mcdonalds presentation
TRANSCRIPT
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Strategic Report for McDonald’s
TEAM II
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Overview
History
• started as a small hamburger stand in California, owned by Dick and Mac McDonald.
• Dick and Mac closed their business
for three months and re-opened December 1948 as a self-service drive-in restaurant.
• In 1954, Ray Kroc became the first signs a franchise agreement with Dick and mac McDonald opening his first McDonald’s in Des Plains, Illinois on April 15, 1955.
Mission
• McDonald's brand mission is to be their customers' favorite place and way to eat and drink.
• Their worldwide operations are aligned around a global strategy called the “Plan to Win,” which center on an exceptional customer experience; People, Products, Place, Price, and Promotion.
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Core Competencies
• Core intellectual assets.
• Product line enhancements.
• Market leadership and unique brand recognition.
• Technological, financial and physical assets.
Market PerformanceDomestic VS. International
• In the U.S., second quarter comparable sales decreased 2.0% . Operating income for the quarter decreased 6%.
• Europe's second quarter comparable sales increased 1.2% driven by solid performance in the U.K. and Germany. Operating income decreased 20%.
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Organizational Structure
• McDonald’s started operating under a new organizational structure with four segments that combine markets with similar characteristics.• U.S., International Lead
Markets, High Growth Markets, Foundational Markets & Corporate.
Major Competitors
• McDonald’s most relevant competitors include Burger King, Wendy’s, Yum! Brands, Popeye’s, and Chipotle. On a broader basis, McDonald’s restaurants compete with international, national, regional, and local food product retailers.
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SWOT ANALYSISStrengths:
• 31,000 restaurants serving burgers and fries in almost 120 countries.
• Strong brand name, image and reputation:• SPECIALIZED TRAINING FOR MANAGERS(Hamburger
University)• Technology Innovative:(Brazil ) In 1961, Fred Turner,
McDonald’s former senior chairman and Ray Kroc’s first grill man, founded Hamburger University in the basement of a McDonald’s restaurant in Elk Grove Village, Illinois.
• February 24, 1961, Hamburger University's first class of 15 students graduated
• Today, more than 7,500 students attend Hamburger University each year
• Since 1961, more than 80,000 restaurant managers, mid-managers and owner/operators have graduated from this facility
• GOOD MARKETING MIX• SUPPORTS CHILDREN HOSPITALS
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Weaknesses
• Unhealthy food image.• "Supersize Me" by Morgan Spurlock(obesity).• Customer loses due to fierce competition.•Problem related to health issue.•High employee turnover rate.
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Opportunities
• Growth of the fast food industry:
• Low cost menu is preferred by large number of customers.• Diverse tastes and needs of customers: (WIFI AND
ETC…)• HEALTHIER FOOD OPTIONS.
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Threats
• Intensity competitors (burger king)
• Public health crisis:( supersized menu)
• Economic recession: (Holidays)
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What are the company’s critical success factors in their global competition?
• Custom range• Nutrition• Availability• Affordability
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What are the company’s core competencies?
• worked with suppliers to implement chain of custody certification
• 36,000 restaurants in more than 100 countries.
• providing a low cost food and fast service.• cross-cultural competence provides leaders
with knowledge, skills, abilities, and attitudes to operate in any culture.
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What are the company’s major business strategies?
• Value of money• Customer service•Digital marketing•Menu standardization• Breakfast menu items
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McDonald’s competitive strategic weapons regarding international business implementation:
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McDonald’s Across the
World
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http://www.indexmundi.com/blog/wp-content/uploads/2013/02/macdonalds-worldwide.png
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Global Menu Innovation
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Supply Chain
“In business for yourself, but not by yourself.” -Ray Kroc
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Strategic Solutions• People• Products• Place• Promotion
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Strategic Solution Continue(Play to Win)
•Customer Services improves•1,600 more restaurants•1,000 renovations• Increase Sales by 5%