Milestone 2 - Overview

Milestone 1: Topic Selection - Short Paper

Student’s Name

College or University

Business Profile

The paper discusses the impact of the increase in the minimum wage in Settle, Washington to the McDonald’s Company. McDonald’s Company is a fast-food restaurant that was founded in the year 1940. The company has its headquarters in Oak Brook, Illinois, United States and it has continued to serve the globe making sure that it offers fast foods and drinks (Facella, & Genn, 2009). The firm operates in the restaurant's industry considering that it continues to offer drinks and fast foods to the society. It is a public organization suggesting that it seeks to protect the society and the environment. The firm has different stores in various locations around the globe. The number of the company’s employees has been estimated to be over 375,000 workers suggesting that the company must adapt to effective management skills that will allow it to control and supervise all the workers. In other words, with a large number of employees, there is the need to implement tactics that can ensure the employees perform their assignments accordingly.

McDonald’s Company provides different products to the market including chicken products, hamburgers, soft drinks, cheeseburgers, French fries, wraps, breakfast items, and desserts. Based on its market share, the company has done an estimation of the number of clients that it serves to be 69 million customers. The firm has managed to enter an estimation of more than 100 nations, and it has opened more than 36,900 outlets. Some of its competitors include Starbucks Company which competes for a larger market share. Therefore, competition from other organizations is a threat to the organization which should be handled effectively.

The other threat is the saturation of some the markets that it has already entered requiring it to incur more costs as it seeks to locate other locations that it can enter and be in a position to attract a large market share. Some of its opportunities include the global market that allows it to choose the nations with stable economies where the company can easily invest and be in a position to progress effectively. There is also the existence of an opportunity regarding advanced technology that has enabled the organization to improve its products’ quality and introduce more advanced commodities to the market. There is also a wide variety of professionals that can be recruited in the organization to help it grow over time.

Governmental Action

The increase in the minimum wage has an impact on the McDonald’s Company and the fast-food industry generally. In other words, the fact that the government decided to increase the minimum wage impact the firm’s operation. For instance, the increase in the wage suggests that the organization will have to incur higher costs. It is because the fir will have to pay its workers higher amounts that it used to pay them in the past leading to a high overall cost. Therefore, it is probable that the company’s level of profit will reduce considering that a higher portion of its revenue will be paid to the employees. Therefore, it is the mandate of McDonald’s Company to come up with better ways to improve its finances.

However, it is possible that the increase in the minimum wage will result in the increase of motivation among the workers (Davidson, & Forsythe, 2017). In other words, it is probable that the employees will offer better services to the organization and the industry resulting in a higher production level. Therefore, the result will be high sales that will contribute to high profits and realization of the firm’s goals and the improvement of the industry. It is for these reasons that increase in wage can be identified to impact McDonald’s both positively and negatively.

References

Davidson, D. & Forsythe, L. (2017). Business in the contemporary legal environment. New York: Wolters Kluwer.

Facella, P. & Genn, A. (2009). Everything I know about business I learned at McDonald's: the seven leadership principles that drive breakout success. New York: McGraw-Hill.