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McDonald's

A comprehensive outlook at the multi-billion dollar fast food chain.
by

shannon sarkar

on 11 July 2014

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Transcript of McDonald's


Basic History
SWOT Analysis
Resources and Capabilities
Firm Strategy
Culture and Ethics
Political and Legal
Recommendations
Executive Summary
SWOT Analysis
Favorable
Unfavorable
internal factors
STRENGTH
• Ranked high on Fortune Magazine’s food service.

• One of the largest market leaders in the both the domestic and international markets.

• Globally operated.

• The company’s outlets are located in areas that highly visible and easy access.

• Exceptional brand recognition

• Paired up with other retailers
WEAKNESSES
• Bad reputation through media.

• Unhealthy food options on the menu.

• Lack of product innovation
OPPORTUNITIES
• International expansion

• Wifi Internet Access in restaurants.

• Creating a upscale look to current and new restaurants.
THREATS
• Competing with other competitors

• Lawsuits against McDonalds

• E-coil containments in the food
Franchise Business Model
McDonald's

by: Justen Burrhus,Christopher Reed,Jennifer Pham, Jordan Woods,Shannon Sarkar,Kendall Cantrell, Scott Goodman Jack London
Company analysis:
McDonald's
Overview
Resources and Capabilities
Capability to Adapt and Improve

Capability to successfully expand into new and different markets
Firm Strategy
Culture and Ethics
No more Pink Slime

Healthier food options

More information
USA
Political & Legal
Recommendations
External Factors
Food FIGHT
McDonald's HISTORY
First established by Dick and Mac McDonald, and later franchised by Ray Kroc
33,000 locations worldwide
1.7 million employees
located in 119 countries
serves 1% of the world population everyday
became a international corporation in 1967
McDonald's introduces geographically friendly menu
1940
1955
McDonalds Nutrition Progress
Launch of its preimum line in 2000 , with healthy options
Olympic health initative
400 and under calorie campign
Brand
Organizational
Innovation
VRIO Analysis
Sleeker image

Resource conscious

Food similar to US Market
Emerging market for food service

Brand Unknown

Low market share

Food focus drastically different
India
BE BOLD!
5 Recommendations to Push Ahead:
More Value
Adapt and Innovate
Expansion in Developing Natioins
Operational Efficiency
Improve Perception
What are your perceptions of McDonalds?
What kind of products, services, and changes would you like to see from McDonalds?
Discussion
Infrastructure
Over 33,000 stores in 118 countries
Local management centers world wide
Quality assurance centers world wide
Brand and product recognition throughout the world
Expansion advantage in new and existing markets
Value: Moderate
Rare: Moderate
Imatability: Low
Organizational: Moderate
Europe
Efficient Operations
Effective Marketing
Capable Management
Just Misunderstood?
Predominant way of doing business
Company collects royalty
Extensive hands on and classroom training
Building the owners helps build the business
New Products and Proceses
Local Knowledge
R & D
Testing
Marketing
Sustained Competitivess
Need to Constantly Improve
International Strategy
Use strong brand name as leverage
Familiarize with culture
Alter menu to cater to local tastes
Entrance into India and France
Current Strategy
Focus Points
internal operations
increase productivity with current markets
improve quality
continue building relationship with suppliers to reduce cost
Political
No set date for continued international expansion
-2012 London Olympic Games
-McDonald's Sponsorship Protested
-Doctor's Group
-Promotes Unhealthy Habits
-Responsible for Obesity Increase
-London Retained McDonald's as Sponsor
“It’s very sad that an event that celebrates the very best of athletic achievements should be sponsored by companies contributing to the obesity problem and unhealthy habits,” -Terence Stephenson, Academy of Royal Medical Colleges
Good
Prevents spreading product too thin
Bad
Missing growth opportunities in other countries
Scott Goodman
This fast food giant is catering its menu to fit the demands of the region by examining the culture and values of each country in which it operates. By actively working to provide more nutritional information and healthier food options, McDonalds is changing to provide for the new market of health-conscious consumers. While maintaining focus on the unique power it has in entrepreneur-owned franchises, McDonalds should strive to regain brand loyalty. The company needs to place more emphasis on building value, adapting, improving operational efficiency, and expanding in developing nations. In a time where the global economy is struggling, McDonalds needs to be bold!
Legal
-Happy Meal Lawsuits
-Marketing to Children
-Remove Toy from Happy Meal
-Change McDonald's Mascot
-Childhood Obesity
-Former Brazilian Manager Sues
-McDonald's Made Me Fat
-Wins Case - 1 Years Salary
Constant Improvement
Full transcript