Question

How attractive is the main sector in which McDonald"s competes (Hint: Market opportunity, growth, profitability, sustainability)? How has your company been impacted by US trade relations?

Answer 1

THE Mcdonald''s IS IN THE FAST FOOD INDUSTRY WHICH IS VERY COMPETITIVE AND ALSO FAST GROWING

PEOPLE ADOPT TO A PARTICULAR TASTE AND IT IS VERY DIFFICULT FOR PEOPLE TO CONTINUE WHEN THE TASTE CHANGES SO IT IS VERY IMPORTANT TO MAINTAIN A PARTICULAR TASTE THROUGHOUT AND NOT DEGRADE IT ATLEAST

ALSO WHAT THE CONSUMERS IN THIS SEGMENT FOCUS ON IS THE HYGIENE THAT THE COMPANY MAINTAINS WHILE PREPARING THE FOOD PRODUCTS.

IN THIS ERA OF SOCIAL NETWORKING ANY CARELESSNESS IS EXPOSED VERY EARLY AND THAT TOO TO ALARGE CROWD AT ONCE SO IT IS VERY IMPORTANT THAT NO STONES ARE LEFT UNTURNED.

SO ONE THING TO BE KEPT IN MIND THAT THIS BUSINESS FACES A LOT OF REPUTATIONAL RISK.

NOW THE ATTRACTIVENESS OF THE INDUSTRY IS EVALUATED

OPPORTUNITY

THE INDUSTRY OFFERS A WIDE RANGE OF OPPORTUNITIES TO ALL AS THERE ARE VERY WIDE RANGE OF PRODUCTS THAT CAN BE PREPARED AND THERE ARE MANY COMPLIMENTARY PRODUCTS ALSO TO GO ALONG WITH THE MAIN PRODUCTS

FOR EG.

BURGER ALONG WITH FRENCH FRIES AND COLD DRINKS

GROWTH

THE FIRMS IN THIS SECTORS HAVE GROWN CONSIDERABLY LIKE WE HAVE THE EXAMPLE OF DOMINOS AND McDONALD''S JUST BECAUSE THEY HAVE MAINTAINED A BRAND VALUE IN THE EYES OF PEOPLE.

PROFITABILITY

THE COMPANIES IN THIS SECTORS HAVE A MARGIN OF AROUND 22-25% WHICH IS QUITE HIGH.

HOWEVER THIS DEPENDS ON THE ROLLING OF THE PRODUCTS SINCE THERE MIGHT BE AN INVENTORY LOSS IF IT IS NOT IN ROLLING

SUSTAINABILITY

THE SUSTAINABLITY DEPENDS ON THE FACTORS MENTIONED IN THE INTRODUCTION OF THE ANSWER

2ND PART

ASSUMING THAT YOUR COMPANY IS ENGAGED IN THE IMPORT AND EXPORT OF PRODUCTS.

US TRADE RELATIONS AFFECTS A LOT TO IMPORT EXPORT OF PRODUCTS

FOR PRODUCTS THAT ARE BEING IMPORTED IF THERE ARE TENSIONS IN THE RELATIONS THE MORE IMPORT DUTY WILL BE LEVIED ON THE PRODUCTS AND THUS MAKING THEM COSTLIER SO THE COMPANIES ENGAGED IN USING THE IMPORTED RAW MATERIALS WILL SUFFER AND BECOME IMCOMPETENT IN DOMESTIC MARKETS A;LSO THE DOMESTIC COMPANIES NOT USING THE PRODUCTS WILL FLOURISH BECAUSE OF THE IMPORTED GOODS BECOMING COSTLIER AS COMPARED TO DOMESTIC PRODUCTS