Presented By:Presented By:

Praneeth (MD 8050) Praneeth (MD 8050) Shivani Mathur (MD 8051) Shivani Mathur (MD 8051) Bandi Guru (MD 8053) Bandi Guru (MD 8053) Yawar Murtaza (MD 8055) Yawar Murtaza (MD 8055) Anjan Kumar (MD 8056)Anjan Kumar (MD 8056)

McDonald’s Corporation

INTRODUCTIONINTRODUCTION

• Founded : 1955 by Ray Kroc• Headquarters : Oak Brook,Illinois,USA• Number of locations : 31,000+ worldwide• Products : Fast food• Employees : 4,00,000 (2008)

Making A DifferenceMaking A Difference

We have an obligation to We have an obligation to give back to the give back to the communities that give us communities that give us so much." so much." - Founder Ray Kroc, 1955- Founder Ray Kroc, 1955

Organization StructureOrganization StructureMcDonald’s operates in more than 100 countries and is organized into a geographical structure with five key segments:

(1)McDonald’s USA

(1)McDonald’s Europe

(1)McDonald’s AMEA(Asia,Middle East & Africa)

(1)McDonald’s Latin America

(1)McDonald’s International

McDonald’s CorporationMcDonald’s Corporation Sales By Segment Sales By Segment

U.S.37%

Europe33%

Asia/Pacific14%

Latin America7%

Other9%

McDonald’s MissionMcDonald’s Mission

McDonald's brand mission is to be our customers' favorite place and way to eat,

and improve our operations to provide the most delicious fast food that meet our

customers' expectations.

McDonald’s VisionMcDonald’s Vision

McDonald's vision is to be the best and leading fast food provider around the globe .

Product LinesProduct Lines

HamburgersChicken SandwichesFrench FriesBeveragesBreakfast ItemsDesserts

SWOT ANALYSISSWOT ANALYSIS

INTERNAL ANALYSISINTERNAL ANALYSISStrengths Weakness

1. Strong brand name, image and reputation.

2. Large market share.

3. Strong global presence.

4. Specialized training for managers known as the Hamburger University.

5. McDonalds Plan to win focuses on people, products, place, price and promotion.

6. Strong financial performance and position.

7. Introduction of new products.

8. Customer focus (centric).

9. Strong MCD's performance in the global marketplace.

1. Unhealthy food image.

2. High Staff Turnover including Top management

3. Customer losses due to fierce competition.

4. Legal actions related to health issues; use of trans fat & beef oil.

5. Uses HCFC-22 to make polystyrene that is contributing to ozone depletion.

6. Ignoring breakfast from the menu.

INTERNAL FACTOR EVALUATION (IFE)

MATRIX

Key Internal Factors Weight Rating Weighted Score

Strengths

Strong brand name, image and reputation.

0.12 4 0.48

Large Market Share. 0.10 4 0.40

Strong Global Presence. 0.04 3 0.12

Specialized training for managers at Hamburger University

0.04 3 0.12

McDonalds ‘Plan to Win’ focuses on people, products, place, price and promotion

0.12 4 0.48

Strong financial performance and position

0.08 4 0.32

Introduction of new products 0.06 4 0.24

Customer Focus (centric) 0.06 4 0.24

Strong performance in the global marketplace.

0.08 4 0.32

Key Internal Factors Weight Rating Weighted Score

Weaknesses

Unhealthy food image. 0.08 2 0.16

High Staff Turnover including top management

0.04 1 0.04

Customer losses due to fierce competition

0.04 1 0.04

Legal actions related to health issues; use of trans fat and beef oil.

0.04 1 0.04

McDonalds uses HCFC-22 to make polystyrene that is contributing to ozone depletion

0.04 1 0.04

Ignoring breakfast from the menu

0.06 2 0.12

Total 1.00 3.12

EXTERNAL ANALYSISEXTERNAL ANALYSISOpportunities Threats

1) Growing health trends among consumers

2) Globalization, expansion in other countries (especially in China & India).

3) Diversification and acquisition of other quick-service restaurants.

4) Growth of the fast-food industry.

5) Worldwide deregulation.

6) Low cost menu that will attract the customers.

7) Freebies and discounts.

1) Health professionals and consumer activists accuse McDonald's of contributing to the country’s health issue of high cholesterol, heart attacks, diabetes, and obesity.

2) The relationship between corporate level McDonald's and its franchise dealers

3) McDonald’s competitors threatened market share of the company both internationally and domestically.

4) Anti-American sentiments.

5) Global recession and fluctuating foreign currencies.

6) Fast-food chain industry is expected to struggle to meet the expectations of the customers towards health and environmental issues.

EXTERNAL FACTOR EVALUATION (EFE)

MATRIX

Key Internal Factors Weight Rating Weighted Score

Opportunities

Growing health trends among consumers

0.08 4 0.32

Globalization, expansion in other countries (especially in China and India).

0.12 4 0.48

Diversification and acquisition of other quick service restaurants.

0.04 3 0.12

Growth of the fast-food industry.

0.10 4 0.40

Worldwide de-regulation 0.04 3 0.12

Low cost menu that will attract the customers

0.08 4 0.32

Freebies and discounts 0.08 4 0.32

Key Internal Factors Weight Rating Weighted Score

Threats

Health professionals and consumer activists accuse McDonald’s of contributing to the country’s health issue of high cholestrol, heart attacks, diabetes and obesity.

0.10 2 0.20

The relationship b/w corporate level McDonald’s and its franchise dealers

0.09 2 0.18

McDonalds dealers threatened market share of the company both internationally and domestically

0.12 2 0.24

Anti-american sentiments 0.07 2 0.14

Global recession and fluctuating foreign currencies

0.04 1 0.04

Fast-food chain industry is expected to struggleto meet the expectations of the customers towards health and environment issues

0.04 1 0.04

Total 1.00 2.92

PORTER’S FIVE FORCES PORTER’S FIVE FORCES MODELMODEL

THE THREAT OF THE THREAT OF ENTRANTS ENTRANTS

Large established companies with strong brand identities such as McDonald’s BKC, YUM, and WENDY’S do make it more difficult to enter and succeed within the marketplace.

New entrants find that they are faced with price competition from existing chain restaurants.

BARGAINING POWER BARGAINING POWER OF BUYERS OF BUYERS

Low bargaining power of buyers.

BARGAINING POWER OF BARGAINING POWER OF SUPPLIERS SUPPLIERS

Bargaining power of suppliers within the fast food industry would be relatively small, unless the main ingredient of the product is not readily available.

THREAT OF THREAT OF SUBSITITUTES SUBSITITUTES

This could range from a competitive fast food restaurant to family restaurant to a home cooked meal.

COMPETITORCOMPETITOR

•Burger King

•Yum

•Wendy’s

Founded in Miami, Florida in 1954 under Founded in Miami, Florida in 1954 under the name “Insta Burger King” by James the name “Insta Burger King” by James McLamore and David Edgerton,Burger King McLamore and David Edgerton,Burger King Corporation(BKC),a subsidiary of Burger Corporation(BKC),a subsidiary of Burger King Holding,Inc.,owns 11,184 resturants in King Holding,Inc.,owns 11,184 resturants in 66 countries and has 37,000 employees.66 countries and has 37,000 employees.

BURGER KING

YUM BRANDS(YUM)YUM BRANDS(YUM)

Yum! Brand, Inc., formally known as TRICON Yum! Brand, Inc., formally known as TRICON Global Restaurants, Inc., was founded in 1997 Global Restaurants, Inc., was founded in 1997 and changed its name to YUM! Brands, Inc.,in and changed its name to YUM! Brands, Inc.,in 2002.YUM operates 34,000 resturants in 100 2002.YUM operates 34,000 resturants in 100 countries, including prominent resturant chains countries, including prominent resturant chains such as Kentucky Fried Chicken(KFC),Pizza such as Kentucky Fried Chicken(KFC),Pizza Hut,Taco Bell,Long John Silver’s,and Hut,Taco Bell,Long John Silver’s,and A&W.With a market cap of $17.61 billion and A&W.With a market cap of $17.61 billion and 53,200 employees. 53,200 employees.

WENDY’SWENDY’S

CPM-COMPETITIVE PROFILE MATRIX

RECOMMENDATIONSRECOMMENDATIONS

Expand further into Asia markets over a 2-year period by adding 500 restaurants per year at a cost of $4 billion annually, and applying 0 grams ,Trans fat in all worldwide McDonald's restaurants.

T H A N K T H A N K

Y O U