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McDonald's
FAST FOOD INDUSTRY
INDUSTRY ANALYSIS
 The Global Fast Food Restaurants industry has managed to grow over the
past five years despite being b...
Contd..
 Over the five years to 2013, revenue is expected to grow at an

average rate of 2.5% per year.
 Industry revenu...
INDUSTRY SHARE
GROWING FIRMS
COMPANY PROFILE
FOUNDED & FOUNDER



May 15, 1940 in San Bernardino, California McDonald's
Corporation, April 15, 1955 in Des Plaines, Il...
BASIC INFORMATION
Number of locations
Revenue
Operating income
Net income
Total assets
Total equity
Employees

34,000+ wor...
OBJECTIVE & METHODOLOGY USED
OBJECTIVE : To do a GAP analysis of McDonald’s.
METHODOLOGY : We took the responses from 50 c...
FOR CUSTOMERS
No of male and Female

[PERCENTAGE]

52%

MALE
FEMALE
AGE GROUP OF RESPONDENTS
2%
8%

10 to 20
21-30

18%

31-40
Above 40

72%
DOES MCDONALD’S COLLECT INFORMATION
ABOUT YOUR TASTES AND PREFERENCES ?

35%

YES

65%
NO
How often does McDonald’s informs you about its
new product & services through mail and other
sources ?

17%
WEEKLY

30%

...
How much are you satisfied with the counter ordering &
delivery system in McDonald’s on scale of 1 to 10 ?

16

14

14
12
...
ARE YOU SATISFIED WITH THE NEW PRODUCTS AND
INFORMATION AVAILABLE ABOUT PRODUCTS.
4%

EXCELENT
GOOD
SATISFACTORY

49%
47%
HOW WELL IS MCDONALD’S STORE LAYOUT DESIGNED

AND OTHER EQUIPMENT'S PLACED ?

13%
26%
EXCELENT
GOOD
SATISFACTORY

61%
How is the service delivery in terms of
consistency
7%

EXCELENT

28%

GOOD
SATISFACTORY

65%
HOW MCDONALD’S EMPLOYEES GREETS YOU
DURING THE TIME OF SERVICE DELIVERY?
2%
8%

WITH SMILE

WITH
SHAKE

HAND

90%
WITH AN ...
How Do You Rate Service Delivery During Peak
Hours On Scale Of 1 To 10?

12
10

10

9
8

8

9
8

6

6
4
2

2
0

0

0

0

1...
How effective is the promotional ads of McDonald’s in
conveying information about its products?

INFORMATIVE

NEEDS
IMPROV...
How do you feel regarding prices of McDonald's
products?
0%

15%
HIGH PRICED
MEDIUM
LOW

85%
Do You Think You Are Delivered A Quality
Product For The Prices Charged?

TO GREATER
EXTENT

25%

TO
SMALL
EXTENT

75%
Does McDonald’s provides what was promised
to you ?

8%
yes
no

92%
Gap Analysis Within
The Organisation
How Often Do Employees And Managers Interact
And Have Meetings Regarding Customer
Expectations
0%

Monthly

Quarterly
Week...
Service Delivery Employees Or Contact Employees
Are They Given Preference To Share Their Views ?

25%

Yes

No

75%
How well does company plan to recover from
service failures?

Nice, When we call
Interacting with customers
Interact cu...
Are Employees Given Training And Information On
New Products?

0%

Yes

No

100%
How effectively does the company
recruit, hire, train, compensate, and empower
employees on scale of 1 to 10 ?

10
9
8
7
6...
Do customers fulfill their roles ?

No, not at all
25%
Yes to an extent
To lesser extent
No, not at all

To lesser extent
...
Does the company avoid overpromising and
overselling?

0%

Yes We Do

No We Dont

100%
Does the company price in line with customer
perceptions of value?

0%

Yes
No

100%
FINDINGS
 During the survey it was found that most of the customers where of aged
between 15 to 30 & the sex ratio was re...
Contd..
 Customers where happy with Mc Donald's service delivery during normal
time but during peak hours service deliver...
FINDINGS
 Employees and top management interacted monthly and weekly based on
requirement and lower level employees not i...
Suggestions
 Mc Donald's should focus on informing customers about new products
through mails and other sources and also ...
Contd..
 Mc Donald's should focus on maintaining their combo product strategies
like



Aap ke Jamane Main Baap ke Jaman...
SHASHI KUMAR M . R
MBA

NEW HORIZON COLLEGE OF MANAGEMENT STUDIES
 Gap analysis of Mc donalds with respect to fast food industry
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Gap analysis of Mc donalds with respect to fast food industry

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Gap analysis of Mc donalds with respect to fast food industry.
Gap analysis helps to identify the gap between the customers expectation and managment perception.
it help company under stand gaps internal and external

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Gap analysis of Mc donalds with respect to fast food industry

  1. 1. McDonald's
  2. 2. FAST FOOD INDUSTRY
  3. 3. INDUSTRY ANALYSIS  The Global Fast Food Restaurants industry has managed to grow over the past five years despite being battered by a weakened global economy and society's increasing awareness of the health risks associated with a diet high in fat, salt and sugar.  The industry experienced steady and growing demand from emerging economies  The industry's attempts to respond to changes in consumer preferences have also supported revenue growth.
  4. 4. Contd..  Over the five years to 2013, revenue is expected to grow at an average rate of 2.5% per year.  Industry revenue declined 2.6% in 2009, but bounced back 4.4% in 2010 and continued growing through 2011 and 2012.  In 2013, revenue is expected to grow an additional 3.6% to total $526.2 billion.
  5. 5. INDUSTRY SHARE
  6. 6. GROWING FIRMS
  7. 7. COMPANY PROFILE
  8. 8. FOUNDED & FOUNDER  May 15, 1940 in San Bernardino, California McDonald's Corporation, April 15, 1955 in Des Plaines, Illinois.  Richard and Maurice McDonald, McDonald's restaurant concept  Ray Kroc, McDonald's Corporation founder.
  9. 9. BASIC INFORMATION Number of locations Revenue Operating income Net income Total assets Total equity Employees 34,000+ worldwide US$ 27.56 billion (2012) US$ 8.60 billion (2012) US$ 5.46 billion (2012) US$ 35.39 billion (2012 US$ 15.29 billion (2012) 1,800,000 (2013)
  10. 10. OBJECTIVE & METHODOLOGY USED OBJECTIVE : To do a GAP analysis of McDonald’s. METHODOLOGY : We took the responses from 50 customer and 4 store supervisor employees also personally visited the restaurant and took the “Restaurant Tour” and tried to understand the mantra for their quality control and fast service abilities.
  11. 11. FOR CUSTOMERS
  12. 12. No of male and Female [PERCENTAGE] 52% MALE FEMALE
  13. 13. AGE GROUP OF RESPONDENTS 2% 8% 10 to 20 21-30 18% 31-40 Above 40 72%
  14. 14. DOES MCDONALD’S COLLECT INFORMATION ABOUT YOUR TASTES AND PREFERENCES ? 35% YES 65% NO
  15. 15. How often does McDonald’s informs you about its new product & services through mail and other sources ? 17% WEEKLY 30% MONTHLY NEVER 53%
  16. 16. How much are you satisfied with the counter ordering & delivery system in McDonald’s on scale of 1 to 10 ? 16 14 14 12 10 8 8 8 6 6 4 3 2 0 0 1 1 0 2 3 0 4 0 5 6 7 8 9 10
  17. 17. ARE YOU SATISFIED WITH THE NEW PRODUCTS AND INFORMATION AVAILABLE ABOUT PRODUCTS. 4% EXCELENT GOOD SATISFACTORY 49% 47%
  18. 18. HOW WELL IS MCDONALD’S STORE LAYOUT DESIGNED AND OTHER EQUIPMENT'S PLACED ? 13% 26% EXCELENT GOOD SATISFACTORY 61%
  19. 19. How is the service delivery in terms of consistency 7% EXCELENT 28% GOOD SATISFACTORY 65%
  20. 20. HOW MCDONALD’S EMPLOYEES GREETS YOU DURING THE TIME OF SERVICE DELIVERY? 2% 8% WITH SMILE WITH SHAKE HAND 90% WITH AN CLUMSY LOOK
  21. 21. How Do You Rate Service Delivery During Peak Hours On Scale Of 1 To 10? 12 10 10 9 8 8 9 8 6 6 4 2 2 0 0 0 0 1 2 3 4 5 6 7 8 9 10
  22. 22. How effective is the promotional ads of McDonald’s in conveying information about its products? INFORMATIVE NEEDS IMPROVEMENT 47% 53%
  23. 23. How do you feel regarding prices of McDonald's products? 0% 15% HIGH PRICED MEDIUM LOW 85%
  24. 24. Do You Think You Are Delivered A Quality Product For The Prices Charged? TO GREATER EXTENT 25% TO SMALL EXTENT 75%
  25. 25. Does McDonald’s provides what was promised to you ? 8% yes no 92%
  26. 26. Gap Analysis Within The Organisation
  27. 27. How Often Do Employees And Managers Interact And Have Meetings Regarding Customer Expectations 0% Monthly Quarterly Weekly 50% 50%
  28. 28. Service Delivery Employees Or Contact Employees Are They Given Preference To Share Their Views ? 25% Yes No 75%
  29. 29. How well does company plan to recover from service failures? Nice, When we call Interacting with customers Interact customer and take their feedback
  30. 30. Are Employees Given Training And Information On New Products? 0% Yes No 100%
  31. 31. How effectively does the company recruit, hire, train, compensate, and empower employees on scale of 1 to 10 ? 10 9 8 7 6 5 4 9 8 6 3 6 3 4 2 1 0 1 2
  32. 32. Do customers fulfill their roles ? No, not at all 25% Yes to an extent To lesser extent No, not at all To lesser extent 25% Yes to an extent 50%
  33. 33. Does the company avoid overpromising and overselling? 0% Yes We Do No We Dont 100%
  34. 34. Does the company price in line with customer perceptions of value? 0% Yes No 100%
  35. 35. FINDINGS  During the survey it was found that most of the customers where of aged between 15 to 30 & the sex ratio was relatively equal.  Mc Donald's was focused and interested in collecting information from both customers and their employees.  Mc Donald's informed most of its customer on regular basis about its new products and large group of customers where also happy with new products offerings.  Large group of sample customers where happy with the Mc Donald's store layout and its maintenance.
  36. 36. Contd..  Customers where happy with Mc Donald's service delivery during normal time but during peak hours service delivery consistency reduced.  The surprising factors which came out during survey was customers were not happy with Mc Donald's promotional tools as they were less informative but the good sign was the large group of customers were happy with what was promised and delivered to them in ads.  Most of the customers said that the pricing was in medium range and 50% of customers felt they weren’t delivered a quality products for prices charged.
  37. 37. FINDINGS  Employees and top management interacted monthly and weekly based on requirement and lower level employees not involved in meetings.  Mc Donald's store supervisors said the recruitment process were effectively conducted and employees were also given training.  Employees responded that most of the customers do fulfill their roles to an extent.  Employees also responded that they wont do over promising and over selling and they also price with customers perception in line
  38. 38. Suggestions  Mc Donald's should focus on informing customers about new products through mails and other sources and also provide information products in details.  Mc Donald's should focus on service delivery during the peak hours especially with more counters and also focus on maintaining their six sigma status delivering to avoid mis match.  Mc Donald's should focus on using effective promotional ads and informative ads. They can go with product catalouges, & handbills, Mobile apps, faster home delivery .  Company should focus on pricing issues with certain products, also increase
  39. 39. Contd..  Mc Donald's should focus on maintaining their combo product strategies like  Aap ke Jamane Main Baap ke Jamane ke Daam…..!!!”  “Happy Meal” ,“Kite Meal”, “Shrek Meal”  Company should involve service delivery employees in team meetings and collect their reviews since they have direct contact with customers.  Company should focus reducing channel conflicts in communicating in order to avoid conflicts.  Company should focus on treating employees as an asset to organization to reduce attrition rate.
  40. 40. SHASHI KUMAR M . R MBA NEW HORIZON COLLEGE OF MANAGEMENT STUDIES

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