Presented By Minal Neswankar Jivika Thakur Preeti Waghmode

This Presentation will Overview selected business (McDonalds), its objectives Overview Business Strategy of McDonalds Provide Analysis of McDonalds (SWOT, Situation) Provide conclusions and recommendation

 Ray Kroc was the founder of McDonalds. McDonalds operates over 31,000 restaurant worldwide , employing more than 1.5 million people. McDonalds operates in 120 countries on six continents. McDonalds serves more than 50 million customers a day worldwide, and more than 2.5 million people a day in the UK .

 1940 :: First McDonalds Opened in USA 1953 :: McDonalds Began To Franchise 1964 :: McDonald's issued its first annual report 1975 :: Drive Thru Was Introduced 1984 :: Ray Kroc Died on 14th January 2005 :: McDonalds Opened Wi-Fi Service 2009 :: McDonald's introduces three versions of Angus Burgers

SWOT Analysis

Brand Recognition
Leader In Quick Service Sandwich Industry Strongest International Presence Real Estate Holdings Easily Recognizable Products Variety Sources of Income Franchise Business Model

SWOT Analysis

Customer Service Level

Poor Management

Poor Marketing

Struggles in Offering Value/ Premium Items

High Employee Turnover

SWOT Analysis

Growth In Global Food Service Industry

Initial Public Offerings In Other Countries

Acquisition of Other Restaurants

Retail Sales of Merchandises

SWOT Analysis

Increased Competition from Various Industries

Health Conscious Consumer Trends

Saturation of World Fast-food Market

Slow Growth in Sandwich Segment

Price War Business Practices

SWOT Analysis

Liquidity

Not extremely liquid but capability in financing short-term debt will not be a problem. Profitable Declining trend but returns to normal level of profitability in 2003 High inventory turnover compliant to nature of industry Normal Leverage Has ability to cover debt obligations

SITUATION Analysis

Profitability

Asset Utilization

Leverage

Marketing Analysis
4 Ps Analysis
SWOT Analysis

Situation Analysis

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Product
Wide variety of menu items Local flavors

- traditional items - health-conscious items

Marketing Analysis
4 Ps Analysis
SWOT Analysis

Situation Analysis

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Promotion
Im lovin it campaign to attract family Feature artists to target teenagers Give Ronald a more prominent place

Marketing Analysis
4 Ps Analysis
SWOT Analysis

Situation Analysis

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Place
30,000 stores worldwide Operations

-Company-owned -Franchise

Marketing Analysis
4 Ps Analysis
SWOT Analysis

Situation Analysis

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Price
Traditionally - value-pricing as competitive weapon Now, offer products at range of price points
-attract both price-sensitive and health-conscious consumers

Management Critique
SWOT Analysis

Situation Analysis

Past

+
Present

Series of unsuccessful initiatives Aggressive store expansion cannibalization Tensions stopped QSVC evaluation Poor Customer Service Level

Management Critique
Concerns
SWOT Analysis

Situation Analysis

Sustainability of Initiatives? Or is it just Cyclical Trend?

Past

+
Present
Cantalupo took over in 2003 Launched initiatives aimed to - internal operations - slowing down expansion - enhancing relevancy to customers Shown positive progress

Situation Analysis
SWOT Analysis

Distinctive Competencies Franchise Business Model

Pioneer in Franchise Management Quick Expansion Leader in Quick Serve Industry Standardization What McDonalds is Known For

Situation Analysis

Concern: Deteriorating Franchise Management Sustainable Competitive Advantage Brand

World Recognition Presence > 120 countries

Concern: Negative Brand Perception JUNK FOOD