Translated from French to English - www.onlinedoctranslator.

com

Jacob Collura
BAF3MB

Internal Evaluation

Number of words:
1492

Work presented to
Stephane Girouard
business teacher

Renaissance Catholic Secondary School

Aurora, Ontario
1/23/23

1.
Contents

1. Introduction 3 and 4

2. The Ansoff Matrix 4 and 5

3. The population of the religion Islam 5

4. Analysis of these tables: 5
5. Benefits 5 and 6

6. Disadvantages of offering halal meat options 6 and 7

7. Analysis of financial ratios: 7 and 8

8. Closing 8 and 9

4. Bibliography 10

2.
 Should the McDonald's corporation change their
halal meat to increase overall market share?

Introduction:

Since the year 1950, McDonald's has been one of the most popular global fast food

restaurants, with around 10% of the global market share1. Mcdonald's is known by

everyone worldwide, and the company contains multiple partnership to continue to

advertise their products. For example, its partnerships include the Olympics, the Football

World Cup and even the various online influencers like the Faze Clan (a YouTube channel

group).2Its mission is to facilitate delicious moments of well-being for everyone.

3 Additionally, its vision is to move quickly to drive profitable growth and become an even

better McDonald's serving more customers with delicious food around the world every day.

4 However, currently, the vision is not fully followed since this company is not inclusive of

the religion of Islam which could not eat meat.

At this time, in countries east of Africa and west of Asia, McDonald's restaurants are selling

their halal meats. This is because, most of the inhabitants in these countries have gone

from the Islam religion. (First document) However, since there have been great successes

in its restaurants, should McDonald's

1Profitworks, How McDonald's Became The Leader In The Fast Food Industry, (Online)
https://profitworks.ca/blog/541-how-mcdonalds-became-the-leader-fast-food-industry-marketing-strateg
y#:~:text=on%20McDonald's%20Leadership-,McDonald's%20Has%20The %20Largest%20Market%20S
hare%20in%20The%20Fast%20Food,the%20U.S.%20Fast%20Serve%20Market ) Date Accessed: 1/15/23

2Tom Daniels, FaZe Clan renews McDonald's USA partnership, (Online) https://esportsinsider.com/2022/08/faze-
clan-renews-mcdonalds-usa-partnership#:~:text=Share&text=No
rth%20American%20esports%20organisation%20FaZe,range%20of%20FaZe%20Clan% 20talent . 8/31/22, Date
Accessed: 12/15/22

3McDonald's, Our mission and values, (Online) https://corporate.mcdonalds.com/corpmcd/our-company/who-

we-are/our-values.html#:~:text=Our%20mi ssion%20is%20to%20make,uniquely%20feed%20and%
20foster%20communities . Date accessed: 1/15/23

4Mission statement academy, McDonald's Mission and Vision Statement Analysis, (Online) https://mission-statement.com/mcdonalds/
#:~:text=McDonald's%20vision%20statement%20is%20%E2%80%9Cto,development%20trajectory%20of%20the%20company . 2021 Date
Accessed: 1/15/23

3.
change the meat product at all restaurants globally to satisfy customers

potential demands of the Islam religion around the world?

The Ansoff Matrix:

The Ansoff Matrix is a strategic planning tool that helps companies assess

their growth potential by examining the link between current goods and services. There

Ansoff Matrix can be used to assess a company's product change in order to

to estimate the degree of risk and the possibility of growth.5Since this question is

based on whether McDonald's should change their product to increase market share

overall, this question lies in the product development strategy. In order to

stimulate sales, this method consists of offering new goods or services on

existing markets. In this case, McDonald's would provide halal meat options

to its current clientele with the aim of attracting Muslim clients and possibly

increase its market share. It is important to bear in mind that the decision to introduce

halal meat is complicated and cannot be exclusively based on a study of

5Laurent Granger, Ansoff Matrix: defining a growth strategy, (Online) https://

www.manager-go.com/strategie-entreprise/dossiers-methodes/matrice-ansoff
07/12/22 Date accessed: 1/17/23

4.
market, because it involves financial and logistical considerations, considerations

cultural and social and the possibility of reaction.

The population of Islam religion:

(Used document 1,2 and 3)

The sum of people who departed The sum of the population of Islam
The countries from the religion of Islam who have access to a McDonald's

Africa 566,315,279 125,156,867

america
North and South 6,979,888 0

Asia 1,300,657,567 916,033,803

Europe 42,037,266 8,016,304

Oceania 939,747 854,392

Grand Total 1,916,929,746 1,050,061,366

(Used document 1,2 and 3)

The sum of the population of Islam who have access to a
The sum of the population of Islam who do not McDonald's, but which does not contain halal meat
The countries have access to a McDonald's

Africa 441158412

america
North and South 97420 6,882,468

Asia 371244031 13,379,733

Europe 2,629,102 31,391,860

Oceania 26000 59,355

Grand Total 815,154,965 51,713,416

Analysis of these tables:

In total, Mcdonalds has approximately 51,713,416 new consumers who could improve

total market share. However, what are the profits of the business if McDonald's

should invest in a product development strategy?

Profits:

If McDonald's fast food restaurant changes the product, there are multiple reasons to include

that idea. First, one of the main benefits of offering halal meat options

is the ability to tap into the Muslim market. Muslims represent approximately

5.
23% of the world's population and is expected to reach around 30% by 2050.6That means

that the Muslim market is large and growing, and offer halal meat options

would allow McDonald's to attract a significant portion of this market. Another benefit

potential is the advantage of marketing strategies, since Halal meat is rather more

healthy, consumers prefer to eat healthier products that could

increase income. McDonald's marketing team could easily send the

message to consumers that these goods are the healthier option compared to

competitors7. Another potential benefit of offering halal meat options is that it

could differentiate McDonald's from its competitors. Few fast food chains

currently offer halal meat options, and McDonald's could take advantage of this

to attract customers who are looking for something unique. However, with all its

advantages, there are also disadvantages that could affect the decision to change the

product.

Disadvantages of offering halal meat options:

One of the main disadvantages of offering halal meat options is the cost and the

logistics of the supply and preparation of halal meat. Halal meat must

be prepared in a specific way, which can be longer and more expensive than

traditional methods. The cost and logistics of sourcing and preparing

halal meat would likely increase food costs and affect

profit margins. In addition, McDonald's should invest in new equipment

and train staff in the preparation of halal meat, which would also increase

costs.8

Pew Research centre, The Future of World Religions: Population Growth Projections, 2010-2050, (Online) https://
6

www.pewresearch.org/religion/2015/04/02/religious-projections-2010-2050/ 4/2/15, Date Accessed: 1/18/23

7Kévin de La Villardière, WHO: Halal meat is the least carcinogenic, (Online) https://
nordpresse.be/oms-la-viande-halal-est-dmoins-cancerigene/ Date accessed: 1/18/23

8Al. Kanz, Halal, up to five times more expensive? (On line)

https://www.al-kanz.org/2009/08/11/halal-price/ 11/08/09

6.
If the restaurant changed the product, it would have to change the production of the product so that

this becomes Halal meat. Consequently, this could increase the costs which

would affect the price. In times of global problems situating inflation, is it a

Smart decision at McDonald's to raise prices? Another potential drawback of

offering halal meat options is the potential backlash from non-Muslim customers.

Some people may object to the idea of halal meat being served in

fast food chains, which could lead to negative publicity and loss

potential customers.

Analysis of financial ratios:

Financial ratio analysis is used to examine the current financial position of

mcdonalds. Since changing the production of the product is very expensive and

potentially risky, it is essential for McDonald's to ensure that they are within the

good financial situation to start considering a

product development. Here are the ratios we will analyze:

(Used document 1,2 and 3)

Revenue= Sales*Price

Gross margin profit= gross profit/ revenue*100

Net profit margin= Net profit (before tax and interest)/revenue*100

McDonald's profit data at the end of each year

Returned
total Gross margin Net profit (before tax and
Year (Billions) (Billions) gross profit margin interest) (Billions) net profit margin

2022 23.27 13.06 56.1% 7.59 32.6%

2021 23.22 12.58 54.2% 9.13 39.3%
2020 19.21 9.75 50.8% 6.14 32.0%

7.
(Used document 1,2 and 3)

The sum of potential sales in sells halal products

The different The sum of sales The potential amount of sales, if McDonald's
continents (Million) sold halal meat (Million)

Africa 1,167 0
North and South
America 58,263 704
Asia 26,690 244
Europe 23,169 905
Oceania 2,961 1
grand total 112,250 1,854

According to the first table, the gross profit margin is increasing by about 2.65%

every year since the year 2020. However, the net profit margin is not constant.

Since the year 2020, the net profit margin had an average increase of approximately

, 3% which is not in a surprising situation for the company. However, by combining

the two margins, the McDonald's company could invest in halal meat, but is it

will it be worth it, what would be the potential sales?

In the second table I found the potential sales of mcdonalds franchises

in every continent. I found this by multiplying the population of the religion Islam which

do not have access to halal meat times (income/population). This equation gave me the

privilege to conclude that it is not a good idea to change halal meat in all

the restaurants. Currently, the United States contains 13375 franchises of

McDonald's which is equal to 53.7% of all franchises in the world. So, since the

potential sum of sales is very low, in theory, 53.7% of franchises could

losing money which was going down the overall market share. According to the table, the only

continent where the company could change the meat is Europe with about an income

potential of approximately $905 million. (Supporting Document 4)

Conclusion:

8.
In conclusion, it is not a good idea for this development strategy of

currently produced. This is because, the potential demand is not high enough

for McDonald's to make an investment. However, with the increase in

immigration, the different countries in Europe could take this investment in the

future.

9.
Bibliography:

1. Profitworks, How McDonald's Became The Leader In The Fast Food Industry, (Online)
https://profitworks.ca/blog/541-how-mcdonalds-became-the-leader-fast-food-industry-marketing-
strategy#:~:text=on%20McDonald's%20Leadership-,McDonald's%20Has%20The %20Largest
%20Market%20Share%20in%20The%20Fast%20Food,the%20U.S.%20Fast%20Serve%20Ma rket )
Date Accessed: 1/15/23
2. Tom Daniels, FaZe Clan renews McDonald's USA partnership, (Online) https://esportsinsider.com/2022/08/
faze-clan-renews-mcdonalds-usa-partnership#:~:text=Share
&text=North%20American%20esports%20organisation%20FaZe,range%20of%20FaZe%20Clan% 20talent
. 8/31/22, Date Accessed: 12/15/22

3. McDonald's, Our mission and values, (Online) https://corporate.mcdonalds.com/corpmcd/our-

company/who-we-are/our-
values.html#:~:text=Or%20mission%20is%20to%20make,uniquely%20feed%20and%
20foster%20communities . Date accessed: 1/15/23
4. Mission statement academy, McDonald's Mission and Vision Statement Analysis, (Online) https://
mission-statement.com/mcdonalds/#:~:text=McDonald's%20vision%20statement%20is
%20%E2%80%9Cto,development%20trajectory%20of%20the%20company . 2021 Date Accessed:
1/15/23

5. Laurent Granger, Ansoff Matrix: defining a growth strategy, (Online) https://

www.manager-go.com/strategie-entreprise/dossiers-methodes/matrice-ansoff
07/12/22 Date accessed: 1/17/23
6. Pew Research centre, The Future of World Religions: Population Growth Projections, 2010-2050,
(Online)
https://www.pewresearch.org/religion/2015/04/02/religious-projections-2010-2050/ 4/2/15, Date
Accessed: 1/18/23
7. Kévin de La Villardière, WHO: Halal meat is the least carcinogenic, (Online) https://
nordpresse.be/oms-la-viande-halal-est-dmoins-cancerigene/ Date accessed: 1/18/23

8. Al. Kanz, Halal, up to five times more expensive? (On line)

https://www.al-kanz.org/2009/08/11/halal-price/ 11/08/09

10.