COMPETITIVE ANALYSIS

Competitive Analysis and Business Cycles

Competitive Analysis and Business Cycles

Introduction

Fast-food industry is growing rapidly across the world, where every company is looking for a gap in the market to gain market share. Globalization on one hand has created unlimited growth opportunity for business; on the other hand, it intensified the economic challenges for running business efficiently. This paper explores the fundamentals of economic analysis in the context of McDonalds Corporation. This paper analyzes the company under economic terms, big economic idea that defines the operations of the organization, and how firm manages its supply and demand in different markets.

Organization Selection

The company that has been used in this paper is McDonalds Corporation. McDonald's is an American company that has made the leaps and come out of its original market (USA) to conquer the world with its quality in fast-food service. McDonald's is recognized globally, both as a high value commercial organization, such as one of the best opportunities to offer franchises. McDonald's and its franchisees are the most important organization in Local Food Quick Service. McDonalds has presence in more than 115 countries with more than 32,737 restaurants (Data Monitor, 2011). Interestingly, the products sold by McDonald's are same all over the planet, matching supply to the tastes of each country. Main reason to select this organization as the basis for economic analysis is the geographical presence of the company along with economic challenges it faces depending on country in which it operates. Following section presents the concepts of economics that apply to the organization.

Economic Terms

Two economic terms that applies to the McDonald are “resources”, and “market”. These are discussed briefly below.

Resources

Factor of resources play an integral role in defining the effectiveness of McDonalds Corporation. Company categorizes each of the four factors to lead the industry in which it ...