IntroductionAIM:Describe an entrepreneur characteristicDiscuss: Reasons leading to successful or failure of business Past financial performance Projection of future business opportunities
IntroductionOBJECTIVESTo find out in details: If McDonald’s business is successful or failureTo get to understand the past financial performanceSearch for innovative and new future businessopportunities.Before full completion: Summarizing of work and conclusion is requiredTo benefit from it in future and gain more knowledge.
IntroductionEXECUTIVE SUMMARYThree questions to discussResearching for information is the 1st step beforestarting.Question A: Discuss why the companys business is successful or failing Reasons would be stated in it To support and determine: - If business is a success or failure
IntroductionEXECUTIVE SUMMARY (Continued)Question B: Past financial performance Good/bad in the recent few years. Analysis and judging required Through observation of finance performanceQuestion C: Projection of future business opportunities Requires new innovative ideas in products Launch in future that benefit them.
BackgroundBackground On McDonald’sMcDonald’s does not only provide quick mealsThey try to satisfy customers’ needs;Keep improving their product, services and qualityIn Singapore, on 27 October 1979 1st outlet:Liat’s TowersFrom neighborhood store, it becomes whole worldReceive Halal certification on September 1992 Muslims can taste their food too
BackgroundProduce good/popular products E.g. limited edition Hello Kitty and Dear Daniel wedding attire plush toysMcCafe was opened in year 2003Year 2004: Wi-Fi network Ez-link cashless payment/membershipYear 2005: goes 24 hours, 7 days a week No minimum order required To meet the customer’s needs.
BackgroundMcDonald’s supported the government by: E.g. launching vegetables out day; Hiring the handicaps to work.Regarding Charity: E.g.“McDonald’s World Children’s Day” - To help the needy children “Ronald McDonald Children’s charity” - Help the sick children
BackgroundEntrepreneur in Mcdonald’s1954:Ray Kroc took over this restaurant from McdonaldBrothersTurned it into: Most successful fast food operation in the world.His vision“We don’t dine – we eat and run” this quotation: Shows that he regarded it as a place to sell service, not just food
Question AQuestion: Why the business of Mcdonald’shas been successfulAnswers:Products Well-known and Successful products e.g. Big Mac, Breakfast menu Various menus Launching of new products frequently
Question APrinciples Basic Principles :Quality, service, cleanliness, and value Motto: “Great service begins with me”Pioneer of innovation Improve the customer’s satisfaction by cutting-edge technology. Free WIFI access, Ez-link card cashless payment
Question AAdvertisementSpend huge amount of money in advertisement Golden arches Global tagline “I’m loving it”Franchise Now Mcdonald’s has more than 30,00 franchise restaurantin over 100 countries
Question BQuestion: Past financial performanceIn 2007,6.8% of global comparable sales increase.$23 billion in total revenues, which they set a highrecord of the sales.25% of three-year compounded annual return toshareholders,Which is more than double the three-year returns ofthe S&P 500 and the Dow Jones Industrial Average.
Question BFor 3 consecutive yearsMcDonald’s has been included in the Dow JonesSustainabilityIndex reflecting our ongoing socialresponsibility efforts.Dividends have increased every year since thefirst paid in 1976.Their average annual system wide sales andrevenue increase: from 3% to 5%Average annual operating income also increasefrom 6% to 7%
Question BThe company sold its investment in Boston marketCash provided by operations increased $535 millioncompared to 2006Total assets increased by: $417 million or 1% debt obligations at Dec 31 2007, Totaled $9.3 billion, compared with $8.4 billion on 31 December 2006The company recorded a $316 million benefits
Question CQuestion:Projection of future opportunities for the businessAnswers:L ast month,The Olympic Games in chinaMcDonalds launch gifts.Five cups of one set
Question CThe FORMULA 1 in SingaporeMcDonalds going to launch giftsToy of the racing carsDoll of the racing driversCap with the F1 logo
Question CMake the contract with telecommunicationline New serve with SMS Check the menu with phone Order meal everywhere by SMSMake the contract with music/moviecompanies
Question CPoints with member card can: Get free movie tickets (e.g. Wall.E) Get discount voucher for CD (e.g. Stephanie Sun Album)Let McDonalds become one part of our life WE ARELOVING IT
ConclusionDiscussion of the companys success or failure: Consists of pros and cons Makes thinking process confuse at times May have led us on the wrong track due to improper analyzeCame to know that success or failure depends on: Their way of operating performance and strategyTends to use tactic such as comfortable environment for: Chatting with others Having playground section for young children to enjoy
Conclusion Parents can take a breakHaving a coffee house for: Elderly to sit and relax themselves. These reveals its target groups can be quite a wide scope.McDonald’s always grabs the opportunities Such as the series of cups with different types of sportsHowever, we have difficulties in: Getting more detailed information in their product that attracts customers
ConclusionCaused us to think back about: What other products that is success/failure to themGain Know ledge on: Attributes of an entrepreneur in McDonalds, Reason why McDonalds has been successfulAnd also understand: Former financial performance and Projection of future opportunities for McDonalds
ConclusionKept attempting to come up with new andbetter idea: From many perspective To satisfy the different needs of customers.As a result of these: McDonalds has become an extraordinary benchmark Others want to follow and imitate
ConclusionRegarding financial performance:It is a successful business in food and beverages companyMcDonald shows: How they manage to evolve to be a successful restaurant in the world. They manage to use the money effectively. Increase in revenue and net income represents that the company has been growing.
ConclusionLastly, for McDonald’s future opportunities: To research sufficient FORMULA 1 information Reading up on McDonalds previous advertisement - To understand their publicity tacticsContinue to follow the trend for: Needs of the market, Multilateral and enterprisesRequired to comprehend customer needs to: Attract more customers.