Professional Documents
Culture Documents
McDonalds
MCDONALDS CORPORATION
EXECUTIVE SUMMARY
one of the world's largest chain of hamburger fast food restaurants.
McDonalds 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 McDonalds. 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.
History of McDonalds
1940 First McDonalds 1952 Attempts at franchising 1954 Milk Shake Machine 1955 prototype opens in Des Plaines, IL 1956 14 McDonalds 1961 McDonald brothers sell rights
History Continued
Kuwait 1965 McDonalds go public 2002 Forty seven years 1968 Introduction of Big after Mac and shift to 30,000 locations Network Television 2000 new restaurants 1970 1600 restaurants World Wide Web 1980 6000 McDonalds McDonalds a Restaurants recognized Brand 1990 record sales Name
Recently Added
Boston Market Chipolte Mexican Grill Donatos Pizza chain McCafe
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.)
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
McDonalds Key Success Factors (KSFs) are cost efficiency, product development, marketing, and promotions for future competitive success.
Threats Increased competition among rival sellers, including price wars, product innovation, and growth Health conscious consumers demanding better quality, healthier menu items All fast-food chains expected to struggle to meet new consumer health expectations Overall McDonaldaker economy
The value chain at McDonalds is very competitive in the global fast-food industry. The following table shows the costs and markups associated with McDonalds signature hamburger, the Big Mac, bought at a McDonalds.
Value Chain Analysis
McDonald's Production Costs McDonald's Overhead Costs Royalties 4% Service Fee $ 0.13 $ $1.48 $1.32 $ 2.80 $ 0.65 $ 0.70
Total Costs
Retail Markup Average price to Consumer
Mission
To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."
Values
Our values summarized in Q.S.C & V. Provide good quality, services to customer . Have cleanliness environment when customer enjoys their meal .The value of food product makes every customer is smiling.
Industry Demand Drivers McDonalds is Well Positioned Margin Expansion Healthy Financials Valuation Looking Good on other Criteria Risks
Problem Analysis
Major Problems:
Problem Analysis
Minor Problems:
Lacking in Management & Marketing Quick Service Make Customer Dissatisfaction Employee Dissatisfaction
Alternate Strategies
Recommendations
Stay-on-the-offensive strategy
The main goal of the stay-onthe-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.
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.