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Copy of McDonald's Rebirth Through Moderation

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Thachavong Julsawat

on 28 February 2014

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Transcript of Copy of McDonald's Rebirth Through Moderation

A10-Group 2
Mc'Donald Rebirth Through Moderation
case study !
^3^
/\_/\
( 0 . 0)

Topic
+ changing the type of customers

+ The Arch Deluxe

+ Domestic troubles

+ Extra Value Meal

+ Menu expansion
McDonald's is reaching the limits of its ability to grow without drastic change.
I. The McDonald's growth machine
II. Storm clouds for the domestic operation
the essential product: HAMBURGER
(for more than 4 decades)
+ billions/17 years
+restaurants 1800(1994)->2400 (1995)
+7012 outlets/ 89 countries
_universal appeal
_be frequently consumed
_unlimited potential
III. The situation in the millennium
GreenBerg's law
satellite restaurants
Taking over stores from weak competitions
Risk in pursuit of growth
with diversification
massive debt and overhead
jump hastily into acquisitions
More stores->more per-capita transaction
2 factors:
+ convenient
+ market share
184 company-owned Roy Roger outlets

80 stores fastfood chain in Italy

17 restaurants from Georgie Pie chain
drive-through window
Facter in the invincibility of McDonald
+ Menu
+ Standards
+ Employees
+ Advertising
+ Target market
1. Souring Franchisee Relation
2. Menu Problems
1. In US
2. In the rest of the world
Domestic trouble
vs
Extra value meal
143 regional chain -> 1000 national chain
More new products
"buy" market share = willing to sacrifice profits
1. Greenberg's efforts
<
benefits
cost
thousands of new restaurants
+Russia
stay discipline 12 new restaurants Modern facility
keep profitable
prevent cannibalization
2000
market share
opening new stores
+ changing the type of customers

+ The Arch Deluxe

+ Domestic troubles

+ Extra Value Meal

+ Menu expansion
1. Souring Franchisee Relation
2. Menu Problems
Domestic trouble
vs
Extra value meal
McLobster Roll
Home-style buger
bagel breakfast sandwiches
_existing stores
_food diversification
_operations
_stockholders
_cleanliness
_fast service
_dependable quality of food
_friendly, well-groomed
employees
selling 2 of McDonald's biggest sandwiches for $1
McDonald's kitchen "Made For U"
McDonald menu item
control of operation standard slip
thousands of units, company-owed, franchised ???
Strong and Enduring Growth
without Diversification
Beware of Market Share
Slow-down strategy
Maintaining high standards
Lessons learned
Stringent controls
Contingency planning
Kind and Gentle firm in
competitive environment
Franchising 2000:
All restaurants now had to charge the same prices, or risk losing their franchise
We'll watch
over you
very carefully!
clean, family atmosphere
quick, cheerful service
Kind & Gentle
franchisees?
employees?
suppliers?
customers?
-> mad-cow histeria and woes
losing 2 CEOs in only
a few months
->Foreign Restaurants: 15900 -> 12408
capital
Japan
Rusia
3600 restaurants 65% burger market 1.3 bil customers
rise cautions:
+
+
IV. Later development
dividend
stock
3. Rebirth
2. James R.Cantalupo
- Tastier food
+ 85 different ideas
obesity
Renovation
supersize
+ $1.29 breaded chicken snack wrap
new salad
happy meal
breakfast items, coffe
Thanks You !
^^!
Full transcript