Professional Documents
Culture Documents
Mission Statement
McDonald's McDonald s brand mission is to "be be our customers' favorite place and way p to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering t i on the th five fi basics b i of f an exceptional customer experience People Products, People, Products Place Place, Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.
Company History
McDonald s Bar-B-Que (1940) McDonalds Worlds 1st McDonalds Founded by Dick and Mac McDonald San Bernadino, CA Drive-in D i i & car hop h service i McDonalds (1948) Name N F Formulates l Menu develops 15 Cent hamburger
Company Info
Corporate p Headquarters: q
McDonalds Corporation 2111 McDonald's Dr Oak Brook, IL 60523
Employees:
Approximately 400,000 McDonald McDonalds s employees globally 1.6 million people globally are employed through McDonalds restaurants and their franchises
Restaurants:
32,000 world-wide, 118 countries
NYSE: MCD
Current Price: $64.74 Change: g $0.26 +
(As of 2/16/2010)
2009 Revenue (mil.)$22,744.701 Year Revenue Growth -3.3% 3 3% 2009 Net Income (mil.)$4,551.001 Y Year Net N t Income I Growth G th 5.5% 5 5%
Leadership
Left to Right: Jose Armario, Group President Canada & Latin America; Janice Fulds, US Chief Operations Officer; James Skinner, Vice Chairman and CEO; Donald Thompson, President U.S.A; Jeffrey Stratton, Chief Restaurant Officer; Mary Dillion, Global Chief Marketing Officer; Timothy Fenton, President Asia/Pacific Middle East & Africa; Peter Bensen, Chief Financial Officer; Dennis Henequen. President Europe; (at table) Gloria Santona, General Counsel & Corporate Secretary; Richard Floersch, Chief Human Resource Officer.
Culture
Forging new opportunities
Innovation from within p big g thinking g Empowered
Social responsibility
Community Focus Responsible Purchasing g Our Environment Protecting
Diversity
Employee Force
foods
Cook
and package
Satisfied
customers
Assemble
favorite place and way to eat a relaxed and fun environment to eat
Line
Prep/Assembly
Frozen foods (patties, fries, chicken nuggets, etc.) Produce Containers Company
image
COST
Make it cheap: Economies of scale
Allows McDs McD s to pass the value to consumers
McValue Dollar Menu Party Pack
Cost controls l
QUALITY
Make it consistent: Universal taste Core offerings globally Order Qualifier: Make it good: Taste appeal to its target market Healthy options
SPEED
Make it fast: 90 second service goal Order Qualifier: Make it dependable: Menu items available daily Hot & Fresh
Order Qualifier: New Product Development: Regional R i l menu items it Healthy menu options
FLEXIBILITY
Order Qualifier: Product design:
S/M/L/Super size Gender based kids meals Happy meals vs. Mighty kids meals P Promotional l packaging k
Sandwich varieties Soft serve offerings (milkshakes, ice cream cones, sundaes) Salads
Staffing based on consumer traffic and meal time ti 24 Hour restaurants and drive-thru
PROCUREMENT
INBOUND LOGISTICS
OPERATIONS
OUTBOUND LOGISTICS
SERVICE
Firm Infrastructure
Strengths: Brand recognition #1 in retail fast food industry Leadership Financial Strength Company image Intellectual property Franchising Weaknesses: Lawsuits Company image Culture insensitivities
STRENGTH
WEAKNESS
INBOUND LOGISTICS
SERVICE
Inbound Logistics
Strengths:
Economies of scale
Pass value to customer (i.e. $1 menu)
Weaknesses:
Media backlash
PROCUREMENT
STRENGTH
WEAKNESS
INBOUND LOGISTICS
SERVICE
Operations
Strengths: On-line O li & on-site it ki kiosk kj job b application li ti systems 2nd largest employer in the U.S. Reinforced information systems Wireless headsets Wi-Fi offered in all locations R&D in target consumer demands and trends Corporate guidelines imposed on franchisees Franchisees must purchase supplies from McDs
Operations
Weaknesses: High Hi h turn-over t (more ( then th 100%) 90 second drive-thru rule (unsuccessful) Impersonal drive-thru greeters (telemarketer like, person is not in store)
HUMAN RESOURCES
TECHNOLOGY
PROCUREMENT
STRENGTH
WEAKNESS
INBOUND LOGISTICS
SERVICE
Outbound Logistics
Distributor agreements g Quality control
Freight truck inspections random audits
HUMAN RESOURCES
TECHNOLOGY
Refridgerated trucks Reinforced IT Just-in-time order & delivery Distributor agreements QC Packaging
PROCUREMENT
STRENGTH
WEAKNESS
INBOUND LOGISTICS
SERVICE
(contd) (cont d)
(contd) (cont d)
Supersize Me movie Media/PR Adaptation to global culture and customs Product failures
FIRM INFRASTRUCTURE
#1 in retail fast food industry Leadership Financial Strength C Company image i Intellectual property Franchising Lawsuits
PROCUREMENT
Consumer Research McValue Dollar Menu Party Packs Cartoon Affiliations Coke Olympic Sponsor Upscale MD's Going Green MC f McCafe Wi-Fi MD's Play Place Ronald McDonald
"Supersize Me" Media/PR Global expansion issues Product failures
STRENGTH
R&D based b d on consumer demands Corp guidelines for Franchisees 90 second drive-thru rule l
WEAKNESS
INBOUND LOGISTICS
SERVICE
Service
Strengths: Fast food service y Order accuracy Clean environment y customer service Friendly Weaknesses: Lack of customer service Employee apathy Dissatisfied customers
FIRM INFRASTRUCTURE
#1 in retail fast food industry Leadership Financial Strength C Company image i Intellectual property Franchising Lawsuits
PROCUREMENT
STRENGTH
Fast food service Order accuracy Clean environment Friendly customer service Lack of customer service Employee apathy Dissatisfied customers
WEAKNESS
INBOUND LOGISTICS
SERVICE
Core Competence
McDonalds strength lies in the operations and firm i f infrastructure. McDonalds core competency is the production and d li delivery speed d of f affordable ff d bl f food dt to a l large number b of f customers to support a low cost, high speed, and consistent quality strategy McDonalds strategy is supported by its strong financial resources, brand image, market leadership, buyer supplier product value. relations, and p
Competitive Advantage
#1 Fast food restaurant in industry y Customers Value and affordable menu Convenience Franchisee base