On Friday, McDonald Corporation announced its third-quarter net income increased by 9 per cent, faced with higher tax rate and rising labor costs. A number of factors have contributed to McDonald’s good financial performance, like a direct business model.

This model provides what customers really want. People prefer healthy food to junk food now. These customers are in need of some healthy fast food, instead of burgers and fries. To cater to customers’ tastes, McDonald has introduced a new menu including smoothies and oatmeal. McDonald managed to reshape its image into a healthy fast food restaurant to maintain customers.

This model provides accurate information of the market. According to the market feedback, McDonald expands its market throughout the recession in the US. For example, in China, the number of its restaurants has increased from 1200 to 1400 last year.

This model provides abilities for the company to adjust its price. Since McDonald has a big brand and its food has high quality, McDonald is irreplaceable. Therefore, they are able to increase its price once they can satisfy consumers’ needs which cannot be done by others. Also, they don’t need to worry about the decline of the quantity demand. Hence, higher price makes more profits.

Picture link: www.sstcn.net/ deals/deal434.html