麦当劳案例分析英文版

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M c D o n a l d's C o r p o r a t i o n C o m p a n y

Table of Contents

Executive Summary

Introduction Industry Analysis

Competitor Analysis

SWOT Analysis

Future and Recommendation

Executive Summary

McDonald's restaurant is a large chain fast food group and it has approximately thirty thousand shops in the world, the main selling is hamburgers, French fries, Fried chicken, soda, ice product, salad, fruit. After the financial crisis, most companies are experiencing a situation of fund shortage, how to get more profit has become the problem which the fast food industry must be facing with. Of course, the advantage of efficiency and convenience will be the important Opportunity to help the fast food industry to solve the problem. Now, McDonald's management is very good, but it still needs to improve in some places.

Introduction

McDonald's restaurant is a large chain fast food group and it has approximately thirty thousand shops in the world, the main selling is hamburgers, French fries, Fried chicken, soda, ice product, salad, fruit. McDonald's restaurants spread all over the world six continents in over countries. In many countries McDonald's represents of a kind

of American way of life.

In 2001, the net income of McDonald shrunk 17 percent to $ billion. Though McDonald’s . market share remained above that of competitors,

it grew more slowly. Because of the “Big Mac Attack”, McDonald accelerated plans for “New Tastes Menu” items. What’s more, McDonald’s opened McCafe in order to double sales at existing . restaurants over the next decade. The gourmet coffee concept was

created to be placed within or adjacent to existing McDonald’s restaurants. McDonald’s estimates that the new concept will boost

sales by 15 percent.

McDonald invested heavily in advertising its product and improving its public image. The advertising message of McDonald focused on tasty and nutritious food, friendly folks, and fun.

Industry Analysis

Nowadays, customers are tastes changing in the fast-food industry. Customers are eating out less often compared to previous years and eating habits are changing. Many younger customers are getting tired

of fast food and are thinking about their health. A growing trend is

the move by customers to non-hamburger sandwiches.

In allusion to these changes, McDonald’s face to profit drains

and earnings declines, so they must innovate and keep their quality in the market and special promotional strategies. McDonald’s continue discounting and offering a variety of new products to attract

customers, they also seek to shed their “cheap and greasy” image

with new shore design. They are trying to increase the speed of drive-though delivery. McDonald’s trend is the recognition of the importance of heavy users of fast-food restaurants. Because customers do not want to sacrifice the convenience of fast food industry, they pay attention to meals that more upscale than traditional fast food, served in nicer restaurants with more comfortable surroundings, but faster than in traditional restaurants.

Competitor Analysis

1. Major competitors in the hamburger segment

McDonald’s has three major competitors in the hamburger segment. These include Burger King, Hardee’s and Wendy’s. Both Burger King and Wendy’s have had small gains in market share while Hardee’s lost share.

●Burger King Corp.

The menu overhaul is one part of a major turnaround strategy engineered by Burger King’s chairman and chief executive, John Dasburg, who joined the chain in 2000. Its ongoing effort to increase sales and market share, offered a new salad line and a permanent array of value-priced offerings, endeavors already under way at its fast-

food competitors.

●Hardee’s

The chain posted year-to-year quarterly declines of percent in company-owned same-store sales. The effort to reverse slowing but continuing sales erosion at Hardee’s, the industry’s burger chain, had dominated management’s attention in its conversion of Hardee’s to a format called “Star Hardee’s.”The company attempted to reverse sliding sales by introducing new items on the menu and joining

the price-promotion burger wars. The company tested individual item discounts at most of Hardee’s company-owned units.

●Wendy’s international

Wendy’s has had the strongest same-sales gains of the major

burger chains in recent years. Chain officials and Wall Street

analysts attributed at least part of the growth to Wendy’s line of four upscale salads called “Garden Sensations.” The nation’s

burger chain holds an enviable position—analysts consistently rank it ahead of chief rival in quality, customer satisfaction, innovation, and unit-level sales. Wendy’s product line includes four core menu items: burger, chicken sandwiches, its value menu, and its Garden Sensations salads. The salad line is designed to provide custom taste comparable to salads offered by casual-dining chains

2. Major competitors in the non-hamburger segment

●Pizza Hut, “pizza and more “

Pizza Hut is one of the biggest and best-known pizza restaurants

in the world after fifty years of development. One of their main strategies that they still follow today is the diversification of the products they offer. Pizza Hut is always adding something new to their menu, trying to reach new markets. They were trying to offer many different food items for customers who didn't necessarily want pizza. Another opportunity that Pizza Hut has is their new ordering online system. Anyone with Internet access can order whatever they wish and get it delivered to their house without even speaking to someone. Lastly, Pizza Hut has always valued customer service and satisfaction. In 1995, Pizza Hut began two customer satisfaction programs: a 1-800 number customer hotline, and a customer call-back program. These were

implemented to make sure their customers were happy, and always wanted to return.

●KFC

KFC, also known as Kentucky Fried Chicken, is a chain of fast food restaurants based in Louisville, Kentucky. KFC is currently one of the largest businesses of the global food service industry and is widely known around the world as the face of Colonel Sanders. The Colonel has spread his industry currently to more than eighty countries globally. Every day, nearly eight million customers are served around the world. KFC's menu includes Original Recipe chicken -- made with the same great taste Colonel Harland Sanders created more than a half-century ago. KFC primarily sells chicken in form of pieces, wraps, salads and sandwiches. While its primary focus is fried chicken, KFC also offers a line of roasted chicken products, side dishes and desserts. Outside North America, KFC offers beef based products such as hamburgers or kebabs, pork based products such as ribs and other regional fare.

●Taco bell

Taco Bell is the Mexican fast-food chain in the , with more than 5,600 locations, and it serves more than million consumers each

week .In China, only Shanghai and Shenzhen have such kind of restaurant. It has some unique food that other fast food restaurants don’t have. Thin flat bread filled with meat, cheese, particular raw vegetables and hot spicy sauce. A type of Mexican food made by folding a thin round piece of bread and putting meat, beans and cheese inside it. Small pieces of thin dry bread made from corn flour and eaten with melted cheese and a spicy sauce that usually contains beans.Because of its unique, the price of its food is usually high.

SWOT Analysis McDonald's

Strengths

They successfully and easily adapt their global restaurants to appeal to the cultural differences. For example, they serve lamb burgers in India and in the Middle East, they provide separate entrances for families and single women.

They have an efficient, assembly line style of food preparation. In addition they have a systemization and duplication of all their food prep processes in every restaurant.

McDonald's takes food safety very seriously. More than 2000 inspections checks are performed at every stage of the food process. McDonalds are required to run through 72 safety protocols every day to ensure the food is maintained in a clean contaminate free environment. McDonald's was the first restaurant of its type to provide consumers with nutrition information. Nutrition information is printed on all packaging and more recently added to the McDonald's Internet site. McDonalds offers salads, fruit, roasted chicken, bottled water and other low fat and calorie conscious alternatives.

Weaknesses

Their test marketing for pizza failed to yield a substantial product. Leaving them much less able to compete with fast food pizza chains. High employee turnover in their restaurants leads to more money being spent on training.

They have yet to capitalize on the trend towards organic foods. McDonald's have problems with fluctuations in operating and net

profits which ultimately impact investor relations. Operating profit was $3,984 million (2005) $4,433 million (2006) and $3,879 million

(2007). Net profits were $2,602 million (2005), $3,544 million (2006) and $2,395 million (2007).

Opportunities

They have industrial, Formica restaurant settings; they could provide more upscale restaurant settings, like the one they have in New York City on Broadway, to appeal to a more upscale target market.

Provide optional allergen free food items, such as gluten free and peanut free.

In 2008 the business directed efforts at the breakfast, chicken, beverage and convenience categories. For example, hot specialist coffees not only secure sales, but also mean that restaurants get increasing numbers of customer visits. In 2009 McDonald's saw the full benefits of a venture into beverages.

Threats

They have been sued multiple times for having "unhealthy" food, allegedly with addictive additives, contributing to the obesity epidemic in America. In 2004, Michael Spulock filmed the documentary Super Size Me, where he went on an all McDonalds’ diet fo r 30 days and wound up getting cirrhosis of the liver. This documentary was a direct attack on the QSR industry as a whole and blamed them for America's obesity epidemic. Due in part to the documentary, McDonalds no longer pushes the super size option at the dive thru window.

Any contamination of the food supply, especially e-coli.

Major competitors, like Pizza Hut, Taco Bell, Wendy's, KFC and any

mid-range sit-down restaurants.

Future and Recommendation

After our group’s analysis, it is necessary for McDonald’s to use the Porter's five forces model in the production and operation to win the other competitors and get good development in the future. McDonald's know the strengths of competitors in the burger segment. McDonald's should analyses this point about their own enterprises, and make adjustments and improvements in the future. First, we should improve the process of making Hamburg, and improve the output efficiency of hamburgers. Second, at the same time, McDonald’s must also require food nutrition combination, only healthy food can attract customer. Finally, if the above two do it, we will be in the price improvement. Based on cost leadership strategy, we should reduce the cost of production, under the premise of ensuring the quality of products and services, to gain the largest market share in the competitive strategy.