Case Study on Business
Systems Planning And
Implementation :
McDonald’s Corporation
Background information
McDonald’s has worked hard to be more than a restaurant chain. It has
become a marketing icon and is part of the routines of millions of people. Its
success is so far reaching that it has developed its own culture and identity.
It has become a symbol of the success and desirability of American popular
culture.
McDonald’s is the world’s largest fast-food restaurant chain. It has more than
30,000 restaurants in over 100 countries. Over one billion more customers
were served in 2007 than in 2006. Although net income was down by $1.1
billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record
high of $23 billion. “The unique business relationship among the company,
its franchisees and suppliers (collectively referred to as the System) has
been key to0McDonald’s success0over the years. The0business model0enables
McDonald’s to play an integral role in the communities we serve and
consistently deliver relevant restaurant experiences to customers.”
The essence of a business model is that it defines the ways by which!the
business enterprise delivers value!to customers, entices customers
to pay for value, and converts those payments to profit: it thus
reflects management’s intention of what customers want, how they want it,
and how an enterprise can organize to best meet those needs, get paid for
doing so, and make a profit. After all the future of any company lies in the
value that they deliver. Business models are used to describe and classify
businesses (especially in an entrepreneurial scenario), but they are also
used by managers inside companies to explore possibilities for
future development, and finally well known business models
operate as recipes for creative managers.
Business models are “stories that explain how enterprises work”.0
