2. Overview
History
• started as a small hamburger
stand in California, owned by
Dick and Mac McDonald.
• Dick and Mac closed their
business for three months and re-
opened December 1948 as a self-
service drive-in restaurant.
• In 1954, Ray Kroc became the
first signs a franchise agreement
with Dick and mac McDonald
opening his first McDonald’s in
Des Plains, Illinois on April 15,
1955.
Mission
• McDonald's brand mission is to
be their customers' favorite place
and way to eat and drink.
• Their worldwide operations are
aligned around a global strategy
called the “Plan to Win,” which
center on an exceptional customer
experience; People, Products,
Place, Price, and Promotion.
3. Core Competencies
• Core intellectual assets.
• Product line enhancements.
• Market leadership and unique
brand recognition.
• Technological, financial and
physical assets.
Market Performance
Domestic VS. International
• In the U.S., second quarter
comparable sales decreased
2.0% . Operating income
for the quarter decreased
6%.
• Europe's second quarter
comparable sales increased
1.2% driven by solid
performance in the U.K.
and Germany. Operating
income decreased 20%.
4. Organizational Structure
• McDonald’s started
operating under a new
organizational structure
with four segments that
combine markets with
similar characteristics.
• U.S., International Lead
Markets, High Growth
Markets, Foundational
Markets & Corporate.
Major Competitors
• McDonald’s most
relevant competitors
include Burger King,
Wendy’s, Yum! Brands,
Popeye’s, and Chipotle.
On a broader basis,
McDonald’s restaurants
compete with
international, national,
regional, and local food
product retailers.
5. SWOT ANALYSIS
Strengths:
• 31,000 restaurants serving burgers and fries in almost 120
countries.
• Strong brand name, image and reputation:
• SPECIALIZED TRAINING FOR MANAGERS(Hamburger
University)
• Technology Innovative:(Brazil ) In 1961, Fred Turner, McDonald’s
former senior chairman and Ray Kroc’s first grill man, founded
Hamburger University in the basement of a McDonald’s restaurant
in Elk Grove Village, Illinois.
• February 24, 1961, Hamburger University's first class of 15
students graduated
• Today, more than 7,500 students attend Hamburger University each
year
• Since 1961, more than 80,000 restaurant managers, mid-managers
and owner/operators have graduated from this facility
• GOOD MARKETING MIX
• SUPPORTS CHILDREN HOSPITALS
6. Weaknesses
• Unhealthy food image.
•"Supersize Me" by Morgan
Spurlock(obesity).
• Customer loses due to fierce
competition.
•Problem related to health issue.
•High employee turnover rate.
7. Opportunities
• Growth of the fast food industry:
• Low cost menu is preferred by large number of
customers.
• Diverse tastes and needs of customers: (WIFI AND
ETC…)
• HEALTHIER FOOD OPTIONS.
9. What are the company’s
critical success factors in
their global competition?
• Custom range
• Nutrition
• Availability
• Affordability
10. What are the company’s core
competencies?
• worked with suppliers to implement chain of
custody certification
• 36,000 restaurants in more than 100 countries.
• providing a low cost food and fast service.
• cross-cultural competence provides leaders
with knowledge, skills, abilities, and attitudes
to operate in any culture.
11. What are the company’s major
business strategies?
• Value of money
• Customer
service
• Digital marketing
• Menu
standardization
• Breakfast menu
items
