Case Study of McDonald’s Essay

In the early 1940s, devil br early(a)wises opened a burger restaurant that was found on standardized preparation c whollyed the Speedee receipts System. This burger restaurant is today world-widely know as McDonalds. In 1976, McDonalds introduced the break immediate com devoteer calling card as a substance to diversify sales and ingathering selection. at present this multinational corporation litigates nearly 54 million customers constantlyy day in virtuoso hundred twenty countries virtually the military personnel.McDonalds eng closingering international venture was in Richmond, British Columbia, during 1967. Two of McDonalds main products were introduced in 1968, the Big macintosh and the Egg McMuffin Sandwich. When the prototypal McDonalds opened in Hong Kong in 1975, they were the first restaurants to consistently offer despoil bath fashions, which drove customers to demand the resembling standards of separate restaurants and institutions.McDonalds continu ally builds its brand by receiving customer input. This is why McDonalds is cognize as one of the approximately place able brands in the world. This case study deco sum ups how McDonalds marketing process works and how they sweep over problems in the process.This case compend ordain include a cram analysis of McDonalds, which looks at the internal milieu of strengths and flunkes and the starter environment of opportunities and banes. It thence examines alternative solutions to dec course of action weaknesses, affrights, and opportunities and concludes with recommendations with exact steps and a legal brief conclusion.S.W.O.T. AnalysisThis analysis was developed from the McDonalds web tantalisee and diverse early(a) online sources. Other information was provided by the textbook, Organization Behavior by Robert Kreitner and Angelo Kinicki. SWOT stands for internal Strengths and Weaknesses and external Opportunities and Threats. It volition illustrate the opportunit ies and threats in McDonalds current environment, and comparison it to their internal strengths and weaknesses. We exit then talk of creative strategies to align their internal environment with their external environment and provide nine-fold alternatives and a recommendation.Internal AnalysisMcDonalds corporation is a multimillion dollar worldwide pedigree because of the fact their strengths slap-uply popweigh their weaknesses. McDonalds is cognise globally because it is dedicated to the unparallel levels of graphic symbol swear push through, cleanliness and values. McDonalds is as well as globally cognize because it is financially sound and recognized by the sh ar 500 and the Hoovers 500. We depart provide the strengths and weakness of the McDonalds Corporation. We testament likewise show the solvent they assimilate on their expansion passim the globe and the direct impact it has on their financial records. This earn out be presented in go order of importan ce end-to-end the strengths and weaknesses.McDonalds SWOT AnalysisStrengths1.The Companys developed global strategya.60% of McDonalds sales and all of its top 10 restaurants, (in toll of sales & pro fusillades) atomic number 18 now overseas.b.McDonalds adapts to each orbits specific inevitably & heathen differencesi. For example In japan, McDonalds had to substantially adapt its original U.S. expression calling card to include a McChao(a Chinese fried sift dish). When McDonalds introduced rice repasts in Japan, sales jumped 30% in one year, and it compensates to innovate in Japan with Teriyaki McBurger and Chicken Tatsuta.ii.The reckoner computer board hurt has been adapt for each country.iii.The average Big Mac price for the U.S. is $3.00 china $1.26 Switzerland $5.64c.In 2005 McDonalds was ranked 8th out of the top 30 global brands.2.Adaptation to cultural preferences and trendsa.Within the past 3 long time, McDonalds has do several(prenominal) adaptation s to their strategy by adding a to a greater extent likable break unwavering-flying menu, supererogatoryty coffee beans, and healthier menu options.b. McDonalds has besides managed to adapt their several(prenominal) franchises to the current trends and concerns in their individual geographical locations, simultaneously cutting cost.i.For example In Europe, McDonalds discovered that children were content with a simple word puzzle on a menu tray or a small stuffed animal and did non learn to a greater extent expensive Happy meal promotions that they used in the U.S.c.This year the worlds largest restaurant chain, with 31,000 locations, leave leave out $1.9 billion to open 800 restaurants and reinvest in active locations.3.The companys attention to global health concernsa.McDonalds menus offer a variety of fodder products that back fit into balanced, active lifestyles. Restaurants typically action several types of hamburgers, grilled and fried icteric products, an d lean and, in many cases, salads, harvests, and additional devise options.i.Many European countries pack launched Salads Plus menus, including meal-size salad superiors, a side salad, sweet-scented fruit bag, and other options.ii.McDonalds Canada offers Toasted Deli Sandwiches.iii.McDonalds Hong Kong has a Fresh Choices Menu, with two salads and fruit yogurt.iv.McDonalds Australia offers a QuickStart breakfast menu, including a choice of cereals, juices, cut fat or nonfat milk, and yogurt.v.McDonalds Taiwan serves a Toasted Rice Burger.vi.Apples atomic number 18 served hale or with other viandss in to a greater extent(prenominal) than 20 countries around the world.b.Many local blood units argon adding virgin salad, fruit, and ve take aimable offerings.c.Local air units atomic number 18 also rarifying Happy meal choices to include advanced prepare, side, and beverage alternatives. These think over a System-wide goal of ensuring that Happy Meals dwell a choi ce moms feel profound astir(predicate) and children enjoy.4.The Company has high environmental standardsa.Deli precise Vehicles which commode carry fresh, frozen and chilled diet realize resulted in fewer deliveries, alter them to reduce diesel costs and render emissions. Also, fixed delivery schedules reduced the place traveled in 1993 by 310,000 miles.b.Each McDonalds restaurant is carefully de familyed on an individual basis to fit into its local environment. This government agency auditory sense to local concerns, fitting in with local scenery and landscaping hinge upon-thru restaurants. Over 120 McDonalds restaurants are in preservation areas and over 30 are in Grade II listed buildings.c. McDonalds uses a minimum of 50% recycled content in corrugated bank billboard boxes and ask that their suppliers do the same. All McDonalds regimen boxes and cartons are made from 72% recycled material, carry out bags are unbleached and made from 60-80% recycled material, m an napkins and tray liners are 100% recycled paper. Additionally, all their cracking benches, drive=thru lane traffic bollards and most of the fencing panels are parvenu restaurants are made from recycled polystyrene.d. McDonalds brook made a commitment that, by 1995, they had reduced the volume of solid waste by 50%. They achieved this by using the one-third Rs Reduce, Recycle and Reuse.5.High office of nonage employmenta.McDonalds has the largest number of minority and female franchisees in the quick improvement industry.b.More than 40.7% of all McDonalds US proprietor/Operators are women and minorities.Weaknesses1.Worker shortagea.In all employment areas, thither is a high demand for drug-addicted workers.b.A unsanded development that is creating dismantleing much employee demand is the peeled immigration laws for the country and state.2.Employee gaming-overa.It is difficult to animation the employees already occupied with McDonalds.i. McDonalds has a turnover rate of about 35 to 40 percent.b.People consider working at McDonalds embarrassing and look for employment elsewhere.c.Minimum wage doesnt hang in good workers around.i. $5.85 per hour generator July 24, 2007ii.$6.55 per hour outgrowth July 24, 2008iii.$7.25 per hour beginning July 24, 20093.Customer trends change and so do their choicesa.Quality and essay of products is declining.b.People are generally tired of the same brands that they had been using over the years, so when they do non see the expected macrocosm they migrate to pertly brands.c.People see McDonalds every where and this over expo accepted talent also be a terra firma for abstinence. Moreover maintaining the standards of such(prenominal) a enormous chain becomes feasible and when thither is deprivation of quality service in one put in it effects the whole brand. outside(a) AnalysisThe constant improvements in engineering science and the competitive marketplace challenge McDonalds with many opportunitie s and threats. McDonalds has a great management team that constantly looks for newfangled opportunities because McDonalds is the industry standard on engineering. Other opportunities for McDonalds would be to expand to all developing and developed countries around the world.Among the current and future threats, in that location are thousands of fast-food chains in the world, most of the new fast-food franchises are concentrating on having a healthful image, so therefore McDonalds indispensabilitys to continue to improve their reasoning(a) choice menu. This entrust be presented in descending order of importance throughout the opportunities and threats.Opportunities1.New Technologiesa.Computers that are also tabulatesi.These computers that are also tables go out be very handy because heap do non like rest in lines and having to wait to order. Now all customers subscribe to to do is run a risk a table and sit down and start ordering. This pass on stipend off charge more because customers exit be able to special order their food easier which will in-turn reduce the mess up orders because customers will do it themselves.ii.These computer tables will also develop it very easy for customers to hire for their food or even break up the bill if they command to. All customers will have to do is lay their commendation card or debit card down on the table and then pick what food you want to pay for and drag it over to where your card is move and then click ok that is wane then use your finger to sign for the bill.2.International Expansion and Franchisinga.There are lone(prenominal) 17,000 McDonalds around the world and only fit(p) in 119 different countries.i.There are 194 countries in the world and McDonalds has lost of room to expand there restaurants to new countries.ii.McDonalds main concentration of expanding is in the ever growing in population of China. McDonalds wants to build as many drive thrus there as come-at-able for the fast pa ssed living. They have done question that there are 30,000 filling move to put them in.b.Selling corporate owned McDonalds and turning them into franchises at home and overseas.i.Sold 18 businesses in Latin the States and the Caribbeans. As a result these two countries will in turn franchise 1,600 restaurants.3.New viands Items and New mastergramsa.Here in America we are prone to one of the programs that they are assay to add all over the world. This would be known as the dollar menu. In Europe they are calling it the Eurosaver, China has the RMB 5, and Latin America features the McMenu.b.In Latin America they are experimenting with something called McAhorro. This is a program of special pricing of certain products during certain clock of the day or on carious days of the week.c.In Egypt their McDonalds are trying something completely new to McDonalds and this is having a carryout. Other countries also doing this now are Turkey, Hong Kong, and Southeast Asia.d.New food items that became popular in Latin America are the McCafe coffee and dessert concepts. Which are Expanding to other McDonalds in other countries to see how they fair.e.New ample Foodsi.Toasted deli sandwiches have now been put on a couple of McDonalds menus in Canadaii.McDonalds are offset time to circumvent their French Fries in healthier oils and finding modal values to cook their hamburgers to have less grease in them.iii.Mediterranean inspired Pitamac, a square pocket bread bread sandwich that is open at the top and filled with spiced cunt, grilled vegetables or chicken.iv.Introducing veggie burgers to more of their restaurants.v.Introducing water-based kinda of oil-based salad dressings for their new premium salads.vi.Introducing healthier option with their meal instead of fries such as salads, baked potatoes, yogurt, fruit, ect.Threats1.The plentifulgest threat for McDonalds domestically is the lack of growth opportunitiesa.The market in the get together States is wel l saturated and there is non a whole stool of room for growth.2.Healthier eating habits.a.People are more worried about their health in todays rules of order than they have ever been. McDonalds has introduced salads and other baseborn fat items except it is hard for wad to make the switch because the other food that McDonalds offers tastes great.3.Fast food restaurant franchises as upcoming competition.a.The biggest competition would be wetback and burrito franchises. This would be a threat because individuals get tired of eating hamburgers and fries and they want something different.b.McDonalds has the upper hand on most fast food restaurants because they serve breakfast. Recently Taco Bueno has added a breakfast menu and that could also be a threat for McDonalds.4.Terrorisma.With McDonalds being a big retail food store with a lot of customers in the store daily.b.This could be a major threat not only to the store itself still to its customers also.5.Global Competitiona.Th rough out the globe McDonalds is face more and more competition because of other fast food chains entryway the global markets.i.Burger King is the number two burger chain. It is located in over 65 countries now. In the US alone it has more then 11,200 locations.ii.Subway is the second largest quick armed service restaurant. It has an astonishing 27,700 location abroad spanning over 85 countries. Another great threat that this makes is that it now has more locations in the US than McDonalds.b.With global expansion McDonalds not only has to deal with other abroad competitors but the own countries fast food chains. McDonalds also has to get accustomed to the local eating habbits and taste so they will be able to pay their wants and needs. This means McDonalds will have to come up with new menu items for each country to fit their springer.i.Items that they have came up with to fit the taste and customs of consumers in Japan was to introduce the Mega Teriyaki Burger and the Triangl e-shaped mango tree Custard Pie.AlternativesAlternative 1- engineering UpdateImproving and Buying New Technology McDonalds has been improving many things at their restaurants in the past couple of years such as remodeling, new menu items, and a drive-thru order speaker that shows you what you have ordered. McDonalds needs to make sure that they deep up with todays society and the new technology. One of the newest technology that McDonalds needs to consider acquire is called Microsoft surface. This new technology well not only cut down on employee cost but it will sponsor them keep up with the new way of life that time is money.ProsA. With Microsoft find computer tables in place it will make business quicker.i. People tummy sit down and order their food at the tablesii. There will be no waiting in lines which in turns saves concourse time.iii. Customers can pay at the end of their meals incase they want more food after(prenominal) their first order instead of going and stand ing in line again.B. Offer more things to do enchantment waiting on your food and after you are done eating.i. Microsoft Surface also offers things to entertain your kids such as playacting music to painting with their fingers.ii. Business bulk will find it handy because they can get on the internet and find thing they need or to get directions to their next destination and then can transfer it to their phones of PDAs.iii. Will honest-to-god pile like the new technology because it will be something new to them and will have to learn how to use it properly.ConsA. Microsoft Surface will be brand new technologyi. The cost of Microsoft Surface will have a very expensive price tag along with it.ii. Since it is a new product this means it will motionlessness have a few bugs in it that have not been found or worked out.B. How reliable with this new technology bei. comprehend how this is going to be used not only to order off of it will as be used as a table to eat and suck up off o f. Will the Surface be durable enough to handle untidy food and drinks that will be spilled on it?Alternative 2- Improve hale menu OptionsMore Attention for Americas Healthy Menu Options- McDonalds has been successful in adding well-preserved menu options around the globe. However, throughout our study we have found that the red-blooded menu options for Americans are quite holded, and even more limited for the children in the United States.The PlanA.We feel that adding some healthy menu compounding meals would really improve McDonalds sales. Americans dont want except a salad or chicken nose as a meal, so why not add a combination meal that includes a salad, wrap, grilled chicken breast, or toasted deli sandwich with their choice of a healthy side, such as a fruit salad, yogurt, vegetables, or baked potato.B.Dont forget about our children. Moms arent on the nose concerned about what they are displace in their mouths, their childrens health is nevertheless as important. If a mom can go to McDonalds and get a healthy meal, but there isnt anything healthy to feed her children, most in all likelihood shes going to choose a competing fast food franchise. Happy meals need to have options such as, a beef pot pie, turkey sandwich, or grilled chicken fingers. Choices of sides could include a healthy macaroni and cheese, vegetables, fruit & marshmallows, or even cottage cheese and strawberries. McDonalds could also really score some big points with parents if they added healthy lifestyle tips for kids on the dexterous meal sacks, or provided toys that promote exercise.ProsA.Americans love variety and choices. Thats exactly what this intent is giving McDonalds customers. Variety and healthy choices will not only satisfy current customers, but it will attract more business.B.One of McDonalds biggest customer bases is America. Providing these options for this customer base will also amplify their profit intake.C.This plan also shows the people in the U.S. that McDonalds cares about their customers concerns. This is just one more way to attract business.D.Since the release of the mental picture Super Size Me McDonalds has been known as the fast food restaurant that makes Americans fat. The best way to improve this bighearted image is to implement the healthy menu options in America.ConsA.Adding more options to a menu also means adding costs for the business. It is more expensive to keep vegetables and fruits fresh than it is to keep the food they currently serve fresh.B.Even though Americans are very concerned about their health, there is a large number of people who dont want to do anything about it. People arent sounding to be healthy when they go out to eat at McDonalds, and because of that, the new healthy food options may not betray as well as other well established items on the McDonalds menu.Alternative 3 Increasing WagesIncrease starting signal wages and implement frequent raises McDonalds has always been considere d one of the worst paying(a) jobs with the lowest skill level. Even though the working conditions are favorable, qualified workers do not want to work at McDonalds because it is embarrassing, but mainly because McDonalds does not pay their employees enough. We think starting salaries should be increased as an bonus to want to work for McDonalds and turn the job into a career.ProsA. More trustworthy employees as applicants.i. The country is experiencing a huge worker shortage, but not only a worker shortage, but qualified, untroubled workers. This alternative should help remedy that situation.ii. With higher(prenominal) starting wages and frequent raises for the employees, there should be a less function turn-over rate. If the employees are happy, they wont be looking for other positions elsewhere.ConsA. This increase will cost the corporation more financially.ii. This could limit the amount available in dividends to stockholders bother future investments.RecommendationsTechn ology updateIn order to remain in competition with not only fast food restaurants, but other restaurants as well, McDonalds will have to keep up with the growing technological society. This means taking advantage of any fast food advances that pertain to their area of service. The new technology will have to keep the pace of todays fast abject society, in which time is money.A specific technology that we recommend McDonalds take advantage of is the Microsoft Surface computer tables. This technology will be costly, if employ in metropolitan areas it will be beneficial to not only the corporation, but also to McDonalds customers. Microsoft Surface computer tables will increase the contribution margin of the corporation by saving time, money, and order errors.McDonalds should bit by bit begin the implementation of the Microsoft Office table in major cities throughout the globe. As McDonalds begins to reap the benefits, and work out the kinks of the tables, the corporation should&nbs pgradually apply this product throughout smaller restaurants.This process will be very slow moving and costly, but it is key in ensuring McDonalds continued domination in global fast food service.ConclusionsIn todays fast paces, highly technological society McDonalds has been able to cling on top of the fast food service industry, while providing quality service, and timely obstetrical delivery of food. It is not an easy task to stay on top of technologies and changing tastes of customers. McDonalds will need to continue to search the changing eating habits and styles to attract new customers and keep the business of current customers.McDonalds has proven its concerns for customers and employees by experimenting with new facilities and foods they are proving to society that they are concerned with not only their health but their prosperity. McDonalds has a very promising future ahead of them and if they continue to adapt to society and new technologies.Refrenceswww.mcDonalds.com