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Contents Page: Table of Contents Contents Page: 2 Introduction 3 Choosing an Organization 3 Brief introduction to McDonalds 4 Aims of the Report 4 SAFE Framework 5 Strategic option 1 6 Frozen Foods 6 Strategic Option 2 11 McDonalds in a Supermarket 11 Strategic Option 3 15 McCafe 15 Conclusion 19 References 20 Appendices 21 Introduction Choosing an Organization McDonalds was chosen to be the organization as a group decision. The reason being that it was an organization recognized all over the world, having a high profile and a strong iconic brand. Given the size of the organization, it was decided that there are a lot of strategic options available to McDonalds. Brief introduction to McDonalds McDonalds was first established in 1937 and run by two brothers Dick and Mac McDonald in California. They produced a limited menu, concentrating on just a few items – burgers, fries and beverages – which allowed them to focus on quality at every step. McDonalds has over 35,000 restaurants in the world, serving approximately 70 million customers in over 100 countries. Within the UK, there are approximately 1,200 restaurants, of which 600 are franchises. There are approximately 85,000 people employed by McDonalds UK and over 1 million worldwide. On average, McDonalds serves more then 3.8 million customers a day in the UK (Mcdonalds.com, 2014). Aims of the Report The business environment is constantly changing, this largely consequences in affecting small and large organizations. Organizations such as McDonalds need to develop and improve on new and existing strategies to enable them to expand into new markets and implementing strategies to help them grow further. This Report will explain and focus on 3 m... ... middle of paper ... ...Tutor2u.net Value chain analysis In-text: (Tutor2u.net, 2014) Bibliography: Tutor2u.net, (2014). Value chain analysis. [online] Available at: http://www.tutor2u.net/business/strategy/value_chain_analysis.htm [Accessed 29 Apr. 2014]. Yowazzup? Coffee McCafe Kota Damansara – First McCafe in Malaysia In-text: (Yowazzup? Coffee, 2014) Bibliography: Yowazzup? Coffee, (2014). McCafe Kota Damansara – First McCafe in Malaysia. [online] Available at: http://coffee.yowazzup.com/2012_06_16/mccafe-kota-damansara-first-mccafe-malaysia.html [Accessed 29 Apr. 2014]. Appendices SWOT Analysis of McDonalds – Appendix 1
• Analyzing the value chain of the McDonald’s Corporation to determine where they can create using resources, capabilities, and core competencies, which have been discussed above.
The first McDonald’s opened in 1948. The franchising operations soon became McDonald’s Corporation in 1955.
As a company, McDonald’s was first introduced in Des Plaines, Illinois in 1955. This was the very first McDonald’s restaurant, which all started in San Bernardino, California in 1954 when Ray Kroc approached the McDonald brothers with a business proposition to start a new company. In 1965 McDonald’s went public and was later, in 1985 added to the Dow Jones Industrial Average. (www.mcdonalds.com) The company has gone through quite a few changes with its changing CEO’s over the years, but the company seems to be on track with CEO Jim Skinner, named in 2004. Skinner was named the new CEO just in time to clean up after McDonald’s first ever quarterly loss. He succeeded by showing that McDonald’s revenue had climbed 11% during 2006 and net profits had climbed 36%. (Dess, Case 40 Pg. 1)
McDonalds are most heavily located in North America, East Asia and Europe due to the fact that these continents have better economies; therefore they can afford the popular food chain restaurant. On the other hand, Africa and Central Asia do not have nearly as many McDonalds because their economies are weaker than North America, East Asia and Europe. Russia, being the largest country in the world in terms of landmass, only has 94 McDonalds’ while Brazil, which is not nearly the size of Russia, has 584 McDonalds’.
In order to understand McDonald's structure and culture and why they continue to be the world's largest restaurant chain we conducted a SWOT analysis that allowed us to consider every dimension involved in the business level and corporate level strategies.
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
Their constant changes are more directed at customer satisfaction than keeping in line with their competitors. New market entrants, although small and initially insignificant, are exerting the most force over McDonalds Canada. They are able to cater to individuals a lot easier than a multinational company is and it should be these that McDonalds model any future changes on. As mentioned above, the introduction of organic products and the presentation of ‘greener’ images are essential for McDonalds to compete in a changing consumer environment.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
The contemporary business environment is dynamic, ever-changing and increasingly competitive. Their is potential for success, but even more for failure. Businesses are heavily influenced by the changing organisational environment and this intern creates much uncertainty for managers and organisations. With increasing uncertainty in the external environment, the more important it is that managers engage in continual planning. (Robbins 2012 p. 32) Businesses must be flexible and evolve in accordance with their external environment.
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc. He saw how much potential the restaurant has, so he bought it out and opened one of the first franchises. Within the first year of Ray Kroc buying it, there were one hundred and two locations all around the world. McDonalds currently is one of the largest fast food restaurants in the world and currently has served over sixty four million customers through one of their thirty two thousand sites. It has almost become a way of life for America. Though, McDonalds started off as a small business between two brothers, it grew into one of the largest restaurant franchises in the world and greatly affects our society and how we eat our food.
Starbucks was doing well at the Australian market for the few intorduction year, as it provide a unique original service, in which other coffee shop at that time did not provide. It was until 2003, the year in which McCafe was introduced. McCafe provided services and coffee similar to Starbucks, but in far cheaper price. The demand for Starbucks decreases significantly, and as for McCafe the demand was booming.
Mc Donald’s is world’s famous fast food restaurant chain consisting of 34000 local restaurants. It is present in 119 countries serving 47 million customers on daily basis. It is globally recognized by the Golden arches as its logo. In 1954, Mc Donald’s founder Raymond Kroc passed by a hamburger stand in San Bernardino, California and then he came up with an idea of forming a countrywide fast food chain.
In the nutshell, changes in business environment are unforeseeable. It is common that sometimes company’s activity shall change to continues sustainable in the open market. Some company may threat of downsizing, bankruptcy or changing business model due to unfavorably change of business environment. Thus, it is important to manage change of business environment, which involved internal and external forces of change that contribute to incremental changes and transformation quantum changes in the organisation.
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.