McDonald's Corporation
Comprehensive Case Analysis
Introduction
About everyone at some age, at some point or another, and in some country has gotten a sample of American's symbol for fast food through the golden arches of McDonald's. This report will attempt to analyze the external and internal sectors that affect the company's success. The external analysis will provide opportunities and threats while the internal analysis will show indicators of strength and weakness. It will then follow up with critical issues, strategic alternatives, recommendations and implementation. The case studied is found in Appendix 2 of Mary Coulter's "Strategic Management in Action" book.
External Analysis With the numerous fast-food chains found
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There were less of the "Ronald McDonald" commercials and more commercials with teens or middle-aged adult persons seen on TV or in internet pop-up advertising wherever McDonald's would be a sponsor. As Coulter had described the many chefs who gathered to improve on the once classic Big Mac Special Sauce, this was an effort of research and development to strengthen its product quality for the Big Mac burger. These efforts have expanded to offer product offerings such as the 100% all-natural white chicken found in the more expensive chicken strips and premium chicken sandwiches. Management has also taken initiative to further employee development. This initiative was an organizational strength, in many countries outside of the United States such as Brazil where it was named "Brazil's Best Employer", Sweden where it was named "Best Competence Company", and Australia where it was Australia's "Employer of the Year" in 1999. The old system of restaurant scoring was a weakness and when Cantalupo took over as CEO, he eliminated the old system, "Proejct Innovate" and implemented a new plan of mystery diners from outside survey firms to review the many restaurants. This new information systems, combined with internet technology, allowed store managers to compare their store's performance among others. From these turnarounds, McDonald's turned its weaknesses into strengths.
Critical Issues A critical issue that caused McDonald's Corporation ratings to dwindle down over
Trader Joe’s strategy is to provide unique products for highly educated customers at reasonable prices and excellent customer service. The efficient and effective way in which TJ has achieved this strategy has turned it into its competitive advantage. This competitive advantage has its roots on TJ’s core competency of Culture and Brand Management (Exhibit 7) which is the result of the combined effects of Infrastructure, Human Resources, Inbound Logistics and Service from the value chain (Exhibit 6).
Trader Joe’s has internally created a brand for its company using a different strategy as compared to other supermarkets. Its approach of effective relationship-building program pleases customers through unrivaled customer service. This case study presents many factors that play a part in their customer relations strategy. Trader Joe’s does not focus on advertising. Rather, it focuses on effective internal communications with employees to build strong customer relationships. Trader Joe’s takes a progressive approach to internal communications by allowing their employees to bring their own creativity to the workplace, by providing them with the context in which their role contributes to the business success, and asking for employees
In this case the plaintiff asserts that on April 28, 2014, she purchased a cup of coffee at the McDonald’s Restaurant in Ishpeming, Michigan. After she left the restaurant, while drinking the coffee she detected a sharp object in her mouth which became lodged in her throat and caused her to choke. The plaintiff claims that she pulled her car over to the side of the road and removed the object from her throat and mouth.
Senior Management of PepsiCo is evaluating the potential acquisition of two companies – Carts of Colorado and California Pizza Kitchen – in order to expand the company’s restaurant business. If indeed PepsiCo decides to pursue the acquisition of one or both, they must decide how to align each of these business units in its historically decentralized management approach and how to forge relationships between the acquired business units and existing business units. In their evaluation, Senior Management is faced with the question of whether the necessary capital investment in order to purchase one or both of the businesses can be profitable for each of the acquired business units, but must
3. What aspects of McDonald’s management ensure that it was able to deliver a consistent
First we could say that McDonalds is an American icon, but now it’s safe to say that it’s a well know iconic company around the world. With over 30 different names for McDonalds here are a few interesting ones, and in which part of the world these names are used. McDonald’s is also known as the Golden Arches, Mickey-D’s, Macca’s (Australia), Mackey-D’s, Placcy-D’s and McDog (Britain), McDo (France), MacDoh (Quebec), Mekkes, Mekki, McDoof [literally McStupid] and Der Schotte (Germany), MacDee (Indonesia), McDonaldos and McDonas (Mexico), McCancer (U.S).The nest few parts of the analysis we will breakdown McDonalds structure and go in detail. First we will start with the financial analysis and company’s health; second we move to external analysis and porters 5 forces, third we will discuss internal analysis, fourth we will identify what kind of strategy McDonalds implement and follow, and lastly what I think will be beneficial and how to implement certain changes.
McDonald’s is the quintessential fast-food chain that has dominated the globe and minds of many consumers. The strategy McDonald’s has taken that has led to its domination began when Ray Kroc bought the McDonald’s name from the two brothers and franchised the company worldwide as fast as possible. One way to accommodate for this fast growth was to establish a training center, Hamburger University, that would train store managers. As a result of Hamburger University (the first of its kind), McDonald’s created a competitive advantage over other firms because it was equipped for its tremendous growth due to its well trained employees.
McDonald's Corporation is considered to be the largest fast-food operator in the entire World and was initially formed in 1955 after Ray Kroc had pitched the idea of opening up numerous restaurants founded on the original which was owned by Mac and Dick Mac McDonald. McDonald's in 1965 decided to go public and then introduced its flagship product, which was the Big Mac, sometime in 1968 (Botterill, 2007). Today, McDonald's functions beyond 40,000 restaurants in over 200 nations and have one of the world's most extensively recognized brand names. McDonald's sales started hitting around the mark of $58 billion corporation -wide and over $30 billion in the United States alone in 2012 (S&P).
Construct a PESTEL analysis to show the competitive advantages that McDonalds has to stay and continue its operation in Hong Kong.
In February 22, 1992 a man by the name of Chris pulls his 1989 Ford Probe into the drive-thru of an Albuquerque, New Mexico McDonalds. Chris ordered a coffee for his grandmother, 79-year-old Stella Liebeck. Upon receiving the coffee Chris pulls into a parking space so Stella can introduce cream and sugar to her coffee. A 1989 Ford Probe lacks cupholders and features a slanted dashboard. Thus, Stella placed the coffee near her lap and opened the Styrofoam lid. At that moment, 180-degree liquid saturated Stella’s thighs, perineum, genital area, and inner thigh. The sweatpants worn by Stella acted as a sponge that held the scorching liquid close to her skin. Stella sustained third-degree burns over six percent of her body requiring
In 1954 Ray Kroc became the first franchisee appointed by Mac and Dick McDonald in San
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
Although McDonald’s production processes continue to evolve, their strategy at a store-level granularity has been to make profit by exploiting their process as best they can to make quality burgers and other food quickly. In order to improve their process and product, they need to look at ways to decrease the lead times, enhance the quality of the product while still empowering employees to quickly prepare the product, and automate process to remove human labor costs (even if that would mean increasing capital labor costs).
New changes success in management cannot be properly predicted as it is dependable on society and young generation attitudes. Changing McDonald image from fast and junk food to a company that provides healthy food is not easy task but it can be possible by strong marketing and advertisement campaigns the message can be forwarded to people and new image of McDonald can be promoted thus getting people rid of critic’s comments that McDonald is fattening and unhealthy brand. (Gordon & Howell, 1959)