McDonalds

Essay

Ioana Ruxandra Mindruta

Southampton Solent University

With operations in 117 countries, McDonalds, world‟s largest chain of fast food

restaurants, is one of the most powerful and geographically diversified companies (see

screenshot 1.0), serving around 64 million customers daily. Headquartered in the United

States, the company began in 1940 as a barbecue restaurant and managed to become,

in 2011, a symbol of globalization and the fast-moving society. (www.warc.com)

Screenshot 1.0 McDonald‟s system-wide outlets (www.warc.com) 23.11.2011

As this essay‟s research question is “Does the way McDonalds communicates its

community relations activities to other stakeholders strengthen its corporate reputation

with these audiences?” there will be an emphasis on communication channels used by

McDonalds, their strengths and weaknesses, stakeholder profiles, all of them analysed

from a community relations perspective. To begin with, according to Tench and

Yeomans (2006), stakeholders „are those who have an interest in a specific company‟.

Some examples of groups of people who have a stake in McDonalds Corporation

include: customers, financial investors, employees, suppliers, nutritionists, publics,

community, the Government, media, etc. This classification is quite flexible, as in some

occasions, media can be seen just as a tool used to communicate news and information

to other stakeholder groups; furthermore, McDonalds‟ customers can become publics

once they acknowledge the importance of a healthy diet and lifestyle, decide to take

action and campaign for more healthy menus.

So, considering the fact that this essay will focus on Community Relations, it is

important to outline a few characteristics related to the term and its origins. Since the

late nineteenth century, „the use of the term community has remained to some extent

associated with the hope and the wish of reviving once more the closer, warmer, more

harmonious type of bonds between people ‟ (Hoggett, 1997). In other words,

„community plays a crucial symbolic role in generating people‟s sense of belonging‟

(Crow and Allan, 1994). Those two theoretical views stress the idea of a united group of

people, with common interests and goals, bringing together a number of elements such

as solidarity, trust, commitment or mutuality.

As Tench and Yeomans (2006) emphasise, „stakeholders having a lot of power and also

being interested in the company, are key players, essential to the welfare of the

corporation‟. This is the reason why, maintaining permanent communication with them,

and building trustworthy relationships is crucial in order to succeed as a worldwide

popular brand. From a Community Relations point of view, information about charities,

environmental issues, CSR, sponsorships, waste or packaging are relevant to all groups

of stakeholders and latest news and developments are being communicated by

McDonalds through a variety of tools. The main channels of communication that

McDonalds uses are adapted to each stakeholder group‟s needs and they are also very

modern. Some examples in this case could be: McDonald‟s website in United Kingdom,

www.mcdonalds.co.uk and its official corporate website, www.aboutmcdonalds.com,

The Annual Report, Social Media (Facebook and Twitter accounts), flyers and

brochures, newsletters, presentations, press releases, articles, etc.

Regarding community issues, it is vital to identify the degree of interest that each group

of stakeholders has in the matter. It is clearly understood that customers, the community

itself, nutritionists and sometimes media are usually concerned about the wellbeing and

health of the society; while suppliers or shareholders have a predominant interest in

monetary issues. This is why, when communicating community information, McDonalds

focuses more on some particular groups, than others, using specific channels of

communication.

The main strengths of corporate communications are closely linked to the fact that

McDonalds is considered a global brand, one of the most famous and loved companies

in the world in any industry. Its strong brand image and reputation allows it to have at its

disposal various means of communication to its stakeholders. As this is not enough, due

to its popularity, the messages about charities, environmental issues or latest

developments in recycling reach large audiences, who can become aware of the latest

changes, adapt their behaviour, ideas and thoughts, and contribute to McDonald‟s

stability and wealth. Also, another strength is that, due to its popularity, McDonalds does

not have to work as hard as other less known companies to raise awareness of its latest

news or updates, because just the simple display of the logo, or by mentioning the

name of the company, online buzz is automatically created and their messages reach

people from all over the world.

On the other hand, when exploring weaknesses, McDonalds has faced several trials,

public accusations, negative publicity, and several campaigns were organised against

them. This must have had a negative impact on their stakeholders and maybe, some of

them, have lost or increased the confidence they had in the information provided by

McDonalds and their initiatives. In some occasions, the corporation showed poor

marketing effort and connection with its local customers. According to

http://ivythesis.typepad.com, several advertisements and promotions used by

McDonalds were considered offensive and inappropriate. For example, „In China, the

company launched a television commercial that shows a Chinese man kneeling and

begging for a discount from an electronics salesman who refuses due to the fact that his

coupon has expired. The purpose of the advertisement was to show that people do not

have to be in order to take advantage of the company‟s promotion, but this was

interpreted in a total different way, and many voices said that it actually portrayed that

Chinese people lack in dignity.‟

Globalization, expansion in other countries is considered as one of the most important

opportunities for McDonalds. The company still needs furthermore penetration in

different parts of the world, specifically Asia, Europe as well as Latin America

(http://ivythesis.typepad.com). In addition, diversification and acquisition of other quick-

service restaurants is another opportunity that could benefit McDonalds.

One of the main threats that affect McDonalds is the economic slowdown of some

countries and the financial crisis which had a negative impact on all the stakeholder

groups. Furthermore, competitors are always a threat, as they offer similar services.

This fact forced McDonalds improve their communication with their customers through

the products they buy. A Nutrition Information Initiative was developed, in order to

inform customers about the proportion of calories, proteins, fats, or carbohydrates that

exists in the food they purchase.

Regarding social media, on the main Facebook page, which is extremely popular

(11,897,920 likes), McDonalds uses the application „Events‟ to communicate with its

stakeholders, particularly customers and active publics, regarding its charities. In this

case, a public event entitled „Give a hand®‟ aims to help children and families in need

by persuading people to buy a cut-out of a hand from their local McDonalds for just £1.

Furthermore, the company has a special Facebook page dedicated to charities, “Ronald

McDonald House Charities”(RMHC), aimed to all stakeholders, from where, all the

users and visitors can get the information they need concerning charities, they can view

pictures, donate to RMHC, play games and get the updates about the latest events.

McDonalds uses Twitter to interact with its followers (196,107), to inform investors and

other groups of interested stakeholders about the release of the Annual Sustainability

Report, to set up competitions, or again, similarly to Facebook, to attract public notice

concerning the RMHC, which has 10,668 followers. Social media represents a strength

regarding McDonalds corporate communications and it brings a significant contribution

to its reputation among all audiences, as the brand usually appeals to young individuals,

who use Facebook and Twitter on a daily basis. As evidence for this statement can

serve statistics, which say that there are approximately 175 million users on Twitter and

that Facebook has more than 600 million monthly active users

(www.articles.businessinsider.com).

Moreover, McDonalds focuses, in the process of communication, on two different

models: Public information and two-way symmetric PR. Regarding the first mentioned

model, its purpose is to disseminate information and truth is essential. Grunig & Dozier

(1995) emphasise that :‟traditional communication procedures favour one-way tools,

allowing corporations to send messages to publics through brochures, news releases,

press conferences and, more recently, electronic mail and video “magazines” „. In

McDonald‟s case, public information works through brochures, flyers, annual reports or

advertisements, means of communication that allow only one-way communication,

coming from McDonalds. From another perspective, two-way symmetric PR, according

to Grunig & Dozier (1995), „is professional because it is based on a body of knowledge

and a set of techniques used to manage conflicts and build relationships with publics‟.

Especially through social media, McDonalds can provide information, but at the same

time, it can receive feedback and suggestions of improvement from customers and

stakeholder groups, in a really straightforward and efficient way.

On the official UK website, www.mcdonalds.co.uk, there are dedicated sections for

environment, charities or careers. Concerning the environment, information about litter,

waste, energy or packaging is provided and aims to reach suppliers, who work closely

with McDonalds to develop and improve products and production techniques. According

to www.warc.com, the most important suppliers are Simplot, a potato producer, and

Keystone Foods, the boneless chicken nugget-inventor, among other countless

suppliers all over the world.

McDonalds plays an important role in the community as it offers jobs for the people

living locally. Their official global corporate website, www.aboutmcdonalds.com, seems

to be designed especially for all groups of stakeholders, fact that helps them build

lasting relationships, based on communication and trust. The website facilitates the

process of communication with investors and suppliers by offering the possibility to

download Annual or Corporate Responsibility reports (see screenshot 1.1) or by viewing

the latest News Nuggets related to financial data (see screenshot 1.2).

Screenshot 1.1. McDonald‟s Corporate Responsibility Report (www.aboutmcdonalds.com) 01.10.2011

Screenshot 1.2. McDonald‟s News Nuggets (www.aboutmcdonalds.com) 01.10.2011

In addition, they use their website as a tool in order to communicate with their potential

future employees, making available all the details about work experience, internships,

work trials or head office positions. McDonalds talks about the benefits of being their

employee, the trainings they provide and future career opportunities. Due to the

diversity of people that can reach their websites, which are clearly organised and highly

accessible, www.mcdonalds.co.uk or www.aboutmcdonalds.com are effective means of

communication with a whole range of audiences, and this brings a massive contribution

to McDonald‟s corporate reputation. By providing updated, well-structured and adequate

information for all stakeholders, McDonalds builds even further long-lasting and strong

relationships.

Two other channels of communication, flyers and brochures, are the most appropriate

when reaching the community, as people of different ages, jobs or preoccupations are

part of it, and not all of them have access to the internet. The flyer below (screenshot

1.3) shows the approach that McDonalds takes when using written communication.

They provide details about RMHC and they encourage people to take part in one of

their events, which was organised to raise funds for a seven month old baby suffering

from coarctation. So, fliers and brochures are another effective way that McDonalds

uses in order to inform about its community activities, by aiming to reach the actual

community when utilising this tool.

When exploring the 2010 Annual Report, there are not mentioned any facts about

McDonald‟s community activities; on the contrary, the document illustrates plenty of

financial information( see screenshot 1.4), relevant for investors or shareholders, who at

the end of the day, only care about their shares and dividends. Community concerns,

such as environmental issues or donations, are not exactly in their area of interest;

however, they will make an effort to look as “good corporate citizens” and maybe, from

time to time, give up some money for charities, while thinking, at the same time, about

opening new stores and increasing their profits.

Screenshot 1.4. McDonald‟s Annual Report (10.12.2011)

As far as communication through press releases is concerned, McDonalds publishes all

of them on www.aboutmcdonalds.com, and many of their topics are related to

community. A few examples in this case could be: commitment to offer improved

nutrition choices, disaster relief efforts in Japan, the opening of World‟s 300th Ronald

McDonald House, etc. These are especially designed for the media, but their real target

audiences are the other groups of stakeholders, who use newspapers or television for

staying updated and informed. This channel of communication strengthens McDonald‟s

corporate reputation with its audiences. Why? Because all the press releases are being

sent to highly popular newspapers, such as The Telegraph, The Guardian, Daily Mail,

The Independent, etc. As all these publications are deeply trusted by the public, the fact

that McDonalds publishes its latest news in them certainly has a positive influence on its

corporate reputation.

Another essential fact to mention is that McDonalds is one of the major sponsors of the

2012 Olympics. Due to their initiative, they have faced massive criticism. According to

www.uk.reuters.com, the British Medical Association argues that:”Given many countries

in the developed world, and some in the developing world, are facing a major problem

with obesity, it is unfortunate that McDonalds are major sponsors at the 2012 London

Olympics". On the contrary, one of McDonald‟s spokeswomen replied: “"There is no

doubt that McDonald's food can fit into a balanced, active lifestyle and we offer a range

of choices on our menu, as well as nutritional information on our trayliners, website and

on packaging, to help our customers make an informed choice”. McDonalds try to

emphasise on their latest developments and improvements, but the core idea remains

the same: the food they provide is unhealthy and the brand contributes to the fact that

“almost a quarter of children in the UK are already overweight or obese by the time they

start primary school, and more than a third are overweight or obese by the time they

leave to start secondary school” (www.hackneycitizen.co.uk).

In their attempt to make a key move into education, McDonalds introduced its own

degree course in business management, accredited by Manchester Metropolitan

University, and, according to Senior vice-president David Fairhurst, it “challenges

snobbish misconceptions about McDonald‟s staff” (www.bbc.co.uk). The famous

corporation wants to prove how seriously the company takes the training of its staff,

and, on this occasion, communicates this important message to its stakeholder groups

by actually doing something outstanding, not only transmitting information. Another

purpose of this initiative was “to challenge the old McJob label”

(www.newsfeed.time.com), as the term named a low-paying, dead-end job that requires

few skills. McDonalds wanted to demonstrate that its staff is highly qualified, educated

and capable of any achievement and that working for this corporation is actually a

reason of pride and personal satisfaction.

One major recommendation that would strengthen McDonald‟s corporate reputation

with its stakeholders would be to include a new section on the website

(www.mcdonalds.co.uk) where the public relations team should respond to many of the

accusations that McDonalds is facing in media and all over the internet (The

McDonald‟s “French fry” lawsuit, McLibel, McDonald‟s food not decomposing, unhealthy

food, obesity issues or foreign objects found in their meals). This would certainly have a

positive impact on its reputation and people might begin to trust the brand more. Lack of

reaction when being defamed or criticised is often perceived as a prove of guilt, so

replying to newspapers‟ articles or discussions in the media, is a good strategy for

defending one‟s corporate image. In addition, it is a professional manner of

strengthening relationships between the groups of stakeholders. A good example in this

case, which proved to be successful, is BP, which, after the oil spill disaster in Mexico,

included a new tab on their website (www.bp.com), called “Golf of Mexico restoration”

(see screenshot 1.5), where they explain their part of the story, and this helps rebuilt the

image of the brand.

Screenshot 1.5. Gulf of Mexico restoration (www.bp.com) 15.12.2011

Regarding McDonald‟s CSR, all the aspects related it are mentioned and explored in

the McDonald’s Corporation Worldwide Corporate Social Responsibility 2010 Report,

aimed at all categories of stakeholders. Topics such as Nutrition and Well-Being,

Sustainability, Environmental Responsibility, Employee Experience or Community are

thoroughly analysed. Due to these key points of interest, the report targets especially

suppliers, community, nutritionists, environmentalists and employees. This means of

communication strengthens McDonald‟s reputation, and it is clearly proved by the fact

that all the necessary information is gathered in one well-organised report, which is

highly accessible to any individual on McDonald‟s website, www.aboutmcdonalds.com.

To conclude, McDonalds communicates its activities related to community

(environmental issues, charities, sponsorships, jobs, etc) mainly to stakeholder groups

such as: customers, media, employees, environmentalists or nutritionists, suppliers, and

so on. In most of the cases, via communication tools such as social media, websites,

flyers/brochures, the CSR report, McDonalds manages to strengthen its corporate

reputation among all audiences, by keeping them updated and by building strong, long-

lasting relationships with its stakeholders. It is also imperative to outline the suggestion

of improvement developed in this essay: McDonalds should offer a more transparent

approach towards all the accusations they face every day in the media by actually

replying on their website to: videos, news or articles aimed to criticise the brand and that

might affect McDonald‟s corporate image.

References

Books

Crow, G. and Allan, G. (1994) Community Life. An introduction to local social relations,

Hemel Hempstead: Harvester Wheatsheaf

Grunig, E. and Dozier, D. (1995) Manager’s Guide to Excellence in Public Relations and

Communication Management, New Jersey: Lawrence Erlbaum Associates

Hoggett, P. (ed.) (1997) Contested Communities: experiences, struggles, policies,

Bristol: Policy Press ISBN

Tench, R. and L. Yeomans (2006) Exploring Public Relations, Essex: Pearson

Education

Websites

Anonymous, 2009, Strategic Business Analysis: McDonalds [online], [10.12.2011],

available from: http://ivythesis.typepad.com/term_paper_topics/2009/02/mcdonalds-

strategic-business-analysis.html

Anonymous, 2011, McDonald’s corporation in consumer foodservice [online],

[10.12.2011], available from: www.warc.com

Anonymous, 2011, SLO e-Flyers [online], [10.12.2011], available from:

http://slochamber.org/cm/E-Flyers/SLO%20Flyers%20April%202008.html

AO, 2011, McDonald’s super-size Olympics plan upsets health groups [online],

[14.12.2011], available from: http://uk.reuters.com/article/2011/07/21/uk-mcdonalds-

olympics-idUKTRE76K42F20110721

BP, 2011, Gulf of Mexico restoration [online], [15.12.2011], available from:

http://www.bp.com/sectionbodycopy.do?categoryId=41&contentId=7067505

HJ, 2010, U.K University to offer McDonald’s degree [online], [14.12.2011], available

from: http://newsfeed.time.com/2010/11/27/u-k-university-to-offer-mcdonalds-degree/

JE, 2011, Giant McDonalds at Olympics will hit child health [online], [14.12.2011],

available from: http://hackneycitizen.co.uk/2011/07/24/mcdonalds-olympics-child-health-

hackney-mp-diane-abbott/

McDonalds, 2011, Ronald McDonald House Charities [online], [18.12.2011], available

from: http://www.mcdonalds.co.uk/ourworld/rmhc/rmhc.shtml

McDonalds, 2011, McDonald’s press releases [online], [18.12.2011], available from:

http://www.aboutmcdonalds.com/mcd/newsroom/press_releases.html

NC, 2011, How many users does Twitter really have? [online], [19.12.2011], available

from: http://articles.businessinsider.com/2011-03-31/tech/30049251_1_twitter-accounts-

active-twitter-user-simple-answer

SC, 2010, McDonald’s to launch own degree [online], [14.12.2011], available from:

http://www.bbc.co.uk/news/education-11810930

Other Sources

McDonald‟s 2010 Annual Report

McDonald‟s 2010 Worldwide Corporate Social Responsibility Report

APPENDIX

Appendix 1

‘All publicity is good publicity’

To start with, Publicity is by definition, information that concerns a person, group, event,

or product and that is disseminated through various media to attract public notice. The

emphasis, therefore, of this definition is on “attracting public notice.”

After all, if nobody knows you are there, how can you expect them to buy from you?

Publicity consists of articles in the media including newspapers, radio and TV,

forums and social media or blogs.

In the case of most companies and brands, the answer to the question “is all publicity

good publicity” would be a resounding no. Too much publicity about foreign objects

found in burgers, faulty engines causing emergency landings and unrealistic fee

increases would certainly have a negative impact on a company‟s reputation.

The statement that “All publicity is good publicity” can only be relevant for small shops

or new businesses, according to Alan Sorensen, an economics professor at Stanford.

When talking about largely known companies, such as McDonalds, bad publicity can

only have a negative effect. At the moment, McDonalds is famous all over the world and

people are aware of it (research shows that even a two-year child recognises the

McDonalds logo). This is the reason why negative publicity can do no good, but only

lower the number of customers and damage McDonalds reputation.

Patrick Barwise, a professor at London Business School claims that negative publicity

may generate a buzz and increase short-term sales, but overall, it will damage the

brand by actually increasing the problem they are currently facing.

Empirical studies found that negative information is capable of affecting consumers'

beliefs and attitudes. In fact, it has been shown that a single item of negative

information is capable of neutralizing five similar pieces of positive information (Richey

and Fortin 1975).

As the organisation I represent is McDonalds, I chose a case study which proves that

not all publicity is good publicity.

The so-called "McLibel trial" was a British court case involving libel, with important

implications for public relations professionals and company management. McDonald's

Corporation sued two unemployed environmental activists, Helen Steel and David

Morris, for defamation. Why is that?

Because they had been distributing a brochure entitled “What‟s wrong with

McDonalds?” and they were accusing the company of:

Selling addictive junk food

Exploiting children with its advertising

Altering its food with artificial chemistry

Perhaps the most negative impact on the company was caused by the fact that

McDonald's:

Employed highly paid lawyers to fight their case, when the campaigners

represented themselves

Broke the record for the longest libel trial in English legal history (three hundred

fourteen days)

As expected, the McLibel trial was all over the media... newspapers, television, radio;

even a documentary film, McLibel, was made about the case by Franny Armstrong. Due

to all this publicity, this trial was a public relations disaster for McDonald's. The judge

finally agreed with several of the arguments presented by the two campaigners, but

Steel and Morris had failed to prove all their points and so the court ruled that they had

indeed libelled McDonald's. The judge awarded damages of sixty thousands pounds.

This case harmed the image of McDonalds and tied up management resources for

years. Its executives were made to look foolish and the case also cost the company

many millions of dollars. In addition, all this negative publicity lead to a decrease in their

sales, which clearly proves that not all publicity is good publicity.

Appendix 2

‘You don’t always have to tell the truth to the press’

In McDonald‟s case, this statement is right, so inside the debate all the arguments

would have been in favour of the affirmation. Telling a piece of information to the press

is basically sending updates and news to all your stakeholders. So, by lying to the

press, you actually mislead all the groups of people that have a stake in the

organisation. In the last year, McDonalds has tried to modify its menus by introducing

healthier alternatives such as salads, wraps and displaying the calories contain of each

type of food served. But there are still a lot of things that the corporation does not reveal

or communicate to the press. Due to the fact that they are still one of the top worldwide

companies and people continue purchasing their products, it is quite clear that not

telling the “real truth” about their food, does not affect the opinion that their customers

have about them.

For example, one year ago, there was a video which become quite popular on social

media that showed how McDonald‟s burgers or French fries do not decompose, not

even after a year. Various sources claimed that McDonald‟s only produces chemical

food with no nutrition benefits. Mc Donald‟s never talked about the issue, and continues

to emphasise on the quality of their products, despite the fact that even people who buy

their food are aware that it is not the best choice for a healthy meal.

According to www.24sevenpost.com, even though McDonalds claim that their fries

contain a natural flavour, we all know that, today “natural” can mean just about anything.

A substance can be natural but it may violate a religious or dietary restriction or it may

cause allergic reactions.

It has been also talked about a hidden ingredient that McDonald‟s might be using,

called excitotoxin, which over-stimulate brain cells to the point until they day. Lots of

people experience headaches when this occurs. This is a serious issue that could

dramatically affect even the lives of unborn children, as the excitotoxin can pass even

the placental barrier.

In addition, research shows that you would have to walk 7 hours straight to burn off a

Super Sized Coke, fries and Big Mac. On the other hand, McDonald‟s seems to be the

perfect solution if you want to put on some weight. These are aspects that the company

never talks about, and when they do, they try to spin or frame the story, mentioning just

the aspects that put them in a favourable light.

To conclude, McDonald‟s does not always tell the truth to the press and this seems to

be working for them, as their profits are going up and they are considering extending to

parts of Asia, Latin America and Europe.

Appendix 3

‘What the public thinks does not always matter’

Davis (2004:59) claims that “publics have an importance attached to them because of

their specific interest and power, current and potential”, while Grunig and Repper

(1992:125) say that : “Many people in a category of stakeholders-such as employees or

residents of a community- are passive. The stakeholders who are or become more

aware and active can be described as publics”.

If asked officially, McDonald‟s will always answer that what the public thinks always

matters, as they want to show respect to their stakeholders. In real life, McDonald‟s is

aware that a lot of people have a negative perception of them, but they do not bother as

long as people continue to buy from them. McDonald‟s has always been a controversial

brand, which had to face a lot of negative publicity and a lot of campaigners protested

against them. However, they managed to recover and maintain a top position, which

clearly proves that even if the publics has a predominantly unfavourable image of

McDonald‟s, this does not affect them in a direct way.

According to www.makaje.wordpress.com, as McDonald‟s is a large company, they

have many Key Publics. However, three key publics have been identified: families with

kids, employees of McDonald‟s and Health Communities.

For example, families with children know that there are other healthier alternatives, yet

they choose McDonald‟s due to prices, the friendly environment, the fact that all their

restaurants are easy to get to and are often placed in central and highly populated

areas. As www.makaje.wordpress.com explains, McDonald‟s has the opportunity to

meet the demands of the public by showing the will to change and improve where

customers pinpoint that change is essential. The emphasis is on the fact that public

supporters of McDonald‟s will stay with them as long as they get the impression that

McDonald‟s is trying to improve.

McDonald‟s prosperity is also proved by winning “Best place to work” in different

countries and being in the top 10 of “Most Admired Companies 2011”. This certainly

enhances McDonald‟s image as a work place and shows good reputation, which makes

the employees happy and respected among family, friends and public.

To conclude, for McDonald‟s, what the public thinks does not always matter. They are

often criticised, blamed or argued about, but they manage to win prizes, keep their

profits up and they continue to develop by adding healthier choices to their menus and

trying to become more transparent; however, they mention only the side of the story that

advantages them.

Appendix 4

‘Shareholders are more important than customers’

Concerning this statement, McDonald‟s would be totally against. The company

considers shareholders vital to their existence, as they are the ones who invested in the

corporation and basically McDonald‟s belongs to them. As long as the company is

making profit, they make money from the business, get a good dividend and increases

in their shares‟ price, shareholders are satisfied and are not likely to invest somewhere

else.

Furthermore, customers are still more important, as they bring their money in by buying

food. Without customers, McDonald‟s goes under and it is not able to stay on the

market. So, why would shareholders be more important than customers, if without

customers a company is not able to survive? No customers would mean no profit, no

good dividends and no increases in shares‟ price. This is the reason why McDonald‟s

values to a large extent its customers and tries to improve its services for them.

Shareholders represent just the support for the whole business to start and develop.

They can come and go, there will be always people willing to invest in McDonald‟s as

long as the number of customers does not dramatically fall, so for the corporation is a

better strategy to build a long term relationship based on trust with its customers, than

focusing more on its relationships with shareholders, who, at the end of the day, only

care about their personal incomes and profits.

It is interesting to acknowledge the balance between the degree of importance, just by

reflecting on the following question: “It is clear that a company can survive with only one

major shareholder; but would it be able to make profit with only one customer?” This

interrogative sentence, clearly differences the degree of importance between a

shareholder and a customer, as the obvious answer is “no”. Companies need

impressive numbers of customers, so in order to attract more of them, they should be

aware of their increased importance and invest more time in figuring out ways to appeal

the targeted audiences.

According to www.managementtoday.co.uk, McDonald‟s has done a good job in re-

inventing itself over the last few years. With the stakeholders‟ support they managed to

modernise and update the stores and even extend the open hours. The company also

cashed in well on trends like coffee and smoothies. All these facts lead to a boost in the

European sales by 4%, and this is thanks to the customers, who bought their products

and increased the overall profit.

Overall, it should not be understood that McDonald‟s does not value its shareholders;

the corporation acknowledges their importance: on the www.aboutmcdonalds.com,

there is a special tab dedicated to shareholders, where then can find all the information

that concerns them. The main point is that customers are those who keep the business

going, and without their existence, dividends and share prices would not be able to

increase.

Appendix 5

Appendix 6

Detailed Stakeholder Map

Competitors

Burger King

Wendy’s

Taco Bell

Sonic

Rally’s

Subway

Chili’s

Olive Garden

MOS Burger (Japan)

Bob’s (Brazil)

Herfy (Saudi Arabia)

Quick (France)

Goody’s (Greece)

Max (Sweden)

Jollibee (Philippines)

Lotteria (South Korea)

El Corral (Columbia)

Steers (South Africa)

Wimpy (South Africa)

Quick (Belgium)

Hesburger (Finland)

Suppliers

Groupe Holder

FSB Foods

Rainforest Alliance

Simplot

Keystone Food

Richard Hoskin (beef)

The Lakes Free-Range Eggs Company in Cumbria

17,500 British and Irish farmers providing: pork, oats, organic milk and potatoes,

Blogs/Bloggers

http://mcchronicles.blogspot.com/ ,

http://www.citymama.com/,

http://www.blogher.com,

Key publics

advertisers (Manchester News)

dieticians (Food Group of Australia)

Morgan Spurlock

Newspapers

Daily Mail

The Guardian

Reuters

The Telegraph

BBC

The Independent

The Mirror

Social Media

Facebook

Twitter

YouTube

Flickr

Tumblr

Myspace

Customers

Families

Students

Busy singles

People with a low income

Opponents

PETA

Hellen Steel and David Morris (McLibel)

McDonald’s Workers’ Resistance

MacJoy

McDonaldland

Quality Inns International

Viz top tips (UK)

Stop McDonalds