When we think of the best option of having a quick quality meal at low cost; McDonalds clicks our mind the first. The restaurant is most loved by children & youngster as well.

1. Whenwe thinkof the bestoptionof havinga quickqualitymeal atlow cost; McDonalds clicksour mind
the first. The restaurantis mostlovedbychildren&youngsteraswell. Thiscanbe because of their
restaurantavailability,quickservice,goodhospitalityservice and none othercheap goodfoodoption.
McDonald’sQuick-ServiceRestaurantisone of the mostwell-knownbrandsinthe world. Ithas the
largestrestaurantchains all overthe world,approximately36,000 restaurants. Asperthe Forbes
Magazine,McDonald’sisthe 6th
most value brandall aroundthe worldwiththe marketcap of $92.5
Billion(May2015).
Company Profile
In 1937, it started off as the hot dog standin California. The veryfirstMcDonald’swasbuiltin1940
by the McDonald’s brothers(Dick& Mack) & Raykroc. The brotherssoonrealizedthathamburgers
were theirmostprofitable menuitem, andthenchangedtheirbusinesstoserve alimitedmenu.
Firstinternational restaurantopenedinCanada& PuertoRicoin 1967. The business headquarteris
inOak Brook, Illinois, US.Steve Easterbrook is the currentpresident&CEO of McDonalds.

2. KEY FIGURES:
 Theyserve around 69 millionpeople aroundthe world everyday.Theyhave chainsof more
than 36,000 restaurants around the world,operatinginmore than 100 countries.In 2014, they
made company operated salesof $18, 169 millionandfromfranchise operated of $9,272
million;total revenue of$27.44 billion.Theyearnedthe profitof $4.75 billion.
 FastFood Nation alsostatesthat McDonald'sis the largestprivate operatorof playgroundsin
the U.S., as well asthe single largestpurchaserof beef,pork,potatoes,andapples.The selection
of meatsMcDonald'susesvariestosome extentbasedonthe culture of the host country.
 More than 1.9 millionpeople workforMcDonald’sandits franchisees.Andmore than30
countriesrecognize itasthe greatplace to work. Accordingto Fast FoodNation byEric Schlosser
(2001), nearlyone ineightworkersinthe U.S.have at some time beenemployedby
McDonald's.Employeesare encouragedbyMcDonald'sCorp.to maintaintheirhealthbysinging

3. alongto theirfavorite songsinordertorelieve stress,attending churchservices inordertohave
a lowerbloodpressure,andtakingtwovacationsannuallyinordertoreduce riskfor myocardial
infarction.
McDonaldnizationof the Society
McDonald's hasbecome emblematicof globalization,sometimesreferredtoasthe
"McDonaldization"of society. The Economistnewspaperusesthe "BigMac Index":the comparison
of a BigMac's costin variousworld currencies whichcanbe usedtoinformallyjudge these
currencies'purchasingpowerparity. Norwayhasthe mostexpensive BigMac inthe worldasof July
2011, while the countrywiththe leastexpensive BigMac is India (albeitforaMaharaja Mac—the
nextcheapestBigMac is Hong Kong).
Types ofBusiness
 Restaurants
Theyrun restaurantsinthe overcrowdedcities.Take-awaycountersare alsothere outsidethe
restaurantsforthe guestswhowantto take-awaytheirmeal.
 Drive-Thru
The 1st
McDonald’sDrive-ThruopenedinSierraVista,Arizonain1975. Drive-Thruisbasically
meantfor travelersdrivingonhighwayandinsearchof quickmeal tocatch. These drive-Thru
justhas the take-awaycounter.
BusinessModel
At Mcdonalds,customersare servedoverthe counterfordeliveringquickservice andalsotocut down
the cost. Low Price,hygiene,consistentfoodquality,limitedmenuetcare the USP of the fast-food
restaurant.
McDonald's Corporationearnsrevenue asan investorin properties,a franchiserof restaurants, and an
operator of restaurants. While aglobal Brand,the vastmajorityof McDonald’srestaurants – more than
80% worldwide andnearly 90% inthe U.S. – are ownedandoperatedbyapproximately5,000
independent,small-andmid-sizedbusinessmenandwomen.
The McDonald's Corporation's businessmodel isslightlydifferentfromthatof most otherfast-food
chains.In additiontoordinary franchise feesandmarketingfees,whichare calculatedasa percentage
of sales,McDonald's alsocollectrent,whichmayalsobe calculatedonthe basisof sales. Asa condition
of many franchise agreements,whichvarybycontract,age,country,and location,the Corporationmay
ownor lease the propertiesonwhichMcDonald'sfranchisesare located.Inmost,if notall cases,the
franchisee doesnotownthe locationof itsrestaurants
The UnitedKingdomandIrelandbusinessmodel isdifferentfromthe U.S,inthat fewerthan30% of
restaurantsare franchised,withthe majorityunderthe ownershipof the company.McDonald'strains its
franchiseesandothersat HamburgerUniversity inOakBrook,Illinois.Inothercountries,McDonald's

4. restaurantsare operatedbyjointventuresof McDonald'sCorporationandother,local entitiesor
governments
As a matterof policy,McDonald'sdoesnotmake directsalesof foodor materialstofranchisees,instead
organizingthe supplyof foodandmaterialstorestaurantsthrough approvedthirdpartylogistics
operators
Lets have a look at some of the strength and weaknessof the business.
 STRENGHT:
Havinga largestfastfoodmarketisthe mainstrengthof theirbusiness.Locallyadaptedfood
menu& targetingchildren addsmore.Theymaintainthe qualitystandardsbyopeningquality
assurance centers.Theymaintainthe service bytrainingtheiremployeesthroughHamburger
University.Preparingvariousmenusaccordingtopeople’schoiceindifferentcountriesaddsto
McDonald’sstrength. Theyintroduce happymeal in 1976 speciallytomotivate childrentocome
to theirrestaurants. The businesssuccessfullytargetsyoungchildrenthroughoffering
playgrounds,toyswithitsmeal &advertisement.
Apart fromhavingconsistentfoodmenu,McDonaldsadaptstodifferentculture andconditions
whenitsetsup businessindifferentpartsof the world. For examples;inMuslimcountries&in
Indiapeople don’teatporkandbeef respectively.Sotheychangedingredientsof the fooditems
to make adjustmenttotheirreligiousbeliefs.Adoptingdifferentwaysof promotingtheirown
products,welcomingpeopleof differentculture withpeople’schoice of foodhelpedMcDonalds
to grow rapidlyall overthe world.

5.  WEEKNESS:
McDonaldshave beingaroundfor a verylongtime.Customerswant newthingsveryfrequently
and theyswitchtonewproductsveryeasilyif theyfindattractive.So,theyneedtobe very
innovative toholdtheirstake incustomers.Fastfoodis noteventhe healthyfood.Due to
growingawarenessforhealthyfood,itisnotbeingacceptedglobally.Sothe businessneedsto
practice on thisfactor to standin all marketsmaintainingthe regional taste. McDonaldshas
beinghighlycriticizedforofferingunhealthyfoodtoitscustomers,stimulatingobesityand
strongmarketingfocusonyoungchildren.
RedesigningofMcDonalds
In 2006, McDonald's introducedits "Forever Young" brand by redesigning all of its restaurants, the
firstmajorredesignsince the 1970s. The goal of the redesignistobe more like a coffee shop,similar
to Starbucks.The designincludeswoodentables,faux-leatherchairs,andmutedcolors; the red was
mutedto terracotta, the yellow was shifted to golden for a more "sunny" look, and olive and sage
green were also added. To create a warmer look, the restaurants have less plastic and more brick
and wood,withmodernhanginglightstoproduce asofterglow.Manyrestaurantsnow feature free
Wi-Fi andflatscreenTVs.Otherupgradesinclude doubledrive-thrus,flatroofsinsteadof the angled
red roofs, and replacing fiber glass with wood. Also, instead of the familiar golden arches, the
restaurants now feature "semi-swooshes" (half of a golden arch), similar to the Nike swoosh.
Threat to the Business
People are becomingmore consciousof eatinghealthfoodratherthanMcDonald’sHumburger.
Local fastfoodrestaurantscan oftenofferamore local approachto servingfoodandmenuthat
exactlyrepresentslocal tastes.AlthoughMcdonaldsdoesagreatjobinadaptingitsown menuto
local taste,risingnumberof local fastfoodchainsand theirlower meal pricesisatreat to
McDonlads.The businesshasalreadybeingsuedformanytimesandlostquite afew lawsuits.
Lawsuitsare expensive astheyrequire timeandmoney.
Aggressive MarketingEfforts
McDonald’sglobal brandis well known.Marketingandpromotional effortsfocusonvalue,quality,
foodtaste,menuchoice,nutrition,convenience andthe customerexperience.The Company
continuouslyendeavorstoimprove itssocial responsibilityandenvironmentalpracticestoachieve
long-termsustainability,whichbenefitsMcDonald’sandthe communitiesitserves.
Theirprimarycompetitorsare otherfastfoodchainslike BurgerKing,Yum!Brands, Subway &Wendy’s.
In 2014, its quarterlysalesfellforthe firsttime inseventeenyears.Thoughthere iscomparable decline
insales;theirunique businessmodel andstructure enablethemto generate significantcashflow.To
overcome theirsofterperformance, theyare redefiningmenuchoice andpersonalizationandtryingto
provide solutionsthatwill provide theirguestscustomizablerestaurantexperience. They are alsotrying
to focuson the hospitalitybytakingmeasure like fixingself-orderingkiosksandprovidingtable service.
McDonald’seffectivenessandprofitabilityisobviouslywell supportedbytheirstrongcompetitive

6. positionandmarketshare intheirprimaryproductmarket. The company isthrivingasit isboth
effectiveandefficient.
Ref:
http://www.bloomberg.com/news/articles/2015-01-07/mcdonalds-new-turnaround-plan-is-so-1990s
http://www.economist.com/blogs/dailychart/2011/07/big-mac-index
http://www.bloomberg.com/bw/stories/2006-05-14/mickey-ds-mcmakeover
http://www.edb.gov.hk/attachment/en/curriculum-development/kla/pshe/references-and-
resources/integrated-humanities/secondary-three/md_worksheet01.pdf
http://www.slideshare.net/jayshah1025/mcdonaldscase-study
http://www.aboutmcdonalds.com/mcd/our_company/business-model.html

7. http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/McDonald%27s%202014%
20Annual%20Report.PDF