...Unit V Case Study McDonalds was founded in 1940 in San Bernardino, California and was recognized as McDonald’s Corporation in 1955 in Illinois. Presently the corporation is serving more than 68 million customers on daily basis with 35000 stores in around 119 countries. McDonalds works with the strategy of “Plan to win”. The product positioning map of McDonalds is in line with its Corporate Strategy. Since winning in the food industry means gaining large market shares, McDonalds is doing well in attracting customers and is a sustainable growth company. The company is better than its competitors in terms of speed of service, price and taste. However, the company is required to improve and do better than the past in the areas of quality and customer service in order to sustain in the competitive environment. Product positioning Map: The map represents the position or standing of the products and services in the market. The map consists of 2 lines (x and y axis). The products are positioned for various criteria like price, status, quality, and reliability. The below product positioning map shows McDonalds and Burger King’s product position is based on providing high quality products to its customers at low price. High Price Low Quality High Quality Low Price The concentration of Burger King is on narrow product positioning. As...
Words: 655 - Pages: 3
...Product positioning map for McDonald's Submitted by Date of submission Product Positioning map Product positioning with MCD corporate strategy McDonald has perceived product-positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation. McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive . (McDonald's, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (McDonald's, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (McDonald's, "n.d."). This is in line with sales. These are...
Words: 950 - Pages: 4
...Unit V Case Study Corey Reed Columbia Southern University BBA 4951, Business Policy and Strategy Professor Don Jernigan, MBA McDonald’s Case Study V McDonald’s perceived product positioning maps in comparison to their corporate strategy do line up to what is expected. There are areas for improvement in relation to their direct competition in every town. In reference to EPS/EBIT, it is relevant to their strategy implementation. McDonald’s product positioning maps do line up with their corporate strategy. Their strategy or motto is “Plan to Win”. When I think of a fast food restaurant winning, I think of winning over the masses of customer traffic. They certainly do this well. What makes up this strategy is; continued growth in the US and abroad, being a sustainable company, new items, new designs of business models, and remaining very competitive (NMINM's University, "n.d."). There is nothing about being the best quality, friendliest customer service, healthiest option, or most comfortable atmosphere. In these categories, I feel that they want to just do better than they have in the past with continued improvements. When you take a look at these product positioning maps, they tend to fall on the lower ends and very conservative in many fields such as atmosphere, quality, healthy choices, and limited choices (NMINM's University, "n.d."). Areas they tend to do better than some of their competition is speed of service, taste, and price (NMINM's University, "n.d."). This...
Words: 816 - Pages: 4
...University of Jordan Faculty of Business Strategic Management “Coca-Cola Company” Case Study STRATEGIC MANAGEMENT Prepared By Fathi Salem Mohammed Abdullah 2009 History analysis • In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle in his backyard. Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he who first scripted "Coca Cola" into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob's Pharmacy in Atlanta on May 8, 1886. Until 1905, the soft drink, marketed as a tonic, contained extracts of cocaine as well as the caffeine-rich kola nut. Until the 1960s, both small town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks, and fast food restaurants became popular. On April 23, 1985, the trade secret "New Coke" formula was released. Today, products of the Coca Cola Company are consumed at the rate of more than one billion drinks per day. • • • • • Vision Statement (actual) To maintain our reputation as the leading cola company in the world. Mission...
Words: 4609 - Pages: 19
...Financial Analysis of the McDonald’s Corporation MCD, New York Stock Exchange One McDonalds Corp Plaza Dept. 332 Oak Brook, IL 60523 630-623-3154 Sheena Harper-Nelson Webster University COMPANY OVERVIEW: Brief description of the company McDonald’s is one of the largest fast food restaurants today. There are over 35,000 restaurants in 117 countries at the end of 2013. Out of those restaurants, 26,338 are franchised or licensed. That is over 80 % of the company. There are only 6,399 restaurants operated by The Company (McDonald’s). McDonald’s is a corporation that involves serving meals fast. McDonald’s is a customer service based company. Base on Wall Street journal, McDonald’s was one the two companies that ended 2008 with a gain (www.aboutmcdonalds.com) Company history McDonald’s has been around since 1940. It was founded by Dick and Mac McDonald’s their first store was a Bar-B-Q restaurant in San Bernardino, Ca. They closed the Bar-B-Q for only 3 months to make alterations. The first menu had nine items, hamburger, cheese burger, soft drinks milk, coffee, potato chips and slice of pie. In 1949 the world famous fries replaced the potatoes. McDonald’s opened their 100th store in Fond Du Lac, Wisconsin. In 1962, the McDonald’s in Denver, Colorado was the first to get indoor seats. On McDonald’s 10th anniversary the stock was $22.50 per share. Ronald McDonald’s appeared in his first commercial in 1966. The Big Mac was introduced in 1968. It has...
Words: 2695 - Pages: 11
...STOCK INVESTMENT REPORT Prepared by: A. Smith Date: 07/04/2011 Industry Overview McDonalds Corporation (NYSE : MCD) is an American industry that is undoubtedly the world's leading fast-food service organization. Since its incorporation in 1955, McDonald's Corporation has spanned its services over 119 countries in 6 continents. About 80% of the restaurants are run by franchisees or through joint ventures with local business-people. The popular chain is well known for its Big Macs, Quarter Pounders, and Chicken McNuggets as well as more recent additions in response to changing customer palates - salads, wraps and smoothies. Helped by these new menu offers and the Mc Café line-up, the company, as of March 31, 2011, posted revenues that were 2% higher than the last quarter. According to Thomson Reuters, McDonald's reported sales rose to $6.21 billion from $5.97 billion in 2010. That’s an increase of (6.21/5.97) – 1 = 76% in revenue – that’s how fast the company’s expanding! Analyzing Industry Strengths and Weaknesses As investors (current or future), this will help us identify trends in order to gauge revenue growth over time. Other tools that help develop information about the past so that it can be used to get a handle on the future are financial ratios. Financial ratios are a valuable and easy way to interpret the numbers found in statements. It can help to answer critical questions such as whether the business is carrying excess debt or inventory, whether...
Words: 2638 - Pages: 11
...Business Strategy Analysis: McDonald’s Corporation is the world’s largest fast-food chain in the restaurant industry, serving on average 69 million customers a day. Their stores are corporate or franchised owned, with franchising being highly beneficial to their success by producing 32% of their total revenue. McDonald’s is in a highly competitive industry with market saturation because of low barriers to enter. The industry competes on price, quality, and service. McDonald’s faces competition with full-service restaurants and fast-food restaurants in the area. Their main competitors are Burger King, YUM! Brands, and Wendy’s International. The industry has faced scrutiny on the quality of their products because of a more health concise society. McDonald’s strategy for success is based off of cost efficiency, product development, and marketing and promotions. These factors help form the strong brand that McDonald’s is today. Since their establishment with Ray Kroc, they have focused on driving their success from the 3-legged stool principal representing: McDonald’s employees, the owner/operators, and their suppliers. The stool needs all three to have a good balance in order to function, without either one of the legs success cannot be achieved. All three of them work together to create new products, to reduce costs, and to achieve outstanding customer service. There is commitment in helping all three legs of the stool to succeed. The suppliers play a key role by providing high...
Words: 5685 - Pages: 23
...Panera Bread Company is a national bakery-cafe with 1,504 locations across the US and Canada. This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, we hope you, the reader, will gain usable insight on Panera Bread and its value. We will give a recommendation to our readers according to our given information. Panera Bread is a chain of bakery-cafe quick service restaurants in the United States and Canada that sells breads, sandwiches, soups, salads, and other bakery items. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis. Panera bread was once originally known as the St. Louis Bread Company. In 1993, Au Bon Pain Co. purchased the Saint Louis Bread Company, which was founded by Ken Rosenthal. At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area. In May 1999, to expand Panera Bread into a national restaurant, Au Bon Pain Co. sold its other chains, including Au Bon Pain, which is now owned by Compass Group North America. Au Bon Pain Co. then renamed itself Panera Bread. The company operates and franchises 1,504 Panera Bread bakery-cafés in 40 states and 17 facilities that deliver fresh dough to the bakery-cafés every day. In its headquarters city of St. Louis, Panera Bread still operates under the name St. Louis Bread Company. The St. Louis Metropolitan area has over 100 locations. In 2005...
Words: 4506 - Pages: 19
...Panera Bread Company is a national bakery-cafe with 1,504 locations across the US and Canada. This case study provides information regarding the past performance, current analysis, stock valuation, market evaluation, and industry comparison. In this analysis and case study, we hope you, the reader, will gain usable insight on Panera Bread and its value. We will give a recommendation to our readers according to our given information. Panera Bread is a chain of bakery-cafe quick service restaurants in the United States and Canada that sells breads, sandwiches, soups, salads, and other bakery items. Its headquarters are in Sunset Hills, Missouri, a suburb of St. Louis. Panera bread was once originally known as the St. Louis Bread Company. In 1993, Au Bon Pain Co. purchased the Saint Louis Bread Company, which was founded by Ken Rosenthal. At the same time, the St. Louis Bread Company was renovating its 20 bakery-cafés in the St. Louis area. In May 1999, to expand Panera Bread into a national restaurant, Au Bon Pain Co. sold its other chains, including Au Bon Pain, which is now owned by Compass Group North America. Au Bon Pain Co. then renamed itself Panera Bread. The company operates and franchises 1,504 Panera Bread bakery-cafés in 40 states and 17 facilities that deliver fresh dough to the bakery-cafés every day. In its headquarters city of St. Louis, Panera Bread still operates under the name St. Louis Bread Company. The St. Louis Metropolitan area has over 100 locations. In 2005...
Words: 4506 - Pages: 19
...McDonald’s CFO and His Roles Leah P. Hairston GB 360 Principles of Finance Instructor: Ms. A. Divine September 28, 2014 Table of Contents * Abstract……………………………………………………………………………..p.3 * Background of the Company………………………………………………………..p.4-5 * Background of the CFO……………………………………………………………..p.5 * Current Roles of the CFO…………………………………………………………...p.6-7 * Company Financials…………………………………………………………………p.7-10 * Recent Financial Statements………………………………………………………p.10-13 * Liquidity Ratios………………………………………………………………………p.14 * Profitability Management Ratios…………………………………………………….p.14 * Debt Management……………………………………………………………………..p.15 * Analyst Commentaries……………………………………………………………p.15-16 * Conclusion……………………………………………………………………………p.16 * Works-Cited APA style………………………………………………………………p.17 Abstract The CFO of McDonald’s has a very important role in the company. CFO’s take care of the controllership duties, treasurer duties, and economic strategy and forecasting duties. Addressing the issues surrounding capital structure is one of the most important duties of a CFO. Peter J. Bensen, 51, is Corporate Executive Vice President and Chief Financial Officer, a position he has held since January 2008. From April 2007 through December 2007, he served as Corporate Senior Vice President-Controller. Prior to that time, Mr. Bensen served as Corporate Vice President-Assistant Controller from February 2002 through March 2007. There are currently...
Words: 3643 - Pages: 15
...Domino’s Pizza Enterprises Limited (DMP) Student Research: This report is published for educational purposes only by students competing in the La Trobe Investment Research Challenge. 19th June 2012 Fast Food Industry 19 June 2012 La Trobe Investment Research Challenge Ticker: DMP Price: $9.7 EPS FY (c) 0.31 0.33 0.38 0.44 0.46 DPS (c) 0.22 0.23 0.27 0.31 0.32 Franking (%) 100 100 100 100 100 Recommendation: HOLD Target Price: $10.67 P/E (x) 29.81 29.14 25.29 22.26 21.22 Dividend Yield (%) 2.38 2.40 2.52 2.72 2.74 2011A 2012E 2013E 2014E 2015E Investment Summary We initiate coverage of Domino’s Pizza Enterprises Limited (DMP) with a hold recommendation and a target price of $10.67 using Discounted Cash Flow Valuation (DCF), offering a 10% upside from current stock price at $9.70 on 19th June, 2012. As DMP operates in regions with different levels of risks, growth and margins, our estimation of revenue is based on top down approach considering the market share in these regions. We believe DMP may offer a long term upside if it can successfully execute its business plan of opening new stores and maintaining its same store sales growth in Australia and New Zealand (ANZ) and France, Netherlands, and Belgium (Europe). Highlights Future growth driven by increasing store count: DMP currently owns over 900 stores, with the goal of opening 50-60 new stores per year over the next 5 years. Its franchise/corporate strategy allows a long-term target of 750 stores in ANZ...
Words: 8454 - Pages: 34
...Domino’s Pizza Enterprises Limited (DMP) Student Research: This report is published for educational purposes only by students competing in the La Trobe Investment Research Challenge. 19th June 2012 Fast Food Industry 19 June 2012 La Trobe Investment Research Challenge Ticker: DMP Price: $9.7 EPS FY (c) 0.31 0.33 0.38 0.44 0.46 DPS (c) 0.22 0.23 0.27 0.31 0.32 Franking (%) 100 100 100 100 100 Recommendation: HOLD Target Price: $10.67 P/E (x) 29.81 29.14 25.29 22.26 21.22 Dividend Yield (%) 2.38 2.40 2.52 2.72 2.74 2011A 2012E 2013E 2014E 2015E Investment Summary We initiate coverage of Domino’s Pizza Enterprises Limited (DMP) with a hold recommendation and a target price of $10.67 using Discounted Cash Flow Valuation (DCF), offering a 10% upside from current stock price at $9.70 on 19th June, 2012. As DMP operates in regions with different levels of risks, growth and margins, our estimation of revenue is based on top down approach considering the market share in these regions. We believe DMP may offer a long term upside if it can successfully execute its business plan of opening new stores and maintaining its same store sales growth in Australia and New Zealand (ANZ) and France, Netherlands, and Belgium (Europe). Highlights Future growth driven by increasing store count: DMP currently owns over 900 stores, with the goal of opening 50-60 new stores per year over the next 5 years. Its franchise/corporate strategy allows a long-term target of 750 stores in ANZ...
Words: 8454 - Pages: 34
...STARBUCKSFINANAL 1 STARBUCKS FINANCIAL ANALYSIS Cathy Jo Biddinger Dr. Professor Dana Leland Financial Management March 15, 2013 STARBUCKSFINANAL 2 STARBUCKS FINANCIAL ANALYSIS Searching for a multinational company to invest in there are many factors to consider. While doing research for a company and after much consideration and searching, I have chosen Starbucks Coffee Company. Starbucks is a publically traded company and as a financial analyst and after my research we will be able to make a full detailed decision about whether to invest or to go with another company. Starbucks Corporation is well known around the world as one of the most prestigious places to purchase your coffee. This coffeehouse is the “premier roaster, marketer and retailer of specialty coffee in the world (NASDAQ, 2013). This select coffeehouse has a wide range of high-quality coffees that they purchase. They also sell special handcrafted coffee, tea and other beverages and a selection of food items for each and every customer that is unique to their own individual taste. Starbucks has mapped their objective to be that of the most recognized and respected brands in the world. Starbucks Corporation is internationally known. Their mission is “to inspire and nurture the human spirit – one person; one cup and one neighborhood at a time (Starbucks.com). Millions of people walk through the doors of Starbucks every day. With having over 17...
Words: 2903 - Pages: 12
...Sri Lanka | Diversified Holdings Initiation of coverage EQUITY RESEARCH 5 September 2013 CT Holdings PLC (CTHR) Cashing in on consumption growth CT Holdings (CTHR) is the fourth-largest Sri Lankan diversified company by market capitalization. The company holds controlling interests in Cargills (CSE ticker: CARG, CTHR’s 70%-owned food retail company), the country’s largest chain of supermarkets, as well as in several companies in the food processing, restaurant, real estate, entertainment and financial services sectors. We expect CTHR’s revenues from continuing operations to post an 11.1% CAGR over FY14E-FY16E and net margin to expand 40bps to 2.3% by FY16E. Rising disposable income should continue to boost consumer demand and benefit Sri Lanka’s modern food retail market, driving CTHR’s retail and wholesale distribution segment (84% of revenue in FY13) at an 8.8% CAGR over FY14EFY16E. We expect margins to benefit from higher food sales and economies of scale in food processing. However, high finance costs resulting from CTHR’s recent spate of acquisitions may pressure earnings. We arrive at a valuation range of LKR126-153 for CTHR, compared with the current share price of LKR140, as at 4 September 2013. Sri Lanka’s organized food retail penetration grew to 15% in 2012 from 10% in 2004. This growth was supported by rising disposable income (12.6% CAGR over 2010-2012) and a slowly increasing preference for shopping at modern retail outlets. However, penetration remains lower...
Words: 19574 - Pages: 79
...S w STARBUCKS Ariff Kachra prepared this case under the supervision of Professor Mary Crossan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 1997, Ivey Management Services Version: (A) 2009-09-09 Mr. Howard Schultz, the Chairman and CEO of Starbucks Corporation, had just given a speech on the future of the coffee industry at a well-known business school. As he left the lecture hall, he stopped at the University’s most popular coffee shop, the Brewery. The shop’s sign indicated that it was “Now Serving Starbucks Coffee.” As Mr. Schultz ordered the House Blend, he noticed that the Brewery was a far cry from any Starbucks coffeehouse. The shop was messy, the service was poor, and the coffee was average. As Mr. Schultz was leaving the Brewery, Orin Smith, Starbucks President and COO, called him on his cellular phone. McDonald’s, whom Starbucks had turned...
Words: 10465 - Pages: 42
