Analysis of Intangible Resources of McDonald's and Its Influence by Balanced Scorecard Method

Abstract

The competition between enterprises has changed from the competition of original physical assets to intangible assets recently. In order to achieve long-term development in the fierce market competition, enterprises must strengthen the use of intangible assets management. The Balanced Scorecard is a strategic performance management tool that managers use to track the performance of internal staff activities, monitor the consequences of these actions, and assist in the management of intangible assets. As one of the largest fast food chain companies in the world, McDonald's has a relatively mature method of intangible asset management which includes intangible asset information disclosure, effective employee training and development of corporate culture. This paper will analyze its management methods and provide some suggestions for the management of intangible assets in contemporary enterprises. Keywords—McDonald; Goodwill; Intangible assets management; The Balanced Scorecard approach I. DESCRIPTION OF THE MCDONALD’S McDonald's is a leading global food service retailer which was founded in 1955 in Chicago, the USA. Nowadays, it has about 30,000 stores worldwide. Steve Easterbrook, the current president and Chief Executive Officer of McDonald, who has been taken the job since 2015. Under his leadership, McDonald’s has been turned into profit by inspiring the evolution of the corporation culture. And Lucy Brady is Senior Vice President and Strategy and Business Development manager. She has extensive consulting experience, with long-term perspective and unique ideas. In 2017, McDonald’s introduced a strategy named Velocity Grow Plan in order to speed up growth of business value. They pay attention to customers’ needs and shopping experience. McDonald’s iconic brand and market’s tremendous influence can attract more customers and its professional employees and advanced technology make this strategy easier to implement. II. ANALYSIS OF “VISIBLE” ORGANIZATIONAL RESOURCES A. The balance sheet