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McD
- 1. Arun Preethi Nivetha Rahul Saravanan Batch “A”
- 2. History Timeline Milestones Interesting Facts Mission Vision Products/Services offered Value Proposition Business Portfolio Business Portfolio Analysis SWOT Analysis References
- 3. 1937 • Patrick McDonald starts “Airdrome” 1940 • Richard and Maurice McDonald move the restaurant to San Bernardino, California
- 4. 1955 • Ray Kroc founds "McDonald's Systems, Inc." on March 2, as a legal structure for his planned franchises. Kroc opens the ninth McDonald's restaurant in Des Plaines, Illinois, in suburban Chicago on April 15.
- 5. First Print Advertisement and First Menu
- 6. 1959 • 100th McD restaurant opens 1959 • First Billboard Advertisement. 1963 • Ronald McDonald’s first appearance
- 7. 1960s Look for the Golden Arches Campaign 1970s Global Expansion 1980s Burger Wars
- 8. Golden Arch in Times Square, New York McDonalds opens in Germany, China, Netherlands, Japan, Singapore
- 10. • Comes to India • Pakistan and Partnership with Disney/Pixar • Buys Chipotle shares • Introduces WiFi • Construction of the largest McD at the London Olympics Site begins 1996 1998 1998 2005 2011
- 11. 2011: Subway surpasses McDonald's as the largest single-brand restaurant chain and the largest restaurant operator globally.
- 12. Interesting facts: •McWorld had 12700 McD outlets in 1992. •Now it has around 33,000 in 121 countries. •1 in 8 American workers are employed by McD. •McD feeds 68 million people each day. •McD’s Golden Arches are recognised by more people than the cross.
- 13. •The Queen of England owns a McD near Buckingham Palace •McD sells 75 hamburgers every second •McD opens a new restaurant every 14.5 hours.
- 14. "McDonald's brand mission is to be our customers' favorite place and way to eat and drink. 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.“
- 15. "McDonald's vision is to be the world's 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."
- 16. Words from Don Thompson - CEO & President(McD) " Good has always been an important part of our heritage - and it's an equally important part of our future".
- 18. 1963 1968 1973 1977 Big Mac 1979 1983 1997 Products
- 19. Services provided: • Free Wifi @ McD.- free internet in McD outlets. • Arch Card - Gift Cards, Pre Paid Credit Card like thing. • Play places and Parties - We can arrange parties and hangout sessions in McD outlets, the McD people will arrange all the necessary things for the party.
- 21. McDonald's stands for "friendliness, cleanliness, consistency, and convenience.“ It’s is this convenience or speed and the fact you always know what you’re going to get which is McDonald’s value proposition. Dimensions of value proposition
- 22. MCDONALD’S VALUES Our values summarized in "Q.S.C. & V.". Provide good quality, services to customer. Have a cleanliness environment when customer enjoys their meal. The value of food product makes every customer is smiling. ➢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 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.
- 23. ➢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 continuing 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.
- 24. ➢We believe in the McDonald’s System McDonald’s business model, depicted by the “three-legged stool” of owner/operators, suppliers and company employees, is our foundation, and the balance of interests among the three groups is key.
- 30. References: •http://www.quality-assurance-solutions.com/mcdonalds-swot.html •Nair,Smitha(25Dec,2013), McDonald’s global business model, the “three-legged stool”, Published in Market Realist. •Corporation. McDonald's Packaging — The Facts. Oak Brook, IL: McDonald’s, 1990. p. 7. •McDonald’s Corporation Website. Retrieved 1st August 2014.
Editor's Notes
- In the late 1970s, competition from other hamburger chains such as Burger King and Wendy's began to intensify. Experts believed that the fast-food industry had become as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980s became known as the "burger wars". Burger King suggested to customers: "have it your way"; Wendy's offered itself as the "fresh alternative" and asked of other restaurants, "Where's the beef?" But McDonald's sales and market share continued to grow. In the late 1970s, competition from other hamburger chains such as Burger King and Wendy's began to intensify. Experts believed that the fast-food industry had become as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980s became known as the "burger wars". Burger King suggested to customers: "have it your way"; Wendy's offered itself as the "fresh alternative" and asked of other restaurants, "Where's the beef?" But McDonald's sales and market share continued to grow.
- These are some of McDonalds’ best selling products with the year that they were introduced in.
- After a public backlash due to its unhealthy food, McDonald’s started coming up with a choice of salads as add-ons instead of the French Fries.
- Customer roles: Mc Donald’s has established a system where everyone buses their own tray before leaving. In this case, supplier focuses more on adding the value in its core specialty and “outsources” the rest of the work to the customer or complementary.
- McDonald’s is a Star because of its high market growth and high market share.
- In 2013, McDonald’s reached its highest revenue in at least nine years. During this time frame, the company’s revenue increased year over year, excluding 2009 when business took a slight dip due to the global recession. In 2013, 11.3 billion U.S. dollars were generated in Europe, the largest contribution to the company’s total revenue. The second largest contributor was the United States with 8.85 billion U.S. dollars. Source:Statista
- In the graph below on McDonald’s profitability, you can see that the company’s gross margin has been declining over the past four years, from 40.0% in 2010 to 38.9% in the LTM period. The company’s EBITDA margin also has been relatively stable (between 36.5% and 37.0%) over the same period, rather than increasing as it had prior to 2010. The company has had difficulty maintaining gross margins due to both cost pressures and a desire to maintain low price points (ASPs) to compete with peers in local markets. Source: http://marketrealist.com/2013/12/mcdonalds-6-year-profitability-snapshot-slowing-earnings-growth/
- The statistic shows the brand value of the 10 most valuable fast food brands worldwide in 2014. In that year, the brand value of Starbucks amounted to 25.78 billion U.S. dollars. McDonald's was the most valuable fast food brand in the world with an estimated brand value of about 85.71 billion U.S. dollars. Source: Statista
- Source: http://www.quality-assurance-solutions.com/mcdonalds-swot.html