Monday, November 18, 2019

Mergers, Acquisitions, and International Strategies Research Paper

Mergers, Acquisitions, and International Strategies - Research Paper Example The second company is selected on the merit that it is a public corporation with no history of mergers and acquisition and it operates solely within the United States market; the company that was selected under this merit is the Buffalo Wild Wings. The researcher paper will evaluate the strategy that led to the mergers and acquisitions undertaken by McDonald’s Corporation and it will stipulate whether the mergers and acquisitions were wise choices. In addition, the research paper will evaluate McDonald Corporation’s international business-level strategy and corporate-level strategy and then provide recommendations for improvements. Secondly, the research paper will identify one company that would be a profitable candidate for Buffalo Wild Wings to merge with or acquire. Lastly, the paper will propose one business-level strategy and one corporate-level strategy that can be effective and profitable for Buffalo Wild Wings. McDonald’s Corporation According to Warwick (2013), McDonald Corporation is the largest publicly traded hamburger fast food restaurant chain in the world, which serves averagely 60 million customers in over 115 countries across the world on a daily basis. The McDonald brothers originally started the company in 1940 but it was fully acquired by Ray Kroc who joined the company as a franchise agent in 1955, and this marked the first experience of the company with mergers and acquisitions. Among the companies that the McDonald Corporation has acquired or merged within its years of operations, including the Piles Cafe, Chipotle Mexican Grill, and Donatos Pizza but it has sold off the two latter subsidiaries (Warwick, 2013). The McDonald’s restaurants offer a wide menu to their customers, which consist of French fries, hamburgers, chicken, cheeseburgers, soft drinks, breakfast items, desserts, milkshakes, fruits, smoothies, wraps, salads, and fish. Presently, the company boasts of total assets worth over $32 billion and tot al revenue of over $27 billion and a net income of over $ 5 billion in the past financial year. Buffalo Wild Wings Warwick (2013) wrote that Scott Lowery and James Disbrow opened up the first Buffalo Wild Wings restaurant in 1982 at Columbus, Ohio. As of 2013, the Buffalo Wild Wings restaurant chain, which trades at the NASDAQ, had established its operations in approximately 910 locations mostly in North America and currently, there are ongoing talks about the expansion of the restaurant chain. The menu of Buffalo Wild Wings restaurants mainly consists of Buffalo wings and sauces. In the last financial year, the company generated $748 million in revenues from across its entire business operations. Strategy for McDonald’s mergers and acquisitions According to Warwick (2013), McDonald’s boosts of more than 34,000 locations worldwide and this has been facilitated by the franchising strategy that has so far enabled the corporation to have representation in many countries a nd further enabling it to become among the most popular brands in the world. Besides the franchising strategy, McDonald’s has been able to have a wide market presence because of acquisitions and mergers with other restaurant chains. Concerning this Warwick (2013) stated that McDonald’s undertook various mergers and acquisitions deals during the 1990’s which enabled it to significantly increase its market share, revenue level, and the net income.

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