Eco 561 Business Proposal for Mcdonalds Essay - 1224 Words

McDonalds Business Proposal Paper ECO/561 February 3, 2012 McDonalds Business Proposal McDonalds has always been a company that shares in the happiness of a child. Recently after taking my own children to McDonalds, I have found that there is not a breakfast option for children. McDonalds should add a happy meal option to the breakfast menu. Current demands by consumers are to add a happy meal option allowing parents to purchase child sized portions of breakfast items. This option could help McDonalds to increase profits by attracting more consumers. Shareholder reports show a quarterly cash dividend per share increase of 15% and annual dividend of $2.80 per share. Comparable sales grew 5.6%. Cash by operations increased $808†¦show more content†¦* The degree of elasticity will tell McDonalds how much they can raise prices before sales start to decline. Not everyone can afford to eat out all the time and people who do go out for breakfast are usually going to work or dropping children off at school. * Calculation Elasticity of Add ing Happy Meal (Q2-Q1/Q1) Q1 - 20 Q2 - 23 total quantity demand increase total 15%. (P2-P1/P1) P1 - $6 P2 - $3 total price decreased by 5%. Divide percent change in quantity by price 15% divided by 5% = 3% elasticity. Company’s Strategies to Increase Revenue * Exploring the competition to see what the others are doing in terms of fast-food breakfasts and children. * Customer focusing strategies to see what other customers want in the children’s breakfast meals. This can be done through questionnaires and feedback surveys both in and out of the store. * Using proper training methods to ensure quality service to customers. * Proper introduction in promoting the new breakfast will ensure customers know about the new product. Define the Economic Theory and Show How You Can Determine the Profit-Maximizing Quantity. * Economic theory is a theory of commercial activities (such as the production and consumption of goods), (McConnell, Brue, amp; Flynn, 2009). * Determining the profit-maximizing quantity requires and understanding the economic concept ofShow MoreRelatedStrategic Marketing Management337596 Words   |  1351 PagesOur thanks go to Janice Nunn for all the effort that she put in to the preparation of the manuscript. Strategic Marketing Management Planning, implementation and control Third edition Richard M.S. Wilson Emeritus Professor of Business Administration The Business School Loughborough University and Colin Gilligan Professor of Marketing Sheffield Hallam University and Visiting Professor, Northumbria University AMSTERDAM †¢ BOSTON †¢ HEIDELBERG †¢ LONDON †¢ NEW YORK †¢ OXFORD PARIS †¢ SAN DIEGORead MoreProject Mgmt296381 Words   |  1186 Pagesand Cases, Fifth Edition Seppanen, Kumar, and Chandra, Process Analysis and Improvement, First Edition Simchi-Levi, Kaminsky, and Simchi-Levi, Designing and Managing the Supply Chain: Concepts, Strategies, Case Studies, Third Edition Sterman, Business Dynamics: Systems Thinking and Modeling for Complex World, First Edition Stevenson, Operations Management, 10th Edition Swink, Melnyk, Cooper, and Hartley, Managing Operations Across the Supply Chain, First Edition Thomke, Managing Product and ServiceRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesTrust Others? 280 glOBalization! Forming International Teams in a Virtual World 291 Myth or Science? â€Å"Asians Have Less Ingroup Bias Than Americans† 292 An Ethical Choice Should You Use Group Peer Pressure? 294 Point/Counterpoint Affinity Groups Fuel Business Success 298 Questions for Review 297 Experiential Exercise Wilderness Survival 299 Ethical Dilemma Is Social Loafing Shirking? 300 Case Incident 1 Negative Aspects of Collaboration? 300 Case Incident 2 Herd Behavior and the Housing Bubble (and Collapse)