SM 3027 Strategic Management<br />Presented by :<br />* Pang SzeTyng<br />* Leong Poo Yee <br />* Ng Wei Leon<br />* Lee Chie Yoong<br />
Company Background<br />McDonald's Corporation - world's largest chain of fast food restaurants<br />sells various fast food items and soft drinks<br />In 1955, Raymond Albert Kroc founded the McDonald's Corporation and opened the first restaurant. <br />
Mission & Vision Statement<br />mission <br /> - is to be the customers' favourite place and way to eat<br /> - improve their operations<br />vision <br /> - to be the best and leading fast food provider around the <br /> globe <br /> - to be the world's best quick service restaurant experience. <br />
Values<br />place the customer experience at the core of all they do<br />are committed to the people<br />believe in the McDonald’s System<br />operate their business ethically<br />give back to their communities<br />strive continually to improve<br />grow their business profitably<br />
Net Profit Margin<br /><ul><li> The net profit margin have decreasedfrom year 2008 to year 2009
Although the operating cost and expenses has improved, however, the revenue has brought down the overall performance.
McDonald’s can try to introduce more variety in order to attract more customer back.</li></li></ul><li>Current Ratio<br /><ul><li> Based on the current ratio calculate, it have shown that the McDonald’s has incurred an additional cost which is the income taxes in year 2009.
In addition, the accrued payroll and other liabilities has increased too.
This has increased the current liabilities of the company.
However, the company has trying to pay their liabilities with their cash which shown in their balance sheet.</li></li></ul><li>Return on capital employed<br /><ul><li> This ratio indicates how profitable the company has been for its shareholders.
The ratio has slightly improved during the year.
This can be shown in their balance sheet figure which are the retained earnings and the accumulated other comprehensive income has increased.</li></li></ul><li>Interest cover<br /><ul><li> This is the ratio of considering gearing to look for the profit and loss account by assessing the degree of profits cover the firm has to meet its interest payments.
This can be shown that the ratio has increased and the company able to pay the taxation and dividends.</li></li></ul><li>Internal Capabilities<br />strong global presence<br />one of the world’s most recognized logos<br />adapts to the cultural differences regarding the region where the restaurant is set up.<br />first to provide the customers about nutrition facts.<br />
SWOT analysis<br />Strength<br />One of the best brand recognition in the world<br />Global operations all of the world<br />Cultural diversity in the foods that are provided based on the location of the restaurant<br />Weaknesses<br />Very minimal concentration on providing organic foods<br />Quality concern due to franchised operation<br />Focus on burger and fried foods for their customer option<br />
SWOT analysis<br />Opportunities <br />Breakfast and special noon meals<br />Continue to venture into more beverage choices<br />Open more joint venture with several retailers<br />Threats<br />Down turn in economy affecting the ability to eat out as much<br />The vast amount of eat in fast food restaurants that are open as competition.<br />
Kentucky Fried Chicken (KFC)<br />Pizza hut<br />global fast food chain, a subsidiary of Yum! Brands Inc.<br />founded in Wichita, Kansas, USA in 1958<br />operations in about 91 countries worldwide<br />a chain of fast food restaurants based in Louisville, Kentucky<br />was founded by Colonel Harland Sanders in1952.<br />more than 11,000 restaurants in over 80 countries<br />
Strategic objectives<br />Pizza Hut<br /><ul><li>satisfy their customers by offering them “The best”.
strong brand name and quality service </li></ul>KFC<br /><ul><li>strong financial background
is familiar with the logistical and quality problems
Environmental Friendliness</li></li></ul><li>Competitive advantages<br />McDonald’s<br />world recognition associated with the brand McDonald’s itself.<br />a front running company <br />
Competitive advantages<br />innovators in their industry by creating revolutionary ideas<br />a new premium coffee line that is taking business from Starbucks.<br />consumers have come to know and trust<br />
External relationship<br />Partnership with supplier such as<br />Coca-Cola- ( Exclusive partnership )<br />Nestle<br />To ensure customers serve by healthier, fresher and higher quality food<br />Foods in McDonald's <br /> supplied by brand name companies that every people know and trust. <br />
External relationship<br />Sponsorship with Major Tournament<br /><ul><li>2008 Beijing Olympic
brought the excitement of the world’s most watched sporting event to life
also proudly to served millions of athletes, soccer player, their families and fans</li></li></ul><li>External relationship<br />Partnership with Walt Disney<br /><ul><li>McDonald's restaurants around the world brought Disney's hottest new film releases, videos and television properties to life.
From Happy Meal‚ toys are special premiums from Walt Disney Cartoon Characters.</li></li></ul><li>McDonald's – in future<br />continue to drive success in 2011 and beyond. <br />“better, not just bigger”<br />Increase customer visits and grow market share by pursuing initiatives in three key areas: -<br />service enhancement, restaurant reimaging and menu innovation. <br />
McDonald's – in future<br />elevate the brand experience encompass updating their technology with a new point of sale system, enhancing restaurant manager and crew retention and productivity<br />upgrading their restaurant<br />leverage technologies - to enhance the customer experience and help speed service.<br />