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McDonald's Business Strategy
Transcript of McDonald's Business Strategy
McDonald's distinguish from rivals.
Strong advertising strategy.
Adopted around 23 slogans in US.
Reasonable & affordable prices.
High training courses.
High technological machines.
Excellence Customer Service. Distinctive Competencies Physical Resource::-
McDonald's has around 14,000 outlets in United State.
McDonald's has one of huge supply chain.
Sustainable Supply as company's value.
McDonald's focuses on the 3E's:
Economics Distinctive Competencies Financial Resource:-
Operating Income was 8.5 billion dollars in 2011.
The Global Sales growth reached 5.6%.
Total return to investor is 35%.
Around 15% of McDonald's restaurants owned by the company.
Out of 34,000 outlets nearly 27,075 were franchised or licensed.
Statistic show raise in Europe, Asia/Middle East and Africa overall revenue. Distinctive Competencies Efficiency:-
Serving a low cost food on a short time:
-Similar food in all branches
-The cooking processes will be timed and controlled
-Employees will be provided with the needed equipment
Effective supply chain:
-McDonald’s Code of Conduct
-Using Supplier Management System
-McDonald’s Supplier Performance Index (training courses for suppliers)
Own innovation center Business Strategy McDonald's Corporation Done by:
Hind Ali Distinctive Competencies Quality:-
Using Global Restaurant Operations Improvement Process
-Following Standard Operational Procedures
-Service of “McDonald’s Business Integrity Line”
-Using the strategy of “from farm to restaurants”
-Advance the nutrition of the food.
-Using “Hazard Analysis and Critical Control Point system” Distinctive Competencies Distinctive Competencies Innovation:-
Happy Meal 1979
Breakfast meals to their business in 1972
Drive- Thru concept 1975
Tik Tok Easy Shop model
McCafe, the specialty coffee line in mid-2007
“Come as you are” the outdoor innovation in Paris Responsiveness to Customers:-
Provides valued product and service at lower prices
Menus designed based on the regions
reduced the used of Trans fatty acids
Provide the nutrition details
The SWOT analyze updated based on customer demands Distinctive Competencies Human Resource:-
McDonald's apply holistic approach.
Spread the value of the organization through workforces.
Manage diversity of labors.
Changed from cash register to computerized points-of-sale technology.
Touch screen system & self-serving devices.
Wi-Fi hotspots in most of the restaurant globally.
Use biodiesel technology. Thank you for listening
Any Question? McDonalds modern technology Cost leader ship and focused cost leadership:
Strategy of Maintaining low cost
McDonalds is a cost leader by (keeping the store efficient + every day operation cost low)
Family friendly low cost restaurant
Focuses on cutting time + cost
Modern technological advancement equipment Competitive Strategies Families and kids
Business Customers McDonalds new menu “Made for you” preparation food system Stock management of McDonalds McDonalds served 100% halal Product
Improvement in the menu depends on the customer’s demand and taste
Served variety of seasonal product
Stock Management to meet the customers need
Product safely packaged
Satisfying customer need after selling the product
McDonalds disabled customer
“Made for you” preparation food system McDonalds Happy meal McDonalds Oatmeal Differentiation and focused differentiation:
Launching oatmeal nationwide
Focusing on new technology platform
“Happy Meal” for children
Focused on “Best fast-food restaurant chain” Leisure Customers
Midday snackers Customer Group Customer Need Competitive Strategies Future Focused Strategy:
Plan to open vegetarian restaurants in India in the mid of 2013
The first such outlets globally for the world’s biggest restaurant chain
Hindus see cows as sacred and avoid beef
Product items are:
McAloo, Tikki burger, a sandwich with a mashed-potato patty, the Pizza McPuff, a vegetable and cheese pastry.
50% Menu is vegetarian
McDonalds provide more salad + healthy food Competitive Strategies