mdsdsacdonalds presentation.pptx
TRANSCRIPT
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Presentation
onMcDonaldsPolishing the Golden
Arches
Presented byDarji Divya R (14)
Makvana Jignasa J (2)
Patel Di!ali " (#$)
%yas Rajal P (&1)
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IntroductionMcDonalds ca'e in 1$# drivein o!ened *y Dickand Ma+rice ,Mac- McDonald in .an /ernardino0 aliornia3
/y 22 McDonalds had a ##5 share o 63.3 ast ood 'arket
7ith 1#04$1 +nits in the 6nited .tates and 1&0#4 o+tlets in 12
co+ntries3
8he co'!anys !ro*le's 7ere d+e !artly to 'o+ntingco'!etition (incl+ding !rice 7ars and other 'arkettactics)initiated *y astood rivals dissatis9ed 7ith their 'arket
share and !artly to changes in cons+'er eating !reerences3
McDonalds ,Plan to :in- ai'ed at 9ve keydrivers o s+ccess; !eo!le0 !rod+cts0 !lace0 !rice0 and !ro'otion3
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characteristics of theMcdonalds
Market .iie ycle
?+'*er and .i
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Porters ve forces model
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5-forces analysis
Rivalry A'ong o'!eting .ellers;%ery .trong
8hreat o ntry; Relatively :eak
o'!etition ro' .+*stit+tes; %ery.trong
/argaining Po7er o .+!!liers; :eak /argaining Po7er o /+yers;
Moderate to 7eak
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Conclusion concerning the overallstrength of competitive pressures
8he 'arket is cro7ded 7ith rivals ando+tlets and gro7th is slo73
there is likely to *e s+stained !ro9ta*ility
*eca+se o the 7eak !o7er ocons+'ers0 7eak !o7er o s+!!liers and7eak threat o
entry0 overall ind+stry !ro9ta*ility 7ill*e ke!t in check d+e to strong rivalry and'o+nting co'!etition ro' s+*stit+tes3
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factors for critical to competitivesuccess in the fast-food industry
Pri'e locations
Prod+ct innovation and i'!roved'en+ ite's
/rand re!+tation
B+ality
Marketing C +sto'er .ervice %al+e
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McDonalds strategy has evolvedunder
each of its CEOs.
McDonald brothers:
reated ,.!eedy .ervice .yste'-eat+ring selservice resta+rant 7itha li'ited 'en+0 a kitchen that+tili
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onneborn ! "roc:
Eor'ed McDonalds cor!oration
='!le'ented real estate holding seg'ento *+siness 'odel
=t is interesting to note that "roc and.onne*orn had a alling o+t and .onne*orndoes not a!!ear in any o the oFcialMcDonalds history !osted on their
7e*site38his is es!ecially interesting giventhe i'!ortance o McDonalds real estateele'ent to the co'!anys *+siness 'odel3
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#red $urner ! "roc:
Eirst international e!ansion
10th resta+rant o!ened
.yste'7ide introd+ction o /ig Mac McDonalds *egan to serve *reakast
Eirst McDonalds Playland
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Michael%uinlan:
B+inlan 7as one o the 9rst Hs to ace the!ro*le's that led to McDonalds
decline3
Eaced 7ith changing c+sto'er !reerences d+e totechnological changes and health conscio+sness
=ncreased co'!etition ro' other I+ick serviceresta+rants as 7ell as nontraditional
o+tlets like grocery stores and convenience stores
.everal 'en+ ite's 7ere introd+ced as anatte'!t to co!e 7ith changes3
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&ac' (reenberg:
=ntrod+ced 4 ne7 'en+ ite's to co'*atrivals innovation0 all o 7hich ailed
,Made or o+- cooking syste' i'!le'ented
and ailed closing +nder!eror'ing overseas o+tlets
Posted 9rst I+arterly loss since 1$&
Green*erg 7as critici
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&im Cantalupo:
May +se =PHs in other co+ntries toraise reven+e
8entatively o@ering retail'erchandise or sale in certain stores
=nstalling co'!+ters in resta+rantsin !artnershi! 7ith Ereddie Mac
='!le'entation o Plan to :in
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McDonalds currentstrategy
lo7cost leadershi!
*estcost !rovider
a *estcost strategy is designed togive c+sto'ers 'ore val+e or their'oney *y co'*ining an e'!hasis onlo7 cost 7ith 'ore than 'ini'ally
acce!ta*le I+ality0 service0 eat+resand !eror'ance3
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)O$ analysis
trengths
.trong 9nancial !osition as the ind+stry leader
:idely recogni
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)ea'nesses
>ack o !rod+ct o@erings to 'eetvaried c+sto'er tastes and!reerences
Kigh e'!loyee t+rnover(inco'e)
Many resta+rants are o+tdated
?e7 resta+rants canni*ali
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Opportunities
=ncreasing international de'and !rovideso!!ort+nities or increased international
!ansion (gro7th)
!ansion o 'en+ to 'eet healthier cons+'er!reerences
Ealling glo*al (+niversal) trade *arriers inattractive 'arkets
Advances in !rod+ction technology 8he strength o the dollar has hel! international
!ro9ts 7hen translated into 63.3 dollars
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$hreats >oss o sales ro' s+*stit+tes like eating at ho'e
and cas+al dining
6nsta*le international econo'ic conditions co+ldslo7 entry into so'e 'arkets
McDonalds ails to 'eet healthier 'en+!reerences o cons+'ers0 orcing the' to go toco'!etitors
=ncreasing co'!etition a'ong rivals contin+es tosI+ee
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Conclusions
McDonalds is the do'inant do'esticand glo*al leader in the B.R oodind+stry
=t has o+tstanding *rand a7areness0access to large econo'ies o scale0 a!roven !rod+ction syste'0 and a
large c+sto'er *ase3 Ko7ever0McDonalds has *een 7eakened *ylo7 c+sto'er serviceL!rod+ct I+ality
scores3
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McDonalds Plan to )in
=ncreasing 9nancial !ro9ta*ility in the!resence o a nearly do'estic 'arket
Re*+ilding the co'!anys re!+tation
or ast0 riendly service andcleanliness
='!le'enting the Plan to :in
Maintaining !rod+ct and 'arketinginnovation to !rotect the core 'arketro' rivals and ro' s+*stit+tes
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peci*c areas of focus:
+sto'er .ervice
Prod+ct B+ality
Resta+rant Modernioyalty
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McDonalds can maintain itsleadership position
>everage *rand a7areness and advertising toens+re that c+sto'ers res!ond3
H@er healthier 'en+ selections or ad+lts andchildren0 !ossi*ly choosing a !o!+lar diet!rogra' and creating selected ite's to cater tocons+'ers on the !rogra'3 Advertise healthyo@erings or children3
=nternally0 McDonalds needs to contin+eoc+sing on its core *+siness0 and strea'lininginternal !rocesses to ens+re oc+s is on +nior'0clean0 I+ality0 service oriented resta+rants3
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$+," O/