Question

report on Managerial accounting practices of a company like burger king etc. or any industry

Answer 1

I am taking an example of MC donald's

Value chain analysis is an analytical framework that assists in identifying business activities that can create value and competitive advantage to the business. You can read about the theory of value chain analysis here.

McDonalds Value chain analysis

Primary Activities

Inbound logistics

Operations

McDonald’s operates Company-owned and franchised restaurants. About 80% of McDonald’s restaurants are owned and operated by independent franchisees. McDonald’s franchise restaurants have one of the following formats: conventional franchise, developmental license or affiliate.

Conventional franchising involves franchisees paying rent and royalties on the percentage of sales along with the payment of initial fees when opening a new restaurant. In this type of franchising, McDonald’s Corporation owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and décor.

Developmental license involves licensees providing capital for the entire business, including the real estate interest. In developmental license agreement no capital invested by McDonald’s Corporation. Royalty is paid by licensee on the percentage of sales in addition to initial fees upon the opening of a new restaurant or grant of a new license. This structure of developmental license ownership is used by McDonald’s in more than 70 countries with a total of 5,228 restaurants.

Affiliates as another form of franchising refers to a limited number of foreign affiliated markets. McDonald’s receives royalties from affiliates on the percent of sales. Japan accommodates the largest numbers of affiliates with close to 3,100 restaurants.

Outbound logistics. Macdonald’s restaurants operate in the following formats: sit-down restaurants, drive-thru, counter-service outlets in food courts and ski-thru. The process of obtaining meals in sit-down restaurant format is conventional process of dining out in a restaurant and it involves a waiter or waitress taking order and delivering the food. McDonald’s counter-service outlets, on the contrary, involve self-service. McDonald’s is credited with the invention of drive-thru and sky-thru formats of food delivery.McDonald’s does not offer home delivery services as yet.

Marketing and sales. McDonald’s uses print and media advertising extensively in order to communicate its marketing message to the representatives of the target customer segment. Along with print and media advertising, this amount was spent on sales promotions, events and experiences and public relations.

Service. High speed of the provision of customer service is one of the main competitive advantages of McDonald’s. However, attempts of the company to provide excellent customer services contradicts its practice of paying minimum or slightly above minimum wages to its employees….

McDonald’s Corporation Report contains a detailed discussion of McDonalds Value Chain Analysis. The report also illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces and McKinsey 7S Model on McDonald’s Corporation. Moreover, the report contains analysis of McDonald’s marketing strategy, its financial performance, leadership and organizational structure and discusses the issues of corporate social responsibility.