1. History & Introduction2. Pestle Analysis3. 5 Forces Analysis4. SWOT Analysis5. Current Strategy & competitive advantage6. Problems & Recommendation
• Founded in 1948• Mr. Ray Kroc in San Bernardino, California• Sold 100 millionth hamburger in 1958 & bought the rights to the McDonalds Corporation name• 3-legged stool “In business for yourself, but not by yourself.”
Market Location Current Served Strategy• Fast food • Found in 119 • Cutting (Burgers, Fries, countries labor, food Drinks) • operates and utility• 58 million costs through over 31,000 implementing customers all age all restaurants Technology & gender/Day Innovation
• In 1994, Emirates Fast Food Company acquired the McDonald’s franchise• 100% locally owned• The first restaurant in Al- Ghurair City• More than 90 restaurants geographically located• Striving to Innovate “We offer people choice. We have salads, fruit, milk, soft drinks, fruit juices and we let people decide for themselves.”
• Civil & Political unrest in the Middle East.• Each Emirate has its own governmental institution.• A solid supporter of its economy• 80% of its supplies from local and regional suppliers in the Arab world.• Established a good system in determining the need market• McDonald’s UAE runs a wide range of altruistic initiatives in the UAE.
• Has revolutionized Fast food delivery.• From cash registers to POS.• Training through Nintendo DS.• Meat Should be Halal.• Food safety and hygiene certificates.• GCCs first step into a biofuels market with Neutral fuel
• Threat of competition HIGH – Very competitive Fast Food industry – Competitors Advertising Capabilities – Location of outlets – Major competitors- Burger King and YumBrand INC.• Threat of New Entrance HIGH – Regulation of Limit – Easy Access Market and Low start up cost – Example of SubWay’s market penetration• Threat of Substitutes Low-Moderate – Availability of the MCD products – Choose MCD for Easting and Entertainment – Narrows Threat of Substitutes due to introduction of local taste products.
• Power of Suppliers LOW – Worlds largest restaurant chain in sales – High bargaining power over its suppliers – Most of them owe MCD for their own existence – LOW the power of suppliers- LOWer the cost of raw materials and HIGH competitive price.• Power of Buyers LOW – Industry limitations – Low quantity purchases – Less chances of switching, high brand image thru differentiation and uniqueness – Buyers don’t have bargaining power
1. Has a good image in the 1. Over exposure all over minds of consumers. the world.2. Strong product value. 2. Children as their main target audience.3. Innovative in producing new product lines. 3. Slow drive-through services.
1. Partnership with UAE 1. Changes in commodity government to reduce prices carbon footprint 2. Emergence of other fast food2. Advertising strategy 3. competitors Hardees and KFC.3. They have the ability to 4. Heavy investments on add healthier lines of promotional food campaigns.
McDonald’s strategy is focused on1. Achieving the most powerful brand image2. product innovation and development3. Having the greatest market share in the ham burger industry.
• Their competitive advantage is that they have been in the fast food business for a longer time than their competitors.
• Nutritional issues – MCD taking away the traditional nutrition values – Replace the fresh and healthy food by mass production – Projection the product nutrition values – Comparison of daily consumption and MCD products – Serves 30million people daily• Advertising Issues – 2billion dollars for Advt annually – Concentrated on Children- Parental Concerns – MCD has a better advertising than its customers – Follows the advertising codes of each country – Making aware of MCD’s charity activities, events and learning programs
• Employment ethics and issues – Criticized as low paid jobs- named ‘McJobs’ – Low paid, non-union, part time jobs with low rights and conditions – Giving importance on individual goals than organizational goals – Fact of 1.5million workers with above 70% job satisfaction rate – Introduction of collective tips system