Destiny   Strategy   Culture   Experiences
McDestiny   McStrategy   McCulture   McExperiences
McDestiny

}
McDonald’s exists to revolutionize the
  fast food industry’s practices to
  enhance the welfare of society.
             ...
McStrategy

}
}
Strategic Heritage
Specialize                Focus on
in burger                 families &
  sales                    children




}   1948  ...
Intensive
                       I’m Lovin’ It
   global
                        campaign
expansion




                  ...
}
Strategic Environment
know thy enemy
                 fast food chains
         coffee joints & bakeries
   casual fast-dining restaurants
the power of context
       strong criticism against obesity
trend watching
       dining experience
     hamburger business
      breakfast & snacks
}
Strategic Growth
Plan to Win
}
              people

              products


          }   places
Plan to Win

              prices

              pro...
McDonald’s Brand Value
2007
2006
2005
2004




       0   7,500   15,000        22,500          30,000
                   ...
}
Strategic Positioning
think & act different
Breakfast               24/7                  24/7
from 4a.m.            Drive-thru             McDelivery




           ...
GROIP
Global Restaurant Operations Improvement Process
Food Improvement Team
Quality, Service, Cleanliness & Value
McCulture

}
How is McDonald’s organized?
}
    40 Employees



    10 Managers




}   Local owners


    Rigorous Food
    Safety Standards


    $2m a year busin...
?       ?

           }
the
three-legged
stool
                   ?
owners/
operators
suppliers
employees
Evaluate Jim
finding the right people
                 hiring practices
                         diversity
               people princip...
Crew
         Trainer       Systems         Business
       Development    Management      Management

Crew              S...
Area          Department




                                               }
         Supervisor        Manager
         ...
1/2
of the executive team came
      from a restaurant
McJob
79.1%
  feel valued
81.6%
 would recommend to a friend
promise of golden arches
Employee has an
              ethics or compliance
              question or concern.




 Employee speaks
               ...
McExperience

}
brand identity & global impact
“...set of brand associations...
 which represent what the brand
strands for and imply a promise to
             customers...
$20b
 business
120
 countries
30,000
  restaurants
50m
 people
McDonaldization
product
SuperSized
Food Studio
price
product + price = value
Branded
 Everyday
Affordability
promotion
Courtesy of Edelman Asia Pac.
place
}
Enter the Brand
“Re-imaging is essential in the
competitive world of retail. We need
  to avoid aging faster than our
            customer...
financial
    analysis

}
Old strategy:
Growth through
  expansion
54%
Debt - 1997 to 2002
35%
Increase in Stores - 1997 to 2002
37%
2000 - 2002 Operating Income
55%
2000 - 2002 Net Income
$40.31
    1999




$16.08
    2002


 Stock Price
“Adding customers to the
restaurant” instead of “adding
 restaurants to the customer”
       -CEO Jim Skinner, on Plan to Win
32,000


                                                          2.5%
29,000




26,000




23,000




20,000
      1997...
$25,000




                  $21,250
                                                                         42%
US$ in ...
$4,445.00


                                                                   109%
                  $3,333.75
US$ in Mil...
$5,000

                                                                               50%
                  $4,000
US$ in...
$1.00

                                                       $1.00
$0.75




$0.50




$0.25




  $0
    1997   1998   1...
$50

                                                     $44.33
$40




$30




$20




$10
   1997   1998   1999   2000 ...
$57.10
 Stock Price Today
Change in Brand Value
                  $22,000

                                                          41%

          ...
challenges &
    opportunities

}
Challenges
      customer worries
  saturation in the U.S.
       new competition
Opportunities
   growth in India & China
       cashless payment
       greying population
McDonald’s exists to revolutionize the
  fast food industry’s practices to
  enhance the welfare of society.
             ...
i’m lovin’ it
are you?
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
McDonald's
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McDonald's

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Presentation for Strategic Brand Management. (Year 4 Term 1)

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  • I will be happy to have a copy of this presentation. If you could send it to vikram.totre@gmail.com I would really appreciate it!
    Regards
    Vikram Totre
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  • I will be happy to have a copy of this presentation. If you could send it to vikram.totre@gmail.com I would really appreciate it!
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    Vikram Totre
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  • Great work if you are sharing this I would love a copy
    farshad.mahlooji@yahoo.com
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  • the most concise presentation I have seen on Mcd. can I please have a copy at bekims25@gmail.com
    would really appreciate it....thank you
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  • Great work if you are sharing this I would love a copy jimeich40@gmail.com
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McDonald's

  1. 1. Destiny Strategy Culture Experiences
  2. 2. McDestiny McStrategy McCulture McExperiences
  3. 3. McDestiny }
  4. 4. McDonald’s exists to revolutionize the fast food industry’s practices to enhance the welfare of society. - brandFolio
  5. 5. McStrategy }
  6. 6. } Strategic Heritage
  7. 7. Specialize Focus on in burger families & sales children } 1948 1963 1953 1974 Ronald Ray Kroc’s McDonald franchise Charity House
  8. 8. Intensive I’m Lovin’ It global campaign expansion } 1990’s 2003 2002 2006 Balanced Plan to Win Active Lifestyle
  9. 9. } Strategic Environment
  10. 10. know thy enemy fast food chains coffee joints & bakeries casual fast-dining restaurants
  11. 11. the power of context strong criticism against obesity
  12. 12. trend watching dining experience hamburger business breakfast & snacks
  13. 13. } Strategic Growth
  14. 14. Plan to Win
  15. 15. } people products } places Plan to Win prices promotions
  16. 16. McDonald’s Brand Value 2007 2006 2005 2004 0 7,500 15,000 22,500 30,000 Brand Value ($m) Interbrand
  17. 17. } Strategic Positioning
  18. 18. think & act different
  19. 19. Breakfast 24/7 24/7 from 4a.m. Drive-thru McDelivery 24/7 Dessert McCafe Dining Kiosks
  20. 20. GROIP Global Restaurant Operations Improvement Process
  21. 21. Food Improvement Team
  22. 22. Quality, Service, Cleanliness & Value
  23. 23. McCulture }
  24. 24. How is McDonald’s organized?
  25. 25. } 40 Employees 10 Managers } Local owners Rigorous Food Safety Standards $2m a year business Community & charitable causes
  26. 26. ? ? } the three-legged stool ?
  27. 27. owners/ operators
  28. 28. suppliers
  29. 29. employees
  30. 30. Evaluate Jim
  31. 31. finding the right people hiring practices diversity people principle’s awards
  32. 32. Crew Trainer Systems Business Development Management Management Crew Shift Restaurant Management Management Global Training, Learning & Development Path
  33. 33. Area Department } Supervisor Manager Program Program Training Field Leadership Consultant Service Development Program Operation Program Program
  34. 34. 1/2 of the executive team came from a restaurant
  35. 35. McJob
  36. 36. 79.1% feel valued
  37. 37. 81.6% would recommend to a friend
  38. 38. promise of golden arches
  39. 39. Employee has an ethics or compliance question or concern. Employee speaks Employee calls If not with the direct resolved the Business supervisor or Integrity Line. other appropriate 1-800-261-9827 manager. Concerns Questions Global Compliance Global Office Compliance assigns ID# for Office confidentiality & provides initiates an guidance. investigation if necessary. Employee makes an Issue is resolved. informed decision.
  40. 40. McExperience }
  41. 41. brand identity & global impact
  42. 42. “...set of brand associations... which represent what the brand strands for and imply a promise to customers...” - David Aaker, Building Strong Brands
  43. 43. $20b business
  44. 44. 120 countries
  45. 45. 30,000 restaurants
  46. 46. 50m people
  47. 47. McDonaldization
  48. 48. product
  49. 49. SuperSized
  50. 50. Food Studio
  51. 51. price
  52. 52. product + price = value
  53. 53. Branded Everyday Affordability
  54. 54. promotion
  55. 55. Courtesy of Edelman Asia Pac.
  56. 56. place
  57. 57. } Enter the Brand
  58. 58. “Re-imaging is essential in the competitive world of retail. We need to avoid aging faster than our customers” - Mr. Hennequin, head of McDonald’s restaurance France
  59. 59. financial analysis }
  60. 60. Old strategy: Growth through expansion
  61. 61. 54% Debt - 1997 to 2002
  62. 62. 35% Increase in Stores - 1997 to 2002
  63. 63. 37% 2000 - 2002 Operating Income
  64. 64. 55% 2000 - 2002 Net Income
  65. 65. $40.31 1999 $16.08 2002 Stock Price
  66. 66. “Adding customers to the restaurant” instead of “adding restaurants to the customer” -CEO Jim Skinner, on Plan to Win
  67. 67. 32,000 2.5% 29,000 26,000 23,000 20,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Total Systemwide Restaurants
  68. 68. $25,000 $21,250 42% US$ in Millions $17,500 $13,750 $10,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Revenue
  69. 69. $4,445.00 109% $3,333.75 US$ in Millions $2,222.50 297% $1,111.25 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Operating Income Net Income
  70. 70. $5,000 50% $4,000 US$ in Millions $3,000 $2,000 $1,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Cash Flow from Operating Activities
  71. 71. $1.00 $1.00 $0.75 $0.50 $0.25 $0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Divided per Share
  72. 72. $50 $44.33 $40 $30 $20 $10 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Year-end Stock Price
  73. 73. $57.10 Stock Price Today
  74. 74. Change in Brand Value $22,000 41% $16,500 US$ in Millions $11,000 $5,500 18% $0 2002 2003 2004 2005 2006 McDonald’s Wendy’s
  75. 75. challenges & opportunities }
  76. 76. Challenges customer worries saturation in the U.S. new competition
  77. 77. Opportunities growth in India & China cashless payment greying population
  78. 78. McDonald’s exists to revolutionize the fast food industry’s practices to enhance the welfare of society. - brandFolio
  79. 79. i’m lovin’ it
  80. 80. are you?

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