McDonald's is the world's largest fast food chain with over 31,000 restaurants in 119 countries. In India, McDonald's first opened in 1996 and now has over 400 locations owned by two franchisees. McDonald's core competency is providing convenient, affordable fast food consistently worldwide. It uses a franchise business model and focuses on operational efficiency, product diversity, and sustainability to address health concerns while maintaining profits.

2. Introduction : McDonald’s
McDonald's is the world's leading food service retailer with
more than 31,000 restaurants in 119 countries serving more than
50 million customers each day
First restaurant in India was launched in 1996.
Amit Jatia, M.D. Hardcastle Restaurants Pvt. Ltd. owns and
spearheads McDonalds in west & south India.
McDonald’s restaurants in North & East India are owned and
managed by Mr. Sanjeev Agarwal.
Over 400 restaurants all over the country.

3. McDonald's Values
Mission:
To be our customers’ favorite place and way to eat and drink.
Values:
We Put our
Customers and
people first
We open our
doors to everyone
We do the right
thing
We are good
neighbours
We are better
together

4. Core Competency
McDonald’s core competency is
providing convenience when ever
people need and want to eat fast
food at prices that are competitive
and provide best value for the
customer's money.
It focus on consistency of quality,
production of food and use of raw
materials all around the world.

5. Business Model Canvas

6. McDonalds 4Ps of Sustainability
6
PlanetPeople Product Profit
Stakeholders
attention to social
responsibility
Achieving
sustainability
without hurting
business
Environmental
consciousness
Food
Transparency

7. SWOT Analysis
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S W
O T
 Iconic Brand
 Operational Efficiency
 Income Diversification
 Leveraging technology
 Sustainability
initiatives
 Innovative and
healthier menu.
 Franchisee management
 Perception of unhealthy food
 Product diversification
 More health conscious
customer
 Intensifying competition
 Government regulations
towards health.

8. Porter’s Five Forces
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• No cost
advantage
• Entering the
industry is not
too expensive
• Trained man
power easily
available
• Too many
competitors
• Low switching
cost
• Less sustainable
differentiation.
• Low cost of
substitution
• Being service
oriented rather
than product
oriented
• Large size of
buyers
• High buyer
power
• New products
will reduce the
defection of
existing
customers
• Large size of
suppliers
• High ability
to substitute
• Efficient
supply chain
with multiple
suppliers
Threat of New
Entrants
Competitive
Rivalry
Threat of
Substitute
Products
Buyer power Supplier power

9. PESTLE Analysis
• Increasing international trade agreements (opportunity)
• Governmental guidelines for diet and health (threat and
opportunity)
• Evolving public health policies (threat and opportunity)
Political
• Slow but stable growth of developed countries (opportunity)
• Slowdown of the Chinese economy (threat)
• Rapid growth of developing countries (opportunity)
Economic
• Busy lifestyles in urban environments (opportunity)
• Increasing cultural diversity (threat and opportunity)
• Healthy lifestyle trend (threat & opportunity)
Social
9

10. PESTLE Analysis
• Moderate R&D activity in the industry (opportunity)
• Increasing business automation (opportunity)
• Increasing sales through mobile devices (opportunity)
Technological
• Increasing health regulations in workplaces and schools (threat)
• Increasing animal welfare regulations (threat & opportunity)
• Rising legal minimum wages (threat)Legal
• Rising interest for corporate environmental programs (opportunity)
• Increasing emphasis on sustainable business strategies (opportunity)
• Changes in climate conditions in some regions (threat)
Environmental
10

11. Financials
0
5000
10000
15000
20000
25000
30000
35000
40000
2019 2018 2017 2016 2015
NumberofRestaurants
Mcdonald's Restuarants
Company Owned Franchised
0
5000
10000
15000
20000
25000
30000
2019 2018 2017 2016 2015
Revenue
Company Owned Restaurants Franchised restaurants
Company owned restaurants diminish
from 2015 to 2019 & vice versa whereas
Total number of restaurants increase
On a contrary revenue from company
owned restaurants increase reducing
revenue from franchised restaurants
Source : McDonalds Corporation 2019 Annual Report

12. Operating Income & Operating Cost
• Operating Costs have diminished
continuously from 2015 to 2019.
• Compared to 2018, the operating costs
have seen a 1.6% decline in 2019.
• This decline is a result of decrease in
Company-operated restaurant expenses
for the year 2019 leading to higher
operating income.
0 5000 10000 15000 20000 25000 30000
2019
2018
2017
2016
2015
Year
Operating Income & Costs
Operating Income Operating Costs
Source : McDonalds Corporation 2019 Annual Report

13. Growth Strategies
Cost Leadership
Strong Distribution Network
Product Portfolio Diversity
Technological Agility

14. Supply Chain Management (Strategies)
Focus on
building long
term business
partnerships
Pricing to
make each
supplier
profitable
Trust the
suppliers to
deliver the
QSC&V
Establish
peer-to-peer
relationships
Set clearly
defined
outcomes that
are
measurable

15. Sustainability Mission – “Scale for Good”
Climate Action
Meat Sustainability
Packaging and
Recycling
Commitment to
Families
Youth Opportunity

16. Green Menu
To add menu with vegetables and fruit salads which preparation will
not be longer than production of burger
To add natural juice to menu of drinks
To include vegetable and fruit segments and only natural juice to
children's happy meal
To add vegetarian cookies which are made without milk, butter and
eggs
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