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One world, One Burger- McDonalds
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VISION
To be the best and leading
fast food provider aroundthe globe
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MISSION
"McDonald's vision is to be the
world's best quick servicerestaurant experience. Being thebest means providing
outstanding quality, service,cleanliness, and value, so that wemake every customer in every
restaurant smile."
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NUMBER OF STORES
McDonald's Corporation is the world's largest
chain of fast food restaurants, serving nearly 47
million customers daily through more than
31,000 restaurants in 119 countries worldwide.
Of the 31377 McDonalds restaurants around the
world, 20505 (65%) are operated by franchisees,
3966 (13%) are operated by affiliates, and 6906(22%) are company-operated.
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NUMBER OF EMPLOYEES
1.5 million worldwide
(398,000 company staff,1.1
million franchisee staff)
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COMPETITIVE ADVANTAGE
McDonalds success lies in its utilization oftechnology, routinization of work, andgeneral deskilling of labor
McDonalds bases its worker control andefficiency on one principle: workerstupidity.
McDonalds implements the FrederickTaylor method of installing managers anda system of predetermined activities called
task management.
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McDonalds goal is to maximize its
profits including all devious means
McDonald's maintains its competitive
advantage by constantly creating new
items to add onto its menu
McDonald's also realized the changing
world we live in and the need for
healthier food
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7ps
Product
Physical
evidence
Promotion
Price
Place
People
Process
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Veg Menus
Non- VegMenus Frozen Dessertss
Beverages
1P- Product
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Cares for customer s Sentiments towards
religion and culture.
It has separate cooking area and
equipments.
Takes dietary concern-Burger kingHealthier kids club.
1P-Product
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Policy which caters to Indian customers.
Quite affordable products.
Heavily marketed HappyPrice Menu.
Importance to Brand and its integrity.
2P-Price
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McDonald's opened its doors in India in October 1996. Eversince then, our family restaurants in Mumbai, Delhi, Pune,
Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad,
Doraha, Manesar and Gurgaon have proceeded to demonstrate.
3P-Place
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Located at prime locations.
Every spread in NCR.
Almost in all big cities.
At residential areas , malls.
3P-Place
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Target customer- Children.
Awareness about products among
people by using different Media like
TVs, Hoarding, and Bus Shelters.
Description of product on paper nuts
placed in the trays.
The placing of the pamphlets and
banners in all around the outlets.
Lucky promotion strategies .
4p-promotion
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Children- Happy Meal
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Stars as per their performance.
Gives employees larger role in decisions.
Philosophy of quality, Service, Cleanliness
and value is the guiding force behind its
service.
Fast friendly service.
Provides clean, comfortable environmentspecially suited for families.
5P-People
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Each outlet is headed by a
RestaurantManager . He is
responsible for the daily
operation and customer
interaction.
Delivery Crew Member carries
basic operation of a
restaurant. Ensures customer
satisfaction at the restaurants.
In order to motivate there
employees they give them stars
as per their performance.
5P-People
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The physical evidence appearance affects not only
the impression outsiders have of a business but all
the way that business functions.
Staff members.
Location & appearance.
Buildings Maintence.
6P-Physical evidence
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Cleanness
speed Quality
transparency
6P-Physical evidence
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Food manufacturing transparent to
customers.
Training to the licensees.
Invented the most efficient cookingequipment.
New methods of food packaging and
distribution.
McDonalds in India followed the same
tradition.
Spent Rs. 50 crores on market research.
7P-Process
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SWOT ANALYSIS
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Strong brand name, image and
reputation.
Large market share.
Strong global presence.
Specialized training for managers known
as the Hamburger University.
McDonalds Plan to Win focuses onpeople, products, place, price and
promotion.
Strong financial performance and poition
Introduction of new products. Customer focus (centric).
Strong performance in the global
marketplace.
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Unhealthy food image.
High Staff Turnover including Topmanagement.
Customer losses due to fiercecompetition.
Legal actions related to health issues;use of trans fat & beef oil.
Uses HCFC-22 to make polystyrene
that is contributing to ozonedepletion.
Ignoring breakfast from the menu.
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Growing health trends among
consumers.Globalization, expansion in other
countries (especially in China & India).
Diversification and acquisition of other
quick service restaurants.
Growth of the fast-food industry.
Worldwide deregulation.
Low cost menu that will attract the
customers.
Freebies and discounts.
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Health professionals and consumer activists
accuse McDonald's of contributing to the
countrys health issue of high cholesterol,heart attacks, diabetes, and obesity.
The relationship between corporate level
McDonald's and its franchise dealers.
McDonalds competitors threatened market
share of the company both internationally
and domestically.
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PEST ANALYSIS
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In general terms the government
policies do not affect the company
much nor do the
changes in the government
influence the organization of the
company.
McDonalds enjoys an addedadvantage in countries
where consumer protection laws are
not very strong
The international operations ofMcDonalds are highly influenced by
the individual state policies
enforced by each government
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Market leader.
Very high target market.Low cost and more incomes.
The rate at which the economy of
that particular state growsdetermines the purchasing power
of the consumers in that country.
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As McDonalds offer Hilal food majorly sothere are no religious, ethical or culturalissues associated with the operations
For the rising importance of corporate social
responsibility recently McDonald's hasannounced that it is giving further backing toRainforest Alliance certification by offering acup of tea with a conscience in all of its 1,200restaurants in the UK.
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Food made with the help of machines isconsidered more hygienic.
However, the continuous developments inthe technology sector needs McDonalds tobe updated regularly.
It is natural that technology has helpedMcDonald and especially its employees asthey have to serve quick services.
Computers and smart cashiers are used by
the employees so they would not getconfused and they are provided withcustomized database management system.
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STAR QUESTION MARK
CASHCOW DOG
GROWTH RATE
MARKET SHARE
HIGH
LOW
HIGH LOW
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In India Mc Donald's segments itsmarket according to its customers.
The way customers are segmentedare as follows :-
1) on basis of age
2) on basis of income
3) on basis of working class
Mc Donalds Segmentation
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argeting
Mc donalds targets nations all over theworld. It expands itself by targeting specificnumber of franchises that it will open in aparticular nation & then may even openmore if required based on demand. Today,
McDonald's values transcend borders andcultures. Each and every day, 47 millionconsumers worldwide visit McDonald'sbecause they know and love the GoldenArches, Ronald McDonald and Big Macsandwiches.
From one restaurant in 1955, to more than31,000 locations in 119 countries,McDonald's has become not only the leadingglobal foodservice company, but also one ofthe strongest and most recognized brandnames in the world.
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McDonald's has placed considerable emphasis on enhancingits brand positioning through sponsorship of events andsports.
It was one of eight corporate sponsors of the Millennium DomeExperience, investing 8 million in the Dome's communityprogramme and learning experience.
It has been a major sponsor of international football, includingthe World Cup since 1994 and the Champions League from1996to 2000.
It has sponsored British athletics since 1993, notably the
McDonald's Young Athletes'League, training 11 to 17 yearolds.
It has sponsored Child Safety Week since 1994.
By combining fundamentally sound operational practices withinnovative marketing strategies, RayKroc laid the foundation
for McDonald's global success.
Brand Positioning
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Porters GenericStrategies
AnalysisCOST LEADERSHIP
DIFFERENTIATION
FOCUS
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The Five Forces Model
Threat of NewEntrants
BargainingPower ofCustomers
BargainingPower ofSuppliers
Rivalry AmongExisting Firms
Threat ofSubstitutes
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BYE BYE SEE U AT McDonaldS