...The Ronald McDonald House Charities history starts in 1974 when a Philadelphia Eagles player’s daughter became sick with leukemia. Fred Hill and his wife had no place to sleep other than waiting rooms and hospital benches during their daughter’s three years of hospitalization. The Hills and other families traveled many miles for treatment and were not able to pay for hotel rooms. The Eagles’ manager and Fred’s teammates raised funds to donate to the pediatric oncology unit to give short term housing for the families with sick children at the Children’s Hospital of Philadelphia (n.d.) Retrieved from http://www.rmhccoastalempire.org/-mcdonald-house-charities-of-the-coastal-empire-inc. The Eagles manager, Jim Murray, requested help from the...
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...Teaching Note: Case 14 – McDonald’s Case Objectives 1. To investigate the key external environmental issues that can affect a firm’s strategy. 2. To examine how a reevaluation of strategy involves assessment of internal activities and resources. 3. To discuss the decisions and actions that a firm has to undertake to sustain a competitive advantage, especially when pursuing growth. See the table below to determine where to use this case: |Chapter Use |Key Concepts |Additional Readings or Exercises | |1: Strategy Concept |Strategic management; vision, mission, strategic |Visit McDonald’s website to evaluate its mission.| | |objectives |See an embedded video of a 1967 McDonald’s TV | | | |commercial. | |2: External Environment |External environmental forces; Porter’s five forces |Visit investor commentary on MCD, view embedded | | |model |video about current coffee strategy; read about | | | |healthy foods controversy, watch video re | | | ...
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...McDonald Case Summary: The food industry is a highly competitive market and midsize sit-down restaurant chains have been especially hard-hit as consumers cut back discretionary spending such as eating out due to the recent recession. McDonald’s however, has been very successful in a market that has proven very difficult for other restaurants; while most other restaurant chains are struggling to stay open McDonald’s has actually grown its sales and its profits. They’ve done this in part to their strategy of expanding their menu to healthier items and increasing their beverage, snack, and breakfast offerings. Another part of McDonald’s extraordinary success during the recent recession is the fact that half of its stores are located overseas where a weakened dollar has meant higher profits from local currency. This has been especially beneficial to help offset weaknesses in other areas that may not be as profitable such as its long-term strategy of expanding into the gourmet coffee market. While its strategy of increasing sales and trying to gain a foot hold in the upscale coffee market may have been a strength thus far, depending on the changing landscape and environment it has the potential of becoming a weakness. The tide has turned on the recession and the dollar is growing stronger again which will diminish the offset it has provided. Couple that with the fact that Starbucks and other gourmet coffee outlets have experienced a marked decrease in sales, McDonald’s may find...
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...global act local? Does it also think local and act global? McDonald’s is a fast-food legend that gives its consumers a chance to experience it delivering inexpensive food with consistent taste regardless of location, quick service, and a clean familiar environment. The key elements that McDonald’s use envolve both global and local elements. McDonald’s offers american style hamburgers in most of its restaurants around the world and the group people who are consuming this food is growing everday and including its french fries too. McDonald’s tries to sell its products in the same way everywhere in the world. Labeling and the brand name are two of the items used to standarize, including the product characteristics. One of the aims that McDonalds is using to create standarized set of items that can taste the same anywhere in the world where ther is a McDonald’s, it wants everyone to have the same quality in its products and the experience. McDonald’s thinks local and act global because it wants to expand by giving the rest of the world an experience that includes things that are traditional in the United States. Do you think government officials in developing countries such as Russia, China, and India welcome McDonald’s? Do consumers in these countries welcome McDonald’s? Why or why not? I think because of its well known name McDonald’s is welcome in these countries. McDonald’s also offers jobs that are needed everywhere in the world. The people in the world are changing their...
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...Markman13 (McDonald’s Case Study) Submitted by: Delos Santos, Jericho Fernando, Arden John Montano, Nicole Denise Paguirigan, Jumel Submitted to: Mr. Dindo Inso Course/Year: MKTG 4Y0-1 I. Title of the Case Mcdonald’s II. View Point Don Thompson - Position III. Time Context 1980’s: Mcdonald’s aggressively expanded overseas IV. Problem Statement 1. How would McDonald’s penetrate their market internationally? 2. What are the risks that McDonald’s will face if they expand overseas? 3. What McDonald’s must do to sustain the success of their company? V. Statement of the Objectives · They must stick to its strength which include detailed market research. · Continually offer most beneficial product mixes. · Must maintain a good quality, value and service to satisfy their customers. · Consistency and Innovation for the better growth of McDonald’s. · Promotion. · Advertisements. · Differentiation in other companies to create product of services that perceive as unique in the industry. · Develop customer intimacy. VI. Areas of Consideration · They need to study get some research to know well about the tradition and the culture of each places in different countries so that they compete globally. · Be pleasant to the customers so they can gather loyal VII. Assumptions It would be the perceptions matter. Because much like any other large organizations, the company supply chain is complex and depends on mass production supply. McDonald’s has to...
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...The similarities that I found in product offerings around the world would be that they put their classic burgers in all the menus around the world. For example, the McChicken sandwich, the Big Mac, nugget, fries, and all the classic food. Canada, Australia, and the United States have the same Monopoly promotion. After looking through different countries for McDonalds, I felt like I found a lot more differences then similarities. The whole menu changes in every different country, they make recipes that represent or famous in that country. For example, in Italy, they make pasta, a burger that they call NYCRISPY which represent New York City but even in New York they don’t have that burger. In Lebanon and all Arab countries, they have McArabia, they have so many different options for that burger that is famous and people love in Lebanon. Also, the most interesting thing is that they have McDelivery in Lebanon. I don’t think we’ll ever see that here because McDonald’s here is way cheaper and I don’t think it would be worth it. Also, after doing a lot of research, I didn’t see countries that has the dollar menu. Most of the meals are way more expensive then here. Pricing was a big difference too, in my opinion they change prices based on how much they know the country that would purchase their product even when it cost as if you’re going to a restaurant and especially it’s an American company so people wouldn’t mind it. From personal experience, I know how people in my country (Lebanon)...
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...Declining Fortunes McDonalds' fortune started declining from 2001 when it showed a disappointing performance.Compared to 2000, its total revenue grew from $14.243 billion to $14.87 billion but operating incomewent down from $3.33 billion to $2.697 billion and its net income declined from $1.977 billion to $1.637 billion... "Plan to Win Strategy" 'Plan To Win' was the company's recovery strategy so that it could again start showing improved profit margins from its operations. The purpose of the strategy was also to recapture the essence of its mission statement to make the customer happy each time he visits a McDonald's store.... The main purpose of the strategy was to bring about improvement in the company's performance by building it around five key drivers of customer experience - People, Product, Price, Place and Promotion; and by identifying opportunities on the basis of the four basic aspects of its mission statement - Quality, Service, Cleanliness and Value. The strategy was also based on what McDonald's considered as three essential components of success - Operational Excellence, Leadership Marketing and Innovation. Abstract: McDonald's had been recording declining profits since 2001. Although turnover was increasing, there was a continuous decrease in its operating profit and net profit margins. To turnaround its fortune, the company adopted the "Plan To Win" strategy in 2003. The main purpose of the strategy was to bring about improvement in the company's...
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...McDonalds Case Analysis Chandra Stevens Manda Roth Erica Jones Kaitlin Vincent Carole Hockeborn Ferris State University Table of Contents Abstract 4 Introduction 5 Situational Analysis 7 Demographics 7 Socio-Cultural 7 Political-Legal 8 Technology/Industrial 8 Economic 9 Global 9 S.W.O.T. Analysis 10 Strengths 11 Weaknesses 12 Opportunities 12 Threats 14 T.O.W.S. Analysis 15 External Strengths/Internal Opportunities 16 External Weaknesses/Internal Opportunities 16 External Strengths/Internal Threats 16 External Weaknesses/Internal Threats 16 Porter’s Five Forces 17 Threat of New Entrants 18 Bargaining Power of Suppliers 18 Bargaining Power of Buyers 19 Rivalry Amongst Existing Firms 19 Threat of Substitute Products or Services 19 Financial Ratios 20 Liquidity Ratio: Cash Ratio 21 Debt Management Ratio: Total debt Ratio 22 Profitability Ratio: Profit Margin 22 Balanced Scorecard 23 Balanced Scorecard Diagram 27 Strategy Formulation 28 Plan of Action and Recommendation 31 Highlights From This Year 31 Budget and Time Line Expectations Summary 31 Citations 33 Abstract This report reviews the McDonald’s corporation profile to include; an introduction to corporate history a time menu and current franchise information. The strategic Profile will provide a complete analysis of economic, socio-cultural, technology and global synopsis...
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...1. After updating McDonald’s corporation summary of financial data from 2003 to 2011, I found that sales were on a rise. Looking closer into McDonalds total system wide sales, I noticed that sales have been increasing since 1997. When looking even closer into the company’s total system wide sales, I found that from the year 1997 to 2010, sales over doubled. When looking at the percent change between years, I noticed that the percent change was much higher in some cases, but sales were always on the up. For example, in the year 2007 total system wide sales were up 11.9% from 2006, but in 2006 sales were only up 7.3% when compared to 2005. Overall sales wise, McDonalds has done an excellent job, in continuing and meeting new sales growth each year. 2. One of the key macro environmental trends is the recognition of the importance of heavy users of fast food restaurants. Heavy users make up 20 percent of customers but account for 60 percent of all visits. Another major change in the fast food industry is the increase in the fast-casual segment. Restaurants in the fast- casual segment include, Boston Market, Panera Bread Company, and Atlanta Bread Company. The fast casual sector is growing at a rate of 15-20% a year, because customers are willing to spend a couple dollars more for a better dining experience. Americans are beginning to eat out less compared to previous years and eating habits are changing. Part of the reason is the recession, but that should affect more...
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...this expansion, McDonald’s has faced the challenge of transferring a symbol of American culture to places where there are significant national, cultural and religious differences. This essay will analyse some management issues that McDonald’s has experienced. Firstly, the strategic debate regarding global integration versus national responsiveness will be examined. Associated with this issue, is the matter of diversity across different regions. Finally, the essay will consider McDonald’s corporate image of social responsibility in relation to environmental sustainability and increasing problems of worldwide obesity. McDonald’s as we know it today is a result of Ray Kroc taking the entrepreneurial hamburger ‘stall’ established by the McDonald brothers, and franchising the business with Ted Turner to create an international organisation (McDonald’s Australia, 2014). In the 1950s there was significant domestic growth in the United States of America. International expansion began in the late 1960s and 1970s, initially targeting Canada, the United Kingdom and western European countries of Germany, the Netherlands and Sweden (Stonehouse, et al, 2004). The first restaurant opened in Australia in 1971 (McDonald’s Australia, 2014). In 2001, McDonald’s was one of the top 10 brands and the leading food retailer serving 46 million customers per day, worldwide (Rowley, 2004). Today over 50 million customers will consume a McDonald’s product each day (McDonald’s Australia, 2014). From...
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...MC DONALDS CASE STUDY ANALYSIS OF THE COMPANY McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 68 million customers daily in 119 countries Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand using production line principles. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth. McDonald's predominantly sells hamburgers, various types of chicken sandwiches and products, French fries, soft drinks, breakfast items, and desserts. In most markets, McDonald's offers salads and vegetarian items, wraps and other localized fare. McDonald's operates over 34,000 restaurants worldwide, employing more than 1.7 million people. In 2006, McDonald's introduced its "Forever Young" brand by redesigning all of its restaurants, the first major redesign since the 1970s.McDonald's has invested $1 billion to redesign nearly all of the 14,000 restaurants by 2015. SWOT analysis of McDonald's Strengths 1. Largest fast food market share in the world. McDonald’s is the largest fast food restaurant chain in terms of total world sales (8%). It is the second largest outlet operator with more than 34...
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...McDonald’s case study Ans1. The taste of the costumer are changing rapidly because of the variety of burgers the competitors are providing in the market and the promotions of these burgers about by 2 and get 1 free, the impact the would have in the McDonald’s is that they would lose the business if they don’t come up with a better solution. Ans2. The changes in the customers taste and preference are being well reflected by the competitive strategy because of which the customers and going for different tasteful foods and which are affordable McDonald need to breakthrough that will provide new revenues of growth. Ans3. The strength of McDonald’s is the counter attack of the “BIG MAC ATTACK”, and the weakness is that McDonald’s don’t have a segment in the burger. Ans4. Yes, McDonald should develop separate strategy for the heavy user segment of the fast food industry because it is losing business and profits due to their competitors which have a separate segment of burgers. Ans5. To grow sales and profits, Jack Greenberg should create awareness with in store team members of what constitute the true fast food experience. Install a computer –based customer feedback in every restaurant, set up a similar feedback system for drive thru customer. IKEA’s case study Ans1. IKEA's firm specific advantages are clear-cut as the low cost furniture manufacturer and retailer aims to the young and price-conscious consumer. IKEA has been developing innovative modular...
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...McDonald's Operation in South Africa A Case Study Abstract: The case focuses on the strategies adopted by the world's leading fast food restaurant chain, McDonalds Corporation (McDonald's) in South Africa. McDonald's opened its first restaurant in South Africa in November 1995. Today McDonald's operates 170 restaurants in nine of South Africa's provinces-Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga, Free State, Northern Province, North West and Northern Cape. In March 2011, Shanduka Holdings, owned by Cyril Ramaphosa, acquired control of McDonald's South African operations. The deal gave Ramaphosa exclusive rights for 20 years; including the powers to lease out real estate of its stores. McDonald's has struggled under fierce home-grown competition. Famous Brands, its main rival has more than 1100 outlets operating under names such as Steers, Wimpy and Mugg and Bean. Since then, McDonald's has been expanding heavily in South Africa providing quality, service, and value to its customers. South Africa has proven to be one of the most successful markets for McDonald's at one point opening a staggering number of 30 restaurants in record time. This case concludes by addressing challenges faced by the new owners of McDonald's with increasing competition, commodity price fluctuations, and variances with direct costs. Issues: * Examine some of McDonald's efforts to localize its offerings in South Africa. * Understand McDonald's marketing strategies...
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...McDonald’s Case Analysis Nick Brown BUSN412 Business Policy May 14, 2010 CASE ANALYSIS McDonald’s COMPANY NAME: McDonald’s Corporation INDUSTRY: Food McDonald’s Corporation COMPANY WEBSITE: (www.mcdonalds.com) COMPANY BACKGROUND: Ray Kroc found McDonald’s corporation, a successful fast food restaurant, in 1955 were his vision was to create McDonalds restaurants all over the U.S, and within 3 year of establishing the franchise the corporation was already selling its 100 millionth burger. The franchise has now became a successful global fast food restaurant that sells a variety of items and has a unique philosophy that Ray Kroc envisioned with building this franchise which was “To Build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation”(McDonald’s Corporation 2009). He wanted, “To serve burgers, buns, fried and beverages that tasted just the same in Alaska as they did in Alabama”(McDonald’s Corporation 2009). The case study concentrated on the financial strengths and struggles of the franchise. With the early millennium years 2001, 2002 and 2003 the franchise seen a tremendous dip in total revenue and net profits, it wasn’t until 2007 when the company seen a turnaround in total revenue and net profits. Things were starting to look up for franchise. Currently the CEO at McDonald’s Corporation is Jim Skinner and he is providing the same vision that Ray Kroc was envisioning when he opened the doors. The...
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...McDonald’s Restaurants law case Introduction The famous 1994 Liebeck v. McDonald’s Restaurants law case, popularly known as “the hot coffee lawsuit” sparked a debate in the U.S on product liability. The case resulted from the severe burns Mrs. Liebeck got from her coffee spill. Having bought coffee from McDonald’s, Liebeck told her grandson to stop the car so that she could add sugar to her coffee. She placed the cup on her lap but it got spilled causing a third degree burn to six percent of her body and less serious burn to sixteen percent. She was hospitalized for eight days and had to undergo skin grafting. She also spent the next two years on medication. Liebeck filed a lawsuit against the fast food restaurant and was awarded $640,000 by the trial judges. The parties however, decided to settle for a confidential amount before an appeal could be decided. Many people saw the case as worthy as many people before had received burns from McDonald’s coffee but not much was done toward it. Laws and ethical principles violated The serving of very hot coffee by the McDonalds violates the product liability law (Allee 1984). Coffee at temperatures between 180-190 degrees is well known to burn when spilt. The fast food chain knew this very well and it still continued serving this very hot coffee even after over 700 previous cases of burnt reported to it. This demonstrated very well that the food chain was not ready to take any responsibility for any health effect its product...
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