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A PRESENTATION ON 
MCDONALD’S 
GROUP MEMBERS 
 ATRI ROY 
 NEHA SINGH 
 ABHIJIT ROY 
 NILESH SAHA 
 TAPASI SARKAR
COMPANY BACKGROUND 
 The First McDonald’s was built in 1940. 
 Ray Kroc was the First Franchisee appointed by the original 
McDonald brothers, Dick and Mac. 
 He opened his first restaurant in Des Plaines, Illinois. 
 The company motto became “Quality, Service, Cleanliness and 
Value” (QSCV)
CURRENT STATUS OF COMPANY 
 McDonald's is the world's #1 fast-food company by sales 
 Serving burgers and fries, it operates more than 34,000 flagship 
restaurants 
 It serves in more than 119 countries on six continents. 
 On a day-to-day basis, more than 47 million customers world-wide 
are served 
 Employs more than 1.5 million people. 
 More than 80% of McDonald’s restaurants worldwide are owned and 
operated by independent local men and women.
PORTER’s FIVE FORCES ANALYSIS 
 Formed by Michael E. Porter of Harvard 
Business School in 1979. 
 Helps in analyzing the Industry and the 
Business Strategies being taken by the 
Company.
PORTER’s FIVE COMPETITIVE FORCES 
Competition Within Industry: 
 KFC, Pizza Hut, Dominoes, Subway 
 Sandwiches Prepared Meals. 
 Fast Food Centers. 
 Online presence – Company Info, Home Delivery, Better Combo 
Deals. 
New Entrants: 
 McDonald’s has market dominance (over 30,000 restaurants 
world-wide) 
 Economies of scale force new entrants to enter at a cost 
disadvantage. 
 High Competition 
 Easy To Entry For New Comers.
PORTER’s FIVE COMPETITIVE FORCES 
Threat Of Substitutes: 
 Fast Food Centers. 
 Healthier Alternatives. 
 Unique Products 
 Substitute for Coffee, Cold Drinks available at Cheaper Rates. 
Bargaining Power Of Customers: 
 Pay Attention to Customer Demands and Trends. 
 Offer Specialty Products for Certain Segments. 
 McDonalds Focus on Special Tastes and Preferences on Customer 
Choice. 
 Customer May Shift From Mc Donald’s To Another Brand as They 
Have High Bargaining Power.
PORTER’s FIVE COMPETITIVE 
FORCES 
Bargaining Power of Suppliers: 
 McDonald’s relies on strong Supplier and Distributor 
relationships. 
 Help Suppliers lower costs. 
 Develop New Supplier Base to reflect Customer 
Diversity. 
 Suppliers include: Coca-Cola, Heinz.
CONCLUSION 
 The goal is to become customers favourite 
way and place to eat and drink by serving the 
best. 
 Due of its financial power McDonalds could 
move into to other industries/products at any 
time. 
 Due to its high demand, company can 
introduce new products or items i.e. Product 
Development.
THANK YOU
http://www.unitedworld.edu.in/ 
Campus 
Ahmedabad Campus: Karnavati Knowledge Village, 
A/907,Uvarsad, S.G.Highway, Gandhinagar 
Kolkata Campus: Infinity Benchmark Tower 10th Floor, Plot 
- G1, Block - EP& GP, Sec -V, Salt Lake, Kolkata. 
Reg. Office: 407, Zodiac Square, 4th Floor Opp. Gurudwara, 
S.G. Road, Bodakdev, Ahmedabad.

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Porter's 5 forces on Mac D

  • 1. A PRESENTATION ON MCDONALD’S GROUP MEMBERS  ATRI ROY  NEHA SINGH  ABHIJIT ROY  NILESH SAHA  TAPASI SARKAR
  • 2. COMPANY BACKGROUND  The First McDonald’s was built in 1940.  Ray Kroc was the First Franchisee appointed by the original McDonald brothers, Dick and Mac.  He opened his first restaurant in Des Plaines, Illinois.  The company motto became “Quality, Service, Cleanliness and Value” (QSCV)
  • 3. CURRENT STATUS OF COMPANY  McDonald's is the world's #1 fast-food company by sales  Serving burgers and fries, it operates more than 34,000 flagship restaurants  It serves in more than 119 countries on six continents.  On a day-to-day basis, more than 47 million customers world-wide are served  Employs more than 1.5 million people.  More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women.
  • 4. PORTER’s FIVE FORCES ANALYSIS  Formed by Michael E. Porter of Harvard Business School in 1979.  Helps in analyzing the Industry and the Business Strategies being taken by the Company.
  • 5.
  • 6. PORTER’s FIVE COMPETITIVE FORCES Competition Within Industry:  KFC, Pizza Hut, Dominoes, Subway  Sandwiches Prepared Meals.  Fast Food Centers.  Online presence – Company Info, Home Delivery, Better Combo Deals. New Entrants:  McDonald’s has market dominance (over 30,000 restaurants world-wide)  Economies of scale force new entrants to enter at a cost disadvantage.  High Competition  Easy To Entry For New Comers.
  • 7. PORTER’s FIVE COMPETITIVE FORCES Threat Of Substitutes:  Fast Food Centers.  Healthier Alternatives.  Unique Products  Substitute for Coffee, Cold Drinks available at Cheaper Rates. Bargaining Power Of Customers:  Pay Attention to Customer Demands and Trends.  Offer Specialty Products for Certain Segments.  McDonalds Focus on Special Tastes and Preferences on Customer Choice.  Customer May Shift From Mc Donald’s To Another Brand as They Have High Bargaining Power.
  • 8. PORTER’s FIVE COMPETITIVE FORCES Bargaining Power of Suppliers:  McDonald’s relies on strong Supplier and Distributor relationships.  Help Suppliers lower costs.  Develop New Supplier Base to reflect Customer Diversity.  Suppliers include: Coca-Cola, Heinz.
  • 9. CONCLUSION  The goal is to become customers favourite way and place to eat and drink by serving the best.  Due of its financial power McDonalds could move into to other industries/products at any time.  Due to its high demand, company can introduce new products or items i.e. Product Development.
  • 11. http://www.unitedworld.edu.in/ Campus Ahmedabad Campus: Karnavati Knowledge Village, A/907,Uvarsad, S.G.Highway, Gandhinagar Kolkata Campus: Infinity Benchmark Tower 10th Floor, Plot - G1, Block - EP& GP, Sec -V, Salt Lake, Kolkata. Reg. Office: 407, Zodiac Square, 4th Floor Opp. Gurudwara, S.G. Road, Bodakdev, Ahmedabad.