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McDonald's analysis

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.

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Content • Introduction • Mission and Vission • STEEP Analysis • Porter’s Analysis • Value-Chain Analysis • Marketing Mix • Cometitive Advantage • SWOT Analysis • Conclusion
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.
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 "
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
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)
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.
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…
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
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.
SWOT Analysis By Atul Jain
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.
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