McDonald's buys its potatoes from corporate farmers in Idaho not the commodities market; therefore it limits its exposure to price gouging that might have occurred by using the commodity exchange to get those potatoes. Starbucks is doing the same thing, but instead of having partnerships and coffee beans, they are all of in-house. Its Starbucks owns the partnerships they grew the coffee then they might have a conflict of interest for their stockholders. Because they would be dictating the price of the coffee at the partnerships been sold to Starbucks. If they paid a little more than normal for those coffee beans, so the coffee plantation can expand by better production facilities and upgrade then Starbucks funneled money to those partnerships, that should have either paid in dividends, shown as profits or retained earnings. By doing that their stock price would go up and shareholders would be better served short-term. There is a lot more involved before that food or drink gets to your table. Commodities are very much part of the behind the scenes of our civilization.
McDonald's has even other things to consider. Its franchisees need to realize economies of scale to pay the extra franchise fee, royalties and price for the potatoes that make the French Fries. If the McDonald's made a deal long ago to help Ray Kroc's personal friend expand the production of his potato farm, in turn for loyalty to sell to McDonald's, then that is totally fair (speaking of Simplot of ID). Even if, McDonald's pays 2 cents more per potato now. You see, the potato farmer is reaping the rewards for helping Ray Kroc in the beginning; build the McDonald's brand name. Building a brand name is the most important thing that McDonald's has today. Sometimes, accounting irregularities do not take in consideration future market domination, marketing strategies, brand name building, and loyalty of partnerships, co-brands, team members and vendors. What we should understand is that anytime you are building a prototype, or trying out a new system, you must reward for potential success. By doing this, with what ever means is possible is important. You have to reward your team. Your team consists of much more than just employees, Just stockholders, and partners.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs





One of the critical drivers of business success is having... Read More
Feel that? The crisp tingle in the air? It's fall.... Read More
Move over pop star "Posh Spice" Adams and English soccer... Read More
Yes, yes, we've heard it all before... loads of life... Read More
As a beginner, you would be forgiven for thinking that... Read More
Have you ever watched one of those home makeover shows?... Read More
Big and Yellow 'M' reminds you McDonalds... 'DELL' with oblique... Read More
In the book, The Blond Knight of Germany, American authors... Read More
The quality of your logo can mean the difference between... Read More
On question I have been asked over and over again... Read More
Branding your comapny should be the first thing a company... Read More
Look at your company logo. Does it fade into the... Read More
Back to the era of the Hawaiian monarchy, the origin... Read More
Every company has a brand (how people think of them)... Read More
Mascots are the unique dolls or puppets that help identify... Read More
This may come as a surprise... to you, but Branding... Read More
Visual processing is the most important way for gathering information... Read More
My business logo and color scheme started one lovely spring... Read More
IntroductionGlobalisation is referred to as a set of profound material... Read More
Do you have the architecture in place to make sure... Read More
I am sick and tired of marketing geeks touting the... Read More
Initial lack of customers and cash flow often causes a... Read More
Branding is perhaps the most important facet of any business--beyond... Read More
As consumers, we don't really think about the importance of... Read More
Imagine if Yahoo! had been named TheInternetDirectoy. Or StarBucks was... Read More
How brand management can help utility organisations to create a... Read More
Make A Bold Promise Then Back It Up With An... Read More
There have always been trademark issues and lawsuits in the... Read More
In the book, The Blond Knight of Germany, American authors... Read More
Today, in many organizations around the world, branding is treated... Read More
Branding is one hot topic, although it is wildly misunderstood.... Read More
Branding TodayHave you ever had a good brand experience? How... Read More
You'd have to labor to shield yourself from the power... Read More
Brands are important aspects of any business, but unlike money... Read More
The Federal Trade Commission has an obligation to the general... Read More
The public buys far more than just your products, services... Read More
Branding is an application of appropriate marketing techniques in the... Read More
Having a concise, clear image that you project to your... Read More
Branding: it's a term that carries great weight in the... Read More
Mascots are the unique dolls or puppets that help identify... Read More
Starting a business can take a lot of time, money,... Read More
Color is a highly personal experience ? everyone has favorite... Read More
To stand out in a cluttered world, become a recognized... Read More
Having been in the franchising business all my life and... Read More
Your Value Proposition, or as I usually call it, your... Read More
Last issue, I talked about increasing your Brand Love-- meaning... Read More
Visual processing is the most important way for gathering information... Read More
It's the question that is on the minds of all... Read More
The seventh in a continuing series of twice-yearly surveys by... Read More
If you had a choice, which one would you choose,... Read More
|
|