Business Administration Capstone

Topics: Economics


McDonald’s is a well-known U. S. based public corporation that operates largest fast food restaurant chains in the world. According to the Securities and Exchange Commission EDGAR database, the company has adopted a new business strategy in 2015 to enhance productivity and generate opportunities for growth. Globalization and technology is a new phenomenon that influences the McDonald’s overall performance in both positive and negative ways. The industrial organizational model and the resource-based model takes a huge part in gaining competitive advantage by exploiting the internal and external factors.

The vision statement and mission statement of McDonald’s is unique when compared to other public corporations because it indicates customer’s needs like good quality, service, cleanliness, and value. The company considers stakeholders’ interest in corporate social responsibility efforts as their main platform for reaching business goals and objectives. However, the purpose of this essay paper is to provide an overview of business administration of a public corporation.


As McDonald’s expands their business in international market, the corporation is heavily influenced by the globalization the spread of the American food habits.

This company has been targeted by government and people of various countries because business expansion is disturbing their cultures. McDonald’s faces many serious allegations like contributing to the epidemic of obesity in society, sexually harassment, racial discrimination in the workplace, and the lack of information about the foods, (George Ritzer, 2014).On the other side, technology changes have greatly impacted the McDonald’s overall performance.


Technology changes pushing the company closer to serve the customer as per their needs and to dominate the international fast -food market.

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Latest technology is used at every level of the company in many ways to assist every employee and to bring simple method of doing business. From several tills, to stock control, training, research, management and office work, business would be a lot more complicated to conduct without the use of computers and the rapid developments being made to enhance business throughout all areas. (John S. Sheldrake, 2016). This all goes into offering a hassle free and cost-effective service when customers order their meals.

Industrial Organization Model

The Industrial Organizational Model chooses an external viewpoint to describe that focuses outside of the organization indicates the control influences on a company’s strategic operations. (Michael A. Hitt, Duane Ireland, Robert E. Hoskisson, 2014). In order to earn high level returns, the company management normally analyze the external environment, collect more information about the current fast food industry trends, recognize the plan suitable for the industry that brings the returns sought, implement or quire assets and expertise required to implement the plan, make use of the company’s advanced strengths to execute the plan.

Resource-Based Model

The Resource-Based model mainly focuses on an internal point of view to describe how an organization’s special bundle or consideration of internal resources and abilities indicate the foundation upon which value-creating plans should be established. (Michael A. Hitt, Robert E. Hoskisson, 2014). Resources mainly serves as informational inputs of a company’s manufacturing or operating process, such as capital equipment, every worker’s capability, copyrights, brand reputation, finances, and skilled managers. These resources can be tangible or intangible. As per the model, a company’s resources and strengths are very crucial in determining the appropriateness of strategic operations than are the circumstances and factors of the external environment. Therefore, plans should be selected that permit the company to best exploit its core competencies, relative to opportunities in the external environment. McDonald’s should recognize their internal resources and evaluate their strengths and weaknesses. The strengths and weaknesses of firm resources should be evaluated relating to industry rivalry. At the same time, the company should figure out the set of resources that support the company with capabilities that are special to the firm, relative to its opponents.


McDonald’s vision statement is all about to become a modern, progressive burger company providing a new innovative customer experience. The vision statement explains the overall strategic direction of the firm. The various features of the business are covered and specified in the vision statement. McDonald’s is a company that will make its vision plain and clear to fulfill the vision appropriately. An adequate vision statement assists unify the goals in the different areas of the organization. Mission

McDonald’s current mission statement is “We will always be our customers first choice, when it comes to good quality products, excellent service/ hygiene and great value for money”. In its mission statement, the company provides information regarding the market position and the human resource management perspective is highlighted. (Michael B. Timmons, Rhett L. Weiss, John R. Callister, Daniel P. Loucks, James E. Timmons, 2014) A strategic goal based on this mission statement is international brand development to enhance the firm’s capability to gain customers and investors. A related financial goal situated on company’s mission statement is cost minimization to optimize value.


Each category of stakeholder has great impacts on the overall success of the McDonald’s corporation. The company has four significant stakeholder categories such as employees, customers investors, and communities. The company considers employees as its top stakeholder category. The interest of this category includes career advancement and fair reward system. (Anne T. Lawrence, James Weber, 2014). McDonald’s also has a universal mobility policy that encourages risk management and leadership development. However, this company pays low wages even when employees requesting for higher wages. So, it can be concluded that company’s corporate social responsibility attempts only partly fulfill the needs of employees. McDonald’s believes that customers are the key stakeholder category of the corporation. The interests of this category include reasonable and helpful food options.

The company’s corporate social responsibility actions make sure affordability of products via streamlining the supply chain. Investors, McDonald’s tries to satisfy investors through fulfilling their demands. The interest of this stakeholder category includes profitability and increasing revenues. The company addresses these matters through solid business activities. Now, the company has a low but constant growth rate. The launch of new products like McCaf?’, also assists to fulfill such interests. So, the company’s corporate social responsibility attempts efficiently fulfill the interests of investors as an important stakeholder category. McDonald’s encourages communities as it takes a huge part in its overall success.

The interests of these stakeholders include community improvement and environment related projects. The company has continuous effective support programs for this stakeholder category. McDonald’s corporation is the leading global food service retailer that introduced the American Food habits all over the world and adopted great technological advancement to enhance services. The management need to focus on the industrial organization model to understand the external factors and the resource-based model supports the company through distinctive capabilities. McDonald’s need to focus on all stakeholder categories such as employees, customers, investors, and communities to obtain more success in the future.


  1. George Ritzer. (2014) The McDonaldization of Society. SAGE Publications
  2. John S. Sheldrake. (2016). Technology, Business and the Market: From R&D to Desirable Products. Routledge
  3. Michael A. Hitt, R Duane Ireland, Robert E. Hoskisson. (2104). Strategic Management: Concepts: Competitiveness and Globalization. Cengage Learning
  4. Michael B. Timmons, Rhett L.Weiss, John R. Callister, Daniel P. Loucks, James E. Timmons. (2014). The Entrepreneurial Engineer: How to Create Value from Ideas. Cambridge University Press
  5. Anne T. Lawrence, James Weber. (2014). Business and Society: Stakeholders, Ethics, Public Policy. Tata McGraw-Hill Education

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Business Administration Capstone. (2019, Dec 04). Retrieved from

Business Administration Capstone
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