McDonald's

FAST FOOD INDUSTRY

 INDUSTRY ANALYSIS

 The Global Fast Food Restaurants industry has managed to grow over the
past five years despite being battered by a weakened global economy and
society's increasing awareness of the health risks associated with a diet
high in fat, salt and sugar.

 The industry experienced steady and growing demand from emerging

economies
 The industry's attempts to respond to changes in
consumer preferences have also supported revenue
growth.
 Contd..

 Over the five years to 2013, revenue is expected to grow at an

average rate of 2.5% per year.

 Industry revenue declined 2.6% in 2009, but bounced back

4.4% in 2010 and continued growing through 2011 and 2012.

 In 2013, revenue is expected to grow an

additional 3.6% to total $526.2 billion.
INDUSTRY SHARE
GROWING FIRMS
COMPANY PROFILE
 FOUNDED & FOUNDER

 May 15, 1940 in San Bernardino, California McDonald's

Corporation, April 15, 1955 in Des Plaines, Illinois.
 Richard and Maurice McDonald, McDonald's restaurant
concept
 Ray Kroc, McDonald's Corporation founder.
BASIC INFORMATION

Number of locations 34,000+ worldwide

Revenue US$ 27.56 billion (2012)
Operating income US$ 8.60 billion (2012)
Net income US$ 5.46 billion (2012)
Total assets US$ 35.39 billion (2012
Total equity US$ 15.29 billion (2012)
Employees 1,800,000 (2013)
OBJECTIVE & METHODOLOGY USED

OBJECTIVE : To do a GAP analysis of McDonald’s.

METHODOLOGY : We took the responses from 50 customer

and 4 store supervisor employees also personally visited the
restaurant and took the “Restaurant Tour” and tried to
understand the mantra for their quality control and fast service
abilities.
FOR CUSTOMERS
No of male and Female

[PERCENTAGE]
MALE
52%

FEMALE
AGE GROUP OF RESPONDENTS

2%
10 to 20 8%

21-30
18%
31-40

Above 40 72%
DOES MCDONALD’S COLLECT INFORMATION
ABOUT YOUR TASTES AND PREFERENCES ?

35%
YES
65%
NO
 How often does McDonald’s informs you about its
new product & services through mail and other
sources ?

17%
WEEKLY 30%
MONTHLY

NEVER

53%
How much are you satisfied with the counter ordering &
delivery system in McDonald’s on scale of 1 to 10 ?

16

14 14
12

10

8 8 8
6 6
4
3
2
1
0 0 0 0 0
1 2 3 4 5 6 7 8 9 10
ARE YOU SATISFIED WITH THE NEW PRODUCTS AND
INFORMATION AVAILABLE ABOUT PRODUCTS.

4%

EXCELENT

GOOD
49%
SATISFACTORY
47%
HOW WELL IS MCDONALD’S STORE LAYOUT DESIGNED
AND OTHER EQUIPMENT'S PLACED ?

13%
26%
EXCELENT

GOOD

SATISFACTORY
61%
How is the service delivery in terms of
consistency
7%

EXCELENT 28%

GOOD

SATISFACTORY

65%
HOW MCDONALD’S EMPLOYEES GREETS YOU
DURING THE TIME OF SERVICE DELIVERY?

2%
8%

WITH SMILE

WITH HAND
SHAKE
90%
WITH AN CLUMSY
LOOK
How Do You Rate Service Delivery During Peak
Hours On Scale Of 1 To 10?

12

10
10
9 9
8 8
8

6
6

2
2

0 0 0
0
1 2 3 4 5 6 7 8 9 10
How effective is the promotional ads of McDonald’s in
conveying information about its products?

INFORMATIVE
47%

NEEDS 53%
IMPROVEMENT
How do you feel regarding prices of McDonald's
products?

0%

15%
HIGH PRICED

MEDIUM

LOW

85%
Do You Think You Are Delivered A Quality
Product For The Prices Charged?

TO GREATER
EXTENT
25%

TO SMALL
EXTENT
75%
 Does McDonald’s provides what was promised
to you ?

8%

yes

no

92%
Gap Analysis Within
The Organisation
How Often Do Employees And Managers Interact
And Have Meetings Regarding Customer
Expectations

0%

Monthly

Quarterly 50% 50%

Weekly
Service Delivery Employees Or Contact Employees
Are They Given Preference To Share Their Views ?

Yes
25%

No
75%
How well does company plan to recover from
service failures?

Nice, When we call

Interacting with customers
Interact customer and take their feedback
Are Employees Given Training And Information On
New Products?

0%

Yes No

100%
How effectively does the company
recruit, hire, train, compensate, and empower
employees on scale of 1 to 10 ?

10
9
8
7
6
5
9
4 8
3 6 6
2
1
0
1 2 3 4
Do customers fulfill their roles ?

No, not at all

25%
Yes to an extent Yes to an extent
50%
To lesser extent
To lesser extent 25%

No, not at all

Does the company avoid overpromising and
overselling?

0%

Yes We Do

100%
No We Dont
Does the company price in line with customer
perceptions of value?

0%

Yes
100%
No
 FINDINGS

 During the survey it was found that most of the customers where of aged
between 15 to 30 & the sex ratio was relatively equal.

 Mc Donald's was focused and interested in collecting information from

both customers and their employees.

 Mc Donald's informed most of its customer on regular basis about its new
products and large group of customers where also happy with new
products offerings.

 Large group of sample customers where happy with the Mc Donald's store
layout and its maintenance.
 Contd..

 Customers where happy with Mc Donald's service delivery during normal

time but during peak hours service delivery consistency reduced.

 The surprising factors which came out during survey was customers were
not happy with Mc Donald's promotional tools as they were less
informative but the good sign was the large group of customers were happy
with what was promised and delivered to them in ads.

 Most of the customers said that the pricing was in medium range and 50%
of customers felt they weren’t delivered a quality products for prices
charged.
 FINDINGS

 Employees and top management interacted monthly and weekly based on

requirement and lower level employees not involved in meetings.

 Mc Donald's store supervisors said the recruitment process were

effectively conducted and employees were also given training.

 Employees responded that most of the customers do fulfill their roles to

an extent.

 Employees also responded that they wont do over promising and over
selling and they also price with customers perception in line
 Suggestions

 Mc Donald's should focus on informing customers about new products

through mails and other sources and also provide information products in
details.

 Mc Donald's should focus on service delivery during the peak hours

especially with more counters and also focus on maintaining their six sigma
status delivering to avoid mis match.

 Mc Donald's should focus on using effective promotional ads and informative

ads. They can go with product catalouges, & handbills, Mobile apps, faster
home delivery .

 Company should focus on pricing issues with certain products, also increase
 Contd..

 Mc Donald's should focus on maintaining their combo product strategies

like
 Aap ke Jamane Main Baap ke Jamane ke Daam…..!!!”
 “Happy Meal” ,“Kite Meal”, “Shrek Meal”

 Company should involve service delivery employees in team meetings and

collect their reviews since they have direct contact with customers.

 Company should focus reducing channel conflicts in communicating in order

to avoid conflicts.

 Company should focus on treating employees as an asset to organization to

reduce attrition rate.
SHASHI KUMAR M . R
MBA
NEW HORIZON COLLEGE OF MANAGEMENT STUDIES