- How does McDonald’s approach the goal of value creation? How is this changing in today’s economic climate?
- 2. Choose a recent significant financial decision for detailed analysis (see ‘additional notes’, below).
- 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:
- • 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:
- • 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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