McDonald’s

Outline:
 Introduction
 Opportunities and Threats McDonalds faced. Their
solutions and alternatives it could choose.
 McDonalds Success in Europe. Strategies it followed.
Difference from strategies followed in Asia.
 MacDonald’s basic philosophy. Enforcement of its
philosophy in different environments.
 Should McDonald’s expand its menu? If you say no, then
why not? If you say yes, what kinds of products should it
add?
 MacDonald’s Success in many countries of the world.
INTRODUCTION TO
MAC DONALD’S
Mac and Dick opened their first restaurant in
1940 at California in U.S. They invented a new
concept of serving people with low price, speedy
service ,big volumes and good quality food .This
was the key of their success. There service was
like GRAB AND GO. Mac Donald’s opened
more then 300 branches all over the states since
1952.
In 1954 RAY KROC met MC DONALD
brothers. He was distributor of milkshake maker.
Ray Kroc opened his first McDonalds restaurant
in 1955.He had bought the corporation from
Dick and Mac.
Opportunities and Threats McDonalds faced. Their
solutions and alternatives it could choose.
OPPORTUNITIES :
 Lack of organized food retail chain or branded food items
 Vast market availability
 New food items
 Low competition

THREATS:
 Franchisee
 Consciousness among people about their health
 Follow the local laws
 People dining behavior
 Threats of Substitutes
 Threats of New Entrants
How McDonalds handled the opportunities and threats:
McDonald’s success was largely dependent on its strategy to handle the opportunities and
threats. The time when McDonald’s came , there were many opportunities and threats present
in the market and McDonald’s correctly matched its strengths with opportunities and worked
on its weaknesses to eliminate the threats.

How McDonald’s cashed the opportunities:-

 created the retail chain and brand for its product
 rightly analyzed food market
 introduced the new products in market from time to time and charged reasonable prices
 Hamburger university

How McDonald’s handled its threat:-

 By presenting´ QSCV´
 reasonable price helped in grasping the market share.
 distribution system was very strong.
 Caring for cultural sentiments of the people
Alternatives available for McDonald’s: -
 Should have targeted aged people as well
 Should have extended its menu
 Should have concentrated on its Development rather than growth
 Should have improved its quality for health issues
 Should have invested in social welfare
 Should have decreased its prices in developing or poor countries
 Should have cancelled the permissions to the franchises who were not working
well and still not today.
McDonalds Success in Europe. Strategies it followed.
Difference from strategies followed in Asia.
It is true that European market has a huge
scope of fast food because there was no any
branded fast food chain available in Europe.
European people have different food behavior
and think that they can easily follow such
change. McDonald’s prepared foods accordance
with the local laws. It have different price rate of
materials according to their people behaviors as
well as there make different menu according to
the dining habits.
For example- The prices vary
considerably around the world
ranging from $5.20 in
Switzerland to $1.05 in China
for the Big Mac that costs in the
United States $2.32. The
Economist magazine even
devised a Big Mac Index to
estimate whether a currency is
over or undervalued. Thus, the
$1.05 Chinese Mac translates
into an Implied Purchasing
Power Parity of $3.88.
McDonald’s introduced the Japanese to French fries, potatoes were
used in Japan only to make starch. I think McDonald’s has
succeeded because McDonald’s have a great strategy to come in
European market. It took the company 14 years of planning before it
opened a restaurant in Moscow in 1990. But the planning paid off.
After the opening, people were standing in a very huge amount. It
has been said that
McDonald’s restaurant in Moscow attracts more visitors on an
average 27,000 daily than Lenin’s mausoleum (about 9,000 people).
The Beijing opening in 1992 attracted some 40,000 people to the
largest (28,000 square -foot) restaurant at a location where some
8,00,000 pedestrians pass by every day.
McDonald’s have following strategies given below-
 Be first in the market
 Well planned for 14 years time period
 Worked according to local laws
 Different pricing behavior
 Different menu according to the dining habits.
 McDonald’s was one of the first restaurants in Europe to welcome
families with children.

European strategy is different with respect to Asian strategy

by following reasons-
 In case of Europe they take larger time as compare to Asian strategy.
 They don’t know the customer behavior of Asian countries but they well
familiar about the European customer behavior.
 Generally European are prepare to adopt the new things as compare to the
Asian. So they may have some extra afford specially in Asia.
 In Europe the McDonald’s ensures consistent products by controlling every
stage of the distribution where as the case is opposite in Asia
MacDonald’s basic philosophy.
Enforcement of its philosophy in
different environments
Mac Donald’s have many philosophies to reach the
Peak of success.
Our basic philosophy at McDonald's is to develop a
collaborative approach with our suppliers. we are committed
to sharing best practice with all our suppliers who benefit
from this commitment because it helps improve quality and
increase value.
David Thomas, senior Agricultural
assurance manager , McDonald's
This philosophy of McDonald's is so important because
if the relationship with the suppliers
is not good then they can't provide food to customer in time.
we can say that the supplier of raw material is the heart of
any business
and McDonald's basic philosophy includes good relation
with the suppliers. McDonald's has to apply this philosophy
in any environment without any discrimination for better
performance and provide fresh food to customer.
Other than that,

McDonald’s have a very great strategy and philosophy. The

main philosophy of its success is to cover mainly four
golden arches- quality, service, cleanliness and values........

Quality- McDonald’s concentrated on quality of

product. Better the quality better will be the selling, and
ultimately increase the profit.
Service- The main power of McDonald’s is provide
better service to the customer. They make good service for
customer and keep in mind to become the best service
provider.
Cleanliness- McDonald’s sell product in an
healthy environment so that they give force on cleanliness.
Values- The value of the customer is important and well known by each and every
worker as well as to the managements. Its products, handling and cooking procedures and
kitchen layouts are standardized and strictly controlled. McDonald’s revoked the first French
franchises because the franchise failed to meet its standards for fast service and cleanliness,
even though their restaurants were highly profitable. This may have delayed its expansion in
France.
These basic four strategies make to provide an image regarding the freshness of food
material. Quality of product is the most important strategy to make a good image in front of
the customers. Service, cleanliness and values of the customers is awesome in the greater
extend. These provide a good image of company as well as customer satisfactions.
Should McDonald’s expand its menu? If you say no,
then why not? If you say yes, what kinds of products
should it add?
MACDONALDS:
 A famous restaurant serving fast food since 1955
 Main objective is to maintain the quality food standard and better service
 It has been doing a good job since 1955

Macdonald's shouldn’t expand menu because:

 It is already doing good job
 It provides food according to customers needs
 Menu is according to the cultures of customers
 It satisfies the demand of the customers
 Crew is properly trained
 It includes new products every year
 Expansion of menu is costly
MAC DONALDS TRIES TO CHANGE MENU ACCORDING TO
CULTURES:
 In Norway it served grilled salmon sandwich.
 In Philippines now, it is serving pasta in a sauce with frankfurter bits.
 In German restaurants it started serving beer with fast food.
 In French restaurants, it serves wine.
 In Canada it starts serving cheese vegetables pepperoni with deluxe pizza.
 It has opened Mac Café for coffee lovers.

Mac Donald's provides quality food so customers are satisfied. It shouldn’t expand its menu
but
Maintain the quality of existing products.
MacDonald’s Success in many countries of the world.

QSC & V:
McDonald’s stays in close contact with its customers, who want good taste
fast and friendly service, clean surroundings, and quality. To attain quality,
McDonald’s quality assurance centres are located in the United States,
Europe and Asia.
Location:
McDonald’s opened its outlet in most attracting places where the
pedestrians pass out more frequently.
Family entertainment:
To attract the families and children McDonald’s
provide the facilities of play land for the kids, and
entertained them with crayons and paper and of
course with clown Ronald McDonalds.

Law:
McDonalds adopt and follow the laws of
respective country where it opened its outlets and
prepared food according to that country’s Law.

Advertisement:
McDonalds uses competitive strategy in almost
every country; be the first in a market and established
its brand as rapidly as possible by advertising very
heavily. McDonald’s advertise their product heavily
to attract more and more customers. Advertising
campaign is based on local themes and reflects the
different environments.
 Standardization:
McDonalds products, handling and cooking
procedures and kitchen layouts are standardized and
strictly.

 Innovation:
McDonalds restaurant are allowed to experience
their own menus. McDonalds adopted the changes with
its surrounding the best examples for this is Mac Café
which it introduces when Starbucks and coffee shops
were popular in Europe.

 Regional distribution centers:

McDonalds ensures consistent products by
controlling every stage of the distribution. Regional
distribution centers purchase products and distribute
them to individual restaurants.
THANK YOU!!!!