2. History
Timeline
Milestones
Interesting Facts
Mission
Vision
Products/Services offered
Value Proposition
Business Portfolio
Business Portfolio Analysis
SWOT Analysis
References
3. 1937
• Patrick McDonald starts “Airdrome”
1940
• Richard and Maurice McDonald move the
restaurant to San Bernardino, California
4. 1955
• Ray Kroc founds "McDonald's Systems, Inc." on March
2, as a legal structure for his planned franchises. Kroc
opens the ninth McDonald's restaurant in Des Plaines,
Illinois, in suburban Chicago on April 15.
6. 1959
• 100th McD restaurant opens
1959
• First Billboard Advertisement.
1963
• Ronald McDonald’s first appearance
7. 1960s Look for the
Golden Arches Campaign
1970s Global Expansion
1980s Burger Wars
8. Golden Arch in
Times Square, New York
McDonalds opens in Germany, China, Netherlands, Japan, Singapore
9.
10. • Comes to India
• Pakistan and Partnership with Disney/Pixar
• Buys Chipotle shares
• Introduces WiFi
• Construction of the largest McD at the London
Olympics Site begins
1996
1998
1998
2005
2011
11. 2011: Subway surpasses McDonald's as
the largest single-brand restaurant
chain and the largest restaurant
operator globally.
12. Interesting facts:
•McWorld had 12700 McD outlets in 1992.
•Now it has around 33,000 in 121 countries.
•1 in 8 American workers are employed by McD.
•McD feeds 68 million people each day.
•McD’s Golden Arches are recognised by more
people than the cross.
13. •The Queen of England owns a McD near
Buckingham Palace
•McD sells 75 hamburgers every second
•McD opens a new restaurant every 14.5
hours.
14. "McDonald's brand 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.“
15. "McDonald's vision is to be the world's best quick
service restaurant experience. Being the best means
providing outstanding quality, service, cleanliness, and
value, so that we make every customer in every
restaurant smile."
16. Words from Don Thompson - CEO & President(McD)
" Good has always been an important part of our
heritage - and it's an equally important part of our
future".
19. Services provided:
• Free Wifi @ McD.- free internet in McD outlets.
• Arch Card - Gift Cards, Pre Paid Credit Card like thing.
• Play places and Parties - We can arrange parties and
hangout sessions in McD outlets, the McD people will
arrange all the necessary things for the party.
20.
21. McDonald's stands for "friendliness, cleanliness,
consistency, and convenience.“
It’s is this convenience or speed and the fact you always
know what you’re going to get which is McDonald’s value
proposition.
Dimensions of value proposition
22. MCDONALD’S VALUES
Our values summarized in "Q.S.C. & V.". Provide good quality, services to
customer. Have a cleanliness environment when customer enjoys their meal.
The value of food product makes every customer is smiling.
➢We place the customer experience at the core of all we do
Our customers are the reason for our existence. We demonstrate our
appreciation by providing them with high quality food and superior service, in
a clean, welcoming environment, at a great value. Our goal is QSC&V for
each and every customer, each and every time.
➢We are committed to our people
We provide opportunity, nurture talent, develop leaders and reward
achievement. We believe that a team of well-trained individuals with diverse
backgrounds and experiences, working together in an environment that
fosters respect and drives high levels of engagement, is essential to
our continued success.
23. ➢We operate our business ethically
Sound ethics is good business. At McDonald’s, we hold ourselves and conduct
our business to
high standards of fairness, honesty, and integrity. We are individually accountable
and collectively responsible.
➢We give back to our communities
We take seriously the responsibilities that come with being a leader. We help our
customers build better communities, support Ronald McDonald House Charities,
and leverage our size, scope and resources to help make the world a better
place.
➢We grow our business profitably
McDonald’s is a publicly traded company. As such, we work to provide sustained
profitable growth for our shareholders. This requires a continuing focus on our
customers and the health of our system.
➢We strive continually to improve
We are a learning organization that aims to anticipate and respond to changing
customer,
employee and system needs through constant evolution and innovation.
24. ➢We believe in the McDonald’s System
McDonald’s business model, depicted by the
“three-legged stool” of owner/operators, suppliers
and company employees, is our foundation, and
the balance of interests among the three groups
is key.
In the late 1970s, competition from other hamburger chains such as Burger King and Wendy's began to intensify. Experts believed that the fast-food industry had become as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980s became known as the "burger wars". Burger King suggested to customers: "have it your way"; Wendy's offered itself as the "fresh alternative" and asked of other restaurants, "Where's the beef?" But McDonald's sales and market share continued to grow.
In the late 1970s, competition from other hamburger chains such as Burger King and Wendy's began to intensify. Experts believed that the fast-food industry had become as big as it ever would, so the companies began to battle fiercely for market share. A period of aggressive advertising campaigns and price slashing in the early 1980s became known as the "burger wars". Burger King suggested to customers: "have it your way"; Wendy's offered itself as the "fresh alternative" and asked of other restaurants, "Where's the beef?" But McDonald's sales and market share continued to grow.
These are some of McDonalds’ best selling products with the year that they were introduced in.
After a public backlash due to its unhealthy food, McDonald’s started coming up with a choice of salads as add-ons instead of the French Fries.
Customer roles:
Mc Donald’s has established a system where everyone buses their own tray before leaving. In this case, supplier focuses more on adding the value in its core specialty and “outsources” the rest of the work to the customer or complementary.
McDonald’s is a Star because of its high market growth and high market share.
In 2013, McDonald’s reached its highest revenue in at least nine years. During this time frame, the company’s revenue increased year over year, excluding 2009 when business took a slight dip due to the global recession. In 2013, 11.3 billion U.S. dollars were generated in Europe, the largest contribution to the company’s total revenue. The second largest contributor was the United States with 8.85 billion U.S. dollars. Source:Statista
In the graph below on McDonald’s profitability, you can see that the company’s gross margin has been declining over the past four years, from 40.0% in 2010 to 38.9% in the LTM period. The company’s EBITDA margin also has been relatively stable (between 36.5% and 37.0%) over the same period, rather than increasing as it had prior to 2010. The company has had difficulty maintaining gross margins due to both cost pressures and a desire to maintain low price points (ASPs) to compete with peers in local markets.
Source: http://marketrealist.com/2013/12/mcdonalds-6-year-profitability-snapshot-slowing-earnings-growth/
The statistic shows the brand value of the 10 most valuable fast food brands worldwide in 2014. In that year, the brand value of Starbucks amounted to 25.78 billion U.S. dollars. McDonald's was the most valuable fast food brand in the world with an estimated brand value of about 85.71 billion U.S. dollars.
Source: Statista