McDonald's is the largest fast food company operating in over 121 countries with over 35,000 locations and 1.5 million employees. Their vision is to provide outstanding quality, service, cleanliness and value to make every customer smile. Their mission is to be their customers' favorite place to eat and drink. Some key points about their strategy in India include tailoring their menu to local customs by removing pork and beef and emphasizing vegetarian options, sourcing 99% of products locally, and opening all-vegetarian locations in religious sites. They also use made-to-order food preparation and focus on affordable prices to stay competitive.
2. Introduction
• Background:
Founded: 1955, Franchising since: 1955
Largest fast-food company
Operating in over 121 countries, over 35000 locations with 1.5 million employees
Revenues $28.1 billion in 2013.
• Mission
• Vision
• History
3.
4. Vision
"McDonald's vision is to be the world's best quick service
restaurant experience. Being the best means providing outstanding
quality, service, cleanliness, & value, so that we make every
customer in every restaurant smile."
5. Mission
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.
6. History (cont)
• 1970 1600 restaurants
• 1980 6000 McDonald’s Restaurants
• 1990 record sales
• 1994 Kuwait City, Kuwait
• 2002 Forty seven years after
30,000 locations
2000 new restaurants
World Wide Web
McDonald’s a recognized Brand Name
10. McDonald’s Organization Structure
• Having tight control of the firm
• Easily operate the company
• Improving employees’ performance
• Atmosphere of cooperation and teamwork
• The following chart is the organizational structure of McDonald
11. Key Processes
• Doing business over 100 countries
• 85% franchised restaurants
• All franchisees are independent, full-time operators
• Entrepreneur’s number-one franchise named
13. Competitive advantages
• Striving to be cost leaders: prices cannot be matched by
competitors.
• The speedy delivery of the food.
• Strong global presence and largest market share in fast-food
industry.
• Net competitive advantage.
15. Strategic directions
McDonald’s strategic plan is called ‘plan to win’. The concept of
this plan is for McDonald’s to not be the biggest fast food
restaurant chain, but to be the best fast food restaurant chain.
McDonald’s tries to achieve this by applying the five P’s:
1. People,
2. products,
3. place,
4. price and
5. promotion.
Along with this our firm also incorporate geographic strategic
plans.
16. Current strategy of McDonald's:
• Low-cost strategy to compete with competitors
• Cutting cost
• Operating more outlets
• Focusing on Plan to Win
17. Strategy 1
• Expanding to Asia market especially China and India.
Implementation:
• Identifying market segmentation.
• Focusing more on potential market.
• Legal permission in foreign country
• Innovating and cooperating with community
18. • Entered in India 1990’s
• Hinduism in India challenged McDonald’s
• Cattle is a gift from the gods
• They value cow milk
• Do not eat cattle
• India is also the home of about 140 million Muslims
• Muslims do not eat pork
19. McDonald’s competitors in India
• McDonald’s competes with fast food chains
like Pizza Hut, Domino’s Pizza, Papa John’s,
Nirula’s and KFC in India.
20.
21. McDonald’s Supply Chain
• McDonald’s has a dedicated supply chain in India and
sources 99% of its products from within the country.
The company has strong backward integration right
up to the farm level.
22. Local Vegetarian Menu
• In India, McDonald’s does not offer pork or beef-
based products. It’s menu is more than 50 per cent
vegetarian. The fast food retail chain has separate
production lines and processes for its vegetarian and
non-vegetarian offerings.
23. MFY (Made for You) food
preparation platform
• MFY is a unique concept (cooking method) where the
food is prepared as the customer places its order. All
new upcoming McDonald’s restaurants are based on
MFY. This cooking method has helped McDonald’s
further strengthen its food safety, hygiene and quality
standards. McDonald’s has around 10 MFY
restaurants in its portfolio.
24. All-vegetarian restaurants in
various pilgrimage sites
• : McDonald’s plans to open all-vegetarian restaurants
(by middle of 2013) at various pilgrimage sites across
India. To begin with, the company plans to target
pilgrims at sites like Vaishno Devi in Katra, Jammu
and Kashmir and at the Golden Temple in Amritsar. It
already has one outlet in Katra.
25. The most important meal for
QSRs- Morning Meals (Breakfast
• According to market research company, the NPD
Group, breakfast accounted for nearly 60 per cent of
the restaurant industry’s traffic growth over the past
five years in the U.S. Quick service restaurants sold
80 per cent of the over 12 billion morning meals
served at US restaurants for the year ending in March
2010.
26. How McDonald’s manages to
keep its prices down
• – Fast-food chains face a tough time balancing
between margin pressures and hiking prices which
can hurt volumes. Consequently, the chains have to
increase rates or rework their strategies. Affordability
has been the cornerstone of McDonald’s global
strategy. Some of its measures to achieve this include
27. Conclusion
• Good performance in fast-food industry
• Long reputation for strong marketing campaigns.
• Must change to adapt new environment
• Have more innovation and creative strategy