McDonald's corporation financial analysts(Potential risks that could Research Paper

McDonald's corporation financial analysts(Potential risks that could affect McDonald's future performance, and any recommendations you have for McDonald's) - Research Paper Example This has been the key to its success. In addition, the company’s model is to deliver restaurant experiences that are locally relevant to customers (Love 61). The business has been able to establish itself in a number of countries including; Europe, Asia, Middle East, Africa, U.S, Canada and Latin America among other parts of the world. It is important to note, by the end of last year (2014) more than 80% of the company had been franchised. The restaurant believes that this will make their customer delivery and service be efficient and in essence increase their profitability. Every company must be able to assess and project its actual and potential losses. These risks can affect the firm’s performance in future. One of the risks is the regulatory changes in the world economies. Most of the world economies have ever changing regulations and judicial systems. These have adversely affected the cost of production as well as the cost of doing business. In most of the developing markets, the regulatory changes have posed the risk of coming up with new and untested judicial systems and laws which end up bringing a lot of undesired results (Love 28). In addition, the regulatory changes might affect the McDonald’s business plan and structures. For example, they might affect the product nutritional content, packaging, marketing, as well as other aspects like labeling. In addition, regulatory changes might affect the company’s pricing system. The prices of the company’s product may become very volatile and this might affect their market. Some of the factors in government policies that might affect the prices include increased tarrif, foreign exchange, legislation and import-export controls among others. To add to this the regulation changes might affect the financial markets, financial institutions and capital flows. This might affect the franchisees as well as the company’s ability to manage an even to deploy its liquidity. Lastly, regulatory changes