Cheryl Wilcox Dale Brockway Marc Camerlin Belisa Anzalotti McDonald’s
Agenda Company Background SWOT Analysis Strategies: Past and Future
McHistory <ul><li>Ray Kroc opens the Des Plaines restaurant in 1955.  First day’s revenues - $366.12 </li></ul><ul><li>In ...
McHistory <ul><ul><li>Egg McMuffin is introduced in 1973; Developed by owner operator Herb Peterson </li></ul></ul><ul><ul...
Fascinating McFacts <ul><li>Today, the company operates more than 23,500 restaurants in 109 countries  </li></ul><ul><li>S...
Franchising McFacts <ul><li>Approximately 85% of McDonald’s restaurant businesses world-wide are owned and operated by fra...
McDonald’s Strategic Issue <ul><li>To Consistently Increase Shareholder Value through the Growth of Profits and Market Sha...
SWOT Analysis - Strengths <ul><li>Brand Equity…world-wide </li></ul><ul><li>42% of US fast-food hamburger business </li></...
SWOT Analysis - Weaknesses <ul><li>Declining market share </li></ul><ul><li>Weak product development </li></ul><ul><li>Dis...
Whose food do Americans really like best? <ul><li>Best-tasting food? </li></ul><ul><li>Wendy’s   36% * </li></ul><ul><li>B...
SWOT Analysis - Weaknesses <ul><li>Declining market share </li></ul><ul><li>Weak product development </li></ul><ul><li>Dis...
Income Trends
Stock Price
<ul><li>International expansion </li></ul><ul><li>Only serving 1% of the world’s population </li></ul><ul><li>Growing dini...
<ul><li>Mature/overstored industry </li></ul><ul><li>Strength of competition </li></ul><ul><li>More health-conscious consu...
1997 Competitor Financial Comparison
Past McStrategies <ul><li>Product Development </li></ul><ul><ul><li>Successes: Fries, Happy Meal, Big Mac, Egg McMuffin, P...
Past McStrategies <ul><li>Market Development </li></ul><ul><ul><li>Success: International growth </li></ul></ul><ul><ul><l...
New McStrategies <ul><li>Leverage Brand Equity </li></ul><ul><li>Product Development: Focus on core business </li></ul><ul...
New McStrategies <ul><li>Joint Venture (Franchisee): Change methods of dealing with franchisees </li></ul><ul><ul><li>To b...
New McStrategies <ul><li>Market Penetration and Development </li></ul><ul><ul><li>Continue International expansion </li></...
Cheryl Wilcox Dale Brockway Marc Camerlin Belisa Anzalotti McDonald’s
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Mc Donald

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  • Mc Donald

    1. 1. Cheryl Wilcox Dale Brockway Marc Camerlin Belisa Anzalotti McDonald’s
    2. 2. Agenda Company Background SWOT Analysis Strategies: Past and Future
    3. 3. McHistory <ul><li>Ray Kroc opens the Des Plaines restaurant in 1955. First day’s revenues - $366.12 </li></ul><ul><li>In 1965, McDonald’s goes public with the company’s first offering on the stock exchange </li></ul><ul><li>In 1967, Jim Delligatti invents the Big Mac </li></ul><ul><li>“Makadonaldo” first opened in 1971 (Japan) </li></ul>
    4. 4. McHistory <ul><ul><li>Egg McMuffin is introduced in 1973; Developed by owner operator Herb Peterson </li></ul></ul><ul><ul><li>In 1974 Fred Hill of the Philadelphia Eagles teams up with McDonald’s to create the Ronald McDonald House </li></ul></ul><ul><ul><li>Happy Meals (1979) </li></ul></ul>
    5. 5. Fascinating McFacts <ul><li>Today, the company operates more than 23,500 restaurants in 109 countries </li></ul><ul><li>Since its founding in 1955, McDonald’s has sold well over 100 billion hamburgers </li></ul><ul><li>McDonald’s prepares more than 6.8 million pounds of French fries every day </li></ul><ul><li>More than 50,000 students have graduated from “Hamburger University” </li></ul>
    6. 6. Franchising McFacts <ul><li>Approximately 85% of McDonald’s restaurant businesses world-wide are owned and operated by franchisees </li></ul><ul><li>All franchisees are independent, full-time operators </li></ul><ul><li>McDonald’s was named Entrepreneur’s number-one franchise for 1997 </li></ul>
    7. 7. McDonald’s Strategic Issue <ul><li>To Consistently Increase Shareholder Value through the Growth of Profits and Market Share in the Fast Food Industry </li></ul>
    8. 8. SWOT Analysis - Strengths <ul><li>Brand Equity…world-wide </li></ul><ul><li>42% of US fast-food hamburger business </li></ul><ul><li>Consistency of food </li></ul><ul><li>Successful items: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions </li></ul><ul><li>Overseas market </li></ul><ul><li>Balance sheet position </li></ul>
    9. 9. SWOT Analysis - Weaknesses <ul><li>Declining market share </li></ul><ul><li>Weak product development </li></ul><ul><li>Disgruntled franchisees </li></ul><ul><li>Quality and taste of products </li></ul>
    10. 10. Whose food do Americans really like best? <ul><li>Best-tasting food? </li></ul><ul><li>Wendy’s 36% * </li></ul><ul><li>Burger King 32% </li></ul><ul><li>McDonald’s 21% </li></ul><ul><li>Best-tasting burgers? </li></ul><ul><li>Burger King 42% </li></ul><ul><li>Wendy’s 32% </li></ul><ul><li>McDonald’s 17% </li></ul>* Percent of respondents
    11. 11. SWOT Analysis - Weaknesses <ul><li>Declining market share </li></ul><ul><li>Weak product development </li></ul><ul><li>Disgruntled franchisees </li></ul><ul><li>Quality and taste of products </li></ul><ul><li>Slowed revenue and income growth </li></ul>
    12. 12. Income Trends
    13. 13. Stock Price
    14. 14. <ul><li>International expansion </li></ul><ul><li>Only serving 1% of the world’s population </li></ul><ul><li>Growing dining-out market </li></ul>SWOT Analysis - Opportunities
    15. 15. <ul><li>Mature/overstored industry </li></ul><ul><li>Strength of competition </li></ul><ul><li>More health-conscious consumers </li></ul><ul><li>Changing demographics </li></ul><ul><li>Fluctuation of foreign exchange rates; Economies </li></ul>SWOT Analysis - Threats
    16. 16. 1997 Competitor Financial Comparison
    17. 17. Past McStrategies <ul><li>Product Development </li></ul><ul><ul><li>Successes: Fries, Happy Meal, Big Mac, Egg McMuffin, Promotions </li></ul></ul><ul><ul><li>Failures: McPizza, Fajita, Carrot Sticks, McLean, and the Arch Deluxe </li></ul></ul>
    18. 18. Past McStrategies <ul><li>Market Development </li></ul><ul><ul><li>Success: International growth </li></ul></ul><ul><ul><li>Failure: Over-expansion in US </li></ul></ul><ul><ul><ul><li>Alternative locations </li></ul></ul></ul><ul><li>Forward Integration </li></ul><ul><ul><li>Distribution through franchisees with control over store presentation, menu items </li></ul></ul><ul><li>Joint Venture: Franchisees </li></ul>
    19. 19. New McStrategies <ul><li>Leverage Brand Equity </li></ul><ul><li>Product Development: Focus on core business </li></ul><ul><ul><li>Quality and taste issues </li></ul></ul><ul><ul><ul><li>Food delivery methods </li></ul></ul></ul><ul><ul><ul><li>MBX (McDonald’s Big Extra) </li></ul></ul></ul><ul><ul><li>Family Value Meal </li></ul></ul>
    20. 20. New McStrategies <ul><li>Joint Venture (Franchisee): Change methods of dealing with franchisees </li></ul><ul><ul><li>To better motivate owners and foster team spirit </li></ul></ul><ul><ul><li>Enhance owners’ participation in process improvements </li></ul></ul>
    21. 21. New McStrategies <ul><li>Market Penetration and Development </li></ul><ul><ul><li>Continue International expansion </li></ul></ul><ul><li>Retrenchment </li></ul><ul><ul><li>Home office cost reductions </li></ul></ul><ul><ul><li>Splitting into five geographic divisions </li></ul></ul><ul><li>Horizontal Integration </li></ul><ul><ul><li>Purchase competition with differing target markets </li></ul></ul>
    22. 22. Cheryl Wilcox Dale Brockway Marc Camerlin Belisa Anzalotti McDonald’s
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