...The McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries.[4][5] Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.[6] A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion.[7] McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing consumer tastes, the company has expanded its menu to include salads, fish, wraps, smoothies, and fruit.[8] Headquarters McDonald's Plaza, located in Oak Brook, Illinois is the headquarters of McDonald's The McDonald's headquarters complex, McDonald's Plaza, is located in Oak Brook, Illinois. It sits on the site of the former headquarters and stabling area of Paul Butler, the founder of Oak Brook.[10] McDonald's moved...
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...EXECUTIVE SUMMARY McDonald’s is a quick service restaurant founded in 1955 by Ray Kroc. From its early days of serving burgers, McDonald’s has grown into a global household brand. McDonald’s now has restaurants in over 100 countries and has become the 9th most powerful global brand according to Interbrand. McDonald’s aims to be “customers’ favorite place and way to eat and drink.” However, as the fast food industry has progressed, McDonald’s has lost its identity as that favorite place and is no longer at the cutting edge of the industry. McDonald’s makes every effort to localize its offerings to the consumer segments it appeals to around the world, catering to local tastes and flavors. The company also tries to segment by income level and cater to consumers on varying budgets with its Dollar Menu, premium items, and extra value meals. McDonald’s does not differentiate itself in any one category of fast food, with competitors dominating in taste in other categories, but it does stand out for its variety and convenience. Due to the fact that McDonald’s does not provide the best fare in any given category, it has relied heavily on positive advertising and messaging that targets emotions. McDonald’s messaging focuses on building the brand and highlighting the emotion of happiness. This can be seen in commercials and the long-time slogan of “I’m Lovin’ It,” for example. In order to understand what the brand truly means to consumers, our group conducted a number...
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...McDonald’s Keanu Gordon-Williams Lujack McReynolds 11/29/2012 Table of Contents Executive Summary LM………………………………………………………………………… 3 Introduction KGW ……………………………………………………………………………….5 External Analysis KGW .…………………………………………………………………………5 General Environment KGW……………………………………………………………... 5 Technological Factors KGW ....…………………………………………………..5 Economic Factors KGW ………………………………………………………… 6 Demographic Factors KGW..……………………………………………………..7 Global Factors KGW ……………………………………………………………. 7 Sociocultural Factors KGW..……………………………………………………..7 Industry Environment KGW .……………………………………………………………. 8 Opportunities KGW..…………………………………………………………….. 8 Threats KGW..…………………………………………………………………… 9 Porter’s Five Forces KGW...………………………………………………………………9 Threats of New Entrants KGW …………………………………………………...9 Bargaining Power of Buyers KGW……………………………………………...10 Bargaining Power of Suppliers KGW……………………………………………10 Threat of Substitutes KGW………………………………………………………10 Internal Rivalry KGW……………………………………………………………11 Internal Analysis LM…………………………………………………………………………….11 Core Competencies and Competitive Advantages LM…………………………………..11 Sustainable Competitive Advantages LM……………………………………………… 13 Organizational Culture and Leadership LM …………………………………………….14 Strategic Alternatives KGW & LM ……………………………………………………………..20 Business Strategy LM …………………………………………………………………...20 Corporate Strategy KGW………………………………………………………………. 21 Global Strategy KGW………………………………………………………………….. 22 ...
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...SWOT ANALYSIS S – Strengths or Core Competencies * Strong global presence, considered a market leader in all markets. McDonald’s is a global company that “operates more than 23,500 restaurants in 109 countries.”1 The company’s strong global presence is an significant advantage for them, because it gives them the ability to “play” with economic fluctuations of each country. By being spread out in different regions, the company is able to contest the economic fluctuations which are localized by country. McDonald’s has an advantage as it can operate effectively even in an economic downturn as at such times people seek out comfort food more. * Relies upon economies of scale for cost reduction. Any corporation registered and operating in more than one country at a time, usually with its headquarters in a single country. A firm's advantages in establishing itself multinationally include both vertical and horizontal economies of scale (reductions in cost that result from an expanded level of output). Critics usually regard the multinational corporation as destructive of local economies abroad and as prone to monopolistic practices * Very loyal employees and management monopolistic practices The company has known to have very loyal employees and management. The twenty of its fifty top employees started as low level restaurant employees at McDonald’s. The caring attitude of the company towards its employees is also shown by the fact that around its 67,000...
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...Perspective View of PESTEL Analysis for McDonald’s Chummar Pudussery (011869) Copy 2 Word Count: 2126 TABLE OF CONTENT EXECUTIVE SUMMARY .........………………………………………………………3 1.0 INTRODUCTION 1.1 The History of McDonalds ………………………...…………….……4 1.2 Industry Overview ………………………………………………….....4 1.3 The challenges…………………………………………………...….…5-6 2.0 PESTEL Analysis 2.1 Political ………………………………………………....………...…. 7 2.2 Economical ……………………………………………………….…...7 2.3 Social………………………………………………………….....…….8 2.4 Technological……………………………………………….……..…..8 2.5 Environmental……………………………………………..…….….…9 2.6 Law………………………………………………………..…….…..…9 3.0 Recommendations………………………………………………….…….…..10-11 4.0 Conclusion ……………………………………………………………...……12 5.0 Bibliography ……………………………………………………………..…..13-14 Executive Summary McDonald’s considered one of the pioneers in the fast food industry, is clearly got many aspects to discuss about which is related to functioning of their business. In this study, PESTEL Analysis was conducted to understand various factors surrounding the environment. The factors are namely Political, Economic, Social, Technology, Environmental and Law. This paper is organized as follows: In the first section, will give an introduction to the History of McDonald’s, Industry Overview and The challenges faced by the industry. In the second section, PESTEL Analysis is used to study some of the various factors that have been happening around McDonald’s. Here we get to see factors...
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...Individual Assignment Analysis McDonald’s Franchise in Viet Nam Name: Le Quang Hieu ID student: BA60114 Class: BA0662 Lecturer: Nguyen Quoc Cuong Subject: Entrepreneurial Small Business Individual Assignment Table of contents I. McDonald’s background 1. History 2. Mission and Vision 3. Business objective II. SWOT analysis III. Advantage and disadvantage of MacDonald franchise IV. Investment decision V. Summary VI. References FPT University – BA0662 Page 1 Individual Assignment I. Background of MacDonald 1.1. History McDonalds’s is a business corporation system of fast food restaurants with approximately 31,000 restaurants in 119 countries to serve 43 million passengers a day under its own brand. The McDonalds’s restaurant concept was introduced in San Bernardino, California by Dick and Mac McDonald’s in May 15, 1940. It was modified and expanded by their business partner, Ray Kroc, of Oak Park, Illinois, who later bought out the business interests of the McDonald’s brothers in the concept and went on to found McDonalds’s Corporation in April, 15, 1955. 1.2. Mission and Vision Mission McDonalds’s brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience - People, Products, Place, Price. We are committed to improving our operations and enhancing our customers' experience. Vision...
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...and also learned some facts about the video. In this paper I will be talking a little about what the video was about. It was about a guy Morgan started this diet and had to eat Mcdonald’s three times a day for one month. I will also be talking about how I felt watching this video, and what I would do if I had to do this dieting thing by eating Mcdonald’s for a whole month. First I will be talking about what happened in this video. During this video there was this guy named Morgan. He was told that he had to join this diet. The diet consisted of eating Mcdonald’s three times a day for one whole month. The first 3 days of Morgan’s diet he was having a lot of trouble...
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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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...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 Hardees...
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...McDonald’s Marketing Analysis I. Introduction As an international food giant McDonald's, founded in the mid-1950s the United States because of the time needed, founder of the American working class to seize the opportunity of rapid economic development under the convenient diet, targeting market segments and demand characteristics, the product of precise positioning and quick success. Today McDonald's has grown into the world's largest restaurant group in 109 countries opened a 25,000 stores, annual turnover of over 3.4 billion U.S. dollars. II. Analysis McDonald's can be seen from the development processing, McDonald's grasp of market segmentation for positioning is very accurate, which is one important reason for the success of McDonald's. Consumer market segments based primarily geographical factors, human factors, psychological factors, buy behavioral factors, each consumer group is a market segment, each segment is made with the same needs and desires of consumers buying group composed of McDonald's is based on geographic, demographic and psychological factors were accurate market subdivision, and implement the appropriate strategy to achieve its marketing goals. On geographical factors, different regions have different overall eating habits and cultural backgrounds. McDonald had adequate market research, a full analysis of regional differences. Things as who the U.S. Department of coffee taste is not the same, we must the market segments for different geographic...
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...Business Strategy Analysis: McDonald’s Corporation is the world’s largest fast-food chain in the restaurant industry, serving on average 69 million customers a day. Their stores are corporate or franchised owned, with franchising being highly beneficial to their success by producing 32% of their total revenue. McDonald’s is in a highly competitive industry with market saturation because of low barriers to enter. The industry competes on price, quality, and service. McDonald’s faces competition with full-service restaurants and fast-food restaurants in the area. Their main competitors are Burger King, YUM! Brands, and Wendy’s International. The industry has faced scrutiny on the quality of their products because of a more health concise society. McDonald’s strategy for success is based off of cost efficiency, product development, and marketing and promotions. These factors help form the strong brand that McDonald’s is today. Since their establishment with Ray Kroc, they have focused on driving their success from the 3-legged stool principal representing: McDonald’s employees, the owner/operators, and their suppliers. The stool needs all three to have a good balance in order to function, without either one of the legs success cannot be achieved. All three of them work together to create new products, to reduce costs, and to achieve outstanding customer service. There is commitment in helping all three legs of the stool to succeed. The suppliers play a key role by providing high...
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...Financial Analysis of the McDonalds Company MCD 2111 McDonalds Dr. Oak Brook, Illinois 60523 630-623-3300 Janell Coulter BUSN 5200 Company Overview: McDonald’s is the largest chain of hamburger fast food restaurants and services 68 million customers daily in 119 countries across 35,000 outlets. Company history: The company started as a bar-b-q restaurant by two brothers, Dick and Mac McDonald in 1940. In 1948, the brothers founded the McDonald’s restaurant. The menu introduced nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. The brothers developed a partnership with sales man, Ray Kroc in 1955 as a franchise agent for the McDonald’s restaurant. Ray Kroc founded the McDonald’s Corporation. Organization: Other than the many McDonald’s franchises being a key to the company’s success, McDonald’s utilizes what it calls a “system.” The system has allowed the company to remain proactive in identifying and implementing the many needs of its customers as well as the needs of the restaurants and the local communities it serves. Nearly fifty percent of McDonald’s corporate managers started as crewmembers as well as 60% of the owner’s operators did too. McDonald’s strives on being a great place to work with their efforts to offer workers flexibility, diversity and achievement. Many crewmembers are able to climb the career ladder towards an opportunity to invest somehow into the corporation. McDonald’s Board...
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...McDonald’s Corporation Case Analysis McDonald’s has made great strides in the sustainability of its supply chain over the past few decades. From a moratorium on soya coming from farms where Amazon rain forests have been destroyed, to developing sustainable fishery guidelines to manage fish quality and quantity, McDonald’s has taken great efforts to “do the right thing” [1]. This commitment to environmental sustainability has impacted how they source from suppliers and manage supply chain management initiatives. With all that McDonald’s has done, there is still room for improvement. Engagement in sustainability efforts with suppliers has generally resulted from a call for change from activists who were negatively impacting brand trust. Acting in the best interest of society by providing healthy food alternatives to well-informed consumers also play a vital role in how the sustainable supply chain is managed. As such, the core problem facing McDonald’s green supply chain management infrastructure is that it is still reactive in nature and will always require a trade-off between societal benefit and cost minimization. One alternative to consider is for McDonald’s to become more proactive at anticipating and managing emerging issues prior to a large-scale publicity and exposure. By doing so, McDonald’s can approach NGOs and interest groups with emergent problems, using the collaborative expertise to resolve potential hotspots before they erupt. This approach simultaneously...
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...McDonalds SWOT Analysis Case Study Report McDonald’s BACKGROUND: Brothers Richard and Maurice McDonald founders of McDonald’s Corporation grew from a single drive-in restaurant in San Bernardino, California in 1948 to the largest food service organization in the world. In 1955 Ray Kroc opened firs McDonald’s in Des Plaines, Illinois and became exclusive franchising agent for the company. By 1991 McDonald’s owned $13 billion of fast-food industry, operating 12,400 restaurants in 59 countries (Ezine). The company recorded revenues of $21,586 million during the fiscal year ended December 2006 and increase of 8.8% over 2005 (Yahoo Finance, 2007). SWOT ANALYSIS: Strengths: The greatest strengths of McDonald was introducing people to the fast food and creating an image in people minds of fast food culture. McDonalds has over 30,000 branches in 120 countries and 80% of its revenues is derives from eight countries like Canada, Brazil, Germany, France, Japan, UK, Australia and US (Ezine). The biggest strength that the case study focused on was strategy – market leadership and buyer supplier relations. Shamsie stated that “the bigger success came in the form of McGriddles breakfast sandwich which was lunched nationwide in June 2003” (Dess, Lumpkin & Eisner, 2007, p. 692).New breakfast addition gave the firm comparative advantage in the market place and brought about 1 million new customers each day. Weaknesses: The same factors which are consider strengths are also weakness...
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...MC DONALDS CASE STUDY ANALYSIS OF THE COMPANY McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s.McDonald's has invested $1 billion to redesign nearly all of the 14,000 restaurants by 2015. SWOT analysis of McDonald's Strengths 1. Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34...
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