Abstract
In the 90s, the firm had to cope with a number of challenges: The microwave oven, increasing health consciousness and competition.
In 1999, as Jack Greenberg took over the reins of the firm, the situation was complicated due to competition between fast-food giants.
McDonald's timelines:
1937: The McDonald brothers opened a drive-in in Passadena.
After opening a much larger restaurant in San Bernardino, they introduced the "Speedy Service System" in 1948.
1952: First McDonald's franchise in Phoenix.
1955: Ray Kroc funds McDonald's System. Inc.
1961: Kroc & Sonneborne change the franchise concept in real estate operations.
In the same years the Hamburger University was established: A key element for the McDonald's Business Model.
1963: McDonald's sells 1 million hamburgers a day, and had its first national meeting.
1965: The firm became a public company.
1971: The company opened its first restaurants in Japan, Germany and Australia.
Extract
[...] McDonalds began in 1937 serving a menu with 25 products. 80% of total sales were hamburgers, therefore in 1948 they began selling only 15 cent hamburgers, cheeseburger, potatoes chips, pie and 5 different beverages. In 1968 McDonalds introduced the famous Big Mac in their menu. Product . Nowadays, McDonalds has huge product diversity, even when company's aim is to create a set of standardized products (Big Mac) Adaptation is required for its international success; McDonalds changed some products of its menu in order to fit with the culture, religious and politic patterns of each country. [...]
[...] Price McDonalds uses price as a competitive weapon. At the beginning 15cents hamburger and in 2002 Big Mac for 99cents. Pricing Strategic: “Focus in localization not in globalization.” Big Mac in USA is $3.58 USD China is $1.83 USD Norway is $7.02 USD Place The first tiny restaurant was opened in Pasadena, California. Currently McDonalds has more than 30,000 restaurants operating in 119 countries. The company manages a strategic expansion, in where each restaurant is operated by the own company, franchises or a joint venture. [...]
[...] Organization and human resources management Culture: offering the best Philosophy: giving back to the communities Restaurant-one manager -autocratic management Corporation-hierarchical structure McDonalds develop new products to satisfy customers SWOT ANALYSIS Strengths Most recognizable logos. Golden Archer. Global Company. More than 30,000 restaurants in 109 countries. Cultural Adaptation. Leader in Quick Service Sandwich Industry. Based on Franchise Business Model. Strengths Systematization of all its food preparation process. The use only high quality standards. 2005 - the best place to work for minorities, ranked by Fortune Magazine . [...]
[...] Technologicaloffering innovation and comfort. Financial Analysis Current Ratio (Liquidity) Debt Ratio (Leverage) Net income in millions of $ (Profitability) 2 Stategic challenge The strategic challenge 2 The strategic challenge 2 The strategic challenge 3–4 Alternatives Analysis 3 3–4 Alternatives ALTERNATIVES PROS Open more company-owned restaurants - unlimited control - no lack of information Create competition between Franchise Stores - cheap - no big effort Motivation of employees - performance - corporate identity - work environment CONS - vs. strategy - expensive - risk of cannibalization - expensive 3–4 Decision Grid Weight in decison TOTAL = 1.0 Cost Risk Time Total Score Alternative = = = Alternative = = = Alternative = = = 3–4 Winner Alternative 3 Motivation of employees 4 Implementation plan 4 How to motivate McDonald's employees? [...]
[...] Special menu for its main target market (Happy Meal). Image: Brand image and logo in the mind of millions. Adaptation System. Core and Distinctive Competences Adaptation System and its Lack of Innovation, can be unfavorable. They are diminishing its brand equity and image, straying from its core competency. Its core competences are a source of competitive advantage and by using them in the right way the firm can definitely be sustain in the competitive market. [...]
