Case Study: Present Day Texas

ntroduction

McDonald 's is the world 's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries across more than 36,000 outlets(Burger business.com 2012). Founded in the United States in 1940, the company began as a barbecue restaurant operated by Richard and Maurice McDonald. In 1948, they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth(Aboutmcdonalds.com 2006). In 2012, the company had annual revenues of $27.5 billion and profits of $5.5 billion(Yahoo finance). According to a 2012 BBC

Texas is the second most populous and second largest state of theUnited States of America. Texas has an area of 268,820 square miles (696,200 km) and a growing population of over 27.5 million residents (Census.gve). There are no culture was dominant in the present-day Texas region, and many peoples inhabited the area. Native American tribes that lived inside the boundaries of present-day Texas include and Wichita. Texas has a "low taxes, low services" reputation. According to the Tax Foundation , Texans ' state and local tax burdens rank among the lowest in the nation, 7th lowest nationally(wikipedia.com). Therefor, Texas can provide a big space to build McDonald and no bigger culture difference. They can easy to receive McDonald’s fast food culture. The important factor is low taxes that McDonald can reduce cost and

5.As a result of the global economic downturn, Texas is facing a multi-billion dollar budget shortfall. The Government introduced a number of new policy on franchising, such as Franchise (margin) tax. Support a graduated approach to the franchise (margin) tax for businesses that have sales less than $ 1 million(Texas business.com). These policies also in disguised form of incentives to make McDonald 's attract more customers to increase revenue.

6.Texas has the most farms and the highest acreage in the United States. Texas leads the nation in livestock production. Cattle is the state 's most valuable agricultural product, and the state leads nationally in production of sheep and goat products(Wikipedia.com). McDonald’s can use local materials to manufacture food, thereby reducing cost for the transport of materials from elsewhere.

7. The state has three cities with populations exceeding one million: Houston, San Antonio, and Dallas.These three rank among the 10 most populous cities of the United States.Three interstate highways — I-35 to the west (Dallas–Fort Worth to San Antonio, with Austin in between), I-45 to the east (Dallas to Houston), and I-10 to the south (San Antonio to Houston) define the Texas Urban Triangle region(Wikipedia.com). Texas has a convenient transportation and a lot of population, tourists visiting Texas is very convenient for McDonald 's customer base to provide a