...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
...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 per the taste test research, the grilled taste of the beef and...
Words: 655 - Pages: 3
...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 is in line with sales. These are the categories that the masses of customers tend to pay more attention to. There are over 32,000 units...
Words: 313 - Pages: 2
... | | |Marketing Issues | | |Finance/Accounting Issues | | |Research and Development (R&D) Issues | | |Management Information Systems (MIS) Issues | OBJECTIVES After studying this paper, you should be able to do the following: |1. |Explain market segmentation and product positioning as strategy-implementation tools. | |2. |Discuss procedures for determining the worth of a business. | |3. |Explain why pro forma financial analysis is a central strategy-implementation tool. | |4. |Explain how to evaluate the attractiveness of debt versus stock as a source of capital to implement strategies. | |5. |Discuss the nature and role of research and development in strategy implementation. | |6. |Explain how management information systems can determine the success of strategy-implementation...
Words: 3501 - Pages: 15
...largest organized food retailer by market capitalization listed on the Colombo Stock Exchange (CSE), and also manufactures a range of fast-moving consumer goods (FMCG) and operates a fast-food chain. The company is majority owned by its parent company CT Holdings PLC (CTHR), itself one of the largest traded conglomerates on the CSE. We expect the typical signs of consumption growth, such as rising GDP and private consumption expenditure, to support CARG’s revenue growth, at an 11.3% CAGR over FY14E-FY16E. We also forecast CARG’s EBIT margin to expand to 4.3% in FY16E from 4.1% in FY13. Margin development across all segments is likely to be tempered by persisting high operating costs, particularly electricity and fuel expenses, as well as currently underwhelming results from the brewery and biscuits businesses. CARG’s debt and gearing levels in the past three years have risen due to a string of acquisitions and investments to expand capacity of several product lines. Our SOTP and P/E analyses yield a valuation range of LKR110-149, compared with the share price of LKR149 as of 18 December 2013. We forecast revenue to post an 11.3% CAGR over FY14E-FY16E as consumption levels are set to improve. CARG’s revenue is likely to be driven by its retail segment, which we forecast to also grow at an 11.2% CAGR to FY16E, spurred by improving macroeconomic indicators, such as increasing GDP per capita and consumption expenditure. We also expect CARG’s supermarket count to grow 38% to 292 stores...
Words: 13320 - Pages: 54
...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
...VALUATION Outline Page Valuation overview 1 DCF valuation 7 47 Comparable transactions analysis 59 LBO analysis 68 Appendix VALUATI O N Comparable companies analysis 74 VAIDYA NATHAN 1 Overview “Price is what you pay. Value is what you get” VALUATI O N O V E R VI EW Value ! Price Do not confuse Price and Value. They are not the same If the Price paid is less than the Value derived, it’s a good investment VAIDYA NATHAN 2 Overview Why valuation is important? Divestitures Acquisitions How much should we pay to buy the company? How much should we sell our company/division for? Fairness opinions Research Is the price offered for our company/division fair (from a financial point of view)? Should our clients buy, sell or hold positions in a given security? Valuation Public equity offerings Hostile defense For how much should we sell our company/division in the public market? Is our company undervalued/vulnerable to a raider VALUATI O N O V E R VI EW Debt offerings New business presentations Various applications What is the underlying value of the business/assets against which debt is being issued? VAIDYA NATHAN 3 Overview The valuation process Determining a final valuation recommendation is a process of triangulation using insight from each of the relevant valuation methodologies (1) Discounted Cash Flow VALUATI O N ...
Words: 11608 - Pages: 47
...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
...Executive Summary: AT&T, based in Dallas, TX, is the largest provider of local and long distance telephone services in the United States. The company is divided into four divisions: AT&T Wireline (traditional voice and data landline service), Wireless, Advertising and Publishing and Other (includes the business integration software subsidiary). Revenues in 2008 were approximately $123 billion dollars, an increase of 4.3% over 2007. AT&T Wireless is the nation’s second largest carrier by sales and subscriptions, accounting for over 77 million customers and $69.8 billion dollars of revenue. Within AT&T the Wireless division represents the largest area of growth, compensating for customers abandoning traditional Wireline telephone service. AT&T landed a major coup in 2007 when it signed a deal with Apple to be the exclusive U.S. carrier for the iPhone. Not only did AT&T add new customers, it added more profitable customers. AT&T reports that an iPhone customer’s average revenue per user (ARPU) is $105 per month versus $60 for non-iPhone customers. AT&T’s corporate strategy for securing these profitable customers is to align itself with innovative technology, such as the iPhone, and pay a subsidy of $325 to Apple to make the iPhone more affordable for mainstream America, its target market. AT&T recoups the subsidy by locking iPhone customers into a two-year contract averaging $100 per month and maintaining this customer base through an exclusive contract with Apple. Problem Statement:...
Words: 7125 - Pages: 29
...entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity for quality growth in an industry that is simultaneously experiencing levels of maturity in the US and European markets. Internal analyses of the industry’s top players yields an in depth look into McDonald’s, Yum Brands, Burger King, and Darden Restaurants. McDonald’s is the industry leader in terms of revenues with $89B in 2013 systemwide sales, more than double of nearest competitor...
Words: 79599 - Pages: 319
...CFA Institute Research Challenge Hosted by CFA society Miami Florida Atlantic University Bloomin’ Brands, Inc. NASDAQ: BLMN Sector Industry Recommendation: BUY Services Casual Dining Restaurants Current Price Target Price Key Statistics Price 12/19/14 23.5 52 Week High 26.45 52 Week Low 15.01 Avg. Daily Vol 2,117,580 Est. Yield (%) 1 Beta 0.98 Market Cap (B) 2.94 P/E (TTM) 23.74 P/E (FWD) 18.95 Institutional Ownership (%) 92.7 Insider Ownership (%) 7.61 Shares Outstanding (M) 125.7 Public Float (M) 97.8 EPS (TTM) 1.01 PEG (FWD) 1.73 1-Month Return (%) 7.69 6-Month Return (%) 4.72 1-Yr Return (%) 0.64 $23.50 $26.28 January 20, 2015 (as of 12/19/2014) (11.85% Upside) Highlights We issue a BUY recommendation on Bloomin’ Brands, Inc. (BLMN) with a price target of $26.28. Using a blend of the discounted cash flow model and a forward Price to Earnings multiple, the valuation offers an 11.85% upside from the December 19th, 2014 closing price of $23.50. Bloomin’ Brands’ upside strength results from superior sales growth, margin improvements, and strong growth in operating cash flow. Additionally, significant brand recognition improves firm value by allowing for successful expansion both domestically and internationally. Domestic Growth to Remain Robust – Bloomin’ Brands outperforms industry peers in both sales growth and consumer traffic. Since 2010 Bloomin’ Brands has beat the KnappTrack Index in...
Words: 16449 - Pages: 66
...I. Executive Summary Coca Cola is one of the largest leading beverage company that produce products such as water, juice and juice drinks, sports drinks, energy drinks, teas and coffees. Coca Cola products are distributed through restaurants, grocery markets, street vendors, and others, all of which sell to the end users: consumers. Coke is increasing investments in bottling investments, front-end capability, equipment and people. Coke’s long –term bottling strategy is to reduce ownership interest in bottlers and sell the companies interest to investee bottlers. Coca – Cola Company has two major rivals: PepsiCo and Cadbury Schweppes PLC. PepsiCo is a fierce competitor in the beverage industry’s two fastest growing categories: water and sport drinks. Cadbury Schweppes PLC is the world’s largest confectionery company and has a strong regional beverage presence. In order for Coca – Cola to compete with PepsiCo, Coke should also focus in making a sport drinks. Consumers now a day is so conscious of their health that they buy sport drink in order to energize them to exercise more. Coca Cola should produce beverage such as sport drink in order to attract consumers to but their product instead of PepsiCo. This case answers, How can Coca – Cola produce healthy products in order to lessen health problems that consumers are facing today, the use of plastic bottles in order to help the environment and to have a new line of energy drink that is less unhealthy...
Words: 9773 - Pages: 40
...that occurs from unconventional policy, the European sovereign crisis, and slower growth in emerging markets generally remain, but the acuteness of these issues appears for now to be less sharp. Our 2013 year-end target calls for low-to-mid single digit upside (Exhibit 1) predicated on our view that 2014 corporate earnings are likely to modestly recover from our 2013 forecasted level, perhaps with profits troughing during the April 2013 earnings season. Our year-end 2013 S&P500 price target is 1434, and our bull and bear targets are 1733 and 1135 (Exhibit 1). Our EPS outlook for 2014 is $110.21, up from our 2013 forecast of $98.71, both well below consensus. Improving Michigan Confidence and tightening corporate spreads drive the relative improvement in our earnings outlook. Please see our Interactive Model: S&P500: 2013 Year-End Forecast, also published today, to play with key assumptions and change assumptions for EPS, S&P price-to-earnings multiples and the year-end price target. 3 Themes - China, Yield and Mega Cap Quality: We recommend increasing China exposure, as China-centric US equities have lagged (Exhibit 22) and are cheap (Exhibit 24) vs. US-centric equities. Our Global Economics Team forecasts 1H 2013 China GDP growth will be improving, something not assumed in either the US or Europe. We...
Words: 21028 - Pages: 85
