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Question:

Businesses that lack a cost differentiation advantage usually experience average or below-average profitability. How does this would affect McDonalds? (150 to 200 words)

In China Union branches are being allowed and it will be personal choices made by individual

employees to join. Laws regarding, wages recently amended has McDonald’s bureaucratic control

potentially influencing and complying with the law. McDonald’s employees consist of part time

students that are paid a minimum of seventy cents per hour, in Shanghai eighty four cents an

hour is the minimum wage, but McDonald’s is within regulation due to the rules only applying to

full time workers (Associated Press, 2007).

 Satisfying customers and wages is a controlled discipline and is reflected in McDonald’s

zOrganization by its ability to share the same shared values in all franchises. McDonald’s has

and maintains a strong, committed educated team with common goals, McDonald’s provides safe

and family oriented environment with everyone provided the same benefits. Market control for

McDonald’s includes changing with the future and responding to market changes, in the UK

McDonald’s has chosen to close twenty five of their outlets, sell fifty to different franchises

out of the twelve hundred fifty that exist, in return the existing stores will be upgraded and

McDonald’s will introduce more McCafe’s. Healthy trends have been an issue that the organization

has struggled with, to fight competitors like Subway that has embraced the healthy food concept,

in the year 2003 McDonald’s added salad’s and fruit to their menu. Furthermore, quorn a

substitute meat was added to McDonald’s breakfast menu to cater to vegetarians (Simon, L. 2006).

McDonald’s has a specially designed a financing source designated especially for the organization

to control its finances. The team members of McDonald’s has the best and most thorough

understanding of McDonald’s, the company focuses on the customers changes and needs and what

impacts those needs, Chase Bank responsibility is to attend to all of McDonald’s financial needs

and systems.