A Case Study :What opportunities and threats did McDonalds face?

McDonalds: Serving Fast food around the world 1. What opportunities and threats did McDonalds face? How did it overcome them? What alternatives could it have chosen?

Opportunities 1) "Going green" - energy management, improving packaging efficiency, environmentally friendly refrigerants. 2) McDonald's has maintained an extensive advertising campaign for decades. For popularity they use media (television, radio, and newspaper), the company makes significant use of billboards and signage, sponsors sporting events from ranging from Little League to the Olympic Games, and makes coolers of orange drink with their logo available for local events of all kinds. Television has always played a central role in the company's advertising strategy. They always advertise McDonalds much different way to their customers. Until now, McDonald's has used 23 different slogans in United States for advertising, and few others slogans for select countries and regions. 3) Recently McDonald's is actively trying to reduce their negative impact on the environment by altering their company policies. Their policy now an outline is not only the individual restaurants' behaviors, but also the ways in which they go about using their resources and acquiring them-. Since the 1990's, McDonald's restaurants have been encouraged to participate in the environmentally friendly movement by getting involved in community clean up days to cut down on the amount of litter around their stores. They have made an effort, assisted by Environmental Defense, to utilize recycling both in packaging their products and in what they use day to day which has allowed them to cut down on their waste significantly. McDonald's continues to be environmentally conscious in their business and they are currently testing a restaurant that will potentially give off less harmful pollutants by using alternatives to harmful refrigerants

4) They have the ability to add healthier lines of food. They have already gotten rid of super sizing and I think they have made their fries healthier currently. There is another personify is The Golden Arches are now more widely recognized than the Christian cross. McDonald's operates more playgrounds - designed to attract children (and their parents) to its restaurants - than any other private entity.

Threats: 1.Many Mc-Donalds competitors say fast food produced by Mc-Donald contribute to obesity, and distributing a leaflet which links the company's meals to heart disease and cancer and accuses it of despoiling the environment and exploiting the Third World. 2. Bird flu no threat to McDonald's chicken: Advertisement strategy in a bid to save its plummeting sales of chicken products in McDonalds, they have planned an exclusive advertisement campaign. The campaign would ensure that the customers get the message that chicken here is safe. 3.McDonald's faces up to European fears over food and job quality LONDON McDonald's is set to admit that it has not done enough to reassure the European market on issues about the nutritional value of its food and the quality of jobs it provides. 4. Working with McDonald must be the symbol of proud not as the rumors going around. 5. McDonald must have control over the management all over in same pattern to assure e the quality and consistency. How did it overcome with them? 1. By decreasing health problem. By delivering superior value to customers then competitors. 2. For better performance in Europe McDonald has to do a lot of work by providing the taste and dishes which have high demand in European market. 3. McDonald should increase advertisement in Europe. 4. McDonald should distribute free sample in different offices and colleges. 5. McDonald has to provide the job that person which can attract more customers through his strategies. 6. McDonald should make planning to avoid from bird flu and other diseases in future.

7. McDonald can done better performance then his competitors by providing dishes which are a part of that culture. 8. McDonald should launch some new dishes according to condition. 9. McDonald should provide traditional dishes.

What alternative could it have chosen? McDonald can use following alternative to increase his value: 1. McDonald should stop his product where it's not doing well and take corrective action and check his quality. 2. McDonald should open new restaurant in that area where fast food has important part in the culture of that area. 3. McDonald has to choose that management which can easily understand the demand of all customers. 4. McDonald should decrease its prices in that country where per capita is very low. 5. McDonalds should make his manuals which include traditional dishes of that area. 6. McDonald should it think at the level of middle customer rather than the high level customer. 7. McDonald should provide bonus to his employees for better performance. 2. Before McDonalds enter the European market, few people believed that fast food could be successful in Europe. Why do you think McDonalds successes? What strategies did it follow? How did these differ from its strategies in Asia? McDonald has got very strong position in Europe because the people of Europe like mostly fast food and McDonald providing fast food in Europe. The McDonald menu mostly includes traditional dishes of Europe. We know that per capita of Europe is high as compare to Asia, so prices are not problem in Europe. McDonalds succeeded because in Europe there are people involved in many activities that require a lot of time, so they must eat something on the run so that they can go back to their jobs, where they can 'produce' money that will be spent at a fast food. Its a vicious circle. we all live in the era of speed, and we all are too fast and too furious...so, logically, a fast food like

McDonalds was in need, like it or not. The net profit of McDonald in Europe is as high as compare to Asia. We know that per capita of Asia is low as compare to Europe is very low, so prices are a big problem in Asia. There is no any major different in McDonald strategy in Europe and Asia. In Asia McDonald menu is according to Asian culture and traditional dishes and in Europe its according to their culture. McDonalds has pursued two strategies since 2003. To keep up with rapidly changing consumer preferences, demographics and spending patterns, McDonald's has introduced new items (Premium Chicken sandwiches and the Angus Beef Burger) and campaigns to create more healthy foods (Premium Salads). The strategy reflects the philosophy that novelty, as opposed to loyalty to traditional products, is the key determinant of sales in the fast food industry. McDonalds has also focused on increasing sales at existing restaurants instead of opening new ones. To do so, McDonald's has remodeled many restaurants, kept stores open longer and increased menu options. Nevertheless, new McDonalds restaurants are still opening around the world at a rapid rate - the company plans to open about 1,000 units in 2008, and continues to grow its new restaurants at a 1%-2% rate each year. 3. What is McDonalds Basic Philosophy? How does it enforce this philosophy and adapt to different environments? McDonald's founder Ray Kroc built the company on the principle of giving back to the communities in which we do business. That same basic philosophy still holds true at McDonald's today. McDonalds golden arches promise the same basic menu and QSC&V (quality, service, cleanliness and value) in every restaurant. Its products, handling and cooking procedures and kitchen layouts are standardized and strictly controlled. The restaurants are run by local mangers and crews. Owner and managers attend the Hamburger University near Chicago, or in other places around the world, to learn how to operate a McDonalds restaurant and maintain QSC&V. The main campus library and modern electronic classrooms (which include simultaneous translation systems) are the envy of many universities McDonalds ensures consistent products by controlling every stage of the distribution. Regional distribution centers purchase products and distribute them to individual restaurants. The centers will buy from local suppliers if the suppliers can meet detailed specifications. McDonalds uses essentially

the same competitive strategy in every country: Be first in a market, and establish your brand as rapidly as possible by advertising very heavily. New restaurants are opened with a bang.