Swami Sarwanand Institute Of Management And

Technology

Assignment
On
McDonald’s SWOT Analysis

DATE-06.09.2010

Session-2010-11

SUBMITTED BY SUBMITTED TO

ASHISH AGGARWAL MISS POOJA KAPOOR

(Student MBA III) (LECT. MIS)

ROLL NO.
556
 McDonald's was started as a drive-in restaurant by two brothers, Richard and
Maurice McDonald in California, US in the year 1937. The business, which was
generating $200,000 per annum in the 1940s, got a further boost with the emergence
of a revolutionary concept called 'self-service.'

 The brothers used assembly line procedures in their kitchen for mass production.
Prices were kept low. Speed, service and cleanliness became the critical success
factors of the business. By mid-1950s, the restaurant's revenues had reached
$350,000.

 As word of their success spread, franchisees started showing interest. However,

 At this point, Ray Kroc (Kroc), distributor for milkshake machines.Expressed

interest in the business, and he finalized a deal with the McDonald brothers in 1954.
 He established a franchising company, the McDonald System Inc. and appointed
franchisees.

 In 1961, he bought out the McDonald brothers' share for $2.7 million and changed
the name of the company to McDonald's Corporation. In 1965, McDonald's went
public...

 Currently McDonald's operates in 121 countries & having more than 30000
restarunt and serving 53 Mn customers everyday
• McDonald's Entered India in 1996

• McDonald's India is a 50 – 50 JV partnership between MCDONALD’S

CORPORATION (U.S.A) and two Indian businessman Amit Jatia and Vikram Bakshi

• Localisation:

 DON’T OFFER ANY BEEF OR PORK ITEM IN INDIA

 IN PRODUCT LIKE MCVEGGIE, PIZZA MCPUFF ETC.THEY USE

SPICES FAVOURED BY INDIANS

 SOFT SERVES AND MCSHAKES ARE EGGLESS

 Actively Involver in many social activities likegi CHILD EDUCATION,

PULSE POLIOiesetc.

• Key Milestones

 1996 …the first McDonald’s restaurant opened on Oct. 13, at Basant

Lok, Vasant Vihar, New Delhi. It was also the first restaurant in the
world not serving beef on its menu

 1997…the first Drive –Thru restaurant at Noida

 1999…the first Mall location restaurant at Ansal Plaza – New Delhi

 2000…the first highway restaurant at Mathura

 2001…the first thematic restaurant at Connaught Place

 2002…the first restaurant in a food court at 3C’s, Lajpat Nagar and the
first restaurant at the Delhi Metro Station at Inter State Bus Terminus
 STREANGTH

 Brand Equity…world-wide

 42% of US fast-food hamburger business

 Consistency of food

 Successful items: Fries, Happy Meal, Aloo tikki, Egg McMuffin,

Promotions

 Overseas market

 Balance sheet position

 WEAKNESS

 Declining market share

 Weak product development

 Quality and taste of products

 OPPORTUNITIES

 International expansion

 Only serving 1% of the world’s population

 Growing dining-out market

 Threats

 Mature/overstored industry

 Strength of competition

 More health-conscious consumers

 Fluctuation of foreign exchange rates; Economies
• They have a feedback And suggestion form available at each outlet.

• For the techno savy Customers they have a online Feed back form.

• All the upcoming product and related info are posted on there website-

www.McDonald's.com