Samples Business Business Ethics within the McDonald’s Franchise

Business Ethics within the McDonald’s Franchise

815 words 3 page(s)

McDonald Corporation is one of the largest fast food chain restaurants that is known for its hamburgers. It was founded by two brothers, Maurice and Richard McDonald in the 1940s in San Bernardino, California. The fast food chain has operations globally with over 37,000 locations in over 100 countries as of 2018. The company has enjoyed large revenue over the years mainly due to its positioning in the industry, that targets customers by providing excellent quality, service, cleanliness ad value.

The growth in the fast food industry has seen more and more people turn to takeout food and McDonald’s being very popular, has been one of the go to locations. The restaurant, however, as not had been free of any controversies, with the nutrition groups bashing it for providing empty calorie foods with no nutritional value. Public health professionals, parents and child advocates have also chimed in on the criticism with many having concerns over the production practices of the corporation and the composition of its products. Obesity is a leading concern for the United States and the positioning of McDonald’s is said to be a contributor to this outcome. Child obesity rates are the highest in the United States and as such, most nutritional advocates point out fast food chains as the leading cause bringing out the ethical dilemma behind fast food operations (Yeonsoo Kim, 2017).

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The fast food industry has grown largely due to increased purchasing power of individuals and change of lifestyle habits and patterns. McDonaldization has seen fast food chains like McDonald penetrate various markets and cultures globally. However, this penetration has led to revolt from organizations and movements formed to counter the spread of fast food. Certain cultures like France, for instance had a very negative perception of fast food restaurants as they saw it as a form of culture imperialism meant to erode or wash away traditional food ideas and habits. The McDonald franchise has had increased popularity especially with the young generation mainly because it is perceived as a sense of independence. Youngsters love it as s food choice, not only because of the preferred taste but also because it represents growing into making food choices independent of parents. In cultures like Romania, where lifestyle has improved due to improved infrastructure and development, fast food is embraced especially by city folk as it offers simplicity and convenience. The United States, having the highest rates of fast food consumption, is filled with individuals who love the convenience franchises kike McDonalds offer, with a focus on taste and variety (Lelia, 2012).

McDonald’s has focused on countering the negative press it has received through corporate social responsibility. This has been done by launching sustainability programmes focusing on areas such as nutrition, well being, children’s fitness, environmental issues and charitable donations. The corporation has improved on nutritional value by introducing fruit and vegetables in their meal options. The firm has also created campaigns and initiatives that communicate with children in the importance of balanced diet choices and encourage involvement in physical activity. Furthermore, the corporation has spearheaded its initiative to provide nutritional guidance for its customers through compliance with federal calorie labelling of its food items in a bid to aid individuals to make informed food choices and be in control of portion(Lauren, 2018). The firm has also been involved in several charities with a focus on children. These charity donations are given in a bid to impact the society in which they operate.

Ray Kroc provided a stable and innovative leadership for the McDonald’s franchise once he acquired it. Through his exemplary leadership, the firm has been able to position itself at a competitive advantage as compared to its competitors like subway, Dunkin donuts and burger king. The corporation has focused on product quality by focusing on creating a standardized operation through all its outlets to maintain quality product and service. The firm has also been able to maintain excellent prices for its products through bundle pricing of the mewl bundle options they provide and psychological pricing by maintaining the .99 $ prices instead of rounding off. Through a superior supply chain model, the corporation has been able to distribute its products globally in restaurants, kiosks, mobile apps and websites. They have also been able to target new customers through a promotional mix of advertising, which is their main promotional strategy, sales promotions and public relations and the fine-tune promotion depending on what is dominant in the region of operation.

    References
  • Lauren. P, Denise.S, Jason. P, 2018. Compliance in 2017 With Federal Calorie Labelingin 90 Chain Restaurants and 10 Retail Food Outlets Prior to Required Implementation. AJPH Research.
  • Lelia V, Alina F, 2012. Fast Food Paradox: Freedom and Cultural Imperialism. “Ovidius” University Annals, Economic Sciences Series Volume XII, Issue 1.
  • Yeonsoo Kim, Mari luz Zapata, 2017. Stakeholder responses toward fast food chains’ CSR Public health-related vs generic social issue-related CSR initiatives. Retrieved from http//:www.emeraldinsight.com/1356-3289.htm at 16th July 2019.