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Transcript of Mc Donalds
Abdullah Kharal Mission Statement:
McDonald's brand mission is to "be our customers' favorite place and way to eat." Our worldwide operations have been aligned around a global strategy called the Plan to Win centering on the five basics of an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to improving our operations and enhancing our customers' experience.
We aspire to end hunger one meal at a time by providing low cost- high quality nutritional food globally.
Corporate Responsibility Statement
McDonald's 2008 Corporate Responsibility Report
It all comes down to the food. That’s what McDonald’s is all about. The food we serve…how and where we serve it…the welfare of our employees and our suppliers’ employees…where the food comes from…and so much more. Running restaurants is a multi-faceted endeavor, but ultimately, it all comes back to the food
EFE Matrix: EFE Matrix IFE Matrix: IFE Matrix Key internal factors weights 0-1 rating 1-4 weighted score 1.Internal Strengths 2.Strong Global Presence (located in over 100 countries) 0.09 4 0.36 3.Strong Real Estate Portfolio (franchises, land, buildings) 0.09 4 0.36 4.Brand Recognition (Ronald McDonald is as famous as Mickey Mouse) 0.11 4 0.44 5.Revenue Growth 9% (Above Industry Average of 7.5%) 0.11 4 0.44 6.The Ronald McDonald House (Children Charity) 0.06 4 0.24 7.Systemization and Duplication Process (consistency) 0.09 4 0.36 Internal Weaknesses 8.Public Perception (perceived as a contributor to societies obesity problem) 0.09 1 0.09 9.Product Innovation 0.08 2 0.16 10.Advertising- targets young children (many countries ban unhealthy advertisements) 0.07 2 0.14 11.Customer Service 0.08 2 0.16 12.Market Saturation (more difficult to add new stores) 0.07 2 0.14 13.Labor Turnover 0.06 1 0.06 Total 1 2.95 SWOT Matrix: So strategies Wo strategies ST strategies Wt strategies 3.integrate into new territories(s1,s4,O5) 3.Create an organic menu(W2,O1) 2.develope green packaging for all stores(s6,O6) 2.Spend more money on research and development to create new products and services(W2,O1) 2.develope alternatives to existing menu that can be easily implemented and do not reply on more expensive commodities(S6,t1) 2.increase spending on customer service efforts to decrease legal challenges (W4,t6) 1.develop new products and services for global markets(s1,O1) 1.advertise organic products to older demographics(w3,O4,O6) 1.Launch marketing campaign of Ronal Mcdonal house to increase brand recognition and customer loyalty(S5,S3,T3,T5) 1.research and develop products that quell growing health concerns(W1,T2,T4) Competitive Profile Matrix: Ratios: As we can see from McDonald’s current ratio and quick ratio the financial health of the company is steadily improving over the years. We can see that compared to its competitors as well as the industry McDonald’s seems to be much more comfortable with its ability to pay short term debt.
The acid test ratio excludes inventory and we feel that this in an industry where inventory should be quickly convertible into cash we will not place much emphasis on this ratio although we can see that McDonald’s is also showing a strong quick ratio compared to its industry.
By comparing McDonald’s accounts receivable turnover ratio’s to its competitors as well as the industry it seems as though the company does not show a tight enough credit policy.
Overall, by looking at McDonald’s short-term liquidity analysis we believe that they have a strong footing in the industry. Analysis.
SP Average is -26/7 = -3.714 IP Average is 14/3 =4.667
CP Average is -25/7 = -3.571 FP Average is 22/5 = 4.4
Directional vector Coordinate: x-axis: -3.571 + 4.667 = 1.096
y-axis: -3.714 + 4.4 = 0.686
Conclusion (1.096 ,.0686) aggressive strategy
introducing more variety into its products and services
or product development Relative market share position:
85.96B = total market share
Relative = 61.38/85.96 = 0.714
Industry sales growth rate:-11.20%
% revenues/sales : = 22.14/36.47 = 60.7%
% PROFITS :
Total industry profits = 3060M + 848M + 102M + 57.42M = 4067.42
% PROFITS = 3060/ 4067.42 = 75.23% BCG MATRIX
Exhibit 6 1 RELATIVE MARKET SHARE INDUSTRY
RATE Objectives for 2007 and the next three years are:
Better restaurant operations
Menu variety and beverage choice
Grow market share
Maintain debt-to-capital levels to 35-40%
Create long-term profitable growth for shareholders Quantitative Strategic Planning Matrix-QSPM QSPM (Cont.) Our Plan to Win, with its strategic focus on "being better, not just bigger," has delivered even better restaurant experiences to customers and superior value to shareholders.
We have the world's best owner/operators, suppliers, and employees united in our commitment to customers.
We are leveraging greater consumer insight to deliver sustainable business results for the long-term benefit of our shareholders. Update-Current Strategy and Objectives 2007-2008 IE Matrix Create an Organic Menu.
A. Market Penetration
B. Product development & related diversification
Spend more money on research and development to create new products and services and increase the efficiency of operation.
A. Product development & related diversification Possible Strategies