Stakeholders of McDonald’s (An analysis of McDonald’s stakeholders)
This is a detailed analysis of the stakeholders of McDonald’s. It aims to examine the main stakeholders of McDonald’s and how it engages with them. McDonald’s is one of the largest quick service restaurants in the world. Its operations are spread across 118 countries and territories. It serves more than 69 million people every day worldwide (McDonald’s, 2019).
Main stakeholders of McDonald’s
McDonald’s regards its customers, suppliers, and employees as its main stakeholders (McDonald’s, 2019). These stakeholders have impact on the operations of the restaurant and can be affected by it as well.
Customers are the external stakeholders of McDonald’s. Surely, the company’s existence depends on every single customer it serves. It serves around 3.5 million customers in the UK and over 69 million worldwide every day (McDonald’s, 2019). However, its customer base in the USA is gradually waning. Likewise, its appeal to millennials is not cutting across either.
McDonald’s works with a number of suppliers to procure both food and non-food items to run its operations. For instance, Lopez Foods provides McDonald’s with USDA-inspected beef in the USA. Likewise, Kenny Longaker, Frank Martinez, and Keystone Foods supply a wide variety of items to keep the restaurant’s operations going. It is worth mentioning that McDonald’s has a policy of maintaining trusted relationships with the suppliers. This trusted relationship is vital as delay or poor quality of raw materials may affect McDonald’s badly.
McDonald’s is one of the largest employers in the world. It employs approximately 120,000 people in the UK. As of the end of 2018, it employs 210,000 people worldwide which is 25,000 less compared to the number of employees in 2017 (Lock, 2019). However, it is worth mentioning the total number of employees is far higher when franchise employees are added together. Employees are at the forefront of McDonald’s operations and customer satisfaction is heavily dependent on their friendly and professional service.
Other stakeholders of McDonald’s
In addition to its customers, suppliers, and employees, McDonald’s also engages with some other stakeholders. For example, it engages with experts from different sectors, local communities, non-governmental organisation and so on. Relationship with these stakeholders help it in many different ways. For instance, World Wildlife Fund (WWF) experts led an independent analysis of the supply chain of McDonald’s in 2010 to help it identify the raw materials that represented the biggest sustainable sourcing opportunities for it to prioritise (McDonald’s, 2019).
McDonald’s has over the years become a member of a number of non-government organisations e.g. Alliance for a Healthier Generation, WWF’s Bioplastic Feedstock Alliance, and Global Food Safety Initiative to contribute to the global efforts to deal with social and environmental issues. It established a Global Community Leadership Board in 2013 to improve community relations worldwide through disaster relief and charity donation.
McDonalds faces a number of competitors that challenge it every day in its global markets. Burger King, KFC, Subway, Pizza Hut, Starbucks, Domino’s, Dunkin’ Donuts, and Wendy’s are some of those competitors. However, it is worth noting that McDonald’s is No.1 fast food brand in the world in terms of brand value (Lock, 2019).
How does McDonald’s communicate with its stakeholders?
McDonald’s communicates with its stakeholders regularly. It has an internal communication team for that purpose and uses a number of communication channels. For instance, it uses the intranet and weekly newsletters to communicate with the employees. Its advertising campaigns are designed to provide customers with the information on its products so that they can make informed decisions. McDonald’s also has a dedicated media team to deal with all press enquires (McDonald’s, 2019).
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Last update: 20 December 2019
Lock, S. (2019). Number of McDonald’s employees worldwide 2012-2018, available at: https://www.statista.com/statistics/819966/mcdonald-s-number-of-employees/ (accessed 16 December 2019)
McDonald’s (2019) About us, available at: https://www.mcdonalds.com/us/en-us/about-us.html (accessed 10 December 2019)
McDonald’s (2019) Who are your stakeholders?, available at: https://www.mcdonalds.com/gb/en-gb/help/faq/18493-who-are-your-stakeholders.html (accessed 10 December 2019)
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Author: Joe David
Joe David has years of experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality and tourism management.