McDonalds

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Introduction

The corporation was founded by businessman Ray Kroc in 1955. McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily. McDonald's is the leading global foodservice retailer with more than 33,000 local restaurants serving more than 64 million people in 118 countries each day. More than 80% of McDonald's restaurants

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Mission & Vision

Vision: McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." Mission: Be the best employer for our people in each community around the world Deliver operational excellence to our

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Values

McDonald's, worldwide, stands for QSC&V, where "V" stands for value and therefore the value proposition assumes special significance. At McDonald's, costs are kept low by increasing efficiency and cutting wastage at all levels. Customers, who walk into a McDonald's restaurant, expect to be served food that is hot and fresh, made from the highest quality ingredients, served within minutes of placing 4/22/12

Potential Entrants Relatively Weak Industry Competitors Suppliers Weak

Moderate to Strong Buyers

Rivalry among existing Firms Very Strong Substitutes 4/22/12

Supplier Power: Willingness of Supplier Supplier-seller collaboration Supplies are mostly commodities Customers- industry leaders

Threat of Substitutes: Readily available Attractively priced Satisfactory in terms of quality Buyers power A large number of small operators High fixed costs Undifferentiated and replaced Switching cost low Consumer-price-sensitive Produce the product Purchases in small volumes Well-informed about sellers products,prices, and costs

Barriers to Entry: Economies of scale Unattractive market growth Competitors strong offensive moves Competitors expertise in marketing and efficiency

Degree of Rivalry Several competing companies. Product and service differentiation inadequacy. Aggressive in making fresh moves -Domestic demand is growing slowly -- Competitors often rely on price cuts to boost volume -- Low switching costs for consumers 4/22/12

SWOT Analysis
Strengths Strong Brand name, image & reputation Large market share Strong global presence Specialized training for managers known as hamburger university Plan to win focuses on 4 ps Strong financial performance& position Proven production methods & countless new innovation ( breakfast, caf etc) Customer focus The company has favorable access to distribution networks Strong MCD performance in the global market place

Weakness Unhealthy food image High staff turnover including top management Customer losses due to fierce competition Legal actions related to health issues :use of trans fat & beef oil Uses HCFC 22 to make polystyrene that is contributing to ozone depletion Lack of product offerings to meet varied customer tastes and preferences Many restaurants are outdated

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Opportunities

Weakness

Growing health trends among the Health professional& Consumer activist customer accuse MCD of contributing of high Falling global trade barriers in attractive cholesterol, heart attacks, diabetes & markets obesity Globalization , expansion in other Relationship B/W MCD Corporate & Its countries franchisee Diversification & Acquisition of other Anti- American Sentiments quick- service restaurants Global recession & Fluctuating foreign currencies Growth of fast food industry Worldwide deregulation Industry to struggle to meet the Low Cost menu that will attract the customers towards health & customers environmental issues Expansion of menu to meet healthier Rivals copy McDonalds innovations consumer preferences fairly quickly, eliminating first-mover Freebies & discounts advantages The company has the propensity to induces shifts in consumer tastes away from the firm's products

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core competency

Able to produce and sell quick and cheap food to a large number of customers. McDonalds is well-known for its consistency in theproduction. With this concept, they have been able to expand into other countries, and they currently are the largest global fast-food chain in the world.
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Since they already hold this lucrative

Porter generic strategies

Cost Leadership Strategy. This generic strategy calls for being the low cost producer in an industry for a given level of quality. A leading cost strategy for McDonalds is the ability to purchase the land and buildings of its restaurants McDonalds also developed a strong 4/22/12 division of labor for its production

PORTER VALUE CHAIN ANALYSIS OF McDONALDS

The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin for McDonald's.

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Inbound logistics

Organizing the supply of food and materials to restaurants through approved third party logistics operators.

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Inbound Logistics

Production in huge plants denoted exclusive to McDonalds control food distribution and packaging system

Operation s

Firm

R&D in field research needs of end users. quality development Relatively Few in collaboration with Management Layers to Infrastructure good suppliers Reduce Overhead

Human Resource Management Technological Development

Effective Training Programs Forward integration: to Improve Worker Efficiency and Effectiveness franchisees through

menu items etc. and Frequent enhance Processes to participation ProcuremenEvaluationPerformances Monitor Suppliers in process t Efficient Plant Delivery Schedule Small, Highly improvement

with Technology over Investments incontrol in order to Reduce Costspresentation, store Associated with Manufacturing Processes

Operations

Outbound Logistics

Inbound Logistics

Scale to Minimize that Reduces Manufacturing Costs Costs Selection of Low Cost Transport Timing of Asset Carriers Purchases Policy Choice of Efficient Order Plant Technology Sizes Organizational Learning

Products Priced to Generate Sales Volume

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Servic e

Trained Sales Force

Outboun d logistics

Firm Infrastructure

Is the concern of the franchisee.

Outbound logistics are Human Resource Management growing as a part of McDonalds Technological Development recycling system integrating in the Frequent Processes to logistics of ProcuremenEvaluationPerformances Monitor Suppliers distribution t Delivery Schedule Small, Highly center Product Effective
Selection of Low Cost Transport Carriers Efficient Order Sizes Interrelationships with Sister Units

National Scale Advertising

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Marketing & Sales Servic e

Outbound Outbound Logistics Logistics

that Reduces Costs

Trained Sales Force

Installations to Reduce Frequency and Severity Products Priced to of Recalls Generate Sales Volume

Marketin g

Firm Infrastructure Human Resource Management Technological Development Procuremen t Operations Outbound Logistics Inbound Logistics

Long term marketing objectives are broken down into shorter term measurable targets, which McDonald uses as milestones. M

R Country teams are G given autonomy inN I marketing mix decision.

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Marketing & Sales Marketing & Sales Servic e

Advertising & PR is outsourced (Mudra agency in India)

Service

Services Firm Infrastructure provided by the companies Human Resource Management enrollment standards

Technological Development Procuremen t

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Marketing & Sales Servic Servic e e

Inbound Logistics Operations

Outbound Logistics

Procuremen t

Firm Infrastructure Human Resource Management Technological Development Procuremen Procuremen t t Inbound Logistics Operations Outbound Logistics

Sought partners with expertise on down trade distribution

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Marketing & Sales Servic e

R& D

Firm Infrastructure Human Resource Management Technological Development Procuremen t Operations Marketing & Sales Inbound Logistics
Technology and development research in quality assurance, and packing readdressed at lower cost, faster delivery chain system and process control equipments, recycling system.

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Outbound Logistics

Servic e

HRM

Firm Infrastructure Human Resource Management Technological Development Procuremen HRM specialists in R&D and expertise in food formulation, education to raise awareness of issues and raise demand. t The addressing environmental issues and CRS. Operations Outbound Logistics Marketing & Sales Inbound Logistics

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Servic e

Firm Infrastructure
Support Activities

Human Resource Management Technological Development

Strong real estate portfolio. International organization more than 50000 employees works in more than 50 countries,

Operations

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Marketing & Sales

Outbound Logistics

Inbound Logistics

Servic e

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