Premium Essay

Mcdonalds Case Analysis

In:

Submitted By cstevens24
Words 6935
Pages 28
McDonalds Case Analysis
Chandra Stevens
Manda Roth
Erica Jones Kaitlin Vincent Carole Hockeborn
Ferris State University

Table of Contents Abstract 4 Introduction 5 Situational Analysis 7 Demographics 7 Socio-Cultural 7 Political-Legal 8 Technology/Industrial 8 Economic 9 Global 9 S.W.O.T. Analysis 10 Strengths 11 Weaknesses 12 Opportunities 12 Threats 14 T.O.W.S. Analysis 15 External Strengths/Internal Opportunities 16 External Weaknesses/Internal Opportunities 16 External Strengths/Internal Threats 16 External Weaknesses/Internal Threats 16 Porter’s Five Forces 17 Threat of New Entrants 18 Bargaining Power of Suppliers 18 Bargaining Power of Buyers 19 Rivalry Amongst Existing Firms 19 Threat of Substitute Products or Services 19 Financial Ratios 20 Liquidity Ratio: Cash Ratio 21 Debt Management Ratio: Total debt Ratio 22 Profitability Ratio: Profit Margin 22 Balanced Scorecard 23 Balanced Scorecard Diagram 27 Strategy Formulation 28 Plan of Action and Recommendation 31 Highlights From This Year 31 Budget and Time Line Expectations Summary 31 Citations 33

Abstract This report reviews the McDonald’s corporation profile to include; an introduction to corporate history a time menu and current franchise information. The strategic Profile will provide a complete analysis of economic, socio-cultural, technology and global synopsis of the industry. Followed by the Porters five forces analysis, and financial ratios that provide a logical rational of the company. Also included in this report is an S.W.O.T. and T.O.W.S analysis a balanced scorecard strategy diagramming maps and appropriate initiatives with associated measures and targets. The strategy formulation followed by a plan of action will conclude

Similar Documents

Premium Essay

Mcdonald Case Analysis

...In Partial Fulfillment of the Requirements In Total Quality Management (TQM) EXECUTIVE SUMMARY McDonald’s, the long-time leader in the fast-food wars, faced a crossroads in the early 1990s. Domestically, sales and revenues were flattening as competitors encroached on its domain. In addition to its traditional rivals—Burger King, Wendy’s, and Taco Bell—the firm encountered new challenges. Sonic and Rally’s competed using a back-to-basics approach of quickly serving up burgers, just burgers, for time-pressed consumers. On the higher end, Olive Garden and Chili’s had become potent competitors in the quick service field, taking dollars away from McDonald’s, which was firmly entrenched in the fast-food arena and hadn’t done anything with its dinner menus to accommodate families looking for a more upscale dining experience.   While these competitive wars were being fought, McDonald’s was gathering flak from environmentalists who decried all the litter and solid waste its restaurants generated each day. To counter some of the criticism, McDonald’s partnered with the Environmental Defense Fund (EDF) to explore new ways to make its operations more friendly to the environment. In the late 1980s, McDonald’s began recognizing the importance of maintaining an ecologically correct posture with the public, which was becoming more concerned about the environment. For example, in 1989, 53% of respondents in one survey revealed that they had not bought a product because they didn’t know...

Words: 524 - Pages: 3

Premium Essay

Mcdonalds Case Analysis

...ethics, and the steps and initiatives McDonald’s takes in regards to consumer satisfaction. Lastly, the paper concludes that the strategy used by McDonald’s is a cost leadership approach, and provides methods in which the business strategy could be used to capitalize on the strengths and opportunities and eliminate the weaknesses and threats. McDonald’s- The Corporation McDonald's is the globes largest chain of fast-food restaurants, serving more than 58 million customers daily in over 119 countries. It first opened its doors in 1940 by brothers Richard and Maurice McDonald in San Bernardino, California, and their creation of the "Speedee Service System" in 1948 created the blueprint of the present day fast-food restaurant. In 1955, McDonald's Corporation credits its true founding to the opening and operations of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois. Kroc later purchased the McDonald brothers' equity in the company and led its global expansion with the Franchise Model. McDonald’s has expanded its operations to become a worldwide chain of over 35,000 restaurants, employing 1.7 million people around the world. With expansion, the company has become a symbol of globalization and not only the spread of the burger culture, but of the American culture. Its prominence has also brought significant...

Words: 2183 - Pages: 9

Premium Essay

Mcdonalds Case Analysis

...service, cleaning up and modernizing the physical buildings, and changing the menu to the changing tastes of their customers. McDonald’s also introduced their slogan “I’m Loving It” to reach out to the younger customers. The advertising is very much targeted toward teens and young adults. (Dess, Case 40) WEAKNESSES: The first weakness was the changing of three different CEOs in only one year. These were unexpected changes, but all had to be dealt with by the newest CEO Jim Skinner, and directly after McDonald’s first ever quarterly loss in 2003. The second weakness is an issue with trying to find new and exciting things to put on the menu to bring in new customers. Many of today’s fast-food customers are making different kinds of foods, like Chinese and Mexican food, normal to the everyday menu. OPPORTUNITIES: McDonalds has many opportunities to change its look, menu, and customer service. McDonald’s started building newer building incorporating the arch, along with more modern furnishings. The menu has changed by adding more breakfast items and introducing the McCafe in certain areas. It has also added more health concerned items such as the Asian salad and Premium white chicken. (Dess, Case 40) THREATS: McDonald’s biggest threat is competition. Wherever there is a McDonald’s, there are at least 3 other fast-food restaurants near it. It constantly has to advertise what makes them unique to other fast-food places, which means there always has to be...

Words: 386 - Pages: 2

Free Essay

Case Analysis Mcdonalds

...cannibalization in existing franchises, but this was resolved by focusing more on international expansion. 2. New entrants and existing competitors. 3. Government regulations. IV. ASSUMPTIONS No assumptions. V. ALTERNATIVE COURSES OF ACTION (ACA) 1. Focus on its international expansion. This alternative will focus on its strength of expansion. There will be a continuous growth for McDonald’s if they will continue to expand, that is, acquiring new locations, getting more franchisee, and spreading more stores worldwide. 2. Products and services innovation. Because of the continuous changes in customer needs and wants, new and existing products will be developed to continue satisfying clients. VI. ANALYSIS ACA 1 – international expansion...

Words: 717 - Pages: 3

Free Essay

Case Analysis Mcdonalds

...MCDONALD’S Case Study Submitted by: Abigael A. Galvez Patricia Hannah Nicole S. Facto Submitted to: Prof. Marilou B. Lleno September 3, 2014 Brief History of Mcdonald’s In 1940 Dick and Mac McDonald open McDonald’s Bar-B-Q restaurant on Fourteenth and E streets in San Bernardino, California. It is a typical drive-in featuring a large menu and car hop service. In 1948 they shut down their restaurant for three months for alternations. In December it reopens as a self-service drive-in restaurant. The menu is reduced to nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips and a slice of pie. The staple of the menu is the 15 cent hamburger. In 1949 French Fries replace potato chips on the McDonald’s menu. Triple Thick Milkshakes also make their debut. In 1954 Multimixer sales Ray Kroc visits McDonald’s in San Bernardino intending to sell the brothers more Multimixers. The 52 year old Kroc is fascinated by the operation. He learns from the brothers that they are looking for a nationwide franchising agent. He has an epiphany and is determined that his future would be in hamburgers. In 1955 Kroc opens his first McDonald’s in Des Plaines, Illinois on April 15. The attention getting red and white tiled building with the Golden Arches was designed by architect Stanley Meston in 1953. First day sales are $366.12. By 1965 there would be aver 700 McDonald’s restaurants throughout the United States. In 1956 Ray Kroc hires future McDonald’s Chairman, Fred Turner to...

Words: 939 - Pages: 4

Premium Essay

Mcdonalds and Kfc Case Analysis

...Janay Booker BUAD 4020 November 2, 2013 McDonald’s and KFC Case Analysis Brief Summary In 2008 McDonald’s and KFC were the largest quick service restaurants (QSR) in the world, with 31,999 and 15,580 outlets respectively. Both chains were renowned for their broad spectrum of consumers on a global basis. McDonald’s spearheaded global expansion with its first overseas outlet in Canada in 1967 and entering Japan in 1971. McDonald’s outlets experienced tremendous success in Japan with record breaking daily sales and speed of expansion in the initial stage. KFC similarly started global expansion early with its first overseas outlet in England in 1964 and entered Japan in 1970. However KFC was not as successful as McDonald’s and did not experience profit until six years after entry. KFC opened outlets in Hong Kong in 1973 which all were closed within two years. The company would eventually gain the confidence of Hong Kong customers ten years after its entry. There was a completely different experience in China for KFC. They were recognized as the leader in foreign QSR as well as a significant player in the Chinese restaurant industry as a whole, contributing 1% in the country’s total food and beverage revenues in 2005. In 2005 KFC outlets in China recorded an average on 1.2 million in annual sales per store, compared to just 900,000 for similar stores in the US. In contrast McDonald’s presence in China was less than half of KFC’s with a significantly lower estimated profit margin...

Words: 1404 - Pages: 6

Premium Essay

Xbox

...even if you do not have the formal authority to tell someone what to do? This course attempts to add to your understanding of life in complex organizations by covering topics including, leveraging culture to reach strategic objectives, motivating and rewarding desired behavior, designing organizations to fit with strategic objectives, selecting the appropriate leadership style to motivate others to perform, and using power and influence effectively. My approach will be managerial, focusing on the processes necessary to organize, motivate, and lead people engaged in collective activities. The emphasis will be on the development of concepts and strategies that may help you to be an effective manager. To accomplish these ends, readings, cases, and videos will be used to introduce you to frameworks from the social sciences that are useful for understanding organizational...

Words: 11308 - Pages: 46

Premium Essay

Ob, Arctic Minings Consultants, Case Study

...ARCTIC MINING CONSULTANTS Case Synopsis Arctic Mining Consultants is a mining company that deals with mineral exploration. In this case study, the project given is staking 15 claims in Eagle Lake, Alaska. The project Manager was Tom Parker, who has a wide experience and specialized knowledge in all nontechnical aspects of mineral exploration. He is a geological field technician and field coordinator for Arctic Mining Consultants. He assigned his previous field assistants John Talbot, Greg Boyce and Brian Millar to help him complete the project. The job required them to stake at least 7 lengths each day in order to be completed on time. However, the whole team has became very tense and agitated, especially Tom Parker, as the deadline was just around the corner and there’s still many to be finished within the limited time. The problem became worse with the way Tom managed and treated his team. The only motivation to the team was the $300 bonuses promised by the company when the job is done on time, otherwise, they might wished to give up already. This happened because working as a field assistant and in long-working hours only giving them low wages, which is considered unreasonable compared to what they have to do. During the eight hard days, everything had actually proved the strengths and weaknesses of each of the team members, including Tom. Case analysis symptoms 1) What symptom(s) exist in this case to suggest that something has gone wrong? The symptom(s) to suggest...

Words: 2346 - Pages: 10

Premium Essay

Imp Case Analysis

...1. Would a TNA be needed in this situation? Why or why not? If yes, who would you want to talk to? Training Needs Analysis is a formal process required for the purpose of identifying the training gap that is in existence and its related training need. Considering the IMP case analysis, training needs analysis is required since there are different sectors within the organization which require an individual to possess the necessary skills to perform the expected work within that department. In addition, training is also offered to people working within the ‘different sectors’ in that organization despite the fact that equality is not displayed while offering that form of training. Talking to the HR manager at North America International Airport’s about training needs analysis is a good idea since the HR manager is the one with the authority over the individual’s directly concerned with training such as Mr. Pettipas. 2. Based on the case as presented above, what KSAs need to be trained? From the case analysis at IMP, it is evident that there are several knowledge, skills and abilities that have to be addressed during training to all the employees within those departments. Leadership skills need to be addressed since the HR was not able to assist Ms. Dillman in her case which portrayed that he lacked the leadership skills. Technician skills required for the metal sheet shop needs to be trained since Ms. Dillman lacked knowledge on the requirement of a metal sheet shop technician...

Words: 733 - Pages: 3

Premium Essay

Craddock Cup

...✓ Materials Needed Performance Measurement & Control Systems for Implementing Strategy: Text and Cases, by Simons, Robert. Prentice Hall, ISBN #0-13-234006-2 Cases in Management Accounting & Control Systems 4th Edition, by Allen, Brownlee, Haskins and Lynch, Pearson-Prentice Hall, ISBN #0-13-570425-1 Freakonomics: A Rouge Economist Explores the Hidden Side of Everything, by Steven D. Levitt and Stephen J. Dubner, Harper Collins, ISBN#0-06-073132-X ✓ University Communication with Students All email communication from the University is sent to the student’s wsu.edu address. Please be sure that you have set up the link to forward your personal email address (aol, hotmail, etc.) or you will miss announcements and information that is very important to you. This is the email I use to contact you regarding class matters. If you change your email address, be sure to update again. ✓ Catalog Course Description with Prerequisitites 3credits: Managerial evaluation of budgeting, cost accounting, and financial analysis techniques; their utilization in control of operations. (pre-requisite acctg 550 or equivalent). Please note that pre-requisites are strictly enforced and that students will be disenrolled if they do not have course pre-requisites). ✓ Instructor Course Objectives Knowledge and Skill Expectations: Students should have the knowledge and skill level to record economic events, read and analyze financial information through the topic areas covered...

Words: 3504 - Pages: 15

Free Essay

Ritz-Carlton Case

...Title Page Course – MKTG 6300 Fall 2007 Service Marketing Student Name: Maria E. Kobayashi Individual Case Analysis Individual Case Summary: Ritz – Carlton Hotels 1. Key issues Ritz – Carlton (RC) wants to be perceived as the premier luxury hotel, with differentiated and personalized service, high levels of guest retention and guest recovery rates, and low levels of service defect incidence. The group wants to achieve this goal by optimizing the balance between human relationships and the systems. Nevertheless, the systems and databases RC had in place at the time of the case do not deliver the level of information needed to reach their objective. Moreover, they do not allow for smooth interaction with the RC team, who are able to gather highly valuable information regarding customers’ preferences, dislikes, or potential problems experimented by the guests. 2. Recommendations First of all, the Encore system should be modified to include real-time updating of customers’ preferences and of potential problems the guests might have experimented during their stay. This should be standardized across all RC properties. Guest categorization should also be standardized and input into the system. This system should be available in a user-friendly way to any member of the RC staff in convenient locations. It should also include a common defect reporting module with the functionality to cross data between different locations. After all these processes...

Words: 382 - Pages: 2

Free Essay

Moto Case Analysis

...In the case, a man who goes by the name Moto is sent to Chicago to do business. Here his “responsibility was to hire a contracting company and check on the pricing details.” He works for an auto parts supplier, KKD, who had been researching American contracting companies for the past year and a half. They decided to use Allmack due to it having the best track record. Moto went to meet with a man who worked for the company and was shocked by his rudeness and unprofessional manner. He wasn’t prepared for this and had no idea what to think of it. Also, he was not so used to moving so quickly and rushing around. In America, people are very fast passed and try to get things done as quickly as possible. He presented Mr. Crowell with a gift and he just stated that his daughter would love it. When Crowell said this, Moto should have gone in to a discussion explaining what the dolls meant and the importance of them. This way he could have shown Crowell the value in the gift he was giving him and he would have taken back the comment about his daughter loving them. Throughout the case there are many differences that Moto is shocked by. One of these is the fact that he is used to being called by his last name. He was surprised when Crowell asked for his first name and began calling him by that instead. Also, he wanted proof that the Allmack group was actually as good as they say they are. He asked for records and one of the workers got offended and was wondering why he did not trust them...

Words: 415 - Pages: 2

Free Essay

469362181

...to time to write a good CAR. So, once you “get” the Big Picture of the Case, and recognize the major analysis elements (focal system(s), main problem/Alternatives, etc.): o focus on analyzing those Alternatives and coming up with some significant Findings, and especially Recommendations. o As your analysis results “solidify,” focus more and more on Writing a Good CAR and submitting by the Due Date! • Cases can contain more than 1 major “track” for their analysis, allowing for alternative versions of a CAR. So, do NOT simply imitate this Example CAR blindly for its “specific content.” Worse, DO NOT simply copy any of its parts. • Instead, use this Example CAR by way of “Reverse Engineering:” See how its contents arise logically if our Case Analysis Method (Guide) is applied to the Case. This will help you understand how our analysis method works! Then, use the same general analysis method (actually, the Approach) on the Case assigned for your CAR. • Don’t just imitate the pattern of alternative found here! Analyse and find out what alternatives make most sense in the particular Case you are working on. • No Case contains ALL the facts you want to know for its analysis. So, when analyzing Cases, be pragmatic! Do not worry about any facts beyond the Case (unless specifically instructed). Instead, conduct the “best possible” analysis using available Case-facts. • Leave Enough Time to Write a GOOD REPORT based on your...

Words: 1972 - Pages: 8

Free Essay

Power and Influece

...discussing “case” materials in light of theoretical arguments advanced in “readings.” Case materials include standard Harvard Business School cases, book chapters about individuals (Robert Moses and Henry Kissinger), corporations (e.g., Lehman Brothers and Time Warner), and industries (e.g., the auto industry), and in-class videos (e.g., a “Bill Moyer’s Journal” segment on David Rockefeller). COURSE REQUIREMENTS Final course grades will be based on student performance on three written assignments and on student participation in class discussions. Written Assignments. Each student will be expected to submit two individual case analyses that indicate what the student learned from reading and discussing the case in question. The case analyses should be one single spaced typewritten page long and should be submitted the week after the case that they address is discussed in class. Individual case analyses will be graded on a scale from 1-3 and together will comprise 10% of a student’s final grade. Each student should also form a group with three to four other students to complete a case study of a real organization. The research for this case study can be carried out using primary sources (e.g., participation observation and/or interviews) or secondary sources (e.g., books, articles, or prepared cases about a target organization). Thus, group members need not have worked in an organization to use it as the subject of their final case analysis. Other case analysis topics...

Words: 1326 - Pages: 6

Free Essay

Ase Analysis Research – Striving for Best Academic Practice

...ZhiQing | Student ID No.: | 22012511 | Unit Code & Name: | MNG91002 | Campus: | MDIS | Tutor’s Name: | Frankie-Lim | Assignment No: | 1 | Assignment Title: | Case Analysis Research – Striving for Best Academic Practice | Word Count: | 1193 | Due Date: | 21 Apr 2014 | Date submitted: | 20 Apr 2014 | Declaration: I declare that this assignment is my own original work and has not been submitted for assessment elsewhere. I acknowledge and irrevocably agree that the assessor of this assignment may, for the purpose of assessing this assignment: * Reproduce this assignment and provide a copy to another member of faculty for review and comment, including whether the work is an original work; and/or * Provide a copy of this assignment to a plagiarism checking service for review so that it may determine whether the assignment is an original work. The checking service may retain a copy of the assignment on its database for the purpose of future plagiarism checking. I have read and understand the Rules relating to Awards (Rule 3.17) as contained in the University Handbook. I understand the penalties that apply for plagiarism and agree to be bound by these rules. CHEN ZHIQING 20 Apr 2014 Signature (please type) Date Tutor's comments: Paper Title: Case Analysis Research –...

Words: 1822 - Pages: 8