Case Presentation On Mc Donald’s

Group No: 01

Presented by:
Amit Jana, Sayan Banerjee, Utpal
Paul, Soumita Maity, Rishikesh
Kumar, Durbadal Sen
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About the Company
• Company name: Mc Donald’s

• Founder: Richard James McDonald and Maurice

James McDonald

• Founded in: 1940

• Headquarters: Chicago

• Mc Donald’s first came in Indian Market in: 1996

2
 Case Summary
McDonald's India announced in December 2018 that it has
made its first profit in 22 years of existence.
This dispute is being caused by a protracted legal battle
involving the major franchisees, Connaught Plaza Restaurants
(CPRL). On August 21, 2017, McDonald's announced that it
had terminated its franchise agreement with CPRL for 169
locations spread out over northern and eastern India. Vikram
Bakshi, the MD of CPRL, denied the accusations and brought a
lawsuit before the Delhi High Court, pledging to carry on with
his operations until the court's ruling or a mutual arrangement
between McDonald and CPRL to buy out the stake in CPRL.
Their losses from this litigation were $3.05 billion.

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 SCPS Analysis

• S: Sector: Fast food restaurants (Real Estate)

• C: Company: McDonald’s

• P: Product: Fast Food Items

• S: Service: QSR (Quick Service Restaurants)

4
 Data Interpretation (Market Layout)
Year
Category
2016 2017 2018 2020
Market Size ( In Billion
Indian Rs.) 91 105 130 188
Revenue ( In Billion Indian
Rs.) 14.8 15.29 18.17 15.48
Operating Unit 400 430 342 319

Rev enue ( In Billio n India n Rs.) Operating Unit

17 425
13 375
9 325
5 275
225
1
revenue

unit
Year 2016 Year 2017 Year 2018 Year 2020 175
125
Revenue ( In Billion 14.8 15.29 18.17 15.48
Indian Rs.) 75
25
Year 2016 Year 2017 Year 2018 Year 2020
Operating 400 430 342 319
Unit
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 Problems

Managerial Confliction Bad Food Quality & Hygiene Financial Irregularities

Confliction between internal Food quality is not up to the mark Miscommunication resulted failed to
management in CPRL & Company and safety measurement does not pay royalty money
and due to confliction bad relation follow
between franchise and company

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 Challenges

Expansion Competition Image Re-build

Adaption of rapid Other competitor are Overcoming the
changes in market growing very fast by brand image and
trends providing value capture more
added needs at a less customer
price

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Localization
• Company should give first
preferences on local taste
as per customer need.
• Company should maintain
a profit with a less cost
and right pricing.
Learnings
Franchise Management
• Maintaining a good relation between
Company and Franchise.
• Maintaining safety and hygiene
• Rules and regulations should be
followed.
Market Expansion
• Improve the SRM
• Good planning & forecasting to meet
the demand and production by
reducing wastage.
• Fast adoption of market trends.

• Delivery system should • Internal audit and risk management. • Capturing every segmentation of the
be maintain. market.

• Menu should have a list

number because of
diversification of choices.

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