Mcdonald's Case

In: Business and Management

Submitted By ann1211
Words 2605
Pages 11
Introduction One of the largest and most popular fast food restaurant in the world, McDonald’s, has stores located all over the world that are found in 118 countries and operate over 35,000 restaurants worldwide. It is compressed of both company-owned and franchised restaurants that all operate maintaining a tight grasp on operations, cost, quality and control. The relationship between McDonald’s and its independent franchises is of fundamental importance to overall performance and to the McDonald’s brand. Being this large of a company, every decision that it makes is crucial for the survival of the company and any wrong moves can make a huge impact on them on a much larger scale. The company is always undergoing changes and every decision that McDonald’s makes needs to be greatly evaluated to make sure it doesn’t lead them towards failure. There’s a lot of competition in the fast food industry and competitors are always competing against each other when it comes to price, quality, advertising, deals, new items and more. There’s a lot of opportunity that has been made and still to be made in the fast food industry and all falls back on the decisions that these companies make and in this paper we will be conducting multiple strategical analysis on McDonald’s and evaluating it. One of the most challenging things looking at the fast food industry is that it is not an attractive market for new entrants, competing against the costs of existing companies is very difficult but they could exceed because of low start-up costs and massive market demand. The market is very attractive for existing firms who have established market, brand name and economies of scale to compete just like McDonald’s has done. They have a very strong brand image and are always looking to enhance it. It is often known that McDonald’s isn’t always the healthiest for you, but they often try to…...

Similar Documents

Mcdonald's Case Study

...Working for McDonald's is often portrayed as an undesirable job. In primary school, my math teacher told us that if we did not learn division, we would end up “flipping burgers at ‘Booger King’ or mopping floors at McDonald's.” She is not alone in her negative stereotype of McDonald's. In 2003 the Merriam-Webster Dictionary added the term “McJob,” defining it as a “low paying job that requires little skill and provides little opportunity for advancement." This negative perception of McDonald's is not consistent with the facts. The Darden case study reports on p. 3 that McDonald's defies industry norms, paying wages that are often better than the industry average and offering many employee benefits. For example, McDonald's designed incentives to encourage employees to participate in health insurance and 401(k) retirement programs, and pioneered several types of "flex-time." The company is a leader in employee training programs to develop and retain workers, founding "Hamburger U" in 1961. The company also uses a promote-from-within strategy, with 40% of executive officers beginning as entry-level crewmembers. Overall, McDonald's corporate strategy is to be the world's best "quick service" food provider by focusing on its stakeholders. In order to be successful, the company must deliver excellent products and service to customers; develop, retain and motivate employees and local suppliers; deliver profit to shareholders; and contribute to the community. The company......

Words: 573 - Pages: 3

Mcdonald's Case Review

...McDonald’s Corporation Analysis & Prognosis July 18, 2012 Table of Contents Overview 2 Analysis 2 The History of McDonald’s 2 Mission and Values 3 Company Structure and Organization 3 Sales, Profit, & Cash 4 Key Metrics 5 Position in the Industry 5 Stock Market Performance 6 Strengths and Weaknesses 7 Opportunities and Threats 8 Corporate-Level and Business-Level Strategies 10 Significant Product Failures 10 Prognosis 10 Sales 10 Profits 11 Key Metrics 11 Position in the Industry 11 Conclusion 11 Works Cited 12 Appendix 13 Appendix A 13 Appendix B 13 Appendix C 14 Appendix D 14 Appendix E 15 Overview McDonald’s Corporation is the world’s largest fast food restaurant chain. I have done hours of extensive research on McDonald’s and the limited-service restaurant industry and have been eating McDonald’s for over 20 years. I will discuss McDonald’s past performance versus the industry and provide a prognosis for the future. There is a rich history behind McDonald’s, starting in 1948 with the McDonald brothers. Ray Kroc started franchising McDonald’s in 1955 and from there built a corporation. Most missions and values still used today are those Kroc implemented. McDonald’s is structured as a multifunctional form. It is mainly organized by geographical area. There are four main geographical areas and those are then it is broken up even further. McDonald’s has had steady revenues over the last ten years and...

Words: 3401 - Pages: 14

Case Study Mcdonald's

...Unit 1 Case Study Kelli D. Martin Columbia Southern University Characterize the four I’s. a. Issues: Obesity 64% of American adults are overweight or obese (Baron, p20). Economists took into consideration several factors: calorie intake, BMI, and work activities. These factors contribute to the failure to provide nutritional information about menu items (McDonald’s has recently added nutritional information on each item on the menu). The news media gave significant coverage to the fast food and obesity issues; therefore the issue became the subject of films, jokes, and recently our nation’s first lady (Michelle Obama) and Beyonce. “ The Menu Education and Labeling Act (MEAL) stated that the name of the food on any menu, the number of calories, grams of saturated fat plus tans fat, and milligrams of sodium contained in a serving of the food be present on every menu.” (MEAL) Filmmaking Activism A film was made to bring attention to obesity, and McDonald’s was the target. The filmmaker focused on McDonald’s for 30 days for all of his meals and gained 25 pounds, and later received health warnings from his doctor (San Francisco Chronicle). “In response to the film, the Competitive Enterprise Institute (CEI) supported preparation of a film by Soso Whaley in which for two 30 day periods she ate only at McDonald’s. She lost 18 pounds by controlling her calorie intake. The CEI stated, Whatley’s documentary project,......

Words: 1127 - Pages: 5

Mcdonald's Case Study

...competitive environment: A McDonald's Restaurants case study For businesses to understand adequately the nature of the competition they face, they must define their market accurately. This involves recognising a broad base of competitors. McDonald's has thousands of competitors, each seeking a share of the market. McDonald's recognises that it is up against not only other large burger and chicken chains but also independently owned fish and chips shops and other eat-in or take-out establishments. A company like McDonald's therefore, has to develop competitive strategies that differentiate it from its rivals. All organisations need to be in touch with their business environment in order to make sure that what they do fits with customer expectations. These expectations change over time. Moreover, the IEO market in which McDonald's operates is becoming increasingly competitive, as the chart below illustrates. Recently, in this crowded market place, McDonald's competitive lead came under pressure largely because many fast food outlets have either: • copied the trail-blazing ideas that previously set McDonald's apart and put it ahead of the field • promoted new ideas of their own e.g. urban supermarkets and petrol stations that sell convenient, portable mealtime replacements. McDonald's recognises the need to respond. It is looking to increase the competitive gap by: • adding greater value through innovation • making the process of visiting a McDonald's less routine and......

Words: 1152 - Pages: 5

Mcdonald's Case Study

...Assignment # 1: McDonald’s Case Study June N. Lewis Dr. Waldo, Instructor Talent Management - HRM 532 Strayer University July 21, 2013 Assignment #1: McDonald’s Case Study Outline the talent management program that led to success for the company. In the fourth quarter in 2002, McDonald’s had their first profit lost and the company began to ask themselves what went wrong because they had a history of outstanding performances until then. Upon reviewing some of their key components, the organization realized that they had to revamp their Talent Management process so that it would become aligned with the company’s business objectives and policies. Talent management is defined as “a subset of human resource (HR) processes, programs, and tools designed to identify, assess, develop, and retain talent (Silzer & Dowell, 2010, p.75). The company’s first two steps in achieving success was to restructure their performance development system (PDS) throughout the organization for all of the staff positions along with coming up with a talent review process for all of the officer-level positions in the company. Next on the list was creating and implementing a sequence of enhanced development programs, such as, Leaders at McDonald’s Program (LAMP), the McDonald’s Leadership Institute, finally, the launching of the Global Leadership Development Program. When McDonald’s had originally rolled out their strategy for the performance development system (PDS) in 2001 for all of the......

Words: 1522 - Pages: 7

Mcdonald's Case Study

...McDonald’s Case Study By John D. Robinson Completed in fulfillment of requirement for Talent Management in HRM 532 Submitted on 30 October 2012 Key Words for Library Catalog Submitted to: Business Strategies Prof. Talent Management Program Course Instructor Talent Management Process Talent Management Planning Developing Talent Outline the talent management program that led to the success for the company. In the broadest sense, talent management has been described as “a deliberate and ongoing process that systematically identifies, assesses, develops and retains talent to meet current and future business needs and objectives.” (Wiley & Sons) McDonald’s has taken the steps to put talent management at the core of their overall Global Business Strategy for success. McDonald’s used a broad-scale initiatives approach to development and retain talent and its working! Reporting their first ever loss in Q4 2002, the CEO resigned and the new CEO stepped in and began to implement a new business strategy to right the ship. McDonald’s leadership understood that in the rapidly changing 21st century business world, the best companies implement and aggressively support any initiative that promotes the link between keeping the best talent and achieving the best results. The initiatives McDonald’s implemented to align their talent management programs with their overall Global Business Strategy are as follows: * Performance......

Words: 920 - Pages: 4

Mcdonald's Corporation Case Analysis

...McDonald’s Corporation Case Analysis McDonald’s has made great strides in the sustainability of its supply chain over the past few decades. From a moratorium on soya coming from farms where Amazon rain forests have been destroyed, to developing sustainable fishery guidelines to manage fish quality and quantity, McDonald’s has taken great efforts to “do the right thing” [1]. This commitment to environmental sustainability has impacted how they source from suppliers and manage supply chain management initiatives. With all that McDonald’s has done, there is still room for improvement. Engagement in sustainability efforts with suppliers has generally resulted from a call for change from activists who were negatively impacting brand trust. Acting in the best interest of society by providing healthy food alternatives to well-informed consumers also play a vital role in how the sustainable supply chain is managed. As such, the core problem facing McDonald’s green supply chain management infrastructure is that it is still reactive in nature and will always require a trade-off between societal benefit and cost minimization. One alternative to consider is for McDonald’s to become more proactive at anticipating and managing emerging issues prior to a large-scale publicity and exposure. By doing so, McDonald’s can approach NGOs and interest groups with emergent problems, using the collaborative expertise to resolve potential hotspots before they erupt. This approach......

Words: 856 - Pages: 4

Mcdonald's Case Study

...FRANCHISING A Case Study on McDonalds [pic] A Project in Entrepreneurship Submitted To: Ms. Kishori Ravi Shankar Submitted By: Mansi Chanana & Udit Bhatia 4455 & 4447 BBS-III (M) Shaheed Sukhdev College of Business Studies Acknowledgement Perseverance, inspiration and motivation have always played a key role in the success of any venture. It has been a privilege that Shaheed Sukhdev College of Business Studies has given us the opportunity to work on business projects as part of the course curriculum. These projects serve as a stepping stone into the corporate world and to know it inside out. At this level of understanding it is often difficult to understand the spectrum of knowledge without proper guidance and advice. First and foremost we would like to express our gratitude towards Ms. Kishori Ravi Shankar, without whose support and guidance this project would not have been possible. Special thanks to all the people from the various segments explored for providing useful insights that have helped add value to this project. Mansi Chanana & Udit Bhatia 4455 & 4447 BBS- III (M) 1.0 Franchising: An Overview Franchising (from the French for free) is a method of doing business wherein a franchisor licenses trademarks and tried and proven methods of doing business to a franchisee in exchange for a recurring payment, and usually a percentage piece of gross sales or gross profits as well as the annual fees. Various tangibles and......

Words: 5579 - Pages: 23

Mcdonald's Financial Case

...Financial statement CASE STUDY Qi Zhang (William) BUSN 101-002 Prof. Sommese 10/17/13 Table of Content Company Overview-------------------------------------------------------2 Financial Statement Research-----------------------------------------2 Financial Statement Analysis------------------------------------------4 Interpretive Analysis-----------------------------------------------------5 Conclusion------------------------------------------------------------------7 Work Cited------------------------------------------------------------------7 Balance Sheet---------------------------------------------------------------8 Income statement--------------------------------------------------------9 Company overview McDonald’s Corp, one of the largest chain fast food restaurant group, has more than thirty thousand branches in hundreds of countries over six continents. The company is serving food for more than 68 million people per day. Major products are hamburger, french fries, fried chicken, soda, salad, etc. In May 15th, 1940, Richard and Maurice McDonald began a little restaurant named “Dick and Mac McDonald”. Then in 1948, they changed the principle to fast food restaurant using assembly line, which made productivity much more efficient. In last year, the company’s global comparable sales growth was 3.1%. The earning per share growth was 5%, and the average number of customers served every day was 69 million. The operating income increased $100 million than......

Words: 1746 - Pages: 7

Mcdonald's Case Study

...Week 3 Assignment 1: McDonald’s Case Study HRM 532 Talent Management Strayer University July 21, 2013 Dr. Robert D. "Doug" Waldo, SPHR For most of its fifty-four years of existence, McDonald’s has been very successful in growing its business while being able to utilize a decentralized approach to managing its global workforce. The size, complexity and global character of the business has continued to grow to more than 32,000 restaurants in 118 countries serving approximately 55 million customers per day. Even with this success, it became apparent that sustained success requires the development of a more consistent and disciplined approach to talent management and development. In response to this specified need, McDonald’s has taken steps that have enhanced its talent management and development system (Goldsmith & Carter, 2010). There are two levels that were embedded with the expectations of the employers which consist of good customer service and experience levels. Customer service and experience levels are key metrics that are embedded within the performance expectations for employees throughout the system. This made McDonald’s concentrate on the quality, service, cleanliness, and the value of being strong. These variables have been strongly linked to customer expectations and loyalty. All efforts to enhance the company’s global workforce management system incorporates a focus on key behaviors; which consists of customer focus and service orientation......

Words: 1631 - Pages: 7

Mcdonald's Case Study

...McDonald's is the leading global food service 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 worldwide are owned and operated independently. McDonald’s is categorized as a fast-food restaurant that serves mainly hamburgers, fries, and beverages, with the main focus on product and service quality, speed and accuracy. McDonald’s uses Cost Leadership Strategy in combination with Operational Excellence Strategy. This company is creating value, based on price, combined with customer service. Cost Leadership Strategy allows McDonald’s to keep production costs and customer prices low; meanwhile, Operational Excellence helps maximize the efficiency of the product development process to minimize costs, but creates a competitive advantage on operational excellence. Employees need to identify and follow efficient processes and engage in improvement practices. The big advantage of McDonald’s is mainly consistency, fast service, quality, and global coverage. This means that a traveler from the U. S. who wants to purchase a McDonald’s product in Asia, knows exactly what he will get. Consistency is very important for a lot of people who don’t like to experiment and by trying different food; that’s why McDonald’s is so successful. Another big advantage of this company is innovation, and listening to people and their needs, and wants. McDonalds staffing strategy consists of......

Words: 611 - Pages: 3

Mcdonald's Case Write-Up

...Gitlin MGMT 3800 Business Policy and Strategy Lowell Miller April 14, 2016 Kiara Gitlin Strategic Case Strategic Case I. Core Problem/Issue McDonald’s current challenges consist of many things including their menu, product quality, appealing to millennials, and labor concerns. The new president and CEO, Steve Easterbrook, came at a time when the corporate giant was on its knees in desperate need of way to get back up. One of bigger issues is product quality because it relates to getting the younger customer as well as how the company is perceived worldwide. McDonald’s is one the top 10 biggest brands according to Forbes and Easterbrook desperately wanted to improve public perceptions of the McDonald’s brand. McDonald’s wants to position themselves as a modern, progressive “healthy” burger company in a highly competitive market. Their size made them a convenient target, and more than a decade of negative press including the 2001 book “Fast Food Nation,” the 2004 documentary “Supersize Me,” and Jamie Kennedy’s 2012 “pink slime” exposé had taken its toll. In July 2014, the Big Mac earned the dubious distinction of being America’s worst hamburger, placing last out of 21 in a study by Consumer Reports. McDonald’s also ranked lowest among peers in the 2015 American Customer Satisfaction Index. Fast food restaurants overall dropped 3.8 percent, but McDonald’s fell by 6 percent from 2014, holding firm in the last spot. As the baby boomers get older, the......

Words: 4611 - Pages: 19

Mcdonald's Case Study

...PLCY-399 Case Study: McDonalds and Its Critics: 1973-2009 Mar 27th 2012 <McDonald’s And Its Critics: 1973-2009> is the most useful case that I’ve ever read about the McDonald’s. This case helped me fully understand the McDonald’s history from 1973 through 2009, as well as the reasons for its successes and failures through the years. Starting from the beginning, McDonald’s was a restaurant ran by two brothers Richard and Maurice, who managed this restaurant as a carhop drive-in restaurant in San Bernardino, California since 1930s. In the early 1950s, the brothers transferred the carhop service with self-service by simplifying the menu. In 1954, Ray Kroc, a salesman who supplied multitier milkshake machines to the McDonald brothers decided to observe the brothers at work. From his observation, Kroc noticed that McDonalds’ formula of services is distinctive from other restaurants in the food industry. Kroc is a smart guy that he knew the unique formula could bring him to success, so he made a smart and big decision to buy the right from the brothers to open McDonald’s restaurant franchises nationally. The first strategy that Kroc used is to rapidly open McDonald’s restaurants. Secondly, he introduced the Golden Arches logo and made the company went public. Kroc was an innovative man that he believed uniformity is a very important key to lead the franchising to success. At that time, uniformity was a revolutionary concept in the food service industry, so he made...

Words: 2108 - Pages: 9

Mcdonald's Hot Coffee Case

...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary  McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price.  McDonald’s has been the target of much criticism in......

Words: 5429 - Pages: 22

Mcdonald's Case

...Case Study – McDonald’s Case Study McDonald’s Worksheet 1- Introduction to McDonald’s p. 1 Quiz Which country does McDonald’s come from? The United States How big is McDonald’s among the restaurant chains in the world? The biggest. Worksheet 1: Introduction to McDonald’s The History and Development of McDonald’s McDonald’s was founded in 1955 by Mr. Ray. A. Kroc. The first McDonald’s was opened in Illinois. By August 2002, there were more than 30,000 McDonald’s in 121 places and countries all over the world, including Canada, the Caribbean, Europe, Central and South America, Australia, Japan, Korea, Southeast Asia, even Russia and China. It has the fastest growth rate in the restaurant industry. To read the history of McDonald’s, refer to McDonald’s official website: Case Study McDonald’s Worksheet 1- Introduction to McDonald’s p. 2 Setting Up Dates of McDonald’s Outlets in Different Places of the World 1955 Business started in the 1984 Taiwan United States 1967 Canada 1985 Thailand, Mexico 1971 Japan, Australia, Germany 1986 Turkey 1972 France 1988 South Korea 1973 Sweden 1990 China (Shenzhen SAR), Russia 1974 Britain 1991 Indonesia 1975 Hong Kong 1992 China (Beijing), Poland 1976 New Zealand 1993 Israel 1979 Brazil, Singapore 1994 Saudi Arabia 1981 The Philippines 1995 South......

Words: 451 - Pages: 2