Stakeholder Analysis and Management of

McDonald’s

Griselda Alvita Sriulina Ginting

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Contemporary Issues in Business and Management

(6WBS0011)

Word Count: 1,133

Table of Contents
1.0 Review of Stakeholder....................................................................................3

2.0 Stakeholders’ Power vs Interest......................................................................7

2.1 Shareholder..................................................................................................7

2.2 Full-Time Employee....................................................................................7

2.3 Customer......................................................................................................8

2.4 Part-Time Employee....................................................................................9

3.0 Recommendation..........................................................................................10

4.0 References.....................................................................................................11

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1.0 Review of Stakeholder
Ray Kroc started the American international fast food chain McDonald in
1940, and it is now one of the most globally recognized fast food brands
in the world. There are currently about 38,000 restaurants in more than
100 countries, some of which are independently run and franchised,
employing more than 2.2 million people worldwide. (Corporate
McDonald’s, 2022) Every organization relies heavily on stakeholders to
sustain relationships; hence Mendelow's Matrix may be used to examine
the extent of stakeholder involvement.

Figure one Mendelow’s Matrix of McDonald’s

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 Franchise as Key Player
 Franchise has a significant influence on McDonald's since the
franchised sector generated around 56% of total sales in 2021, with
93% of outlets franchised as of 2020. (Cuofano, 2022)
 Since McDonald's is already well-known internationally, they have
a strong structure and provide a variety of training programs for
owners. (Ingram, 2010)
 Franchise is in quadrant 1 as it has high power and low interest.

Shareholder as Key Player

 Shareholders directly affect corporate decisions since they have a

voice in those decisions and some power over McDonald.
(Fedorov, 2011)
 Their primary goal is for a company to have large revenue so that
they may obtain larger share and dividend payments. (Indeed,
2020)
 Shareholder is in quadrant 1 as it has high power and low interest.

Supplier as Keep Informed

 In the United States alone, there are over 385 diversely held
providers. (Maze, 2022)
 In January 2022, most McDonald's locations had a scarcity of fries
since supplier shipping sources were in limited supply and capacity
to transport had been reduced owing to the epidemic. In Indonesia,
for example, they now only sell medium and small fries. (Bhwana,
2022)
 Supplier is in quadrant 2 as it has low power and high interest.

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 Full-Time Employee as Keep Informed

 Employees interested in McDonald’s as they are provided several

perks to its employees. (BBC, 2021a)
 Full-time employee is in quadrant 2 as it has low power and high
interest.

Communities as Keep Informed

 Communities have high interest as McDonald are supporting

people in the communities.
 Such as during the pandemic, McDonalds help to maintain basic
needs. For example, McDonalds in Malaysia donated 63,000 meals
to healthcare assistance in every hospital in Malaysia for their
acknowledgement during the pandemic. (Corporate McDonald’s,
2022)
 Communities is in quadrant 2 as it has low power and high interest.

Customer as Keep Satisfied

 Every customer in every country has their own desire and wish,
McDonald is adjusting in every culture.
 Opportunity to buy anything with the money they have at their
disposal. Generally speaking, a consumer's purchasing power
increases with money. (Ahmed, 2013)
 Customer is in quadrant 3 as it has high power and low interest.

Government as Keep Satisfied

 The government wields considerable authority in McDonald since

each country has its own set of rules.

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  For example, in Japan, the government is concerned with citizens'
nutritional balance; (Japan Today, 2016) for example, their
strawberry milkshake small size is only about 216 calories,
(McDonald’s Japan, 2022) however other countries may have
different calories owing to regulations, such as in the United States,
which is 530 calories. (McDonald’s, 2022) (Frue, 2018)
 Government is in quadrant 3 as it has high power and low interest.

Competitors as Minimal

 As of right now, McDonald's has the top spot in the American fast-
food chain (QSR, n.d.), and the second spot globally, therefore
competition has little impact on the company. (Brandirectory, n.d.)
 Competitor is in quadrant 4 as it has low power low interest.

Part-Time Employee as Minimal

 They do not receive benefits as full-time employees do, and if they

don't show up for work, they will not be paid.
 For instance, they won't receive any compensation or leave benefits
if they are unwell. (Locsin, 2013)
 Part-time employee is in quadrant 4 as it has low power low
interest.

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2.0 Stakeholders’ Power vs Interest
2.1 Shareholder
Shareholders are one of the most important players in McDonald as they
have a significant impact in decision making.

High Power

 Mutual funds possess 69% of shareholders’ equity in McDonald,

giving them a majority stake. (Money CNN, 2022)
 Active investors purchased a $3.1 million investment in June 2019.
(Money CNN, 2022)
 According to Money CNN, The Vanguard Group Inc has the
largest shareholder as of June 24, 2022, with 8.65%. (Money CNN,
2022)

High Interest

 They are not only interested in stocks but also McDonald’s

performance in general as McDonald have potential performance
and stocks. (Baton, 2008)
 As of June 23, 2022, McDonald's return on invested capital was
17.53%, which will attracting investors. (Gurufocus, 2022)

Action

 If a shareholder is dissatisfied, they may sell their shares and

lowering the price. (Ross, 2015)

2.2 Full-Time Employee

Full-time employees are crucial stakeholder since they operate the firm,
and they should constantly be kept informed.

Low Power

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  They are limited to the duties and job descriptions outlined in their
contract causing them low power. (Acas, n.d.)

High Interest

 McDonald are well known for its equal opportunity, gender

egalitarianism in which they have programs about it. (BBC, 2021a)
 McDonald's incentives and bonuses, such as the addition of
additional perks like backup childcare and tuition reimbursement,
are attracting workers in. (El-Bawab, 2021)

Action

 Full-time employees who are unsatisfied with their jobs can simply
resign or stage a protest.
 For example, in the United States, a demonstration over salary
demands was conducted on May 2021. (USA Today, 2021)
 They hold face-to-face meetings and town hall meetings to keep
everyone informed with the latest updates. (McDonalds, n.d.)

2.3 Customer
Maintaining customer happiness is crucial for McDonald since it is the
primary factor driving the market, without which the company cannot
survive. (Kenton, 2010)

High Power

 McDonald's menu changes to adapt cultural and personal

preferences. (Racoma, 2019)
 The only restaurant that does not offer meat is McDonald India.
(BBC, 2012)

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  For example, in Indonesia there is a menu for breakfast such as
fragrant Indonesian coconut milk rice (nasi uduk), as Indonesians
desire rice more, they switch from bread to rice. (Iqbal, 2018)

Low Interest
 Customers are disinterested since it is not as nutritious as other
foods especially since the pandemic hit, sales have fallen by22% as
people prefer to et healthier foods to maintain their immune
systems throughout the pandemic. (BBC, 2021b)

Action

 Customers will simply switch to competitor restaurants or even

pick a healthier meal plan if they are not happy with McDonald's.

2.4 Part-Time Employee

Part-time employee works lesser hours than full-time employee which is
not as crucial as a full-time employee.

Low Power

 They may be simply part-time employees and have no experience

and maturity, thus they have little influence. (Dehar, 2016)

Low Interest

 Benefits are provided, but not to the extent of a full-time employee,

and wages are lower owing to the maximum number of hours
worked.
 In United State for instance, $11 per hours for a part-time
employee while a full-time employee is $12.33 in 2022. (Gombar,
2022)

Action

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  They might just simply resign if they are not satisfied.
 They might discuss the issue with their manager or supervisor.

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3.0 Recommendation
Shareholder

McDonald could sell inexpensive long-term debt to strengthened its financial position
and reinvesting the profits in a significant share repurchase or remarkable dividend to
improve the connection between McDonald and its shareholders in the future.

Full-Time Employee

McDonald's should experiment with work rotation for full-time employees since
employees might become bored or unsatisfied with their job station. Employee
motivation may rise as a result, and they may also gain expertise in other areas.
(Indeed, 2021)

Customer

McDonald should concentrate on its specialty, which is hamburgers; the menu should
be simple as preparation should not take too long, as McDonald is in the fast-food
industry and customer label it as a fast-service restaurant. Such as in United State,
wraps were stopped as preparation took too long. (Sharma, 2016)

Part-Time Employee

As some part-time employee in McDonald’s are still minor, they are obviously lack of
experience in which McDonald should give more training and supervision to know
how to handle problems they will face in the future.

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4.0 References

1. Cuofano, G. (2022) McDonald’s heavy franchised business model in A nutshell,

FourWeekMBA. Available at: https://fourweekmba.com/mcdonalds-business-model/
(Accessed: June 13, 2022).
2. Money.cnn.com. (2022) MCD - McDonald's Corp Shareholders - CNNMoney.com.
[online] Available at: <https://money.cnn.com/quote/shareholders/shareholders.html?
symb=MCD&subView=institutional> (Accessed 13 June 2022).
3. McDonald's Japan. (2022). McShake® Strawberry | Menu | McDonald's Japan. [online]
Available at: <https://www.mcdonalds.co.jp/en/products/8517/> (Accessed 13 June
2022).
4. Mcdonalds.com. (2022). Strawberry Shake: Soft Serve & Strawberry Syrup |
McDonald’s. [online] Available at:
<https://www.mcdonalds.com/us/en-us/product/strawberry-shake-small.html> (Accessed
13 June 2022).
5. Frue, K. (2018) “PEST Analysis of McDonald’s: Which factors affect their future
success,” PESTLE Analysis. PESTLE Analysis | SWOT and Business Analysis Tools,
29 April. Available at: https://pestleanalysis.com/pest-analysis-of-mcdonalds/
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6. Bhwana, P. (2022) “Facing Potato Crisis McDonalds Indonesia Removes Large Fries
from Menu,” Tempo.co. Available at: https://en.tempo.co/read/1556201/facing-potato-
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7. BBC News (2021a) “McDonald’s looks for ‘gender parity’ by 2030,” BBC, 18 February.
Available at: https://www.bbc.com/news/business-56116543 (Accessed: June 14, 2022).
8. Corporate.mcdonalds.com. (n.d.). Community Support & Crisis Response. [online]
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<https://corporate.mcdonalds.com/corpmcd/our-purpose-and-impact/community-
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9. BBC News (2021b) “McDonald’s sales are back above pre-Covid levels,” BBC, 29
April. Available at: https://www.bbc.com/news/business-56913814 (Accessed: June 14,
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10. Japan Today (2016) McDonald’s Japan wonders where its customers went, Japan Today.
Available at: https://japantoday.com/category/features/kuchikomi/mcdonalds-japan-
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11. QSR magazine (n.d.) Ranking the top 50 fast-food chains in America. Available at:
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13. Ingram, D. (2010) Advantages & Disadvantages of a McDonald’s Franchise, Small
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16. Indeed Career Guide. (2020) Stakeholder vs. Shareholder: What’s the difference?.
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17. Gurufocus.com. (2022) MCD ROIC % Available at:

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20. El-Bawab, N. (2021) McDonald’s adds tuition, child care to sweetened benefits in a bid
to attract workers, CNBC. Available at: https://www.cnbc.com/2021/07/12/mcdonalds-
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21. USA Today (2021) “McDonald’s employees, activists walk out to demand wage
increases around the US,” 19 May. Available at: https://eu.usatoday.com/picture-
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Available at: https://www.bbc.com/news/business-19479013 (Accessed: June 26, 2022).
26. Iqbal, R. (2018) Nasi Uduk Terbaru ala McDonald’s, Enak Mana Dibanding Warung
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iqbal/nasi-uduk-hadir-di-mcdonalds-1 (Accessed: June 23, 2022).
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31. Sharma, R. (2016) McDonald’s discontinues snack wraps (MCD), Investopedia.
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