I have selected to analyze McDonald’s Corporation, which is an industry leader in fast food offering. McDonald’s operates in the restaurant industry and was at one time the number one seller of fast foods. The fast food retailer operates in more than 120 countries (Forbes, 1).
Issue of Analysis
I will be analyzing the issue of declining revenues or the company. McDonald’s Corporation has been experiencing a slump in its sales, eventually reducing its revenue and profitability. The issue of McDonald’s declining sales has continued to hit headlines with major papers and business-related magazines like Forbes and Fortune magazine looking at the issue in depth. Declining sales is attributable to many factors, but the most notable causes are the changes in consumer preferences. COVID-19 global pandemic has also contributed to the massive decline given that sit-down dining was temporarily halted in a bid to curb the spread of the disease (Moffat, 2). Other possible causes are such as cutthroat competition from other fast-food retailers such as burger king, KFC, Subway, Wendy’s among others.
How the Issue Hinders Efficiency
The issue of declining sales hinders organizational efficiency in that the company will be forced to reduce its operations and all the tools will not be put to work fully. For instance, a branch that has the capacity to serve 500 people and is experiencing declining sales to say 300, then it means that the employees will not be utilized fully. Cooking equipment such as baking will not be put to full use. Things like lighting will not change regardless of the amount of production, the amount or rent or lease paid for the building since they are fixed costs.
Issue of Analysis
I will be analyzing the issue of declining revenues or the company. McDonald’s Corporation has been experiencing a slump in its sales, eventually reducing its revenue and profitability. The issue of McDonald’s declining sales has continued to hit headlines with major papers and business-related magazines like Forbes and Fortune magazine looking at the issue in depth. Declining sales is attributable to many factors, but the most notable causes are the changes in consumer preferences. COVID-19 global pandemic has also contributed to the massive decline given that sit-down dining was temporarily halted in a bid to curb the spread of the disease (Moffat, 2). Other possible causes are such as cutthroat competition from other fast-food retailers such as burger king, KFC, Subway, Wendy’s among others.
How the Issue Hinders Efficiency
The issue of declining sales hinders organizational efficiency in that the company will be forced to reduce its operations and all the tools will not be put to work fully. For instance, a branch that has the capacity to serve 500 people and is experiencing declining sales to say 300, then it means that the employees will not be utilized fully. Cooking equipment such as baking will not be put to full use. Things like lighting will not change regardless of the amount of production, the amount or rent or lease paid for the building since they are fixed costs.
