The document provides an overview of McDonald's business including their vision, mission, values, strengths, weaknesses, opportunities, threats, product life cycle, competitive dimensions, product range, plant layout, service process design, inventory, and transformation process. McDonald's aspires to end hunger globally by providing low-cost, high-quality food. Their strengths include largest market share and ability to adapt menus to local tastes, while weaknesses are negative publicity around unhealthy food and low-paying jobs.

3. Vision
 We aspire to end hunger one meal at a time by
providing low cost- high quality nutritional food
globally.
Mission & Values
 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.

4. S.W.O.T ANALYSIS
Strength
 Largest fast food market share in the world. McDonald’s is
the largest fast food restaurant chain in terms of total world
sales (8%).
 More than 80% of restaurants are owned by independent
franchisees. Therefore, McDonald’s can focus more on
perfecting its serving system and marketing campaigns.
 Children targeting. The business successfully targets very
young children through offering playgrounds, toys with its
meals and advertisements.
 Locally adapted food menus. The fast food chain is
operating in many diverse cultures where tastes in food
are extremely different than those of US or European
consumers. Thus ability to adapt to local tastes is one of
McDonald’s strengths.

5. WEAKNESSES
 Negative publicity. McDonald’s is heavily criticized for offering
unhealthy food to its customers, stimulating obesity and strong
marketing focus on very young children.
 Unhealthy food menu. Although McDonald’s tries to introduce
healthier choices in its menu, the menu is largely formed of
unhealthy meals and drinks. Such menu offering prompts protests
by organizations that fight obesity and hence, decreases
McDonald’s popularity.
 Mac Job and high employee turnover. Mac Job is a low paid and
a low skilled job, which is often seen negatively by its employees.
This results in lower performance and high employee turnover,
which increases training costs and add to overall costs of
McDonald’s.
 Low differentiation. McDonald’s is no longer able to substantially
differentiate itself from other fast food chains (at least not enough
to gain some market share) and opts to compete by price rather
than by additional features.

6. OPPORTUNITIES
 Increasing demand for healthier food. While demand for
healthier food increases, McDonald’s could introduce more
healthy food choices in its menu and reverse its weakness
into strength. McDonald’s is trying to seize such an
opportunity and soon plans to open only vegetarian
restaurant in India.
 Home meal delivery.
 Full adaptation of its new practices. McDonald’s should
finish remodeling all of the restaurants and adapt the best
practices in them as soon as possible.
 Changing customer habits and new customer groups. So
far, the company has been successful in introducing its
McCafé, McExpress and McStop restaurants to meet the
changing customer habits and the needs of previously
untapped customer groups

7. THREATS
 The fast food market in the developed countries is
already overcrowded by so many fast food restaurant
chains and this already proves to be a threat to
McDonald’s as it barely grew through 2012.
 Trend towards healthy eating. Due to government and
various organizations attempts to fight obesity, people
are becoming more conscious of eating healthy food
rather than what McDonald’s has to offer in its menu.
 Local fast food restaurants can often offer a more local
approach to serving food and menu that exactly
represents local tastes. Although McDonald’s does a
great job in adapting its own menu to local tastes, the
rising number of local fast food chains and their lower
meal prices is a threat to McDonald’s.

8. PRODUCT LIFE CYCLE OF MCDONALDS:
 Marketing continuously monitors customers’
preferences. In order to meet these changes,
McDonald’s has introduced new products and phased
out old ones over time, and will continue to do so.
 The type of marketing undertaken and the resources
invested will be different depending on the stage a
product has reached. For example, the launch of a new
product will typically involve television and other
advertising support.
 At any time a company will have a portfolio of products,
each in a different stage of its cycle. Some of
McDonald’s options are growing in popularity while
arguably the Big Mac is at the ‘maturity’ stage.

9. COMPETITIVE DIMENSIONS FOLLOWED BY
MCDONALD'S:
 We strive to be cost leaders and offer our food at prices that
cannot be matched by our competitors. In order to do this, your
store must be efficient and keep everyday operations costs as low
as possible.
 Doing so, will allow for our stores to be superior to other fast food
restaurants because we can serve our food at lower prices than
any other fast food company.
 Another important competitive advantage we have here at
McDonald’s is the speedy delivery of our food. In order to maintain
this advantage over other fast food chains, you must make the
processes of cooking food simple for all your employees. It must
be easy to learn and easy to execute with a low failure rate to
ensure the quick production and delivery of your food.
 Customer Loyalty
 Unique Merchandise
 Vendor Relations
 Location
 Customer service

10. THE PRODUCT RANGE OF MCDONALD'S
 Breakfast - Ala Carte
 Breakfast – Meals
 Hot Cakes
 Small Sandwiches
 Large Sandwiches
 MEDIUM EVM's
 Happy Meal
 Drinks
 Shakes

11. PLANT LAYOUT
 layout refers to the specific physical
facilities.
 minimize delays in materials handling and customer
movement
 maintain flexibility
 use labor and space effectively
 promote high employee morale and customer
satisfaction
 provide for good housekeeping and maintenance
 enhance sales as appropriate in manufacturing and
service facilities

12. SERVICE PROCESS DESIGN
 With McDonalds, a major impact on their customers
is there Face to Face interaction.
 Whether it be drive thru or dining inside, McDonalds
has a huge customer base serving billions a day.
Dealing with so many customers McDonalds has to
be very flexible, and since no two customers are
usually the same, McDonalds has to make sure to
please everyone and they do this very efficiently
and utilize customized service.

13. INVENTORY
 McDonalds is considered a JIT inventory operation
meaning "Just in Time" another company that uses
this same technique, is Dell.
 This means that McDonald's doesn't begin to cook
or reheat food until a customer has placed a
specific order. This prevents extra food from being
used and cuts cost because inventory can still be
kept and not thrown out.
 JIT inventory operation One is lowering the ratio
between ordering costs and holding costs, and
shortening lead times. The results is an operation
with high holding costs, and that ordering very small
batches very frequently is the most profitable
solution.

14. TRANSFORMATION PROCESS OF
MCDONALD’S
 INPUTS
 TRANSFORMED RESOURCES:
 Materials: are the ingredients including beef, fish, chicken, salad
ingredients, buns, milk… and that are delivered to MCDONALD’S restaurants
in one lorry under 3 sections ; chilled, ambient, and frozen ; for being
converted into finished products on the FIFO basis to remain the freshness.
 Packaging: MCDONALD’S uses boxes of burgers, tumblers for drinks
and various bags for chips. This fast food restaurant uses cardboard because
it is clean, recyclable and that what’s make a responsible and ecological
company as well as to insure the convenient freshness and safety of its
products.
 Customers: consumers of all ages, from children to elderly people and
families, MCDONALD’s is for all classes but mostly for working and middle
classes.
 TRANSFORMING RESOURCES:
 Facilities: kitchen equipment, such as equipment of food concession and
food processing . etcStaff: restaurants staff, restaurant management, office
staff and franchisee staff, these people are working in delivering a high quality
of services and products to the MCDONALD’S customers.

15. PRODUCTIVITY
 Output quantity: the burgers made in a second, so for
MCDONALD’s , they make 75 simple burgers in a
second.
 Input quantity: are the factors used in the production
of the burger, which are 9 factors: labor, energy,
packaging, bread, beef, cheese, onion, ketchup,
gherkin.
 Productivity= 75/9= 8,333333333
 In order To Increase the productivity for
MCDONALD’S they have:
 - To produce more burgers with the same amount
of inputs,
 or,
 - To produce as many with fewer inputs.