Mc'd Ppt(Strategy Mngt)

8/8/2019 Mc'd Ppt(Strategy Mngt)

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ICLE]S MJ COLLEGEICLE]S MJ COLLEGE

STRATEGYSTRATEGY

MANAGEMENTMANAGEMENT


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GROUP MEMBERS :GROUP MEMBERS :--HARSHADA 50441HARSHADA 50441

PRACHI S. 50442PRACHI S. 50442SHAHEEN 50443SHAHEEN 50443SMITA 50444SMITA 50444

ATISHA 50445 ATISHA 50445 AMIT 50453 AMIT 50453


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INTRODUCTIONINTRODUCTIONMcDonald s is a large corporation in theMcDonald s is a large corporation in thefast food industry.fast food industry.They have been around since 1955 whenThey have been around since 1955 whenRay Kroc started the chain of McDonalds.Ray Kroc started the chain of McDonalds.

They have been growing ever since.They have been growing ever since.The majority of the restaurants are ownedThe majority of the restaurants are ownedthrough franchises.through franchises.


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They employ 447,000 people.They employ 447,000 people.They have over 3,200 restaurants in over 119 countries.They have over 3,200 restaurants in over 119 countries.The majority of the McDonald s franchises are owned byThe majority of the McDonald s franchises are owned byindividual franchises. McDonalds is the largest fast foodindividual franchises. McDonalds is the largest fast foodindustry in the world.industry in the world.Their primary competitors are other fast food chainsTheir primary competitors are other fast food chainssuch as Burger King and Wendy s. The competition cansuch as Burger King and Wendy s. The competition canget pretty intense to build customer loyalty to their food.get pretty intense to build customer loyalty to their food.The McDonalds Brand is one of the most well knownThe McDonalds Brand is one of the most well knownBrands in the world.Brands in the world.


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HISTORY HISTORY McDonald sMcDonald s isis oneone of of thethe leadingleading restaurant restaurant chainschains inin thethe world,world, touchingtouching thetheliveslives of of peoplepeople everydayeveryday. . TheThe longlong journey journey of of thethe burgerburger brandbrand startedstarted inin19401940,, whenwhen twotwo brothers,brothers, DickDick andand MacMac McDonaldMcDonald openedopened thethe first first McDonald sMcDonald s restaurant restaurant inin SanSan Bernardino,Bernardino, CaliforniaCalifornia.. Initially,Initially, theythey ownedowned aahotdoghotdog stand,stand, but but afterafter establishingestablishing thethe restaurant restaurant theythey servedserved aroundaround 2525items,items, whichwhich werewere mostlymostly barbequedbarbequed. . It It becamebecame aa popularpopular andand profitableprofitableteenteen hangout hangout. . InIn 19481948,, thethe brothersbrothers closedclosed andand reopenedreopened thethe restaurant restaurant totosellsell onlyonly hamburgers,hamburgers, milkshakesmilkshakes andand FrenchFrench friesfries..

thethe majormajor revenuerevenue camecame fromfrom hamburgers,hamburgers, whichwhich werewere soldsold at at aa nominalnominalpriceprice.. TheThe restaurant restaurant graduallygradually becamebecame famousfamous andand thethe McDonaldMcDonald brothersbrothersbeginbegin franchisingfranchising theirtheir restaurant restaurant inin thethe yearyear 19531953.. TheThe first first franchisefranchise waswastakentaken byby NeilNeil FoxFox andand underunder it it;; thethe secondsecond McMc Donald sDonald s restaurant restaurant waswasopenedopened inin Fresno,Fresno, CaliforniaCalifornia.. It It waswas thethe first first toto introduceintroduce thethe GoldenGolden Arch Arch

designdesign.. TheThe thirdthird andand fourthfourth restaurantsrestaurants werewere openedopened inin Saginaw,Saginaw, MichiganMichiganandand Downey,Downey, California,California, respectivelyrespectively. .


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Marketing challengesMarketing challenges

StrengthsStrengthsBrand AwarenessBrand AwarenessBroad geographic locationsBroad geographic locations

McDonalds standard and conformedMcDonalds standard and conformedchanges in large areas efficientlychanges in large areas efficiently


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W eaknesses W eaknesses

There is lower operating income in Europe andThere is lower operating income in Europe andCanadaCanada In Canada the operating income fellIn Canada the operating income fell12.6%, likewise the European restaurants12.6%, likewise the European restaurantsoperating income also fell at 1.5%.operating income also fell at 1.5%.There is a relatively small revenue growthThere is a relatively small revenue growth - - InInthe last 5 years McDonalds revenues havethe last 5 years McDonalds revenues have

grown at a rate of 7.5% compared to industrygrown at a rate of 7.5% compared to industrygrowth at 13.6%growth at 13.6%


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T hreats T hreats

CompetitionCompetition - - global, national, regional,global, national, regional,and local. Commodityand local. CommodityGrowing health conscious populationGrowing health conscious population

Food safetyFood safety bacteria, e. coli, 41bacteria, e. coli, 41 - -150150


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Environmental recordEnvironmental record


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VISION VISION

TOTO BEBE THETHEWORLD SWORLD S BESTBESTQUICK QUICK SER VICESER VICE

RESTAURANTRESTAURANTEXPERIENCEEXPERIENCE


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Go alGo alMcDonald s real goal as a corporation is to makeMcDonald s real goal as a corporation is to makemoney for the stockholders. Their stated goal ismoney for the stockholders. Their stated goal isLong term sustainable growth for all stakeholders.Long term sustainable growth for all stakeholders.McDonalds has realized that they are reaching aMcDonalds has realized that they are reaching abig maturation stage in the business cycle, basedbig maturation stage in the business cycle, basedon its profits slowing down more and more everyon its profits slowing down more and more everyyear. It is going to be time to reinvent or reyear. It is going to be time to reinvent or re- -imageimagethis corporation to try to start the business cyclethis corporation to try to start the business cycleover again.over again.


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Goal changing from getting bigger, toGoal changing from getting bigger, togetting better.getting better.

Advertise on the internet more. Get more Advertise on the internet more. Get morepeople to visit their website.people to visit their website.Secondary advertisingSecondary advertisingOf course build brand awareness and loyalOf course build brand awareness and loyalcustomerscustomers


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7 P S OF MCDONALD S7 P S OF MCDONALD S

PRODUCTPRODUCTPRICEPRICEPROMOTIONPROMOTIONPLACEPLACEPEOPLEPEOPLEPROCESSPROCESSPHYSICAL E VIDENCEPHYSICAL E VIDENCE


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PRODUCTSPRODUCTSMcDonald'sMcDonald's predominantlypredominantly sellssells hamburgershamburgers ,,variousvarious typestypes of of chickenchicken sandwichessandwiches andandproducts,products, FrenchFrench friesfries ,, soft soft drinksdrinks ,, breakfast breakfast items,items, andand dessertsdesserts .. InIn most most markets,markets, McDonald'sMcDonald'soffersoffers saladssalads andand vegetarianvegetarian items,items, wrapswraps andandotherother localizedlocalized farefare.. PortugalPortugal isis thethe onlyonlycountrycountry withwith McDonald'sMcDonald's restaurantsrestaurants servingservingsoupsoup.. ThisThis locallocal deviationdeviation fromfrom thethe standardstandardmenumenu isis aa characteristiccharacteristic forfor whichwhich thethe chainchain isisparticularlyparticularly known,known, andand oneone whichwhich isis employedemployed

eithereither toto abideabide byby regionalregional foodfood taboostaboos (such(suchasas thethe religiousreligious prohibitionprohibition of of beef beef consumptionconsumption inin IndiaIndia )) oror toto makemake availableavailablefoodsfoods withwith whichwhich thethe regionalregional market market isis moremorefamiliarfamiliar (such(such asas thethe salesale of of McRiceMcRiceinin IndonesiaIndonesia ))..


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REVIE W REVIE W

Overall,Overall, McDonaldsMcDonalds isis tryingtryingtoto dodo what what theythey dodo best best:: MarketingMarketing

TheyThey areare tryingtrying toto controlcontrol thethesecondarysecondary advertising,advertising, andand utilizeutilizeit it forfor somethingsomething that sthat s profitableprofitable forforthethe stockholdersstockholders

TheyThey areare buildingbuilding brandbrand awarenessawarenessthroughthrough thisthis marketingmarketing

GamesGames forfor kidskids


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CU S T OMERIZATI ONCU S T OMERIZATI ON

McDonaldsMcDonalds cancan fit fit intointosomesome aspectsaspects of of thethe

customerizationcustomerization modelmodel..TheThe oneone downfalldownfall that that theythey willwill havehave aa strugglestruggle

doingdoing isis premium premium pricepriceacceptanceacceptance tootoo muchmuchcompetitioncompetition. .


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CONCLUSIONCONCLUSION

BecauseBecause McDonald'sMcDonald's hashas takentaken muchmuch of of thethe hardhard workworkout out of of stockstock management,management, Restaurant Restaurant ManagersManagers areareableable toto spendspend moremore timetime focusingfocusing onon deliveringdeliveringMcDonald'sMcDonald's highhigh standardsstandards of of Quality,Quality, ServiceService andand

CleanlinessCleanliness. . CustomersCustomers areare happyhappy becausebecause theythey cancan bebesuresure thethe itemitem theythey want want isis onon thethe menumenu that that dayday..EfficientEfficient stockstock managementmanagement is is essentialessential to to anyanybusinessbusiness. . ItIt enablesenables thethe businessbusiness to to operateoperate in in aaresponsibleresponsible wayway. .TheThe systemsystem alsoalso minimisesminimises wastewaste. . Efficient Efficient useuse of of materialsmaterials meansmeans that that society'ssociety's resourcesresources areare beingbeing

usedused wellwell withwith veryvery fewfew wastewaste productsproducts. . ForFor example,example,fewerfewer materialsmaterials endend upup asas wastewaste inin landfilllandfill sitessites.. ThisThisleadsleads toto aa reductionreduction inin costscosts..DueDue toto lowerlower costs,costs, McDonald'sMcDonald's cancan passpass thethe benefitsbenefitsonon toto customers,customers, providingproviding betterbetter serviceservice andand lowerlowerpricesprices.. TheThe reductionreduction of of wastewaste providesprovides aa win/win/winwin/win/winsituationsituation forfor McDonald's,McDonald's, itsits customerscustomers andand widerwider

societysociety..


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THANK YOU.THANK YOU.

Mc'd Ppt(Strategy Mngt)

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