Strengths: McDonald’s is the largest fast food restaurant chain, its sales are 8% higher than any other fast food restaurants. It serves around 68 million customers per day in over 119 countries across 35 000 stores. For this reason it has been given the name of the largest fast food market share in the world, which means the brand is well known this gives the company edge over other similar company’s like Burger King. The brand is valued at 40 million dollars which is huge compared to Burger King which are only valued at 28 million dollars. The brand has become so popular because McDonald’s clever use of Ronald McDonald Clown to promote their products which became such a hit with young children and young adults.
Regarding economies of scales, due to its high volume of production and with more than 36,000 outlets operating globally, McDonald’s can gain economies of scales easily. Thus, McDonald’s can charge its products at low prices. Whereby, new entrants with small business will have difficulty to achieve economies of scales because of low volume of production. McDonald’s have obtained big base of loyal customers and highly recognizable brand recognition whereas new entrants have to take many years and large amount of capital investment to build customer base and brand
STRATEGIC MANAGEMENT CASE STUDY: MCDONALD’S CORPORATION 1. INTRODUCTION McDonald’s Corporation is the world’s leading fast food restaurant chain with more than 34,000 local restaurants serving approximately 69 million people in 119 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local franchisees. Its revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants (McDonald’s, n.d.). The organization view themselves primarily as a franchisor and believe franchising is important to delivering great customer experiences and driving profitability.
Marketing and Strategy McDonald’s adopts different marketing strategies for different marketing environment. In United States, McDonald’s emphasizes convenience and efficiency because the rhythm of life in America is fast. McDonald’s regards white-collar workers as main target customers. On the contrary, in China, McDonald’s makes emphasis on comfort and romantic. And its target customers are young people because young people in China occupy the main part of fast food consumption.
Partnership with best brands. McDonald’s offers only most popular brands in its restaurants, such as: Coca-Cola, Dannon Yogurt, Heinz ketchup and others. 5. Children Targeting. The business successfully targets very young children through offering playgrounds, toys with its meals and advertisements.
The McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries. McDonald's India opened its first restaurant in 1996. Locally owned by Hard castle Restaurants Pvt Ltd (HPRL) and Connaught Plaza Restaurants Pvt Ltd (CPRL), there are over 310 McDonald's restaurants across the country, today. For McDonald’s every customer’s smile and happiness is of utmost importance. Its mission is to be the best company for all of its employees and deliver services with superior operational system for all customers.
McDonalds Digital Marketing Plan Over view • Spread among 119 countries • Number of restaurants are about 34000 • Employs about 1.8 million employees • Feed 6.8 million people daily which is 1% of total world population • it 90th largest economy of the world McDonald • opens a new restaurant every 14.5 hour Overview • Operates as franchisees McDonalds’ mission statement “Our mission is to be our customers' favorite place and way to eat and drink. Our worldwide operations are aligned around a global strategy called the Plan to Win, which center on an exceptional customer experience – People, Products, Place, Price and Promotion. We are committed to continuously improving our operations and enhancing our customers' experience. Goals • Penetration
Background McDonalds Corporation is the world largest hamburger restaurant serving millions of customers daily around the world. McDonalds was founded in 1940 by two brothers, Richard and Maurice McDonald in San Bernardino, California (Dess, Lumpkin, Eiser, & McNamara, 2014). The hallmark of the brother’s success was the speedy process at which they cooked and served their hamburgers. In 1954 Ray Kroc, a traveling salesman, visited the McDonald brothers restaurant and was impressed at the speed and efficiency of their operation. Kroc had a vision of multiple locations of McDonald’s restaurants and became the company’s first franchisee.
McDonald’s products are stocked pre cooked. This product is to customer and makes an order by customer the product is finished .The product can made when customers order. This called the product ‘Made for you’ .This is new technology and challenge to McDonald’s.High flexibility is key to McDonald’s success(example: a hamburger with no pickles).Besides that, a high volume of production McDonald’s because of the billions of customers that McDonald’s serves on a daily basis.McDonald’s classification by type of Customer Order.When customer need,the product can be made follow taste,size,quantity of item because in a MTO process .The MTO process's cycle is of production and order fulfillment begins with the customer order and after receiving the order with customer satisfaction with the food.The customer satisfaction is very important to McDonald’s.Besides that,the design must be completed. The most important part of this process in McDonald’s is the length of time it takes to fully deliver the product after the order has been made by customer, this is called the Lead Time. Lead time made the customer not satisfy with the service .This is can causes the customer do not want to coming again.McDonald’s is big restaurant that have billion customer and employee.So,the speed in their production is needed to fulfill their customer needed.This bigger
McDonald’s is the largest fast food restaurant chain in the United States and represent the largest restaurant company in the world, both in terms of customer served and revenue generated. In 2014 IBISWorld market research estimated MCD held an 18.6 % of market share of the entire global fast food industry; Burger King in at just 4.6%. Under franchising visionary Ray Kroc, McDonald 's became the world 's premier food brand by selling the rights to operate a McDonald 's store. With this model, MCD keeps overhead costs down and lets local owners deal with individual units, while food costs remain low and service remains fast for a culture increasingly on the go. As a low-cost provider, McDonald’s offers products that are relatively cheaper