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Decisions a Small Business Owner. Since Microeconomics Essay
Pages:3 (848 words)
Sources:3
Subject:Economics
Topic:Microeconomics
Document Type:Essay
Document:#29363330
decisions a small business owner. Since microeconomics study individual households, firms, government, a closer operations a franchise firm. . You select ONE firm a list Entrepreneur magazine: http://www.
Microeconomics
McDonald's is one of the most popular franchises across the globe. The firm represents the epitome of corporate success, but it is also an emblem of the American way of life. The fast food industry is an important segment of the current life style, of working women, busy schedules and less time for traditional eating.
Part of the success registered by McDonald's is represented by the business model selected by the firm. Specifically, the fast food giant operates through franchises, meaning that its stores are operated by tertiary parties, under the emblem of McDonald's, but with shared risk, resource consumption and profitability.
In order to better assess the company, it is useful to approach it through the lenses of the three fundamental questions of economics:
What is being produced?
How are the items being produced? And last
Who consumes the produced items?
a) What is being produced?
McDonald's produces and sells a wide array of foods products, including sandwiches, ice creams, salads or beverages. Some of these items are wholly produced by the firm, whereas others are purchased and resold. The most relevant example of resold items is represented by the beverages, which are purchased from other companies, such as PepsiCo.
The items made by the firm are foods products, which can be classified into the following categories:
Burgers and sandwiches
Chicken products
Breakfast items
Salads
Snacks and sides
McCafe, and last
Desserts and shakes (Website of the McDonald's Corporation, 2012).
An interesting element about the McDonald's products is represented by their adaptability to the local traits. Specifically, the McDonald's menu across the globe contains the same categories of products, but specific products are eliminated or added based on local features. In India for instance, they do not sell beef; in Germany, they include beer in the menu; in Canada, they serve lobster; in Norway, they sell salmon; in Hong Kong they provide rice burgers (Adams, 2007).
All in all, McDonald's produces a wide array of items, tailored to provide value at a low price and also tailored to meet the specific needs of the various customer bases across the globe.
b) How are the items produced?
As it has been mentioned throughout the previous section, the items sold by McDonald's are produced by the firm itself, whereas others are purchased and resold. At the level of the beverages for instance, the company…
Sample Source(s) Used
References:
Adams, B., 2007, McDonald's strange menu around the world, Trifter, http://trifter.com/practical-travel/budget-travel/mcdonald%E2%80%99s-strange-menu-around-the-world / last accessed on January 16, 2012
Royle, T., 2000, Working for McDonald's in Europe: the unequal struggle, Routledge
Website of the McDonald's Corporation, http://www.mcdonalds.com last accessed on January 16, 2012
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