McDonald's strategy focuses on achieving the strongest brand image, innovating products, and gaining the largest market share in hamburgers. Their competitive advantage is their long history in fast food. However, they face challenges around nutrition concerns from mass production replacing fresh foods, high advertising spending targeted at children, and some criticism around employment practices like low pay and part-time jobs. Recommendations include addressing nutritional perceptions and employment ethics issues.

2. 1. History & Introduction
2. Pestle Analysis
3. 5 Forces Analysis
4. SWOT Analysis
5. Current Strategy & competitive
advantage
6. Problems & Recommendation

3. • Founded in 1948
• Mr. Ray Kroc in San
Bernardino, California
• Sold 100 millionth hamburger
in 1958 & bought the rights to
the McDonalds Corporation
name
• 3-legged stool
“In business for yourself, but not by yourself.”

4. Market Location Current
Served Strategy
• Fast food • Found in 119 • Cutting
(Burgers, Fries, countries labor, food
Drinks) • operates and utility
• 58 million costs through
over 31,000 implementing
customers all
age all
restaurants Technology &
gender/Day Innovation

5. • In 1994, Emirates Fast
Food Company acquired
the McDonald’s franchise
• 100% locally owned
• The first restaurant in Al-
Ghurair City
• More than 90 restaurants
geographically located
• Striving to Innovate
“We offer people choice. We have salads, fruit, milk, soft drinks, fruit
juices and we let people decide for themselves.”

6. • Civil & Political unrest in the Middle East.
• Each Emirate has its own governmental
institution.
• A solid supporter of its economy
• 80% of its supplies from local and regional
suppliers in the Arab world.
• Established a good system in determining
the need market
• McDonald’s UAE runs a wide range of
altruistic initiatives in the UAE.

7. • Has revolutionized Fast food delivery.
• From cash registers to POS.
• Training through Nintendo DS.
• Meat Should be Halal.
• Food safety and hygiene certificates.
• GCC's first step into a biofuels market with
Neutral fuel

8. • Threat of competition HIGH
– Very competitive Fast Food industry
– Competitors Advertising Capabilities
– Location of outlets
– Major competitors- Burger King and YumBrand INC.
• Threat of New Entrance HIGH
– Regulation of Limit
– Easy Access Market and Low start up cost
– Example of SubWay’s market penetration
• Threat of Substitutes Low-Moderate
– Availability of the MCD products
– Choose MCD for Easting and Entertainment
– Narrows Threat of Substitutes due to introduction of local taste
products.

9. • Power of Suppliers LOW
– Worlds largest restaurant chain in sales
– High bargaining power over its suppliers
– Most of them owe MCD for their own existence
– LOW the power of suppliers- LOWer the cost of raw
materials and HIGH competitive price.
• Power of Buyers LOW
– Industry limitations
– Low quantity purchases
– Less chances of switching, high brand image thru
differentiation and uniqueness
– Buyers don’t have bargaining power

10. 1. Has a good image in the 1. Over exposure all over
minds of consumers. the world.
2. Strong product value. 2. Children as their main
target audience.
3. Innovative in producing
new product lines. 3. Slow drive-through
services.

11. 1. Partnership with UAE 1. Changes in commodity
government to reduce prices
carbon footprint 2. Emergence of other
fast food
2. Advertising strategy 3. competitors Hardees
and KFC.
3. They have the ability to 4. Heavy investments on
add healthier lines of promotional
food campaigns.

12. McDonald’s strategy is focused on
1. Achieving the most powerful brand
image
2. product innovation and development
3. Having the greatest market share in the
ham burger industry.

13. • Their competitive advantage is that
they have been in the fast food
business for a longer time than their
competitors.

14. • Nutritional issues
– MCD taking away the traditional nutrition values
– Replace the fresh and healthy food by mass production
– Projection the product nutrition values
– Comparison of daily consumption and MCD products
– Serves 30million people daily
• Advertising Issues
– 2billion dollars for Advt annually
– Concentrated on Children- Parental Concerns
– MCD has a better advertising than its customers
– Follows the advertising codes of each country
– Making aware of MCD’s charity activities, events and learning
programs

15. • Employment ethics and issues
– Criticized as low paid jobs- named ‘McJobs’
– Low paid, non-union, part time jobs with low
rights and conditions
– Giving importance on individual goals than
organizational goals
– Fact of 1.5million workers with above 70% job
satisfaction rate
– Introduction of collective tips system