Book review - Mcdonald behind the arches - Rahul

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Book review - Mcdonald behind the arches - Rahul

  1. 1. Project :Book Review Prof. Naik We School
  2. 2. •How Mc Donald works ?? •Terms of its corporate management •Food production •Product development •Franchiser-franchisee relations. •Ray Kroc as a crucial figure and a brilliant manager and salesman. •Contribution of people towards the growth and success of McDonald's in important way. About the Book
  3. 3. Founders • Richard and Maurice McDonalds. Key People •Ray Kroc - Individual promoted the Multimixer and through its promotion, met the McDonalds brothers. •Fred Turner - Second Chairman and CEO of McDonald corporation •Jim Schindler- Head of McDonalds Engineering and Design corporation (Key person in real estate bussiness)
  4. 4. Recipe behind the Success Strategy Quality Products Adaptability to changes Organize Operations Management Customer Centric Robust Strategy
  5. 5. Big Idea.. Franchising • On March 2nd, 1955 McDonald's come up with franchising. • It was all Kroc's innovations in franchising. He knows that the business will become cutthroat... • McDonald's looks for the best locations within the marketplace to provide our customers with convenience. We build quality restaurants in neighborhoods as well as airports, malls, tollways, and colleges at a value to our customers. • You'll find that our restaurants reflect our commitment of giving back to the communities in which we do business. When you walk into any one of our restaurants, you walk into a brand that extends into the community. Whether our restaurants are built with a playplace in your local neighborhood or a business center in your local airport, we aim for every customer in every restaurant to have the best quick-service restaurant experience, every time.
  6. 6. Franchising.. Small idea gives enormous output. McDonalds by brothers Mr. Ray Kroc and his idea ‘Franchisees’
  7. 7. Expand by Marketing . • McDonald's is an essential piece of Americana and one of the most iconic brands in the world. The famed golden arches are recognized by more people than the cross and even the Queen of England owns a franchise. • From early on, founder Ray Kroc focused on the restaurant's marketing orientation, or what the customer wants in a product, rather than selling the product itself. McDonald’s has since "become a mastermind of marketing toward specific markets by pioneering ideas such as breakfast menus, healthier choices and alternatives, and 'adult' foods.“
  8. 8. Sources - Television - Radio - Print Media - Charities
  9. 9. On what they worked later: People management, Learning factor etc.. What they has: Business idea, Strong products and customers centric services etc.. Possession and Improvement.
  10. 10. 1 • We place the customer experience at the core of all we do • We are committed to our people. 2 • We believe in the McDonald’s System. • We operate our business ethically. 3 • We give back to our communities • We grow our business profitably & We strive continually to improve. Vision and Mission..
  11. 11. Strategies applied .. Permanent Product Strategy. Temporary Product Strategy Local Product Development Strategy Local Adaptation Strategy Strategies applied ..
  12. 12. Contribution in success. Quick decision making. Adaptability. Continuous improvements Cost reduction best utilization of resources. Bitter lessons of diversifications 1 Hottinger’s 2 Western World 3 Ramond’s Products on menu boards from Germany Hamburger university, McDonald Farms, Franchising.
  13. 13. Secret behind the “Arches” is making money” Mr. Ray Kroc Highly Concentrating on disciplined Operation System Never seen business by profit & loss statement financial Strength- 1956 Receives franchise fees 1.9% on food sales out of that 0.5% royalty fees paid to McDonald Brothers no motive to make reserve or wealth creation which require for long run.
  14. 14. Making money The rent due to McDonald's could be even more if the restaurant was doing well. The franchisee had to pay either the stipulated lease markup or 5 percent of the sales -- whichever was higher. Kroc and Sonneborn also requested up- front security deposits from the franchisees this capital would fund the opening of more restaurants. As a result company owns 69% of its U.S units & 35 % of tis International Units by end of 1991 net book value equaled$8.8billion and 90% of profit comes from real estate
  15. 15. Final facts about their success • Operating Cost less as compare with revenue • Dedicated suppliers • Restaurant property Liabilities are Less • Long term debt • capital management • Property & Equipment
  16. 16. People Behind Presentation..  1. Pooja Anchan.  2. Rahul B.  3. Shruti Bakare.  4. Balakrishnan.  5. Dipti Bhalerao.  6. Pooja Bhave.  7. Shreya Chakrabarti.  9. Tejas Dedhia.

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