The ability, capacity, and willingness of an individual for developing, organizing and managing the business venture along with the risks associated with it so as to gain profits can be considered as the process of entrepreneurship (Ronggui, 2015). The term can be simply defined as the running of a business or the operational activities of gaining or attaining some sought of profit. According to the research conducted by Bruce Bachenheimer, who is a clinical professor of management and executive director of Entrepreneurship Lab at pace university, it has been noted that Entrepreneurship is a much broader concept than a creation of a new venture. The spirit of entrepreneurship which can be characterized by innovation and risk taking and has also been considered as an integral component of a nation’s ability for succeeding in the ever-changing and intensified competitive business environment. The below-executed analysis has been made focused on the business plan of McDonald’s which is a multinational corporation and is one of the leading brand name and American hamburger and fast food restaurant chain (Deakins and Freel, 2009). The below-presented part has been analyzed on the feasibility study which is an indicative tool which can be adopted by the business organization for screening the ideas which are lacking the capabilities and potential for building a successful business.
The process of analyzing the skills and capabilities for starting a new business venture or a new idea has been termed as self-analysis for starting the new business (Drucker, 2014). This analysis will enable the individual with the information such as the individual will be well aware of the self-strength and weaknesses. This will develop a clear idea about the regions in which improvements are required and the strengths can be used for further developments and also for grabbing the opportunities (Majid, Zahari and Yusoff, 2016). The below presented is the self-analysis which has been executed for illustrating the ability for coping-up with the emotional and intellectual demands of driving the new business:
I have segmented and presented the self-analysis in various sections which offer the analysis a clear idea about all the elements of the concept (Kim, Shin & Min, 2016).
McDonald’s is an American multinational corporation and has been operating the business activities in fast food and hamburgers. The business corporation has also been considered as one of the tops most leading brand name in the fast food and hamburgers and is also one of the largest chains of the same sector (Lee, Hallak and Sardeshmukh, 2016). The business corporation, which commencement of business in the United States of America in 1940, has expanded its functionalities to wind up plainly a global chain of more than 23,000 eateries, crossing more than 117 economies and using upwards of 400,000 populations around the globe (Dorn and Suessmair, 2017). The administration’s unexpected growth could be credited to many variables, aside from the establishment model of extension that it promoted a model of development that was immediately trailed by numerous contenders and supporters (Hoppentocht et al., 2015). The business entity has been offering and creating the experience which would be remembered by the consumers and also reach the consumers wherever they are and is also engaged in innovating new tastes and choices for serving them with the best level of satisfaction. Modern service, personal involvement with the consumers, great and unique tasting burgers and other fast food items are the core operations which are executed by the business corporation. The main objective of the firm is to go beyond what the business corporation is selling and develop a positive brand equity and image. The business corporation has been operating the operations on the global level (corporate.mcdonalds 2017). The workforce of McDonald’s is considered as the face of the brand name. The business entity provides the opportunity to the individuals by offering them the training sessions and education which brings improvements and advancements in their lives. The organization also offers training and educational support to the staff at the franchisees which brings positive changes in their standard of living (Kenawy, 2015.).
Market research is the management approach which has been considered as relevant for analyzing the consumers and their requirements which are based on the various integral elements such as demographic, psychographic, geographic etc (McKeever, 2016). These are the segments which are used by the business entity for developing a clear idea for promoting and selling the goods to the potential consumers. Market research offers a perfect direction to the efforts made by the marketing team and produces more effective outcomes. This approach aids the entity with an outcome of increased performance level and productivity of the firm (Krueger, 2014). This research also offers the organization with a hike in the market share and goodwill. The market research if executed effectively proves very much beneficial for the business entity while developing marketing plans and strategies as it serves a detailed and data with depth about the consumers and the marketing trends which keeps on changing (Klimko 2015). The below presented is the detailed research executed in the market of McDonald’s:
|
Type of segmentation |
Segmentation criteria |
|
Demographic |
Stages of life cycle · Bachelor: Young and single people who are not staying with their family (Sundborn et al., 2014) · Newly married: Young couples Income · Lower and middle groups Occupation · Professionals, students, and employees |
|
Behavioristic |
Benefits · Time efficiency and cost (Malleshi, 2014) User status · Fast food eaters |
|
Psychographic |
Lifestyle The individuals belonging to middle and lower class group, |
|
Geographic |
Region · Domestic and international Density · Rural, urban and city Gender · Males & females · Single bachelors who are not living at home with their families (Rad et al., 2014) · Young married couples Age · 8-50 |
The concept is concerned with the analysis which develops an understanding regarding the current position in the market and also against the competitors who are producing the similar products (Muhtaroglu et al., 2013). This approach will aid the entity effective strategic planning. The below presented is the industrial analysis which has been executed for analyzing and gaining the knowledge about the strength of the competitors of McDonald’s:
Competitors are considered as the most crucial and integral component which are held most liable in affecting the business of a firm (van den Broek and Boerrigter, 2014). The competitors are the barriers which stimulate the business operations negatively. The business corporation is required to develop plans and strategies as per the competitor’s strategy. McDonald’s has been facing a high intensified competitive environment (Osterwalder and Pigneur, 2010). The business entity has been ranked on the list of the leading brand names and Burger King is one of the big names which has been copyediting with the entity. No small competitors are considered in this segment. Moreover, it has been observed that the established brand names want to create the expansion of their presence and products (Clausse, A., Soto, L., Friedli, C. and Altamirano, 2015). The franchise model has been considered as the approach offers scope for the expected expansion and developments and also the contraction in which the entity operates (Percy, 2014).
Technical feasibility is done on the premise of a sketching out that incorporates framework needs to decide if the association has specialized aptitude to oversee finishing of any venture. Specialized attainability is a critical viewpoint, which assesses how an organization will convey or offer items and administrations to its potential clients (Popov and Roosenboom, 2013). McDonald will create the association with various providers, who will supply required crude materials, similar to; vegetables, bread, drain and so on. Besides, it will build up a viable, efficient and handled generation and assemble framework, through which it will convey the coveted items to clients (West, Ford & Ibrahim, 2015). There will be a first-rate calculated and inventory network framework, which will help the association putting away and conveying the items to clients. In this unique circumstance, McDonald will investigate the innovative necessities, similar to; information sources, limited time procedures, propelled advances utilized for eatery business, programming and so on (Scarborough, 2015). In this practicality examination, the wander will break down the quality and accessibility of these hotspots for business operations.
Financial feasibility can be broke down by taking a gander at various data of the organization, similar to; a cost of a venture, anticipated productivity and income, speculation sum by the business person, capital structure and so on (Shabbir and Mirzaeian, 2016). In a presentation of McDonald, the administration needs to consider every one of the expenses and costs, which will be caused in this start-up. When it will be chosen that what kind of nourishment it needs to offer, at that point it will separate the expenses and costs of every sustenance thing in its eatery menu (Walker, 2016). It will decide its crude material providers and their evaluating approaches. It will introduce diverse programming, as; ERP and CRM to compute the estimated cost of nourishment (Song, Son and Choi, 2015). To start with, the organization will have diminished number of things in a menu to keep the expenses of sustenance down. Under this procedure, McDonald will distinguish every single anticipated cost and costs, which are related to the creation and conveyance of nourishment items to end consumers;
|
Start-up Requirements |
|
|
Expenses |
Amount |
|
Fixtures and furniture for kitchen Interior Legal expenditure Rent Contingencies Total Start-up Expenses |
$35000 $25000 $5000 $15000 $6000 $86000 |
|
Start-up Assets |
|
|
Cash Long-term Assets Current Assets |
$55000 $0 $0 |
|
Total Start-up Requirements |
$1,41,000 |
|
Personnel |
1st Year |
2nd Year |
|
Managers Cook Cashiers Waiters |
$0 $25000 $40000 $20000 |
$50000 $50000 $55000 $35000 |
|
Total Payroll |
$85000 |
$1,80,000 |
On the basis of the research it can be observed that there can be two scenario versions for McDonald are which has been presented as follows:
The first scenario is if the business corporation faces any uncertainties in business and which will lead too heavy losses. The business entity can face losses due to miss-management in the franchisees and outlets, insufficient supply of raw materials for producing the food items and also un-satisfactory services and low-quality food items. These reasons can be considered as the main reasons for the failure of a business. For tackling these issues the entity is required to develop plans and strategies. For instance, for solving the problem of miss-management the organization is required to provide training sessions so as to enhance their skills and capabilities and which will develop a better management system. For tackling the issue of insufficient supply of raw materials the entity is required to develop strong relations with the suppliers and vendors. The issue of quality of food items can be solved by implementing some strict policies over the use of quality raw materials and also the cooking staff should be well trained and un-satisfactory services will be changed by providing training sessions to the staff.
McDonald’s (MCD) is a hamburger and fast food, limited service food chain brand with around 35,000 outlets in more than 100 economies. The business entity has been offering employment to more than 4 million individuals. McDonald’s serves 70 million consumers for every day, which has been considered as a large count that the inhabitants of France. As presented by IBIS World, in 2014, The business entity has the largest outlets in the industry of 17% in the U.S. The nearest contender, Yum! Brands (or YUM), had a piece of the overall industry of 11%.
Conclusion
After summing up the above report it has been concluded that the above-analyzed report is based on the feasibility analysis which is one of the integral segment of a business plan. The business plan has been developed for McDonald’s which is one of the leading brand name and a leading food chain of hamburgers and fast food items.
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