...Introduction One of the largest and most popular fast food restaurant in the world, McDonald’s, has stores located all over the world that are found in 118 countries and operate over 35,000 restaurants worldwide. It is compressed of both company-owned and franchised restaurants that all operate maintaining a tight grasp on operations, cost, quality and control. The relationship between McDonald’s and its independent franchises is of fundamental importance to overall performance and to the McDonald’s brand. Being this large of a company, every decision that it makes is crucial for the survival of the company and any wrong moves can make a huge impact on them on a much larger scale. The company is always undergoing changes and every decision that McDonald’s makes needs to be greatly evaluated to make sure it doesn’t lead them towards failure. There’s a lot of competition in the fast food industry and competitors are always competing against each other when it comes to price, quality, advertising, deals, new items and more. There’s a lot of opportunity that has been made and still to be made in the fast food industry and all falls back on the decisions that these companies make and in this paper we will be conducting multiple strategical analysis on McDonald’s and evaluating it. One of the most challenging things looking at the fast food industry is that it is not an attractive market for new entrants, competing against the costs of existing companies is very difficult but they...
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...Working for McDonald's is often portrayed as an undesirable job. In primary school, my math teacher told us that if we did not learn division, we would end up “flipping burgers at ‘Booger King’ or mopping floors at McDonald's.” She is not alone in her negative stereotype of McDonald's. In 2003 the Merriam-Webster Dictionary added the term “McJob,” defining it as a “low paying job that requires little skill and provides little opportunity for advancement." This negative perception of McDonald's is not consistent with the facts. The Darden case study reports on p. 3 that McDonald's defies industry norms, paying wages that are often better than the industry average and offering many employee benefits. For example, McDonald's designed incentives to encourage employees to participate in health insurance and 401(k) retirement programs, and pioneered several types of "flex-time." The company is a leader in employee training programs to develop and retain workers, founding "Hamburger U" in 1961. The company also uses a promote-from-within strategy, with 40% of executive officers beginning as entry-level crewmembers. Overall, McDonald's corporate strategy is to be the world's best "quick service" food provider by focusing on its stakeholders. In order to be successful, the company must deliver excellent products and service to customers; develop, retain and motivate employees and local suppliers; deliver profit to shareholders; and contribute to the community. The company wishes...
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...PLCY-399 Case Study: McDonalds and Its Critics: 1973-2009 Mar 27th 2012 <McDonald’s And Its Critics: 1973-2009> is the most useful case that I’ve ever read about the McDonald’s. This case helped me fully understand the McDonald’s history from 1973 through 2009, as well as the reasons for its successes and failures through the years. Starting from the beginning, McDonald’s was a restaurant ran by two brothers Richard and Maurice, who managed this restaurant as a carhop drive-in restaurant in San Bernardino, California since 1930s. In the early 1950s, the brothers transferred the carhop service with self-service by simplifying the menu. In 1954, Ray Kroc, a salesman who supplied multitier milkshake machines to the McDonald brothers decided to observe the brothers at work. From his observation, Kroc noticed that McDonalds’ formula of services is distinctive from other restaurants in the food industry. Kroc is a smart guy that he knew the unique formula could bring him to success, so he made a smart and big decision to buy the right from the brothers to open McDonald’s restaurant franchises nationally. The first strategy that Kroc used is to rapidly open McDonald’s restaurants. Secondly, he introduced the Golden Arches logo and made the company went public. Kroc was an innovative man that he believed uniformity is a very important key to lead the franchising to success. At that time, uniformity was a revolutionary concept in the food service industry, so he made...
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...FRANCHISING A Case Study on McDonalds [pic] A Project in Entrepreneurship Submitted To: Ms. Kishori Ravi Shankar Submitted By: Mansi Chanana & Udit Bhatia 4455 & 4447 BBS-III (M) Shaheed Sukhdev College of Business Studies Acknowledgement Perseverance, inspiration and motivation have always played a key role in the success of any venture. It has been a privilege that Shaheed Sukhdev College of Business Studies has given us the opportunity to work on business projects as part of the course curriculum. These projects serve as a stepping stone into the corporate world and to know it inside out. At this level of understanding it is often difficult to understand the spectrum of knowledge without proper guidance and advice. First and foremost we would like to express our gratitude towards Ms. Kishori Ravi Shankar, without whose support and guidance this project would not have been possible. Special thanks to all the people from the various segments explored for providing useful insights that have helped add value to this project. Mansi Chanana & Udit Bhatia 4455 & 4447 BBS- III (M) 1.0 Franchising: An Overview Franchising (from the French for free) is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and intangibles...
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...McDonald's is the leading global food service retailer, with more than 33,000 local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated independently. McDonald’s is categorized as a fast-food restaurant that serves mainly hamburgers, fries, and beverages, with the main focus on product and service quality, speed and accuracy. McDonald’s uses Cost Leadership Strategy in combination with Operational Excellence Strategy. This company is creating value, based on price, combined with customer service. Cost Leadership Strategy allows McDonald’s to keep production costs and customer prices low; meanwhile, Operational Excellence helps maximize the efficiency of the product development process to minimize costs, but creates a competitive advantage on operational excellence. Employees need to identify and follow efficient processes and engage in improvement practices. The big advantage of McDonald’s is mainly consistency, fast service, quality, and global coverage. This means that a traveler from the U. S. who wants to purchase a McDonald’s product in Asia, knows exactly what he will get. Consistency is very important for a lot of people who don’t like to experiment and by trying different food; that’s why McDonald’s is so successful. Another big advantage of this company is innovation, and listening to people and their needs, and wants. McDonalds staffing strategy consists of priorities...
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...McDonald’s Corporation Analysis & Prognosis July 18, 2012 Table of Contents Overview 2 Analysis 2 The History of McDonald’s 2 Mission and Values 3 Company Structure and Organization 3 Sales, Profit, & Cash 4 Key Metrics 5 Position in the Industry 5 Stock Market Performance 6 Strengths and Weaknesses 7 Opportunities and Threats 8 Corporate-Level and Business-Level Strategies 10 Significant Product Failures 10 Prognosis 10 Sales 10 Profits 11 Key Metrics 11 Position in the Industry 11 Conclusion 11 Works Cited 12 Appendix 13 Appendix A 13 Appendix B 13 Appendix C 14 Appendix D 14 Appendix E 15 Overview McDonald’s Corporation is the world’s largest fast food restaurant chain. I have done hours of extensive research on McDonald’s and the limited-service restaurant industry and have been eating McDonald’s for over 20 years. I will discuss McDonald’s past performance versus the industry and provide a prognosis for the future. There is a rich history behind McDonald’s, starting in 1948 with the McDonald brothers. Ray Kroc started franchising McDonald’s in 1955 and from there built a corporation. Most missions and values still used today are those Kroc implemented. McDonald’s is structured as a multifunctional form. It is mainly organized by geographical area. There are four main geographical areas and those are then it is broken up even further. McDonald’s has had steady revenues over the last ten years and...
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...competitive environment: A McDonald's Restaurants case study For businesses to understand adequately the nature of the competition they face, they must define their market accurately. This involves recognising a broad base of competitors. McDonald's has thousands of competitors, each seeking a share of the market. McDonald's recognises that it is up against not only other large burger and chicken chains but also independently owned fish and chips shops and other eat-in or take-out establishments. A company like McDonald's therefore, has to develop competitive strategies that differentiate it from its rivals. All organisations need to be in touch with their business environment in order to make sure that what they do fits with customer expectations. These expectations change over time. Moreover, the IEO market in which McDonald's operates is becoming increasingly competitive, as the chart below illustrates. Recently, in this crowded market place, McDonald's competitive lead came under pressure largely because many fast food outlets have either: • copied the trail-blazing ideas that previously set McDonald's apart and put it ahead of the field • promoted new ideas of their own e.g. urban supermarkets and petrol stations that sell convenient, portable mealtime replacements. McDonald's recognises the need to respond. It is looking to increase the competitive gap by: • adding greater value through innovation • making the process of visiting a McDonald's less routine and controlled ...
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...Dick and Mac McDonald in San Bernardino, California. Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created. The new franchise began to grow rapidly as a result of its success. It wasn’t long before the 100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.” McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant, “Ronald McDonald” made his big debut, and McDonald’s net income exceeded $1 million. In 1966 McDonald’s was first listed on the New York Stock Exchange, and in 1967 McDonald’s went global. The company kept expanding with the introduction of the “Big Mac” and the opening of its 1,000th restaurant, which was where it all started- in Des Plaines, Illinois. McDonald’s began to mature as a successful global business toward the beginning of the 70’s. By 1970, there was at least one McDonald’s restaurant in every U.S. state, and several in different countries around the world. Countries including France, Japan, Germany, and even Guam all had McDonald’s. And in 1972...
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...Human Resources Strategies of McDonald's Recruitment According to (Schuler & Jackson, 2007) we realize that McDonald's is the main family eateries business on the planet. Individuals perform fine when they feel enhanced in their employment and McDonald's has acknowledged it. So McDonald's offer assortment of prizes and welfares that garbs all sort of lives. McDonald's is well known in accomplishing the best working aptitude for their kin; they intend to give client the eateries encounter. HIRE THE SMILE is the arrangement of the McDonald's the point at which they procure the group individuals and this assistance to build up a work constrains of representative with a positive approach and viewpoint, consequently we acquire lively...
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...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...McDonald’s Corporation Marketing Plan Susie Ransom MKT Abstract This paper discusses McDonalds Marketing Plan for the future. Below I will cover the goals and objectives of their current and future coals for the corporation. Topics that will be discussed include the Situation Analysis, customer environment, competition, economic growth and stability, political trends, technological advancements, sociocultural trends, marketing goals and objectives, marketing strategy, marketing implementation and finally the timeline in which it will take McDonalds to implement these goals. Executive Summary McDonalds is known as the world number one selling Fast Food Company. They serve their famous burgers and fries in over one hundred countries around the world. While the majority of their restaurants are stand alone, they also have many franchises that are owned by everyday people like me and you. Their franchises have been their ticket to success; they are the top in the fast food industry because they stay unified in quality and marketing aspects. No matter which type of restaurant, whether corporate or franchised owned. Although, McDonalds are number one in the industry, in order to stay in their position they need to increase sales through expanding into new markets. They have been successful in the past in China and other markets. One of their strengths lies in their versatility to adapt to the culture of foreign markets. By serving traditional cuisine along...
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...Gitlin MGMT 3800 Business Policy and Strategy Lowell Miller April 14, 2016 Kiara Gitlin Strategic Case Strategic Case I. Core Problem/Issue McDonald’s current challenges consist of many things including their menu, product quality, appealing to millennials, and labor concerns. The new president and CEO, Steve Easterbrook, came at a time when the corporate giant was on its knees in desperate need of way to get back up. One of bigger issues is product quality because it relates to getting the younger customer as well as how the company is perceived worldwide. McDonald’s is one the top 10 biggest brands according to Forbes and Easterbrook desperately wanted to improve public perceptions of the McDonald’s brand. McDonald’s wants to position themselves as a modern, progressive “healthy” burger company in a highly competitive market. Their size made them a convenient target, and more than a decade of negative press including the 2001 book “Fast Food Nation,” the 2004 documentary “Supersize Me,” and Jamie Kennedy’s 2012 “pink slime” exposé had taken its toll. In July 2014, the Big Mac earned the dubious distinction of being America’s worst hamburger, placing last out of 21 in a study by Consumer Reports. McDonald’s also ranked lowest among peers in the 2015 American Customer Satisfaction Index. Fast food restaurants overall dropped 3.8 percent, but McDonald’s fell by 6 percent from 2014, holding firm in the last spot. As the baby boomers get older, the millennials...
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...McDonalds Case Overview: McDonalds have dominated the fast food world for years since their humble beginnings. Over the years they have proved the test of time and been the number one fast food restaurant in sales. Through dynamic market expansion, new products, and special promotional strategies they have been able to take over the world of fast food. McDonald’s is a completely global company that has been effective in catering to each need of a country they enter. In 1993 they opened a McCafe which is a coffee house inspired McDonalds in Australia and has grown to more than 300 units in 17 countries. They have brought the idea to America in hopes that I will change any negative image that consumers already have against them. McDonald’s estimates that the new concept of the McCafe will boost total sales by 15 percent. Here in the United States of America you can find a store in every city and almost every other block. Since 2001 there are over 30,000 McDonalds locations worldwide. The company also encourages entrepreneurship by having corporately owned and franchised McDonalds. Those who want to franchise have to attend McDonald’s Hamburger University and learn how to run a McDonalds effectively. This has allowed the widespread of McDonalds around the world. Some of their major competitors are Burger King, Wendy’s, and Hardees. All of these companies also specialize in hamburger fast food restaurants. Both Burger King and Wendy’s have had small gains in market share while...
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...Case Analysis Project, McDonald’s Corp, Introduction McDonald’s Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company was founded by brothers Richard and Maurice McDonald when they opened their first restaurant in San Bernadino California in 1948. At the time, McDonald’s core business was inexpensive and fast food, burgers, fries and shakes. The present corporation dates its founding to the opening of a franchised restaurant by businessman Ray Kroc, in Des Plaines, Illinois, on April 15, 1955, the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion, and the company became listed on the public stock markets in 1965. Today McDonald’s has grown to become is the world's largest chain of hamburger fast food restaurants, serving more than 70 million customers daily in 119 countries across the globe. As of December 31, 2013, the company operated 35,429 restaurants, including 28,691 franchised and 6,738 company-operated restaurants. It ranks 111 in Fortunes top 500 companies, with revenues of usd$28.1B at the end of calendar year 2013. Problem Statement McDonald’s problems started in the 1990s as a result of rapid global expansion at the expense of service, cleanness, and quality. Solving for cleaning up stores and improving service were short term fixes. CEO Skinner realized...
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...McDonald’s Corporation Overview As the world’s largest and most devoted restaurant chain, McDonalds has become a model of superior and dedicated operations in the franchisee industries. “McDonald’s restaurants started in 1948 with two brothers Marc and Dick McDonald in San Bernardino, CA it was the first drive- in for the franchisee. Later in the business they hired Ray Korc to become the franchisee agent and with his help McDonalds became a franchisee known in every household. Today, the McDonalds organization is a world-wide franchisee that operates in 120 countries. McDonalds is defined as the organization with a worldwide system to create menus for all cultures. The franchisee operates under a system that prepares, assembles and packages quickly prepared foods that sold at a moderate price. “This system McDonald’s created is the largest fast-food system in the world the company has pioneered food and quality specifications (HRM pg.625).” With McDonalds serving countries across the world for decades and in to the New Millennium revenue reached 22.8 billion in 2007. Financial Information in August of 2014 McDonalds has faced a crisis with shrinking sales “In 2013, McDonald’s reported a decline in U.S. “sales and a big drop off in customer traffic, breaking a 10-year streak of gains in a market that generates 30% of sales.” McDonald’s restaurants are seeing a decrease in sales this has to do with the economy customers are looking for lower prices on the menus. The 2013...
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