McDonald’s Corporation is one of the largest corporations in the United States and the global market. It is also the largest restaurant chain in the world, extending to more than 120 countries. The company was founded more than 77 years ago and quickly grew into a massive corporation. This paper will provide an outlook on the current performance and governance structure of the company.
Current Performance
The annual report from 2016 shows that the corporation performed favorably according to expectations and previously set business goals. The company returned $14.2 billion to shareholders through share repurchases and dividends. This figure marks the successful completion of a targeted return of $30 billion for the three-year period ending in 2016. The corporation reported slightly lower total revenues of $24 billion in comparison to the $25 billion reported in 2015. However, its operating income increased from the $7.1 million reported in 2015 to $7.7 million. McDonald’s Corporation holds the highest market share among its competitors at 17.2% (“Annual reports,” 2017).
The corporation is primarily involved in the restaurant business and has the largest market share and brand association in this field. The mission statement of McDonald’s Corporation is focused on creating a favorite eating and drinking place for their customers while being dedicated to providing a healthy workplace and a positive presence in the community (“Annual reports,” 2017).
The objectives of the company are in line with its mission statement and are based on its “Plan to Win” strategy, adopted in 2003. This strategy is focused on five key drivers of customer experience: people, product, price, place, and promotion. The opportunities of the corporation are based on its mission statement and include operational excellence, leadership marketing, and innovation. These objectives are consistent with each other as well as the company’s external and internal environment (“Ambition & corporate mission,” 2017).
The “Plan to Win” strategy has performed well for the company and reflects its global international operation. The company has been successfully performing since its inception and has continued to expand to new markets over the last decade and a half (Crawford, Humphries, & Geddy, 2015).
Corporate Governance
The company’s board of directors consists of twelve members who are mostly non-executive directors. Enrique Hernandez is the elected non-executive chairman of the board. He owns a high-end security company and serves as director of Chevron Corporation and Wells Fargo & Company. His leadership experience and connections are valued and used by the corporation. Stephen J. Easterbrook, who has extensive experience working in the corporation, is the president of McDonald’s Corporation as well as its chief executive officer and director. Andrew K. McKenna is the chairman-emeritus of the board, offering a wide net of governmental and charity-related connections.
The rest of the board consists of independent non-executive directors. Robert Eckert and Margaret Georgiadis provide expertise from the toy industry. Jeanne Jackson, Richard Lenny, and John Mulligan are focused on marketing issues. Sheila Penrose has real estate knowledge and skills. John Rogers has a long history of money management and focuses his abilities on the financial issues of the corporation. Miles White contributes to the health-care aspects of the corporation and has experience working in the field of health care. Despite the global focus of the company, no one on the board has a prominent history of working internationally. Similarly, not a single member has shown interest in environmental sustainability (“MCD company profile & executives,” 2017).
Conclusion
McDonald’s is a large global corporation with a long history. It has maintained its status as a leader in the restaurant business over the last year. The company’s current strategy of providing quality service and focusing on marketing is consistent with its mission and focus on global operation. The board of directors is diverse in experience and covers most aspects of the corporation.
References
Ambition & corporate mission. (2017). Web.
Annual reports. (2017). Web.
Crawford, A., Humphries, S., & Geddy, M. (2015). McDonald’s: A case study in glocalization. Journal of Global Business Issues, 9(1), 11-18.
MCD company profile & executives – McDonald’s Corp. (2017). Web.