(A)I need a brief analysis of industry revenues and profitably indicators during
ID: 431804 • Letter: #
Question
(A)I need a brief analysis of industry revenues and profitably indicators during the previous three years at McDonald’s ?(B) how is McDonald’s future technology affecting the employees and could it affect the unemployment rate?
(A)I need a brief analysis of industry revenues and profitably indicators during the previous three years at McDonald’s ?
(B) how is McDonald’s future technology affecting the employees and could it affect the unemployment rate?
(B) how is McDonald’s future technology affecting the employees and could it affect the unemployment rate?
Explanation / Answer
I need a brief analysis of industry revenues and profitably indicators during the previous three years at McDonald’s ?
The fast food chains are undergoing major changes with the new age business models taking up the fancy of customers and businesses alike. With transformation looming large on their faces, businesses are investing finances and resources to renovate their business. McDonald’s is not different in this case. They have registered a net revenue growth of -3.1% and fast food industry grew by -0.6% during the period of 2016-17. As a percentage of revenue, McDonald’s spent 58.6% of its total share on COGS whereas the industry share was 63.7% for the same period. McDonald’s has not shared any data or revenue expenditure for their research. McDonald’s expenditure on Sales, Marketing and General Administration (SG&A) is 9.7% whereas the industry’s spend is 11.7% for the same period. Inventory share revenue for McDonald’s for the same period is 0.2% of total revenue whereas the industry spend is 0.6%. McDonald’s spent 3.1% of total revenue on accounts payable whereas the industry average was 4.7%. In the accounts receivable, McDonald’s invested 6.00% of its total revenue and the industry standard for the same period was 4.9%. McDonald’s invested a total of 86.3% on Property, Plants and Equipments (PP&E) whereas the industry average was 53.5%. McDonald’s intangible revenue share for the same period was 9.5% of total revenue whereas industry standard was 35.4%. The net margins for McDonald’s for year 2017-18 is 22.75% from 14.29% from the year 2015-16 and 2016-17 whereas the industry standard for the same period is 18.2%
how is McDonald’s future technology affecting the employees and could it affect the unemployment rate?
McDonald’s have been upgrading their technology to improve staff productivity, team communication and meeting customer expectation of production and serving food. They have recently updated their menus with TV screens hanging from ceilings and behind the cash counters where the customers can look at the menu and order from there. Food can be ordered online and you can see the details of nutritional content on their website. In few locations, you can order food online and then grab the same after the order has been placed by walking in the McDonald’s restaurant. They have tried to rebrand their image and remodelled their restaurants with new paints, tables and chairs. They have started providing free Wi-Fi for their customers. They have been on the social media and grabbing the attention of customer.
But, all these technology and upgrades have not been able to retain their staff as they feel that they are handling more tasks without any pay raise or proper and enough staffing. The workers rather walk away from all the technology makeover rather than dealing with them. This is resulting in customer waiting for long for their orders to be served. Till last year, McDonald’s was employing 235,000 workers which included corporate and restaurant workers. Workers say they are quitting due to technological confusions. As per the survey, they have been quitting due to the chaos caused by various apps and app orders, new items on menu and self service kiosks. People have been comfortable by switching their jobs rather than embrace the technological changes in McDonald’s
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.