NN34 Accounting and Finance: Goal of Value Creation


  1. How does McDonald’s approach the goal of value creation? How is this changing in today’s economic climate?
  2. 2. Choose a recent significant financial decision for detailed analysis (see ‘additional notes’, below).
  3. 3. To what extent does your example in ‘2’, above, fit with the organisation’s approach as described in ‘1’. In the first part you should consider: • How does McDonald’s measure value creation? How does it assess opportunities for value creation? How has this changed during 2020/2021? • Which stakeholders does McDonald’s focus on for value creation? For the second part:
  4. • Review in detail a significant financial decision from the recent past. Examples of decisions may include product launch, outsourcing, a capital investment decision or a divestment. • Which methods were/are used? • How were the financial implications balanced with less quantifiable factors? • What processes, if any, are there for post-audit? Evaluate to what extent the actual results met the expectation when the decision was taken. Finally (for the third part): • Comment briefly on how the specific example you’ve described fits in with the organisation’s value creation philosophy – at the time the decision was made and, if relevant, how that might be different now. • Is there anything you’d like to suggest McDonald’s should do differently? Explain. Additional notes:
  5. • Explain how the researched your answer (primary and secondary research and/or reading) and provide the evidence and references as described in the course handbook. • For the specific example (part 2 of the assignment), if possible choose a financial decision which was taken sufficiently long ago that there is already evidence of how well the decision worked/is working out. • Suggested approximate word-count distribution: o 15 – 20% introduction and scene-setting, including reference to the trading/economic environment in which you operate and how that’s changed this year (question 1) o 30 – 40% on value creation approach in the light of the ‘scene setting’ – and how that’s changed (question 1) o 30 – 40% on evaluation of a specific financial decision.
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