Changing Scenario Of Mcdonalds Corporation Commerce Essay


McDonalds is one of the leading global fast food services that have more than 31000 local restaurants and serves more than 58 million people in 118 countries daily. McDonald's restaurants are run by either franchisees, affiliates, or the corporation itself. Most of its revenues come from the rent, royalties and fees paid by the franchisees and form sales in company-operated restaurants. The business of McDonald's begun in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. McDonald's products include hamburgers, cheeseburgers, chicken products, French Fries, breakfast items, soft drinks, milkshakes, and desserts. McDonald's started its first restaurant in the United States, Canada, Costa Rica, Japan, the Netherlands, Germany, Australia, France, El Salvador and Sweden in order of openings.

Rights, conflicts and responsibilities

Employee Rights

McDonald's is the biggest food-service retailer in the world and it is employed 4, 00,000 people in approximately 119 countries. This company always tries to give more attention on maintaining their employee rights. Some significant employee rights are given below:

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To protect the health and safety of employees at work

To encourage personal development of employees

To grip progressive work practices

To assure the employees' job security

To evaluate the employees' on the basis of their working performance

To pay primary career's leave


McDonald chases different procedures to solve their internal conflicts. It may be in between employees and McDonald or it may be in between a third party and McDonald. Actually, they faced various problems for their internal conflicts such as when they launched several new products then it didn't catch on with consumers, franchise operators blamed corporate managements and corporate executives blamed the franchise operators for the problems the company was practiced. Furthermore, McDonald's abortive to recover operations, such as fast wait times for food, and custom orders.

Employee Responsibilities

Quality Assurance Department

McDonald's quality assurance department tries to maintain their international quality standard. This department also ensures their all requirements set out in McDonald's International Food product Specification just because ensuring the products quality is their main business strategy for attracting the customers.

Supply chain management

McDonald's supply chain management system is well-organized. They drive their business globally by using effective supply chain systems. McDonald's employees create an innovative supply chain that profitably defers high quality, safe products without supply disruption while leveraging their leadership position to generate advantage by improving the ethical, environmental and economic outcomes.

Franchise Department

McDonald's restaurant operated its business globally by franchising action. It is also responsible to the franchisee such as: provide training facilities without cost, sharing their business policy with franchisee, giving management expertise, solving the capital requirements, involving with structural controls and so on.


U.S. Franchises

Canadian Franchises

Other Franchises

McDonald's Owned





















Table 1: Number of Franchises in different countries

Source: Entrepreneur, 2009. McDonald's. [Online] (Updated 25 Dec 2009)

Available at:

Marketing Department

The marketing department of McDonald communicates sensibly with their consumers through providing better service. This department spotlights on some responsibilities such as taking an accountable approach to marketing and advertising, helping consumers make healthier choices in their diet.

Branding Department

McDonalds' is the most influential brand name in the world. Company's brand promotion is done both internationally and locally. Different branding plans are followed to preserve and enlarge the brand position. Its branding department is one of the most sophisticated Branding departments of the world.

Finance Department

MacDonald's has a physically powerful finance department. It has a universal audit system which ensures the sound financial circumstance.


McDonald's marketing strategy shaped in order to establish the means by which a set of clear objectives to be met. It is connected with market share, sales, reaching the target spectators and creating attentiveness in the marketplace. McDonald Corporation had broken down long-term goals to achieve into short-term measurable targets which is using as milestones along the way. This type of response permits the company to modify plans and allows flexibility. Generally, McDonald uses Penetration strategy which helped them for raising the sale of product to organization's existing customers by charitable some extra effort or offer. McDonalds want to amplify its coffee line in China and North America by increasing advertisement. Moreover, they are taking this strategy for increase its market share.


Figure1: the 9th year's turnover of McDonald's Corporation


Turnover (Times)

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Table 2: the 9th year's turnover of McDonald's Corporation

Source: McDonald's Corporation, 2009. Annual Report 2008-2000. [Online] (Updated 22 Dec 2009)

From the bar diagram I oversee that McDonald's turnover (times) was highest in 2004. So, their sales growth increased during that year. But in the following year, their turnover is continuously decreased. And in 2006, their turnover obtains the lowest position that means their sales growth goes least. I observed that their turnover was growing in between 2006 to 2008. As a result company's sales growth also expands. At last, McDonald's corporation are trying to attain the uppermost place again & also trying to grasp the global market lucratively.

Information Technology

McDonald's is undeniably a boss in the food chain industry & also in technology. It uses information technology for various functions. Its technology system is highly innovative. They keep relation with others by using a global virtual network. McDonald's liaisons with various IT components like Hardware components and Software components to enlarge its service to the consumers. Different customized software is used by this corporation. A large section of distribution is also automated. Information technology is also used in promotional activities. Through its technology improvements such as FPI's help desk service, network and application consolidation and other technology achievements which are deeply enhanced and eventually benefiting to McDonald's millions of customers in global world.


Communication is a connection apart from one person to another person. It may be internal or external. McDonald's communication system is much organized and this company maintains a successful communication procedures. This corporation has an official website to communicate through different e-mail addresses and links. This corporation has also a well-built research and development department and its marketing research division use e-mail addresses and web addresses to gather information and response. On the whole, McDonalds's success depends on good connection with large group of consumers and organization who have stake in its business.

Freedom of action

McDonald's freedom of action is not same because this corporation believes on moderate freedom which is makes different code of conducts & also creates various rules. Only top level of management in McDonald enjoys the full freedom than other level employees. Normally it is said that it is a elastic corporation in case self-sufficiency. But according to freedom of action, the interest of the organization acquires the main concern. McDonald's senior people think that the freedom of association and rights of employees to appoint in constructive communal bargaining within the host country.

Censorship on internet

McDonald followed limited censorship on the internet. All other international companies like McDonald are also concerned with internet and give its corporate information and its expansion on internet. But newly protecting their information, they are improved e-mail monitoring activities to the preservation of Web logs and communication data. Additionally, some very secret information is not revealed. It is written rule of the corporation that it cannot unveil any top secret information and any individual information unconnected with the interest of this corporation. Beside these a mixture of inner financial data are not focused in internet.

Computers and work

Computers are a vital part of the "communication system and information technology" in McDonald's Corporation. It has snatched every side of activities of the modern universe. At recent time, any corporate work does not finish professionally without using the computer. Accordingly, McDonald are restricted their all working activities by automated system such as using computerized machines, equipments for production and research & development. Similarly, they also apply modern technology which is ended by computers to entrance in global communication process & growing global marketing and so on.


McDonald's Corporation is a multination organization of the USA which was incorporated in 1955 in Des Plaines, Illinois. USA. This corporation drives their business by the USA Company Act. It has done their business in over 119 countries. So, this corporation follows all rules and regulations of appreciated countries where it activate. As a result, McDonald's involves with various competition acts, environmental acts, consumers right protection acts in different countries. They also provide different types of taxes in many nations. Moreover, McDonald is signed various worldwide agreement for defending environment, employees rights etc.


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At modernization time, a security is major concerns to operate the global business. As like other multinational companies, McDonald follows some effective security policy to overcome the unexpected collision. They use high-quality CCTV camera as security purpose which are recorded image whenever a camera notices movement. Some of the Dallmeier recorders are also connected into the company network which tolerates any incidents to be appraised. They are also severely utilized to grant an access power, fire & burglar detection and check solution method for securing their franchise.

Answer to the Assignment Question No. 2

Country overview

Singapore is a desert island city-state off the southern areas. It is a microstate and the nominal nation in Southeast Asia. It is significantly bigger than Monaco and Vatican City & the only other surviving sovereign city-states. Singapore's standard of living has gone up radically. Foreign direct investment and a state-led force to industrialization based on plans strained up that have formed a modern economy focused on industry, education and urban planning. Additionally, Singapore is the 5th wealthiest country in the world.

The legal system

Singapore practices common legal system which is based on British common law. Sir Thomas Stamford Raffles of the East India Company recognized Singapore as a trade place in 1819. The East India Company had attained the First Charter of Justice from the English dominion some 12 years earlier in 1807. It was authorized to establish a Court of Judicature in Penang which had controls similar to those of English higher courts. But in 1878, the Civil Law was passed to legalize the response of English law into Singapore. Section 6 of the Civil Law Ordinance is provided that recent English law was to offer to all business matters, unless there was valid local legislation in force. Singapore had disappeared from being a Crown Colony to be an independent State in 1959. And it became a member of the Federation of Malaya, Sarawak and North Borneo that created Malaysia in 1963. Conversely, Singapore was alienated from Malaysia and suited a sovereign, independent nation on 9 August 1965. The Civil Law Act stayed in strength after Singapore's sovereignty. Consequently, it was retracted on 12 November 1993 by performing of the Application of English Law Act.

Sources of law

There are generally viewed to be three sources of law in Singapore-


Judicial precedents and


Now clarifying the following sources:


Singapore's legislation is separated into two categories:


Subsidiary legislation

Statutes: Statutes are printed laws ratified by the Singapore Parliament as well as by other parties which had supremacy to bypass laws for Singapore in the ancient times. Statutes endorsed by these other bodies may still be in vigor if they have not been revoked.

Subsidiary Legislation: Subsidiary legislation is also identified as "delegated legislation" or "subordinate legislation". It is written law ended by priests or other secretarial agencies.

Judicial precedents

The common law jurisdiction is considered a source of law. Judgments may be taken statutes or auxiliary legislation or improve principles of common law and equity which have been putted down, not by the legislation, whereas by earlier age group of judges. Though positive features have now been customized to several extents by statutes.


A custom is a source of Singapore law. It is a well-known practice or path of performance that is observed by the persons involved in the practice as law. Customs do not have compelled of law unless they are documented in a case. "Legal" or "trade" customs are not agreed credit as law unless they are sure and not awkward or illegal. Custom is a inconsequential source of law as not many customs have been known judicial identification in Singapore.

Court structure

The courts in Singapore consist of the Supreme Courts and the Subordinate Courts. The Court of Appeal & the High Court involves in The Supreme Court and The Subordinate Courts engages with The District Courts, Magistrates Courts. Family Courts, Syariah Courts, Juvenile Courts, and Corner's Courts & Small Claims Tribunal are called specialized courts. The court structure of Singapore is showed by a diagram:

Figure 2: The Court Structure of Singapore

The Supreme Courts:

The Supreme Court is prepared by the Court of Appeal and the High Court. They are keeping up both by the Supreme Court of Judicature Act and it is perceived sound both civil and criminal matters. The Supreme Court Bench made up of the Chief Justice, the Judges of Appeal, Judges and the Judicial Commissioners of the Supreme Court.

The Court of Appeal

The Court of Appeal listens to appeal against the verdicts of High Court Judges in both civil and criminal matters. It developed into Singapore's final court of appeal on 8 April 1994. The Chief Justice takes decision in the Court of Appeal together with two other Judges of Appeal. The Court of Appeal is controlled by the Chief Justice.

The High Court

The High Court made up of the Chief Justice and the Judges of the High Court. A Judge of Appeal may also heads in the High Court as a Judge. It also appoints one or more persons with knowledge in the subject matter of the proceedings to support the court. At first instance, The High Court hears both civil and criminal cases.

Generally The High Court is responsive to oversee the following matters:

Admiralty matters.

Company winding-up proceedings.

Bankruptcy proceedings.

Applications for the admission of advocates and solicitors.

The subordinate Courts:

The Subordinate Courts are comprised under the Subordinate Courts Act.  They involve mainly of the District Courts and Magistrates' Courts which are controlled by District Judges and Magistrates, respectively.  These are allotted by the President of Singapore on the proposal of the Chief Justice. 

The District Courts

Strives offences with maximum imprisonment term of 10 years or below

Jurisdiction over civil cases with claims not more than $250,000.

Magistrates' courts

Seeks offences with a maximum imprisonment term of 3 years or below

Performs opening inquiries into offences with a outlook to funeral for trial by the High Court.

Jurisdiction over civil cases with claims not more than $60,000

Specialized Courts:

Family Courts

In this court, the judges are heard about family matters such as divorces, judicial separations, adoptions, custody, maintenance, family violence and other family matters. This court is controlled by the District Judge.

Syariah Courts

In this court, the judges decide marriage and divorce disputes between parties who are either Muslims or who have married under the states of Muslim law. It was published by the Muslim's Ordinance that appeared into effect on 30 May 1957.

Juvenile Courts

Juvenile courts deal with offences supposedly occurred by "Children" (under 14 years of age) or "Young Persons" (14 to 16 years of age).

Corner's Courts

Corner's court grasps injuries into any death which happens in an uncertain or unnatural way or where the approach in which the death committed is mysterious.

Small Claims Tribunal

The Small Claims Tribunal Act is set up the Small Claims Tribunal. It is controlled by Referees fixed by the President, on the reference of the Chief Justice. Moreover, it has the power to hear and resolve claims starting from the sale of goods or the condition of services.

Different forms of business allowed to operate and the Laws

Governing them

People wishing to perform a business in Singapore may follow the categories which are given below:

A Sole Proprietorship

A 'Sole Proprietorship' is the simplest form of business organization which is accepted on by an individual on his or her own without utilize of detach and distinctive business form. Singapore's law does not observe the sole proprietorship business as a dissimilar entity from its proprietor. When a man wishes to start a business in Singapore as a sole proprietor, he or she must concern to register the business in agreement with the requirements of the Business Registration.

A Partnership

A 'Partnership' is shaped where two or more persons built a business in familiar with a view to making profit. General rules governing Partnerships may be originate in the Partnership Act. Furthermore, the highest number of partners permitted in a partnership is 20. For starting partnership business in Singapore needed to register under the Business Registration Act.

A Limited Liability Partnership

 A Limited Liability Partnership is a business association containing two or more people associated for creating a lawful business with a analysis to profit that is registered under the Limited Liability Partnership Act 2005. A Limited Liability partnership is created by registration under the Limited Liability Partnership Act. 

A Company

A Company is a creature that is registered under the Singapore Companies Act. It has its individual legal trait that is separate from its members and the persons who handle the company. The Companies Act considers different types of companies such as Private limited Company and Public limited Company.

A Business Trust

A Business Trust is a trust that functions and sprints a business venture. It is feasible for a business trust to be registered under the Business Trusts Act. The principle of the Business Trusts Act is to put into place a structure to control business trusts that desire to lift up funds from the common public.

Dispute Resolution Procedures/ options available and their Effectiveness

The dispute resolution procedures of Singapore has been assumed by Singapore Network Information Centre private Limited. The Singapore Government is a well-built promoter of dispute resolution and also has put in place exclusive institutional and infrastructural outline to maintain this venture. The Rules of Court give generous opportunity for dispute resolution procedures. Various modes of dispute resolution procedures could silent be tried upon even if lawsuit proceedings have begun.

Laws relating to


Copyright is the phrase used to explain the bundle of rights that is decided by statute in esteem of innovative works. Creative ideas, information, principles and facts all are related to Copyright Act. It protects the owner's skill, labor and judgment used in creating the expression. It also protects author's literary, dramatic, musical and artistic works such as novels, plays, musical compositions, paintings and sculptures. The copyright owner must license or assign the right to replicate his work in a fabric form to one person and the right to execute the work in community to another person. He must also license or assign the copyright in conditions of the total or division of the copyright period or by geographical region.


Singapore has a twin system of trade mark law like as defense for trademarks may be accessible both under the Trade Marks Act and at common law. Its protection period is 10 years from the date of registration. Afterward, the registration may be converted for further period of 10 years. A registered trade mark is own property which may be allocated by the registered owner as such completely or by way of safety.  To preserve the trade mark on the register separately enchanting steps to repair it at the suitable time. It is also very significant to make sure that there is real use of the trade mark in the route of trade in Singapore.


A patent may be permitted for creative products or a process in Singapore. It is followed the Patents Act which is based on the UK Patents Act 1977. Registration in patent may be taken in two ways through a conjugal application cased with the Registry of Patents within the Intellectual Property Office of Singapore ('IPOS') and an international request filed in accordance with the Patent Cooperation Treaty with the Registry performing as the Receiving Office for the application. The creation must be assured the following circumstances:

 It is innovative

It involves an creative step

The publication or utilization of the invention would not normally be expected to persuade offensive, immoral or anti-social behavior


A 'design' refers to features of shape, configuration, pattern or ornament applied to an article by any industrial process. In Singapore, an industrial design is followed under the Registered Designs Act which is based on UK Registered Design Act 1949. The highest duration of the restricted rights awarded by registration is 15 years. The following matters cannot be registered-

Designs are dictated solely by the function which the article has to perform

Designs are dependent upon the appearance of another article

Methods or principles of construction

Computer programs layout with integrated circuits

Designs the publication or use of which would be contrary to public order or morality

Answer to the Assignment Question No. 3


McDonald's has turned into symbolic of Globalization. Sometimes it is referred to as the "McDonaldization" of society. McDonald's corporation should be specified recognition for improving the standard of service in global markets that it penetrates. McDonald's also facing some global positive impact when it enters in East Asia and Hong Kong particularly. In 1975 McDonald's opened its first restaurant in Hong Kong and they offer some facilities such as clean restrooms, driving customers to demand the same of other restaurants and institutions. In recent years growing Chinese population is measured having a high-quality effect on the increasing competitive world. This market gives the chance to tap into a huge market having over 1 billion people, a portion of which may develop into a loyal customer base for McDonald's. McDonald's restaurant locations would increase the possibility of employment. This may improve the relationship between the Chinese populace and McDonald's Corporation. This relationship would develop the customer base as people's perception towards the Corporation becomes favorable. Likewise McDonald's contacted a deal with the French fine arts museum for opening a McDonald's restaurant and McCafé on its building by their underground entry in November 2009. On the other hand, McDonald's also facing some negative effects for falling down its economic growth on the basis of investment decisions. Because of economic downturn and investing in emerging market McDonald's closed its 163 unproductive stores at a cost of $91 million in 2001. Afterwards, McDonald's take an expansion plan and take initiative to open 1300 to 1400 new outlets in a year, and most of the restaurants will be on U.S., Europe, and Canada where economics are relatively stable and returns are strong based on these economic situation.

Development in Information, Communication and Technology

McDonald's information system is so much developed that make sure the horizontal running of all its restaurants. It is said that the information system of McDonald's, France replicates the dimension of the company; not less than 70 servers multitude the company's serious applications. They also monitor critical information issues such as restaurant ordering information and replacement, accounting information, payment system and so on.

Communication strategies are the central part of development. As a global company McDonald's has a well-built communication network of its own. McDonald's attempts its greatest to become accustomed communication strategies to changing situation through using email systems, internet, Intranet, incident monitoring, firewall, etc. along with the responsive.

New and innovative technologies can help to reduce the processing costs and distributional cost of food products. The technological development such as automated dispensers of half prepared French Fries, or automated milk-shake dispensers helped to reduce the time of service. The newer process of pumping cola from delivery trucks to storage containers reduced the need for intermediate containers, thus reducing the related costs. So being in line with the new technologies can help to reduce the cost related to business. The changes in technology opened up new arenas of advertising and marketing. McDonald's can now use internet and other customer interactive technologies to advertise its products. It also incorporated internet connections in different zones of its business locations to entertain customers. It features 'grab and go' zones where customers are entertained with Plasma TV. So technological changes enabled McDonald's to increase its business as well as find out different methods to entertain its customers.


Culture consists of precise norms based on attitudes, values, and beliefs, all of which exist in every nation. McDonald's is effectively running its business over 119 countries which mean that they successfully able to combine together with the culture, religion, values, ethnicity of those countries.

Corporate Culture

McDonald's Corporation is the biggest and most familiar global foodservice provider. McDonald's have a team of knowledgeable managers & one of the best renowned brand names in the planet, greater operating systems and an inclusive infrastructure. McDonald's is every part of about corporate culture. McDonald's corporate culture is a collective value system that forms the foundation of all company resolution. A comparatively lasting, interdependent symbolic system of values, beliefs, and assumptions growing from and incorrectly shared by networking with organizational members that lets them to assign common meanings to stimulus encountered in the organizational context McDonald's vision statement also makes the values by which are completed all executive and corporate decisions.

Corporate Governance

McDonald trusts on suitable Corporate Governance. All the report of McDonald's corporate governance has published annually. It also guarantees the good relationship among the various stakeholders. Moreover, the price sensitive information is revealed to the investors. McDonald's corporation mainly gives precedence to the investors' significance. As a social responsible company, McDonald has done different types of social activities. Furthermore, McDonald's Corporate Governance changes the observance costs participation for its global businesses to get together dissimilar narrow needs with other authorities.


McDonald is the most influential fast food restaurant in the global world. It is the biggest and most famous corporation of its mother country, United States. It has significant power in case of any trade related decision. But this corporation never takes any unnecessary advantage to use its power. They are tried to get better the business environment by using its power. In recent times, there was no foremost threat to its power. As a fast food restaurant McDonald's is the most powerful corporation in many developing countries. This corporation has a well-built situation in global business arena. It can modify many decision connecting with fast food market especially restaurant related.


It is impracticable to run a business without taking into consideration the influence of political condition. The governments of any realm confine or pressure business activities to play a significant role in global business. Some political situation like sovereignty, political philosophies, nationalism, government laws and actions builds opportunities as well as hazard for business. For doing business profitably in any country McDonald's must have lock eye on the fundamental political ideologies, impact of political system on management strategies. Sometime it is observed that McDonald's political ideology & statements of person accountability and free-market expression have been deployed eternally as legal suspicion and conceals of corporate volatility in global market. And then, Progressive movements have engaged in recreation a decisive role in hollowing out such business claims and also help to make a large contribution to the political work.


McDonald's has been concerned with some lawsuits and some legal cases. Most of the cases are related trademark disagreements. This company has pressured many food businesses with legal action unless they fall down the Mc or Mac from their trading name. For instance, McDonald's took legal action against Scottish café owner on September 8, 2009. McDonald's Malaysian businesses misplaced a lawsuit to stop another restaurant calling itself McCurry. Besides that it has also filed several offense suits. For example, McDonald's prosecuted two campaigners for allocating brochures violent it's environmental, labor and health records in the McLibel case. In 2001 this corporation was fined £12,400 by British magistrates for unlawfully using and over-working child labor in a London restaurant. And that was highest amount of fines imposed on McDonald's corporation for breaking the laws relating to child working functions. Also McDonald's appealed responsible to five charges involving to the employment of children under 15 and was fined AU$8,000 in April 2007 in Perth, Western and Australia. Even in 1994 McDonald's engages with infamous case named The McDonald's Coffee Case.


McDonald is one of the most favorable fast food restaurants in worldwide. So, in response to consumer demands, McDonald's has required to comprise more healthy choices in its menu. It proclaimed that it was abolishing the super size option, and was producing the adult happy meal. McDonald's chicken is the fast choice of their children consumers. British consumers are gradually more concerned in the quality, sourcing and ethics of the food and drink they purchase. So, McDonald's coffee is now prepared from beans taken from stocks that have been qualified by the Rainforest Alliance, a conservation group. Similarly, milk supplies utilized for its warm drinks and milkshakes have been controlled to organic basis which could description for 5% of the UK's natural milk output. On May 22 2008 in the U.S. and Canada, McDonald's declared that it would be making cooking oil for its French fries that contains no trans fats which is good for its consumers' health. This company also introduced canola-based oil with corn for its baked items, pies and cookies.


To end with this assignment I am paying attention on McDonald's fast food restaurant growth and the enrichment of its quality with the end of ethical issues. This corporation is concerned to focus on strength in the long run & effectively set up its position in the Global Market. Moreover, Singapore as a country has a well-organized legal system. Its laws & regulations are applicable to new and existing business orient action which helps to generate new business opportunities for the entrepreneurs.