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• Founded : 1955 by Ray Kroc• Headquarters : Oak Brook,Illinois,USA• Number of locations : 31,000+ worldwide• Products : Fast food• Employees : 4,00,000 (2008)
Making A DifferenceMaking A Difference
We have an obligation to We have an obligation to give back to the give back to the communities that give us communities that give us so much." so much." - Founder Ray Kroc, 1955- Founder Ray Kroc, 1955
Organization StructureOrganization StructureMcDonald’s operates in more than 100 countries and is organized into a geographical structure with five key segments:
(1)McDonald’s USA
(1)McDonald’s Europe
(1)McDonald’s AMEA(Asia,Middle East & Africa)
(1)McDonald’s Latin America
(1)McDonald’s International
McDonald’s CorporationMcDonald’s Corporation Sales By Segment Sales By Segment
U.S.37%
Europe33%
Asia/Pacific14%
Latin America7%
Other9%
McDonald’s MissionMcDonald’s Mission
McDonald's brand mission is to be our customers' favorite place and way to eat,
and improve our operations to provide the most delicious fast food that meet our
customers' expectations.
McDonald’s VisionMcDonald’s Vision
McDonald's vision is to be the best and leading fast food provider around the globe .
2) Globalization, expansion in other countries (especially in China & India).
3) Diversification and acquisition of other quick-service restaurants.
4) Growth of the fast-food industry.
5) Worldwide deregulation.
6) Low cost menu that will attract the customers.
7) Freebies and discounts.
1) Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity.
2) The relationship between corporate level McDonald's and its franchise dealers
3) McDonald’s competitors threatened market share of the company both internationally and domestically.
4) Anti-American sentiments.
5) Global recession and fluctuating foreign currencies.
6) Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues.
EXTERNAL FACTOR EVALUATION (EFE)
MATRIX
Key Internal Factors Weight Rating Weighted Score
Opportunities
Growing health trends among consumers
0.08 4 0.32
Globalization, expansion in other countries (especially in China and India).
0.12 4 0.48
Diversification and acquisition of other quick service restaurants.
0.04 3 0.12
Growth of the fast-food industry.
0.10 4 0.40
Worldwide de-regulation 0.04 3 0.12
Low cost menu that will attract the customers
0.08 4 0.32
Freebies and discounts 0.08 4 0.32
Key Internal Factors Weight Rating Weighted Score
Threats
Health professionals and consumer activists accuse McDonald’s of contributing to the country’s health issue of high cholestrol, heart attacks, diabetes and obesity.
0.10 2 0.20
The relationship b/w corporate level McDonald’s and its franchise dealers
0.09 2 0.18
McDonalds dealers threatened market share of the company both internationally and domestically
0.12 2 0.24
Anti-american sentiments 0.07 2 0.14
Global recession and fluctuating foreign currencies
0.04 1 0.04
Fast-food chain industry is expected to struggleto meet the expectations of the customers towards health and environment issues
0.04 1 0.04
Total 1.00 2.92
PORTER’S FIVE FORCES PORTER’S FIVE FORCES MODELMODEL
THE THREAT OF THE THREAT OF ENTRANTS ENTRANTS
Large established companies with strong brand identities such as McDonald’s BKC, YUM, and WENDY’S do make it more difficult to enter and succeed within the marketplace.
New entrants find that they are faced with price competition from existing chain restaurants.
BARGAINING POWER BARGAINING POWER OF BUYERS OF BUYERS
Low bargaining power of buyers.
BARGAINING POWER OF BARGAINING POWER OF SUPPLIERS SUPPLIERS
Bargaining power of suppliers within the fast food industry would be relatively small, unless the main ingredient of the product is not readily available.
THREAT OF THREAT OF SUBSITITUTES SUBSITITUTES
This could range from a competitive fast food restaurant to family restaurant to a home cooked meal.
COMPETITORCOMPETITOR
•Burger King
•Yum
•Wendy’s
Founded in Miami, Florida in 1954 under Founded in Miami, Florida in 1954 under the name “Insta Burger King” by James the name “Insta Burger King” by James McLamore and David Edgerton,Burger King McLamore and David Edgerton,Burger King Corporation(BKC),a subsidiary of Burger Corporation(BKC),a subsidiary of Burger King Holding,Inc.,owns 11,184 resturants in King Holding,Inc.,owns 11,184 resturants in 66 countries and has 37,000 employees.66 countries and has 37,000 employees.
BURGER KING
YUM BRANDS(YUM)YUM BRANDS(YUM)
Yum! Brand, Inc., formally known as TRICON Yum! Brand, Inc., formally known as TRICON Global Restaurants, Inc., was founded in 1997 Global Restaurants, Inc., was founded in 1997 and changed its name to YUM! Brands, Inc.,in and changed its name to YUM! Brands, Inc.,in 2002.YUM operates 34,000 resturants in 100 2002.YUM operates 34,000 resturants in 100 countries, including prominent resturant chains countries, including prominent resturant chains such as Kentucky Fried Chicken(KFC),Pizza such as Kentucky Fried Chicken(KFC),Pizza Hut,Taco Bell,Long John Silver’s,and Hut,Taco Bell,Long John Silver’s,and A&W.With a market cap of $17.61 billion and A&W.With a market cap of $17.61 billion and 53,200 employees. 53,200 employees.
WENDY’SWENDY’S
CPM-COMPETITIVE PROFILE MATRIX
RECOMMENDATIONSRECOMMENDATIONS
Expand further into Asia markets over a 2-year period by adding 500 restaurants per year at a cost of $4 billion annually, and applying 0 grams ,Trans fat in all worldwide McDonald's restaurants.