...Operational Differences Between McDonald’s & Burger King McDonalds (McD’s) and Burger King (BK) are key players in the fast food industry and have been competing for many years. They both provide similar food that is prepared quickly for a low price. So what sets them apart? The difference between McD’s and BK is their corporate culture – operational management. The manufacturing method at McD’s follows the “Doing It All For You” versus “Having It Your Way” at BK. The “Made to Stock” strategy at McDonald’s depends on an inventory of products, with great emphasis on the standard sized patties, which are made prior to processing a customer order. This means that when a sale is made and food delivered to the customer, the products in the order come from “the bin” – finished goods inventory. Please refer to Exhibit 1 for the process flow diagram of McD’s. The Burger King “Made to Order” strategy entails an assembly to order method with multiple product options tailored to the customer preference. At BK the “steam table” is used to assemble each order at the time the order has been placed. The “Made to Order” method relies on semi-finished inventory this is due to the fact that the whoppers and burgers are different sizes and therefore require pre-assembly of buns and patties. Once assembled, the burgers and sandwiches sit in the steam table for up to 10 minutes which are discarded if not sold within that time. While this step in the BK process can lead to waste of goods...
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...Financial Management Group Assignment Team 9 - Bayswater Andrés Lema Eric Shoubridge Farhana Aslam Felipe Hessel Rosa Montes Todd Hanlon 5th December 2012 1: The Financial, Business and Economic Environment for McDonald’s Introduction: The Fast Food Industry and McDonald’s The modern system of fast food franchising is believed to have started in the mid 1930’s when Howard Johnson franchised his second location to a friend as a means to expand operations during the Great Depression. In addition, the drive-thru concept brought explosive growth through delivering food-on-the go. “Fast Food” was added to the Merriam-Webster dictionary in 1951, and U.S. fast food companies are now franchised in over 100 countries. In the U.S. alone there are over 200,000 restaurant locations. Revenue has grown from $6 billion in 1970 to $160 billion in 2011, an 8.6% annualized rate (Sena, 2012). Fast food franchises focus on delivering high volume, low cost, and high speed products. Frequently, food is preheated or precooked and served to-go, though many locations also offer seating for onsite consumption. With all stands, kiosks, or sit-down locations, food is standardized and shipped from central distribution points. Consumers enjoy being able to get a familiar meal in each location, and menus and marketing are the same across all stores (Sena, 2012). McDonald’s (MCD) was founded in California in 1940 under the name “McDonald’s Bar-B-Q”. The original founders, Dick and Mac McDonald...
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...McDonald’s Corporation April Hahnfeld Analyst July 18, 2010 HOLD • Threat of Competition: High • Threat of New Entrants: High • Threat of Substitution: Low-Moderate • Power of Suppliers: Low • Power of Buyers: Low • Best profit margin in the industry • Moderate Leverage • Good dividend yield and earnings growth • Attractive per-share earnings growth due to large share repurchases • Significant internal exposure and shareholder focus • Commodity cost risks • Extremely competitive industry • High food, energy, and labor cost concerns • Product failures McDonald’s Corporation’s principal activity is to franchise and operate McDonald’s restaurants in the food service industry. These restaurants serve a varied, yet limited, value-priced menu in more than 100 countries worldwide. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign-affiliated markets and developmental licensees under license agreements. Independently-owned and operated distribution centers, approved by the Company, distribute products and supplies to most McDonald’s restaurants. In addition, restaurant personnel are trained in the storage, handling and preparation of products and in the delivery of customer service. In February 2009, the Group sold its interest in Redbox Automated Retail, LLC.1 1 Thomson One Ticker MCD Exchange NYSE Industry Retailing - Foods Sector Consumer Services Classification ...
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...McDonald’s Corporation April Hahnfeld Analyst July 18, 2010 Recommendation: HOLD Porter’s 5 Forces: • • • • • • • • • • • • • • Threat of Competition: High Threat of New Entrants: High Threat of Substitution: Low-Moderate Power of Suppliers: Low Power of Buyers: Low Pros: Ticker Exchange Industry Sector Classification Market Cap. 52 Week Price range Recent Price Current P/E Projected 2012 P/E 2009 EPS Projected 2012 EPS Dividend Yield Debt Rating Beta MCD NYSE Retailing - Foods Consumer Services Income & Capital Appreciation $71,153 M $53.88 - $71.84 $69.22 (7/9/2010) 15.59 14.27 $3.98 $ 3.33% AA0.61 Best profit margin in the industry Moderate Leverage Good dividend yield and earnings growth Attractive per-share earnings growth due to large share repurchases Significant internal exposure and shareholder focus Cons: Commodity cost risks Extremely competitive industry High food, energy, and labor cost concerns Product failures Brief Overview McDonald’s Corporation’s principal activity is to franchise and operate McDonald’s restaurants in the food service industry. These restaurants serve a varied, yet limited, valuepriced menu in more than 100 countries worldwide. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchise arrangements, and foreign-affiliated markets and developmental licensees under license agreements. Independently-owned and operated distribution centers, approved by the Company...
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...1. Ghan Shyam Rathi. (2013, October 10th,). The Global Business Strategy of McDonald and how it reached All the Corners of The World at Lesser Cost. Retrieved from https://www.academia.edu/6465022/Global_Strategy_of_McDonald_and_How_It_Reached_All_corners_of_World 2. Ashley Lutz. (2014, October 24th). McDonald’s Is Making 4 Changes To Get You To Eat There Again. Retrieved from http://www.businessinsider.com/mcdonalds-us-strategy-for-2015-2014-10 3. Ovidijuis Jurevicius (2013, February 16th). SWOT analysis of McDonalds. Retrieved from http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.html 4. Harsh Narula. ( 2014, July 29th). McDonald’s Supply Chain. Retrieved from http://www.slideshare.net/harshnarula/mcdonalds-supply-chain-37455744 5. Dan Moskowitz (2014, March 22rd). The Motley Fool: McDonald's new menu item hints at new strategy Retrieved from http://www.usatoday.com/story/money/business/2014/03/21/mcdonalds-new-menu-item/6705499/ 6. Keith Nunes (2014, October 22nd). McDonald’s to focus on local, customization in 2015. Retrieved from http://www.foodbusinessnews.net/articles/news_home/Business_News 7. Adam Jones (2014, June 18th). Must-know: A company overview of McDonald’s. Retrieved from http://marketrealist.com/2014/07/must-know-company-overview-mcdonalds/ 8. Don’t just talk; register. (n.d). A McDonald’s Restaurants case study. Retrieved from http://businesscasestudies.co.uk/mcdonalds-restaurants/the-marketing-process/introduction...
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...ORGANIZATIONAL BEHAVIOR Dr. Supra Wimbarti, M.Sc. Case 1 McDonald’s Corporation ADITYA DERILYAWAN –10/323133/PEK/15683 FITRI DWI ASTUTI – 10/314156/PEK/15695 PRISCA OCTAVIA INDRAWATI- 10/314167/PEK/15706 YANUAR HERU PRAKOSA – 10/324176/PEK/15717 MASTER OF MANAGEMENT UNIVERSITAS GADJAHMADA 2011 Introduction : McDonalds is the world’s largest restaurant chain. Its innovative marketing, superior products impeccable operations, and devoted franchisees have set the standard for the fast food industry. The company philosophy of Q,S,C,&V (quality, food; fast, friendly services, restaurant cleanliness, and a menu that provides value0 and its family oriented image are the product of Ray Kroc. In addition, it is one of the world’s most recognized brand names, along with coca-cola, Kodak, Gillette, Sony, and Walt Disney Operations in over 20 countries highlight the truly global nature of McDonalds in the new millennium. The first McDonalds was a drive-in restaurant started in san Bernardino, California by two brothers, Dick and Mac McDonald, in 1948. Ray Kroc, the man who made McDonald brothers solh the company to Ray Kroc in 1961 for $2.7 million. In 1999 alone McDonalds generated more than $13.2 billion in total revenues. The company menu, which originally consisted only of hamburgers, cheeseburgers, French fries, sodas, milkshakes, milk and coffee, has grown considerably since. A more technical definition of McDonalds is an organization that develope, operates...
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...7/24/13 Marketing food: I'm loving McD's | warc.com About us▼ Help▼ Store▼ | Free Trial Log In Search ALL OF WARC Advanced Search Title: Authors: Source: Indexed in: Marketing food: I'm loving McD's Tom Roach Admap: November 2012 MORE ARTICLES ABOUT Brand and product choice Brand strategy Brand and product choice Brand strategy Show all Fast food, takeaway outlets Summary This article looks at McDonald's recovery from a period of falling sales, with lessons for the rest of the fast-food sector. The Quick Service Restaurants sector has been steadily growing over the past few years, boosted by the smaller sub-sector of 'fast casual dining', while non-branded, independent restaurants are suffering. Reasons for this shift are that consumers need to trust the food offered, that they love brands and are looking for family appeal. McDonald's communications has been built on four marketing pillars: value, variety, favourites and trust, leading the way back to strong growth. Restaurants and takeaways Food, diet and obesity Marketing food: I'm loving McD's Tom Roach Leo Burnett If you enjoy this article from Admap, find out more about subscribing to Admap and Warc. This article may be shared or reproduced online, provided the contents are not altered and the source is acknowledged as: Reproduced from Admap with permission. © Copyright Warc. www.warc.com/admap Six years ago, the McDonald's brand was severely damaged by media castigation of the products'...
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...ANALYSIS6 MCD got off to a strong start in 2010 with a solid recovery in U.S. comparable sales growth, sustained momentum in international sales growth, and impressive operating margin gains in its first quarter. Analyst remain confident that MCD’s competitive advantages, including a universally known brand and unparalleled scale advantages, position the firm to thrive under any economic environment. After posting flattish U.S. comparable sales in January and February, MCD came back strong in March with 4.2% growth, thanks to a general increase in consumer optimism as well as menu innovations such as frappes, value-priced beverages, and the breakfast dollar menu. Analysts continue to anticipate low- to mid-single-digit comparable sales growth in the U.S. during 2010. There were also several reasons for optimism in Europe, as MCD continued to outperform other quick-service restaurant chains across the Continent, including key markets such as France, Russia, and the United Kingdom. Asia/Pacific, Middle East, and Africa results were also encouraging, including further improvement in China comparable sales trends. There is no change to analysts’ full-year expectations of mid-single-digit comparable sales growth in MCD’s international segments. The 220-basis-point increase in consolidated operating margins to 29.8% was the highlight of the quarter, very likely due to favorable food and paper commodity prices. Although commodity prices are expected to rise during the second half...
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...McDonald’s 12 MIT Porter 5 forces and value chain analysis hamza akaouch ID: L0014MIMI1012 Class: BABS1 Contents 1-executive summary 2-introduction 3-Porter’s 5 forces 3-1 The competition threat 3-2 New entrance threat 3-3 Substitutes threat 3-4 Threat of suppliers 3-5 Threat of buyers 3-6 How can IT help to minimise theses threats ? 4-VALUE CHAIN : 4-1 Firm infrastructure 4-2 Inbound 4-3 OPERATIONS 4-4 Outbound 4-5 Human resources 4-6 Marketing &sales 5-Conclusion: 6- References 1-Executive summary : “information is power and it is for sale now “ Nowadays with the global economy and enterprises shift and emergence of the digital organizations makes a necessity in business today especially in the decision making process, it is important many reasons such as operational excellence ,the customer intimacy new products and business models : information system is very useful to enhance the way the company produces , delivers and sells to create wealth. Improved decision making , the competitive advantage or even the concern of survival. We will see below how does IT help McDonalds to minimise the threats based on the porter 5 forces and how does it enhance their value chain 2-Introduction: McDonald’s corporation is global company of fast food restaurants spread in 119 countries and serving around 68 million of customers every day via 32000 places . founded...
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...Financial Analysis of McDonald’s Corporation (MCD)-NYSE 2111 McDonald’s Drive Oak Brook, Illinois 60523 1-800-244-6227 Business 5200 Finance for Managers PART 1, COMPANY OVERVIEW: a. Brief description of the company: McDonald’s is the leading global foodservice retailer with more than 34,000 local restaurants serving approximately 69 million people in 118 countries each day. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local men and women. b. Company History: Dick and Mac McDonald opened their eponymous burger stand in 1948 in San Bernardino, California. Under the guidance of Ray Kroc, a onetime milkshake-mixer salesman wowed by the restaurant's success, McDonald's franchises grew swiftly: by the end of the 1960s, there were more than 1,000 across the U.S. The first international franchise opened in 1967 in British Columbia, and was followed by another in Costa Rica later that year. From there, the chain spread steadily: over a six-month period in 1971, Golden Arches popped up on three new continents, as stores launched in Japan, Holland and a suburb of Sydney. A Brazilian McDonald's opened in 1979, bringing Ronald McDonald to South America for the first time. McDonald's reached its sixth (and, barring a sub-Arctic drive-thru, final) continent in 1992, with the opening of a restaurant in Casablanca, Morocco. Four years later, the company heralded the expansion into its 100th nation...
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...Inventory Proposal Part Two of Three Team A QRB 501 March 07, 2012 Terrance Feravich The research discussion is toward the data collection, which converts times series data for McDonald’s Fast Food Restaurant inventory analysis and University of Phoenix summer seasonal index. The raw data represents inventory data over a four year time. In this assignment the B team will illustrate statistical information, discuss the inventory systems and problems, explain the problem this team is addressing, and show a table on how the data has been converted into dices. Below are the inventory indexes from the previous assignment in week two. McDonald’s Inventory Analysis by Ratio Index |Year |2000 |2001 |2002 |2003 | |Liquidity Analysis | | | | | |Current Ratio |0.70 |0.81 |0.71 |0.76 | |Quick asset ratio |0.66 |0.76 |0.66 |0.71 | |Accounts receivable turnover |17.88 |16.86 |18.01 |23.34 | |Days supply of receivables |20.41 ...
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...1) Business Summary With one of the world's most widely known brand names, McDonald's operates and franchises about 32,500 restaurants that offer various food items, soft drinks, coffee, and other beverages around the world. Systemwide sales totaled $76.7 billion in 2010, up from $72.4 billion in 2009 and $70.7 billion in 2008. In the U.S., the McDonald's chain leads the $160 billion quick-service restaurant industry. With U.S. systemwide sales of $31 billion, its domestic business is several times larger than its closest competitors, Burger King and Wendy's Old Fashioned Hamburgers. MCD's international segment has supplied much of its earnings growth over the past two decades, and, in 2010, contributed 54% of operating income (before corporate expenses and one-time charges). All restaurants are operated by MCD, franchisees, or affiliates under joint venture agreements. In August 2007, the company completed the sale of its existing businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and 13 other countries in Latin America and the Caribbean to a developmental licensee (the Latam transaction). The company recorded impairment charges totaling approximately $1.7 billion, substantially all of which was non-cash. The charges included approximately $892 million for the difference between the net book value of the Latam business and the approximately $680 million in cash proceeds, and $773 million in foreign currency translation losses previously included...
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...Running head: LEARNING STYLES AND GLOBAL LEADERSHIP Learning Styles and Global Leadership Theory: Individual Learning Paper Mohak Mehdiratta Global MBA This paper was prepared for leadership theory taught by Professor Tony Lingham ABSTRACT This paper examines the kolb's Learning styles and also talks about the Individual Learning needs. Rather than going into definitions the paper contains examples and situations so that the reader has a broader understanding of the terms and is able to formulate the definition on its own. The skills I would like to develop to be more effective as a team leader/member has been mentioned as well.The paper also has my Learning needs Profile as well as my innovative and execution capacity profile. Since the world is shrinking into a Global village so the paper tries to give the reader an overview of Global Leadership and the essential qualities required to be one and the skills I would like to develop. LEARNING STYLES Learning style is a person's way of acquiring knowledge and transforming that knowledge in learning situations. The idea of individualized learning styles originated in the 1970s but it was in 1984 that David Kolb published his learning styles model popularly known as Kolb's experiential learning theory (ELT), and Kolb's learning styles inventory (LSI).Learning, he suggests, is essentially a process that involves looping around the 4-stage cycle he developed. 1.Concrete Experience - (CE) 2.Reflective Observation -...
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...Biz Law Assignment: A) Mcdonald’s 1) - Civil law – mcd staff should hazard sign to warn passer-by about the spill. - Tort law – a spill at the front of Mcd’s cause the cleaner to fall and suffer injury. - Contract law – the building has a system that whenever there is a spill, the cleaner should stop and mop the mess. Breach the law because she is not aware and cause the incident to happen herself. 2) = Organise and plan with reasonable certainty all the contract. - The building has an appropriate system in place to deal with the spill such as stop, putting a hazardous sign to warn customers first as well as to clean up the mess. = Lay down the rights, duties and powers of members of different classes and groups = The law defines the right and duties of an employee: rights (work in a safe work environment); duties (to come to work, do your job, act in the best interests of your employer) o The law defines the right and duties of an employer: rights (for your employees to come to work, do their job, act in your best interest); duties (pay employees for their, provide a safe work environment) - The building has an appropriate system in place to deal with the spill such as stop, putting a hazardous sign to warn customers first as well as to clean up the mess. =Permit, encourage, forbid or discourage particular activities. * Encouraged to put up a hazard sign on spilt area. * Encouraged to wear safety shoes during working hours to prevent...
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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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