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Mc donald

McDonald's is the world's largest fast food restaurant chain with over 33,000 locations worldwide. It serves 64 million customers daily and has over 400,000 employees. McDonald's core business strategy is unchanged - to invest in people and its brand. For over 50 years it has provided quality food, jobs, and charitable support to communities. McDonald's values include placing customers at the core, commitment to employees, operating ethically and profitably, and continual self-improvement.

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Industry Founder(s) Headquarters Number of Locations Products Revenue Employees Restaurant Richard & Maurice McDonald Oak Brook, Illinois U.S. 33,000+ world wide Fast food (hamburgers, chicken, French fries, Soft drinks, coffee, milkshakes, salads, Desserts, breakfast) US$ 24.075 billion (2010) 400,000 (January, 2010) ABOUT THE COMPANY
WHO WE ARE …  McDonald’s operations have steadily grown in the U.S., Europe, the Middle East, Asia-Pacific, Africa, Canada, and Latin America.  Currently 1.7 million people in 119 countries work for McDonald’s. serve 64mn customers each day around the world.  More than 80% of McDonald's 33,000 restaurants worldwide are independently owned and operated.  In the midst of global economic concerns, McDonald’s has maintained a firm grasp on the industry because the core strategy remains unchanged – McDonald continue to invest in people and Brand.  For more than 50 years, McDonald has provided quality food, valued jobs, and meaningful charitable support to the communities they serve. MCD’s the number-one foodservice retailer in the world.
 MCD are committed to providing the highest quality food and superior service, at a great value, in a clean and welcoming environment.  That’s why MCD work with their employees, franchisees, and suppliers to serve a balanced array of food choices and provide the nutrition information needed for customers to make sound decisions.  At the restaurant level, MCD focused on energy conservation, sustainable packaging, and waste management.  MCD is dedicated to innovation and improving their operations in order to build an even more sustainable, environmentally friendly, and profitable business.  MCD will continue to re optimize their menu, modernize the customer experience, and broaden accessibility to their brand, so that consumers will always enjoy the maximum MCD’s experience WHAT MCDONALD’S DO Offering Quality Food, Healthy Choices
MISSION McDonald's brand mission is to be our customers' favorite place and way to eat. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience.
VALUES We place the customer experience at the core of all we do: Our customers are the reason for our existence. We demonstrate our appreciation by providing them with high quality food and superior service in a clean, welcoming environment, at a great value. Our goal is quality, service, cleanliness and value (QSC&V) for each and every customer, each and every time. We are committed to our people: We provide opportunity, nurture talent, develop leaders and reward achievement. We believe that a team of well-trained individuals with diverse backgrounds and experiences, working together in an environment that fosters respect and drives high levels of engagement, is essential to our continued success. We believe in the McDonald’s System: McDonald’s business model, depicted by our “three-legged stool” of owner/operators, suppliers, and company employees, is our foundation, and balancing the interests of all three groups is key.
CONTINUE… We operate our business ethically: Sound ethics is good business. At McDonald’s, we hold ourselves and conduct our business to high standards of fairness, honesty, and integrity. We are individually accountable and collectively responsible. We give back to our communities: We take seriously the responsibilities that come with being a leader. We help our customers build better communities, support Ronald McDonald House Charities, and leverage our size, scope and resources to help make the world a better place. We grow our business profitably: McDonald’s is a publicly traded company. As such, we work to provide sustained profitable growth for our shareholders. This requires a continuous focus on our customers and the health of our system. We strive continually to improve: We are a learning organization that aims to anticipate and respond to changing customer, employee and system needs through constant evolution and innovation.
McDonald's enter in to Global Market McDonald’s chooses contractual and equity entry modes because the level of control, and the relationship between franchise and franchisee in this case has the most positive outcome. Easily assessing foreign markets with minimum level of investment and high profit expectations is what McDonald’s entry mode choices stand for. McDonald’s introduces it’s unique concept to international markets, and it becomes a win- win cooperation. First of all, McDonald’s affect business standards in foreign countries. It increases standards of service in foreign countries by introducing machinery, clean and neat restaurants, quality products. Franchisees, in return, propose their innovations. So, McDonald’s benefits from international operations by having access to new know- how’s McDonald’s is flexible to foreign culture food habits and manipulates with its menu accordingly. Nevertheless, McDonald’s is presented as original American franchise, though having different “faces” and approaches overseas
WHY PEOPLE CHOOSE MCDONALD’S..? Meeting the needs of key audiences Customers are not all the same. Market research identifies different types of customers. A parent with two children Visits McDonald’s to give the children a treat Children Want to visit McDonald’s as it is a fun place to eat. A business customer Visits McDonald’s during the day as service is quick, the food tastes great and can be eaten in the car without affecting a busy work schedule Teenagers Are attracted by the Saver Menu which is affordable, and the internet access available in restaurants. These examples represent just a few of McDonald’s possible
Being the best means providing outstanding quality, service, cleanliness, and value, so that make every customer in every restaurant smile. To achieve this, McDonald’s focus on three worldwide strategies: (1) Be the Best Employer (2) Deliver Operational Excellence (3) Achieve Enduring Profitable Growth  To be the world's best quick service restaurant experience. VISION
MCDONALD'S SWOT Strengths (Internal) Weaknesses (Internal) Opportunities (External) Threats (External) E.g. the brand, and detailed market research to create the right marketing mix. McDonald’s has been around for a long time. (therefore important to keep innovating). E.g. increasing numbers of customers looking for food that is served in a quick and friendly way New competitors. Changing customer lifestyles.
Strategy development of McDonald’s
Corporate objective Examples Marketing strategy examples How do goods &services qualify and win orders in the marketplace?(com petitive priorities) Operation strategy Operating Design choice E.g.: Infrastructure e.g.: Profitable growth Add worldwide 1300 McDonald’s restaurants and 150 new partner Brand restaurants using company owned franchised stores Competitive priorities tie the corporate and marketing strategies to the operational strategy •Flow shop process design • Standardized store design • equipment design • order-taking design • Capacity & facility, size, location, and clusters •Hiring process & criteria • First job training • Recognition and rewards •manager trainee Program • Coaching and counseling • Teamwork • e-mail capabilities
Corporate objective Examples Marketing strategy examples Infrastructure e.g.: Operating Design choice E.g.: Operating Design choice E.g.: • global value chain coordination • suppliers • resources scheduling • inventory placement and control •Distribution centers standardized operational And job procedures Ideal store location, best training and employee wellbeing programs. Operational excellence 1.low price 2.quick service (delivery speed) 3.high service quality •Operating plans and control system • shift - management • supplier relation and negotiation • equipment • maintenance • online network capability • distribution centers Operation strategy How do goods & services qualify and win orders in the market place? (competitive Priorities)
Corporate objective Examples Marketing strategy examples Infrastructure e.g.: Operating Design choice E.g.: Leverage Strength Through Innovation and technology Develop new food items, store And food mix Tie demand Analysis to Diverse work force •Store equipment Technology •Value chain information system to tie stores, distribution centers, and suppliers together •New food products • Quality control • laboratory testing • organizational structure • Compensation • systems 4.High food quality How do goods & services qualify and win orders in the market place? (competitive priorities ) Operation strategy
Corporate objective Examples Marketing strategy examples Infrastructure e.g.: Operating Design choice E.g.: Diversity Long- standing Commit- ment to A diverse work force • Training and • franchising • Process performance • Career paths • Learning and innovation systems • Hamburger university 5.Demand flexibility Social Respon- sibility Being a Good neighbor And partner With the local community • Trade-off analysis • Recycling process • Package redesign, shipping, warehousing • Support services • Ronald McDonald’s house • Mobile health • centers • Youth camps 6.Brand image How do goods & services qualify and win orders in the market place? (competitive priorities ) Operation strategy
STATEMENT OF MCDONALD’S OPERATIONS STRATEGY “To provide unmatched consistency in operations in support of high product quality. This must be accomplished with adequate speed, low cost, and process innovation to accommodate changes in consumer tastes.”
MCDONALD’S OPERATION STRATEGY Dimensions Strategy Capacity • Growth as needed through additional stores - but capacity added carefully • Well-utilized - franchisee's well-being depends on it being used heavily Facilities Distributed facilities, each facility being very similar to the next, all focused around the same menu - although the uniformity is beginning to change Process Technology High degree of process understanding, emphasis on "fool-proof" processes A leader in the technology of fast-food delivery
Vertical Integration Partnership arrangement Long-term relationship with suppliers to promote innovation and quality improvement Workforce Franchisees: well-trained, carefully selected, entrepreneurs Operators: high-turnover, cheap Organization Guidelines provided by corporation, but franchisees push to locally optimize Control Systems Centralized buying Bulk contracts "Push" system for basic supplies, "pull" system day-to-day in the restaurants
Contribution to competitive advantage – Systemic strategy creates unmatched consistency in operations that has been difficult to imitate Evaluation of the operations strategy: Internal and external consistency – Looking at the operations strategy along the seven dimensions, they all support the operations mission and the business strategy.
Focused on the 3E's: Ethics, Environment, and Economics •Ethics - We envision purchasing from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals in our supply chain. •Environment - We envision influencing the sourcing of our materials and ensuring the design of our products, their manufacture, distribution and use to minimize life-cycle impacts on the environment. •Economics - We envision delivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities where our suppliers operate.
INDIRECT SUPPLIERS Primary processing Plants & production Plants Operate facilities such as Grain mills and abattoirs Farms & Ranches Raise cattle: grow lettuce Wheat & other ingredients. DIRECT SUPPLIERS DISTRIBUTION CENTERS Coordinate purchasing and distribution to restaurants. FINANCIAL PROCESSING FACILITIES Produce finished products like meat patties, buns & beverages.
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