...McDonald’s Corp has been experiencing some difficult times. Their fourth quarter profits have declined, from 1.4 billion the previous year and revenue has also fallen by almost 10%. It is shocking that the “world’s largest restaurant chain by sales,” quoted almost a 25% drop in earning in the 4th quarter. This decline has come as a result of the following challenges that are expected to last well into the first half of 2015- changes in consumer taste as well as McDonald’s mistakes with its menu. McDonald’s has discovered that it has lost customers to healthier food options as well as to its more prosperous competitors. In an attempt to improve itself, McDonald’s has produced the following goals: 1. Menu Cutbacks 2. More customizable options and 3. Image repair. In order to achieve the above goals, McDonald’s has launched a new campaign, rebranding its “I’m loving it” slogan. They have also reduced their number of store openings in the “hardest-hit markets,” thus enabling McDonald’s to invest that money into kiosks in order to reach the younger population. Additionally, McDonald’s has decided to sell some of their restaurants to franchisees, therefore reducing their experiences with risk. Lastly, McDonald’s has decided that they will not continue to increase their menu prices in order to offset cost. While McDonald’s continues to make the necessary changes, it is understood that their earnings will reflect the fluctuations of such. Although McDonald’s may be experiencing...
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...in 1948 the model was about affordable dining for family who wanted to eat out. The “Speedy Service System” was also implemented that included an assembly line of sorts, a nine-item menu, and an all male staff. The operations were proven successful in 1952 ad the first franchise was sold to Neil Fox who opened a restaurant in Phoenix, Arizona and created the well-known golden arches of McDonalds. Fox had huge success with the store and the brothers were reluctant at first to begin a national franchise system, but soon realized that too many copycats were creeping up and they needed an advantage and a head start. Ray Croc joined the team as the exclusive franchise agent in the United States. Some of the problems and challenges facing the company is the increase in competition, poor management, bad marketing, and lack of response to the changes in the needs of franchises and customers. This resulted in the strategic issues that needed to be implemented to continue growing success for the company. Going global is critical in the expansion of McDonalds. Over the past couple of decades, the major chains have also begun to expand into the global marketplace and have opened franchises up around the world. McDonald’s currently operates in...
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...Case Study of McDonald’s I. Name of the Company McDonald’s Corporation II. Point of View Newly appointed CEO of McDonald’s, Charles Bell III. Time Context April 15, 2004, after the death of James R. Cantalupo IV. Historical Background of the Company The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger-shaped head whose name was "Speedee". By 1967, Speedee was eventually replaced with Ronald McDonald when the company first filed a U.S. trademark on a clown-shaped man having puffed-out costume legs. Since it was founded more than 50 years ago, McDonald’s has been defining the fast food business. However, the company had been stumbling over the past decade due to its rapid expansion in the 1990s and the lack of adequate employee training. McDonald’s was headed into serious trouble until the arrival of James Cantalupo, who turned around the company by introducing new additions in its menu and cutting back on its expansion plans. During his brief tenure, McDonalds recorded strong growth in sales over the last three quarters. V. Statement of the...
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...Consultancy Project Report McDonald’s By Haroon Zahid Qureshi CIIT/FA14-EMBA-207/CVC Master’s in Business Administration (Executive) COMSATS Institute of Information Technology Virtual Campus – Pakistan INTRODUCTION OVERVIEW OF FAST FOOD INDUSTRIES The food industry is on a high as Indians continue to have a feast. Fueled by what can be termed as a perfect ingredient for any industry - large disposable incomes - the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. An increasing number of international fast food chains rushing to India is because all of them see tremendous potential in for this type of business. The large upwardly mobile population in the urban areas tend to eat out more often or business or for leisure. The various players operating in India are the well-established Indian chains like Nirula's, Haldiram's and multinational companies like McDonalds, Pizza hut, Domino's pizza, etc. In addition to these, apparently some of the best known international food chains are looking at India. Among them are Great American Disaster, The Burger King, Mexican food chain Tacogrill, Move-n-pick, etc. are some of them to name. The players are fighting on products, pricing, positioning and trying to convert their first trials into regular purchase by providing delightful service quality. The focus is on product quality and standardization on taste. Consistency is the key, as its standardization...
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...Term Paper Background info: McDonald’s is one of the world’s largest hamburger fast food restaurants, serving about 68 million customers daily across 35,000 outlets worldwide. The company began in 1940 by brothers Richard and Maurice McDonald. Within a few years of beginning their soon to be worldly renowned fast food chain, the brothers were joined by Ray Kroc as a franchise agent in 1955 and oversaw its worldwide growth. Now McDonalds is well known throughout the world with their famous “M” logo, or “Golden Arches”. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. In 2013, the corporation had annual revenues of $28.1 billion and more profits compared to the year before. As we can see, their revenue and profits increase by the year and they become more known around the world. McDonald’s competitors consist of Burger King, In-N-Out Burger, and 5 Guys. Although McDonald’s is very well known worldwide, makes billions of dollars, and makes it hard for their competitors, their customer satisfaction isn’t complementary to their success. Secondary Data: Customer satisfaction is very important in order for businesses to succeed. In the past year, McDonald’s has lacked the ability to provide efficient and successful service. According to vice president of business research for McDonald’s USA, Steve Levigne, “…service is broken.” (Jargon). Mr. Levigne is trying to imply that if McDonald’s is trying to maximize their potential...
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...ase 3–6: McDonald’s and C KFC: Recipes for Success in China Quick Service Restaurant Giants in the Middle Kingdom In 2008, McDonald’s and KFC were the two largest quickservice restaurants (QSR) in the world, with 31,999 and 15,580 outlets, respectively.1 Both chains were renowned for their broad spectrum of consumers on a global basis. McDonald’s appeared to be a clear winner in international expansion. It had over 17,500 international outlets and was the first corporation to set up a solid foundation for international franchising. It spearheaded global expansion with its first overseas outlet in Canada in 1967, and entered Japan in 1971.2 McDonald’s outlets had tremendous success in Japan—despite the difference in culture— with record-breaking daily sales and speed of expansion in the initial stage.3 KFC also started international expansion early, opening its first overseas outlet in England in 1964. However, it was given a bumpy ride when it began to penetrate the market in Asia. The Japanese outlets were far less successful than McDonald’s and only started to make a profit in 1976, six years after KFC entered Japan. KFC outlets opened in Hong Kong in 1973 but were all closed down within two years. The company would eventually win the confidence of Hong Kong customers ten years after its first entry. In Taiwan it experienced relatively smoother development, although KFC headquarters was to spend a huge amount of money and effort in order to get the...
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... Case Assignment # 2 Dow Jones Index ( McDonald's ) The Dow Jones Industrial Average is average price of 30 stoccks traded on the New York Stock Exchange and Nasdaq. Charles Dow invented Dow Jones Industrial Average in 1896. Companies like General Electric, Disney, Exxon and Microsoft includes in the Dow Jones Industry Average. DJIA is one of the single and oldest index in the world. Roy Kroc discovered a small burger restaurent in california. From that time now it serve to 118 countries now with more than 34,000 restaurents serving nearly 69 millio people everyday.In 1961, Ray launched a training program, later called Hamburger University, at a new restaurant in Elk Grove Village, Illinois. There, franchisees and operators were trained in the scientific methods of running a successful McDonald’s. Hamburger U also had a research and to develop new cooking, freezing, storing and serving methods. Today, more than 80,000 people have graduated from the program. Sustainability is an important focus for McDonald’s. Their sustainability efforts shows that their business policies and practices complements their company and makes a positive impact on societies it’s involved in. McDonald’s rising and continual existence is very significant, along with numerous opportunities and expectations. It is employing over 1.8 million employees all around the world in over 118 countries. Moreover, McDonald’s is hosting signature sustainability programs as a key to...
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...Global Success of McDonald's MBA/521 Jan-7th-2012 Abstract When people think about the franchising concept, McDonald's usually comes up first as a prime example. Although McDonald's was not the first franchise business Isaac Singer, the inventor of the sewing machine gets credit for originating the franchise idea-the hamburger chain certainly exemplifies franchising success. The first McDonald's restaurant was opened by brothers Dick and Mac McDonald in 1940 on Route 66 in San Bernadino, California. The menu had about 25 offerings, and carhops brought the food out to patrons waiting in their cars. Today, McDonald's franchise network is the world’s leading food service retailer with more than 30,000 franchise restaurants serving 52 million people in more than 100 countries. Of those stores, more than 70% are owned by independent operator franchisees (Franchise Direct, n.d). In the following pages a brief summary of how McDonald's has been able to successfully establish itself at National and International Level is presented. McDonald's Success Story McDonald's has over the years continued to stay on the growth curve by recursively innovating and adopting though they have had some setbacks along the way for example about eight yrs ago they reported their 1st loss in a quarter in the history of the company, though many saw this as the beginning of the end of the company, McDonald's looked at this...
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...There four strategies altogether in this model, one for each quadrant. First quadrant is about market penetration, second is about product development, third is about market development and lastly is diversification. Mc Donald’s product/market expansion grids are as follows: Market penetration Marketing efforts of the company to offer their existing product in the current market is called market penetration strategy. This strategy is when the company is looking to adapt for increasing their sales and profits. The best way to do this is to attract the competitor’s customer and looking for potential customer for the existing products. There are three major way to increasing current product market share which are encourage current customer to buy more, attract competitor’s customer, and convince non-user to use the products. McDonald’s current products are Big Mac, Grilled chicken Foldovers, Quarter Pounder, Beverages, and others. As for their current market, they have students, working professionals and also families. In order to increase their market, Mc Donald’s collaborate with institutes and universities for opening an outlet at campuses, easily accessible places and commercial area. Besides that, McDonald’s also invest on advertisement, vouchers, and coupons. McDonald’s advertisements are also creative to attract the non-user product to buy their products. Another example is, in summer, McDonald’s offer soft drinks no matter what size, for $1. The company would like their...
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...McDonald’s Corporation Analyst Maria Jose Abuawad April 23, 2013 Pros: Cons: Figure 1 1 Year Performance MCD vs. S&P 500 Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2015 P/E Projected 2015 EPS Dividend Yield Debt Rating Beta MCD NYSE Restaurants Consumer Staples Income and Capital Appreciation US $99.3 Billion $83.31 - $99.78 $99.05 18.48 17.5x $7.24 3.10% A 0.34 Recommendation: HOLD Strong brand Economies of scale Cohesive franchisee system International growth opportunities High profit margins Pays a dividend Market share leader Vulnerable to currency exchange Highly competitive industry Obesity propensity Porter’s Five Forces: Threat of Competition: HIGH Threat of New Entrants: LOW Threat of Substitutes: HIGH Power of Suppliers: MODERATE Power of Buyers: MODERATE Brief Overview McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving nearly 69 million people in 119 countries. The company operates in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald’s employs 1.8 million people. It also franchises 80% of its restaurants. The company was founded in 1940 and is based in...
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...(2013) It serves 68 million customers daily in 119 countries McDonald’s Type: Public restaurant Founded: May 15, 1940 in San Bemardina and California April 15, 1995 McDonald’s corporation in Des Planines, Illinois Founder: Richard & Maurice McDonald’s founder of McDonald’s Restaurant Ray Kroc McDonald Corporation founder Head Quarter: Oak Broak Illinois No. of location: 34000 worldwide Area served: Worldwide History In 1937, Patrick McDonald’s open “The Airdrome”, a food stand, on Huntington Drive near the Monrovia airport California – Hamburgers was 10cents and all you drink orange juice was 5cents In 1940, his two sons, Maurice and Richard moved the entire building 40 miles east, west 14th and 1398 North E Streets in Bernardino California. The restaurant was renamed as “McDonald’s Bar-B-Q” and served 25 items In 1948, after the McDonald’s brother realized that most of profit came from selling hamburgers, then they closed down their food stand, drive-in to established a simple menu of hamburgers, French fries, soft drinks, apple pie and cheese burgers. The restaurant name changed again, this time to simply “McDonald’s” and re-opened its doors on December 12, 1948 In 1953, the McDonald's brothers began to franchise their successful starting in Phoenix, Arizona and Downey California. In 1954, Ray Kroc a seller of multi-mixer milkshake machine learned that the McDonald's brothers were using eight of his machines...
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...McDonald’s Corporate Company Profile |About McDonald's: [pic] | |McDonald's is the leading global foodservice retailer with more than 30,000 local restaurants serving 52 million people in more than 100 countries each | |day. More than 70% of McDonald's restaurants worldwide are owned and operated by independent local men and women. | |McDonald's is one of the world's most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of | |the informal eating-out market in virtually every country in which we do business. | | | |Serves the world some of its favorite foods - World Famous French Fries, Big Mac, Quarter Pounder, Chicken McNuggets and Egg McMuffin. | | | |[pic] [pic] [pic] | | ...
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...ST. HRM PRESENTED TO: PROF: SOHAIL SALEEM PRESENTED BY: ADEEBA ASLAM SUNNA AHMED HIRRA PERVAIZ MCDONALD’S CORPORATE PROFILE McDonald's is the world's leading fast-food company by sales, with about 32,000 restaurants serving burgers and fries in about 120 countries. (There are nearly 14,000 Golden Arches locations in the US.) The popular chain is well-known for its Big Macs, Quarter Pounders, and Chicken McNuggets. Most of its outlets are free-standing units, but McDonald's also has many units located in airports and retail areas. PRODUCTS McDonald's is proud to offer a wide variety of high-quality, great tasting menu options. The restaurants offer substantially uniform menu consisting of hamburgers and cheeseburgers. The menu includes the following Big Mac Quarter Pounder with Cheese Filet-O-Fish Several chicken sandwiches French fries Chicken Mc Nuggets Salads Low-fat shakes, Mc Flurries Sundaes. Cones Pies Cookies Soft drinks as well as other beverages COMPETITION McDonald’s restaurants compete with international, national, regional and local retailers of food products. McDonald’s competes on the basis of: • Price • Convenience • Service, by offering quality food products. Its competitors include: • • • • • Burger King Wendy’s Hardees Taco bell and KFC ORGANIZATIONAL ANALYSIS EXTERNAL ENVIRONMENT POLITICAL ECONOMICS SOCIAL/CULTURAL TECHNOLOGY LEGAL ENVIRONMENT • • • • • • • SWOT FRAMEWORK ANALYSIS STRENGTHS Leader in the Quick Service Sandwich Industry...
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...[pic] “One world, One Burger” - McDonald’s CERTIFICATE This is to certify that our GROUP, of S.Y.BMS ( B ) , Student of BIRLA College, Kalyan (W). Has completed this project. The title “ “McDONALDS CORPORATION ” as a part of S.Y.BMS course 2008-09 has collected the required information to reliable sources . This project is complete and fit for submission. PRINCIPAL, GUIDE, DR.NARESH CHANDRA DEPT. OF MANAGEMENT BIRLA COLLEGE. STUDIES. SUBMISSION DATE: - 16TH FEBRUARY, 2009 AKNOWLEDGEMENT I HAVE GREAT PLEASURE IN PRESENTING MY PROJECT ENTITLED MC DONALD I TAKE THIS AN OPPORTUNITY TO EXPRESS MY DEEPEST GRATITUDE & INEPTNESS TO ALL THOSE WHO CONTRIBUTED INDIRECTLY THEIR VALUABLE TIME & ASSISTED ME IN MY PROJECT. I WOULD LIKE TO THANK MY PROJECT GUIDES, ALL THE FACULTY MEMBERS. FOR THIS APPROVAL & ALSO FOR HER VALUABLE GUIDANCE & SUPPORT IN COMPLETING MY PROJECT OF MC DONALD. LAST BUT NOT THE LEAST I WOULD LIKE TO EXPRESS MY SINCERE THANKS TO THOSE WHO DIRECTLY & INDIRECTLY HELPED IN THIS PROJECT. SUBMITTED BY, ...
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...REPORT ON THE FINANCIAL EVALUATION: MCDONALD'S CORPORATION AND YUM! BRANDS REPORT ON THE FINANCIAL EVALUATION: McDONALD'S CORPORATION AND YUM! BRANDS TAMARA AYRAPETOVA The aim of this paper is to perform financial analysis by using financial ratios and to comment, evaluate, and understand the origins of the results by using the comparison of two companies chosen as a case study. The McDonald's Corporation is the largest fast food restaurant in the world. McDonald's Corporation statistics base it in over 119 countries and it serves more than 68 million customers daily. The company's revenues are coming not only from its primary products like hamburgers, cheeseburgers, etc., but also from rent, royalties, and fees paid by the franchisees. This report will look at the financial statements of the McDonald's Corporation over the past 3 years starting from 2010 through 2012. The author of the paper will apply financial ratios to analyze company's position and to identify patterns and trends. She will then compare the results of the analysis with one of the biggest competitors of McDonald's - Yum! Brands Inc. and the industrial averages. Yum! Brands Inc. is a US based corporation. It includes famous brands like KFC and Pizza Hut in their chain. Currently Yum! Brands are the largest competitors McDonald's has in the fast-food industry. To compare the two companies financial statements will be taken from Yahoo Finance (2013). Unauthenticated Download Date | 12/14/14 11:28 PM ...
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