...McDonald's Faces 'Millennial' Challenge by: Julie Jargon Aug 25, 2014 TOPICS: Change; Competitive Positioning SUMMARY: McDonald's is losing its luster with younger consumers. Customers in their 20s and 30s are defecting to competitors, in particular so-called fast-casual restaurants like Chipotle Mexican Grill and gourmet-burger chain Five Guys. Younger diners are seeking out fresher, healthier food and chains that offer customizable menu options for little more than the price of a combo meal. TERM PAPER APPLICATION: In analyzing the predicament, it is vital to cite facts and numbers, not just subjective impressions. To start with, Consumer Reports magazine said that in a survey of more than 32,000 subscribers, readers rated McDonald's burgers as the worst-tasting of 20 rival burger chains. A decade ago, there were 9,000 fast-casual restaurants in the US, versus nearly 14,000 McDonald's. Now, fast-casual restaurants number more than 21,000, while McDonald's US restaurant count has risen only slightly. QUESTIONS: 1. Why is it that you are probably not eating at McDonald's? How would you define the 'Millennial' Challenge? 2. For your generation, what is the main problem with McDonald's? Are you tired of hamburgers generally? Or are you just tired of hamburgers at McDonald's? 3. Beyond just your own impression, what FACTS are cited in the article about the competitive position of McDonald's? Which of these facts does McDonald's most need to focus on? 4. In terms...
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... | |McDonald's 24/7 | |By focusing on the hours between traditional mealtimes, the fast-food giant is sizzling | It is 3:36 a.m. Thursday at McDonald's in Garner, N.C., a bedroom community just beyond the city limits of Raleigh. Although the town's taverns closed more than an hour ago, the last clubgoers are straggling home. Their cars barrel by ones driven by waitresses, commercial cleaners, musicians, nurses, and computer analysts heading home from work. The McDonald's sign, posted high along a commercial strip of big-box stores and chain restaurants, is one of the few still glowing. Inside the McDonald's kitchen, Julia Diaz is mixing buttermilk biscuit dough by hand in a giant stainless steel bowl, while Silvia Roldan is grilling sausage patties and eggs for breakfast, which begins in 24 minutes. Outside, at the drive-through window, D.C. Chavis is picking up a Premium Crispy Chicken Ranch BLT sandwich and a large order of fries. Chavis, 24, has just clocked out after 12 hours at a nearby food warehouse. He used to pick up an after-work snack at an all-night convenience store or diner. Now he swings by McDonald's at least five times a week for the premium sandwich combo meal or, if it's later, a McGriddle and a side of hash browns. The food is a lot better at McDonald's, he says, adding...
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...Introduction McDonald's is the world's driving worldwide nourishment administration retailer with more than 36,000 areas serving around 69 million clients in more than 119 nations every day. More than 80% of McDonald's eateries worldwide are claimed and worked by free nearby representatives and ladies. The business was overseen as particular geographic fragments through June 30, 2015, that incorporated the U.S., Europe, Asia/Pacific, Center East and Africa (APMEA) and Different Nations and Corporate (OCC) including Canada, Latin America and Corporate. Starting July 1, 2015, McDonald's begun working under another authoritative structure with the accompanying four sections that join markets with comparable attributes, difficulties, and open doors for development. The business was overseen as particular geographic sections through June 30, 2015, that incorporated the U.S., Europe, Asia/Pacific, Center East and Africa (APMEA) and Different Nations and Corporate (OCC) including Canada, Latin America and Corporate. High Development Markets - markets with generally higher eatery extension and franchising potential including China, Italy, Poland, Russia, Korea, Spain, Switzerland and the Netherlands. Together these business sectors represented around 10% of the Organization's 2014 working pay. The McDonald's Administration Advancement Educational modules take newcomers from student director to Eatery Administrator. This comprises of at work preparing and opens learning advancement modules...
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...Organisation Definition of Organisation “A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assign roles, responsibilities; and authority to carry out different task.” (Sources: http://www.businessdictionary.com/definition/organization.html) From that statement, my understanding about organisation is a group of people that is specifically organised within their area and cooperates with each other within the group or usually define as a group of people working together to achieve common goal. Diagram 1.0: Example of chart of McDonald’s organisation As an example, in McDonald’s restaurant, there would be restaurant manager that monitor the restaurant with the help of first assistant manager. Then there would be second assistant manager that trains the trainee manager that comes from shift running floor manager. Before that, floor manager also has to train the trainee floor manager that comes from training squad. The crew member that works to serve the customer also has to train the trainee worker. Types of Organisation Diagram 1.1: Example of Types of Organisation There are 3 types of organisation that I am going to explain which are public sector organisations, private sector organisations and voluntary sector organisations. Firstly, public sector organisations are for the people owned...
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...new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos and recorded music Over the years a lot of food chains have entered the business. 3)mcdonalds: short discription According to this Google map, there are close to 50,000 fast food chains across the United States. The most widely recognized brand in the world happens to be McDonalds, serving around 64 million customers daily in 119 countries. McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people. To make sure their progress is kept alive, they manage to open five new restaurants every single day. An average of four out of the five are overseas. In other words, America imprints four influencing footprints a day throughout different parts of the world. Ninety-six percent of kids in school could recognize an image of Ronald McDonald, the face of McDonalds. The only recognizable figure that ranked higher was Santa Claus. To top it off, Americans spend nearly $100 billion on fast food every year. [pic] McDonald's primarily sells hamburgers, cheeseburgers, chicken, french fries, breakfast items, soft drinks, shakes and desserts. In response to changing...
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...McDonald’s Value Chain Analysis Jeovani Zamarripa, Alicia Wylie, y Jason Flores, Conor Mullarkey Mission Statement “McDonald's brand mission is to "be McDonald s 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 on the five basics of an t i th fi b i f exceptional customer experience – People, Products Place, People Products, Place Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.” Company History McDonald s McDonald’s Bar-B-Que (1940) • World’s 1st McDonald’s • Founded by Dick and Mac McDonald • San Bernadino, CA • D i i & car hop service Drive-in h i McDonald’s (1948) •N Name F Formulates l • Menu develops • 15 Cent hamburger Company Info • Corporate Headquarters: p q – McDonald’s Corporation 2111 McDonald's Dr Oak Brook, IL 60523 • Employees: – Approximately 400,000 McDonald s employees globally McDonald’s – 1.6 million people globally are employed through McDonald’s restaurants and their franchises • Restaurants: – 32,000 world-wide, 118 countries 2009 Revenue & U.S. Stocks k (US only) • NYSE: MCD – Current Price: $64.74 – Change: $0.26 + g (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 Year Net Income Growth 5.5% Y N tI G th 5 5% Leadership James Skinner Vice Chairman, CEO Left to Right: Jose...
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...fast food restaurant that primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and deserts. Many people just don’t have the time to sit at a restaurant for hours and order food that will cost them a fortune. Everything in New York City cost money and is expensive, opening a McDonalds restaurant in Times Square will give many customers the option of going to a restaurant or just stopping by McDonalds to get something quick and cheap to eat. I will not only provide fast food, my restaurant will also have an entertainment center for children and adults that chose to sit in and eat. In my report I will convince you why it will be very successful and why I decided to open a McDonald’s franchise. I will also give you an overview of my business, its competition, and how I will run it. My McDonalds will not be like any other McDonalds; I’ve worked at McDonalds for a few years as a manager and will take a whole new approach in running this McDonalds. Business Overview I chose to start a fast food restaurant that will not only provide fast food for those on the go but will also entertain those that choose to sit in. I thought of opening my own fast food restaurant but I much rather open my own McDonalds franchise. I opened my own McDonalds franchise through the McDonalds Corporation. My business will be run like every other McDonalds but will be different in many areas. Just from McDonalds reputation ensures the...
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...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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...Summarize In the case study, the three significant reasons that had caused the market issue of McDonald’s from 1990s to 2003s were lack of preparation before the expansion, underestimate the competition, and fail to recognize the consumer demands. First, McDonald’s aggressively and rapidly expanded their business oversea without preparation, which led them to a wrong direction and lost focus. In addition, all the new employees weren’t trained well enough thus caused the decrease in quality of customer service, their products, and the sanitation. Second, while McDonald’s was solving their problems after the expansion, many new competitors have emerged during the gap. Third, the change of customer tastes was also a big issue that they confronted, and their new products such as pizza, the Arch Deluxe, and deli sandwiches failed to connect with consumers. However, McDonald’s chief executive found out that they got distracted from the most important and also the basic thing: “hot, high-quality food at great value at the speed and convenience of McDonald’s.” Later in 2003, they came up a strategic effort called the “Plan to Win.” and the structure is still continuous been using in every restaurant today. The core concept of “Plane to win” is focus on how to improve on the company’s 5 Ps – people, product, promotions, price, and place. They allowed local restaurant to adapt with the different culture and environment such as providing various kinds of food to satisfy the local...
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...Running head: Marketing Research Marketing Research Hope Jackson Kaplan University MT355 Kathryn Kelly January 15, 2013 McDonald’s McDonald’s is one of the leading restaurant chains in the world, touching the lives of people every day. The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonald’s restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. McDonald's is the world's leading global foodservice retailer with more than 34,000 locations serving nearly 69 million customers in 119 countries each day. At McDonald’s, we hold ourselves and conduct our business to high standards of fairness, honesty, and integrity. We are individually accountable and collectively responsible. We take seriously the responsibilities that come with being a leader. We help our customers build better communities, support Ronald McDonald House Charities, and leverage our size, scope and resources to help make the world a better place. McDonald’s is a publicly traded company. As such, we work to provide sustained profitable growth for our shareholders. This requires a continuous focus on our customers and the health of our system. We are a learning...
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...Business Writing Shana Gartlan Inside the Golden Arches Have you ever wondered how the McDonald’s corporation keeps its employees’ knowledge as sharp as cheese? They attend a special university called “Hamburger University.” Founded in 1961 by the former McDonald’s Senior Chairman Fred Turner and Ray Kroc’s first grillman, it was from humble beginnings in Elk Grove Village, Illinois, in the basement of a McDonald’s, where the university first originated. Ray Kroc explained his reasons for opening Hamburger University by saying: “If we are going to go anywhere, we’ve got to have talent. And, I’m going to put my money in talent.” Hamburger University continues to promote that philosophy, everyday. The curriculum itself is very diverse, and it is delivered by 19 full-time professors with restaurant operations expertise from all over the world. A miniature United Nations, Hamburger University employs interpreters and is able to teach its employees in 28 different languages, including: Spanish, German, French, Japanese, and Mandarin Chinese. McDonald’s Hamburger University does a lot of both lecture and hands on teaching, along with on-line learning modules and role playing. The employees align their training with their specific careers. The curriculum is broken down into four unique career paths: crew, management, mid-management, and executive Crew McDonald’s crew curriculum is developed and supported by the professionals at the university. For the crew, this...
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...McDonald’s Franchising McDonald's was first started in 1940 by two brothers named Mac and Dick McDonald in California. As of 2008, it continues to be a worldwide hit in more than 119 different countries and 30,000 different restaurants (McDonald’s.com, 2008). International franchising is a special form of licensing which allows a firm in another country to be given the rights by the firm in the original country (Griffin, Pustay, 2013). It allows the firm to be able to use the same operating systems, logos, trademarks, and brand names in exchange for a royalty payment (Griffin, Pustay, 2013). In this essay I will be talking about McDonald's, which franchises its restaurants all around the globe. McDonald's as a company considers itself to be a brand franchisor. If someone wishes to buy or purchase a restaurant, they brand the goods to the individual and the store (McDonald’s.com, 2008). McDonald's owns the right to own or lease any site and restaurant building to anyone who can afford it. The franchisee that purchases the rights has it for 20 years from McDonald's. They are also responsible for all the equipment and store fittings (McDonald's.com, 2008). The franchisee must comply with the standards that McDonald's has. That means the layout; brand, menus, design and administration of that restaurant must all fall within the standards. Each McDonald's must have the same type of menus and operating systems through its licensing agreement (McDonald’s.com, 2008). Now each menu...
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...Chad ####### Ms.###### English 1## McDonald's is a restaurant that we all know. It would not be surprising if your childhood memories of the golden arches. As a child or as an adult one may not question: where did it all began, what did this company have to go through to get where it is now, and many others that could be asked about this global success. This magnificent company is much deeper than a hamburger, it defines success at its highest altitude. One thing to keep in mind throughout this paper is that twenty five percent of currency passes through the McDonald's corporation. McDonald was created by Dick and Mac McDonald. The Brothers started out with opening a hotdog stand in 1937 called Airdrome. With Airdrome being such a great success they decided to expand the business and come up with a different type of restaurant. McDonald opens in 1940 in San Bernardino, California (History of McDonald's). The menu consisted of 25 items and most was barbecue. McDonald became a popular place for teen to hang out at. McDonald stays open for several years but they wanted to close down. The reason they closed down they want to do something different with their restaurant. So they closed down for several months. The brothers wanted to be the first restaurant that had what they called "Speedee Services" (The Great Leaders). They came up with this idea because they most there profit off of burgers, and since the burger did not take that long to make they could have fast...
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...August 27, 2014 McDonald's Corporation The very first McDonald's was opened up in 1940. The name of the first McDonald’s, which was located in San Bernardino, CA, was McDonald's Bar-B-Que (Farfan). It was a typical 1940’s drive-in with roller-skating car hops (Mcdonalds.com). Richard "Dick" McDonald and Maurice "Mac" McDonald were the original owners (wm2@doney.net). The menu included 25 items, but simplified it to hamburgers and potato chips in 1948. Their McDonald’s was shut for three months, and in December, 1948 they reopened it as a drive-through restaurant (Mcdonalds.com). In 1949, milkshakes were added to the menu, and French fries replaced the potato chips (Farfan). In 1953, Stanley Meston designed the Golden Arches (Mcdonalds.com). Ray Kroc learned about the first McDonald's in 1954 when he tried to get them to buy a milkshake machine. He became a franchise manager in 1955. He also helped McDonald's open a franchise restaurant for the first time in Des Plaines, Illinois (Farfan). Ray Kroc purchased the interests and right of the McDonald’s name for the price of $2.7 million in 1965 (About McDonalds). McDonald’s has their own school to train employees called Hamburger University (H.U.). The Hamburger University was opened in 1961, located in the Elk Grove Village’s basement in Illinois (Mcdonalds.com). When employees graduate from Hamburger University they receive a Bachelor of Hamburgerology degree (About McDonalds). Their training statement: “At McDonald’s, our training...
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...Executive Summary This documentation is mainly about the business operation of McDonald’s in India & how it applies their operation to interact with external environment. This discussed about the Porter’s five forces of models to imply the company’s strategies in details that helps to access the competitive environment in India. PESTLE analysis will give also the details about Political, Economic, Sociocultural and Technological, Environmental and Legal analysis and effects of this analysis on McDonald’s. Dunning eclectic framework provides to complete country’s advantages that helps the McDonalds to analysis India on the basis of how attractive India is in terms of market potential and investment risk.The study conducts a comprehensive study on the MacDonald which is one of the major players in the food services industry in India. The research tries to develop a case study which studies McDonalds and its business process very closely with a greater emphasis on major activities which it carries out in India. We have also discussed about market entry strategy of MacDonald in India. Usually McDonald’s follow franchising of entry mode but in India they followed the joint ventures of entry mode. They choose a busy residential area VasantVihar. Internationalization theory is also provide a prominent theory in international business regarding how firms expand overseas & it suggests that firms minimize the uncertainty associated with going abroad by adopting some kinds of internationalization...
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