McDonald’s Restaurant Ltd
Group Presentation
Presented ByAdeel Wali Muhammad
Muhammad ZafarZafar Iqbal
This Presentation will • Overview selected business (McDonald’s), its objectives• Overview Business Strategy of McDonald’s• Provide Analysis of McDonald’s (SWOT, Situation)• Provide conclusions and recommendation
What is this Presentation all about?
• Ray Kroc was the founder of McDonald’s.• McDonald’s operates over 31,000 restaurant
worldwide , employing more than 1.5 million people.
• McDonald’s operates in 120 countries on six continents.
• McDonald’s serves more than 50 million customers a day worldwide, and more than 2.5 million people a day in the UK .
SHORT STORY
• 1940 :: First McDonald’s Opened in USA• 1953 :: McDonald’s Began To Franchise• 1964 :: McDonald's issued its first annual
report• 1975 :: Drive Thru Was Introduced• 1984 :: Ray Kroc Died on 14th January• 2005 :: McDonald’s Opened Wi-Fi Service• 2009 :: McDonald's introduces three versions
of Angus Burgers
BRIEF HISTORY
SWOTAnalysis
Brand Recognition
Leader In Quick Service Sandwich Industry
Strongest International Presence
Real Estate Holdings
Easily Recognizable Products
Variety Sources of Income
Franchise Business Model
Analysis of McDonald’sStrengths
SWOTAnalysis
Customer Service Level
Poor Management
Poor Marketing
Struggles in Offering Value/ Premium Items
High Employee Turnover
Weaknesses
SWOTAnalysis
Growth In Global Food Service Industry
Initial Public Offerings In Other Countries
Acquisition of Other Restaurants
Retail Sales of Merchandises
Opportunities
SWOTAnalysis
Increased Competition from Various Industries
Health Conscious Consumer Trends
Saturation of World Fast-food Market
Slow Growth in Sandwich Segment
Price War Business Practices
Threats
SWOTAnalysis Liquidity
Profitability
Asset Utilization
Leverage
Not extremely liquid but capability in financing short-term debt will not be a problem.
SITUATIONAnalysis
Profitable Declining trend but returns to normal level of profitability in 2003
High inventory turnover compliant to nature of industry
Normal Leverage Has ability to cover debt obligations
Financial Analysis
Marketing Analysis
SWOT Analysis
Situation Analysis
4 P’s Analysis
$Product
• Wide variety of menu items - traditional items- health-conscious items
• Local flavors
Marketing Analysis
SWOT Analysis
Situation Analysis
4 P’s Analysis
$Promotion
• I’m lovin’ it campaign to attract family• Feature artists to target teenagers• Give Ronald a more prominent place
Marketing Analysis
SWOT Analysis
Situation Analysis
4 P’s Analysis
$Place
• 30,000 stores worldwide• Operations
- Company-owned- Franchise
4 P’s Analysis
$SWOT
Analysis
Situation Analysis
Marketing Analysis
Price
• Traditionally - value-pricing as competitive weapon• Now, offer products at range of price points
-attract both price-sensitive and health-conscious consumers
Management Critique
SWOT Analysis
Situation Analysis
Present
+
Past • Series of unsuccessful initiatives• Aggressive store expansion cannibalization• Tensions – stopped QSVC evaluation
Poor Customer Service Level
SWOT Analysis
Situation Analysis
Present
+
Past
Management Critique
• Cantalupo took over in 2003• Launched initiatives aimed to
- internal operations- slowing down expansion- enhancing relevancy to customers
• Shown positive progress
Concerns
• Sustainability of Initiatives?• Or is it just Cyclical Trend?
Brand
Situation Analysis
SWOT Analysis
Situation Analysis
Distinctive Competencies
Franchise Business Model• Pioneer in Franchise Management• Quick Expansion – Leader in Quick Serve Industry• “Standardization” – What McDonald’s is Known For
Sustainable Competitive Advantage
• World Recognition• Presence > 120 countries
Concern: Deteriorating Franchise Management
Concern: Negative Brand Perception – “JUNK FOOD”