Mc Donalds & Burger King

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Mc Donalds & Burger King

  1. 1. FROM:- ANJALEE PODDAR<br />
  2. 2. Mc<br />D<br />O<br />N<br />A<br />L<br />D<br />S<br />B<br />U<br />R<br />G<br />E<br />R<br />K<br />I<br />N<br />G<br />
  3. 3.
  4. 4. SWOT Analysis--McDonalds<br />STRENGTHS<br />1. Successful Advertisement (I’m loving it!)<br />2. Great Partnership (Coke Cola)<br />3. Clean Environment And Playground For Kids<br />4. Professional Training For Employees (Hamburger University)<br />
  5. 5. WEAKNESS<br />1. Product Development<br />2. Price<br />3. Management Of Franchisees/Joint Venture<br />
  6. 6. OPPORTUNITIES<br />1. Internationalization<br />2. Growing Dinning-Out Market (Especially Young Generations And Middle Age Group)<br />
  7. 7. THREATS<br />1. More Health-Conscious Customers<br />2. Threats From Local Competitors In Different Countries<br />3. The Economic Downturn<br />4. Playing In A Mature And Saturated Industry<br />
  8. 8. Potential Resource Strengths <br />Potential Resource Weaknesses<br />Potential Company Opportunities<br />Potential External Threats<br /><ul><li>Powerful strategy
  9. 9. Strong financial condition
  10. 10. Strong brand name image/reputation
  11. 11. Widely recognized market leader
  12. 12. Proprietary technology
  13. 13. Cost advantages
  14. 14. Strong advertising
  15. 15. Product innovation skills
  16. 16. Good customer service
  17. 17. Better product quality
  18. 18. Alliances or JVs
  19. 19. No clear strategic direction
  20. 20. Obsolete facilities
  21. 21. Weak balance sheet; excess debt
  22. 22. Higher overall costs than rivals
  23. 23. Missing some key skills/competencies
  24. 24. Subpar profits
  25. 25. Internal operating problems . . .
  26. 26. Falling behind in R&D
  27. 27. Too narrow product line
  28. 28. Weak marketing skills
  29. 29. Serving additional customer groups
  30. 30. Expanding to new geographic areas
  31. 31. Expanding product line
  32. 32. Transferring skills to new products
  33. 33. Vertical integration
  34. 34. Take market share from rivals
  35. 35. Acquisition of rivals
  36. 36. Alliances or JVs to expand coverage
  37. 37. Openings to exploit new technologies
  38. 38. Openings to extend brand name/image
  39. 39. Entry of potent new competitors
  40. 40. Loss of sales to substitutes
  41. 41. Slowing market growth
  42. 42. Adverse shifts in exchange rates & trade policies
  43. 43. Costly new regulations
  44. 44. Vulnerability to business cycle
  45. 45. Growing leverage of customers or suppliers
  46. 46. Reduced buyer needs for product
  47. 47. Demographic changes</li></li></ul><li>
  48. 48. SWOT Analysis-- Burger King<br />Strengths<br />1. Second largest fast food hamburger restaurant (FFHR) in the world <br />2. Strong brand equity <br />3. Growth model not capital intensive: 90% of its restaurants are owned by franchisees <br />4. Strong financial performance <br />
  49. 49. Weaknesses 1. Heavily concentrated in the US: about 63% of operations 2. Not enough corporately owned stores means it relies heavily on franchisees to execute its brand promise <br />
  50. 50. Opportunities <br />1. New product development, particularly around breakfast <br />2. Keep building its brand through ad campaign, such as the Whopper Virgin&apos;s <br />3. Expansion into emerging markets <br />
  51. 51. Threats <br />1. Changing consumer habits towards healthier food choices <br />2. Away-from home consumption declines in the US due to tougher consumer environment <br />3. Intense competition from McDonald&apos;s, other restaurants and even retailers <br />4. Increasing labour costs putting pressure on bottom line margins <br />
  52. 52.
  53. 53. McDonald’s vs. Burger King<br />Burger King:<br /><ul><li>Founded in 1954
  54. 54. Founder: McLamore & Edgerton
  55. 55. 7,800 restaurants (domestic)
  56. 56. 21.9% of fast-food market share</li></ul>McDonald’s:<br /><ul><li>Founded in 1955
  57. 57. Founder: Ray Kroc
  58. 58. 13,000 restaurants (domestic)
  59. 59. 44% of fast-food market share</li></li></ul><li>McDonald’s Quick Out of the Gate<br />1. Kroc was first allowed to sell franchises in 1955, by 1960 there was 200 restaurants.<br />2. Kroc bought out McDonald brothers. By 1968, there were 1200 restaurants and sales were $400 million.<br />3. By 1972, there were 2,272 restaurants, and sales were over $1 billion. (By comparison, Burger King sales were only $271 million, good for only fourth, behind McDonalds, KFC, and Dairy Queen)<br />
  60. 60. Burger King makes move<br />1. Burger King was first to introduce the dine-in concept, and drive-through food service. This idea was quickly adopted by McDonald’s and others.<br />2. Burger King (along with Pillsbury, the previous owner) was bought by Grand Metropolitan in 1988.<br />3. By 1999, Burger King had 10,506 total owned or franchised restaurants, with sales of $10.3 billion, good for second behind only McDonald’s<br />
  61. 61.
  62. 62. The end<br />

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