Choose two (2) public corporations in an industry with which you are familiar – one (1) that has acquired another company and operates internationally and one (1) that does not have a history of...

Introduction
The assignment analyzes two companies based on their Merger and Acquisition history
and domestic and international environment. The companies chosen for assignment are
McDonalds and Famous Dave’s. McDonalds operates internationally and have a long M&A
history however Famous Dave’s operates only in the US with no acquisition. McDonalds
corporation alog with its susidiaries, operates as a food service retailer gloablly. The company is
into franchising and oprating of McDonalds resturants offering its customers with different food
items, soft dirinks, different types of coffee, as well as beverages (McDonalds Annual Report
2010). The company operated in approximately 34,300 resturants within 120 nations as of 2010.
Out of all such operating resturants 80% of them are franchised whereas only 20% of these are
operated by McDonalds itself. Famous Dave’s of America, Inc. engages in the development,
ownership, operation, and franchising of restaurants under the Famous Dave’s name.
Analysis
Part 1- For the corporation that has acquired another company, merged with another
company, or been acquired by another company, evaluate the strategy that led to the
merger or acquisition to determine whether or not this merger or acquisition was a wise
choice. Justify your opinion.
McDonalds had acquired Donato's Pizza in 1999. The primary strategy was to create a
monopoly and increase the market share globally. One of the primary strength of the company is
its global presence. As discussed earlier that the company operated in in approximately 34,300
resturants within 120 nations as of 2010. With such a huge global precence it outperforms any
other food chain in the world. Another strength of the company is its strong brand and value
proposition among its customers. Therefore, franchise business model of the company acts as a
major source of strength for McDonalds. The company is one of the biggest food brand in the
world (McDonald’s food chain 2000). Cheap prices, good quality food and best class services
adds to to the value proposition of the company among its customers. Alignment among the
company, its franchisees and its suppliers is also one of the major strength for the company. This
has helped the company gain advantage from its competitors (McDonalds Annual Report 2010).
Effective supply chain of MCD saves a lot of cost for the company as it makes the flow
of material and informational visibility easir among the supply chain. The company has been
generating high profits due to strength in the supply chain. Stability and reliebility in its
operational cash flow has been another source of strength for the company. With base and
geographically diverse workforce increasingly it is now a full circle, to be managed. Previously,
a few selected employees and personnel used to be the key to success for the organization. In an
environment where companies have a global presence is very important that the social and
political context of the home country of adoption. McDonald's has been known to keep a look
very healthy for the social context in the country where it is present (McDonald’s food chain
2000).
Focus of management and financial resources on its restaurant business reaps significant
opportunities for the company. The market for McDonalds seems to be saturated in the
developed countries of US and UK due to the high presence of brand. So the major opportunity
for MCD as of now lies in the emerging countries of Asia. The company has been trying to make
high presence in India adapting the environment and culture of the company. To remain a cash
cow in the food business, the company needs to penetrate...