McDonald's is the world's largest fast food chain with over 36,000 outlets serving 68 million customers daily. It was founded in 1940 in the US and became known for its production line approach to hamburgers. McDonald's mission is to provide outstanding quality, service, cleanliness and value to customers. A STEEP analysis identified social, technological, environmental, economic and political factors impacting McDonald's business. Porter's five forces model found competitive rivalry and threats from substitutes to be strong forces. McDonald's focuses on marketing, operations and supply chain to maintain competitive advantage through speed, variety and quality. A SWOT analysis considers the company's strengths, weaknesses, opportunities and threats.
2. Introduction
• McDonald's is the world's largest chain
of hamburger fast food restaurants,
serving around 68 million customers
daily in 119 countries across 36,535
outlets ( 2015 Annual Report)
• Founded in the United States in 1940,
• The company began as a barbecue
restaurant operated by Richard and
Maurice McDonald.
• In 1948, they reorganized their
business as a hamburger stand using
production line principles.
3. Mission and Vission
• McDonald's® Brand vision is "To be the
best quick service restaurant
experience". Being the best means
providing outstanding quality, service,
cleanliness, and value, so that we
make every customer in every
restaurant smile.
McDonald's® Brand brand mission "Is
to be our customer's first choice,
when it comes to, top quality
products, outstanding service /
cleanness and great value for money
"
4. STEEP Analysis
• Social:
• Widening wealth gap
• Increasing cultural diversity
• Technological:
• Moderate R&D activity in the industry
• Increasing business automation
• Environmental:
• Rising interest for corporate environmental programs
• Increasing emphasis on sustainable business strategies
• Economic:
• New legal minimum wage levels in the U.S.
• Local health regulations in workplaces and schools
• Political:
• Increasing international trade agreements
• Pending tax reform
5. Porter’s Analysis
• Competitive rivalry or competition
(strong force)
• Bargaining power of buyers or
customers (strong force)
• Bargaining power of suppliers (weak
force)
• Threat of substitutes or substitution
(strong force)
• Threat of new entrants or new
entry (moderate force)
6. Value-Chain Analysis
• Primary Activities
• Inbound Logistics: they are purchasing the
raw materials from fixed suppliers only,
they always make sure that they have
high quality.
• Operations: the design of the kitchens are
to make sure that operations are working
smoothly, the new setup was designed to
make the operations speedy.
• Outbound Logistics: McDonalds are
committed to provide the highest quality
food and supplying services, they are
working with employees, franchisees and
suppliers to serve the vision and the
mission.
7. Value-Chain Analysis
• Primary Activities
• Marketing and sales: you can find them in
around 119 countries, so many outlets in
the world, either owned by company or
franchisees. They always make strong
marketing complain around the world
mostly as billboards and signage, also
sponsoring sport events. They are
investing a lot in marketing their product
around the glob.
• Services: High speed of the provision of
customer service is one of the main
competitive advantages. Some branches
around the world is provided with WIFI
services, they are providing gift cards,
easy way of designing your own burger…
8. Marketing Mix
• Product :- McDonald’s places considerable
emphasis on developing a menu which customers
want. You can see their approach to change the
menu from time to time or to bring new burgers
from around the world.
• Price :- The customer’s perception of value is an
important determinant of the price charged. At
MacDonald's level prices are reachable. Not to low
and not to high.
• Promotion :- it can be fined by the advertising or
when they are having special offers. Teenagers are
those who are targeted by MacDonald.
• Place :- selecting the right location is what make
McDonalds different, they are targeting the places
that easy to access ( drive through) with full
neighborhood
9. Cometitive Advantage
• McDonalds strive to be cost leaders
and offer food at prices that cannot
be matched by our competitors.
The high speed of service by making
advantage operating process. The
variety on the menu. Low failure
rate to ensure the quick production
and delivery of the food.
11. Conclusion
• MacDonald's has done a great job over the
years to at the top of fast food companies
around the world, by focusing in
franchising, operation, making high
quality food with high quality raw
materials, focusing on marketing and
sponsoring, know the targeted consumers
and trying to be new. Some fast food
companies doesn't try to be updated, in
McDonalds you can see that they are
trying to be renewed, Specifying a food
for a region and try to share this
experience with other regions of the
worlds. It is a great company that
operate at highest level of production.
