2011-2013Strategic ManagementGroup 6
Introduction-1McDonald's Crisis: 1998-2003Ray Kroc 1955-1973Realized McDonald’s formula of 	self-service, paper-service, 	quick-service1962 McDonald’s introduce the 	world famous Golden Arches logo
Introduction-2Fred Turner 1973-1987 Management Science: established quality control measures, Turner’s manual   Training: Hamburger UniversitySupervising franchisees: Field visit reportManagement style: Expanded the authority of	 regional managerAdvertising: “Ronald McDonald”McDonald’s under  attack: Franchisees’ Rights McDonald’s under  attack: Union Rights
Introduction-3Michael Quinlan 1987-1998
 Customer service: McDonald’s service enhancement program
Cost Cutting: redesign restaurant, efficient construction method, Open franchisee to choose insurance company,  mini-McDonalds’ and expand small-size non-traditional site
International expansion: Joint venture with the local partners (Start with “Big six” country)
1992 open the first restaurant in Beijing, China
McDonald’s in Crisis: No new success menu,	 Shop similar hurting each customer,  	McDonald’s loosing market share
Introduction-4Jack Greenberg: 1998-2003
Recasting the image of McDonald’s
New menu: Made for you project
Acquisition and attacks on McDonald’s: Selling unhealthy 	food, exploiting Children, mistreating worker, destroy 	rain forests and torturing animals
Introduction-5Jim Skinner: 2004-
Improving stores’ operations
Substituted healthier food choices
Launched a Balance Lifestyle (Smart eating)	and fitness programShift from beef to chicken products
McCafesExternal Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Environment Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: Industry Competitiveness Analysis
External Analysis: EFAS + ICFAS
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
Internal Factors Analysis
SWOT AnalysisS – StrengthLarge market share
Strong Brand name, Image and Reputation.
Location & No. of Branches
McDonald’s Standard
Capability of CEO
Economies of Scale
Listed CompanySWOT AnalysisW - WeaknessNew restaurants were opened up in wrong place.
McDonald’s Standard – no innovation.
Attack from a variety of public interest groups.
 Unhealthy, fatty foods
McJobSWOT AnalysisO - OpportunitiesPopulation Growth
Lifestyle – Fast, Work outside
World’s  Economic  Rebound
Strong Brand LoyaltySWOT AnalysisT - ThreatsFlagship Brand – Focus only McDonald’s
Many direct/indirect no. of competitors
Mad Cow Disease, H1N1, Swine flu outbreak
Tendency to have additional tax on unhealthy foodVision"เราจะเป็นผู้นำอาหารฟาสต์ฟู้ดที่ดีที่สุด ภายใต้มาตรฐานเดียวกันทั่วโลกสำหรับทุกคน"
Missionเราจะเป็นสถานที่อันดับหนึ่งในใจของลูกค้า ด้วยการพัฒนากระบวนการและนำเสนออาหารที่ตรงกับความต้องการของลูกค้า ด้วยพันธกิจดังต่อไปนี้คัดสรรวัตถุดิบที่ดีและมีคุณภาพ, พัฒนาระบบห่วงโซ่อุปทานให้มีประสิทธิภาพอย่างต่อเนื่อง, สนับสนุนการทำเกษตรกรรมแบบยั่งยืน
พัฒนาเมนูอาหารที่หลากหลาย เพื่อตอบสนองต่อความต้องการของลูกค้าและกลมกลืนไปกับวัฒนธรรมท้องถิ่น
สร้างวัฒนธรรมองค์กร รับรู้และเข้าใจถึงปรัชญาของบริษัท QSCVKey Success FactorLocation / BranchesGlobal StandardLocalizationRelationship with supplier, franchisee
Corporate GoalSales (company & franchise)      3% / year
Customer visit       2% / year
     franchise operated to be 85% of all
ROIIC >45% by 2013
Remain cost structureCorporate StrategyBCG ModelGE McKinsey MatrixADL Portfolio-Planning Matrix
Corporate StrategyGE McKinsey Matrix
Corporate StrategyBCG Model
Corporate StrategyADL Portfolio-Planning Matrix
Corporate StrategyAnsoff Growth Strategy Matrix
Corporate StrategyTOWS MatrixS-O Strategies  Retro Campaign
  Add Value to ProductW-O Strategies Set up “Innovation Competition”Corporate StrategyTOWS MatrixS-T Strategies  Improve Supply Chain
  Strengthened MCD’s Standard
  Set up Legal TeamW-T Strategies  Consider closing unprofitable branches
Launch campaign that Encourage people to exercise
Sponsorship in Sport ProgramBusiness Strategy
Business StrategySBU1:  U.S.
Business StrategySBU2:  Europe
Business StrategySBU3:  Asia Pacific, Middle East, Africa (APMEA)
Business StrategyChinaOperated in China since 1990World’s fastest growing emerging marketNo. 1 growth market for McDonald'sGoal by 2013ROA      10%Sale growth      20%Sales (company & franchise)      50%Operating Cost      5%Increase to 2,000 branches
Functional Strategy
Marketing Strategy: Segmentation Segmented by “Usage Type”  Focus on “Usage Rate”Reduce ‘coz Nutrition, Fat and Standard Menu TimeTasteTrendy
Marketing Strategy : Target Market  Focus on existing customersRepeat PurchaseDiversifyValued-addedPotential Customers
เมนูให้เลือกหลากหลายและ LocalizeจำนวนสาขาครอบคลุมMarketing Strategy : Positioning
Marketing Strategy : ProductMenuNutrition added   ex. Vitamin, calciumand selected oilNew localizedMenu
Marketing Strategy : ProductMcDonalds’ Menu
Marketing Strategy : PriceMore Quality, but Same PriceDepend on Income per Capita
Marketing Strategy : PlaceExisting RenovationNew BranchesExpansionDrive ThruDelivery
Marketing Strategy : PromotionAbove the line (TV Ads theme)Family Time : confidentTeenagers : get moreChild to Parent : Let’s try
Marketing Strategy : PromotionBelow the lineLocalized MenuIn-Store Ads.Nutrition LabelsMobile Kitchen
Marketing Strategy
Marketing Strategy:  PeopleService people Training: Operation man, 	CountermenQuality Control: 	Field Service report  (service, quality, cleanliness andoverall performance)McDonald’s Best Practice: Restaurant,  Country and RegionMcDonald’s staff: Competency in carrierMcDonald’s culture: Each of employee should have McDonald’s culture mindset
Marketing Strategy:  ProcessService blueprintMcDonald’s code of conduct
Marketing Strategy:  Physical EvidenceStandard Restaurant
Marketing Strategy:  Physical EvidenceStandard CleanlinessStandard dressing
McDonald’s  CRMRonald Club
McDonald’s  CRMSocial Network
McDonald’s  CRMMoms’ quality respondents program
McDonald’s  CRMMcDonald’sRecall the good old day
McDonald’s  CSRRonald McDonald house charities
McDonald’s  CSRGreener than ever
McDonald’s  CSRI’m lovin’ it’ I’m lovin’ China
McDonald’s  CSRMcDonald’s Community
Operation StrategyFranchise ManagementQuality ControlR&DSupply Chain Management

SM_McDonald's