ipl-logo

Business Case Study: Genie Investments

1471 Words6 Pages

EXECUTIVE SUMMARY

The purpose of this report is determine which locations Genie Investment’s should plan to build for the International McDonald franchises. The two locations selected are Sydney, Australia and Birmingham, England. During this time Genie Investment’s has looked into two key points for considering the new locations: infrastructure, and overall economic conditions. Both locations are expected to become profitable within three to five years.
Initial investment of $640,000 for both locations, Genie Investments and its investors would expand current profits of approximately three million annually between both locations after initial investment reimbursement.
Employee cost of operations in both locations would be approximately $684,000 leaving 2.3 million in revenue annually.
It …show more content…

Startup costs for a new location, which includes construction and equipment expenses that are between $955,708 and $2.3 million. (Corporation, McDonald's Franchising Opportunties). Franchisees must pay 40% of the startup costs with cash or other non-borrowed resources, while the rest can be financed. In addition to these costs, McDonald's charges a $45,000 franchise fee and an ongoing monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which is a percentage of monthly sales (Australia). To move forward with this project in Sydney a location would need to be acquired.
Australian employment costs run higher than the United States. The average crew member makes approximately:
· $614.40 per employee per 40-hour week. The average McDonalds requires ten to twelve crew members.
· $764.00 per shift manager per 40-hour week. A shift manager is needed one per shift.
· $825.60 per store manager per 40-hour week, McDonald’s store managers are not on salaried. (GlassDoor)
· 4% franchise fee required for all McDonald’s restaurants Birmingham,

Show More
Related
839 Words | 4 Pages

Summary of the Facts In TurnAround Couriers Inc. v. C.U.P.W. (2012), TurnAround Couriers Inc. is the Applicant, and The Canadian Union of Postal Workers is the Respondent. This case comment refers to a Federal Tribunal’s jurisdictional ability to hear a labour dispute concerning a courier company. TurnAround Couriers Inc. (“TurnAround”) is a Toronto-based “same-day” courier service that was established in 2002 and operated as a for-profit corporation. TurnAround’s primary business transactions included courier delivery by foot, bicycle and subway. Car delivery was also available but was outsourced through a separate company.

Read More
633 Words | 3 Pages

Daytun Inc. started in 1980 in the London market as a copy of Xerox. Daytun builds upon the currently structure of copier sales, while adding service maintenance contracts. By focusing on strategy and creating a different mindset in this industry Daytun was able to overtake the London marketplace and securing its customers for the next several decades. Daytun has taken its success in the London and worked plans to increase revenue and level of services to the copiers it’s distributing. Overall growth in this area is attractive in an environment to build copies and copies of there business model around Ontario.

Read More
461 Words | 2 Pages

Kroc ended up buying the land where the franchisees were and were eventually able to buy the company out for $2.7 million. In 1961. As we continue with the timeline, ray continues to make changes to the restaurant that allows the restaurant to continue its rapid growth, changes included: name change, adding a mascot, the expansion of the menu and even getting rid of cutlery all together and just using disposable packaging. Thus, the Mcdonald’s restaurant was

Read More
1081 Words | 5 Pages

In her essay, “Does Texting Affect Writing?” published in They Say/ I Say book, Michaela Cullington describes how texting affects writing. She includes points how texting has taken a toll on students’ writing. Some effects include punctuation, spelling and grammar, sentence structure errors and so on. Then she gives other viewpoints that argue that texting does help writing.

Read More
1165 Words | 5 Pages

July 1978, Long Island, New York, “Abdul Enterprises” is first introduced as a lucrative Arab Sheikh looking to put oil investments into valuable artworks. On the otherhand, “Abdul Enterprises” is a set up for the Long Island branch of the Federal Bureau of Investigation to investigate security fraud and find stolen artworks. Yet, once the Federal Bureau of Investigation begin their “scam” they find a lot more than what they wanted within congressmen, senators, and even mobsters. New Jersey has been a state riddled with “corruption” dating back to Edward Hyde, 3rd Earl of Clarendon in 1701 who was known to take bribes and complete favors for friends, yet why was it not prosecuted then as Senator Robert Menendez is being prosecuted now or how

Read More
956 Words | 4 Pages

McDonalds is a fast food restaurant that serves the normal burgers fries, wraps, salads ect. it began in America however the market over there is much bigger so it eventually moved to Australia and now it operates all over the world. Legal and government regulations are the rules and laws that must be thought about when planning a business, things like licenses and permits that need to be obtained before starting the business. Licenses are legal documents that say you are allowed to do things for example you need a gun license or a driver’s license if you want to shoot or drive. So in McDonalds case they had to obtain a food service license, so that they can legally sell and serve food to the public getting this license alone can range from $100-$1000 depending on location and amount of employees, plus licenses can expire so you'd need to make sure you have enough money to renew the license (from pos.toasttab.com)

Read More
602 Words | 3 Pages

This would help in building customer loyalty and trust. 3. Cost-effective - The initial investment required to open the store is only $30,000, which is relatively low. Moreover, Colin and Ed have already invested $12,000 in inventory, which

Read More
755 Words | 4 Pages

They get the food ingredients from one supplier and the drinks are from another supplier. McDonald’s has nothing to sell selling if they didn’t have a supplier. The company must make sure the suppliers are cooperation and trustable.

Read More
1601 Words | 7 Pages

McDonald’s is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. Under franchising visionary Ray Kroc, McDonald 's became the world 's premier food brand by selling the rights to operate a McDonald 's store. With this model, MCD keeps overhead costs down and lets local owners deal with individual units, while food costs remain low and service remains fast for a culture increasingly on the go.

Read More
733 Words | 3 Pages

1. Supporting point 1: Nowadays we can see these fast food restaurants in almost every shopping mall and there is at least one of these franchised restaurants in each area of the city and still increasing in number because of the high demand. a. Sub-supporting point 1: Although there are lots of choices of food inside a mall, but people often choose fast food as it is affordable and yet it is tasty and filling at the same time. b. Sub-supporting point 2: For example, in the Kuala Lumpur International Airport, there are a lot options of food to choose but the two franchised McDonalds are still always

Read More
3370 Words | 14 Pages

The organization view themselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability. At year-end 2014, more than 80% of McDonald’s restaurants were franchised. From

Read More
1145 Words | 5 Pages

Based on our calculations in Appendix 1. at the first stage support costs were allocated to two existing departments, i.e. Machining and Assembly, based on direct labor hours. Therefore total amount of costs assigned to Machining department is $472.000,00 and to Assembly department is $248.000,00. At the second stage total costs from both departments were distributed to products (Regular and Deluxe). Referring to our calculations in Appendix 1.

Read More
2179 Words | 9 Pages

INTRODUCTION:- Jurlique International Pty Ltd. is an Australian cosmetics manufacturer specializing in natural botanical-based skincare and cosmetics under the brand name Jurlique. Jurlique is considered ethical and environmentally friendly. Jurlique was founded in 1985 the Australian state of South Australia by Dr Jurgen Klein and his wife Ulrike. The company 's name is based on a phonetic combination of their first names.

Read More
817 Words | 4 Pages

When you think internationally it can only be larger. McDonald’s has to be aware of what those competitors are doing at all times to make sure they are up to

Read More
775 Words | 4 Pages

McDonald’s also provide medical benefits to the workers and the compulsory deduction from salaries such as EPF,

Read More

More about Business Case Study: Genie Investments

Related Topics

Open Document