Assignment on McDonald's • Gurkirt Singh • MBA-1st• 16421220

Introduction• Background:

Founded: 1955, Franchising since: 1955

Largest fast-food company

Operating in over 121 countries, over 35000 locations with 1.5 million employees

Revenues $28.1 billion in 2013.• Mission • Vision • History

Vision

"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, & value, so that we make every customer in every restaurant smile."

Mission

McDonald's brand mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.

History (cont)• 1970 1600 restaurants• 1980 6000 McDonald’s Restaurants• 1990 record sales • 1994 Kuwait City, Kuwait• 2002 Forty seven years after

30,000 locations 2000 new restaurants World Wide Web McDonald’s a recognized Brand Name

Products

• Beverage: Cold-Coffee, ice tea, hot serves, McShakes

Products• Non-Vegetarian Menu: Filet-O-Fish, , Chicken McCurry Pan, McChicken.

Products• Vegetarian Menu: Crispy Chinese, McALOOtikki, Mc Veggie, Pizza McPuff,

Paneer Salsa Wrap.

McDonald’s Organization Structure

• Having tight control of the firm

• Easily operate the company

• Improving employees’ performance

• Atmosphere of cooperation and teamwork

• The following chart is the organizational structure of McDonald

Key Processes

• Doing business over 100 countries

• 85% franchised restaurants

• All franchisees are independent, full-time operators

• Entrepreneur’s number-one franchise named

Manage Operations Technology

Using OLAP technology:

Manipulates data

View the data and information

Competitive advantages• Striving to be cost leaders: prices cannot be matched by

competitors.

• The speedy delivery of the food.

• Strong global presence and largest market share in fast-food industry.

• Net competitive advantage.

Product life cycle

US Market

Strategic directionsMcDonald’s strategic plan is called ‘plan to win’. The concept of this plan is for McDonald’s to not be the biggest fast food restaurant chain, but to be the best fast food restaurant chain. McDonald’s tries to achieve this by applying the five P’s: 1. People, 2. products, 3. place, 4. price and 5. promotion. Along with this our firm also incorporate geographic strategic plans.

Current strategy of McDonald's:

• Low-cost strategy to compete with competitors

• Cutting cost

• Operating more outlets

• Focusing on Plan to Win

Strategy 1

• Expanding to Asia market especially China and India.

Implementation:• Identifying market segmentation.• Focusing more on potential market.• Legal permission in foreign country• Innovating and cooperating with community

• Entered in India 1990’s• Hinduism in India challenged McDonald’s• Cattle is a gift from the gods• They value cow milk• Do not eat cattle • India is also the home of about 140 million Muslims • Muslims do not eat pork

McDonald’s competitors in India

• McDonald’s competes with fast food chains like Pizza Hut, Domino’s Pizza, Papa John’s, Nirula’s and KFC in India.

McDonald’s Supply Chain 

• McDonald’s has a dedicated supply chain in India and sources 99% of its products from within the country. The company has strong backward integration right up to the farm level.

Local Vegetarian Menu

• In India, McDonald’s does not offer pork or beef-based products. It’s menu is more than 50 per cent vegetarian. The fast food retail chain has separate production lines and processes for its vegetarian and non-vegetarian offerings.

MFY (Made for You) food preparation platform 

• MFY is a unique concept (cooking method) where the food is prepared as the customer places its order. All new upcoming McDonald’s restaurants are based on MFY. This cooking method has helped McDonald’s further strengthen its food safety, hygiene and quality standards. McDonald’s has around 10 MFY restaurants in its portfolio.

All-vegetarian restaurants in various pilgrimage sites

• : McDonald’s plans to open all-vegetarian restaurants (by middle of 2013) at various pilgrimage sites across India. To begin with, the company plans to target pilgrims at sites like Vaishno Devi in Katra, Jammu and Kashmir and at the Golden Temple in Amritsar. It already has one outlet in Katra.

The most important meal for QSRs- Morning Meals (Breakfast

• According to market research company, the NPD Group, breakfast accounted for nearly 60 per cent of the restaurant industry’s traffic growth over the past five years in the U.S. Quick service restaurants sold 80 per cent of the over 12 billion morning meals served at US restaurants for the year ending in March 2010.

How McDonald’s manages to keep its prices down

• – Fast-food chains face a tough time balancing between margin pressures and hiking prices which can hurt volumes. Consequently, the chains have to increase rates or rework their strategies. Affordability has been the cornerstone of McDonald’s global strategy. Some of its measures to achieve this include

Conclusion

• Good performance in fast-food industry

• Long reputation for strong marketing campaigns.

• Must change to adapt new environment

• Have more innovation and creative strategy

The End

Thank you for your attention.