Business 100W
Business Communications
Lecture 10:
Writing Proposals
Reasons for Writing Proposals
Reasons:
Attract contracts
Obtain research money
Change in-house procedures
Fund new facilities
Argue for product or policy revisions
Determine Requirements
for Your Proposal
Determine Who Will
Evaluate Your Proposal
Create an Outline for Your
Proposal
Overview
Provide background information
Consider key questions
Define your approach
Problem Analysis
What caused the problem?
Who suffers from its effects?
What measures have failed in an effort to deal with it?
What is the current scale of the problem?
What will be its future scale?
Proposal Specifics
Are your methods proven? By whom?
What personnel will be involved?
What is their training?
What time schedule have you established?
What are the major checkpoints?
What significant
indications of progress
will you look for? When?
Consider:
How will you measure
success?
Consider:
Will your research results
be observable?
Consider:
Will your research results
be preservable?
Consider:
Will your research results
be repeatable?
Consider:
Budget
Outline the costs of your proposed work
In the past, “padding” was part of the process
Padded budgets are now discouraged
Avoid underbudgeting
Milton the bat says:
Never begin or end with
a budget!
Conclude by explaining
your willingness to help
your readers.
How it looks
Proposal Competes in:
What it says
Revise and Polish
Use the most attractive, proportionately spaced font
Use heavy bond white paper
Use strict margins on all sides of the page
Decide whether or not you should bind the proposal
5 ways to create a professional look
Make sure photocopies are comparable to originals
Use topic headings and
indented material to show
off your information
Never bury crucial
information in appendixes
or footnotes
Proposals are the primary
means by which
businesses ask for work (or
money)
The Form Proposal/Contract
Business Plans
7 questions to answer
What is the key information that I need to know
about your business plan?
What products or services will your business
produce or provide?
How will you sell your products or services?
What is the basic idea of your business?
7 questions to answer
How will you organize and manage your business?
How will your company’s finances be handled?
What do you want from me (your reader)?
Key Information
Basic Idea
Products and Services
Marketing and Sales
data
Back up your assertions with:
demographic information
other supporting evidence
Company Finances
Include how much money you are
seeking from investors and in what
installments
Describe the investors’ degree of liability
and terms of financial participation in
profits
Give specifics of the business:
One venture capital firm over a
period months...
received 1,200 business plans
firm selected only 45 for serio.
Business 100WBusiness CommunicationsLecture 10Writi.docx
1. Business 100W
Business Communications
Lecture 10:
Writing Proposals
Reasons for Writing Proposals
Reasons:
Attract contracts
Obtain research money
Change in-house procedures
Fund new facilities
Argue for product or policy revisions
Determine Requirements
for Your Proposal
Determine Who Will
Evaluate Your Proposal
2. Create an Outline for Your
Proposal
Overview
Provide background information
Consider key questions
Define your approach
Problem Analysis
What caused the problem?
Who suffers from its effects?
What measures have failed in an effort to deal with it?
What is the current scale of the problem?
What will be its future scale?
Proposal Specifics
Are your methods proven? By whom?
What personnel will be involved?
What is their training?
3. What time schedule have you established?
What are the major checkpoints?
What significant
indications of progress
will you look for? When?
Consider:
How will you measure
success?
Consider:
Will your research results
be observable?
Consider:
Will your research results
be preservable?
Consider:
4. Will your research results
be repeatable?
Consider:
Budget
Outline the costs of your proposed work
In the past, “padding” was part of the process
Padded budgets are now discouraged
Avoid underbudgeting
Milton the bat says:
Never begin or end with
a budget!
Conclude by explaining
your willingness to help
your readers.
How it looks
Proposal Competes in:
5. What it says
Revise and Polish
Use the most attractive, proportionately spaced font
Use heavy bond white paper
Use strict margins on all sides of the page
Decide whether or not you should bind the proposal
5 ways to create a professional look
Make sure photocopies are comparable to originals
Use topic headings and
indented material to show
off your information
Never bury crucial
information in appendixes
or footnotes
Proposals are the primary
means by which
6. businesses ask for work (or
money)
The Form Proposal/Contract
Business Plans
7 questions to answer
What is the key information that I need to know
about your business plan?
What products or services will your business
produce or provide?
How will you sell your products or services?
What is the basic idea of your business?
7 questions to answer
How will you organize and manage your business?
How will your company’s finances be handled?
What do you want from me (your reader)?
7. Key Information
Basic Idea
Products and Services
Marketing and Sales
data
Back up your assertions with:
demographic information
other supporting evidence
Company Finances
Include how much money you are
seeking from investors and in what
installments
8. Describe the investors’ degree of liability
and terms of financial participation in
profits
Give specifics of the business:
One venture capital firm over a
period months...
received 1,200 business plans
firm selected only 45 for serious interest
14 were eventually funded
This is controversial
Note:
Questioning the Adaptability
of Sales Messages
Spam is particularly ill
received
Note:
Questioning the Adaptability
of Sales Messages
9. Many of the sales
messages are unethical
Note:
Questioning the Adaptability
of Sales Messages
There is now opt-in
email marketing
Note:
Questioning the Adaptability
of Sales Messages
Preparing to write a
sales message
Determining their make-
up
Gaining Attention
10. Direct Mail
Email
Holding Attention in the
Opening
Building a Persuasive Case
First you present a need
Rational appeal will rely on factual information
Character-based will rely on the perceived
ethics of the spokesperson
Writing for sales differs from other writing
Emotional appeals will rely on readers’ senses
Stressing the You-Viewpoint
Milton says:
11. Include all necessary information
Driving for the Sale
This is the natural and expected conclusion
Urge immediate action, or you may lose the sale
Recall the main appeal
The drive action should be specific and clear
Adding a Postscript
To urge the reader to act
To invite attention to other enclosures
To suggest the reader pass along the sales
message
To emphasize the major appeal
Offering Name Removal to
Email Readers
Companies must:
12. Good News Messages:
build goodwill
keep old customers
win new customers
Milton says:
Readers look forward to
hearing “yes”
You many not always be able
to respond to every order with
a special letter, but you should
still try!
Format for Yes Letter
Deliver the “yes” message as soon as
possible in the letter
Keep the “yes” message simple
At the last meeting of the loan
committee, your application no. 4705
for a construction loan in the amount
of $170,000 was approved, provided
that you acquire and maintain fire
13. insurance in the amount of the loan
on the construction project.
Bad Example:
We’re pleased to approve your
construction loan for $170,000.
Good Example:
especially in contractual matters
questions of credit
explain the exact commitment you are making
Be specific:
To protect your project and our
investment, we require that you
acquire and maintain fire insurance
for the amount of the loan.
Example:
Sell your company’s
14. service, product, image, or
relationship
Our construction loan department
offers an inexpensive voucher plan by
which you can keep track of
construction expenses and
subcontracted work.
Example:
We look forward to a solid partnership
with you in the development of the
Seven Seas resort. Consider our
participation, we ask, in future projects.
Example:
Since 2006 you have been the kind of
client we consider a company friend.
We all will do our best to maintain
our high level of service to you.
Example:
15. Milton says:
Begin the yes letter to
an order by stating
exactly what you are
saying “yes” to.
In the next paragraph, explain any:
conditions
delays
product specifications
shipping or billing information
Conclude with a statement
of appreciation
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Business 100W
Business Communications
Lecture 09:
Communicating Orally
But first: a good presentation in action!
https://www.ted.com/talks/jinsop_lee_design_for_all_5_senses
Business Proposals
describes ideas in such a way
they appear to fulfill the client’s
needs
Definition:
Business Proposals
17. First, understand the problem or question
Always consider audience
Can be almost any length
Proposals include
an overview
a problem analysis
proposal specifics
budget
conclusion
logical order
psychological order
solid evidence
Arrangement:
Example:
Point One
Point Two
18. 1.
2.
Residents care most of all about safety
Brighter street lights discourage crime
Point Three3.
Brighter street lights increase property values
Point Four4.
Residents can be expected to support the
proposal
All employees are encouraged to
participate in after-hours
company recreation programs
because such programs are
especially for the use of employees
after the workday has ended.
Example:
Circular Reasoning
Democrats can’t win the election
because of their stand on animal
19. rights.
Example:
Hasty Generalization
Johnson owns two homes, a boat,
and a sports car, so I trust his
investment advice.
Example:
Non Sequitur
Either he apologizes, or I quit.
Example:
Either/Or Thinking
We switched to leased cars instead
of company-owned cars in 1996.
No wonder we have so many auto
repair bills each month!
Example:
Causation and Correlation
20. (post hoc ergo propter hoc)
This company’s problems can be
blamed on poor benefits. How can
anyone expect workers to
concentrate on their jobs when
they have doubts about their
medical and dental coverage?
Example:
Straw Man
All managers get raises. From time
to time, I manage projects, so I
must also get a raise.
Example:
False Analogy
Undersea mining operations are
dangerous, expensive, time-
consuming, and unreliable. We
should not consider undersea
21. mining in deciding how and where
to mine for gold.
Example:
Slanting
Psychological Order
The Placement of Bad News
Do NOT shy away from bad news.
The Placement of Good News
Not just possible but probable
The proposal writer should still consider resistance
Delivering good news requires
Exciting ideas must overcome obstacles
Solid Evidence
Evidence in the form of:
22. examples
illustrations
statistics
details
“The air in metropolitan areas is
16% cleaner this year because of
federal pollution legislation.”
Example:
General Evidence
“Air quality measurements during
the month of July in Los Angeles
show a 16% improvement in overall
air quality.”
Example:
Specific Evidence
Proposal writing requires...
23. careful analysis
strategic thinking
skillful writing
Milton the hummingbird
says:
Know your
readers!
demographic information
psychological information
customer service
Gather Information
Sometimes people
seek tangible rewards
Note:
Sometimes people seek
intangible rewards
24. Do NOT underestimate
the role of intangible
rewards!
Make good use of three
kinds of appeals.
Know Your Appeals!
Logical appeal (logos)
Emotional appeal (pathos)
Appeal to character (ethos)
Know Your Appeals!
Logical appeal (logos)
Emotional appeal (pathos)
Appeal to character (ethos)
https://www.youtube.com/watch?v=AsOn94k1Ehk
https://www.youtube.com/watch?v=Iu_JqNdp2As
https://www.youtube.com/watch?v=1shK-j_u6LI
Make the requested action
25. as clear and easy to
perform as possible.
tell people where to give money
Note:
tell people how to buy a product
tell them where and how to submit
ideas
give specific techniques for
increasing job performance
The Persuasive Plan
determining what you want
figuring out the readers’ likely reactions
deciding upon a persuasive strategy that
will overcome objections
The Persuasive Plan
“common ground” persuasion technique
show that everyone stands to benefit or be harmed
use analysis, creativity, and judgement
26. opening is used to set up an
explanation
Note:
you may encounter resistance from
the readers
rely on an interesting beginning
Milton says: Make the request
clearly and positively!
Avoid words that detract from the request
Ending should be a point of emphasis
Take care in word choice
You can end with a request and a final
appeal
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27. Business 100W
Business Communications
Lecture 08:
Communicating Orally (Bad Presentation)
3 factors should guide you
background and knowledge1.
interests of your audience2.
occasion of the speech3.
General preparation of
the presentation
Traditional Format
Introduction
Body
Conclusion
28. Do use natural gestures.
Don’t be stiff.
Tips:
Do not try to plan your gestures
ahead of time
Do not learn new gestures
Bring natural gestures you already
use into your business speaking
Natural Gestures
Free your hands by placing them in a “takeoff
position”
As you begin to speak, touch your
fingertips together in front of you
Touch a button on your coat, shirt, or blouse
just for a second
Touch your cheek with the fingertips
of one hand, then gesture
Gestures to Avoid
29. Pointing at the audience
Don’t raise and lower your hand in a
repeated, energetic pumping motion
Don’t fidget with jewelry
Don’t deliver an entire presentation with
your hands folded solemnly in front of you
Maintain a comfortable pace.
Don’t rush or dawdle.
Note:
Do vary your volume, pitch,
and tone.
Note:
Don’t talk without showing
emotion or expression.
Milton the peacock
says:
Use pauses effectively.
Don’t stop and start!
30. Pauses
Pauses mark the end of one listening task and
the beginning of the next
Some business speakers fear pauses
Why to pause
How long to pause
How often to pause
Do listen.
Don’t ignore your listeners’
gestures or comments.
Tips:
Consider the audience and what
they have to “say”
Don’t let the cues and clues upset you
Instead, take advantage of the
cues
32. Memorizing
Reading
Team Presentations
where to sit
Each Member Needs to Know:
where to stand
how to hold the microphone
how to pass the microphone off
how to enter and leave the
speaking area
Milton says:
Make certain to
leave time for
rehearsals!
Let’s take it for a test
drive!
What's up with this
presentation?
33. https://www.youtube.com/watch?v=ATfY8dvbuFgSlide Number
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Business 100W
Business Communications
Lecture 11:
Good News Messages
Saying “Yes” to Inquiries
begin with the “yes” statement
if some time has passed, you might want to
remind the writer about the inquiry
use columns and white spaces effectively
Saying “Yes” to Requests
and Invitations
Could Mr. Brady attend either the IE
34. Political Group Committee meeting on
Thursday, May 4, or the Regional
Caucus on Friday, May 5? If so, could
Mr. Brady speak on one of the three
topics?
Example:
Dear Mr. Slather,
Yes, I believe I can attend. I prefer
your second topic, though the third is
also acceptable.
I look forward to meeting you.
Reply:
Preliminary Assessment
If negative:
If positive or neutral:
approach directly
the objective should be achieved quickly
approach indirectly
35. The General Direct Plan
Begin with the objective
a brief orienting phrase
clause
sentence
Sometimes you need to begin with:
Keep prefatory remarks
limited
Remainder of message...
additional questions
answers
needed information
anything else that needs to be covered
Ending with Adapted Goodwill
end the message with an appropriately
friendly comment
avoid “canned” goodwill
36. be aware that certain expressions may be
interpreted differently
if you need information by a certain
date, state the date
Routine inquiries begin
with a question
specific
or
general
Two Types:
You may need to
include explanation or
information
Before or after the direct request
in the opening paragraph
Reduces the startling effect
of asking a direct question
37. If your inquiry involves
only one question...
Develop a Logical List
Make sure the questions stand out
Do NOT combine questions into
single sentences
Give each question a separate
paragraph
Order or rank your questions
with numbers
Compare:
“I would like to know...”
“How much would one be able
to save...”
vs.
End with Goodwill
Milton the
38. flamingo says:
Always place the
modifiers next to the
item modified!
Note:
misplaced modifiers
dangling modifiers
and
Example:
Burning all night long, the
firemen could not put out
the house.
Misplaced Modifier
Correction:
Burning all night long, the
house could not be put out
by the firemen.
39. Misplaced Modifier
Example:
Upon entering the doctor’s
office, a skeleton caught my
attention.
Dangling Modifier
Correction:
As I entered the doctor’s
office, a skeleton caught my
attention.
Dangling Modifier
”Giving him her lean hand to kiss, the Viscountess
bade him always be faithful to the house of Esmond.”
William Makepeace Thackeray’s The History of
Henry Esmond
“Before encountering the absurd, the everyday man
40. lives with aims, a concern for the future or for
justification (with regard to whom or what is not the
question).”
Albert Camus’s “The Myth of Sisyphus”
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The Fabulous World of
Fonts!
More than you ever wanted to know about something
small but super-important
Why Talk About Fonts?
• Fonts have an effect on your finished product in terms of:
• Readability: how easy is it to read your writing?
• Professionalism: how seriously are we taking you?
• Communication: how well are you getting through?
• All of these are interwoven, so let’s stay flexible as we
move forward…
41. Readability
• Different things affect how readable your finished product
is:
• The style of the font
• Is it so fussy and fancy that it becomes illegible?
• The delivery medium
• Electronic vs. print—how will your audience receive it?
• The serif question!
Readability
• Fonts with serifs vs. fonts without (sans serif)
• Serif: the little “feet” at the top and bottom of letters in
certain
font sets1
• Sans-serif: a font with no feet
• Each has certain benefits:
• Serif fonts are more readable on printed materials
• Sans-serif fonts are more readable on electronic devices
1Dictionary.com: “Serif: a smaller line used to finish off a main
stroke of a letter, as at the top and bottom of M.”
Professionalism
• Style speaks volumes with fonts
42. • Simpler is generally better
• Book Antiqua? Or French Script? Or Impact?
• Consider the situation, the project, the finished product, and
your audience:
• Situation: for the office or for the family reunion?
• Project: office potluck or annual report for the BoD?
• Product: printed, online, or both?
• Audience: your mom or your boss?
Communication
• Think in terms of both audience and accessibility:
• What kind of audience would find this font appealing?
• Kids, teens, or adults?
• Casual get-together or formal meeting?
• Business world or campus club?
• When will your audience’s preferences change?
Communication
• Think in terms of both audience and accessibility:
• Font color:
• For presentations, does it work with your background?
• Would someone with limited vision be able to read it?
Someone sitting
at the back of the room or at an odd angle?
43. • For print, is it a professional color for a professional
document?
• Hint: if it’s not black ink, the answer is typically no
Communication
• Think in terms of both audience and accessibility:
• Font choice: It’s pretty, but is it standard?
• Default fonts are more likely to be included across platforms
and in standardized font packages
• Not all platforms may include novelty or decorative fonts (but
there are
ways to get around this)
• How can font design help people?
https://www.dyslexiefont.com/en/dyslexie-font/
Use This Font!
• In what circumstances or for what applications could we use
this
font?
Use This Font!
• In what circumstances or for what applications could we use
this
44. font?
Use This Font!
• In what circumstances or for what applications could we use
this
font?
Use This Font!
• In what circumstances or for what applications could we use
this
font?
Vivaldi
Use This Font!
• In what circumstances or for what applications could we use
this
font?
What do I prefer?
• Font snobbery at its finest!
• The rule of three
• For official documents:
45. • Anything printed: Arial, Tahoma, or TNR
• Anything online: Arial
• For PowerPoints or less formal publications:
• Book Antiqua
• Bookman Old Style
• Perpetua
Questions?
The Fabulous World of Fonts!Why Talk About
Fonts?ReadabilityReadabilityProfessionalismCommunicationCo
mmunicationCommunicationUse This Font!Use This Font!Use
This Font!Use This Font!Use This Font!What do I
prefer?Questions?
BUS100W -ENG007 (001) Attebery/Laforce S19
Workshop 3: Ticket-In
Please complete this Ticket-In before your workshop. You may
type or handwrite your responses, but a completed hardcopy is
required to attend Workshop 3 or you may be turned away. It
will then be your responsibility to sign up for another workshop
(if available).
A. Thesis Statement (C-S-C Model)
Your thesis statement for this assignment is your proposal to
benefit the company. Draft the components of your thesis
(proposal) below.
1. What is your CONTEXT? (i.e., How do you want to frame the
subject of this essay? What background information would be
relevant for the reader to know about the subject?)
46. _____________________________________________________
_________________________
2. What is your SUBJECT? (i.e., This is the central topic of
your report: the problem or strength you have identified with
your company, which you will be analyzing and addressing.)
_____________________________________________________
_________________________
3. What is your CLAIMand why? (i.e., This is the analysis of
your subject: How do you propose to improve on the strength or
fix the problem? What are you proposing and why?)
_____________________________________________________
_________________________
4. Draft Thesis/Proposal: In 1-3 well-constructed sentences,
write out your full thesis based on your answers above. Note:
You will be peer-reviewing each other’s draft theses in
workshop.
_____________________________________________________
_________________________
_____________________________________________________
_____________________________________________________
__________________________________________________
_____________________________________________________
_________________________
B. Introducing “Burdens of Proof”: Required, Annotated
Reading.
Read and annotate (underline, highlight, make notes in margins)
the text below on “burdens of proof.” We will discuss and
employ burdens of proof in Workshop 3.
47. In chapter 1 we defined the thesis statement as a statement of an
issue that “sets down” the argument a writer will make. It may
help to think of the thesis statement as the claim in the
academic essay that is much like a lawyer’s claim in a court of
law. The writer of an effective essay, like the lawyer, presents
a central argument that has certain burdens that require support.
For instance, a lawyer may use several different lines of
reasoning to frame or arrange evidence to show that his client is
innocent. The claim of innocence is meaningful only when it is
fully supported with clear evidence and logical reasoning.
Similarly, the burdens of proof in the thesis statement must be
unpacked and logically fulfilled for the essay to be compelling.
Because it sets down the argument of a persuasive paper, the
thesis statement can be said to be the reason the paper exists.
The thesis drives the paper forward because it contains the
claim—the assertion that gives the paper its meaning.
However, a thesis statement does not stand alone; it is
interdependent with the rest of the paper. It might help to see
this interdependence in terms of an analogy … The thesis
statement, like the engine of the car, drives the paper. And the
supporting details of a paper, like the frame of a car, are
necessary to carry the reader to a meaningful place. Unpacking
the burdens of proof from the thesis statement will show you the
direction to take your paper; it will guide your drafting ….
We have said that the thesis statement provides a prescription
for the paper in the sense that it contains what we call the
burdens of proof, but what, exactly, does this mean? Burdens of
proof are the arguments or points that must be made in a paper
to fully prove the thesis statement, that is, to convince a reader
of a thesis statement’s validity. In other words, they are the
requirements that logically follow from the claim made in any
thesis statement. If each burden of the thesis is not adequately
discussed, the claim will be less credible, and the paper will be
unsatisfying.
Example 1:
48. The use of steroids in college sports should be more tightly
regulated.
· show the reasons for, and dangers of, steroid use
· establish how steroid use is currently being monitored
· show why steroid use in college should be more tightly
regulated ….
You might think of burdens of proof as the links in the chain of
logic that a writer must create to convince the reader to accept
the conclusion proposed in the thesis statement. Because the
burdens of proof suggest the chain of reasoning the paper must
take, they also work as a structuring device for the paper— a
skeleton on which the supporting paragraphs of the paper are
built. In short, the burdens of proof are what you write about in
the paper….
You should be aware that each burden of proof will require a
different amount of time to cover it. In other words, even
though each burden is stated in a single line, some might take
pages to explain while others may require only a paragraph.
What is important to recognize is that all of the burdens of
proof in a thesis statement must be discussed to prove the
paper’s thesis and to have a compelling and therefore successful
essay.
FOUR TASKS TO MANAGE YOUR BURDENS OF PROOF
1. Identify the context, subject, and claim of the thesis
statement.
2. Identify key terms or phrases that help define the context,
subject, or claim, such as:
· adjectives or adverbs
· superlatives (i.e., most, worst, best, always)
· specialized terms that require explanation
· terms or phrases that require background information
· introductory clauses or other key terms that limit the
parameters of the argument (i.e., today, twentieth century,
regarding children, in my house)
· If you are unsure whether a term is “key” or not, remove the
term or phrase and see if it changes the demands of the thesis
49. statement or the direction or the boundaries of the argument. If
so, then it is a key term and probably carries a burden of proof.
3. Examine the logical relationships within the thesis statement
and identify whether there are any dependent points (or
arguments) that must be made in advance of other points (or
arguments).
4. Decide on the most effective order for covering the burdens
of proof.
These tasks represent general techniques that, with some
practice, you should be able to adopt, customize, and
incorporate into your writing process. They will help you to
analyze your thesis statement and identify the logical chain of
reasoning necessary to offer a compelling argument.
Applying the Four Tasks
Now we will examine three examples using this four-step
process.
EXAMPLE 1: Music file sharing through the Internet should
be legal.
1. Identify C-S-C.
Context: music industry’s copyright laws Subject: music file
sharing through the Internet Claim: should be legal
2. Identify key phrases. Examine C-S-C and the key phrases and
articulate the burden of proof suggested by each.
Not everyone is familiar with the controversial practice of
“music file sharing through the Internet” and its alleged
infringement on the “music industry’s copyright laws,” so both
the context and subject of this thesis statement will need to be
discussed. The burdens of proof are as follows.
· establish what is meant by “music file sharing”
· explain the objections some have to this practice
· show why music file sharing should be legal
3. Identify whether there are any dependent points (or
arguments) that must be made in advance of other points (or
arguments).
To argue that file sharing should be legal, it will be important
50. to establish what it is, so the first burden listed must precede
the third. The second burden could be covered along with the
first as background material, or it could be discussed after the
third bur- den as a counterargument. These are some strategic
choices a writer will have to make in responding to this prompt.
4. Decide on the most effective order for covering the burdens
of proof.
Think carefully about where you would like to cover the second
burden … Whatever your writing process, this step should be
reexamined during the revision stage to be sure the essay is as
convincing as possible.
*************
C. Preliminary Research & Outline Burdens of Proof:
1. One burden of proof in this assignment is to prove that the
problem or strength you identified in the company exists. Find
two reliable sources providing evidence of this problem or
strength. List and summarize them below:
Source 1:
Source 2:
2. Another burden of proof in this assignment is to prove that
the solution or improvement you are proposing is the most
reasonable, actionable, and practical. Find two reliable sources
providing evidence supporting your proposal effectiveness. List
and summarize them below:
Source 1:
51. Source 2:
3. You will also need to address at least one counterargument in
this assignment, which is also a burden of proof. Find at least
one reliable source that in some way disagrees with your
proposal or argues for an alternative course of action. Cite and
summarize this source below:
Source:
Note:You may change your proposal when you conduct more
research on the burdens of proof. This research is only
preliminary and the recommendation is an initial hypothesis.
4
Bing 11
Linting Bing
BUS 100W
04/29/19
Table of Contents
Executive Summary1
Introduction3
Financial Analysis3
Income Statement4
Liquidity Ratios4
Market Share5
52. Business Strategy6
Advertising Strategies7
Conclusion10
Works Cited11
Executive Summary
McDonald’s is a fast food company that was initially founded in
San Bernardino, California, U.S.A by McDonald brothers,
Richard and Maurice MacDonald. The Success of the
McDonald’s is accredited to Ray Kroc who joined the company
in 1955 and eventually managing to buy it in 1961. Kroc valued
marketing, and after joining McDonald’s, it spent $2.3 million
in advertising which is equivalent to 1% of its shares which
came as a shock to many people. The company makes 20% of its
sales by focusing on advertisements towards children and toys.
Financial analysis of the company shows that the company is
performing exceptionally well. The company leads in the market
share meaning that its brands are more preferred compared to
those of its competitors. McDonald’s business strategy is
focused on franchising, standardization of products and
services, and maintaining local tastes and preferences which
helps in boosting customer loyalty.
Introduction
McDonald’s is an American fast food company that was
established in 1940 by Richard and Maurice McDonald in San
Bernardino, California, United States. Initially, McDonald was
rechristened as a hamburger stand but later transformed into a
franchise. In 1953, the company introduced the Golden Arches
53. logo in Phoenix, Arizona. In 1955, the company welcomed Ray
Kroc as a franchise agent who managed to purchase the
company shares from McDonald brothers. The original
headquarters of the company was based in Oak Brook, Illinois
but were later transferred to Chicago in 2018.
McDonald’s company is the largest restaurant chain globally in
terms of revenue generation, and by 2018 the total number of
outlets amounted to 37855. These restaurants serve more than
69 million customers in over 100 countries. The company is
widely recognized for its cheeseburgers, hamburgers, and
French fries. However, the restaurants also provide chicken
products, soft drinks, wraps, breakfast items, milkshakes, and
deserts. Furthermore, the increasing demands to offer healthy
foods and the changing consumer preferences have forced the
company to include salads, smoothies, fish, and fruits to its
menu. The revenue generated by McDonald’s company comes
from rent, franchise fees, royalties, and sales made by the
restaurants. Two reports produced in 2018 showed that
McDonald’s is the 4th leading global employer with more than
1.7 million workers. The purpose of this report is to determine
whether McDonald’s is a worthy investment venture. Financial
Analysis
There was a decrease in corporate revenues generated by
McDonald’s company from 8% to $21.03 billion for the fiscal
year that ended on December 31, 2018. The company recorded
an increase for the net incomes before extraordinary items from
2% to $6 billion. The revenues indicated a decrease of High
Growth Markets segment from 28% to $3.99 billion with the
U.S segment decreasing from 4% to $7.67 billion (Wu
170).Income Statement
Period Ending
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Total Revenue
21, 025, 200
54. 22, 820, 400
24, 621, 900
Restaurant expenses
8, 265, 900
10, 409, 600
12, 698, 800
Gross Margin
10, 786, 000
10, 620, 800
10, 204, 700
Operating Income
8, 822, 600
9, 552, 700
7, 744, 500
Income before taxes
7, 816, 100
8, 573, 500
6, 866, 000
Net Income
5, 924, 300
5, 192, 300
4, 686, 500
There was a decline in the revenues generated by the company
from 2016-2017 and 2017-2018. There was an increase in the
operating income from 2016 to 2017, but a decline was recorded
in 2017 to 2018. The incomes before the imposition of taxes
increased from 2016-2017 but slightly decreased from 2017 to
2018. Finally, the company recorded an increase in net income
from 2016-2017 and 2017-2018 (Wu 175).Liquidity Ratios
The working capital ratio is obtained by subtracting current
liabilities from current assets.
McDonald’s Ratios
55. 2013
2012
Working Capital ratio
5050.1-3170
4992.1-3403.1
Current assets-current liabilities
1880
1589
The above data shows that McDonald’s company has
exceptional performance. The company’s working capital cycle
refers to its ability to generate cash from its operations
adequately. McDonald’s offers a discount to its franchise clients
that allows the organization to generate large amounts of
income by reducing its working capital cycle (Wu 180). These
financial statements show that McDonald’s company is in a
stable condition.Market Share
The graph below shows the market shares of the U.S fast food
industries in 2015
McDonald’s held 17% of the market share which is by far the
largest in the U.S in 2015. Yum! Brands Inc. which owns Taco
Bell, Pizza Hut, KFC, and Wing Street emerged the closest
competitor of McDonald’s. The five leading fast food industries
account for more than 40% of the entire United States market
share which generated revenue amounting to 198.9 billion in
2014 ("Fast Food Industry Market Share Worldwide, By Brand
2018 | Statista").
Apart from leading the United States fast food industry,
McDonald’s also emerged the most valued food brand in global
rating in 2016. McDonald’s had a brand value of more than $88
billion in 2016 which was more than double that of Starbucks,
its closest competitor. In the same year, McDonald’s global
revenue hit 24.6 billion USD with statistics showing that more
than $8.25 billion was accumulated in the United States ("Fast
Food Industry Market Share Worldwide, By Brand 2018 |
56. Statista").
Fast foods account for one of the most popular commodities
among the United States. In a survey conducted in November
2016, 44% of Americans indicated that they eat in fast food
restaurants at least once a week. Children between 2-11 years
old were found to watch more than a hundred ads for fast foods
every year, and thus the popularity of these foods is perhaps
something unsurprising. In this analysis, McDonald’s ranked in
the first position with kids aged 2-5 years watching an average
of 207.7 of McDonald’s ads, and 6-11-year-old kids watching
an average of 253.6 ads in just one year ("Fast Food Industry
Market Share Worldwide, By Brand 2018 | Statista").Business
Strategy
The business strategy adopted by McDonald’s company utilizes
a combination of international market expansion and cost
leadership strategies. The company uses franchising and
licensing forms of new market entry to a greater extent. At the
heart of McDonald’s business strategy is the standardization of
products and services. McDonald’s fast food restaurants provide
a menu that is substantially uniform comprising of hamburgers,
Big Mac, cheeseburgers, Quarter Pounder with Cheese, chicken
sandwiches, wraps, salads, shakes, sundaes, and pies
(Dudovskiy 1) The uniformly standardized menu also includes
Filet-O-Fish, Chicken McNuggets, French fries, oatmeal,
McFlurry desserts, soft serve cones, McCafe beverages, coffee,
and other beverages.
Apart from the standardization of its products and services,
McDonald’s also maintains a keen eye on local tastes and
preferences during the process of menu development. The
company’s competitive advantage comes from a variety of
things. First, the main competitive advantage of McDonald’s
comes from cheat prices (Dudovskiy 2). The company
thoroughly utilizes the economies of scale to attain the cost
advantage. Second, the McDonald’s has remained loyal in
offering quality fast foods in its chain of restaurants. The
company has gained its fame from its ability to provide speedy
57. customer services without compromising the quality of its
products whatsoever. Finally, the company strives to maintain a
universal taste for all its similar products, and this has been a
significant milestone in attaining its success. For instance, Big
Mac tastes almost the same around the globe since the company
embarks on using equal quantities of ingredients and a
standardized method of cooking. The consistency in taste has a
favorable implication on the loyalty of the customers all over
the world (Dudovskiy 2).Advertising Strategies
McDonald’s focuses mostly on investing in advertising and the
Franchise model as its primary business strategy. In 1957 the
company spent $2.3 million which was equivalent to 1% of its
sales in marketing. This was McDonald’s first national
advertising company, and the vast sums of money invested
surprised many people since they had never seen a fast food
company invest that kind of money in advertising. The success
of McDonald’s is accredited to Ray Kroc who joined the
company in 1955. He started the franchising strategy and
eventually bought the company from McDonald’s brothers in
1961 (Keller 1).
The available evidence indicates that Roy valued marketing and
advertising “Kroc believed that advertising was an investment
that would, in the end, come back many times over, and
advertising has always played a key role in the development of
McDonald’s corporation.” The company spends around 2 billion
USD annually on advertising that targets various groups
including children. The company advertises its products for
three main reasons (1) to create awareness of their products and
services, (2) create a positive feeling among its customers, (3)
to make people remember their items with ease. (Keller 1).
McDonald’s invested heavily in an advertisement during its
early days of establishment. McDonald’s ads entirely contain
catchy praises and messages. The current company’s slogan is
“I’m lovin’ it.” The memories of other slogans are still fresh in
the mind of consumers. These include “Look for the Golden
Arches,” “Do you believe in Magic?” and “Did somebody say
58. McDonald’s?” McDonald’s adverts are mostly focused on
children aged between 2-5 years and 6-11 years old. The chart
below shows the number of ads viewed in 2012. As evident
from the graph, McDonald’s ads were observed three times
more compared to those of its closest competitor, Subway, in
the advertisement sector (Keller 2).
The company is the largest distributor of toys in the world
through a program known as “McDonald’s Happy Meal Toys.”
The company makes around 20% of its sales by focusing on
advertising towards small kids including their toys. Evidence
indicates that McDonald’s distributed more than 1.5 billion toys
per year global outcompeting Mattel and Hasbro. A study
conducted in 2009 to examine children’s favorite fast foods and
the restaurant they loved to dish most often. In this survey, 37%
of the kids indicated that McDonald’s was their first choice
with 87% and 80% aged 6-7 years and 8-9 years respectively
stating that they love getting a toy with their meals (Keller 3).
However, many people have accused McDonald’s arguing that
its tactics of advertising draws more children to love fast foods
which increase childhood overweight and obesity.
Conclusion
Based on the above analysis, one can make a unanimous
conclusion that it will be viable for CM Burns to invest its
capital in McDonald’s due to a variety of reasons. First, the
financial statements show that the company is performing
exceptionally well and investing more capital means more
profits for the company. Second, the company leads in the
market share meaning that its brands are more preferred
compared to those of its competitors. Fourth, McDonald’s
enjoys one of the best business strategies that use a combination
of international market expansion and cost leadership strategies.
The business strategy is based on franchising, standardization of
products and services, and maintenance of local tastes and
preferences which boosts customer loyalty. Finally, McDonald’s
59. is famous for its use of catchy messages in the advertising
strategy that mostly targets kids which helps it to make 20% of
its sales by focusing on children and toys.
Works Cited
"Fast Food Industry Market Share Worldwide, By Brand 2018 |
Statista". Statista, 2018,
https://www.statista.com/statistics/273057/value-of-the-most-
valuable-fast-food-brands-worldwide/.
Dudovskiy, John. "McDonald’s Business Strategy and
Competitive Advantage - Research-Methodology". Research-
Methodology, 2016, https://research-
methodology.net/mcdonalds-business-strategy/#_ftn1. Accessed
30 Apr 2019.
Keller, Chris. "How McDonald's Became The Leader In The
Fast Food Industry - Marketing Strategy". Profitworks.Ca, 2019,
https://profitworks.ca/blog/marketing-strategy/541-how-
mcdonalds-became-the-leader-fast-food-industry-marketing-
strategy.html.
Wu, Qiaoling. "Financial Analysis of McDonald’s Company."
(2018): 170-185
Business 100W
Assignment III: Proposing a
60. Solution
or Improvement
Word Count: 1,000 to 1,250 words (required), not including
executive summary
Grammar Requirement: Underline one sentence demonstrating
semicolon use
Format: Business format with MLA in-text citations and Works
Cited page
Due to SafeAssign before class on Wednesday, May 15th
In brief: In this essay, you will examine your company from an
internal perspective and identify
either a weakness that could be remedied or a positive aspect
that could be further
strengthened. This paper should propose a solution or
improvement for that company, complete
with budget and timeline, and do so in a business format (title
page, executive summary, table
of contents) with an MLA-formatted Works Cited page.
61. Scenario: Due to a twist of fate (and some brilliant networking),
you have bid farewell to CM
Burns Industries and now work for the company you wrote
about in paper #2. As one of your
first tasks, you have been asked to create a proposal to benefit
your new company.
The goal of this paper is to craft a proposal based on some
aspect of the research and
evaluation you conducted in paper #2, offering the company and
its leadership a realistic and
practical suggestion to further strengthen the company. This
proposal should either 1) take a
company strength and offer a means to further improve upon it,
or 2) address and remedy a
specific company weakness. Any number of proposals could be
made to satisfy this
assignment, so you do have quite a bit of creative latitude here.
Consider all relevant research conducted for paper #2, knowing
that you may need to perform
additional research to rise to the burden of proof. Stronger
papers will likely include a number of
secondary sources to support the framework of the proposal.
Use the strategies from lecture,
62. discussion, and your textbooks that you believe the most
effective in accomplishing your goals.
This paper should avoid “magical thinking”: this proposal must
be specific, reasonable,
actionable, and practical for that company. Timelines and
budgets must be part of this proposal,
and visual aids should be used to help explain or clarify.
Counterarguments, in an effort to avoid
the logical fallacy of slanting, should also be part of the
response.
You are welcome to use a targeted SWOT analysis as part of
your brainstorming, but keep in
mind that this is considered pre-writing and should not be a part
of your final draft.
You are welcome to use features from the second assignment,
but you must cite these
materials according to MLA standards—you will cite yourself
as you would any other author,
both in-text and in the Works Cited page.
Submit your final paper to SafeAssign before class on
Wednesday, May 15th. This assignment
63. will be formatted in the same way as essay #2, and it must be
cited thoroughly throughout and
meticulously organized and proofread.