Information about McDonald's

Published on September 13, 2010

Author: nazmull



McDonald’s : McDonald’s Slide 2: WELCOME TO THE WORLD OF McDonald’s “One world, One Burger”- McDonald’s Slide 3: MCDONALD’S CORPORATION Slide 4: EXECUTIVE SUMMARY one of the world's largest chain of hamburger fast food restaurants. McDonald’s currently operates in over 119 countries around the world with over 32,000 stores. Daily serving nearly 47 Million customers. hamburgers, cheeseburgers, chicken products, French fries, breakfast items, soft drinks, shakes, and desserts main products of McDonald’s. McDonald's revenues grew 27% over the three years ending in 2008 to $22.8 billion, and 9% growth in operating income to $3.9 billion. Slide 5: Business of the McDonald’s: Slide 6: 1940 First McDonald’s 1952 Attempts at franchising 1954 Milk Shake Machine 1955 prototype opens in Des Plaines, IL 1956 14 McDonald’s 1961 McDonald brothers sell rights History of McDonald’s Slide 7: 1965 McDonald’s go public 1968 Introduction of Big Mac and shift to Network Television 1970 1600 restaurants 1980 6000 McDonald’s Restaurants 1990 record sales 1994 Kuwait City, Kuwait 2002 Forty seven years after 30,000 locations 2000 new restaurants World Wide Web McDonald’s a recognized Brand Name History Continued Slide 8: Boston Market Chipolte Mexican Grill Donato’s Pizza chain McCafe’ Recently Added Slide 9: • McDonald's was started as a drive-in restaurant by two brothers, Richard and Maurice McDonald in California,US in the year 1937. • By mid-1950s, the restaurant's revenues had reached $350,000. • Ray Kroc, distributor for milkshake machines, expressed interest in the business, and he finalized a deal for franchising with the McDonald brothers in 1954. • He established a franchising company, the McDonald System Inc. and appointed franchisees. • In 1961, he bought out the McDonald brothers' share for $2.7 million and changed the name of the company to McDonald's Corporation. In 1965, McDonald's went public… Quick Facts About McDonald’s Slide 10: McDonalds The McDonald's headquarters complex: McDonald's Plaza, is located in Oak Brook, Illinois. (It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook.) Slide 11: Industry and Competitive Analysis First question is: WHAT ARE THE INDUSTRY’S DOMINENT ECONOMIC FEATURES? McDonald’s competes with other businesses from these other categories as substitute product competitors but primarily competes in the quick-service sandwich market Second question is: WHAT KINDS OF COMPETITIVE FORCES ARE INDUSTRY MEMBERS FACING? 1. Rivalry Among Firms 2. Threat of New Entrants 3. Threat of Substitute Products 4. Bargaining Power of Customers 5. Bargaining Power of Suppliers Slide 12: Industry and Competitive Analysis Third question is: WHAT FACTORS ARE DRIVING INDUSTRY CHANGE AND WHAT IMPACTS WILL THEY HAVE? the fast-food industry has begun to focus on the needs of the customer that’s why needs to improve the quality of customer service and the cleanliness of the restaurant locations in order to please their customers in hopes that they will become a repeat customer. Fourth question is: WHAT MARKET POSITIONS DO RIVALS OCCUPY-WHO IS STRINGLY POSITIONED AND WHO IS NOT? Slide 13: Industry and Competitive Analysis Fifth question is: WHAT STRATEGIC MOVES ARE RIVALS LIKELY TO MAKE NEXT? Identifying the competitors strategies, resources strengths & weakness. Sixth question is: WHAT ARE THE KEY FACTORS FOR FUTURE COMPETITIVE SUCCESS? McDonald’s Key Success Factors (KSF’s) are cost efficiency, product development, marketing, and promotions for future competitive success. Slide 14: Industry and Competitive Analysis Seventh question is: DOES THE OUTLOOK FOR THE INDUSTRY PRESENT AN ATTRACTIVE OPPORTUNITY? McDonald will continue to drive success in 2009 and beyond by remaining focused on being better, not just bigger. McDonald will do so by further enhancing our understanding of consumers’ needs and wants; facilitating greater sharing and adoption of best practices and new ideas worldwide; and leveraging a strategic approach to implementing initiatives to drive the best bottom-line impact. Despite challenging economic conditions, the McDonald’s System is energized by our current worldwide momentum. McDonald will continue to build on their strength in five key areas. Slide 15: Company Situation Analysis First question is: HOW McDonald IS THE COMPANY’S PRESENT STRATEGY WORKING? In 2008, McDonald continued to focus on our key global success factors of branded affordability, menu variety and beverage choice, convenience and depart expansion, ongoing restaurant reinvestment and operations excellence. As a result, every area of the world contributed to 2008 global comparable sales and guest counts increasing 6.9% and 3.1%, respectively, despite a challenging economic environment in many countries. Slide 16: Company Situation Analysis Second question is: WHAT ARE THE COMPANY’S RESOURCE STRENGTHS AND WEAKNESS, AND ITS EXTERNAL OPPORTUNITIES AND THREATS? Slide 17: Company Situation Analysis Third question is: ARE THE COMPANY’S PRICES AND COSTS COMPETITIVE? The value chain at McDonald’s is very competitive in the global fast-food industry. The following table shows the costs and markups associated with McDonald’s signature hamburger, the Big Mac, bought at a McDonald’s. Slide 18: Strategic Task Analysis Slide 19: Strategic Task Analysis Industry Demand Drivers McDonald’s is Well Positioned Margin Expansion Healthy Financials Valuation Looking Good on other Criteria Risks Slide 20: Strategic Task Analysis Ratio Analysis and Forecasting Marketing Performance of McDonalds The 4Ps: i. Product ii. Price iii. Promotions iv. Place Slide 21: Problem Analysis Poor Customer Service Opposing Viewpoints Health Factor Increasing Competitor Major Problems: Slide 22: Problem Analysis Lacking in Management & Marketing Quick Service Make Customer Dissatisfaction Employee Dissatisfaction Minor Problems: Slide 23: Alternate Strategies Stay-on-the-offensive strategy Quick Fortify-and-defend strategy Global strategy Diversification Slide 24: Recommendations The main goal of the stay-on-the-offensive strategy is to be a proactive market leader. The principle of this strategy is to continually stay one step ahead of your competitors and force them to play catch up. Stay-on-the-offensive strategy Slide 25: Implementation Plan The “Plan to Win” strategy is important in the offensive strategy because it is about being innovative and challenging to the competitors. Therefore, it needs to continue onward with its successes while being a head every time with new product innovation, marketing schemes, technology development, customer service, employee training. Slide 26: BYE BYE SEE U AT McDonald’S Thank you

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