hamburger was already sold in 1940 and is still on the menu. The most famous sandwich is the Big Mac.02br
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00 Image 2 - Regular hamburger and a Big Mac02br
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00 There also is a so called ‘big mac index’. The Big Mac index was introduced by 01i00The Economist02i00 newspaper in September 1986 as a humorous illustration and has been published by that paper annually since then.02br
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00 One suggested method of predicting exchange rate movements is that the rate between two currencies should naturally adjust so that a sample basket of goods and services should cost the same in both currencies. In the Big Mac index, the "basket" in question is considered to be a single Big Mac as sold by the McDonalds fast food restaurant chain. The Big Mac was chosen because it is available to a common specification in many countries around the world, with local McDonalds franchisees having significant responsibility for negotiating input prices. For these reasons, the index enables a comparison between many countries' currencies.02br
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00 The Big Mac PPP exchange rate between two countries is obtained by dividing the price of a Big Mac in one country (in its currency) by the price of a Big Mac in another country (in its currency). This value is then compared with the actual exchange rate; if it is lower, then the first currency is under-valued (according to PPP theory) compared with the second, and conversely, if it is higher, then the first currency is over-valued.02br
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00 For example, suppose a the price of a Big Mac is $2.50 in the United States and £2.00 in the United Kingdom; thus, the PPP rate is 2.50/2.00 = 1.25. If, in fact, the US dollar buys £0.55 (or £1 = $1.81), then the pound is over-valued (1.81 > 1.25) with the respect to the dollar by 44.8% in comparison with the price of the Big Mac in both countries (information as of 2005). (Source: WikiPedia)02br
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01i00Image 3 - The big mac indexof 200402i02br
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00 The Brand Asset™ Valuator Survey (a large brandresearch conducted annualy containing data about 20.000 brands that bases on the opinion of 230.000 respondants in 44 countries) concluded in 2005 that McDonalds was the strongest brand in the world. So McDonalds is a stronger brand than companies like Coca-Cola and Disney. In The Netherlands there were some researches for McDonalds. There were some interesting outcomes: ± 99 per cent of the population between twelve and eighty years knew the company McDonalds.02br
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00 The Brand Asset™ Valuator uses four factors for determining a brand value (source: 12manage):02br
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00 - 01b00Differentiation: 02b00Differentiation is the ability for a brand to be distinguished from its competitors. A brand should be as unique as possible. Brand health is built, and maintained, by offering a set of differentiating promises to customers. And by delivering those promises to leverage value.02br
00 - 01b00Relevance:02b00 Relevance is the actual and perceived importance of the brand to a large customer market segment. This gauges the personal appropriateness of a brand to customers and is strongly tied to to household penetration (the percentage of households that purchased the brand).02br
00 - 01b00Esteem: 02b00Esteem is the perceived quality and consumers perceptions about the growing or declining popularity of a brand. Does the brand keep its promises? The consumer’s response to a marketer’s brand-building activity is driven by his perception of two factors: quality and popularity. Both vary by country and culture.02br
00 - 01b00Knowledge: 02b00Knowledge is the extent of the consumer’s awareness of the brand and understanding of its identity. The awareness level about the brand, and what it means, shows the intimacy that consumers share with the brand. True knowledge of the brand comes through building of the brand.02br
00In the year 2005 the total revenue was $ 20.460 Billion. The net profit was $ 2.602 Billion. The company has 447.000 employees.02br
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00 The McDonalds Corporation's business model is different from other fast-food chains. The most franchise companies in the fast food sector let franchisees pay franchise fees, supplies, and percentage of sales. 02br
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00 The national McDonalds Corporation also owns the ground and the buildings. So the franchisee also pays rent and a percentage of the monthly income.02br
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01a00Explanation of the Critical Success Factors02a00 02h1

00A Critical Success Factor is a term that is used many times in the business world. This is an element which can be used in an organization to achieve its mission. The Critical Success Factor method can be used by companies for identifying the important elements of their success.02br
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00 This concept was developed by D. Ronald Daniel of McKinsey and Company in 1961. Jack F. Rockart has refined the process later in "A Primer on Critical Success Factors", published in The Rise of Managerial Computing: The Best of the Center for Information Systems Research in 1985. 02br
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00 The Critical Succes Factor method is part of the Balanced Score Card , which is introduced in 1992. The Balanced Score Card has evoluated later to the Business Process Management. (source: WikiPedia)02br
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01a00Critical Success Factors for McDonalds02a02h1

00Now we know exactly what a Critical Succes Factor is and what it means we can formulate some Critical Succes Factors for McDonalds. A Critical Succes Factor can be based on many different areas. First we choose some areas where we want to formulate a Critical Succes Factor for and afterwards we formulate the Critical Succes Factors for these areas.02br
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00The chosen areas are:02br
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00Financial02br
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00Customers02br
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00Product development02br
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00 Now we are going to formulate one Critical Succes Factor for each area.02br
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00For the financial area we formulate this one:02br
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01i00A larger turnover on drinks 02br
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00 For the customers area we formulate this one:02br
01i00Less waiting time on the counter02i02br
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02b00For the product development area we formulate this one:02br
01i00Develop new drinks02i02br
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00Explanation of the Balanced Score Card 02br
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00 The Balanced Score Card is a method to display a company's activities in terms of its vision and strategies. It also gives managers a comprehensive view of the performance of a business.02br
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00It is a system that forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, internal process, and learning & growth perspectives.02br
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00The system consists of four processes:02br
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1. 00Translating the vision into operational goals;02li
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2. 00Communicate the vision and link it to individual performance;02li
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3. 00Business planning;02li
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4. 00Feedback and learning and adjusting the strategy accordingly.02br
   00 (source: WikiPedia)02li
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00It can also be used for steering the company. There can be formulated some Critical Success Factors and some accompanying Key Performance Indicators.02br
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00 The total Balanced Score Card uses many things including the Critical Success Factors and the Key Performance Indicators to give a clear view of the choosen department. With this method it is possible for a manager to decide what to change the next year or years to obtain the prescribed values.02br
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01a00Functions and Processes02a02h1

00 The primair function of McDonalds is sell food. Other functions are financial and personal. 02br
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00 The financial function is because of that McDonald´s is a company who want to earn as much money as possible. This money is needed for many goals. The research department is enormous. They continuous try to improve the products and invent new products. McDonald´s is the owner of the buildings and ground of all the restaurants in the world. When they will grow they need money to buy ground and build restaurants on it which can open his doors. McDonald´s also has to deal with shareholders who always will see good results and with franchisers. Franchisers will see good results, advertisements and a good total revenue and netto income. So there are many reasons for the McDonald´s management to take care of the financial results of McDonald´s.02br
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00 The personal function is because McDonalds provides tasty food for everyone who likes this and because of that it provides work for almost 450,000 people.02br
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00 The supporting processes are: purchasing food, advertising, accommodating customers and finding employees.02br
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00McDonald´s sells very much products. So they have to purchase very much also. Further they can get interesting discounts by buying large amounts of products. It is also very important for a big and respected company as McDonald´s to get guarantees about the quality of the products which they are buying.02br
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00Advertising is very important, not only because of the brand strengthness but also because of attracting people to the McDonalds restaurant. The franchisees also pay for a good advertising campaign which interest potential customers.02br
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01a00Explanation of the Key Performance Indicators02a02h1

00A Key Performance Indicator is a financial or non-financial method which is used to quantify objectives to reflect strategic performance of an organization. This is just like a Critical Succes Factor a part of the Balanced Score Card (for more information: see page 9). 02br
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00Key Performance Indicators are used in Business Intelligence to assess the present state of the business and to prescribe a course of action. The act of monitoring Key Performance Indicators in realtime is known as business activity monitoring. 02br
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00Key Performance Indicators are frequently used to value difficult to measure activities such as the benefits of leadership development, engagement, service, and satisfaction. (source: WikiPedia).02br
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00 For a Critical Succes Factor we can formulate some Key Performance Indicators who must be Smart formulated. 02br
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00 Smart formulated means: Specific (w01i00hat02i00 are you going to do?), Measurable (e01b00stablish concrete criteria to make the progress measurable)02b00, Achievable (It must make you feel 01b00you can do it and it will need a real commitment from you)02b00, Realistic (01b00Set the bar high enough for a satisfying achievement but it must be realizable)02b00 and Time-bound 01b00(02b00Time must be measurable, realizable and realistic)00.02br
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01a00Key Performance Indicators for McDonalds02a02br
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02b00For the money area we have formulated this Critical Succes Factor: A01i00 larger turnover on drinks.02br
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02i00For this Critical Succes Factor we now can formulate some Key Performance Indicators. We have formulated these:02br
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00- 01i00Make an average of 5% more profit on the total monthly amount of sold drinks in three years.02i02br
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00- 01i00Succeed an extra discount of 3% on contracts with manufacturers who have expired in one year.02i02br
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00- 01i00Sell 20% more large drinks in one year.02br
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00For the customers area we formulate this one: 01i00Less waiting time on the counter.02i02br
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00For this Critical Succes Factor we now can formulate some Key Performance Indicators. We have formulated these:02br
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00- 01i00Total waiting time from joining the queue untill paying must be lowered by 5% in 3 years.02i02br
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00- 01i00Open 5% more pay desk in hours in one year.02i02br
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02b00For the product development area we formulate this one: 01i00Develop new drinks02i02br
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02i00For this Critical Succes Factor we now can formulate some Key Performance Indicators. We have formulated these:02br
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00- 01i00Develop one new drink which will be sold in the stores each year.02i02br
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00- 01i00Every restaurant needs to have a milkshakemachine in 3 years.02i02br
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01a00Conclusion02a02h1

00 The conclusion is that McDonalds is a large and succesfull company with a large revenue and net profit. So a change is not really necessary. But a listed company is always trying to gain more net profit. To gain more net profit McDonalds must change some things. Beside this it is necessary to change continuous to prevent yourself from being catched up by your competitors.02br
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00 The suggestions made are those:02br
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00- 01i00Make an average of 5% more profit on the total monthly amount of sold drinks in three years.02i02br
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00- 01i00Succeed an extra discount of 3% on contracts with manufacturers who have expired in one year.02i02br
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00- 01i00Sell 20% more large drinks in one year.02i02br
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00- 01i00Total waiting time from joining the queue untill paying must be lowered by 5% in 3 years.02i02br
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00- 01i00Open 5% more pay desk in hours in one year.02i02br
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00- 01i00Develop one new drink which will be sold in the stores each year.02i02br
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00- 01i00Every restaurant needs to have a milkshakemachine in 3 years.02i02br
00They can al be checked after a period and then it will be possible to see if the suggestions has been taking affect. If this has been taking effect than it is a success and some new Key Success Factors or even Critital Success Factors can be formulated. If it has not been taking effect than this action has costed not so very much money because of that allmost all the suggestions are realizable without big expenses. So the conclusion is that McDonalds must try this!0-